Slide 1: Earnings Call Presentation 2nd Quarter 2017
Earnings Call Presentation 2nd Quarter 2017 July 31, 2017 Exhibit 99.2
Slide 2: Safe Harbor Statement
Our disclosures in this presentation, including without limitation, those relating to future financial results market conditions and guidance, and in our other public documents and comments contain forward-looking statements within the meaning of the Private Securities Litigation Reform Act. Those s
Slide 3: Basis of Presentation
All figures throughout the presentation are in $ millions unless otherwise noted. Figures may not add due to rounding. When reporting our financial results within this presentation, we make several adjustments. Management uses the non-GAAP measures below in managing the business and believes the adj
Slide 4: Consolidated Company Key Metrics - Second Quarter 2017
Consolidated Company Key Metrics - Second Quarter 2017 As reported Net Sales: $331 million in 2017 and $314 million in 2016 As reported Operating Income: $78 million in 2017 and $52 million in 2016 As reported EPS: $0.77 in 2017 and $0.29 in 2016 Excludes $1 million of Unallocated Corporate expenses
Slide 5: EBITDA Bridge – Second Quarter 2017 vs. PY
Adjusted EBITDA Bridge – Second Quarter 2017 vs. PY $5 $5 ($2) ($1) $5 ($1)
Slide 6: Free Cash Flow Bridge – Second Quarter 2017 vs. PY
Adjusted Free Cash Flow Bridge – Second Quarter 2017 vs. PY(1) $44 Excludes payments made for the acquisition of Tectum in the first quarter of 2017. ($15) ($2)
Slide 7: Americas Second Quarter Results
Excluding the unfavorable impact of foreign exchange of $1 million, constant currency sales increased 5.4% due to strong average unit value (“AUV”) achievement from both solid mix performance and positive “like for like” pricing. Volumes modestly improved driven by the U.S. Commercial channel which
Slide 8: EMEA Second Quarter Results
Excluding the unfavorable impact of foreign exchange of $2 million, constant currency sales increased 7.7%, driven by strong sales in the Middle East and Russia along with AUV improvement. EMEA Second Quarter Results Adjusted EBITDA margins improved 450 bps driven by higher volumes, good productivit
Slide 9: Pacific Rim Second Quarter Results
Excluding the impact of foreign exchange, constant currency sales increased 8.0% driven by China and India partially offset by Australia. Pacific Rim Second Quarter Results Strength in India and China drove 8% sales growth Key Highlights Dollar amounts on the page are shown in millions 2016 Q2 Adjus
Slide 10: Consolidated Company Key Metrics – 1st Half 2017
Consolidated Company Key Metrics – 1st Half 2017 As reported Net Sales: $646 million in 2017 and $602 million in 2016 As reported Operating Income: $141 million in 2017 and $73 million in 2016 As reported EPS: $1.33 in 2017 and $0.17 in 2016 Excludes $3 million of Unallocated Corporate expenses rela
Slide 11: EBITDA Bridge – 1st Half 2017 vs. PY
Adjusted EBITDA Bridge – 1st Half 2017 vs. PY $17 $10 ($6) ($6) $1 ($1)
Slide 12: Free Cash Flow Bridge – 1st Half 2017 vs. PY
Adjusted Free Cash Flow Bridge – 1st Half 2017 vs. PY(1) $58 Excludes payments made for the acquisition of Tectum in the first quarter of 2017. ($14) $3 ($6)
Slide 13: 2017 Guidance
2017 Guidance $2.65 – $2.75 14% – 19% YoY Growth $2.32 Adjusted EBITDA(2) Adjusted EPS(3) Adjusted Free Cash Flow(4) Adjusted Revenue(1) $1,230 $317 $1,305 – $1,340 6% – 9% YoY Growth $350 – $360 10% – 14% YoY Growth $140 – $155 20% – 32% YoY Growth $117 Note: Dollars in millions except per share va
Slide 14: Appendix
Appendix
Slide 15: Net Sales & Adjusted EBITDA Reconciliation
Adjusted Net Sales & Adjusted EBITDA Reconciliation Reported results include $10.7 million of interest expense recorded in the first quarter of 2016 related to the settlement of interest rate swaps incurred in connection with the Company’s refinancing of its credit facility. U.S. pension (credit) ex
Slide 16: Diluted Earnings Per Share Reconciliation
Adjusted Diluted Earnings Per Share Reconciliation U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement I
Slide 17: Free Cash Flow Reconciliation
Adjusted Free Cash Flow Reconciliation Adjusted free cash flow is defined as cash from operations and dividends received from the WAVE joint venture, less expenditures for property and equipment, and is adjusted to remove the impact of cash used or proceeds received for acquisitions and divestitures
Slide 18: Segment Reported Net Income to Adjusted EBITDA
Segment Reported Net Income to Adjusted EBITDA Q2 2017 vs. PY 1H 2017 vs. PY U.S. pension (credit) expense represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contribution
Slide 19: Net Sales & EBITDA – Guidance Reconciliation
Adjusted Net Sales & EBITDA – Guidance Reconciliation U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not make cash contributions to our U.S. Retirement Income
Slide 20: EPS & Free Cash Flow – Guidance Reconciliation
Adjusted EPS & Free Cash Flow – Guidance Reconciliation Based on ~54 million diluted shares outstanding U.S. pension (credit) represents the actuarial net periodic benefit cost expected to be recorded as a component of operating income. For all periods presented, we were not required and did not mak