Acco Brands Corporation · NYSE:ACCO
Acco Brands — Q3 2021 Earnings Presentation
18 slides from Acco Brands's earnings presentation, Oct 27, 2021
Slide 1: ACCO Brands 3Q Earnings Conference Call
ACCO Brands 3Q Earnings Conference Call October 27, 2021
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, operating strategies and similar matters, results of operations, liquidity and financial condition
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: 3Q 2021 Results Summary
3Q 2021 Results Summary • All segments posted organic sales increases • PowerA acquisition added $57M; FX added $7M Sales $527M, up 19% from $444M • EMEA strong performance continued Comparable sales up 4% to $463M • Commercial products up but affected by office reopening delays • Strong North Ameri
Slide 5: 3Q 2021 Segment Results Summary
3Q 2021 Segment Results Summary • PowerA acquisition added $45M; FX added $2M to sales • Commercial product sales up but affected by delays in offices reopening North America sales $288M, up 21% • Strong back-to-school sell-out; conservative replenishment Comparable sales $240M, up 1% • Absence of K
Slide 6: 2021 Segment Results
2021 Segment Results Y/Y Segment Financial Metrics 3Q21 3Q20 $ in millions Change ACCO Brands North America Sales $287.5 $238.5 20.5% Comparable Sales 0.8% (12.2)% Adjusted Operating Income $41.6 $26.0 60.0% Adjusted Operating Margin 14.5% 10.9% 360 bps ACCO Brands EMEA Sales $161.1 $136.4 18.1% Com
Slide 7: 3Q 2021 Margin Reconciliation
3Q 2021 Margin Reconciliation 3Q 2021 Change vs. Items of Significant Impact Adjusted Prior Year Bps on Adjusted Results (non-GAAP) Adjusted Gross Profit $157.8M $30.7M Mix, net 130 Cost Savings 120 Gross Margin 30.0% 140 bps Pricing/Product Costs (80) Acquisition (20) FX/Other (10) SG&A $100.8M $16
Slide 8: 2021 Cash Flow
2021 Cash Flow 2021 2020 Change $ in millions* 3Q21 2Q21 1Q21 YTD YTD vs 2020 Adjusted EBITDA 72 84 41 197 140 57 Interest (17) (4) (7) (28) (21) (7) Accelerated Payment of Bond Interest -- -- (6) (6) -- (6) Taxes (6) (7) (8) (21) (20) (1) Capital expenditures (5) (5) (4) (14) (12) (2) Working capit
Slide 9: Capital Structure
Capital Structure Capital structure as of September 30, 2021 No maturities until 2026 ($ in millions) Facility Balance1 Interest Rate Methodology Rate $600M multicurrency revolver 153 LIBOR + 225 bps, 37.5 bps unused 2.33% USD Term Loan A 90 U.S. LIBOR + 225 bps 2.38% EUR Term Loan A 264 Euro LI
Slide 10: Executing On Capital Allocation Strategy
Executing On Capital Allocation Strategy • Disciplined capital allocation strategy • Near-term plan to deploy FCF to fund dividend and reduce debt Capital • Long-term plan to deploy FCF to fund dividend, reduce debt, Allocation repurchase shares, and make acquisitions • Reduced debt $117M in 3Q Debt
Slide 11: Outlook
Outlook FY 2021 Outlook1 Net Sales $2.0B - $2.04B Adjusted EPS $1.30 to $1.402 Adjusted EBITDA $285M - $300M Free cash flow of at least $135M (at Cash Flow least $160M cash from operations minus $25M capex) 1 Assumes 2.5% impact on sales and $0.05 on adjusted EPS from favorable FX; and $0.33 from th
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 acquisitions with current-period foreign operation sales translated at prior-year currency rates. We believe comparable net sales are useful to
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 wit
Slide 14: Reg G Reconciliations
Reg G Reconciliations ACCO Brands Corporation and Subsidiaries Reconciliation of GAAP to Adjusted Non-GAAP Information (' (In millions, except per share data) judited) The following tables set forth a of [e Stat of inf reported in accordance with GAAP to adjusted Non-GAAP Information for the nine mo
Slide 15: Reg G Reconciliations
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 Months Ended Nine Months Ended September
Slide 16: Reg G Reconciliations
Reg G Reconciliations @ > Notes to Reconciliations of GAAP to Adjusted Non-GAAP Information and Net Income to Adjusted EBITDA (Unaudited) Represents the amortization of step-up in the value of inventory associated with the PowerA acquisition. Represents transaction and integration expenses associate
Slide 17: Supplemental Business Segment Information
liations Reg G Reconc ACCO Brands Corporation and Subsidiaries Supplemental Business Segment Information and Reconciliation (Unaudited) (In millions) 2021 2020 a Reported Adjusted Operating “Operating Reported Income Adjusted Income NetSales (Lossy tems (Loss) (A) ACCO Brands North America $ 1888 S$
Slide 18: Supplemental Net Sales Change Analysis
Reg G Reconciliations 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 Net Sales Net Sales Currency Change Change ‘Translation Acquisition Q1 2021: ACCO Brands North Americ