Slide 1: Third Quarter 2023 Earnings Presentation and Business Update
Third Quarter 2023 Earnings Presentation and Business Update August 8, 2023 © Atkore
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. (the “Company” or “Atkore”) or its operational and financial in
Slide 3: Solid Results in Q3 2023
Solid Results in Q3 2023 Net Sales Net Income Adjusted EBITDA1 Diluted EPS Adjusted Diluted EPS1 $M $M $M $/share $/share +2.6% +15.6% +19.0% +17.5% 1,061.6 254.3 377.5 -2.1% 5.74 6.07 5.13 5.72 853.7 895.9 919.1 201.3 4.87 274.3 276.0 270.3 4.31 175.3 174.2 3.64 3.96 493.5 384.9 88.5 36.6 24.1 63.7
Slide 4: Solar Credit Accounting Treatment Explanation
Solar Credit Accounting Treatment Explanation Background and Update Q3 Solar Credit Bridges Net Sales Tax Rate In Q1 and Q2 2023, Atkore utilized the Government Grant Accounting Model (GGAM) regarding $924M $919M 24.4% 1580 bps 15.8% transferability of the solar credits being generated as $5 part of
Slide 5: Q3 Income Statement Summary
Q3 Income Statement Summary Y/Y Y/Y % ($’s in millions) Q3 2023 Q3 2022 Change Change Net Sales $919.1 $1,061.6 ($142.5) (13.4%) Operating Income $232.6 $349.7 ($117.2) (33.5%) Net Income $201.3 $254.3 ($53.0) (20.8%) Adjusted EBITDA1 $270.3 $377.5 ($107.3) (28.4%) Adjusted EBITDA Margin2 29.4% 35.6
Slide 6: Consolidated Atkore Bridges
Consolidated Atkore Bridges Q3 Net Sales Bridge $20 Net Sales % Change 2023 $1,062M $48 $919M Volume/Mix +2% $15 $196 Price (18%) Acquisitions +4% F/X / Other (1%) Total (13%) 2022 Volume/Mix Price M&A F/X / Other / 2023 Solar Credit Adjusted EBITDA Bridge1 Adjusted Diluted EPS Bridge1 $378M $6.07 $
Slide 7: Segment Results
Segment Results Electrical Safety & Infrastructure Y/Y ($’s in millions) Y/Y ($’s in millions) Q3 2023 Q3 2022 Q3 2023 Q3 2022 Change Change Net Sales $705.6 $821.6 (14.1%) Net Sales $213.6 $241.9 (11.7%) Adjusted EBITDA $266.6 $351.5 (24.2%) Adjusted EBITDA $21.5 $45.7 (52.9%) Adjusted EBITDA Margi
Slide 8: Cash Flow Summary
Cash Flow Summary Cash Flow from Operating Activities FY23 YTD Cash Bridge $564 +52% $564M $123 $83 $372M $389M $318M $416 $13 FY22 YTD FY23 YTD FY22 YE Cash Flow Capital M&A Stock Net Other FY23 YTD Cash Balance From Operating Expenditures Repurchases Uses of Cash Cash Balance Cash flow from Operat
Slide 9: Updated FY2023 Outlook
Updated FY2023 Outlook Increasing FY2023 Outlook for Adjusted Diluted EPS. Continue to expect mid-single digit percentage volume growth for full year Net Sales versus prior year. Outlook Summary Outlook Items for Q4 2023 FY2023 Updates to FY2023 Key Comments & Consolidated Atkore Outlook Outlook Out
Slide 10: FY 2023 Outlook Update Comparison
FY 2023 Outlook Update Comparison Outlook expectations for both Adjusted EBITDA and Adjusted Diluted EPS for FY 2023 would have been in a position to increase versus the prior outlook provided in May under the GGAM method of accounting for solar credits Adjusted EBITDA Bridge1 $240 - $260 $1,070 - $
Slide 11: Appendix
Appendix © Atkore 11
Slide 12: Segment Information
Segment Information Three months ended June 30, 2023 June 24, 2022 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net Sales EBITDA Margin Net Sales EBITDA Margin Electrical $ 705,617 $ 266,556 37.8 % $ 821,566 $ 351,466 42.8 % Safety & Infrastructure 213,606 21,493 10.1 % 241,909 4
Slide 13: S&I Adjusted EBITDA Margin
S&I Adjusted EBITDA Margin (Under Government Grant Accounting Model) Three months ended June 30, 2023 Adjusted Adjusted Net Sales EBITDA EBITDA (in thousands) Margin Safety & Infrastructure (as reported) $ 213,606 $ 21,493 10.1 % Total solar credits generated (a) — 20,248 Rebate allocation (b) 4,780
Slide 14: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore Inc. Three months ended June 30, March 31, June 24, June 25, June 26, June 28, (in thousands) 2023 2023 2022 2021 2020 2019 Net income $ 201,288 $ 174,194 $ 254,313 $ 175,297 $ 24,078 $ 36,550 Interest expense, net 8,682 8,475 7,243 8,
Slide 15: Net Income to Adjusted EBITDA Reconciliation (Government Grant Model)
Net Income to Adjusted EBITDA Reconciliation (Under Government Grant Accounting Model) Consolidated Atkore Inc. (in thousands) June 30, 2023 Income before income taxes (as reported) $ 220,219 Total solar credits generated (a) 20,248 Income before income taxes (adjusted for solar credits) 240,467 Inc
Slide 16: Earnings Per Share Reconciliation
Earnings Per Share Reconciliation (Under Government Grant Accounting Model) Consolidated Atkore Inc. (in thousands) June 30, 2023 Income before income taxes (as reported) $ 220,219 Total solar credits generated (a) 20,248 Income before income taxes (adjusted for solar credits) 240,467 Income tax exp
Slide 17: Adjusted Diluted EPS Reconciliation
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share) Consolidated Atkore Inc. Three months ended June 30, March 31, June 24, June 25, June 26, June 28, (in thousands, except per share data) 2023 2023 2022 2021 2020 2019 Net income $ 201,288 $ 174,194 $ 254,313 $ 175,297 $ 24,0
Slide 18: Adjusted Diluted EPS Reconciliation (Government Grant Model)
Adjusted Diluted EPS Reconciliation (Adjusted Net Income Per Diluted Share, Under Government Grant Accounting Model) Consolidated Atkore Inc. (in thousands) June 30, 2023 Income before income taxes (as reported) $ 220,219 Total solar credits generated (a) 20,248 Income before income taxes (adjusted
Slide 19: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore Inc. TTM Three months ended March 31, December 30, September June 30, 2023 June 30, 2023 (in thousands) 2023 2022 30, 2022 Net income $ 769,776 $ 201,288 $ 174,194 $ 173,492 $ 220,802 Interest expense, net 35,645 8,682 8,475 9,488 9,000 Incom
Slide 20: Net Debt to Total Debt
Net Debt to Total Debt Consolidated Atkore Inc. March 31, December 30, September December 24, June 30, 2023 June 24, 2022 (in thousands) 2023 2022 30, 2022 2021 Long-term debt $ 762,149 $ 761,612 $ 761,074 $ 760,537 $ 759,999 $ 759,461 Total debt 762,149 761,612 761,074 760,537 759,999 759,461 Less
Slide 21: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore Inc. Nine months ended (in thousands) June 30, 2023 June 24, 2022 Net cash provided by operating activities $ 563,748 $ 371,776 Capital expenditures (122,535) (81,990) Free Cash Flow $ 441,213 $ 289,786 © Atkore 21
Slide 22: atkore.com
A Atkore A Atkore atkore.com BUILDING BETTER TOGETHER 22