Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Q3 2017 Earnings Presentation
15 slides from Atkore's earnings presentation, Aug 8, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
PRINTING INSTRUCTIONS CHECK TOC BEFORE PRINTING Color/grayscale: Color (regardless of printing in b/w) Scale to fit paper: OFF Print hidden slides: OFF POWERPOINT OPTIONS > ADVANCED > PRINT Print in background: OFF Third Quarter 2017 Earnings Presentation August 8, 2017
Slide 2: Cautionary statements
1 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. For
Slide 3: Financial Highlights – Q3 2017
2 Financial Highlights – Q3 2017 ($’s in millions) Q3 2017 Q3 2016 Y/Y Change Net Sales $397.7 $395.7 0.5% Net Income $27.5 $20.6 33.0% Adjusted EBITDA(1) $62.0 $67.2 (7.7%) Net Income Margin 6.9% 5.2% +170 bps Adjusted EBITDA Margin(1) 15.6% 17.0% (140 bps) Net Income per Share $0.41 $0.33 24.2% Ad
Slide 4: U.S. Construction Market
3 U.S. Construction Market F2017EAverage20102007 Prior peak Trough 45-year average Today US Nonresidential building construction starts (millions of square feet ) 1,666 1,275 1,031 Historical US single-family and multi-family housing starts (thousands of dwellings) 2005 2009 F2017EAverage Prior peak
Slide 5: Electrical Raceway Segment – Q3 Highlights
4 Electrical Raceway Segment – Q3 Highlights Average selling prices up 6% from pass through of material costs Volume down 3% driven by soft steel conduit market; PVC & Copper products showing low single digit growth Adjusted EBITDA margin decline due to; • Dollar for dollar pass through of raw mater
Slide 6: Mechanical Products & Solutions Segment Highlights
5 Mechanical Products & Solutions Segment Highlights Price up 6% due to pass through of material cost increases and initiatives Volume down 9% due primarily to impact of solar comparison, soft agriculture vertical, and delays in datacenter projects Adjusted EBITDA margin decline due to; • Dollar for
Slide 7: Key Balance Sheet and Cash Flow Metrics
6 Key Balance Sheet and Cash Flow Metrics ($mm) 6/30/2017 Cash and cash equivalents $96.2 Total Debt $492.1 CapEx $15.3 Net cash from operating activities $65.8 TTM Adjusted EBITDA(1) $229.4 Leverage Ratio (1) Total debt / TTM Adjusted EBITDA(1) 2.1x Net debt / TTM Adjusted EBITDA(1) 1.7x Metrics Le
Slide 8: 2017 Financial Outlook Summary
7 2017 Financial Outlook Summary Electrical Raceway Segment Consolidated Atkore Mechanical Products & Solutions Segment Prior Outlook Updated Outlook Volume (2) to 2% ~(4)% Adjusted EBITDA* $182 - $190mm $177 - $182mm Volume (4) to 0% ~(9)% Adjusted EBITDA* $80 - $85mm $70 - $76mm Adjusted EBITDA* $
Slide 9: Key Takeaways
8 Key Takeaways • Current market not improving as fast as expected, macro drivers suggest low single digit growth in 2018 • M&A funnel and activity is gaining momentum • Focus on the Atkore Business System and self-help/productivity initiatives will continue to favorably impact results • The Atkore
Slide 10: Appendix
atkore Appendix a INTERNATIONAL
Slide 11: Segment Information
10 Segment Information A B C D E F G H Three Months Ended June 30, 2017 June 24, 2016 (in thousands) Net sales Adjusted EBITDA Adjusted EBITDA Margin Net sales Adjusted EBITDA Adjusted EBITDA Margin Electrical Raceway $ 266,275 $ 48,026 18.0 % $ 259,826 $ 52,438 20.2 % Mechanical Products & Solution
Slide 12: Adjusted earnings per share reconciliation
11 Adjusted earnings per share reconciliation A B C D E F G H Consolidated Atkore International Group Inc. Three Months Ended Nine months ended (in thousands, except per share data) June 30, 2017 June 24, 2016(b) June 30, 2017 June 24, 2016 (b) Net income $ 27,465 $ 20,645 $ 63,782 $ 43,224 Stock-ba
Slide 13: Net Income to Adjusted EBITDA reconciliation
12 Net Income to Adjusted EBITDA reconciliation A B C D E F G H Consolidated Atkore International Group Inc. Three Months Ended Nine months ended (in thousands) June 30, 2017 June 24, 2016 June 30, 2017 June 24, 2016 Net income $ 27,465 $ 20,645 $ 63,782 $ 43,224 Interest expense, net 5,811 10,169 2
Slide 14: Net debt / Adjusted EBITDA reconciliation
13 Net debt / Adjusted EBITDA reconciliation A B C D E F G H Consolidated Atkore International Group Inc. ($ in thousands) June 30, 2017 September 30, 2016 September 25, 2015 September 26, 2014 Short-term debt and current maturities of long-term debt $ 4,215 $ 1,267 $ 2,864 $ 42,887 Long-term debt 4
Slide 15: Net Income to Adjusted EBITDA reconciliation
14 Net Income to Adjusted EBITDA reconciliation A B C D E F G H Consolidated Atkore International Group Inc. TTM Three Months Ended (in thousands) June 30, 2017 June 30, 2017 March 31, 2017 December 30, 2016 September 30, 2016 Net income $ 79,354 $ 27,465 $ 18,935 $ 17,382 $ 15,572 Interest expense,
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