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Atkore Inc. Announces Third Quarter 2022 Results

8.2.2022
  • Net sales of $1,061.6 million, up 24.4% versus prior year
  • Net income per diluted share increased by $2.10 versus prior year to $5.74; Adjusted net income per diluted share increased by $2.11 versus prior year to $6.07
  • Net income increased by $79.0 million versus prior year to $254.3 million; Adjusted EBITDA increased by $103.3 million versus prior year to $377.5 million
  • Full-year Net sales expected to be up approximately 32 percent compared to fiscal year 2021
  • Full-year Adjusted EBITDA outlook increased $1,322 - $1,342 million; Full-year Adjusted net income per diluted share outlook increased to $20.89 - $21.24

Atkore Inc. (the “Company” or “Atkore”) (NYSE: ATKR) announced earnings for its fiscal 2022 third quarter ended June 24, 2022.

“Atkore delivered year-over-year earnings growth and margin expansion in both Electrical and Safety & Infrastructure,” said Bill Waltz, Atkore President and Chief Executive Officer. “Our performance demonstrates the strength of the Atkore Business System and our industry-leading solutions, as well as our team’s continued dedication to supporting our customers. We also continued our strong track record of strategically expanding our business in projected high-growth markets by acquiring United Poly Systems to build on our HDPE (high-density polyethylene) conduit portfolio. We are confident that we are well positioned to capitalize on future growth opportunities and deliver excellent service to our customers.”

Waltz continued, “Our strong balance sheet provides us with the flexibility to continue to pursue organic and inorganic growth opportunities while returning capital to shareholders. In addition to United Poly Systems, we acquired a facility in Dallas, Texas that we expect to use to increase our capacity for HDPE conduit and other products, and to build a new regional distribution center that is expected to begin operating in 2024 or 2025. In addition, we have already repurchased $500 million in shares in fiscal 2022 inclusive of repurchases completed so far in the fourth quarter of fiscal year 2022. We are ahead of schedule on our plan announced last November to deploy more than $1 billion over the next two to three years in order to continue to build our leading portfolio, expand in adjacent markets and deliver significant value to shareholders.”

2022 Third Quarter Results

 

 

Three months ended

(in thousands)

 

June 24, 2022

 

June 25, 2021

 

Change

 

% Change

Net sales

 

 

 

 

 

 

 

 

Electrical

 

$

821,566

 

$

661,163

 

$

160,403

 

24.3

%

Safety & Infrastructure

 

 

241,909

 

 

193,492

 

 

48,417

 

25.0

%

Eliminations

 

 

(1,885)

 

 

(997)

 

 

(888)

 

89.1

%

Consolidated operations

 

$

1,061,590

 

$

853,658

 

$

207,932

 

24.4

%

 

 

 

 

 

 

 

 

 

Net income

 

$

254,313

 

$

175,297

 

$

79,016

 

45.1

%

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

Electrical

 

$

351,466

 

$

267,824

 

$

83,642

 

31.2

%

Safety & Infrastructure

 

 

45,669

 

 

22,365

 

 

23,304

 

104.2

%

Unallocated

 

 

(19,605)

 

 

(15,925)

 

 

(3,680)

 

23.1

%

Consolidated operations

 

$

377,530

 

$

274,264

 

$

103,266

 

37.7

%

Net sales increased by $207.9 million, or 24.4%, to $1,061.6 million for the three months ended June 24, 2022, compared to $853.7 million for the three months ended June 25, 2021. The increase in net sales is primarily attributed to increased average selling prices across the Company’s products of $244.0 million which were mostly driven by the PVC pipe and conduit product category within the Electrical segment and increased net sales of $13.8 million from companies acquired during fiscal 2021 and fiscal 2022. These increases are offset by decreased sales volume of $43.9 million across varying product categories within both the Electrical and the Safety & Infrastructure segments. Pricing for PVC products, as well as other parts of the business, is expected to return to more normal historical levels over time, but that time is uncertain.

Gross profit increased by $115.1 million, or 33.9%, to $454.3 million for the three months ended June 24, 2022, as compared to $339.3 million for the prior-year period. Gross margin increased to 42.8% for the three months ended June 24, 2022, as compared to 39.7% for the prior-year period. Gross profit increased primarily due to higher average selling prices of $244.0 million, partially offset by higher input costs of steel, copper and PVC resin of $98.0 million.

Net income increased by $79.0 million, or 45.1%, to $254.3 million for the three months ended June 24, 2022 compared to $175.3 million for the prior-year period primarily due to higher gross profit and lower interest expense, partially offset by higher selling, general and administrative costs, and income tax expense.

Adjusted EBITDA increased by $103.3 million, or 37.7%, to $377.5 million for the three months ended June 24, 2022 compared to $274.3 million for the three months ended June 25, 2021. The increase was primarily due to higher gross profit.

Net income per diluted share prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) was $5.74 for the three months ended June 24, 2022, as compared to $3.64 in the prior-year period. Adjusted net income per diluted share increased by $2.11 to $6.07 for the three months ended June 24, 2022, as compared to $3.96 in the prior year period. The increase in diluted earnings per share and adjusted net income per share is primarily attributed to higher net income.

Segment Results

Electrical

Net sales increased by $160.4 million, or 24.3%, to $821.6 million for the three months ended June 24, 2022 compared to $661.2 million for the three months ended June 25, 2021. The increase in net sales is primarily attributed to increased average selling prices of $200.1 million which were mostly driven by the plastic pipe and conduit product category and increased net sales of $6.9 million from companies acquired during fiscal 2021 and fiscal 2022. These increases are offset by decreased sales volume of $41.2 million across varying product categories. Pricing for PVC products, as well as other parts of the business, is expected to return to more normal historical levels over time, but that time is uncertain.

Adjusted EBITDA for the three months ended June 24, 2022 increased by $83.6 million, or 31.2%, to $351.5 million from $267.8 million for the three months ended June 25, 2021. Adjusted EBITDA margins increased to 42.8% for the three months ended June 24, 2022 compared to 40.5% for the three months ended June 25, 2021. The increase in Adjusted EBITDA and Adjusted EBITDA margins was largely due to higher average selling prices over input costs.

Safety & Infrastructure

Net sales increased by $48.4 million, or 25.0%, for the three months ended June 24, 2022 to $241.9 million compared to $193.5 million for the three months ended June 25, 2021. The increase is primarily attributed to increased average selling prices of $43.9 million driven by higher input costs of steel and increased net sales of $6.9 million from companies acquired during fiscal 2022 partially offset by lower volumes of $2.8 million primarily across various steel product categories.

Adjusted EBITDA increased by $23.3 million, or 104.2%, to $45.7 million for the three months ended June 24, 2022 compared to $22.4 million for the three months ended June 25, 2021. Adjusted EBITDA margins increased to 18.9% for the three months ended June 24, 2022 compared to 11.6% for the three months ended June 25, 2021. The Adjusted EBITDA increase is primarily due to the price increases, partially offset by lower volume, discussed above.

Full-Year Outlook

The Company is updating its outlook for Adjusted EBITDA and Adjusted net income per diluted share for fiscal year 2022. The Company expects Net Sales to be up approximately 32 percent versus fiscal year 2021. The Company expects Adjusted EBITDA to be in the range of $1,322 million to $1,342 million, and Adjusted net income per diluted share to be in the range of $20.89 - $21.24.

The Company also continues to support its perspective on fiscal year 2023 provided previously in May 2022. The Company estimates fiscal year 2023 Adjusted EBITDA to be approximately $800 million to $900 million. The Company notes that this perspective may vary due to changes in assumptions or market conditions and other factors described under “Forward-Looking Statements.”

Reconciliations of the forward-looking full-year 2022 outlook for Adjusted EBITDA and Adjusted net income per diluted share, and perspective for full-year 2023 Adjusted EBITDA 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, August 2, 2022, at 8 a.m. Eastern time, to discuss the Company’s financial results. The conference call may be accessed by dialing (888) 330-2446 (domestic) or (240) 789-2732 (international). The call will be available for replay until August 22, 2022. The replay can be accessed by dialing (800) 770-2030 for domestic callers, or for international callers, (647) 362-9199. The passcode for the live call and the replay is 5592214.

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 https://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 https://investors.atkore.com.

About Atkore Inc.

Atkore is forging a future where our employees, customers, suppliers, shareholders and communities are building better together – a future focused on serving the customer and powering and protecting the world. With a global network of manufacturing and distribution facilities worldwide, Atkore is a leading provider of electrical, safety and infrastructure solutions. To learn more, please visit www.atkore.com.

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 18, 2021 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; widespread outbreak of diseases, such as the novel coronavirus (“COVID-19”) pandemic; 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; adverse weather conditions; 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, including inability or unwillingness to pay our invoices on time, 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; 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; changes in foreign laws and legal systems, including as a result of Brexit; our inability to introduce new products effectively or implement our innovation strategies; 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 additional expenses, increases in the complexity of our supply chain and potential damage to our reputation with customers resulting from regulations related to “conflict minerals”; 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; challenges attracting and retaining key personnel or high-quality employees; future changes to tax legislation; 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; and other risks and 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 income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, stock-based compensation, loss on extinguishment of debt, certain legal matters, and other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, gain on purchase of business, restructuring costs and transaction costs. 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 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, loss on extinguishment of debt, 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 net income 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.

Free Cash Flow

We define free cash flow as net cash provided by (used in) operating activities, less capital expenditures. We believe that Free Cash Flow provides meaningful information regarding the Company’s liquidity.

ATKORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

(in thousands, except per share data)

 

June 24, 2022

 

June 25, 2021

 

June 24, 2022

 

June 25, 2021

Net sales

 

$

1,061,590

 

$

853,658

 

$

2,884,963

 

$

2,004,283

Cost of sales

 

 

607,267

 

 

514,385

 

 

1,659,416

 

 

1,235,970

Gross profit

 

 

454,323

 

 

339,273

 

 

1,225,547

 

 

768,313

Selling, general and administrative

 

 

95,952

 

 

81,832

 

 

263,020

 

 

210,250

Intangible asset amortization

 

 

8,624

 

 

8,707

 

 

25,554

 

 

25,063

Operating income

 

 

349,747

 

 

248,734

 

 

936,973

 

 

533,000

Interest expense, net

 

 

7,243

 

 

8,090

 

 

21,676

 

 

24,760

Loss on extinguishment of debt

 

 

 

 

4,202

 

 

 

 

4,202

Other income, net

 

 

150

 

 

(509)

 

 

(964)

 

 

(8,180)

Income before income taxes

 

 

342,354

 

 

236,951

 

 

916,261

 

 

512,218

Income tax expense

 

 

88,041

 

 

61,654

 

 

223,630

 

 

126,922

Net income

 

$

254,313

 

$

175,297

 

$

692,631

 

$

385,296

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

5.81

 

$

3.69

 

$

15.30

 

$

8.08

Diluted

 

$

5.74

 

$

3.64

 

$

15.10

 

$

7.95

ATKORE INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands, except share and per share data)

 

June 24, 2022

 

September 30, 2021

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

186,650

 

$

576,289

Accounts receivable, less allowance for current and expected credit losses
of $4,204 and $2,510, respectively

 

 

737,319

 

 

524,926

Inventories, net

 

 

444,661

 

 

285,989

Prepaid expenses and other current assets

 

 

65,076

 

 

34,248

Total current assets

 

 

1,433,706

 

 

1,421,452

Property, plant and equipment, net

 

 

343,337

 

 

275,622

Intangible assets, net

 

 

351,477

 

 

241,204

Goodwill

 

 

281,949

 

 

199,048

Right-of-use assets, net

 

 

42,124

 

 

41,113

Deferred tax assets

 

 

29,431

 

 

29,693

Other long-term assets

 

 

2,027

 

 

1,967

Total Assets

 

$

2,484,051

 

$

2,210,099

Liabilities and Equity

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

 

275,367

 

 

243,164

Income tax payable

 

 

10,176

 

 

72,953

Accrued compensation and employee benefits

 

 

48,927

 

 

57,437

Customer liabilities

 

 

95,435

 

 

80,324

Lease obligations

 

 

11,336

 

 

11,785

Other current liabilities

 

 

76,913

 

 

59,273

Total current liabilities

 

 

518,154

 

 

524,936

Long-term debt

 

 

759,999

 

 

758,386

Long-term lease obligations

 

 

31,714

 

 

30,236

Deferred tax liabilities

 

 

16,881

 

 

16,746

Pension liabilities

 

 

1,854

 

 

3,819

Other long-term liabilities

 

 

15,440

 

 

11,240

Total Liabilities

 

 

1,344,042

 

 

1,345,363

Equity:

 

 

 

 

Common stock, $0.01 par value, 1,000,000,000 shares authorized,
42,530,966 and 45,997,159 shares issued and outstanding, respectively

 

 

426

 

 

461

Treasury stock, held at cost, 290,600 and 290,600 shares, respectively

 

 

(2,580)

 

 

(2,580)

Additional paid-in capital

 

 

496,785

 

 

506,921

Retained earnings

 

 

684,400

 

 

388,660

Accumulated other comprehensive loss

 

 

(39,022)

 

 

(28,726)

Total Equity

 

 

1,140,009

 

 

864,736

Total Liabilities and Equity

 

$

2,484,051

 

$

2,210,099

ATKORE INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine months ended

(in thousands)

 

June 24, 2022

 

June 25, 2021

Operating activities:

 

 

 

 

Net income

 

$

692,631

 

$

385,296

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

 

 

 

 

Depreciation and amortization

 

 

60,467

 

 

58,475

Deferred income taxes

 

 

(12,649)

 

 

17,939

Stock-based compensation

 

 

14,180

 

 

14,158

Amortization of right-of-use assets

 

 

9,868

 

 

10,545

Loss on extinguishment of debt

 

 

 

 

4,202

Other non-cash adjustments to net income

 

 

13,268

 

 

(964)

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

 

 

 

 

Accounts receivable

 

 

(189,306)

 

 

(217,583)

Inventories

 

 

(152,705)

 

 

(32,556)

Prepaid expenses and other current assets

 

 

(17,236)

 

 

(7,081)

Accounts payable

 

 

15,598

 

 

69,353

Accrued and other liabilities

 

 

13,063

 

 

35,665

Income taxes

 

 

(76,996)

 

 

(15,023)

Other, net

 

 

1,592

 

 

(3,805)

Net cash provided by operating activities

 

 

371,776

 

 

318,621

Investing activities:

 

 

 

 

Capital expenditures

 

 

(81,990)

 

 

(34,242)

Proceeds from sale of properties and equipment

 

 

658

 

 

3,117

Acquisition of businesses, net of cash acquired

 

 

(255,361)

 

 

(43,195)

Other, net

 

 

 

 

17

Net cash used in investing activities

 

 

(336,693)

 

 

(74,303)

Financing activities:

 

 

 

 

Repayments of long-term debt

 

 

 

 

(812,120)

Proceeds from issuance of long-term debt

 

 

 

 

798,000

Payment for debt financing costs and fees

 

 

 

 

(11,294)

Issuance of common stock, net of shares withheld for tax

 

 

(24,312)

 

 

65

Repurchase of common stock

 

 

(396,929)

 

 

(110,063)

Net cash used for financing activities

 

 

(421,241)

 

 

(135,412)

Effects of foreign exchange rate changes on cash and cash equivalents

 

 

(3,481)

 

 

3,765

(Decrease) Increase in cash and cash equivalents

 

 

(389,639)

 

 

112,671

Cash and cash equivalents at beginning of period

 

 

576,289

 

 

284,471

Cash and cash equivalents at end of period

 

$

186,650

 

$

397,142

 

 

Nine months ended

(in thousands)

 

June 24, 2022

 

June 25, 2021

Supplementary Cash Flow information

 

 

 

 

Capital expenditures, not yet paid

 

$

5,212

 

$

457

Operating lease right-of-use assets obtained in exchange for lease liabilities

 

$

2,919

 

$

2,630

Acquisitions of businesses, not yet paid

 

$

3,266

 

$

Free Cash Flow:

 

 

 

 

Net cash provided by operating activities

 

$

371,776

 

$

318,621

Capital expenditures

 

 

(81,990)

 

 

(34,242)

Free Cash Flow:

 

$

289,786

 

$

284,379

ATKORE INC.

ADJUSTED EBITDA

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

 

 

 

Three months ended

 

Nine months ended

(in thousands)

 

June 24, 2022

 

June 25, 2021

 

June 24, 2022

 

June 25, 2021

Net income

 

$

254,313

 

$

175,297

 

$

692,631

 

$

385,296

Interest expense, net

 

 

7,243

 

 

8,090

 

 

21,676

 

 

24,760

Income tax expense

 

 

88,041

 

 

61,654

 

 

223,630

 

 

126,922

Depreciation and amortization

 

 

20,428

 

 

20,166

 

 

60,467

 

 

58,475

Stock-based compensation

 

 

4,625

 

 

3,768

 

 

14,180

 

 

14,158

Loss on extinguishment of debt

 

 

 

 

4,202

 

 

 

 

4,202

Transaction costs

 

 

1,708

 

 

287

 

 

3,274

 

 

646

Other (a)

 

 

1,172

 

 

800

 

 

848

 

 

(9,840)

Adjusted EBITDA

 

$

377,530

 

$

274,264

 

$

1,016,706

 

$

604,619

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, and restructuring costs.

ATKORE INC.

SEGMENT INFORMATION

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

 

 

 

Three months ended

 

 

June 24, 2022

 

June 25, 2021

(in thousands)

 

Net sales

 

Adjusted
EBITDA

 

Adjusted
EBITDA
Margin

 

Net sales

 

Adjusted
EBITDA

 

Adjusted
EBITDA
Margin

Electrical

 

$

821,566

 

$

351,466

 

42.8 %

 

$

661,163

 

$

267,824

 

40.5 %

Safety & Infrastructure

 

 

241,909

 

 

45,669

 

18.9 %

 

 

193,492

 

 

22,365

 

11.6 %

Eliminations

 

 

(1,885)

 

 

 

 

 

 

(997)

 

 

 

 

Consolidated operations

 

$

1,061,590

 

 

 

 

 

$

853,658

 

 

 

 

 

 

Nine months ended

 

 

June 24, 2022

 

June 25, 2021

(in thousands)

 

Net sales

 

Adjusted
EBITDA

 

Adjusted
EBITDA
Margin

 

Net sales

 

Adjusted
EBITDA

 

Adjusted
EBITDA
Margin

Electrical

 

$

2,220,482

 

$

961,983

 

43.3 %

 

$

1,535,808

 

$

589,923

 

38.4 %

Safety & Infrastructure

 

 

666,704

 

 

102,018

 

15.3 %

 

 

470,957

 

 

52,810

 

11.2 %

Eliminations

 

 

(2,223)

 

 

 

 

 

 

(2,482)

 

 

 

 

Consolidated operations

 

$

2,884,963

 

 

 

 

 

$

2,004,283

 

 

 

 

ATKORE 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

 

Nine months ended

(in thousands, except per share data)

 

June 24, 2022

 

June 25, 2021

 

June 24, 2022

 

June 25, 2021

Net income

 

$

254,313

 

$

175,297

 

$

692,631

 

$

385,296

Stock-based compensation

 

 

4,625

 

 

3,768

 

 

14,180

 

 

14,158

Intangible asset amortization

 

 

8,624

 

 

8,707

 

 

25,554

 

 

25,063

Loss on extinguishment of debt

 

 

 

 

4,202

 

 

 

 

4,202

Other (a)

 

 

1,028

 

 

(863)

 

 

108

 

 

(11,860)

Pre-tax adjustments to net income

 

 

14,277

 

 

15,814

 

 

39,842

 

 

31,563

Tax effect

 

 

(3,569)

 

 

(3,954)

 

 

(9,960)

 

 

(7,891)

Adjusted net income

 

$

265,021

 

$

187,157

 

$

722,513

 

$

408,968

 

 

 

 

 

 

 

 

 

Diluted weighted average common shares
outstanding

 

 

43,630

 

 

47,286

 

 

45,131

 

 

47,513

Net income per diluted share

 

$

5.74

 

$

3.64

 

$

15.10

 

$

7.95

Adjusted net income per diluted share

 

$

6.07

 

$

3.96

 

$

16.01

 

$

8.61

 

 

 

 

 

 

 

 

 

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

ATKORE INC.

LEVERAGE RATIO

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

($ in thousands)

June 24,
2022

 

March 25,
2022

 

December 24,
2021

 

September 30,
2021

 

June 25,
2021

 

March 26,
2021

 

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

$

 

$

 

$

 

$

 

$

4,000

 

$

 

Long-term debt

 

759,999

 

 

759,461

 

 

758,924

 

 

758,386

 

 

780,489

 

 

765,049

 

Total debt

 

759,999

 

 

759,461

 

 

758,924

 

 

758,386

 

 

784,489

 

 

765,049

 

Less cash and cash equivalents

 

186,650

 

 

390,399

 

 

498,959

 

 

576,289

 

 

397,142

 

 

304,469

 

Net debt

$

573,349

 

$

369,062

 

$

259,965

 

$

182,097

 

$

387,347

 

$

460,580

 

 

TTM Adjusted EBITDA (a)

$

1,309,637

 

$

1,206,371

 

$

1,053,570

 

$

897,547

 

$

702,815

 

$

492,274

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt/TTM Adjusted EBITDA

 

0.6

x

 

0.6

x

 

0.7

x

 

0.8

x

 

1.1

x

 

1.6

x

Net debt/TTM Adjusted EBITDA

 

0.4

x

 

0.3

x

 

0.2

x

 

0.2

x

 

0.6

x

 

0.9

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 March 25, 2022 can be found in Exhibit 99.1 to form 8-K filed May 3, 2022 and is incorporated by reference herein.The reconciliation of Adjusted EBITDA for the quarter ended December 24, 2021 can be found in Exhibit 99.1 to form 8-K filed January 31, 2022 and is incorporated by reference herein.The reconciliation of Adjusted EBITDA for the quarter ended June 25, 2021 can be found in Exhibit 99.1 to form 8-K filed August 3, 2021 and is incorporated by reference herein.The reconciliation of Adjusted EBITDA for the quarter ended March 26, 2021 can be found in Exhibit 99.1 to form 8-k filed April 29, 2021 and is incorporated by reference herein.The reconciliation of Adjusted EBITDA for the year ended September 30, 2021 and September 30, 2020 can be found in Exhibit 99.1 to form 8-K filed November 18, 2021 and is incorporated by reference herein.

ATKORE INC.

TRAILING TWELVE MONTHS ADJUSTED EBITDA

The following table presents a reconciliation of Adjusted EBITDA for the trailing twelve months (TTM) ended June 24, 2022:

 

TTM

 

Three months ended

(in thousands)

June 24, 2022

 

June 24, 2022

 

March 25, 2022

 

December 24,
2021

 

September 30,
2021

Net income

$

895,194

 

$

254,313

 

$

233,477

 

$

204,843

 

$

202,561

Interest expense, net

 

29,814

 

 

7,243

 

 

7,514

 

 

6,918

 

 

8,139

Income tax expense

 

288,851

 

 

88,041

 

 

78,613

 

 

56,975

 

 

65,222

Depreciation and amortization

 

80,550

 

 

20,428

 

 

19,994

 

 

20,046

 

 

20,082

Stock-based compensation

 

17,069

 

 

4,625

 

 

6,128

 

 

3,427

 

 

2,889

Loss on the extinguishment of debt

 

 

 

 

 

 

 

 

 

Other(a)

 

(1,841)

 

 

2,880

 

 

440

 

 

801

 

 

(5,962)

Adjusted EBITDA

$

1,309,637

 

$

377,530

 

$

346,166

 

$

293,010

 

$

292,931

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, and restructuring costs.

 

Media Contact:
Lisa Winter
Vice President - Communications
708-225-2453
LWinter@atkore.com

Investor Contact:
John Deitzer
Vice President - Treasury & Investor Relations
708-225-2124
JDeitzer@atkore.com

Source: Atkore Inc.

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