A.o. Smith Corporation · NYSE:AOS
A.o. Smith — Q1 2021 Earnings Presentation
12 slides from A.o. Smith's earnings presentation, Apr 29, 2021
Slide 1: First Quarter 2021 Results
(<6 Smith. Innovation has a name. First Quarter 2021 Results
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains statements that we believe are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally can be identified by the use of words such as “may,” “will,” “expect,” “i
Slide 3: First Quarter Commentary
First Quarter Commentary Record Q1 NA Water Boiler sales U.S. Water Supply chain Third 2021 China sales EPS of $0.60 Treatment grow 12 Heater challenges water heater grow >100 grows 12 percent volumes and price increase percent in percent decline production effective local currency constraints June
Slide 4: First Quarter Results
First Quarter Results $ in millions except per share data 2021 2020 Change % Change Sales $ 769.0 $ 636.9 $ 132.1 21% Net Earnings $ 97.7 $ 51.7 $ 46.0 89% EPS $ 0.60 $ 0.32 $ 0.28 88% 4
Slide 5: First Quarter Sales
First Quarter Sales $ in millions 2021 2020 Change % Change North America $ 552.9 $ 532.9 $ 20.0 4% Rest of World 222.3 110.2 112.1 102% Intersegment (6.2) (6.2) - Total $ 769.0 $ 636.9 $ 132.1 21% 5
Slide 6: First Quarter Earnings (Loss)
First Quarter Earnings (Loss) $ in millions 2021 2020 Change % Change Segment Earnings (Loss) North America $ 130.4 $ 127.1 $ 3.3 3% Rest of World 11.8 (42.2) 54.0 NA Total Segment Earnings 142.2 84.9 57.3 67% Corporate (15.1) (15.0) (0.1) 1% Interest Expense (1.0) (2.2) 1.2 (55)% Pre-tax Earnings 1
Slide 7: Strong Capital Position
Strong Capital Position1 Cash Flow from Operations $ in millions $104M 5.4% $666M $125 $104 Cash provided Debt to Cash balance2 $100 by operations capital ratio $75 $559M ~1.1M $50 $54 Net cash position Shares repurchased $25 totaling ~$67M $0 1 as of March 31, 2021 2 includes cash, cash equivalents
Slide 8: 2021 EPS Guidance and Assumptions
2021 EPS Guidance and Assumptions ($ in millions) 2021 Projections EPS $2.55 to $2.65 per share Operating Cash Flow $475 - $500 Capital Expenditures $85 - $90 Depreciation & Amortization Approximately $80 Corporate/Other Expense Approximately $52 Effective Tax Rate Approximately 23 percent Stock Rep
Slide 9: 2021 Outlook
2021 Outlook % Revenue 2021 Assumptions U.S. residential water heater industry volumes down approximately two percent, or 200,000 NA Water Heaters 59% units; commercial water heater industry volumes down approximately four percent China 26% China sales increase 18 – 20 percent in local currency NA B
Slide 10: 2021 Outlook
2021 Outlook • Revenue increases between 14 and 15 percent, including $50 million China FX benefit • North America segment margin expected to be between 23 and 23.5 percent • Rest of World segment margin expected to be between seven and eight percent As of April 29, 2021 10
Slide 11: Compelling Investment Thesis
Compelling Investment Thesis Market leader Stable/growing U.S. Strength of premium 5-year dividend CAGR Strong balance sheet replacement market; brand, distribution, through 2020 = 22% and cash flow to operating leverage manufacturing and support future 5-year cumulative from incremental new innovat
Slide 12: A. O. Smith. Innovation has a name.
(X6 Smith. Innovation has a name.