Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Q2 2018 Earnings Presentation
21 slides from Valmont Industries's earnings presentation, Jul 24, 2018
Slide 1: Forward-looking Statement Disclosure
Forward-looking Statement Disclosure These slides contain (and the accompanying oral discussion will contain) “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements involve known and unknown risks, uncertainties and other factors that
Slide 2: 2018 Second Quarter Highlights
2018 Second Quarter Highlights Higher revenues in Engineered Support Structures and Coatings segments, more than offset by lower sales in Irrigation and Utility Support Structures Late-quarter market headwinds contributed to unfavorable sales comparisons in the Irrigation segment Lower sales in the
Slide 3: Second Quarter Financial Summary
Second Quarter Financial Summary 4 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation NET SALES U.S. Dollars in millions except per share amounts 2018 2017 Percent Change Engineered Support Structures $250.7 $236.8 5.9% Utility Support Structures 197.7 210.6 (6.1%) Coatings 91.6 79
Slide 4: YTD Financial Summary
YTD Financial Summary 5 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation NET SALES U.S. Dollars in millions except per share amounts 2018 2017 Percent Change Engineered Support Structures $475.7 $441.8 7.7% Utility Support Structures 407.6 410.9 (0.8%) Coatings 176.5 153.2 15.2%
Slide 5: Second Quarter Highlights – Operating Income GAAP
Second Quarter Highlights – Operating Income GAAP 6 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation U.S. Dollars in millions Operating Income 2Q 2018 Operating Income 2Q 2017 Increase (Decrease) Operating Income % 2Q 2018 Operating Income % 2Q 2017 Engineered Support Structures
Slide 6: Second Quarter Highlights – Operating Income Adjusted
Second Quarter Highlights – Operating Income Adjusted 7 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation U.S. Dollars in millions Adjusted Operating Income 2Q 2018* Operating Income 2Q 2017 (no-adjustments) Increase (Decrease) Operating Income % 2Q 2018 Operating Income % 2Q 2017
Slide 7: Engineered Support Structures Segment
Engineered Support Structures Segment 8 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 2017 Revenue1 $231.3 Volume 0.2 Pricing/Mix 3.9 Acquisitions 4.9 Currency Translation 5.8 2018 Revenue1 $246.1 $ in millions Sales increased over 2017 levels, driven by favorable currency tra
Slide 8: Utility Support Structures Segment
Utility Support Structures Segment 9 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 2017 Revenue1 $209.6 Volume (28.4) Pricing/Mix 13.4 Acquisitions - Currency Translation 1.9 2018 Revenue1 $196.5 $ in millions Sales volumes were lower compared to 2017, mostly due to a less fav
Slide 9: Coatings Segment
Coatings Segment 10 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 2017 Revenue1 $64.6 Volume 4.1 Pricing/Mix 5.1 Acquisitions - Currency Translation 0.7 2018 Revenue1 $74.5 $ in millions Sales increased over last year, reflecting price recovery of higher zinc costs and improve
Slide 10: Irrigation Segment
Irrigation Segment 11 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 2017 Revenue1 $186.2 Volume (30.5) Pricing/Mix 5.0 Acquisitions 2.8 Currency Translation (2.9) 2018 Revenue1 $160.6 $ in millions Global sales were lower than 2017. Increased uncertainty of tariff and trade po
Slide 11: Free Cash Flow and Conversion – First Half 2018 & 2017
Free Cash Flow and Conversion – First Half 2018 & 2017 12 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 2018 2017 Operating Cash Flow $53.7 $55.7 Capital Expenditures ($31.8) ($26.2) Free Cash Flows $21.9 $29.5 Adjusted Net Earnings * $44.7 $45.7 Free Cash Flows to Adj. Net Ea
Slide 12: Cash and Debt Highlights
Cash and Debt Highlights 13 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 2Q 2018 Actual Free Cash Flow $22M YTD Cash At 06/30/2018 $723M ($368M Ex. US) Total Debt $990M Debt/Adjusted EBITDA* 2.84X Credit Rating S&P BBB+ Stable Moody’s Baa3 Stable * See the Company’s calculati
Slide 13: Prepackaged Substations
Prepackaged Substations 14 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation Pre-assembly reduces installation time, mitigates risk of weather delays, and helps streamline project planning
Slide 14: Appendix
ApPENDIX 16 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation
Slide 15: U.S. 2018 YTD Commodity Prices (USD)
U.S. 2018 YTD Commodity Prices (USD) Significant Price Declines in May and June, with slight rebound in July 17 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation Source: Macrotrends.net and USDA Corn Cotton Soybeans Wheat
Slide 16: Calculation of Adjusted EBITDA & Leverage Ratio
Calculation of Adjusted EBITDA & Leverage Ratio 18 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation Last 4 fiscal quarters (July 2, 2017 to June 30, 2018) The Company completed the redemption of its 2020 bonds on July 9th. Certain of our debt agreements contain covenants that req
Slide 17: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results 19 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation 13 Weeks Ended June 30, 2018 Diluted earnings per share 26 Weeks Ended June 30, 2018 Diluted earnings per share Net earnings attributable to Valmont Indust
Slide 18: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results 20 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation Segment Operating Income Reconciliation Engineered Infrastructure Products Utility Support Structures Coatings Irrigation Other/ Corporate Operating income
Slide 19: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results 21 July 24, 2018 Valmont Industries, Inc. Q2 2018 Earnings Presentation Operating Income Reconciliation 13 Weeks Ended June 30, 2018 13 Weeks Ended July 1, 2017 26 Weeks Ended June 30, 2018 26 Weeks Ended July 1, 2017 Operating
Slide 20: Summary of Effect of Significant Non-recurring Items on Estimated 2018 Results
Summary of Effect of Significant Non-recurring Items on Estimated 2018 Results 22 July 24, 2018 Valmont Industries, Inc. Q1 2018 Earnings Presentation Reconciliation of Range of Net Earnings - Full Year 2018 Low End High End Adjustments Estimated net earnings - GAAP $ 138,666 $ 140,866 Estimated res
Slide 21: Summary of Effect of Significant Non-recurring Items on Estimated 2018 Results
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