Luxfer Holdings Plc · NYSE:LXFR
Luxfer — Q1 2024 Earnings Presentation
28 slides from Luxfer's earnings presentation, May 2024
Slide 1: Investor Presentation May 2024
INVESTOR PRESENTATION May 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: We are Luxfer
We are Luxfer We help to create a safe, clean and energy efficient world CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 3
Slide 4: Luxfer Overview (NYSE: LXFR)
LUXFER OVERVIEW (NYSE: LXFR) Company Description Full Year 2023 Sales Breakdown (excluding Graphic Arts) Luxfer is a global industrial company innovating niche applications in materials engineering. Luxfer’s high-performance materials, components and by End Market by Geography high-pressure gas cont
Slide 5: Manufacturing Excellence Footprint
MANUFACTURING EXCELLENCE FOOTPRINT Elektron • Manchester, UK Gas Cylinders • Flemington, NJ • Saxonburg, PA • Riverside, CA • Tamaqua, PA • Calgary, Canada • Cincinnati, OH • Pomona, CA • Nottingham, UK • Shanghai, China *Excludes held for sale operations Ten major manufacturing locations around the
Slide 6: Materials Technology Leadership
MATERIALS TECHNOLOGY LEADERSHIP Innovation leader in the use MAGNESIUM ALLOYS ZIRCONIUM CATALYSTS High of magnesium alloys for critical Performance applications in aerospace, defense, and Magnesium other industries as well as in flameless Elektron Alloys heating applications Segment Expertise in hig
Slide 7: Aligned with Secular Growth Trends
ALIGNED WITH SECULAR GROWTH TRENDS Composite cylinders and systems Zirconium-based emissions control for Alternative Fuel, including and industrial catalysis materials Clean Energy Hydrogen and Compressed Natural Gas Lightweight carbon fiber cylinders Magnesium alloys for aerospace for breathing equ
Slide 8: 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 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 sequent
Slide 10: First Quarter 2024 – Earnings Recap
First Quarter 2024 – Earnings Recap SELECTED SLIDES CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 10
Slide 11: Q1'24 Financial Results & Bridges
Q1’24 FINANCIAL RESULTS & BRIDGES (amounts in millions, except EPS) Gross Profit Gross Margin Adj. Adj. EBITDA Adj. Free Cash Net Debt Sales EBITDA Margin EPS Flow 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 -$18.0 vs. Q4 2023 -5.
Slide 12: Performance Improvement Activities
PERFORMANCE IMPROVEMENT ACTIVITIES THE LUXFER BUSINESS SYSTEM • Manufacturing Efficiencies: Elektron profitability enhanced by strategic manufacturing footprint simplification. • Market Leadership: Recovery in Flameless Ration Heater sales, following 2024 awards from the Defense Logistics Agency, co
Slide 13: Elektron Q1 '24 Financial Results
ELEKTRON Q1 ’24 FINANCIAL RESULTS (amounts in millions) Q1 Chg. vs. Chg. vs. Q1’24 SALES Chg. Chg. 2024 Q1‘23 Q4‘23 BY SEGMENT ($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 $6.4 -32.6% 300.0%
Slide 14: Gas Cylinders Q1 '24 Financial Results
GAS CYLINDERS Q1 '24 FINANCIAL RESULTS (amounts in millions) Q1 Chg. vs. Chg. vs. Q1’24 SALES Chg. Chg. 2024 Q1 '23 Q4 '23 vs vs BY SEGMENT ($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 $4.1 64.0% -36
Slide 15: Comprehensive Strategic Review Update
COMPREHENSIVE STRATEGIC REVIEW UPDATE A C C E L E R AT E D A N D E X PA N D E D A N N U A L S T R AT E G I C R E V I E W SALE OF GRAPHIC ARTS BUSINESS 1 • Retained Advisor: XMS Capital Partners • Sale Process: Well underway with significant engagement from potential buyers Comprehensive, • Timing: E
Slide 16: Appendices
APPENDICES Segment Financial Detail and Reconciliation of Non-GAAP Measures CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 16
Slide 17: Q1 2024: Gas Cylinders Segment Results
Q1 2024: GAS CYLINDERS SEGMENT RESULTS Sales ($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 $4.1 Q1 2023 FX Price Volume/Mix Q1 2024 Q1 2023 Price Inflation Volume/Mix Other Q1 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMEN
Slide 18: Q1 2024: Elektron Segment Results
Q1 2024: ELEKTRON SEGMENT RESULTS Sales ($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 19: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 19
Slide 20: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 20
Slide 21: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 21
Slide 22: Reconciliation: Adjusted Net Income and Adjusted EPS
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED NET INCOME AND ADJUSTED EARNINGS PER SHARE CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 22
Slide 23: Reconciliation: Adjusted EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EBITDA CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 23
Slide 24: Reconciliation: Net Sales and Adjusted EBITDA by Segment
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET SALES AND ADJUSTED EBITDA BY SEGMENT CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 24
Slide 25: Reconciliation: Adjusted Effective Tax Rate
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EFFECTIVE TAX RATE CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 25
Slide 26: Reconciliation: Net Debt Ratio and Free Cash Flow
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: NET DEBT RATIO AND FREE CASH FLOW CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 26
Slide 27: 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 28: CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 28