Atkore Inc. (NYSE:ATKR) Q4 2023 Earnings Conference Call November 17, 2023 8:00 AM ET Company Participants John Deitzer - Vice President of Treasury and Investor Relations Bill Waltz - President and Chief Executive Officer David Johnson - Chief Financial Officer Conference Call Participants Alex Rygiel - B. Riley Deane Dray - RBC Andy Kaplowitz - Citigroup Chris Dankert - Loop Capital Chris Moore - CJS Securities Operator Good morning. My name is Krista, and I'll be your conference operator today. At this t ...

Fourth Quarter and Full Year 2023 Earnings Presentation and Business Update November 17, 2023 ...

Financial Performance - Net sales for fiscal 2023 decreased by $395.2 million to $3,518.8 million, a decline of 10.1% compared to $3,913.9 million in fiscal 2022[224] - The decrease in net sales was primarily due to lower average selling prices, which accounted for a reduction of $646.6 million, and the economic value of solar tax credits impacting sales by $30.4 million[224] - Net sales decreased by $338.7 million, or 11.2%, to $2,675.1 million for fiscal 2023 compared to $3,013.8 million for fiscal 2022, primarily due to lower average selling prices[231] - Adjusted EBITDA decreased by $268.6 million, or 21.1%, to $1,004.9 million for fiscal 2023 compared to $1,273.4 million for fiscal 2022[232] - Gross profit for fiscal 2023 was $1,339.5 million, a decrease of $300.5 million, or 18.3%, compared to $1,640.0 million for fiscal 2022[221] - Operating income fell by $340.3 million, or 27.6%, to $893.5 million for fiscal 2023, compared to $1,233.8 million for fiscal 2022[221] - Net income for fiscal 2023 was $689.9 million, a decrease of $223.5 million, or 24.5%, compared to $913.4 million for fiscal 2022[221] Expenses and Costs - Cost of sales decreased by $94.7 million, or 4.2%, to $2,179.3 million for fiscal 2023, primarily due to lower input costs of steel, copper, and PVC resin[225] - Selling, general and administrative expenses increased by $18.2 million, or 4.9%, to $388.2 million for fiscal 2023, driven by increased headcount and digital initiatives[225] - Intangible asset amortization expense rose by $21.6 million, or 59.8%, to $57.8 million for fiscal 2023, primarily due to acquisitions of definite-lived intangible assets[226] - Interest expense, net increased by $4.6 million, or 14.9%, to $35.2 million for fiscal 2023 compared to $30.7 million for fiscal 2022[227] Cash Flow and Investments - Cash and cash equivalents were $388.1 million as of September 30, 2023, a decrease of $0.6 million from the previous year, mainly due to acquisitions, capital expenditures, and share repurchases[253] - Operating activities provided $807.6 million of cash in fiscal 2023, an increase of $20.8 million or 2.6% compared to $786.8 million in fiscal 2022[263] - Cash used for investing activities decreased by $140.7 million to $302.2 million in fiscal 2023, primarily due to a reduction in cash used for acquisitions[264] - Cash used for financing activities was $506.8 million in fiscal 2023, a decrease of $17.4 million compared to $524.2 million in fiscal 2022, mainly due to lower share repurchases[265] Market and Economic Conditions - Approximately 90% of net sales in fiscal 2023 were generated from customers located in the United States, indicating a strong dependence on the U.S. economy[203] - Economic conditions, including interest rate increases and inflation, are creating uncertainty in the global economy, which may impact the company's operations[205] - The company anticipates increased demand for its products due to emerging industry trends, including the shift towards renewable energy and digital infrastructure[212] Acquisitions and Growth Strategy - The company has invested $468.5 million in acquisitions since 2021 to expand market share and product offerings[209] - In fiscal 2023, the company experienced a 4.3% increase in net sales attributed to acquisitions[222] - The company expects to continue pursuing synergistic acquisitions as part of its growth strategy[209] Segment Performance - Net sales in the Safety & Infrastructure segment decreased by $56.4 million, or 6.3%, to $844.2 million for fiscal 2023 compared to $900.6 million for fiscal 2022[235] - Adjusted EBITDA for the Safety & Infrastructure segment decreased by $35.2 million, or 25.4%, to $103.2 million for fiscal 2023 compared to $138.4 million for fiscal 2022[236] Tax and Regulatory Matters - Income tax expense decreased by $129.8 million to $160.4 million for fiscal 2023, with the income tax rate decreasing to 18.9% from 24.1% in fiscal 2022[229] - Future changes in tax legislation could impact the company's financial performance[294] Risks and Challenges - The company faces risks related to changes in financial obligations for pension plans in the United States[294] - There is a potential loss of production or distribution capacity due to interruptions at facilities or key suppliers[294] - The company may experience a significant loss of third-party agents or distributors affecting sales generation[294] - Security threats and disruptions to information systems pose risks to compliance with legal obligations and data protection[294] - Future impairment of goodwill or long-lived assets may occur due to declines in cash flow projections or customer demand[294] - The company faces challenges in effectively introducing new products and implementing innovation strategies[294] - There are risks associated with managing acquisitions, including identifying and integrating targets successfully[294] - The company may incur additional expenses and complexity in the supply chain due to regulations related to "conflict minerals"[294] - The company must generate sufficient cash flow from operations to meet existing obligations and support business development[294]

Atkore Inc. (NYSE:ATKR) Q3 2023 Earnings Conference Call August 8, 2023 8:00 AM ET Company Participants William Waltz - President & CEO David Johnson - CFO John Deitzer - VP, Treasury & IR Conference Call Participants Chris Dankert - Loop Capital Markets Deane Dray - RBC Capital Markets Andy Kaplowitz - Citigroup Chris Moore - CJS Securities Operator Good morning. My name is Jean Louis, and I will be your conference operator today. At this time, I would like to welcome everyone to the Atkore Third Quarter F ...

Third Quarter 2023 Earnings Presentation and Business Update August 8, 2023 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________ _____________________ FORM 10-Q _________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37793 _____________________________ ...

Financial Data and Key Metrics Changes - In Q2 2023, net sales were $896 million, adjusted EBITDA was $276 million, and adjusted EPS was $4.87, reflecting a sequential increase from Q1 [6][4] - Volume in the quarter was up 4%, aligning with expectations for mid-single digit volume growth for the full year [4][6] - Adjusted EBITDA margins were 31%, down year-over-year but still considered strong [6][8] Business Line Data and Key Metrics Changes - The S&I business experienced a 20% volume increase, driven by demand for metal framing and solar-related products, with adjusted EBITDA margins over 15% [8][9] - PVC volumes were down double digits compared to the previous year's strong performance, primarily due to reduced utility project activity on the West Coast and a slowdown in residential activity [7][8] - Excluding the impact of PVC, overall volume would have been up close to mid-teens [7] Market Data and Key Metrics Changes - The company noted that market demand remains solid, with no excess supply in the channel as buyers are purchasing only what they need [16][18] - Input costs for materials like steel and copper have shown volatility, with steel costs down 30% year-over-year but up 20% sequentially from Q1 to Q2 [18][19] - The contractor's backlog remains strong, indicating ongoing demand for construction-related products [40][42] Company Strategy and Development Direction - The company is focused on three conduits of growth: M&A, category expansion in solar and HDPE, and new product innovation, which reached 9% of net sales in Q2 [11][12] - The integration of recent acquisitions is on track, with expectations of exceeding integration models and achieving synergies [31][52] - The company is optimistic about future growth opportunities in mega projects and international markets [9][30] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving mid-single-digit volume growth for the full year and has raised guidance for adjusted EBITDA and adjusted EPS based on strong performance [12][61] - The company is optimistic about the impact of upcoming stimulus funding on future growth [40][42] - Management highlighted the importance of maintaining strong cash flow and a solid balance sheet as foundations for future growth [10][61] Other Important Information - The company repurchased $119 million in shares during Q2 and continued share repurchases in Q3 [4][10] - Cash flow from operating activities was 116% of net income for the first half of fiscal 2023, up 150% compared to the same period in fiscal 2022 [9][10] Q&A Session Summary Question: Can you provide more details on the pricing dynamics this quarter? - Management indicated that market demand is solid, with no excess supply, and input costs are volatile, with steel down 30% year-over-year but up 20% sequentially [14][18] Question: What is the status of backlogs and pricing retention? - Backlogs are back to normal levels, and while pricing has decreased, it is not down as much as input costs [20][21] Question: Can you elaborate on the S&I business and mega projects? - The S&I business is benefiting from increased demand in mega projects, particularly in data centers and EV battery facilities [27][30] Question: What are the volume assumptions for the rest of the year? - The company expects mid-single-digit volume growth, with no signs of destocking observed [35][36] Question: How is the solar business contributing to performance? - Solar-related products are expected to significantly contribute to growth, particularly in FY 2024 as new facilities come online [46][48] Question: What is the market dynamic for HDP? - The integration of HDP acquisitions is on track, with optimistic future growth expected despite some short-term weather-related challenges [50][52]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________ _____________________ FORM 10-Q _________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37793 ____________________________ ...

Financial Data and Key Metrics Changes - In Q1 2023, net sales were $834 million and adjusted EBITDA was $264 million, with adjusted EPS increasing to $4.61, reflecting a 1% year-over-year increase [6][7][9] - Adjusted EBITDA margins were 32%, down year-over-year but still considered strong [7] - The company is increasing its full-year outlook for adjusted EBITDA to $1 billion, up by $100 million from previous guidance, and adjusted EPS is now expected to be in the range of $15.85 to $17.75 [9][10] Business Line Data and Key Metrics Changes - The Safety & Infrastructure (S&I) segment experienced a 22% growth in adjusted EBITDA, while the electrical segment saw margin compression due to normalization of pricing [8][10] - Volumes were up over 5% in the quarter, with recent acquisitions contributing an additional 7% growth [7][8] Market Data and Key Metrics Changes - The company noted strong performance in data centers and large chip fabrication projects globally, contributing to volume growth [7][8] - There is a noted decline in average selling prices as the market normalizes, alongside a downward trend in key input costs [7][8] Company Strategy and Development Direction - The company is focused on capital deployment and strategic growth, including the acquisition of Elite Polymer Solutions to expand HDPE product offerings [3][4] - Sustainability is emphasized as a core component of the company's strategy, with a third sustainability report released detailing progress against external targets [10][11] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about mid-single-digit volume growth for the remainder of the year, supported by strong customer backlogs [15][16] - The company is cautiously optimistic about growth in the industry, despite some weakness in residential markets [20][21] - Management highlighted the importance of the Inflation Reduction Act and other governmental actions, suggesting a more significant impact in 2024 [36][37] Other Important Information - The company has repurchased over $250 million in shares year-to-date, reflecting a commitment to returning cash to shareholders [4][9] - The management team is actively pursuing M&A opportunities and has increased the size of the M&A team to explore further acquisitions [31] Q&A Session Summary Question: Resilience of end markets and customer backlogs - Management expressed optimism about volume growth, citing 6 to 12 months of backlog with distributor partners, indicating confidence in continued demand [15] Question: Price versus cost dynamics and guidance adjustments - Management noted that they are retaining more pricing than previously expected, allowing for an increase in guidance for adjusted EBITDA [16][17] Question: Demand trends in metal electrical conduit and PVC markets - Management indicated that while there is residential weakness, multifamily homes and electrification trends are driving demand [20][21] Question: Normalization of EBITDA and input costs - Management acknowledged ongoing pressure on pricing but highlighted strong volume growth and new product development as factors supporting the EBITDA guidance [24][26] Question: M&A pipeline and competition - Management stated that there has been no increased trend in competition for acquisitions, emphasizing Atkore's unique position in the market [30][31] Question: Demand in Safety & Infrastructure segment - Management noted solid growth across product lines in the S&I segment, driven by data centers and fabrication plants [32] Question: Impact of governmental actions on volume guidance - Management indicated that the impact of governmental actions will be more significant in 2024, with some minor contributions expected in 2023 [36][37] Question: HDPE market opportunity - Management expressed excitement about the HDPE market, highlighting strong positioning and optimism for future growth [40] Question: Cash flow and inventory levels - Management indicated that inventory levels are where they want them to be, with a slight increase expected due to upcoming solar volume [41] Question: Solar and telecom conduit demand trends - Management is optimistic about both short-term and long-term demand in solar and telecom conduit markets, driven by new tax credits and domestic manufacturing [44][45]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________ _____________________ FORM 10-Q _________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 30, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-37793 _________________________ ...