Luxfer Holdings PLC (NYSE:LXFR) Q2 2024 Earnings Conference Call July 31, 2024 8:30 AM ET Company Participants Kevin Grant - Vice President of Investor Relations & Business Development Andy Butcher - Chief Executive Officer Steve Webster - Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti Operator Good morning. My name is Todd and I will be your conference operator today. Welcome to Luxfer's Second Quarter 2024 Earnings Conference Call. All lines have been placed on mute. After th ...

Luxfer (LXFR) came out with quarterly earnings of $0.24 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.27 per share a year ago. These figures are adjusted for non-recurring items. A quarter ago, it was expected that this materials technology company specializing in aluminum, magnesium and zirconium would post earnings of $0.08 per share when it actually produced earnings of $0.20, delivering a surprise of 150%. Over the last four quarters, the company has surpassed con ...

Financial Performance - Net sales for Q2 2024 decreased by 9.7% to $99.7 million compared to $110.4 million in Q2 2023[80] - Gross profit for Q2 2024 was $22.0 million, a decrease of 9.1% from $24.2 million in Q2 2023, with a gross profit margin of 22.1%[80] - Operating income for Q2 2024 fell by 51.9% to $3.8 million, down from $7.9 million in Q2 2023, resulting in an operating margin of 3.8%[80] - Net loss from continuing operations in Q2 2024 was $0.4 million, a decline of 108.2% compared to net income of $4.9 million in Q2 2023[80] - Year-to-date net sales for the first six months of 2024 decreased by 10.7% to $189.1 million from $211.7 million in the same period of 2023[82] Cost and Expenses - Research and development costs as a percentage of net sales increased by 0.2 percentage points in both Q2 and the first six months of 2024[86] - Restructuring charges in Q2 2024 were $1.1 million, significantly lower than $2.5 million in Q2 2023, reflecting cost-saving initiatives[88] - Acquisition and disposal related costs for Q2 2024 amounted to $9.2 million, primarily due to the divestiture of the Graphic Arts segment[90] - The effective tax rate for Q2 2024 was 114.8%, a significant increase from 26.9% in Q2 2023[80] - Net interest expense decreased by 27.8% to $1.3 million in Q2 2024 from $1.8 million in Q2 2023, with a total of $2.7 million for the first half of 2024 compared to $3.1 million in the same period of 2023[92] Strategic Focus - The company anticipates ongoing focus on cost control, new product launches, and productivity improvements as part of its strategic objectives for 2024[79] - The company initiated a process to divest the Graphic Arts business, expecting completion within the current year, which is reflected in the financial summaries[96] Adjusted Financial Metrics - Adjusted net income for Q2 2024 was $10.5 million, compared to $7.4 million in Q2 2023, while year-to-date adjusted net income reached $14.5 million, up from $12.8 million in 2023[97] - Adjusted diluted earnings per share for Q2 2024 was $0.39, compared to $0.27 in Q2 2023, reflecting improved operational performance[98] - Adjusted EBITDA for Q2 2024 was $17.4 million, an increase from $14.4 million in Q2 2023, indicating strong operational growth[98] - Adjusted net income from continuing operations for Q2 2024 was $10.5 million, compared to $7.4 million in Q2 2023, representing a 41.9% increase[100] Segment Performance - Gas Cylinders segment net sales increased by 2.7% to $49.8 million in Q2 2024 from $48.5 million in Q2 2023, with year-to-date sales up 5.8% to $95.2 million[104][105] - Adjusted EBITDA for Gas Cylinders remained flat at $4.9 million in Q2 2024, while year-to-date adjusted EBITDA increased by 21.6% to $9.0 million[104][107] - Elektron segment net sales decreased by 20.8% to $42.0 million in Q2 2024, and year-to-date sales fell by 24.4% to $79.7 million[109][110] - Adjusted EBITDA for Elektron increased by 30.5% to $12.4 million in Q2 2024, with a year-to-date adjusted EBITDA of $18.8 million, a slight decrease of 1.1%[109][110] - Graphic Arts segment net sales decreased by 11.2% to $7.9 million in Q2 2024, with year-to-date sales down 12.9% to $14.2 million[111][112] - Graphic Arts achieved a small positive EBITDA of $0.1 million in Q2 2024, compared to breakeven in Q2 2023, but reported a loss of $1.6 million for the first six months of 2024[111][113] Cash Flow and Financing - Cash generated from operating activities was $12.5 million in the first six months of 2024, compared to an outflow of $1.3 million in the same period of 2023[119] - Net cash used in investing activities was $4.1 million for the first six months of 2024, a decrease from $4.9 million in 2023 due to reduced capital expenditures[120] - In the first six months of 2024, net cash used by financing activities was $6.3 million, compared to $1.2 million provided in 2023[121] - Year-to-date dividends paid in 2024 amounted to $7.0 million, with an additional $3.5 million declared, maintaining a dividend of $0.260 per ordinary share[122] - The company made a net drawdown of $2.0 million on banking facilities, having drawn $6.4 million on the revolving credit facility and repaid $4.4 million of short-term debt[121] Obligations and Compliance - Total contractual cash obligations as of June 30, 2024, were $110.9 million, with $11.7 million due within one year[126] - Interest payments due total $11.3 million, with $4.7 million due within one year[126] - The company maintains compliance with covenants under the Loan Notes and Senior Facilities Agreement throughout all quarterly measurement dates[116] - The company has authorized share capital of 40.0 million ordinary shares with a par value of £0.50 per share[125] - No off-balance sheet arrangements were reported as of June 30, 2024, other than bonding facilities[127] Market Risk - There were no material changes in market risk during the first half of 2024[131] - The company’s dividend payments depend on cash flows from its subsidiaries, as it operates as a holding company[123]

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years. As such, the Zacks rating upgrade for Luxfer is essentially a positive comment on its earnings outlook that could have a favorable impact on its stock price. The change in a company's future earnings potential, as reflected in earnings estimate revisions, has pr ...

The U.S. manufacturing sector, which struggled for months owing to inflationary pressures and higher interest rates, is making a rebound. Production at U.S. factories increased in May although demand for goods remained soft. The Federal Reserve said that manufacturing output jumped a solid 0.9% in May from a downwardly revised 0.4% drop in April, making up for the declines in the past two months. May's jump was triple the expectations of economists, who had forecast a rise of 0.3%. On a year-over-year basis ...

Investors looking for stocks in the Manufacturing - General Industrial sector might want to consider either Luxfer (LXFR) or Crane (CR) . But which of these two stocks offers value investors a better bang for their buck right now? We'll need to take a closer look. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The Zacks Rank favors stocks with ...

Luxfer (LXFR) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate. Individual investors often ...

Investors interested in Manufacturing - General Industrial stocks are likely familiar with Luxfer (LXFR) and Nordson (NDSN) . But which of these two stocks is more attractive to value investors? We'll need to take a closer look to find out. There are plenty of strategies for discovering value stocks, but we have found that pairing a strong Zacks Rank with an impressive grade in the Value category of our Style Scores system produces the best returns. The proven Zacks Rank emphasizes companies with positive e ...

Luxfer Holdings PLC (NYSE:LXFR) Q1 2024 Earnings Conference Call May 1, 2024 8:30 AM ET Company Participants Kevin Grant - Vice President, Investor Relations & Business Development Andy Butcher - Chief Executive Officer Steve Webster - Chief Financial Officer Conference Call Participants Steve Ferazani - Sidoti Operator Good morning. My name is Shelby and I will be your conference operator today. Welcome to Luxfer's First Quarter 2024 Earnings Conference Call. [Operator Instructions] Now, I will turn the ca ...

FIRST QUARTER 2024 EARNINGS PRESENTATION FORWARD-LOOKING STATEMENTS Q1 2024 KEY MESSAGES CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 3 PERFORMANCE IMPROVEMENT ACTIVITIES CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 1 CUSTOMER FIRST • INTEGRITY • ACCOUNTABILITY • INNOVATION • PERSONAL DEVELOPMENT • TEAMWORK 2 Sequential Improvement in Profitability with Solid Cash Flow | --- | --- | --- | --- | |--------------------- ...