Acco Brands Corporation · NYSE:ACCO
Acco Brands — Q1 2022 Earnings Presentation
17 slides from Acco Brands's earnings presentation, Apr 27, 2022
Slide 1: ACCO Brands 1Q Earnings Conference Call
ACCO Brands 1Q Earnings Conference Call April 27, 2022
Slide 2: Forward-Looking Statements
Forward-Looking Statements Statements contained in this presentation, other than statements of historical fact, particularly those anticipating future financial performance, business prospects, growth, strategies, business operations and similar matters, results of operations, liquidity and financia
Slide 3: Reg. G – Non-GAAP Financial Measures
Reg. G – Non-GAAP Financial Measures This presentation contains non-GAAP financial measures. We explain how we calculate and use each of these non-GAAP measures and provide a reconciliation of our current period and historical non-GAAP financial measures to the most directly comparable GAAP financia
Slide 4: 1Q 2022 Results Summary
1Q 2022 Results Summary (compared against 1Q 2021) • All segments posted comparable sales increases, led by International with 23% growth • 6.4% higher prices and 4.7% higher volume Sales $442M, up 8% from $411M • Improving consumer demand as schools reopened in Brazil Comparable sales up 11% and Me
Slide 5: 1Q 2022 Segment Results Summary
1Q 2022 Segment Results Summary (compared against 1Q 2021) North America sales/comparable sales $209M, up 10% • Comparable sales up from price increases and improved volume in school products, computer accessories, and business products Operating income $14M vs. $(1M) • Adjusted operating income up
Slide 6: 1Q 2022 Segment Results
1Q 2022 Segment Results Y/Y Segment Financial Metrics 1Q 22 1Q 21 $ in millions Change ACCO Brands North America Sales $208.5 $188.8 10.4% Comparable Sales $208.5 $188.8 10.4% Adjusted Operating Income $19.8 $11.2 76.8% Adjusted Operating Margin 9.5% 5.9% 360 bps ACCO Brands EMEA Sales $156.1 $156.9
Slide 7: 1Q 2022 Margin Reconciliation
1Q 2022 Margin Reconciliation 1Q 2022 Change vs. Items of Significant Impact Adjusted Prior Year Bps on Adjusted Results (non-GAAP) Adjusted Gross Profit $119.6M $1.7M Pricing/Product Cost (140) Mix, net (70) Gross Margin 27.1% (160) bps Net Cost Savings 40 FX 10 SG&A $97.0M $3.7M Sales Leveraging (
Slide 8: 2022 Cash Flow
2022 Cash Flow $ in millions - Numbers may not foot Change due to rounding 1Q22 1Q21 vs 2021 Adjusted EBITDA 39 41 (2) Interest (15) (13) (2) Taxes (8) (8) -- Capital expenditures (3) (4) 1 Working capital and other (114) (52) (62) Pension (5) (7) 2 Cash restructuring costs (2) (3) 1 Free cash flow
Slide 9: Capital Structure
Capital Structure Capital structure as of March 31, 2022 No maturities until 2026 ($ in millions) Facility Balance1 Interest Rate Methodology Rate $600M multicurrency revolver 208 LIBOR + 175 bps, 30.0 bps unused 2.12% USD Term Loan A 88 U.S. LIBOR + 175 bps 2.76% EUR Term Loan A 248 Euro LIBOR
Slide 10: Executing On Capital Allocation Strategy
Executing On Capital Allocation Strategy • Disciplined capital allocation strategy • In 2022 expect to return to normal strategy to use FCF to fund Capital dividend, reduce debt, repurchase shares, and make acquisitions Allocation • In 2021 used FCF to reduce debt; reduced leverage to 3.3x from 4.5x
Slide 11: Full Year 2022 Outlook
Full Year 2022 Outlook Current Prior Comparable Net Sales 3.5% to 8.5% 2.0% to 7.0% FX Impact on Net Sales (1) (2.5%) (1.0%) Reported Net Sales 1.0% to 6.0% 1.0% to 6.0% Comparable Adjusted EPS $1.52 to $1.62 $1.50 to $1.60 FX Impact on Adjusted EPS (1) ($0.04) ($0.02) Adjusted EPS $1.48 to $1.58 $1
Slide 12: About Non-GAAP Financial Measures
About Non-GAAP Financial Measures Our non-GAAP financial measures include the following: Comparable Net Sales: Represents net sales excluding the impact of material acquisitions with current-period foreign operation sales translated at prior-year currency rates. We believe comparable net sales are u
Slide 13: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (Unaudited) (In millions, except per share data) The following tables set forth a reconciliation of certain Consolidated Statements of Income information reported in accordance with
Slide 14: Reg G Reconciliations: Net Income to Adjusted EBITDA
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of Net Income to Adjusted EBITDA (Unaudited) (In millions) The following table sets forth a reconciliation of net income reported in accordance with GAAP to Adjusted EBITDA. Three Month: Ended —______Mareh 3], 2021 % Chang
Slide 15: Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information
Reg G Reconciliations Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited) A. Represents charge to operating expense related to our Russia business. B. Represents the change in fair value of the contingent consideration for the PowerA acquis
Slide 16: Supplemental Business Segment Information and Reconciliation
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Supplemental Business Segment Information and Reconciliation (Unaudited) (In millions) Changes Reported Admsted — Operanag ‘Reported ‘Adjusted = Operating. ‘Adjusted = Adyusted Income ‘Operating Income ‘Operanng ‘Income ‘Adjusted Tacome
Slide 17: Supplemental Net Sales Change Analysis
Reg G Reconciliations Qi 2022: ACCO Brands North America ACCO Brands EMEA ACCO Brands Intemational Total ACCO Brands Corporation and Subsidiaries Supplemental Net Sales Change Analysis (Unaudited) % Change - Net Sales $ Change - Net Sales (in millions) GAAP Non-GAAP GAAP Non-GAAP ‘Comparable ‘Compar