Luxfer Holdings PLC · NYSE:LXFR
Luxfer — Q1 2014 Earnings Presentation
22 slides from Luxfer's earnings presentation, 2014
Slide 1: 2014 Q1 results conference call
2014 Q1 results Q 1 2 0 1 4 C o n fe r e n c e C a l l
Slide 2: Forward-Looking Statements
slide 2 FORWARD-LOOKING STATEMENTS This presentation contains forward-looking statements. Examples of such forward-looking statements include, but are not limited to: (i) statements regarding the Group’s results of operations and financial condition, (ii) statements of plans, objectives or goals of
Slide 3: Agenda
slide 3 AGENDA • Chief Executive – Brian Purves – Q1 2014 overview – Market situation – Divisional performance • Group Finance Director – Andy Beaden – Q1 earnings review – Liquidity and capital resources – Financial issues • Chief Executive – Brian Purves – Summary – Outlook • Questions? LUXFER GRO
Slide 4: Q1 2014 overview
slide 4 Q1 2014 overview • Net revenue up 2.7% like-for-like. – $122.4m compared to $119.2m Q1 2013. • Trading profit $12.3m, down $2.6m on Q1 2013. • Adjusted EBITDA down $1.8m on Q1 2013. • EPS per ADS @ $0.27 on net income and $0.28 on adjusted net income (fully diluted). – 4 cents below the cons
Slide 5: Elektron Division
slide 5 ELEKTRON DIVISION • Underlying Q1 revenue, (which excludes FX Elektron translation effects and surcharge), increased by Q1 $4.3 million (8.5%) compared to Q1 2013. $m – Q1 2014 cerium surcharge is $2.3m lower than Net revenue 50.8 in Q1 2013, down to just $0.9m. RE surcharge 3.2 2013 Revenue
Slide 6: Gas Cylinders Division
slide 6 GAS CYLINDERS DIVISION Gas • Q1 underlying revenue down $3.8 million (5.6%) Cylinders on Q1 2013. Q1 $m – Weaker demand in both Europe and US markets for aluminum cylinders. Net revenue 68.4 RE surcharge – Continued demand for composite cylinders for 2013 Revenue analysis 68.4 compressed nat
Slide 7: Selected strategic growth initiatives - update
slide 7 Selected strategic growth initiatives - update • Alternative fuel containment – Developing range of Type 4 (polymer-lined) composite cylinders for larger diameters. – Targeting emerging market for CNG-powered class 8 heavy-duty trucks in North America. – New manufacturing facilities being pr
Slide 8: Andy Beaden, Group Finance Director
slide 8 GROUP FINANCE DIRECTOR ANDY BEADEN LUXFER GROUP © 2014 Luxfer Group Limited, All Rights Reserved
Slide 9: Group revenue
slide 9 Group revenue Gas Elektron Cylinders Group Q1 Q1 Q1 $m $m $m Net revenue 50.8 68.4 119.2 RE surcharge 3.2 3.2 2013 Revenue analysis 54.0 68.4 122.4 Changes in period: FX translation 1.2 1.5 2.7 Rare earth surcharge (2.3) (2.3) Trading movements 4.3 (3.8) 0.5 Net revenue 56.3 66.1 122.4 RE su
Slide 10: Geographic sales trends
slide 10 Geographic sales trends Q1 2014 Q1 2013 Total Total Europe Europe $40.6m $44.4m $13.6m $14.3m $16.7m $25.7m $27.0m $30.1m $51.9m $55.3m $123.3 million $122.4 million LUXFER GROUP © 2014 Luxfer Group Limited, All Rights Reserved
Slide 11: Trading profit analysis
slide 11 Trading profit analysis 2014 2013 Q1 Q1 Gas Cylinders Trading profit $M 1.6 5.2 ROS % 2.4% 7.6% Elektron Trading profit $M 10.7 9.7 ROS % 18.7% 18.0% GROUP Trading profit $M 12.3 14.9 ROS % 10.0% 12.2% Changes for Gas Cylinders ‐69.2% N.B. Trading profit is Luxfer’s IFRS 8 2014 v 2013 Elekt
Slide 12: Summary income statement
slide 12 Summary income statement 2014 2013 Variance Q1 $m Q1 Q1 $m % Revenue 123.3 122.4 0.9 0.7% Costs of sales (94.4) (94.1) Gross margin 28.9 28.3 0.6 2.1% Gross margin % 23.4% 23.1% Distribution (2.1) (1.6) Admininstrative exp (14.5) (11.8) Share of results of joint ventures TRADING PROFIT 12.3
Slide 13: Balance sheet analysis
slide 13 Balance sheet analysis December Trading Acquistion March 2013 & exchange 2014 $M $M $M $M Long term assets 203.0 0.4 6.9 210.3 Inventories 94.1 12.7 106.8 Receivables 68.6 12.1 0.3 81.0 Payables (63.2) (11.4) 0.0 (0.3) (74.9) Working capital 99.5 13.4 0.0 112.9 Income taxes (current and def
Slide 14: Cash flow
slide 14 Cash flow 2014 2013 Q1 Q1 $m $m Operating profit 12.3 14.5 Depreciation & amortization 4.3 3.7 Share based compensation charges 0.3 0.3 Decrease / (increase) in working capital (13.3) (6.8) Increase / (decrease) in provisions (0.1) (0.3) Income tax received / (paid) 0.1 (0.2) Movement in re
Slide 15: Return on Invested Capital
slide 15 Return on Invested Capital (2012 restated for IAS 19 revised) Notes: 1. Return on Invested Capital (ROIC) is defined as : Trading profit X (1 - effective tax rate for the period) Invested capital 2. Invested Capital is defined as shareholders’ equity plus debt less cash (“Net debt”). 3. Inv
Slide 16: Brian Purves, Summary and Outlook
slide 16 CHIEF EXECUTIVE BRIAN PURVES SUMMARY AND OUTLOOK LUXFER GROUP © 2014 Luxfer Group Limited, All Rights Reserved
Slide 17: Summary Q1 2014
slide 17 Summary Q1 2014 • Gas Cylinders – Sales into SCBA market affected by regulatory delays on customers’ products. – Bulk of shipments achieved for Australian virtual pipeline contract. – Continued weakness in several aluminum markets. – ISO 13485 medical device certification obtained by UK cyl
Slide 18: Outlook for 2014
slide 18 Outlook for 2014 • Elektron – Defense likely to remain depressed, but continued gradual improvement expected in other markets. • Accident at customer’s defense facility: will affect Q2 more than it did Q1 (part-quarter). – Little impact yet from strategic projects on aircraft seating and bi
Slide 19: Questions?
slide 19 QUESTIONS? LUXFER GROUP © 2014 Luxfer Group Limited, All Rights Reserved
Slide 20: Appendices
slide 20 APPENDICES LUXFER GROUP © 2014 Luxfer Group Limited, All Rights Reserved
Slide 21: Reconciliation of non-GAAP measures: adjusted net income and EBITDA
slide 21 Reconciliation of non-GAAP measures Adjusted net income and EBITDA: 2014 2013 Q1 Q1 $m $m Net income for the period ‐ as reported 7.2 8.3 Restructuring & other (income) / expense 0.4 Acquisitions and disposals 0.2 Amortization of share based compensation charge 0.3 0.1 IAS 19 ‐retirement be
Slide 22: Reconciliation of non-GAAP measures: Return on Invested Capital
slide 22 Reconciliation of non-GAAP measures Return on Invested Capital (ROIC): 2010 2011 2012 2013 Q1 2013 Q1 2014 (restated) (restated) (restated) $M $M $M $M $M $M Trading profit ‐ per income statement 44.7 63.7 68.5 59.2 14.9 12.3 Effective rate tax per income statement 27.8% 23.7% 28.8% 27.0% 3