Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Q3 2019 Earnings Presentation
14 slides from Atkore's earnings presentation, Aug 7, 2019
Slide 1: Third Quarter 2019 Earnings Presentation
Third Quarter 2019 Earnings Presentation August 7, 2019
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: Consolidated Atkore Q3 2019 Highlights
Consolidated Atkore Q3 2019 Highlights Delivered Adjusted EBITDA above prior Q3 Net Sales Bridge guidance range $498M $3 $13 $493M Volume Solid volume growth in key electrical focus growth in $2 electrical $18 categories offset by project delays in mechanical business Increasing full year Adjusted E
Slide 4: Consolidated Atkore Q3 2019 Financial Summary
Consolidated Atkore Q3 2019 Financial Summary Q3 Q3 Net Sales Growth Y/Y ($’s in millions) 2019 2018 Change Organic Growth (3.1%) Acquisitions/Divestitures +2.5% Net Sales $493.5 $498.0 (0.9%) FX (0.3%) Operating Income $59.2 $55.2 +7.4% Total (0.9%) Net Income $36.6 $34.2 +6.9% Adjusted EBITDA(1) $
Slide 5: Electrical Raceway Q3 Highlights
Electrical Raceway Q3 Highlights Earnings growth driven by productivity Q3 Q3 Y/Y improvements and operational efficiency gains 2019 2018 Change ($’s in millions) Net Sales $373.2 $370.3 +0.8% Two new product introductions in the quarter; Adjusted EBITDA $76.7 $74.5 +3.0% solid volume growth from fo
Slide 6: Mechanical Products & Solutions Q3 Highlights
Mechanical Products & Solutions Q3 Highlights Adjusted EBITDA margin up 770 basis points Q3 Q3 Y/Y from third quarter 2018 2019 2018 Change ($’s in millions) Net Sales $120.6 $128.2 (6.0%) Focus on margin management Adjusted EBITDA $20.6 $12.0 +71.4% Adjusted EBITDA Operational improvement initiativ
Slide 7: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Leverage Ratio (1) ($’s in millions) 6/28/2019 Cash and cash equivalents $100.7 Total Debt $884.5 3.1 Net Debt $783.8 2.9 2.9 2.8 YTD Net cash from operating $120.2 activities 2.6 TTM Adjusted EBITDA(1) $306.7 Leverage Ratio(1) Total debt / TTM Adjuste
Slide 8: 2019 Financial Outlook Summary
2019 Financial Outlook Summary Updated Changes to Q4 2019 FY19 FY19 Electrical Raceway Volume +2% - / (2%) Segment Adjusted EBITDA* $74 - $79M $287 - $292M +$7M / +$2M Volume (1%) - flat (1%) / (2%) Mechanical Products & Solutions Segment Adjusted EBITDA* $13 - $17M $62 - $66M +$5M / +$4M Adjusted E
Slide 9: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 10: Segment Information
Segment Information Three months ended June 28, 2019 June 29, 2018 Adjusted Adjusted EBITDA EBITDA (in thousands) Net sales Adjusted EBITDA Margin Net sales Adjusted EBITDA Margin Electrical Raceway $ 373,229 $ 76,721 20.6 % $ 370,333 $ 74,461 20.1 % Mechanical Products & Solutions 120,596 20,595 17
Slide 11: Adjusted Earnings Per Share Reconciliation
Adjusted Earnings Per Share Reconciliation Consolidated Atkore International Group Inc. Three months ended Nine months ended (in thousands, except per share data) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Net income $ 36,550 $ 34,199 $ 93,054 $ 103,946 Stock-based compensation 4,120 3,
Slide 12: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. Three months ended Nine months ended (in thousands) June 28, 2019 June 29, 2018 June 28, 2019 June 29, 2018 Net income $ 36,550 $ 34,199 $ 93,054 $ 103,946 Interest expense, net 12,789 12,442 38,277 28,322 Inco
Slide 13: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. TTM Three months ended December 28, September 30, (in thousands) June 28, 2019 June 28, 2019 March 29, 2019 2018 2018 Net income $ 125,753 $ 36,550 $ 29,555 $ 26,949 $ 32,699 Interest expense, net 50,649 12,789
Slide 14: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. June 28, March 29, December 28, September 30, June 29, ($ in thousands) 2019 2019 2018 2018 2018 Short-term debt and current maturities of long- term debt $ — $ — $ 26,561 $ 26,561 $ 7,630 Long-term debt 884,503 8
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