Acco Brands Corporation · NYSE:ACCO
Acco Brands — Q2 2021 Earnings Presentation
18 slides from Acco Brands's earnings presentation, Jul 29, 2021
Slide 1: ACCO Brands 2Q Earnings Conference Call
ACCO Brands 2Q Earnings Conference Call July 29, 2021
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, operating strategies and similar matters, results of operations, liquidity and financial condition
Slide 3: Reg. G – Non-GAAP Financial Measures
Reg. G – Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. We explain how we calculate and use each of these non-GAAP measures and provide a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financia
Slide 4: 2Q 2021 Results Summary
2Q 2021 Results Summary • All segments posted sales and profit increases • PowerA acquisition added $51M; FX added $24M Sales up 41% to $518M • EMEA strong performance continued Comparable sales up 21% to $443M • Strong rebound in commercial products in all segments • North America back-to-school se
Slide 5: 2Q 2021 Segment Results Summary
2Q 2021 Segment Results Summary • PowerA acquisition added $41M; FX added $4M to sales • Commercial product sales up significantly from offices reopening North America sales $295M, up 27% • Back-to-school sell-in consistent with expectations Comparable sales $251M, up 8% • Operating/adjusted operati
Slide 6: 2021 Segment Results
2021 Segment Results Y/Y Segment Financial Metrics 2Q21 2Q20 $ in millions Change ACCO Brands North America Sales $295.1 $231.7 27.4% Comparable Sales 8.2% (24.5)% Adjusted Operating Income $59.9 $45.3 32.2% Adjusted Operating Margin 20.3% 19.6% 70 bps ACCO Brands EMEA Sales $157.0 $88.3 77.8% Compa
Slide 7: 2Q 2021 Margin Reconciliation
2Q 2021 Margin Reconciliation 2Q 2021 Change vs. Items of Significant Impact Adjusted Prior Year Bps on Adjusted Results (non-GAAP) Adjusted Gross Profit $164.1M $54.1M Cost Savings 120 Inventory Reserves/Other 110 Gross Margin 31.7% 170 bps Acquisition (30) Product Mix, Net of Pricing/Costs (30) SG
Slide 8: 2021 Cash Flow
2021 Cash Flow Change vs $ in millions* 2Q21 1Q21 2021 YTD 2020YTD 2020 Adjusted EBITDA 84 41 125 84 41 Interest (4) (7) (11) (17) 6 Accelerated Payment of Bond Interest -- (6) (6) -- (6) Taxes (7) (8) (15) (14) (1) Capital expenditures (5) (4) (9) (9) -- Working capital and other (78) (52) (130) (1
Slide 9: Capital Structure
Capital Structure Capital structure as of June 30, 2021 No maturities until 2026 ($ in millions) Facility Balance1 Interest Rate Methodology Rate $600M multicurrency revolver 256 LIBOR + 225 bps, 37.5 bps unused 2.39% USD Term Loan A 91 U.S. LIBOR + 225 bps 2.40% EUR Term Loan A 275 Euro LIBOR (
Slide 10: Executing On Capital Allocation Strategy
Executing On Capital Allocation Strategy • Disciplined capital allocation strategy • Near-term plan to deploy FCF to fund dividend and reduce debt Capital • Long-term plan to deploy FCF to fund dividend, reduce debt, Allocation repurchase shares, and make acquisitions • 2Q 2021 bank pro forma net le
Slide 11: Outlook
Outlook 3Q 2021 Outlook1 Net Sales $515M - $545M Adjusted EPS $0.30 to $0.35 FY 2021 Outlook2 Net Sales $2.00B - $2.07B Adjusted EPS $1.35 to $1.45 Adjusted EBITDA $285M - $300M Free cash flow of $135M ($165M Cash Flow cash from operations minus $30M capex) 1 3Q - Assumes 2% impact on sales and $0.0
Slide 12: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Our non-GAAP financial measures include the following: Comparable Net Sales: Represents net sales excluding the impact of acquisitions with current-period foreign operation sales translated at prior-year currency rates. We believe comparable net sales are useful to
Slide 13: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited) (In millions, except per share data) The following tables set forth a reconciliation of certain Consolidated Statements of Income information reported in accordance with
Slide 14: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (U (In millions, except per share data) judited) The following tables set forth a reconciliation of certain Consolidated Statements of Income information reported in accordance with
Slide 15: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of Net Income to Adjusted EBITDA (Unaudited) (In millions) ‘The following table sets forth a reconciliation of net income reported in accordance with GAAP to Adjusted EBITDA. ‘Three Months Ended Six Months Ended June 30, J
Slide 16: Reg G Reconciliations
Reg G Reconciliations opp Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited) Represents the amortization of step-up in the value of inventory associated with the PowerA acquisition. Represents transaction and integration expenses associate
Slide 17: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Supplemental Business Segment Information and Reconciliation (Unaudited) (In millions) 2021 2020 Changes ‘Adjusted Adjusted Reported Adjusted — Operating Reported Adjusted — Operating Adjusted — Adjusted ‘Operating (Operating Income Oper
Slide 18: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Supplemental Net Sales Change Analysis (Unaudited) % Change - Net Sales $ Change - Net Sales (in millions) GAAP Non-GAAP GAAP Non-GAAP Comparable Net Sales Net Sales | Currency Net Sales | Comparable Change Change | Translation Acquisiti