Atkore (US:ATKR)2020-02-03 23:40Financial Performance - Net sales decreased by $4.6 million, or 1.0%, to $447.4 million for the three months ended December 27, 2019, compared to $452.0 million for the same period in 2018[106] - Gross profit increased by $6.6 million, or 6.0%, to $116.8 million for the three months ended December 27, 2019, compared to $110.3 million for the same period in 2018[105] - Operating income increased by $6.9 million, or 15.0%, to $52.5 million for the three months ended December 27, 2019, compared to $45.7 million for the same period in 2018[105] - Net income increased by $7.8 million, or 29.1%, to $34.8 million for the three months ended December 27, 2019, compared to $26.9 million for the same period in 2018[105] Segment Performance - Adjusted EBITDA for the Electrical Raceway segment increased by $1.7 million, or 2.5%, to $70.2 million for the three months ended December 27, 2019, with an Adjusted EBITDA margin of 20.6%[116] - Adjusted EBITDA for the Mechanical Products & Solutions segment increased by $5.8 million, or 53.0%, to $16.7 million for the three months ended December 27, 2019, with an Adjusted EBITDA margin of 15.6%[119] Cash and Financing - Cash and cash equivalents were $164.1 million as of December 27, 2019, with $46.9 million held at non-U.S. subsidiaries[120] - The company had no outstanding borrowings under the ABL Credit Facility as of December 27, 2019, with approximately $282.6 million available for borrowings[121] - Operating activities provided $52.2 million in cash during the three months ended December 27, 2019, compared to $40.3 million in the same period of 2018, reflecting an increase of $11.9 million primarily due to higher gross profit[129] - Investing activities used $9.8 million in cash during the three months ended December 27, 2019, a significant decrease from $64.9 million in the same period of 2018, mainly due to the prior year's acquisition of Vergokan for $58.7 million[130] - Financing activities used $3.0 million in cash during the three months ended December 27, 2019, compared to $25.2 million in the same period of 2018, with the decrease attributed to no share repurchases in the recent quarter versus $24.4 million in the prior year[131] Tax and Accounting - The effective income tax rate decreased to 17.4% for the three months ended December 27, 2019, compared to 23.2% for the same period in 2018[113] - The company has not experienced any material changes in contractual obligations and commitments since the last Annual Report[132] - There have been no material changes in critical accounting policies and estimates since the last Annual Report[133] Risks and Forward-Looking Statements - The company cautions that forward-looking statements are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from expectations[137] - Key risks include declines in economic conditions, pricing pressure, and challenges in attracting and retaining personnel, which could impact future performance[138] - The company emphasizes that comparisons of results for current and prior periods should only be viewed as historical data and not indicative of future trends[140] - There have been no material changes to the quantitative and qualitative disclosures about market risks previously disclosed in the Annual Report[141] Sales and Pricing - The decrease in net sales was primarily attributed to $30.0 million of lower average selling prices due to lower commodity input costs[106]