Somero Enterprises, Inc. · LSE:SOM
Somero Enterprises — H1 2024 Earnings Presentation
22 slides from Somero Enterprises's earnings presentation, August 2024
Slide 1: Innovate. Expand. Grow. 2024 Interim Results Presentation
INNOVATE. EXPAND. GROW. 2024 INTERIM RESULTS PRESENTATION
Slide 2: H1 2024 Highlights
H1 2024 HIGHLIGHTS • Underlying US non-residential construction • Restructuring in July underscores adaptability market remains healthy that allows for continued healthy profits • Trading in North America continues to be • Declared US$ 0.08 interim dividend payable impeded by project start delays an
Slide 3: Sales by Territory
SALES BY TERRITORY US$ MILLIONS H1 2024 H1 2023 Commentary: North America $ 38.8 $ 42.2 • North American declined 8% mostly driven by lower Europe 7.1 7.0 Boomed screed sales volume Australia 3.2 5.3 • Healthy market conditions in Europe continued and new customer acquisitions remain strong Rest of
Slide 4: Sales by Product
SALES BY PRODUCT US$ MILLIONS H1 2024 H1 2023 Commentary: Boomed screeds(1) $ 19.1 $ 24.4 • Sales of Boomed screeds in North America was impacted by elevated interest rates, labor shortages, Ride-on screeds(2) 10.7 11.2 concrete rationing, and inclement weather Remanufactured machines 4.1 3.4 • Sale
Slide 5: Financial Highlights
FINANCIAL HIGHLIGHTS US$ MILLIONS (EXCEPT PER SHARE DATA) H1 2024 H1 2023 Commentary: Revenue $ 51.8 $ 58.9 • Revenue decline primarily attributable to decrease in sales of Boomed screeds in North Adjusted EBITDA (1,2) 12.4 17.3 America and, to a lesser extent, Australia Adjusted EBITDA margin (1,2)
Slide 6: Operating Results
OPERATING RESULTS US$ MILLIONS H1 2024 H1 2023 Commentary: Revenue $ 51.8 $ 58.9 • Gross margin primarily reflects net price Gross profit 28.3 33.6 increase partly offsetting continued input cost increases Operating expenses: Selling, marketing & customer support 8.2 7.6 • Incremental customer suppo
Slide 7: Financial Position
FINANCIAL POSITION JUNE 30, DECEMBER US$ MILLIONS 2024 31, 2023 Commentary: Cash $ 20.8 $ 33.3 • Cash decrease from year-end 2023 primarily reflects US$ 11.4m dividend payment, offset by Accounts receivable, net 8.5 8.8 cash flow from operations Inventory 24.1 19.4 • Accounts receivable remained com
Slide 8: Cash Flows
CASH FLOWS US$ MILLIONS H1 2024 H1 2023 Commentary: Net income $ 8.1 $ 12.4 • Decrease in net income mainly attributable to Adjustments to reconcile to cash the revenue decline in North America and 0.6 0.7 Australia compared to the prior year period provided by operating activities Net working capit
Slide 9: New Products
NEW PRODUCTS The S-940e from the Leaders in Leveling™ • The first Somero® battery operated Laser Screed® Machine • No Emissions and no compromise on productivity: • Same screeding power as gas or diesel • On-board charging (120v or 240v), including generator package • 8 hours of run time, as much as
Slide 10: International Growth - Europe
INTERNATIONAL GROWTH - EUROPE ❖ US$ 7.1m in revenue in H1 2024 (H1 2023: US$ 7.0m) ❖ Revenue from new customers represented 18% of the total European revenue in H1 2024 ❖ Parts and service revenue increased 10% on H1 2023 ❖ New training and service center in Belgium showing demonstrable improvements
Slide 11: International Growth - Australia
INTERNATIONAL GROWTH - AUSTRALIA Melbourne, Australia ❖ US$ 3.2m in revenue in H1 2024, down 40% from a record high US$ 5.3m in H1 2023 ❖ Inclement weather caused significant project delays ❖ Revenue from new customers represented 43% of the total AUS revenue in H1 2024 11
Slide 12: 2024 Outlook
2024 OUTLOOK Overall US non-residential construction market Anticipate trading improvement in H2 over remains healthy H1 based on new product growth and assumed improvement in weather conditions Elevated interest rates, labor shortages and in US and Australia concrete rationing continue to cause pro
Slide 13: Questions
QUESTIONS 13
Slide 14: Appendices
APPENDICES 14
Slide 15: Our Proven Model
OUR PROVEN MODEL WHAT WE DO Somero’s laser-guided technology and wide-placement methods have been specified for use in a wide range of construction projects. Warehousing Assembly Parking WHO WE WORK WITH plants structures Somero operates in markets across the globe and has sold products in 90+ count
Slide 16: Products & Applications
PRODUCTS & APPLICATIONS RELEASE PRODUCT APPLICATION MARKET BOOMED SCREEDS: S-22EZ SRS-6s 2024 SRS-6s 2022 S-PS50 SLAB ON 25,000-50,000+ ft2 placements GRADE 2022 S-28EZ warehouses, manufacturing S-PS50 assembly plants, tilt-panel and 2014 S-22EZ (re-launch in ‘23) CAST-IN- agricultural buildings PLA
Slide 17: Training and Expertise
Training and Expertise Somero does more than sell equipment. The Company helps customers grow profitable businesses by providing access to world class training and concrete placement & finishing expertise. Since 2021, Somero has enhanced its on-demand and virtual training capabilities to meet our cu
Slide 18: Global Reach
GLOBAL REACH LEADERS IN LEVELLING OUR LOCATIONS At Somero we provide industry-leading concrete levelling equipment, North America training, education and support to customers in over 90+ countries. Fort Myers, Florida: Global headquarters and Somero Our innovative technology allows contractors to co
Slide 19: Our ESG Framework
OUR ESG FRAMEWORK Our goal is to strike the right balance between shareholder expectations and the needs and concerns of our employees and customers, the communities we live in, and the environment Social Somero is dedicated to fostering an open and inclusive working environment for our employees, e
Slide 20: ESG in Action
ESG IN ACTION Concrete Industry Harry Chapin Food Bank Management S-485 Donation Industry Support Charitable Donations Employee Volunteering PTO Employee Training Somero Concrete Institute 31 Backpacks Customer Training 20
Slide 21: ESG in Action
ESG IN ACTION Environmental Study Phase I: 2021 Middle Tennessee State University research study identified environmental benefits from the use of Somero laser screed equipment over traditional manual methods by reducing concrete. Environmental Study Phase II: Colorado State University study complet
Slide 22: Historical Results
HISTORICAL RESULTS YEARS ENDED DECEMBER 31, US$ Millions (except per share data) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Revenue 24.2 21.0 21.9 32.2 45.1 59.3 70.2 79.4 85.6 94.0 89.3 88.6 133.3 133.6 120.7 Revenue growth -53% -13% 4% 47% 40% 32% 18% 13% 8% 10% -5%