Atmus Filtration Technologies Inc. · NYSE:ATMU
Atmus Filtration Technologies — Q3 2023 Earnings Presentation
15 slides from Atmus Filtration Technologies's earnings presentation, Nov 3, 2023
Slide 1: Third Quarter 2023 Earnings Call
Third Quarter 2023 Earnings Call November 3, 2023
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995, including, without limitation, those that are based on current expectations, estimates and projecti
Slide 3: Steph Disher, CEO and Jack Kienzler, CFO
Steph Disher Chief Executive Officer Jack Kienzler Chief Financial Officer | 3
Slide 4: Third quarter 2023 Financial highlights
Third quarter 2023 Financial highlights1 $396 million $50 million Sales Adj. FCF 18.3% $0.52 Adj. EBITDA Margin Adj. EPS 1. For the 3 months ended September 30, 2023 GAAP net income was $38 million, diluted earnings per share was $0.45 and cash provided by operating activities was $58 million | 4
Slide 5: Disciplined strategy execution
Disciplined strategy execution 1 3 Grow share in Transform our first-fit in core supply chain markets 2 4 Accelerate Expand into profitable growth industrial filtration in the aftermarket markets | 5
Slide 6: Company results
Company results Three months ended September 30 2023 2022 Sales $396 $401 Gross margin $103 $100 Gross margin % 26.0% 24.9% Selling, General & Research (SAR) $52 $42 SAR% 13.2% 10.5% Joint venture / other income $9 $7 Adj. EBITDA1 $73 $72 Adj. EBITDA margin % 18.3% 17.9% Net Income $38 $50 Diluted e
Slide 7: Cash generation and liquidity for strategic actions
Cash generation and liquidity for strategic actions Full repayment of ▪ $50 million repayment in third quarter revolving credit facility ▪ $50 million of adj. free cash flow Strong cash flow and ▪ $139M cash on hand liquidity ▪ $400M revolving credit facility (full availability) Flexibility to deplo
Slide 8: 2023 outlook
2023 outlook Measure FY 2023 outlook Prior outlook Sales $1,600 - $1,625 $1,580 - $1,630 Adj. EBITDA 18.00% - 18.50% 17.25% - 18.25% margin%1 Additional Planning Assumptions Adj. earnings per $2.20 - $2.30 $2.05 - $2.25 Joint venture income ~$30 share1 Effective tax rate 23% - 25% Interest expense ~
Slide 9: Atmus
“@ Atmus QtA
Slide 10: Non-GAAP Financial Measures
Non-GAAP Financial Measures Public
Slide 11: Non-GAAP Financial Measures
Non-GAAP Financial Measures We use non-GAAP financial information and believe it is useful to investors as it provides additional information to facilitate comparisons of historical operating results, identify trends in our underlying operating results and provide additional insight and transparency
Slide 12: EBITDA and Adjusted EBITDA Reconciliations
Non-GAAP Financial Measures EBITDA and Adjusted EBITDA Reconciliations ($ millions) For the Three Months Ended September 30, 2023 2022 NET INCOME $ 38 50 Plus: Interest expense $ 11 0 Income tax expense $ 11 14 Depreciation and amortization $ 5 5 EBITDA $ 65 70 Plus: One-time separation costs(a) $ 7
Slide 13: Adjusted EPS Reconciliation
Non-GAAP Financial Measures Adjusted EPS Reconciliation ($ Earnings per Share) For the Three Months Ended September 30, 2023 2022 Diluted earnings per share $ 0.45 $ 0.61 Plus: One-Time separation costs(a) $ 0.09 $ 0.02 Less: Tax impact of one-time separation costs $ 0.02 $ 0.01 Adjusted earnings pe
Slide 14: Free Cash Flow and Adjusted Free Cash Flow Reconciliations
Non-GAAP Financial Measures Free Cash Flow and Adjusted Free Cash Flow Reconciliations ($ millions) For the Three Months Ended September 30, 2023 2022 Cash provided by operating activities $58 $48 Less: Capital expenditures $11 $6 Free cash flow $48 $42 Plus: One-time separation capital expenditures
Slide 15: Atmus
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