Atkore (US:ATKR)2024-11-20 23:02Financial Performance - Net sales for Q4 2024 decreased by $81.6 million, or 9.4%, to $788.3 million compared to $869.9 million in the prior year[4]. - Net income for Q4 2024 decreased by $67.8 million, or 48.1%, to $73.1 million, with adjusted net income per diluted share decreasing to $2.43 from $4.21[4][12]. - Full-year 2024 net sales decreased by $316.7 million, or 9.0%, to $3,202.1 million, primarily due to decreased average selling prices of $406.1 million[19]. - Adjusted EBITDA for Q4 2024 decreased by $91.8 million, or 39.6%, to $140.2 million, with adjusted EBITDA margin decreasing from 26.7% to 17.8%[11]. - Atkore reported net sales of $788.3 million for the three months ended September 30, 2024, a decrease of 9.4% compared to $869.9 million for the same period in 2023[49]. - Gross profit for the same period was $216.1 million, resulting in a gross margin of 27.4%, down from 34.7% in the prior year[49]. - Operating income decreased to $102.1 million for the three months ended September 30, 2024, compared to $189.4 million in the same period last year[49]. - Net income for the three months ended September 30, 2024, was $73.1 million, a decline of 48% from $140.9 million in the prior year[49]. - Adjusted EBITDA for the three months ended September 30, 2024, was $140,150 thousand, a decrease of 39.6% from $231,978 thousand in the same period last year[60]. - For the fiscal year ended September 30, 2024, net sales were $3,202,053 thousand, a decrease of 9.0% from $3,518,761 thousand in 2023[63]. - Adjusted net income for the three months ended September 30, 2024, was $86,637 thousand, compared to $161,047 thousand in 2023, reflecting a decline of approximately 46.1%[66]. - Adjusted EBITDA for the fiscal year ended September 30, 2024, was $771,713 thousand, down from $1,042,127 thousand in 2023[69]. Cash Flow and Shareholder Returns - Cash flow from operating activities for fiscal 2024 was $549.0 million, down from $807.6 million in fiscal 2023, with free cash flow decreasing to $399.2 million[25]. - The company returned approximately 75% of cash generated from operating activities to shareholders through dividends and share repurchases[3]. - The Board of Directors declared a quarterly cash dividend of $0.32 per share, payable on December 16, 2024[2]. - The company paid $34,461 thousand in dividends to shareholders during the period, marking a new strategy in shareholder returns[55]. Segment Performance - Electrical segment net sales decreased by $85.3 million, or 13.1%, to $564.5 million in Q4 2024, primarily due to decreased average selling prices[15]. - Safety & Infrastructure segment net sales increased by $4.3 million, or 1.9%, to $224.5 million in Q4 2024, driven by higher volumes[17]. - The company experienced a decline in the Adjusted EBITDA Margin for the Electrical segment to 30.9% in 2024 from 37.6% in 2023[63]. - The Safety & Infrastructure segment reported an Adjusted EBITDA Margin of 10.6% for the fiscal year 2024, down from 12.2% in 2023[63]. Expenses and Liabilities - Atkore's selling, general and administrative expenses increased to $100.4 million for the three months ended September 30, 2024, compared to $97.0 million in the same period last year[49]. - Total current liabilities decreased to $510,866 thousand from $564,604 thousand, a reduction of 9.5%[52]. - Cash and cash equivalents at the end of the period were $351,385 thousand, down from $388,114 thousand, reflecting a decrease of 9.5%[55]. - Capital expenditures for the three months ended September 30, 2024, were $149,861 thousand, compared to $218,888 thousand in the previous year, indicating a reduction of 31.6%[57]. - Long-term debt remained relatively stable at $764,838 thousand, compared to $762,687 thousand in the previous year[52]. Future Outlook - The company expects full-year 2025 net sales to be in the range of $2.9 - $3.2 billion and adjusted EBITDA to be between $475 - $525 million[2][27]. - The company anticipates potential risks including economic conditions and competition that could impact future performance[34]. - Adjusted EBITDA margin was not explicitly stated but is a key performance indicator used by the company to evaluate business performance[39].