Crane Nxt, Co. · NYSE:CXT
Crane Nxt — Q2 2023 Earnings Presentation
19 slides from Crane Nxt's earnings presentation, Aug 8, 2023
Slide 1: Second Quarter 2023 Financial Results
SECOND QUARTER 2023 FINANCIAL RESULTS August 7, 2023
Slide 2: Forward-Looking Statements – Disclaimer
FORWARD-LOOKING STATEMENTS – DISCLAIMER This presentation contains forward-looking statements within the meaning of the federal securities laws. Forward-looking statements include all statements that are not historical statements of fact and those regarding Crane NXT, Co.’s (the “Company”) intent, b
Slide 3: Strong Second Quarter Results, Raising 2023 Guidance
STRONG SECOND QUARTER RESULTS*, RAISING 2023 GUIDANCE $352M +6% • Second quarter results ahead of Sales Core Sales Growth expectations in sales and operating margins • Crane Payment Innovations (CPI) delivered $104M $1.12 strong core sales growth of ~8% with Adj. EBITDA Adj. EPS significant margin e
Slide 4: Q2 2023 Earnings Summary and Highlights
Q2 2023 EARNINGS SUMMARY AND HIGHLIGHTS Q2 2023 Key Message: $ Millions, except per-share amounts As-Reported* Adjusted* Sales $352 $352 • Strong core sales growth of 6% Operating Profit $69 $93 • Strong Q2 margin performance, with Operating Profit Margin 19.5% 26.5% Adjusted Operating Profit Margin
Slide 5: Crane Payment Innovations (CPI)
CRANE PAYMENT INNOVATIONS (CPI) GAAP Adjusted* $ Millions, except per-share amounts Q2 2023 Q2 2022 Change Q2 2023 Q2 2022 Change Sales $226 $211 +7% $226 $211 +7% Segment Profit $65 $51 +26% $70 $57 +23% Segment Margin 28.7% 24.3% +440 bps 31.1% 26.8% +430 bps Backlog $301 $387 (22%) $301 $387 (22%
Slide 6: Crane Currency
CRANE CURRENCY GAAP Adjusted* $ Millions, except per-share amounts Q2 2023 Q2 2022 Change Q2 2023 Q2 2022 Change Sales $127 $123 +3% $127 $123 +3% Segment Profit $35 $29 +18% $38 $33 +15% Segment Margin 27.4% 24.0% +340 bps 30.2% 26.9% +330 bps Backlog $184 $95 +94% $184 $95 +94% Key Message: Q2 202
Slide 7: Strong Balance Sheet and Capital Structure
STRONG BALANCE SHEET AND CAPITAL STRUCTURE $ Millions Q2 2023 Net debt to EBITDA of ~1.5x (June 30, 2023) Cash Provided from Operating Activities 59.5 ~$850M Capital Expenditures (4.5) Free Cash Flow* 55.0 $300M ~$777M Term Loan Adjusted Free Cash Flow* 70.2 Effective (GAAP) Tax Rate 22.7% Non-GAAP
Slide 8: Raising 2023 Guidance
RAISING 2023 GUIDANCE* Prior Revised Business Segment 2023 Revenue Growth Drivers Guidance Guidance Adjusted Segment Crane Payment • Secular trends supporting investment in 27%+ 27%+ Margin Innovations (CPI) automation and productivity initiatives • Continued improvement in supply chain Corporate Ex
Slide 9: Key Messages from Q2 2023
KEY MESSAGES FROM Q2 2023 • Better than expected performance on sales and operating profit • Strong backlog in Crane Currency provides confidence to raise sales guidance • CPI on course for full year, as expected • Raising full year Adjusted EPS guidance by $0.10 to ~$3.85-$4.15 • Strong balance she
Slide 10: Crane NXT Provides Trusted Technology Solutions to Secure, Detect, and Authenticate
CRANE NXT PROVIDES TRUSTED TECHNOLOGY SOLUTIONS TO SECURE, DETECT, AND AUTHENTICATE WHAT MATTERS MOST Secure Detect Industry-leading materials technology to protect currency and high-value products Advanced detection systems and software to authenticate and manage transactions Authenticate $1.4B ~40
Slide 11: Crane NXT Value Creation Formula
CRANE NXT VALUE CREATION FORMULA Resilient core revenue growth at • Investing in core business to ~MSD capitalize on opportunities to enhance organic growth • Continuously utilizing CBS to improve M&A to Expand to CBS to drive Strong FCF margins and generate high FCF Higher-Growth continuous convers
Slide 12: Crane NXT – A Premier Industrial Technology Company
CRANE NXT – A PREMIER INDUSTRIAL TECHNOLOGY COMPANY 5-YEAR GOALS • Leading provider of trusted technology solutions to secure, detect, and authenticate our customer’s most valuable assets ~$3B Sales • Durable, resilient business growing at ~MSD with best-in-class margins and free cash flow conversio
Slide 13: Appendix
APPENDIX CRANE NO T
Slide 14: Non-GAAP Explanation
NON-GAAP EXPLANATION Crane NXT, Co. reports its financial results in accordance with U.S. generally accepted accounting principles (“GAAP”). This press release includes certain non-GAAP financial measures, including Adjusted operating profit, Adjusted operating margin, Adjusted EPS, free cash flow a
Slide 15: Non-GAAP Explanation
NON-GAAP EXPLANATION The Company's management believes that each of the following non-GAAP measures provides useful information to investors regarding the Company’s financial conditions and operations: • "Adjusted operating profit" and "Adjusted operating margin" add back to operating profit items w
Slide 16: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures (unaudited, in millions) Three Months Ended June 30, 2023 Adjusted Operating Profit and Adjusted Operating Profit Margin $ Per Share Net sales (GAAP) $ 352.4 Operating profit (GAAP) $ 68.8 Operating profit margin (GAAP) 19.5
Slide 17: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Non-GAAP Financial Measures by Segment (unaudited, in millions) Crane Payment Three Months Ended June 30, 2023 Innovations Crane Currency Corporate Total Company Net sales $ 225.9 $ 126.5 $ — $ 352.4 Operating profit (loss) (GAAP) $ 64.8 $ 34.7 $ (30.7)
Slide 18: Non-GAAP Financial Measures for Crane NXT, Co.
NON-GAAP FINANCIAL MEASURES FOR CRANE NXT, CO. Free Cash Flow (unaudited, in millions) Three Months Ended June 30, 2023 Cash Flow Items Cash provided by operating activities (GAAP) $ 59.5 $ Less: Capital expenditures (4.5) Free cash flow $ 55.0 $ Transaction related expenses (a) 15.2 Adjusted free c
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