Atkore Inc. · NYSE:ATKR
Atkore — Investor Presentation (December 2020)
24 slides from Atkore's investor presentation, December 2020
Slide 1: Investor Presentation & Company Overview
Investor Presentation & Company Overview December 2020 1
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: Atkore: a Compelling Investment
Atkore: a Compelling Investment A values-based organization with a focus on continuous improvement driven by the Atkore Business System Strong track record of earnings growth, increasing free cash flow and excellent return on capital With a commitment to quality, delivery and value, we produce infra
Slide 4: Our Foundation is the Atkore Business System
Our Foundation is the Atkore Business System 4
Slide 5: Atkore at a Glance
Atkore at a Glance A leading manufacturer of electrical, mechanical, and safety infrastructure solutions 1959 2016 Harvey, IL ~3,700 65 Founded IPO (NYSE: ATKR) Headquarters Employees Global Facilities FY 2020 Financial Highlights FY 2020 Net Sales Breakdown, $1.8B Change $ Millions (except per shar
Slide 6: FY20 Sales Breakdown by Market
FY20 Sales Breakdown by Market Est. % of Atkore FY20 Net Sales By End Market Category Description Market Review Includes Commercial & Industrial, Institutional Products primarily sold through electrical distribution channel and Infrastructure categories Long-term positive market trends in Data
Slide 7: Our Products Are All Around You Everyday
Our Products Are All Around You Everyday Wire Basket Cable Related Segment Armored Cable Tray & Fittings Electrical Raceway Mechanical Products & Solutions Flexible Electrical Conduit Electrical & Liquidtight Conduit Prefabrication Cable Tray, Industrial Flexible Ladder & Fittings Electrical Conduit
Slide 8: Outstanding Track Record of Growth
Outstanding Track Record of Growth Adjusted EBITDA1, $M Free Cash Flow1, $M Return on Capital1 (ROC), % +15% CAGR +13% CAGR +1,510 bps 324 327 215 17.8 17.0 15.4 272 175 235 228 12.2 140 10.7 114 164 107 97 2.7 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY2015 FY2016 FY2017 FY2018 FY2019 FY2020 FY201
Slide 9: Electrical Raceway Segment
Electrical Raceway Segment: Quick Facts: FY 2020 Key Brands: Net Sales, $M $1,331.3 Adjusted EBITDA, $M $299.5 Adjusted EBITDA Margin, % 22.5% KEY PRODUCT CATEGORIES AND MARKET POSITION Electrical products that deploy, isolate and protect a structure’s electrical circuitry from the original Stainles
Slide 10: Mechanical Products & Solutions Segment
Mechanical Products & Solutions Segment: Quick Facts: FY 2020 Key Brands: Net Sales, $M $436.7 Adjusted EBITDA, $M $61.2 Adjusted EBITDA Margin, % 14.0% KEY PRODUCT CATEGORIES Mechanical products and services that frame, support and secure AND MARKET POSITION component parts in a broad range of stru
Slide 11: Levers to Drive Organic Growth
Levers to Drive Organic Growth Recent Example & Highlights Organic Growth Drivers Commercialized over 30 new products in the past two years Drove mid-single digit % revenue growth in Electrical Global Raceway “Focused Product Categories” in Q4 2020 Category Expansion Digital Expanding global distrib
Slide 12: M&A Strategy Focused on Profitable Growth
M&A Strategy Focused on Profitable Growth Bolt-On Acquisition Playbook Quick Facts: Target Profile Strategy Value Creation Spent over $290 million of cash on Privately held small to Strategic fit from a product Leverage global spend for medium sized businesses or category perspective, or key r
Slide 13: Strong Financial Profile Ready for the Future
Strong Financial Profile Ready for the Future Net Debt to TTM Adjusted EBITDA Debt Structure Debt Structure, $M As of 9/30/20 2.9x 2.8x Cash and Cash Equivalents $284.5 2.6x Senior Secured 1st Term Loan Matures 2023 $803.7 2.2x 2.1x 2.1x 1.9x Total Debt $803.7 1.6x Total Net Debt $519.3 Note: Undraw
Slide 14: Focused on Environment, Social & Governance
Focused on Environment, Social & Governance We seek to utilize sustainable business principles and processes that achieve a balance between profitability and protection of all stakeholders, while reducing our impact on the environment and climate. Our Focus People and Community: We seek to protect p
Slide 15: Stable Business Model Supports Future Growth
Stable Business Model Supports Future Growth Disciplined Operational Focus Driven by the Atkore Business System Not a commodity company; proven track record of Input Cost Management successfully managing input cost changes and value selling Leading market share in key product categories with a Marke
Slide 16: Appendix
A Atkore APPENDIX 16
Slide 17: Segment Information
Segment Information Three months ended September 30, 2020 September 30, 2019 Adjusted Adjusted Adjusted EBITDA Adjusted EBITDA (in thousands) Net sales EBITDA Margin Net sales EBITDA Margin Electrical Raceway $ 364,148 $ 92,855 25.5 % $ 373,344 $ 80,000 21.4 % Mechanical Products & Solutions 113,904
Slide 18: Adjusted Earnings Per Share Reconciliation
Adjusted Earnings Per Share Reconciliation Consolidated Atkore International Group Inc. Three months ended Fiscal Year Ended September 30, September 30, September September (in thousands, except per share data) 2020 2019 30, 2020 30, 2019 Net income $ 54,241 $ 45,997 $ 152,302 $ 139,051 Stock-based
Slide 19: Net Income to Adjusted EBITDA Reconciliation
Net Income to Adjusted EBITDA Reconciliation Consolidated Atkore International Group Inc. Three months ended Fiscal Year Ended September 30, September 30, September 30, September 30, (in thousands) 2020 2019 2020 2019 Net income $ 54,241 $ 45,997 $ 152,302 $ 139,051 Income tax expense 20,584 16,105
Slide 20: Trailing Twelve Month Adjusted EBITDA
Trailing Twelve Month Adjusted EBITDA Consolidated Atkore International Group Inc. TTM Three months ended September September June 26, March 27, December (in thousands) 30, 2020 30, 2020 2020 2020 27, 2019 Net income $ 152,302 $ 54,241 $ 24,078 $ 39,193 $ 34,790 Interest expense, net 40,062 9,457 9,
Slide 21: Net Debt to Total Debt and Leverage Ratio
Net Debt to Total Debt and Leverage Ratio Consolidated Atkore International Group Inc. September 30, March 27, December 27, September 28, March 29, December 28, ($ in thousands) 2020 June 26, 2020 2020 2019 2019 June 28, 2019 2019 2018 Short-term debt and current maturities of long-term debt $ — $ —
Slide 22: Free Cash Flow Reconciliation
Free Cash Flow Reconciliation Consolidated Atkore International Group Inc. Fiscal Year Ended September September September September September September (in thousands) 30, 2020 30, 2019 30, 2018 30, 2017 30, 2016 30, 2015 Net cash provided by operating activities $ 248,762 $ 209,694 $ 145,703 $ 121,
Slide 23: Return on Capital Calculation
Return on Capital Calculation Consolidated Atkore International Group Inc. Fiscal Year Ended September 30, September 30, September 30, September 30, September 30, September 30, (in thousands) 2020 2019 2018 2017 2016 2015 Income (Loss) Before Taxes $ 201,998 $ 184,669 $ 166,352 $ 126,125 $ 86,781 $
Slide 24: Thank You!
Thank You! atkore.com 16100 South Lathrop Avenue, Harvey, IL 60426