Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Q2 2017 Earnings Presentation
15 slides from Atkore's earnings presentation, May 9, 2017
Slide 1: Second Quarter 2017 Earnings Presentation
Second Quarter 2017 Earnings Presentation May 9, 2017
Slide 2: Cautionary statements
Cautionary statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forwa
Slide 3: Key Takeaways
Key Takeaways • Despite choppiness in our markets and solar headwinds, we were able to deliver EBITDA for the quarter at the high-end of our guidance • Non-Residential construction market sentiment and leading indicators in our business are positive, but momentum is building slower than anticipated
Slide 4: Financial Highlights – Q2 2017
Financial Highlights – Q2 2017 Strong Productivity and Pricing Initiatives Continue Q2 Q2 Y/Y ($’s in millions) 2017 2016 Change • Standard work enables pass Net Sales $372.8 $353.0 5.6% through of increased material costs Net Income $18.9 $14.0 35.2% • Construction demand choppy but Adjusted EBITDA
Slide 5: Electrical Raceway Segment – Q2 Highlights
Electrical Raceway Segment – Q2 Highlights Positive Non-Residential Construction Sentiment Q2 Q2 Y/Y Continues ($’s in millions) 2017 2016 Change Net Sales $251.1 $231.3 8.6% • Average selling prices up 10% from pass through of material costs and Adjusted EBITDA $44.9 $42.2 6.4% favorable impact fro
Slide 6: Mechanical Products & Solutions Segment Highlights
Mechanical Products & Solutions Segment Highlights Solar Headwinds Moderating; Momentum Building in Value Q2 Q2 Y/Y Added Applications ($’s in millions) 2017 2016 Change • Price up 7% due to pass through of Net Sales $122.0 $122.2 (0.2%) material cost increases and initiatives Adjusted EBITDA $17.3
Slide 7: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Leverage Ratio (1) ($mm) 3/31/2017 Cash and cash equivalents $77.9 5.2x Total Debt $492.7 3.5x CapEx $8.4 Net cash from operating activities $25.1 1.8x 1.8x TTM Adjusted EBITDA(1) $234.6 Leverage Ratio (1) FY 2014 FY 2015 FY 2016 TTM 3/31/17 Total debt
Slide 8: 2017 Financial Outlook Summary
2017 Financial Outlook Summary Prior Outlook Updated Outlook Electrical Raceway Volume 1 to 5% (2) to 2% Segment Adjusted EBITDA* $182 - $192mm $182 - $190mm Volume (2) to 2% (4) to 0% Mechanical Products & Solutions Segment Adjusted EBITDA* $83 - $88mm $80 - $85mm Adjusted EBITDA* $235 - $250mm $23
Slide 9: Key Takeaways
Key Takeaways • Despite choppiness in our markets and solar headwinds, we were able to deliver EBITDA for the quarter at the high-end of our guidance • Non-Residential construction market sentiment and leading indicators in our business are positive, but momentum is building slower than anticipated
Slide 10: Appendix
—_— oa Aatkore Appendix INTERNATIONAL
Slide 11: Segment Information
Segment Information Three Months Ended March 31, 2017 March 25, 2016 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 251,108 $ 44,866 17.9 % $ 231,293 $ 42,186 18.2 % Mechanical Products & Solutions 122,027 $ 17,26
Slide 12: Adjusted earnings per share reconciliation
Adjusted earnings per share reconciliation Consolidated Atkore International Group Inc. Three Months Ended Six months ended (in thousands, except per share data) March 31, 2017 March 25, 2016 March 31, 2017 March 25, 2016 Net income $ 18,935 $ 14,007 $ 36,317 $ 22,579 Stock-based compensation 3,584
Slide 13: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. Three Months Ended Six months ended (in thousands) March 31, 2017 March 25, 2016 March 31, 2017 March 25, 2016 Net income $ 18,935 $ 14,007 $ 36,317 $ 22,579 Interest expense, net 5,231 10,567 15,061 20,448 Inc
Slide 14: Net debt / Adjusted EBITDA reconciliation
Net debt / Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. September 30, September 25, September 26, ($ in thousands) March 31, 2017 2016 2015 2014 Short-term debt and current maturities of long-term debt $ 4,220 $ 1,267 $ 2,864 $ 42,887 Long-term debt 488,467 629,046 649
Slide 15: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. TTM Three Months Ended March 31, March 31, December 30, September 30, (in thousands) 2017 2017 2016 2016 June 24, 2016 Net income $ 72,534 $ 18,935 $ 17,382 $ 15,572 $ 20,645 Interest expense, net 36,411 5,231
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