Atkore Inc. · NYSE:ATKR
Atkore — Q3 2017 Earnings Presentation
15 slides from Atkore's earnings presentation, Aug 8, 2017
Slide 1: Third Quarter 2017 Earnings Presentation
Third Quarter 2017 Earnings Presentation August 8, 2017
Slide 2: Cautionary statements
Cautionary statements This presentation contains forward-looking statements that are subject to known and unknown risks and uncertainties, many of which are beyond our control. All statements other than statements of historical fact included in this presentation are forward-looking statements. Forwa
Slide 3: Financial Highlights – Q3 2017
Financial Highlights – Q3 2017 Q3 Performance in line with our guidance Q3 Q3 Y/Y Market remained consistent with prior quarters; ($’s in millions) 2017 2016 Change Forward indicators point to improvement over Net Sales $397.7 $395.7 0.5% medium term Net Income $27.5 $20.6 33.0% Passing through YTD
Slide 4: U.S. Construction Market
U.S. Construction Market US Nonresidential building construction starts (millions of square feet ) Prior Actual and Projected Business Prior peak Trough 45-year average Today Year Volumes linked to Market Activity 1,666 1,275 Key markets that drive Atkore volume 1,047 1,031 • 60% US Nonresidential C
Slide 5: Electrical Raceway Segment – Q3 Highlights
Electrical Raceway Segment – Q3 Highlights Non-Residential Construction Activity Improving Slower than Q3 Q3 Y/Y Expected ($’s in millions) 2017 2016 Change Average selling prices up 6% from pass Net Sales $266.3 $259.8 2.5% through of material costs Adjusted EBITDA $48.0 $52.4 (8.4%) Adjusted EBITD
Slide 6: Mechanical Products & Solutions Segment Highlights
Mechanical Products & Solutions Segment Highlights Acquisitions Completed to Q3 Q3 Y/Y Strengthen UK Portfolio and 2017 2016 Change ($’s in millions) Razor Wire Capacity Net Sales $131.7 $136.5 (3.5%) Price up 6% due to pass through of material cost increases and initiatives Adjusted EBITDA $19.0 $2
Slide 7: Key Balance Sheet and Cash Flow Metrics
Key Balance Sheet and Cash Flow Metrics Metrics Leverage Ratio (1) ($mm) 6/30/2017 Cash and cash equivalents $96.2 5.2x Total Debt $492.1 3.5x CapEx $15.3 Net cash from operating activities $65.8 1.8x 1.7x TTM Adjusted EBITDA(1) $229.4 Leverage Ratio (1) FY 2014 FY 2015 FY 2016 TTM 6/30/17 Total deb
Slide 8: 2017 Financial Outlook Summary
2017 Financial Outlook Summary Prior Outlook Updated Outlook Electrical Raceway Volume (2) to 2% ~(4)% Segment Adjusted EBITDA* $182 - $190mm $177 - $182mm Volume (4) to 0% ~(9)% Mechanical Products & Solutions Segment Adjusted EBITDA* $80 - $85mm $70 - $76mm Adjusted EBITDA* $235 - $245mm $220 - $2
Slide 9: Key Takeaways
Key Takeaways Q3 Performance in line with our guidance • Current market not improving as fast as expected, macro drivers suggest low single digit growth in 2018 • M&A funnel and activity is gaining momentum • Focus on the Atkore Business System and self-help/productivity initiatives will continue to
Slide 10: Appendix
atkore Appendix yf INTERNATIONAL ——
Slide 11: Segment Information
Segment Information Three Months Ended June 30, 2017 June 24, 2016 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 266,275 $ 48,026 18.0 % $ 259,826 $ 52,438 20.2 % Mechanical Products & Solutions 131,679 $ 18,986
Slide 12: Adjusted earnings per share reconciliation
Adjusted earnings per share reconciliation Consolidated Atkore International Group Inc. Three Months Ended Nine months ended (in thousands, except per share data) June 30, 2017 June 24, 2016 June 30, 2017 June 24, 2016 Net income $ 27,465 $ 20,645 $ 63,782 $ 43,224 Stock-based compensation 3,064 4,8
Slide 13: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. Three Months Ended Nine months ended (in thousands) June 30, 2017 June 24, 2016 June 30, 2017 June 24, 2016 Net income $ 27,465 $ 20,645 $ 63,782 $ 43,224 Interest expense, net 5,811 10,169 20,872 30,617 Income
Slide 14: Net debt / Adjusted EBITDA reconciliation
Net debt / Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. September 30, September 25, September 26, ($ in thousands) June 30, 2017 2016 2015 2014 Short-term debt and current maturities of long-term debt $ 4,215 $ 1,267 $ 2,864 $ 42,887 Long-term debt 487,921 629,046 649,
Slide 15: Net Income to Adjusted EBITDA reconciliation
Net Income to Adjusted EBITDA reconciliation Consolidated Atkore International Group Inc. TTM Three Months Ended December 30, September 30, (in thousands) June 30, 2017 June 30, 2017 March 31, 2017 2016 2016 Net income $ 79,354 $ 27,465 $ 18,935 $ 17,382 $ 15,572 Interest expense, net 32,053 5,811 5