Atkore Inc. · NYSE:ATKR
Atkore — Q4 2021 Earnings Presentation
28 slides from Atkore's earnings presentation, Nov 18, 2021
Slide 1: Fourth Quarter and Full Year 2021 Earnings
Fourth Quarter and Full Year 2021 Earnings November 18, 2021 © Atkore Inc.
Slide 2: Cautionary Statements
Cautionary Statements This presentation is provided for general informational purposes only and it does not include every item which may be of interest, nor does it purport to present full and fair disclosure with respect to Atkore Inc. (“Atkore”) or its operational and financial information. Atkore
Slide 3: Today's Discussion
Today’s Discussion 1 Outstanding Financial Results in Q4 and Full Year 2021 2 Strong Adjusted EBITDA Outlook for Full Year 2022 3 Committed to our Conduits of Growth 4 Deploying Capital to Support Growth Strategy 5 Driving Positive ESG Impacts © Atkore 3
Slide 4: Record Quarterly Earnings in Q4 2021
Record Quarterly Earnings in Q4 2021 Revenue Net Income Adjusted EBITDA1 Adjusted EPS1 $/share $M $M $M Q4 Review +93% +273% +198% +272% Outstanding results in Q4 supported by growth in plastic 923.7 202.6 292.9 4.39 conduit & fittings, and solid volume recovery Received a utility patent for MC Glid
Slide 5: Q4 Income Statement Summary
Q4 Income Statement Summary Y/Y ($’s in millions) Q4 2021 Q4 2020 Y/Y % Change Change Net Sales $923.7 $477.4 $446.3 93.5% Operating Income $266.0 $84.2 $181.7 215.7% Net Income $202.6 $54.2 $148.3 273.4% Adjusted EBITDA1 $292.9 $98.2 $194.7 198.3% Adjusted EBITDA Margin2 31.7% 20.6% +1,110 bps - Ne
Slide 6: Consolidated Atkore Q4 2021 Bridges
Consolidated Atkore Q4 2021 Bridges Q4 Net Sales Bridge $391 $31 $924M Net Sales % Change Volume/Mix +5.2% $25 $477M Price +82.0% Acquisitions / F/X / Other +6.3% Total +93.5% 2020 Volume/Mix Price M&A / F/X / Other 2021 Q4 Adjusted EBITDA Bridge $391 $293M Highlights $1 Delivered outstanding result
Slide 7: Q4 2021 Segment Results
Q4 2021 Segment Results Electrical Safety & Infrastructure Y/Y ($’s in millions) Y/Y ($’s in millions) Q4 2021 Q4 2020 Q4 2021 Q4 2020 Change Change Net Sales $697.5 $350.6 98.9% Net Sales $227.4 $127.5 78.3% Adjusted EBITDA $283.9 $91.9 208.9% Adjusted EBITDA $29.0 $17.1 70.1% Adjusted EBITDA Margi
Slide 8: 2021 Cash Bridge
2021 Cash Bridge Significantly strengthened balance sheet in 2021 due to strong cash generation and balanced approach to capital deployment. FY21 Cash Flow Bridge, $M $573M $64 $508 $43 $52 $135 $14 $292 Cash Flow From Capital Expenditures Free Cash Flow1 M&A Activities Net Repayments of Long- Stock
Slide 9: 2021 Year in Review
Delivered Record Financial Results Received “Great Place to Work” Certification Completed three acquisitions and added Phoenix site achieved the ENERGY STAR© resources to strengthen capabilities Challenge for Industry; 14 additional sites have registered this year 2021 Year in Review Awarded 19 pate
Slide 10: Strong Adjusted EBITDA Outlook for FY 2022
Strong Adjusted EBITDA Outlook for FY 2022 FY2022 Outlook Long-term Perspectives $898 Adjusted EBITDA1 $M $650 - $700 Anticipate normalized adjusted EBITDA in future years to be approximately $600M including the $324 $327 expected contributions from future M&A opportunities FY 2019 FY 2020 FY 2021 F
Slide 11: Conduits of Growth
Conduits of Growth New Product Focused M&A Pipeline Innovation Product Categories Customer Experience Digital Capabilities Enhancements & Resources Ongoing investment areas across the business to improve market positioning and operational capabilities Multiple megatrends including electrification &
Slide 12: Electrification & Digitization Megatrends
Electrification & Digitization Megatrends Market Trends Where Atkore Delivers Solutions ▴ Offer a portfolio of products produced in an environmentally Electrification of buildings to support net zero conscious manner that are required for new building construction energy transition and retrofitting
Slide 13: FY21 Sales Breakdown by Market
FY21 Sales Breakdown by Market Estimated % of Estimated % of Atkore FY20 Net Atkore FY21 Net Sales by End Sales by End Market Market Market Review ▪ Products primarily sold through electrical distribution channel ~33 Non-Res New ~33 ▪ Long-term positive market trends in Data Centers, Warehouses, and
Slide 14: Capital Deployment Focused on Driving Growth
Capital Deployment Focused on Driving Growth Leveraging strong position entering FY2022 to invest in organic and inorganic opportunities to drive growth Capital Deployment Model Capital Expenditures, Planned investments in FY22 for digital tools and capabilities, as Expect to deploy over $1 billion
Slide 15: M&A Strategy Focused on Profitable Growth
M&A Strategy Focused on Profitable Growth Strategic Criteria Financial Criteria ▴ Strengthens leadership position in current product categories or ▴ Identified path to synergy & value creation fills a portfolio gap ▴ Projected returns above our cost of capital ▴ Sales and distribution through simila
Slide 16: Committed to Driving Positive ESG Impacts
Committed to Driving Positive ESG Impacts Committed to efficient use of natural resources to reduce our environmental impact and cut costs 19.6% Reduction in energy intensity over the past three years at our Phoenix, AZ site 14 Additional manufacturing sites committed to participate in the ENERGY ST
Slide 17: FY2022 Outlook
FY2022 Outlook Outlook Summary Outlook Items for Q1 2022 FY2022 Consolidated Atkore Outlook Outlook Net Sales + ~50% +MSD% Adjusted EBITDA1 $230 – $250M $650 – $700M Adjusted EPS1 $3.30 – $3.60 $9.20 – $10.00 Interest Expense $30 – $32M Tax Rate 25% – 27% Capital Expenditures $80 – $90M Stock Buybac
Slide 18: Atkore: a Compelling Investment
Atkore: a Compelling Investment Disciplined Operational Focus Values-based organization driven by the Atkore Business System Market Leadership Leading market share in key product categories with a portfolio of must-stock products for electrical distributors Opportunities for Growth Multiple levers a
Slide 19: Appendix
Appendix © Atkore
Slide 20: FY21 Income Statement Summary
FY21 Income Statement Summary Y/Y ($’s in millions) 2021 2020 Y/Y % Change Change Net Sales $2,928.0 $1,765.4 $1,162.6 65.9% Operating Income $799.0 $239.6 $559.4 233.5% Net Income $587.9 $152.3 $435.6 286.0% Adjusted EBITDA1 $897.5 $326.6 $570.9 174.8% Adjusted EBITDA Margin2 30.7% 18.5% +1,220 bps
Slide 21: Consolidated Atkore FY 2021 Bridges
Consolidated Atkore FY 2021 Bridges Full Year Net Sales $978 $97 $2,928M Net Sales % Change Bridge Volume/Mix +5.0% $88 $1,765M Price +55.4% Acquisitions / F/X / Other +5.5% Total +65.9% 2020 Volume/Mix Price M&A / F/X / Other 2021 Full Year Adjusted EBITDA Bridge $978 $0 $898M $327M $30 $437 2020 V
Slide 22: Segment Adjusted Information
SegmentAdjusted Information Earnings Per Share Reconciliation Three months ended September 30, 2021 September 30, 2020 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical $ 697,492 $ 283,945 40.7 % $ 350,631 $ 91,907 26.2 % Safe
Slide 23: Adjusted Earnings Per Share Reconciliation
Adjusted Earnings Per Share Reconciliation Consolidated Atkore Inc. Three months ended Fiscal Year Ended September 30, September 30, September September (in thousands, except per share data) 2021 2020 30, 2021 30, 2020 Net income $ 202,561 $ 54,241 $ 587,857 $ 152,302 Stock-based compensation 2,889
Slide 24: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended Fiscal Year Ended September 30, September 30, September 30, September 30, (in thousands) 2021 2020 2021 2020 Net income $ 202,561 $ 54,241 $ 587,857 $ 152,302 Income tax expense 65,222 20,584 192,144 49,696 Depr
Slide 25: Trailing Twelve Month Adjusted EBITDA Reconciliation
Trailing Twelve AdjustedMonth Adjusted Earnings Per ShareEBITDA Reconciliation Reconciliation Consolidated Atkore Inc. TTM Three months ended September September June 25, March 26, December (in thousands) 30, 2021 30, 2021 2021 2021 25, 2020 Net income $ 587,857 $ 202,561 $ 175,297 $ 124,933 $ 85,06
Slide 26: Net Debt and Leverage Ratio
Net DebtAdjusted to TotalEarnings Debt andPerLeverage Ratio Share Reconciliation Consolidated Atkore Inc. September 30, March 26, December 25, September 30, March 27, December 27, ($ in thousands) 2021 June 25, 2021 2021 2020 2020 June 26, 2020 2020 2019 Short-term debt and current maturities of lon
Slide 27: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore Inc. Fiscal year ended September 30, September 30, (in thousands) 2021 2020 Net cash provided by operating activities $ 572,902 $ 248,762 Capital expenditures $ (64,474) $ (33,770) Free Cash Flow: $ 508,428 $ 214,992 © Atkore 27
Slide 28: Thank You!
Thank You! Atkore.com © Atkore