Luxfer Holdings Plc · NYSE:LXFR
Luxfer — Q2 2024 Earnings Presentation
26 slides from Luxfer's earnings presentation, Jul 31, 2024
Slide 1: Second Quarter 2024 Earnings Presentation
SECOND QUARTER 2024 EARNINGS PRESENTATION July 31, 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: Q2 2024 Key Highlights
Q2 2024 KEY HIGHLIGHTS Sales and profitability: Meeting expectations with sequential Q2’24 KEY FINANCIALS* profit improvement over the past two quarters Financials Legal: Recognized $5.1 million of legal expense recovery $91.8M Balance sheet: Healthy with low net debt and leverage (1.6x*) Adjusted S
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 1 SALE OF GRAPHIC ARTS BUSINESS • Business Performance: Improved following losses in 2023 and Q1’24 Comprehensive, • Process Status: Competitive process approaching final stages p
Slide 5: Q2'24 Financial Results & Bridges
Q2’24 FINANCIAL RESULTS & BRIDGES (amounts in millions, except EPS) Gross Gross Adj. Adj. EBITDA Adj. Free Cash Net Debt Sales Profit Margin EBITDA Margin EPS Flow Q2’ 2024 $91.8 $20.5 22.3% $17.3 18.8% $0.39 $6.2 $69.9 vs. Q2’ 2023 (YoY) -9.6% -12.0% -70bps 20.1% 460bps 34.5% -$4.0 -$14.6 vs. Q1’ 2
Slide 6: Elektron Q2 '24 Financial Results
ELEKTRON Q2 '24 FINANCIAL RESULTS (amounts in millions) Q2 Vs.Q2 Vs.Q1 YTD Vs. Q2’24 SALES Vs.Q2 Vs.Q1 YTD 2024 2023 2024 2024 2023 BY SEGMENT ($M) ‘23 '24 v s .’ 2 3 Sales $42.0 -20.8% 11.4% $79.7 -24.4% Defense, First Response, -$8.9 +$4.0 -$19.1 Healthcare Gross Margin 29.0% -40bps 40bps 28.9% -8
Slide 7: Gas Cylinders Q2 '24 Financial Results
GAS CYLINDERS Q2 '24 FINANCIAL RESULTS (amounts in millions) Q2 Vs.Q2 Vs.Q1 YTD Vs. Q2’24 SALES Vs.Q2 Vs.Q1 YTD 2024 2023 2024 2024 2023 BY SEGMENT ($M) ‘23 '24 v s .’ 2 3 Sales $49.8 +2.7% +9.7% $95.2 +5.8% Defense, First Response, +$3.7 +$4.0 +$6.2 $8.0 Healthcare Gross Margin 16.7% +80bps -30bps
Slide 8: FY 2024 Guidance
FY 2024 GUIDANCE FULL YEAR* Prior Current ASSUMPTIONS OVERVIEW: Sales Growth • Industrial Sector Outlook: Persistent challenged global Down (LSD) Down (MSD) (incl. volume, price, and FX) industrial operating environment. Adjusted EBITDA $44M - $48M $47M - $50M • Legal Costs: No future recoveries in
Slide 9: Innovation for Future Growth
INNOVATION FOR FUTURE GROWTH THE LUXFER BUSINESS SYSTEM: CNG Cylinders: Bulk Gas Modules: Unitized Group Rations: y Co ra teg ent Exc mme St loy m ell rc p en ia De ce l Excellence Operations People CUSTOMER GROWTH Lean • Advanced high- • Cutting-edge gas • Strong recent market pressure tank transpo
Slide 10: Key Highlights and Achievements
KEY HIGHLIGHTS AND ACHIEVEMENTS G R O W I N G C O N F I D E N C E A N D R E S I L A N C E W I T H C L E A R PAT H T O V A L U E C R E AT I O N Navigating Market Robust Balance Operational Clean Energy Strategic Challenges: Sheet and Efficiencies: Initiatives: Initiatives: Cash Flow: "Despite overall
Slide 11: Q&A
Q&A SECOND QUARTER 2024 EARNINGS PRESENTATION CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 11
Slide 12: Appendices
APPENDICES Segment Financial Detail and Reconciliation of Non-GAAP Measures CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 12
Slide 13: Q2 2024: Gas Cylinders Segment Results
Q2 2024: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) +2.7% Flat $0.6 $2.2 $0.2 $3.7 $2.5 $0.1 $0.5 $3.7 $48.5 $49.8 $4.9 $4.9 Q2 2023 FX Price Inflation Volume/Mix Other Q2 2024 Q2 2023 FX Price Volume/Mix Q2 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVE
Slide 14: Q2 2024: Elektron Segment Results
Q2 2024: ELEKTRON SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) -20.8% +30.5% $0.2 $3.6 $0.2 $12.4 $53.0 $7.2 $9.5 $3.6 $2.4 $6.9 $2.6 $42.0 Q2 2023 FX Price Volume/Mix Q2 2024 Q2 2023 FX Price Net Deflation Volume/Mix Legal / Other Q2 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PE
Slide 15: YTD 2024: Group Results (excluding Graphic Arts)
YTD 2024: GROUP RESULTS (excluding Graphic Arts) Sales ($M) Adj. EBITDA ($M) -10.5% +5.3% $0.2 $1.7 $3.4 $0.9 $1.7 $22.4 $13.0 $195.4 $26.4 $10.2 $27.8 $174.9 Q2 2023 FX Price Volume/Mix Q2 2024 Q2 2023 FX Price Net Deflation Volume/Mix Legal/Other Q2 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY
Slide 16: YTD 2024: Gas Cylinders Segment Results
YTD 2024: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) +5.8% +21.6% $0.8 $0.3 $8.4 $3.5 $4.9 $1.0 $90.0 $95.2 $8.4 $0.1 $9.0 $7.4 Q2 2023 FX Price Volume/Mix Q2 2024 Q2 2023 FX Price Inflation Volume/Mix Other Q2 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL D
Slide 17: YTD 2024: Elektron Segment Results
YTD 2024: ELEKTRON SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) -24.4% -1.1% $0.1 $6.7 $0.8 $18.9 $105.4 $19.0 $6.7 $4.2 $18.8 $79.7 $8.1 $11.2 Q2 2023 FX Price Volume/Mix Q2 2024 Q2 2023 FX Price Inflation Volume/Mix Legal / Other Q2 2024 $- CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION •
Slide 18: Condensed Consolidated Statements of Income
CONDENSED CONSOLIDATED STATEMENTS OF INCOME CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 18
Slide 19: Condensed Consolidated Balance Sheets
CONDENSED CONSOLIDATED BALANCE SHEETS CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 19
Slide 20: Condensed Consolidated Statements of Cash Flows
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 20
Slide 21: 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 21
Slide 22: Adjusted EBITDA (Unaudited)
ADJUSTED EBITDA (UNAUDITED) Second 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 $ 10.5 $ 0.1 $ 10.4 $ 7.4 $ (0.5) $ 7.9 Add back: Income tax on ad
Slide 23: 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 23
Slide 24: Reconciliation: Adjusted Effective Tax Rate
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EFFECTIVE TAX RATE CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 24
Slide 25: 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) FREE CASH FLOW (UNAUDITED) CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 25
Slide 26: CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK
CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 26