Atkore Inc. · NYSE:ATKR
Atkore — Investor Presentation (February 2021)
24 slides from Atkore's investor presentation, February 2021
Slide 1: Investor Presentation & Company Overview
Investor Presentation & Company Overview February 2021 © Atkore Inc.
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: Atkore: a Compelling Investment
Atkore: a Compelling Investment Values-based organization driven by the Atkore Business Disciplined Operational Focus System Strong track record of earnings growth, increasing free cash Track Record of Success flow and excellent return on capital Leading market share in key product categories with a
Slide 4: Our Foundation is the Atkore Business System
Our Foundation is the Atkore Business System © Atkore Inc. 4
Slide 5: Atkore at a Glance
Atkore at a Glance A leading manufacturer of electrical, mechanical, and safety infrastructure solutions 1959 2016 Harvey, IL ~3,700 65 Founded IPO (NYSE: ATKR) Headquarters Employees2 Global Facilities2 FY 2020 Financial Highlights FY 2020 Net Sales Breakdown, $1.8B $ Millions Change (except per sh
Slide 6: Record Quarterly Earnings in Q1 2021
Record Quarterly Earnings in Q1 2021 Revenue, $M Net Income, $M Adjusted EBITDA1, $M Adjusted EPS1, $/share +14% +145% +76% +100% 511.1 85.1 137.0 1.88 447.4 77.7 0.94 34.8 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 2020 Q1 2021 Q1 Review • Outstanding results in Q1 supported by leading posi
Slide 7: Our Products Are All Around You Everyday
Our Products Are All Around You Everyday Wire Basket Cable Armored Cable Tray & Fittings Flexible Electrical Conduit Electrical & Liquidtight Conduit Prefabrication Cable Tray, Industrial Flexible Ladder & Fittings Electrical Conduit Metal Electrical Metal Framing & Fittings Conduit (Including Seism
Slide 8: Outstanding Track Record of Growth
Outstanding Track Record of Growth Adjusted EBITDA1, $M Free Cash Flow1, $M Return on Capital1 (ROC), % +15% CAGR +13% CAGR +1,510 bps 324 327 215 17.8 17.0 15.4 272 175 235 228 12.2 140 10.7 114 164 107 97 2.7 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY201
Slide 9: Electrical Segment
Electrical Segment: Quick Facts: FY 2020 Q1 2021 Key Brands: Net Sales, $M $1,270.5 $387.1 Adjusted EBITDA, $M $292.8 $133.3 Adjusted EBITDA Margin, % 23.0% 34.4% KEY PRODUCT CATEGORIES AND MARKET POSITION Manufacture high quality products used Stainless PVC Conduit #1 Steel Conduit #1 in the constr
Slide 10: Safety & Infrastructure Segment
Safety & Infrastructure Segment: Quick Facts: FY 2020 Q1 2021 Key Brands: Net Sales, $M $497.5 $124.8 Adjusted EBITDA, $M $67.8 $14.3 Adjusted EBITDA Margin, % 13.6% 11.4% KEY PRODUCT CATEGORIES AND MARKET POSITION In-line Design and manufacture solutions for the Galvanized Mechanical #1 Barbed Tape
Slide 11: Levers to Drive Organic Growth
Levers to Drive Organic Growth Recent Example & Highlights Organic Growth Drivers Broad range of innovative and new products introduced in the past few years Continue to drive growth from “Focused Product Global Categories” Category Expansion Digital Expanding global distribution and product capabil
Slide 12: M&A Strategy Focused on Profitable Growth
M&A Strategy Focused on Profitable Growth Bolt-On Acquisition Playbook Quick Facts: Target Profile Strategy Value Creation Spent over $290 million of cash on ▪ Privately held small to ▪ Strategic fit from a product ▪ Leverage global spend for medium sized businesses or category perspective, or key r
Slide 13: Strong Financial Profile Ready for the Future
Strong Financial Profile Ready for the Future Net Debt to TTM Adjusted EBITDA Debt Structure 2.9x 2.8x Debt Structure, $M As of 2.6x 12/25/20 2.2x 2.1x 2.1x Cash and Cash Equivalents $280.4 1.9x 1.6x Senior Secured 1st Term Loan Matures 2023 $764.4 1.3x Total Debt $764.4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 T
Slide 14: Focused on Environment, Social & Governance
Focused on Environment, Social & Governance We seek to utilize sustainable business principles and processes that achieve a balance between profitability and protection of all stakeholders, while reducing our impact on the environment and climate. Our Focus 43% 13% People and Community: We seek to p
Slide 15: Atkore: a Compelling Investment
Atkore: a Compelling Investment Values-based organization driven by the Atkore Business Disciplined Operational Focus System Strong track record of earnings growth, increasing free cash Track Record of Success flow and excellent return on capital Leading market share in key product categories with a
Slide 16: Appendix
APPENDIX © Atkore Inc. 16
Slide 17: Segment Information
Segment Information Three months ended December 25, 2020 December 27, 2019 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical $ 387,145 $ 133,273 34.4 % $ 324,547 $ 68,119 21.0 % Safety & Infrastructure 124,765 14,252 11.4 % 12
Slide 18: Adjusted Earnings Per Share Reconciliation
Adjusted Earnings Per Share Reconciliation Consolidated Atkore International Group Inc. Three months ended Fiscal Year Ended December 25, December 27, September September (in thousands, except per share data) 2020 2019 30, 2020 30, 2019 Net income $ 85,066 $ 34,790 $ 152,302 $ 139,051 Stock-based co
Slide 19: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. Three months ended Fiscal Year Ended December 25, December 27, September 30, September 30, (in thousands) 2020 2019 2020 2019 Net income $ 85,066 $ 34,790 $ 152,302 $ 139,051 Income tax expense 26,964 7,340 49,
Slide 20: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore International Group Inc. TTM Three months ended December December September June 26, March 27, (in thousands) 25, 2020 25, 2020 30, 2020 2020 2020 Net income $ 202,578 $ 85,066 $ 54,241 $ 24,078 $ 39,193 Interest expense, net 37,696 8,254 9,4
Slide 21: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. December September June 26, March 27, December September June 28, March 29, December ($ in thousands) 25, 2020 30, 2020 2020 2020 27, 2019 28, 2019 2019 2019 28, 2018 Short-term debt and current maturities of long
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore International Group Inc. Fiscal Year Ended September September September September September September (in thousands) 30, 2020 30, 2019 30, 2018 30, 2017 30, 2016 30, 2015 Net cash provided by operating activities $ 248,762 $ 209,694 $ 145,703 $ 121,
Slide 23: Return on Capital Calculation
Return on Capital Calculation Consolidated Atkore International Group Inc. Fiscal Year Ended September 30, September 30, September 30, September 30, September 30, September 30, (in thousands) 2020 2019 2018 2017 2016 2015 Income (Loss) Before Taxes $ 201,998 $ 184,669 $ 166,352 $ 126,125 $ 86,781 $
Slide 24: Thank You!
Thank You! atkore.com 16100 South Lathrop Avenue, Harvey, IL 60426 © Atkore Inc. 24