Luxfer Holdings Plc · NYSE:LXFR
Luxfer — Q3 2024 Earnings Presentation
26 slides from Luxfer's earnings presentation, Oct 30, 2024
Slide 1: Third Quarter 2024 Earnings Presentation
THIRD QUARTER 2024 EARNINGS PRESENTATION October 30, 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: Q3 2024 Key Highlights
Q3 2024 KEY HIGHLIGHTS Profitability: EBITDA margin of 14.8%; marks three consecutive quarters of margin growth. Q3’24 KEY FINANCIALS* Financials Balance sheet: Strong position; low net debt and leverage (1.3x*) $91.4M Land Sale: Secured sale of disused site in Lakehurst, NJ for $7.3M, Adjusted Sale
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 SALE OF GRAPHIC ARTS BUSINESS • Business Performance: Progressing towards profitability and cash generation. Comprehensive, • Process Update: Originally identified buyer did not m
Slide 5: Q3'24 Financial Results & Bridges
Q3’24 FINANCIAL RESULTS & BRIDGES (Excluding legal recovery and cost in 2024 & 2023) (amounts in millions, except EPS) Gross Gross Adj. Adj. EBITDA Adj. Free Cash Sales Profit Margin EBITDA Margin EPS Flow Net Debt Q3’ 2024 $91.4 $20.7 22.6% $13.5 14.8% $0.27 $9.3 $66.0 vs. Q3’ 2023 (YoY) 1.2% 26.2%
Slide 6: Elektron Q3 '24 Financial Results
ELEKTRON Q3 '24 FINANCIAL RESULTS (Excluding legal recovery and cost in 2024 & 2023) (amounts in millions) Q3 Vs.Q3 Vs.Q2 YTD Vs. Q3’24 SALES Vs.Q3 Vs.Q2 YTD 2024 2023 2024 2024 2023 BY SEGMENT ($M) ‘23 '24 v s .’ 2 3 Sales $48.8 7.0% 16.2% $128.5 -14.9% Defense, First Response, +$4.6 +$6.1 -$12.2 H
Slide 7: Gas Cylinders Q3 '24 Financial Results
GAS CYLINDERS Q3 '24 FINANCIAL RESULTS (amounts in millions) Q3 Vs.Q3 Vs.Q2 YTD Vs. Q3’24 SALES Vs.Q3 Vs.Q2 YTD 2024 2023 2024 2024 2023 BY SEGMENT ($M) ‘23 '24 v s .’ 2 3 Sales $42.6 -4.7% -14.5% $137.8 2.3% Defense, First Response, -$1.1 -$5.4 +$5.1 $9.2 Healthcare Gross Margin 16.0% 440bps -70bps
Slide 8: Full Year 2024 Guidance
FULL YEAR 2024 GUIDANCE ASSUMPTION OVERVIEW Excluding Legal Prior Current • Cash Flow: Strengthening the balance sheet to fund growth, Adjusted EBITDA $42M - $45M $45M - $47M reduce debt, and return capital to shareholders.. Adjusted Diluted EPS $0.75 - $0.85 $0.88 - $0.94 • Leverage: Net Debt: EBIT
Slide 9: Operations Excellence: Luxfer Business System and Product Spotlight
INNOVATION PRODUCT SPOTLIGHT THE LUXFER BUSINESS SYSTEM: RotaMag®: L7X Medical Cylinders : Heater Meals: y Co ra teg ent Exc mme St loy m ell rc p en ia De ce l Excellence Operations People CUSTOMER GROWTH Lean • High Strength: Mg alloy • Lightweight: Efficient • New Menu & Packaging: ensures durabi
Slide 10: Key Highlights and Achievements
KEY HIGHLIGHTS AND ACHIEVEMENTS G R O W I N G C O N F I D E N C E A N D R E S I L A N C E W I T H C L E A R PAT H T O V A L U E C R E AT I O N Growth in Key Financial Strength: Operational Driving Clean Strategic Markets: Excellence: Energy Initiatives: Alignment: "Our strong balance "Achieved stron
Slide 11: Q&A
Q&A THIRD QUARTER 2024 EARNINGS PRESENTATION CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 11
Slide 12: Appendices
APPENDICES Segment Financial Detail and Reconciliation of Non-GAAP Measures CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 12
Slide 13: Q3 2024: Gas Cylinders Segment Results
Q3 2024: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) -4.7% +64.3% $3.4 $0.7 $0.5 $6.2 $1.5 $0.3 $44.7 $42.6 $0.1 $3.4 $4.6 $2.8 Q3 2023 FX Price Inflation Volume/Mix Other Q3 2024 Q3 2023 FX Price Volume/Mix Q3 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DE
Slide 14: Q3 2024: Elektron Segment Results (excluding Legal)
Q3 2024: ELEKTRON SEGMENT RESULTS (excluding Legal) Sales ($M) Adj. EBITDA ($M) +7.0% +8.5% $0.2 $0.2 $0.9 $5.4 $3.1 $2.2 $48.8 $8.2 $8.9 $45.6 $3.1 $2.0 Q3 2023 FX Price Volume/Mix Q3 2024 Q3 2023 FX Price Net Deflation Volume/Mix Other Q3 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATI
Slide 15: YTD 2024: Consolidated Results (excluding Graphic Arts & Legal)
YTD 2024: CONSOLIDATED RESULTS (excluding Graphic Arts & Legal) Sales ($M) Adj. EBITDA ($M) -6.8% -9.3% $1.8 $2.0 $23.2 $4.9 $1.0 $2.0 $12.3 $2.7 $285.7 $266.3 $39.7 $36.0 Q3 2023 FX Price Volume/Mix Q3 2024 Q3 2023 FX Price Net Deflation Volume/Mix Other Q3 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNT
Slide 16: YTD 2024: Gas Cylinders Segment Results
YTD 2024: GAS CYLINDERS SEGMENT RESULTS Sales ($M) Adj. EBITDA ($M) +2.3% +33.3% $1.0 $11.8 $9.7 $1.3 $134.7 $137.8 $6.4 $0.7 $11.8 $13.6 $10.2 Q3 2023 FX Price Volume/Mix Q3 2024 Q3 2023 Price Inflation Volume/Mix Other Q3 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEV
Slide 17: YTD 2024: Elektron Segment Results (excluding Legal)
YTD 2024: ELEKTRON SEGMENT RESULTS (excluding Legal) Sales ($M) Adj. EBITDA ($M) -14.9% -24.1% $1.0 $0.8 $9.8 $13.5 $9.8 $6.2 $5.9 $29.5 $3.4 $151.0 $128.5 $22.4 Q3 2023 FX Price Volume/Mix Q3 2024 Q3 2023 FX Price Net Deflation Volume/Mix Other Q3 2024 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY •
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: Reconciliation: Adjusted EBITDA
RECONCILIATION OF NON-GAAP FINANCIAL MEASURES: ADJUSTED EBITDA CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 22
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