Valmont Industries, Inc. · NYSE:VMI
Valmont Industries — Q1 2017 Earnings Presentation
13 slides from Valmont Industries's earnings presentation, 2017
Slide 1: 1Q 2017 Earnings Call Presentation
1Q 2017 Earnings Call Presentation Valmont Industries. Inc. | 2017 Investor Day
Slide 2: 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 tha
Slide 3: First Quarter Highlights
First Quarter Highlights Net Sales grew 7% with increases in all segments1 Utility Support Structures revenues increased 21% Operating income grew 3% Operating income as a percent of sales is 10.1% in 2017 compared to 10.5% in 2016 GAAP Diluted earnings per share increase 18.6% from $1.45
Slide 4: Financial Highlights—First Quarter
Financial Highlights—First Quarter NET SALES 2017 2016 Percent Dollars in millions except per share amounts Change Engineered Support Structures $180.6 $176.9 2.0% Utility Support Structures 174.6 144.5 20.8% Coatings 73.5 68.6 7.1% Energy & Mining 78.0 72.5 7.6% Irrigation 167.2 158.5 5.5% Interseg
Slide 5: Financial Highlights Operating Income
Financial Highlights Operating Income Dollars in millions Operating Operating Increase Operating Operating Income 1Q Income 1Q /Decrease Income Percent Income Percent 2017 2016 1Q 2017 1Q 2016 Engineered Support $9.2 $12.5 (26.4%) 5.2% 7.1% Structures Utility Support 22.7 14.4 NM 13.0% 10.0% Structu
Slide 6: Engineered Support Structures
Engineered Support Structures $ in millions 2016 Revenue $166.0 Volume (4.6) Pricing/Mix 1.0 Acquisitions - Currency Translation (2.0) 2017 Revenue $160.4 • Slightly lower traffic and lighting sales volumes in North America and EMEA. Wireless communication sales increased with North America volume i
Slide 7: Utility Support Structures
Utility Support Structures $ in millions 2016 Revenue $144.3 Volume 28.1 Pricing/Mix 2.0 Acquisitions - Currency Translation - 2017 Revenue $174.4 • Sales volume increased in both steel and concrete in North America. Higher cost of steel also partially contributed to increase in sales. • Operating i
Slide 8: Coatings
Coatings $ in millions 2016 Revenue $58.8 Volume (4.0) Pricing/Mix 4.1 Acquisitions - Currency Translation 0.4 2017 Revenue $59.3 • Lower external sales volumes were primarily attributed to the solar/alternative energy customer base. • Greater sales mix of intercompany volumes • Lower operating inco
Slide 9: Energy and Mining
Energy and Mining $ in millions 2016 Revenue $70.8 Volume 5.1 Pricing/Mix 1.3 Acquisitions - Currency Translation 0.8 2017 Revenue $78.0 • Access Systems and Grinding Media sales increased; rising iron ore prices a favorable driver • Offshore wind energy demand solid with increased sales volumes • O
Slide 10: Irrigation
Irrigation $ in millions 2016 Revenue $156.7 Volume 5.6 Pricing/Mix (1.6) Acquisitions - Currency Translation 4.7 2017 Revenue $165.4 • International markets benefit from stronger Latin American demand • North America sales increased slightly in Q1 2017 as compared to 2016 • Industry pricing conditi
Slide 11: Free Cash Flow and Conversion – 2017 & 2016
Free Cash Flow and Conversion – 2017 & 2016 Stated Goal – 1.0X Dollars in Millions 2017 2016 Operating Cash Flow $36.0 $80.5 CapEx (14.2) (14.0) Free Cash Flows $21.8 $66.5 Net Earnings $39.0 $33.0 Free Cash Flows to Net Earnings 0.6 2.0 • Investment in working capital arising from increase in sales
Slide 12: Balance Sheet – 1Q 2017
Balance Sheet – 1Q 2017 Goal: Maintain Investment-grade rating; Keep Debt/EBITDA from 1.5 to 2.5x 1Q 2017 Actual Credit Rating Free Cash Flow $22M YTD S&P BBB+ Negative Cash At 4/1/2017 $425M ($327 Ex. US) Moody’s Baa3 Stable Total Debt $757M Debt Maturities – in Millions Debt/Adjusted 2.29X Adjuste
Slide 13: Calculation of Adjusted EBITDA & Leverage Ratio
Valmont – Calculation of Adjusted EBITDA & Leverage Ratio TTM 1 4/1/2017 Net earnings attributable to Valmont Industries, Inc. $179,242 Interest expense 42,386 Income tax expense 41,156 Depreciation and amortization expense 82,645 EBITDA 345,429 Reversal of contingent liability (16,591) Impairment o