Slide 1: Q2 2022 Earnings Release
Q2 2022 EARNINGS RELEASE Conference Call | August 3, 2022 Q2 2022 Earnings Release |
Slide 2: Forward-Looking Statements and Non-GAAP Financial Measures
Forward-Looking Statements and Non-GAAP Financial Measures Forward-Looking Statements Our commentary and responses to your questions may contain forward-looking statements, including our outlook for the third quarter and full- year 2022. Forward-looking statements include projections of sales, earni
Slide 3: Executive Summary
Executive Summary Hosted Investor Day on June 15th 1 • Provided an update on the Company’s transformation and growth strategy • Issued new long-term financial goal, EPS of $8.00+ by 2025 Delivered another strong quarter 2 • Exceeded expectations for revenue and EPS • Continued solid demand and execu
Slide 4: Q2 2022 Financial Highlights
Q2Financial Goals 2022 Highlights Revenue increased 16% EBITDA increased 19% Net leverage decreased year over year year over year to $111M to 1.4x to $667M EBITDA margin of 16.6%, Executed $50M in Organic growth of compared to 16.1% in the share repurchases 18% year over year year ago period through
Slide 5: Q2 2022 Financial Summary
Q2 2022 Financial Summary Q2 2022 Q1 2022 Q2 2021 Revenue $666.6M $610.4M $576.7M Gross profit $229.0M $211.2M $194.8M Gross profit percentage 34.4% 34.6% 33.8% EBITDA $111.0M $99.5M $92.9M EBITDA percentage 16.6% 16.3% 16.1% Net Income(1) $71.5M $59.5M $55.1M Earnings Per Share(2) $1.60 $1.31 $1.22
Slide 6: Q2 2022 Segment Results
Q2 2022 Segment Results Industrial Enterprise Automation Consolidated Solutions Solutions Q2 2022 Revenue $359.1M $307.4M $666.6M EBITDA(1) $68.1M $41.9M $111.0M EBITDA Margin 19.0% 13.6% 16.6% Q1 2022 Revenue $341.9M $268.4M $610.4M EBITDA(1) $67.5M $30.8M $99.5M EBITDA Margin 19.7% 11.5% 16.3% Q2
Slide 7: Q2 2022 Balance Sheet Highlights
Q2 2022 Balance Sheet Highlights Q2 2022 Q1 2022 Q2 2021 Cash and Cash Equivalents $528M $560M $421M Days Sales Outstanding 59 57 58 Inventory Turns 4.5x 4.1x 5.0x Total Debt Principal Amount $1.15B $1.23B $1.54B Net Leverage(1) 1.4x 1.6x 3.5x (1) Net leverage is calculated as (A) total debt less ca
Slide 8: Q2 2022 Cash Flow Highlights
Q2 2022 Cash Flow Highlights Q2 2022 Q2 2021 Cash flows from operating activities $49.4M $68.1M Less: Net capital expenditures $18.7M $16.4M Free cash flow(1) $30.7M $51.7M (1) Free cash flow is not a term defined by generally accepted accounting principles (GAAP) and our definition may or may not b
Slide 9: Outlook
Outlook Q3 2022 • Revenue of $625 - $640 million • Earnings Per Share(1) of $1.50 - $1.60 Full Year 2022 • Revenue of $2.520 - $2.550 billion • Earnings Per Share(1) of $5.90 - $6.10 • Organic growth of 12% - 13% Full Year 2022 Assumptions • Interest expense of $48 million • Tax rate of 19.6% • Shar
Slide 10: Value Creation Framework
VALUE CREATION FRAMEWORK ORGANIC REVENUE INCREMENTAL GROWTH EBITDA MARGINS GDP+ ~30% DISCIPLINED CAPITAL ALLOCATION $8.00+ ROBUST FREE CASH FLOW GENERATION EPS by 2025 ~1.5x ~$1.0B net leverage allows for cumulative over next 4 years substantial capital deployment (2022 – 2025) over next 4 years Q2
Slide 11: Our customers are building the future. We build the network that makes it possible.
Our customers are building the future. We build the network that makes it possible. Let’s Build The Future. Q2 2022 Earnings Release | 11
Slide 12: Questions?
QUESTIONS? Q2 2022 Earnings Release |
Slide 13: Appendix
APPENDIX Q2 2022 Earnings Release |
Slide 14: Statement of Operations
Statement of Operations Q2 2022 Earnings Release | 14
Slide 15: Operating Segment Information
Operating Segment Information Q2 2022 Earnings Release | 15
Slide 16: Operating Segment Reconciliation to Consolidated Results
Operating Segment Reconciliation to Consolidated Results Q2 2022 Earnings Release | 16
Slide 17: Balance Sheet
Balance Sheet Q2 2022 Earnings Release | 17
Slide 18: Cash Flow Statement
Cash Flow Statement Q2 2022 Earnings Release | 18
Slide 19: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expense due to pla
Slide 20: Reconciliation of Non-GAAP Measures (continued)
Reconciliation of Non-GAAP Measures (continued) In addition to reporting financial results in accordance with accounting principles generally accepted in the United States, we provide non-GAAP operating results adjusted for certain items, including: asset impairments; accelerated depreciation expens
Slide 21: Free Cash Flow GAAP to Non-GAAP Reconciliation
Free Cash Flow GAAP to Non-GAAP Reconciliation We define free cash flow, which is a non-GAAP financial measure, as net cash from operating activities adjusted for capital expenditures net of the proceeds from the disposal of tangible assets. We believe free cash flow provides useful information to i
Slide 22: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Our guidance is based upon information currently available regarding events and conditions that will impact our future operating results. In particular, our results are subject to the factors listed under "Forward-Looking Statements" in this release. In addition,