Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Q3 2019 Earnings Presentation
19 slides from Valmont Industries's earnings presentation, Oct 24, 2019
Slide 1: Valmont Industries, Inc. Third Quarter 2019 Earnings Presentation
Valmont Industries, Inc. Third Quarter 2019 Earnings Presentation October 24, 2019
Slide 2: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that
Slide 3: 3Q 2019 Segment Revenue and Market Drivers
3Q 2019 Segment Revenue and Market Drivers TOTAL 3Q 2019 REVENUE: $690.3M $268.1M $205.0M $93.0M $144.1M Engineered Support Utility Support Coatings Irrigation Structures Structures N.A.: $82.8M | International: $61.3M 38.8% of Sales 29.7% of Sales 13.5% of Sales 20.9% of Sales MARKET DRIVERS • Cont
Slide 4: 3Q 2019 Summary
3Q 2019 Summary $M, except for per share amounts Revenue Operating Income Diluted EPS +1.7% +66.5% +1.0% +825% +1.6% $690.3 $678.7 $63.9 $63.9 $63.2 $1.85 $1.85 $1.82 $38.4 $0.20 2019 2018 GAAP Adjusted 1 GAAP Adjusted 1 2019 2018 2019 2018 • Higher sales in ESS, Irrigation & Coatings • Operating In
Slide 5: 3Q Results | Engineered Support Structures
3Q Results | Engineered Support Structures ($M) Key Statistics Revenue Operating Income 2018 Revenue1 $248.4 Volume 15.0 $266.5 $248.4 $21.8 $22.8 $16.5 Pricing/Mix 0.5 Acquisitions 8.4 Currency Translation (5.8) 2019 Revenue1 $ 266.5 2019 2018 2019 2018 2018 Adj COMMENTARY • Higher sales driven by
Slide 6: 3Q Results | Utility Support Structures
3Q Results | Utility Support Structures ($M) Key Statistics Revenue Operating Income 2018 Revenue1 $218.0 Volume (27.7) $218.0 $204.2 Pricing/Mix 12.8 $20.4 $20.0 Acquisitions 2.1 Currency Translation (1.0) $2.1 2019 Revenue1 $ 204.2 2019 2018 2019 2018 2018 Adj COMMENTARY • Sales decreased from les
Slide 7: 3Q Results | Coatings
3Q Results | Coatings ($M) Key Statistics Revenue Operating Income 2018 Revenue1 $74.5 Volume (6.1) $76.9 $74.5 $14.4 $13.9 Pricing/Mix 2.8 Acquisitions 6.9 Currency Translation (1.2) 2019 Revenue1 $ 76.9 2019 2018 2019 2018 COMMENTARY • Sales growth was slightly higher than GDP levels, led by recen
Slide 8: 3Q Results | Irrigation
3Q Results | Irrigation ($M) Key Statistics Revenue Total Operating Income 2018 Revenue1 $137.8 $21.3 Volume 9.0 $18.2 $81.4 $75.8 Pricing/Mix (3.5) $61.3 $62.0 Acquisitions - Currency Translation (0.6) North America International 2019 2018 2019 Revenue1 $ 142.7 2019 2018 COMMENTARY • Globally, gros
Slide 9: YTD Cash Flow Highlights
YTD Cash Flow Highlights 2019 YTD Cash Flow | FCF Reconciliation Cash and Debt Highlights YTD YTD 9/30/19 9/29/18 ($M) Net Cash Flows from Operating Activities $ 239.2 $ 68.1 $327.2M Net Cash Flows from Investing Activities (139.2) (113.4) ($139.0 ex-U.S.) Cash at 09/28/2019 Net Cash Flows from Fina
Slide 10: Capital Allocation | A Balanced Approach
Capital Allocation | A Balanced Approach ($M) 2019 YTD Capital Deployment • Working capital investment to support investments in people, technology and systems Capital • 3Q spending driven by 4 factory expansions to support Growing Our Expenditures strong global market demand Business $82 • Total Ca
Slide 11: 2019 Financial Guidance and Key Assumptions
2019 Financial Guidance and Key Assumptions 2019 Full Year Financial Outlook and Key Metrics KEY ASSUMPTIONS PRIOR CURRENT • Revenue growth: evenly divided between organic Diluted and completed EPS $8.10 - $8.70 $7.05 - $7.45 acquisitions Revenue • Raw material inflation Growth1 6% – 7% 1% – 2% expe
Slide 12: Summary of 2019 Outlook
Summary of 2019 Outlook 01 02 03 04 05 Revisions driven Strong Irrigation segment Adding capacity Remain by one-time infrastructure continues to in existing committed to expenses, NA market demand perform below infrastructure price discipline in infrastructure will continue; we our expectations faci
Slide 13: Appendix
APPENDIX 13 | October 24, 2019 | Valmont Industries, Inc. | Q3 2019 Earnings Presentation
Slide 14: Valmont Structures Small Cell Products
Valmont Structures Small Cell Products Advancing the Industry with Integrated Solutions 14 | October 24, 2019 | Valmont Industries, Inc. | Q3 2019 Earnings Presentation
Slide 15: Third Quarter and YTD 2019 Financial Summary
Third Quarter and YTD 2019 Financial Summary $M, except for per share amounts Gross Sales 3Q 2019 3Q 2018 Change YTD 2019 YTD 2018 Change Engineered Support Structures $ 268.1 $ 251.5 6.6% $ 757.1 $ 727.2 4.1% Utility Support Structures 205.0 218.3 (6.1%) 658.7 625.9 5.3% Coatings 93.0 90.4 2.8% 278
Slide 16: Calculation of Adjusted EBITDA & Leverage Ratio
Calculation of Adjusted EBITDA & Leverage Ratio Certain of our debt agreements contain covenants that require us to maintain certain coverage ratios. Our Debt/Adjusted EBITDA may not exceed 3.5X Adjusted EBITDA (or 3.75X Adjusted EBITDA after certain material acquisitions) of the prior four quarters
Slide 17: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS REGULATION G RECONCILIATION (Dollars in thousands, except per share amounts) (unaudited) The non-GAAP tables bel
Slide 18: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results For the Third Quarter Ended Sept 29, 2018 Engineered Support Utility Support Other/ Segment Operating Income Reconciliation Structures Structures Coatings Irrigation Corporate Operating income - as reported $ 16,499 $ 2,090 $ 1
Slide 19: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results 13 Weeks 39 Weeks Ended Sept 29, Ended Sept 29, Operating Income Reconciliation 2018 2018 Operating income - as reported $ 38,360 $ 165,990 Impairment of goodwill and tradename 15,780 15,780 Restructuring expenses 6,243 17,662