ATKR
$25.99
Atkore International Group
$.63
2.48%
Earnings Details
Quarter March 2020
Tuesday, May 5, 2020 6:15:00 AM
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Summary

Atkore International Group (ATKR) Recent Earnings

Atkore International Group (ATKR) reported Quarter March 2020 earnings of $0.80 per share on revenue of $455.7 million.. Revenue fell 2.9% compared to the same quarter a year ago.

Results
Reported Earnings
$0.80
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$455.7 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Atkore International Group Inc. Announces Second Quarter 2020 Results

  • Diluted earnings per share increased by $0.19 to $0.80; Adjusted net income per diluted share increased by $0.16 to $0.99
  • Net income increased by $9.6 million, or 32.6%, to $39.2 million; Adjusted EBITDA increased by $9.9 million, or 12.9%, to $87.0 million
  • Full-year Net Sales, Adjusted EBITDA and Adjusted net income per diluted shared expected to be down 10% - 15% compared to prior year

HARVEY, Ill.--(BUSINESS WIRE)--Atkore International Group Inc. (the "Company" or "Atkore") (NYSE: ATKR) announced earnings for its fiscal 2020 second quarter ended March 27, 2020.

“I’m pleased to announce Atkore delivered strong second quarter results with net income up 32.6% compared to the prior year,” commented Bill Waltz, Atkore President and Chief Executive Officer. “Our team’s strong operational focus combined with our commitment to teamwork and collaboration enabled the strong earnings growth this quarter."

Waltz continued, “Despite recent market disruptions caused by the COVID-19 pandemic, our team remains focused on ensuring we continue to meet our responsibilities in serving critical infrastructure sectors during this difficult time.

To continue meeting these commitments, Atkore has implemented protocols to enhance the safety of our employees, including daily temperature screenings, social-distancing rules in the plants and warehouses, working remotely whenever possible, enhanced cleaning procedures and increased personal protective equipment measures.

Our adherence to safety, first and foremost, combined with reliance on the Atkore Business System and strong financial management will help us effectively manage through this challenging period of global uncertainty and enable us to continue meeting customers’ needs and driving shareholder value."

2020 Second Quarter Results

 

 

 

Three months ended

(in thousands)

 

 

March 27, 2020

 

March 29, 2019

 

Change

 

% Change

Net sales

 

 

 

 

 

 

 

 

Electrical Raceway

 

$

339,705

 

 

$

353,514

 

 

$

(13,809

)

 

(3.9

)%

Mechanical Products & Solutions

 

116,649

 

 

116,190

 

 

459

 

 

0.4

%

Eliminations

 

(700

)

 

(395

)

 

(305

)

 

77.2

%

Consolidated operations

 

$

455,654

 

 

$

469,309

 

 

$

(13,655

)

 

(2.9

)%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Electrical Raceway

 

$

78,954

 

 

$

67,375

 

 

$

11,579

 

 

17.2

%

Mechanical Products & Solutions

 

16,144

 

 

17,421

 

 

(1,277

)

 

(7.3

)%

Unallocated

 

(8,092

)

 

(7,702

)

 

(390

)

 

5.1

%

Consolidated operations

 

$

87,006

 

 

$

77,094

 

 

$

9,912

 

 

12.9

%

Net sales decreased by $13.7 million, or 2.9%, to $455.7 million for the three months ended March 27, 2020, compared to $469.3 million for the three months ended March 29, 2019. The decrease is primarily attributed to $18.6 million of lower average selling prices resulting from lower commodity input costs of steel and resin. Additionally, net sales decreased by $3.6 million due to lower volume, primarily in the armored cable and fittings product category sold within the Electrical Raceway segment, partially offset by higher volume in the mechanical pipe product category sold within the Mechanical Products & Solutions segment. The decrease in net sales was partially offset by increased sales of $10.6 million from the acquisition of the assets of United Structural Products, LLC. ("US Tray") and Rocky Mountain Pipe ("Cor-Tek") and the acquisition of Flytec Systems Ltd. and its parent holding company, Modern Associates Ltd., in fiscal 2019 (together, the "2019 acquisitions").

Gross profit increased by $14.5 million, or 12.4%, to $131.6 million for the three months ended March 27, 2020, as compared to $117.1 million for the prior-year period. Gross margin increased to 28.9% for the three months ended March 27, 2020, as compared to 24.9% for the prior-year period. Gross margin increased primarily due to the benefits from lower material costs and operational efficiencies.

Net income increased by $9.6 million, or 32.6%, to $39.2 million for the three months ended March 27, 2020 compared to $29.6 million for the prior-year period primarily due to higher gross profit and lower interest expense.

Adjusted EBITDA increased by $9.9 million, or 12.9%, to $87.0 million for the three months ended March 27, 2020 compared to $77.1 million for the three months ended March 29, 2019. The increase was primarily due to higher gross profit.

Diluted earnings per share prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") was $0.80 for the three months ended March 27, 2020, as compared to $0.61 in the prior-year period. Adjusted net income per diluted share increased by $0.16 to $0.99 for the three months ended March 27, 2020, as compared to $0.83 in the prior year period. The increase in diluted earnings per share and adjusted net income per share is primarily attributed to higher gross profit and lower interest expense.

Segment Results

Electrical Raceway

Net sales decreased by $13.8 million, or 3.9%, to $339.7 million for the three months ended March 27, 2020 compared to $353.5 million for the three months ended March 29, 2019. The decrease in net sales is primarily driven by $13.5 million in lower volume, primarily in the armored cable and fitting product category, and lower average selling prices resulting from lower commodity input costs of steel and resin of $9.4 million. The decrease in net sales was partially offset by the 2019 acquisitions, which contributed $10.6 million in sales for the three months ended March 27, 2020.

Adjusted EBITDA for the three months ended March 27, 2020 increased by $11.6 million, or 17.2%, to $79.0 million from $67.4 million for the three months ended March 29, 2019. Adjusted EBITDA margins increased to 23.2% for the three months ended March 27, 2020 compared to 19.1% for the three months ended March 29, 2019. The increase in Adjusted EBITDA was largely due to the benefit of lower material costs, operational efficiencies, and the contributions from the 2019 acquisitions.

Mechanical Products & Solutions ("MP&S")

Net sales increased by $0.5 million, or 0.4%, for the three months ended March 27, 2020 to $116.6 million compared to $116.2 million for the three months ended March 29, 2019. The increase is primarily attributed to higher volume of $9.8 million primarily in the mechanical pipe product category, partially offset by the pass-through impact of lower average input costs of steel products of $9.2 million.

Adjusted EBITDA decreased by $1.3 million, or 7.3%, to $16.1 million for the three months ended March 27, 2020 compared to $17.4 million for the three months ended March 29, 2019. Adjusted EBITDA margins decreased to 13.8% for the three months ended March 27, 2020 compared to 15.0% for the three months ended March 29, 2019. The Adjusted EBITDA decrease is primarily due to additional costs related to equipment maintenance at one of our facilities in the current period.

Full-Year 2020 Outlook

The Company is currently estimating fiscal year 2020 Net Sales, Adjusted EBITDA and Adjusted net income per diluted share to be down in the range of 10% - 15% compared to fiscal year 2019.

Reconciliations of the forward-looking full-year 2020 outlook for Adjusted EBITDA and Adjusted net income per diluted share are not being provided as the Company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliations.

Conference Call Information

Atkore management will host a conference call today, May 5, 2020, at 8 a.m. Eastern time, to discuss the Company's financial results. The conference call may be accessed by dialing (877) 407-0789 (domestic) or (201) 689-8562 (international). The call will be available for replay until May 19, 2020. The replay can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13701559.

Interested investors and other parties can also listen to a webcast of the live conference call by logging onto the Investor Relations section of the Company's website at http://investors.atkore.com. The online replay will be available on the same website immediately following the call.

To learn more about the Company, please visit the company's website at http://investors.atkore.com.

About Atkore International Group Inc.

Atkore International Group Inc. is a leading manufacturer of Electrical Raceway products primarily for the non-residential construction and renovation markets and Mechanical Products & Solutions for the construction and industrial markets. The Company manufactures a broad range of end-to-end integrated products and solutions that are critical to its customers’ businesses and employs approximately 3,900 people at 65 manufacturing and distribution facilities worldwide. The Company is headquartered in Harvey, Illinois.

Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Forward-looking statements include, but are not limited to, statements relating to financial outlook. Some of the forward-looking statements can be identified by the use of forward-looking terms such as "believes," "expects," "may," "will," "shall," "should," "would," "could," "seeks," "aims," "projects," "is optimistic," "intends," "plans," "estimates," "anticipates" or other comparable terms. Forward-looking statements include, without limitation, all matters that are not historical facts. Forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. We caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. In addition, even if our results of operations, financial condition and cash flows, and the development of the market in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods.

A number of important factors, including, without limitation, the risks and uncertainties discussed or referenced under the caption "Risk Factors" in our Annual Report on Form 10-K, filed with the U.S. Securities and Exchange Commission ("SEC") on November 22, 2019 could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. Additional factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: declines in, and uncertainty regarding, the general business and economic conditions in the United States and international markets in which we operate; weakness or another downturn in the United States non-residential construction industry; changes in prices of raw materials; pricing pressure, reduced profitability, or loss of market share due to intense competition; availability and cost of third-party freight carriers and energy; high levels of imports of products similar to those manufactured by us; changes in federal, state, local and international governmental regulations and trade policies; changes in foreign laws and legal systems, including as a result of Brexit; recent and future changes to tax legislation; adverse weather conditions; failure to generate sufficient cash flow from operations or to raise sufficient funds in the capital markets to satisfy existing obligations and support the development of our business; increased costs relating to future capital and operating expenditures to maintain compliance with environmental, health and safety laws; reduced spending by, deterioration in the financial condition of, or other adverse developments with respect to, one or more of our top customers; increases in our working capital needs, which are substantial and fluctuate based on economic activity and the market prices for our main raw materials, including as a result of failure to collect, or delays in the collection of, cash from the sale of manufactured products; work stoppage or other interruptions of production at our facilities as a result of disputes under existing collective bargaining agreements with labor unions or in connection with negotiations of new collective bargaining agreements, as a result of supplier financial distress, or for other reasons; challenges attracting and retaining key personnel or high-quality employees; changes in our financial obligations relating to pension plans that we maintain in the United States; reduced production or distribution capacity due to interruptions in the operations of our facilities or those of our key suppliers; loss of a substantial number of our third-party agents or distributors or a dramatic deviation from the amount of sales they generate; security threats, attacks, or other disruptions to our information systems, or failure to comply with complex network security, data privacy and other legal obligations or the failure to protect sensitive information; possible impairment of goodwill or other long-lived assets as a result of future triggering events, such as declines in our cash flow projections or customer demand and changes in our business and valuation assumptions; safety and labor risks associated with the manufacture and in the testing of our products; product liability, construction defect and warranty claims and litigation relating to our various products, as well as government inquiries and investigations, and consumer, employment, tort and other legal proceedings; our ability to protect our intellectual property and other material proprietary rights; risks inherent in doing business internationally; our inability to introduce new products effectively or implement our innovation strategies; the inability of our customers to pay off the credit lines extended to them by us in a timely manner and the negative impact on customer relations resulting from our collections efforts with respect to non-paying or slow-paying customers; our inability to continue importing raw materials, component parts and/or finished goods; the incurrence of liabilities and the issuance of additional debt or equity in connection with acquisitions, joint ventures or divestitures and the failure of indemnification provisions in our acquisition agreements to fully protect us from unexpected liabilities; failure to manage acquisitions successfully, including identifying, evaluating, and valuing acquisition targets and integrating acquired companies, businesses or assets; the incurrence of liabilities in connection with violations of the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws; the incurrence of additional expenses, increase in complexity of our supply chain and potential damage to our reputation with customers resulting from regulations related to "conflict minerals"; widespread outbreak of diseases, such as the recent novel coronavirus (COVID-19) pandemic; disruptions or impediments to the receipt of sufficient raw materials resulting from various anti-terrorism security measures; restrictions contained in our debt agreements; failure to generate cash sufficient to pay the principal of, interest on, or other amounts due on our debt; and other factors described from time to time in documents that we file with the SEC. The Company assumes no obligation to update the information contained herein, which speaks only as of the date hereof.

Non-GAAP Financial Information

This press release includes certain financial information, not prepared in accordance with Generally Accepted Accounting Principles in the United States ("GAAP"). Because not all companies calculate non-GAAP financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. Further, these measures should not be considered substitutes for the performance measures derived in accordance with GAAP. See non-GAAP reconciliations below in this press release for a reconciliation of these measures to the most directly comparable GAAP financial measures.

Adjusted EBITDA and Adjusted EBITDA Margin

We use Adjusted EBITDA and Adjusted EBITDA Margin in evaluating the performance of our business and in the preparation of our annual operating budgets as indicators of business performance and profitability. We believe Adjusted EBITDA and Adjusted EBITDA Margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance.

We define Adjusted EBITDA as net income (loss) before: depreciation and amortization, interest expense, net, income tax expense (benefit), restructuring charges, stock-based compensation, certain legal matters, transaction costs, gain on purchase of a business and other items, such as inventory reserves and adjustments, and realized or unrealized gain (loss) on foreign currency transactions, loss on disposal of property, pant and equipment, insurance recovery related to damages of property, plant and equipment and release of certain indemnified uncertain tax positions. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Net sales.

We believe Adjusted EBITDA and Adjusted EBITDA Margin, when presented in conjunction with comparable accounting principles generally accepted in the United States of America ("GAAP") measures, are useful for investors because management uses Adjusted EBITDA and Adjusted EBITDA Margin in evaluating the performance of our business.

Adjusted Net Income and Adjusted Net Income per Share

We use Adjusted net income and Adjusted net income per share in evaluating the performance of our business and profitability. Management believes that these measures provide useful information to investors by offering additional ways of viewing the Company's results that, when reconciled to the corresponding GAAP measure provide an indication of performance and profitability excluding the impact of unusual and or non-cash items. We define Adjusted net income as net income before stock-based compensation, intangible asset amortization, certain legal matters and other items, and the income tax expense or benefit on the foregoing adjustments that are subject to income tax. We define Adjusted net income per share as basic and diluted earnings per share excluding the per share impact of stock-based compensation, intangible asset amortization, certain legal matters and other items, and the income tax expense or benefit on the foregoing adjustments that are subject to income tax.

Leverage Ratio - Net debt/Adjusted EBITDA

We define leverage ratio as the ratio of net debt (total debt less cash and cash equivalents) to Adjusted EBITDA on a trailing twelve-month ("TTM") basis. We believe the leverage ratio is useful to investors as an alternative liquidity measure.

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three months ended

 

Six months ended

(in thousands, except per share data)

 

March 27, 2020

 

March 29, 2019

 

March 27, 2020

 

March 29, 2019

Net sales

 

$

455,654

 

 

$

469,309

 

 

$

903,102

 

 

$

921,337

 

Cost of sales

 

324,051

 

 

352,221

 

 

654,655

 

 

693,993

 

Gross profit

 

131,603

 

 

117,088

 

 

248,447

 

 

227,344

 

Selling, general and administrative

 

62,360

 

 

56,350

 

 

118,575

 

 

112,729

 

Intangible asset amortization

 

8,071

 

 

8,196

 

 

16,184

 

 

16,410

 

Operating income

 

61,172

 

 

52,542

 

 

113,688

 

 

98,205

 

Interest expense, net

 

10,564

 

 

13,328

 

 

21,184

 

 

25,488

 

Other income, net

 

(1,685

)

 

(594

)

 

(1,919

)

 

(2,194

)

Income before income taxes

 

52,293

 

 

39,808

 

 

94,423

 

 

74,911

 

Income tax expense

 

13,100

 

 

10,253

 

 

20,440

 

 

18,407

 

Net income

 

$

39,193

 

 

$

29,555

 

 

$

73,983

 

 

$

56,504

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

0.81

 

 

$

0.62

 

 

$

1.53

 

 

$

1.18

 

Diluted

 

$

0.80

 

 

$

0.61

 

 

$

1.50

 

 

$

1.15

 

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands, except share and per share data)

 

March 27, 2020

 

September 30, 2019

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

137,202

 

 

$

123,415

 

Accounts receivable, less allowance for doubtful accounts of $3,410 and $2,608, respectively

 

305,617

 

 

315,353

 

Inventories, net

 

246,235

 

 

226,090

 

Prepaid expenses and other current assets

 

54,083

 

 

34,679

 

Total current assets

 

743,137

 

 

699,537

 

Property, plant and equipment, net

 

246,304

 

 

260,703

 

Intangible assets, net

 

269,882

 

 

285,684

 

Goodwill

 

186,779

 

 

186,231

 

Right-of-use assets, net

 

41,629

 

 

 

Deferred tax assets

 

1,016

 

 

577

 

Other long-term assets

 

4,820

 

 

4,263

 

Total Assets

 

$

1,493,567

 

 

$

1,436,995

 

Liabilities and Equity

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

$

128,173

 

 

$

150,681

 

Income tax payable

 

2,690

 

 

2,157

 

Accrued compensation and employee benefits

 

23,981

 

 

35,770

 

Customer liabilities

 

39,307

 

 

44,983

 

Lease obligations

 

12,048

 

 

 

Other current liabilities

 

48,911

 

 

53,943

 

Total current liabilities

 

255,110

 

 

287,534

 

Long-term debt

 

845,694

 

 

845,317

 

Long-term lease obligations

 

30,411

 

 

 

Deferred tax liabilities

 

21,336

 

 

19,986

 

Other long-term tax liabilities

 

740

 

 

3,669

 

Pension liabilities

 

32,520

 

 

34,509

 

Other long-term liabilities

 

12,322

 

 

13,044

 

Total Liabilities

 

1,198,133

 

 

1,204,059

 

Equity:

 

 

 

 

Common stock, $0.01 par value, 1,000,000,000 shares authorized, 47,175,927 and 46,955,163 shares issued and outstanding, respectively

 

473

 

 

471

 

Treasury stock, held at cost, 260,900 and 260,900 shares, respectively

 

(2,580

)

 

(2,580

)

Additional paid-in capital

 

482,399

 

 

477,139

 

Accumulated deficit

 

(142,473

)

 

(200,396

)

Accumulated other comprehensive loss

 

(42,385

)

 

(41,698

)

Total Equity

 

295,434

 

 

232,936

 

Total Liabilities and Equity

 

$

1,493,567

 

 

$

1,436,995

 

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Six months ended

(in thousands)

 

March 27, 2020

 

March 29, 2019

Operating activities:

 

 

 

 

Net income

 

$

73,983

 

 

$

56,504

 

Adjustments to reconcile net income to net cash provided by operating activities:

 

 

 

 

Depreciation and amortization

 

37,208

 

 

36,301

 

Deferred income taxes

 

1,036

 

 

(1,101

)

Stock-based compensation

 

7,646

 

 

4,816

 

Amortization of right-of-use assets

 

7,384

 

 

 

Loss on disposal of property, plant and equipment

 

4,560

 

 

 

Other adjustments to net income

 

2,672

 

 

3,046

 

Changes in operating assets and liabilities, net of effects from acquisitions

 

 

 

 

Accounts receivable

 

7,757

 

 

(4,839

)

Inventories

 

(22,719

)

 

8,540

 

Accounts payable

 

(18,856

)

 

(19,135

)

Other, net

 

(51,387

)

 

(41,343

)

Net cash provided by operating activities

 

49,284

 

 

42,789

 

Investing activities:

 

 

 

 

Capital expenditures

 

(17,139

)

 

(14,712

)

Acquisition of businesses, net of cash acquired

 

 

 

(57,899

)

Other, net

 

30

 

 

(194

)

Net cash used in investing activities

 

(17,109

)

 

(72,805

)

Financing activities:

 

 

 

 

Borrowings under credit facility

 

 

 

17,000

 

Repayments under credit facility

 

 

 

(17,000

)

Repayments of short-term debt

 

 

 

(20,980

)

Issuance of common stock

 

(2,380

)

 

1,291

 

Repurchase of common stock

 

(15,011

)

 

(24,419

)

Other, net

 

(30

)

 

(677

)

Net cash used for financing activities

 

(17,421

)

 

(44,785

)

Effects of foreign exchange rate changes on cash and cash equivalents

 

(967

)

 

(363

)

Increase (decrease) in cash and cash equivalents

 

13,787

 

 

(75,164

)

Cash and cash equivalents at beginning of period

 

123,415

 

 

126,662

 

Cash and cash equivalents at end of period

 

$

137,202

 

 

$

51,498

 

Supplementary Cash Flow information

 

 

 

 

Capital expenditures, not yet paid

 

$

713

 

 

$

626

 

ATKORE INTERNATIONAL GROUP INC.

ADJUSTED EBITDA

 

The following table presents reconciliations of Adjusted EBITDA to net income for the periods presented:

 

 

 

Three months ended

 

Six months ended

(in thousands)

 

March 27,

2020

 

March 29,

2019

 

March 27,

2020

 

March 29,

2019

Net income

 

$

39,193

 

 

$

29,555

 

 

$

73,983

 

 

$

56,504

 

Interest expense, net

 

10,564

 

 

13,328

 

 

21,184

 

 

25,488

 

Income tax expense

 

13,100

 

 

10,253

 

 

20,440

 

 

18,407

 

Depreciation and amortization

 

18,478

 

 

18,280

 

 

37,208

 

 

36,301

 

Restructuring charges

 

2,645

 

 

1,085

 

 

2,865

 

 

2,472

 

Stock-based compensation

 

4,523

 

 

1,834

 

 

7,646

 

 

4,816

 

Transaction costs

 

6

 

 

123

 

 

57

 

 

287

 

Other (a)

 

(1,503

)

 

2,636

 

 

1,333

 

 

2,842

 

Adjusted EBITDA

 

$

87,006

 

 

$

77,094

 

 

$

164,716

 

 

$

147,117

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, realized or unrealized gain (loss) on foreign currency transactions, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment and release of certain indemnified uncertain tax positions.

ATKORE INTERNATIONAL GROUP INC.

SEGMENT INFORMATION

 

The following tables represent reconciliations of Net sales and calculations of Adjusted EBITDA Margin by segment for the periods presented:

 

 

 

Three months ended

 

 

March 27, 2020

 

March 29, 2019

(in thousands)

 

Net sales

 

Adjusted

EBITDA

 

Adjusted

EBITDA

Margin

 

Net sales

 

Adjusted

EBITDA

 

Adjusted

EBITDA

Margin

Electrical Raceway

 

$

339,705

 

 

$

78,954

 

 

23.2

%

 

$

353,514

 

 

$

67,375

 

 

19.1

%

Mechanical Products & Solutions

 

116,649

 

 

16,144

 

 

13.8

%

 

116,190

 

 

17,421

 

 

15.0

%

Eliminations

 

(700

)

 

 

 

 

 

(395

)

 

 

 

 

Consolidated operations

 

$

455,654

 

 

 

 

 

 

$

469,309

 

 

 

 

 

 

 

Six months ended

 

 

March 27, 2020

 

March 29, 2019

(in thousands)

 

Net sales

 

Adjusted

EBITDA

 

Adjusted

EBITDA

Margin

 

Net sales

 

Adjusted

EBITDA

 

Adjusted

EBITDA

Margin

Electrical Raceway

 

$

681,081

 

 

$

149,175

 

 

21.9

%

 

$

696,920

 

 

$

135,864

 

 

19.5

%

Mechanical Products & Solutions

 

223,309

 

 

32,798

 

 

14.7

%

 

225,003

 

 

28,308

 

 

12.6

%

Eliminations

 

(1,288

)

 

 

 

 

 

(586

)

 

 

 

 

Consolidated operations

 

$

903,102

 

 

 

 

 

 

$

921,337

 

 

 

 

 

ATKORE INTERNATIONAL GROUP INC.

ADJUSTED NET INCOME PER SHARE

 

The following table presents reconciliations of Adjusted net income to net income for the periods presented:

 

 

 

Three months ended

 

Six months ended

(in thousands, except per share data)

 

March 27,

2020

 

March 29,

2019

 

March 27,

2020

 

March 29,

2019

Net income

 

$

39,193

 

 

$

29,555

 

 

$

73,983

 

 

$

56,504

 

Stock-based compensation

 

4,523

 

 

1,834

 

 

7,646

 

 

4,816

 

Intangible asset amortization

 

8,071

 

 

8,196

 

 

16,184

 

 

16,410

 

Other (a)

 

(1,503

)

 

2,636

 

 

1,333

 

 

2,842

 

Pre-tax adjustments to net income

 

11,091

 

 

12,666

 

 

25,163

 

 

24,068

 

Tax effect

 

(2,773

)

 

(3,103

)

 

(6,291

)

 

(5,897

)

Adjusted net income

 

$

47,511

 

 

$

39,118

 

 

$

92,855

 

 

$

74,675

 

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares outstanding

 

48,095

 

 

47,369

 

 

48,229

 

 

47,817

 

Net income per diluted share

 

$

0.80

 

 

$

0.61

 

 

$

1.50

 

 

$

1.15

 

Adjusted net income per diluted share

 

$

0.99

 

 

$

0.83

 

 

$

1.93

 

 

$

1.56

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, realized or unrealized gain (loss) on foreign currency transactions, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment and release of certain indemnified uncertain tax positions.

ATKORE INTERNATIONAL GROUP INC.

LEVERAGE RATIO

 

The following table presents reconciliations of Net debt to Total debt for the periods presented:

 

($ in thousands)

March 27,

2020

 

December 27,

2019

 

September 30,

2019

 

June 28,

2019

 

March 29,

2019

 

December 28,

2018

 

Short-term debt and current maturities of long-term debt

$

 

 

$

 

 

$

 

 

$

 

 

$

 

 

$

26,561

 

 

Long-term debt

845,694

 

 

845,243

 

 

845,317

 

 

884,503

 

 

884,095

 

 

878,094

 

 

Total debt

845,694

 

 

845,243

 

 

845,317

 

 

884,503

 

 

884,095

 

 

904,655

 

 

Less cash and cash equivalents

137,202

 

 

164,135

 

 

$

123,415

 

 

100,734

 

 

51,498

 

 

75,919

 

 

Net debt

$

708,492

 

 

$

681,108

 

 

$

721,902

 

 

$

783,769

 

 

$

832,597

 

 

$

828,736

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TTM Adjusted EBITDA (a)

$

342,007

 

 

$

332,095

 

 

$

324,408

 

 

$

306,656

 

 

$

294,839

 

 

$

283,086

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt/TTM Adjusted EBITDA

2.5

 

x

2.5

 

x

2.6

 

x

2.9

 

x

3.0

 

x

3.2

 

x

Net debt/TTM Adjusted EBITDA

2.1

 

x

2.1

 

x

2.2

 

x

2.6

 

x

2.8

 

x

2.9

 

x

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) TTM Adjusted EBITDA is equal to the sum of Adjusted EBITDA for the trailing four quarter period. The reconciliation of Adjusted EBITDA for the quarter ended December 27, 2019 can be found in Exhibit 99.1 to form 8-K filed February 4, 2020 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended June 28, 2019 can be found in Exhibit 99.1 to form 8-K filed August 7, 2019 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended March 29, 2019 can be found in Exhibit 99.1 to form 8-K filed May 7, 2019 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended December 28, 2018 can be found in Exhibit 99.1 to form 8-K filed February 6, 2019 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the year ended September 30, 2019 can be found in Exhibit 99.1 to form 8-K filed November 22, 2019 and is incorporated by reference herein.

 

ATKORE INTERNATIONAL GROUP INC.

TRAILING TWELVE MONTHS ADJUSTED EBITDA

 

The following table presents a reconciliation of Adjusted EBITDA for the trailing twelve months ended March 27, 2020:

 

 

TTM

 

Three months ended

(in thousands)

March 27,

2020

 

March 27,

2020

 

December 27,

2019

 

September 30,

2019

 

June 28,

2019

Net income

$

156,530

 

 

$

39,193

 

 

$

34,790

 

 

$

45,997

 

 

$

36,550

 

Interest expense, net

46,169

 

 

10,564

 

 

10,620

 

 

$

12,196

 

 

12,789

 

Income tax expense

47,651

 

 

13,100

 

 

7,340

 

 

$

16,105

 

 

11,106

 

Depreciation and amortization

73,254

 

 

18,478

 

 

18,730

 

 

$

18,286

 

 

17,760

 

Restructuring charges

4,197

 

 

2,645

 

 

220

 

 

$

623

 

 

709

 

Stock-based compensation

14,628

 

 

4,523

 

 

3,123

 

 

$

2,862

 

 

4,120

 

Transaction costs

970

 

 

6

 

 

51

 

 

$

837

 

 

76

 

Gain on purchase of a business

(7,384

)

 

 

 

 

 

$

(7,384

)

 

 

Other(a)

5,992

 

 

(1,503

)

 

2,836

 

 

$

(712

)

 

5,371

 

Adjusted EBITDA

$

342,007

 

 

$

87,006

 

 

$

77,710

 

 

$

88,810

 

 

$

88,481

 

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, realized or unrealized gain (loss) on foreign currency transactions, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment and release of certain indemnified uncertain tax positions.

 

John Deitzer
Vice President - Investor Relations
708-225-2124
jdeitzer@atkore.com

Source: Atkore International Group Inc.