Atkore Inc. · NYSE:ATKR
Atkore — Atkore International Group — Q1 2017 Earnings Presentation
16 slides from Atkore's earnings presentation, Feb 7, 2017
Slide 1: First Quarter 2017 Earnings Presentation
First Quarter 2017 Earnings Presentation February 7, 2017
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: Key Takeaways
Key Takeaways • Increasing 2017 adjusted earnings per share guidance range by $0.15 to $1.55 - $1.70; Driven primarily by favorable debt refinancing outcome and Q1 tax rate • Q1 activity in Electrical Raceway Segment markets consistent with Q4 2016 levels; Mechanical Products and Solutions segment v
Slide 4: Financial Highlights – Q1 2017
Financial Highlights – Q1 2017 Productivity Savings, Portfolio Management, and Pricing Q1 Q1 Y/Y ($’s in millions) 2017 2016 Change Initiatives Drive Earnings Net Sales $337.6 $358.4 (5.8%) • Improvement in average selling prices successfully offsetting input Adjusted Net Sales(1) $337.6 $350.6 (3.7
Slide 5: Electrical Raceway Segment - Q1 Highlights
Electrical Raceway Segment - Q1 Highlights Earnings Momentum Continues Q1 Q1 Y/Y in Soft Non-Residential Market ($’s in millions) 2017 2016 Change • Average selling prices up 7% from pass through of input costs, and Net Sales $223.0 $223.6 (0.3%) favorable impact from innovative Adjusted EBITDA $40.
Slide 6: Mechanical Products & Solutions Segment Highlights
Mechanical Products & Solutions Segment Highlights Solar Headwinds Partially Offset by Growth Initiatives and Savings Q1 Q1 Y/Y • Average selling prices up 4% from ($’s in millions) 2017 2016 Change mix management, pass through of input costs, and favorable impact Net Sales $115.2 $135.1 (14.7%) fro
Slide 7: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Net debt / Adjusted EBITDA ($mm) 12/30/2016 Cash and cash equivalents $88.0 5.2x Total Debt $493.7 3.5x CapEx $4.0 Net cash from operating activities $32.2 1.8x 1.7x TTM Adjusted EBITDA $236.8 Adjusted EBITDA less Capital $232.8 Expenditures FY 2014 FY
Slide 8: 2017 Financial Outlook Summary
2017 Financial Outlook Summary Prior Outlook Updated Outlook Electrical Raceway Volume 1 to 5% 1 to 5% Segment Adjusted EBITDA $175 - $190mm $182 - $192mm Volume (2) to 2% (2) to 2% Mechanical Products & Solutions Segment Adjusted EBITDA $85 - $90mm $83 - $88mm Adjusted EBITDA $235 - $250 $235 - $25
Slide 9: Key Takeaways
Key Takeaways • Increasing 2017 adjusted earnings per share guidance range by $0.15 to $1.55 - $1.70; Driven primarily by favorable debt refinancing outcome and Q1 tax rate • Q1 activity in Electrical Raceway Segment markets consistent with Q4 2016 levels; Mechanical Products and Solutions segment v
Slide 10: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 11: Adjusted net sales reconciliation
Adjusted net sales reconciliation Consolidated Atkore International Group Inc. Three months ended ($ in thousands) December 30, 2016 December 25, 2015 Change % Change Net sales $ 337,591 $ 358,375 $ (20,784) (5.8 )% Impact of Fence and Sprinkler exit — (7,816) 7,816 (100.0 )% Adjusted net sales $ 33
Slide 12: Segment Information
Segment Information Three months ended December 30, 2016 December 25, 2015 Impact of Adjusted Fence and Adjusted External Net Adjusted EBITDA External Net Sprinkler Adjusted Adjusted EBITDA (in thousands) Sales EBITDA Margin Sales exit net sales EBITDA Margin Electrical Raceway $ 222,963 $ 40,318 18
Slide 13: Adjusted earnings per share reconciliation
Adjusted earnings per share reconciliation Consolidated Atkore International Group Inc. Three months ended (in thousands, except per share data) December 30, 2016 December 25, 2015 Net income $ 17,382 $ 8,572 Stock-based compensation 2,720 2,045 Consulting fee — 875 Loss on extinguishment of debt 9,
Slide 14: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. Three months ended (in thousands) December 30, 2016 December 25, 2015 Net income $ 17,382 $ 8,572 Interest expense, net 9,830 9,881 Income tax expense 5,507 4,598 Depreciation and amortization 13,628 13,493 Los
Slide 15: Net debt / Adjusted EBITDA reconciliation
Net debt / Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. December 30, September 30, September 25, September 26, ($ in thousands) 2016 2016 2015 2014 Short-term debt and current maturities of long-term debt $ 4,228 $ 1,267 $ 2,864 $ 42,887 Long-term debt 489,519 629,046
Slide 16: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. TTM Three months ended December December September June 24, March 25, (in thousands) 30, 2016 30, 2016 30, 2016 2016 2016 Net income $ 67,606 $ 17,382 $ 15,572 $ 20,645 $ 14,007 Interest expense, net 41,747 9,8
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