Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Q3 2018 Earnings Presentation
22 slides from Valmont Industries's earnings presentation, Oct 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 Third Quarter Highlights
2018 Third Quarter Highlights 3 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 1 Please see Reg G reconciliation of non-GAAP financial measures to GAAP measures at end of the document. Revenue gains in ESS, Utility and Coatings offset by lower sales in Irrigation and unfavor
Slide 3: Third Quarter Financial Summary
Third Quarter Financial Summary 4 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation NET SALES U.S. Dollars in millions except per share amounts 2018 2017 Percent Change Engineered Support Structures $251.5 $246.3 2.1% Utility Support Structures 218.3 204.8 6.6% Coatings 90.4 82
Slide 4: Third Quarter Highlights – Operating Income GAAP
Third Quarter Highlights – Operating Income GAAP 5 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation U.S. Dollars in millions Operating Income 3Q 2018 Operating Income 3Q 2017 Increase (Decrease) Operating Income % 3Q 2018 Operating Income % 3Q 2017 Engineered Support Structure
Slide 5: Third Quarter Highlights – Operating Income Adjusted
Third Quarter Highlights – Operating Income Adjusted 6 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation U.S. Dollars in millions Adjusted Operating Income 3Q 20181 Operating Income 3Q 2017 (no-adjustments) Increase (Decrease) Operating Income % 3Q 2018 Operating Income % 3Q 20
Slide 6: Engineering Support Structures Results
Engineering Support Structures Results 7 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 2017 Revenue2 $244.7 Volume (6.0) Pricing/Mix 11.9 Acquisitions 3.7 Currency Translation (5.9) 2018 Revenue2 $248.4 $ in millions Higher lighting and traffic sales led by solid transporta
Slide 7: Utility Support Structures Results
Utility Support Structures Results 8 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 2017 Revenue2 $203.5 Volume (2.1) Pricing/Mix 10.3 Acquisitions 6.7 Currency Translation (0.4) 2018 Revenue2 $218.0 $ in millions 1 Please see Reg G reconciliation of non-GAAP financial measu
Slide 8: Coatings Results
Coatings Results 9 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 2017 Revenue2 $67.7 Volume 3.5 Pricing/Mix 4.3 Acquisitions 0.3 Currency Translation (1.3) 2018 Revenue2 $74.5 $ in millions 1 Please see Reg G reconciliation of non-GAAP financial measures to GAAP measures at
Slide 9: Irrigation Results
Irrigation Results 10 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 2017 Revenue2 $145.1 Volume (12.6) Pricing/Mix 5.2 Acquisitions 5.1 Currency Translation (5.0) 2018 Revenue2 $137.8 $ in millions North America revenues increased more than 16%, from higher volumes, and sal
Slide 10: YTD Cash and Debt Highlights
YTD Cash and Debt Highlights 11 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation Free Cash Flow Through Q3 2018 2017 Operating Cash Flow $68.1 $121.8 Capital Expenditures ($48.9) ($39.9) Free Cash Flows $19.2 $81.9 Adjusted Net Earnings1 $129.5 $119.9 Free Cash Flows to Adj. N
Slide 11: Capital Allocation Scorecard – A Balanced Approach
Capital Allocation Scorecard – A Balanced Approach Aligned with Commitments Announced in 2014 Business Growth Return of Capital to Shareholders USD in Millions 12 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation Working capital investment to support business growth CapEx of ~
Slide 12: A Disciplined and Strategic Approach to M&A
A Disciplined and Strategic Approach to M&A 13 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation Deal Phase Ownership Deliverable Valmont Investment Philosophy and Strategy Corporate Senior Management Provide Strategic Vision and Values Identify Opportunities and Synergies Segm
Slide 13: Recent Acquisitions Drive Addressable Market Growth
Recent Acquisitions Drive Addressable Market Growth Geographic Expansion Adjacent Market New Product/Service Global Capabilities * *Closed on October 18, 2018 14 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation
Slide 14: 2018 Updated Guidance
2018 Updated Guidance 15 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 2018 Revised Guidance GAAP Diluted EPS2 $4.95 - $5.10 Adjusted Diluted EPS1 $7.50 - $7.65 Revenue3 $2.75 - $2.80 Billion Operating Profitability Growth4 10 bps Free Cash Flow 0.60 – 0.65x Net Earnings RO
Slide 15: Appendix
ApPENDIX 16 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation
Slide 16: YTD Financial Summary
YTD Financial Summary 17 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation NET SALES U.S. Dollars in millions except per share amounts 2018 2017 Percent Change Engineered Support Structures $727.2 $688.0 5.7% Utility Support Structures 625.9 615.7 1.7% Coatings 267.0 235.8 13.2
Slide 17: Calculation of Adjusted EBITDA & Leverage Ratio
Calculation of Adjusted EBITDA & Leverage Ratio 18 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation Last 4 fiscal quarters (October 1, 2017 to September 29, 2018) Certain of our debt agreements contain covenants that require us to maintain certain coverage ratios. Our Debt/Adj
Slide 18: Summary of Effect of Significant Non-recurring Items on Reported Results
Summary of Effect of Significant Non-recurring Items on Reported Results 19 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation 13 Weeks Ended Sept 29, 2018 Diluted earnings per share 39 Weeks Ended Sept 29, 2018 Diluted earnings per share Net earnings attributable to Valmont Ind
Slide 19: Summary of Effect of Significant Non-recurring Items: Segment Operating Income
Summary of Effect of Significant Non-recurring Items on Reported Results 20 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation Segment Operating Income Reconciliation Engineered Support Structures Utility Support Structures Coatings Irrigation Other/ Corporate Operating income -
Slide 20: Summary of Effect of Significant Non-recurring Items: Operating Income
Summary of Effect of Significant Non-recurring Items on Reported Results 21 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation Operating Income Reconciliation 13 Weeks Ended Sept 29, 2018 13 Weeks Ended Sept 30, 2017 39 Weeks Ended Sept 29, 2018 39 Weeks Ended Sept 30, 2017 Oper
Slide 21: 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 October 24, 2018 Valmont Industries, Inc. Q3 2018 Earnings Presentation *The tax effect of adjustments is calculated based on income tax rate in each applicable jurisdiction Reconciliation of Range of Net Earnings - Fu
Slide 22: Summary of Effect of Significant Non-recurring Items on Estimated 2018 Results
Summary of Effect of Significant Non-recurring Items on Estimated 2018 Results soane(Re earings Pabt}8 anal i ere Rane soe soe ‘cd ag Resa pose be “The tax tet ot adiustmerts i calcd baed on income atte nach apical recon