Slide 1: First Quarter 2024 Earnings Presentation
FIRST QUARTER 2024 EARNINGS PRESENTATION May 01, 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 1
Slide 2: Forward-Looking Statements
FORWARD-LOOKING STATEMENTS This release contains certain forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those projected in the forward-looking statements. Examples of such forward-looking statements include but are not limite
Slide 3: Q1 2024 Key Messages
Q1 2024 KEY MESSAGES Sales tracked to expectations for the quarter, reflecting seasonal Sales Met Projections: Q1’24 KEY FINANCIALS* norms and continued general industrial softness Market Dynamics: Strategic approach kept business competitive, despite ongoing $83.1M market headwinds in certain secto
Slide 4: Comprehensive Strategic Review Update
COMPREHENSIVE STRATEGIC REVIEW UPDATE A C C E L E R AT E D A N D E X PA N D E D A N N U A L S T R AT E G I C R E V I E W SALE OF GRAPHIC ARTS BUSINESS 1 • Retained Advisor: XMS Capital Partners • Sale Process: Well underway with significant engagement from potential buyers Comprehensive, • Timing: E
Slide 5: Performance Improvement Activities
PERFORMANCE IMPROVEMENT ACTIVITIES THE LUXFER BUSINESS SYSTEM • Manufacturing Efficiencies: Elektron profitability enhanced by strategic manufacturing footprint simplification. • Market Leadership: Recovery in Flameless Ration Heater sales, following 2024 awards from the Defense Logistics Agency, co
Slide 6: Q1'24 Financial Results & Bridges
Q1’24 FINANCIAL RESULTS & BRIDGES (amounts in millions, except EPS) Gross Gross Adj. Adj. EBITDA Adj. Free Cash Net Sales Profit Margin EBITDA Margin EPS Flow Debt Q1’ 2024 $83.1 $18.5 22.3% $10.5 12.6% $0.20 $2.2 $71.6 vs. Q1’ 2023 -11.5% -11.5% flat -12.5% -20bps -16.7% +$18.6 -$18.0 SALES ($M) Ad
Slide 7: Elektron Q1 '24 Financial Results
ELEKTRON Q1 ’24 FINANCIAL RESULTS (amounts in millions) Q1 Chg. vs. Chg. vs. Q1’24 SALES Chg. Chg. 2024 Q1‘23 Q4‘23 BY SEGMENT ($M) vs vs Q1’23 Q4’23 Sales $37.7 -28.1% 4.4% Defense, First Response, -$10.2 -$1.6 Gross Margin 28.6% -140bps 840bps Healthcare $14.0 $13.9 Adj. EBITDA $6.4 -32.6% 300.0%
Slide 8: Gas Cylinders Q1 '24 Financial Results
GAS CYLINDERS Q1 '24 FINANCIAL RESULTS (amounts in millions) Q1 Chg. vs. Chg. vs. Q1’24 SALES Chg. Chg. 2024 Q1 '23 Q4 '23 vs vs BY SEGMENT ($M) Q1’23 Q4‘23 Sales $45.4 9.4% -12.2% Defense, $5.7 First Response, +$2.5 -$3.9 Gross Margin 17.0% 450bps -120bps Healthcare $20.6 Adj. EBITDA $4.1 64.0% -36
Slide 9: FY 2024 Outlook
FY 2024 OUTLOOK FULL YEAR* Prior Current ASSUMPTIONS OVERVIEW: Sales Growth (incl. volume, price, and FX) -3% to +1% Down (LSD) • Industrial Sector Outlook: Persistent challenges in Adjusted EBITDA $42M - $46M $44M - $48M industrial markets but improving in H2. • Earnings Rebound: Elektron sequentia
Slide 10: Enhancing Business Performance
ENHANCING BUSINESS PERFORMANCE G R O W I N G C O N F I D E N C E A N D R E S I L A N C E W I T H C L E A R PAT H T O V A L U E C R E AT I O N Strategic Market Operational Insurance Financial Health Commercial Demand Consolidations: Legal Fees Enhancement: Developments: Recovery: Resolution: "Streaml
Slide 11: Q&A
Q&A FIRST QUARTER 2024 EARNINGS PRESENTATION CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 11
Slide 12: Appendices
APPENDICES Segment Financial Detail and Reconciliation of Non-GAAP Measures CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 12
Slide 13: Q1 2024: Gas Cylinders Segment Results
Q1 2024: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) +9.4% +64.0% $0.2 $1.3 $2.4 $0.5 $4.7 $0.5 $45.4 $41.5 $4.7 $2.5 $4.1 Q1 2023 FX Price Volume/Mix Q1 2024 Q1 2023 Price Inflation Volume/Mix Other Q1 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMEN
Slide 14: Q1 2024: Elektron Segment Results
Q1 2024: ELEKTRON SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) -28.1% -32.6% $0.6 $0.1 $3.1 $9.5 $3.1 $1.8 $52.4 $6.4 $11.7 $37.7 $5.5 $4.3 Q1 2023 FX Price Volume/Mix Q1 2024 Q1 2023 FX Price Net Deflation Volume/Mix Other Q1 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL D
Slide 15: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 15
Slide 16: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS March 31, December 31, In millions, except share and per share data 2024 2023 Current assets Cash and cash equivalents $ 6.8 $ 2.3 Restricted cash 0.3 0.3 Accounts and other receivables, net of allowances of $1.4 and $0.7, respectively 59.9 59.9 Inventories 88.9
Slide 17: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS First Quarter In millions 2024 2023 Operating activities Net income $ 2.7 $ 0.5 Net (loss) / income from discontinued operations (0.1) — Net income from continuing operations $ 2.8 $ 0.5 Adjustments to reconcile net income to net cash used by operating
Slide 18: Reconciliation: Adjusted Net Income and Adjusted EPS
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE First Quarter In millions except per share data 2024 2023 Continuing Graphic Adjusted Continuing Graphic Adjusted operations Arts Total operations Arts Total Net income / (loss) $ 2.8 $ (1.6) $ 4.4 $ 0
Slide 19: Reconciliation: Adjusted EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EBITDA First Quarter In millions except per share data 2024 2023 Continuing Graphic Adjusted Continuing Graphic Adjusted operations Arts Total operations Arts Total Adjusted net income from continuing operations $ 4.0 $ (1.3) $ 5.3 $ 5.4 $ (1.0
Slide 20: Reconciliation: Net Sales and Adjusted EBITDA by Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET SALES AND ADJUSTED EBITDA BY SEGMENT Adjusted Net sales EBITDA First Quarter First Quarter In millions 2024 2023 2024 2023 Gas Cylinders segment $ 45.4 $ 41.5 $ 4.1 $ 2.5 Elektron segment 37.7 52.4 6.4 9.5 Excluding Graphic Arts segment 83.1 93.9 10
Slide 21: Reconciliation: Adjusted Effective Tax Rate
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EFFECTIVE TAX RATE First Quarter In millions except per share data 2024 2023 Continuing Graphic Adjusted Continuing Graphic Adjusted operations Arts Total operations Arts Total Adjusted net income from continuing operations $ 4.0 $ (1.3) $ 5.3
Slide 22: Reconciliation: Net Debt Ratio and Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET DEBT RATIO AND FREE CASH FLOW NET DEBT RATIO (UNAUDITED) First Quarter In millions 2024 Cash and cash equivalents $ 6.8 Total debt (78.4) Net debt 71.6 Adjusted EBITDA 36.3 Net debt to EBITDA ratio 2.0 Adjusted EBITDA excluding Graphic Arts segment
Slide 23: Reconciliation: Operating Working Capital as % of Annualized Net Sales
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: OPERATING WORKING CAPITAL AS A % ANNUALIZED NET SALES (UNAUDITED) First Quarter 2024 In millions Continuing Operations Accounts and other receivables, net of allowances 59.9 Inventories 88.9 Accounts payable (30.9) Accrued liabilities (22.8) Operating W
Slide 24: CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 24