Slide 1: Fourth Quarter and Full Year Fiscal 2016 Earnings Presentation
Fourth Quarter and Full Year Fiscal 2016 Earnings Presentation November 29, 2016
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 at a Glance
Atkore at a Glance Leading market positions, superior customer value propositions, and a compelling branded portfolio A strong platform for growth across attractive end-markets and through innovative products and M&A A foundational business system and team built to outperform the market 2
Slide 4: Key Takeaways
Key Takeaways • Our strategy is working and we are improving shareholder value by expanding margins, delivering cash flow, and driving growth • We are growing Adjusted EBITDA dollars and margins despite significant input volatility and tepid market growth • Our product availability, quality, and del
Slide 5: 2016 Financial Highlights
2016 Financial Highlights Year ended September 30 Strong Adjusted EBITDA dollar and margin growth with volatile inputs 2016 2015 Y/Y ($’s in millions) Change • Volume flat including 53rd week Net Sales $1,523.4 $1,729.2 (11.9%) • Non-residential and industrial markets soft; Significant steel and cop
Slide 6: Financial Highlights – Q4 2016
Financial Highlights – Q4 2016 Three months ended September 30 Continued Growth Against Q4 Q4 Y/Y Tougher YOY Comparisons ($’s in millions) 2016 2015 Change Net Sales $416.2 $437.8 (4.9%) • Volume flat including 53rd week • Net Sales declined by 4.9%; Adjusted Net Sales(1) $416.2 $396.4 5.0% Adjuste
Slide 7: Electrical Raceway Segment Highlights
Electrical Raceway Segment Highlights Three months ended September 30 Portfolio Strength and Q4 Q4 Y/Y Customer Value ($’s in millions) 2016 2015 Change Net Sales $273.4 $254.6 7.4% • Volume up ~1%; soft Q4 activity offsetting most of 53rd week impact Adjusted EBITDA $45.5 $32.9 38.2% • Net sales of
Slide 8: Mechanical Products & Solutions Segment Highlights
Mechanical Products & Solutions Segment Highlights Three months ended September 30 Sluggish General Industrial Q4 Q4 Y/Y Markets and Year-over-Year ($’s in millions) 2016 2015 Change Headwinds Net Sales $143.3 $183.6 (21.9%) • Volume down ~1%; weak industrial markets and lapping strong comps more th
Slide 9: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Net debt / Adjusted EBITDA(1) ($mm) 9/30/2016 Cash and cash equivalents $200.3 5.2x Total Debt $630.3 3.5x CapEx $16.8 Net cash from operating activities $156.6 1.8x Adjusted EBITDA $235.0 Adjusted EBITDA less Capital Expenditures $218.2 FY 2014 FY 201
Slide 10: What We See in the Market
What We See in the Market Mechanical Electrical Products & Projected Raceway Solutions Q4 2016 2017 Key Market Influences by Segment Market Growth Non-Residential Construction Low to Mid Single Digit Industrial Sluggish Recovery Residential Construction Low to Mid Single Digit 9
Slide 11: 2017 Financial Outlook
2017 Financial Outlook Electrical Raceway Segment • Volume +1% to +5% net of loss of 53rd week • Adjusted EBITDA $175 million to $190 million Mechanical Products & Solutions Segment • Volume -2% to +2% net of loss of 53rd week • Adjusted EBITDA $85 million to $90 million Consolidated Atkore • Adjust
Slide 12: Key Takeaways
Key Takeaways • Our strategy is working and we are improving shareholder value by expanding margins, delivering cash flow, and driving growth • We are growing Adjusted EBITDA dollars and margins despite significant input volatility and tepid market growth • Our product availability, quality, and del
Slide 13: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 14: Adjusted net sales reconciliation
Adjusted net sales reconciliation Consolidated Atkore International Group Inc. Three Months Ended Fiscal year ended September September % September 30, September 25, % ($ in thousands) 30, 2016 25, 2015 Change Change 2016 2015 Change Change Net sales $ 416,239 $ 437,814 $ (21,575) (4.9 )% $ 1,523,38
Slide 15: Segment Information
Segment Information Fiscal year ended September 30, 2016 September 25, 2015 Impact Impact of Fence of Fence and Adjusted and Adjusted Sprinkler Adjusted Adjusted EBITDA Sprinkler Adjusted Adjusted EBITDA (in thousands) Net sales exit net sales EBITDA Margin Net sales exit net sales EBITDA Margin Ele
Slide 16: Adjusted earnings per share reconciliation
Adjusted earnings per share reconciliation Consolidated Atkore International Group Inc. Three Months Ended Fiscal Year Ended September 30, September 25, September 30, September 25, (in thousands, except per share data) 2016 2015 2016 2015 Net income $ 15,572 $ (27,051) $ 58,796 $ (4,955) Stock-based
Slide 17: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Three Months Ended Fiscal Year Ended (in thousands) September 30, 2016 September 25, 2015 September 30, 2016 September 25, 2015 Net income (loss) $ 15,572 $ (27,051) $ 58,796 $ (4,955) Depreciation and amortization 14,953 16,092 55,017 59,465 Gain on exti
Slide 18: Net debt / Adjusted EBITDA Reconciliation
Net debt / Adjusted EBITDA Reconciliation September September September ($ in thousands) 30, 2016 25, 2015 26, 2014 Short-term debt and current maturities of long-term debt $ 1,267 $ 2,864 $ 42,887 Long-term debt 629,046 649,344 649,980 Total Debt 630,313 652,208 692,867 Less cash and cash equivalen