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 Atkore International Group Inc. Announces Third Quarter 2019 Results
   Wednesday, August 07, 2019 6:00:00 AM ET
  • Diluted earnings per share increased by $0.05 to $0.75; Adjusted net income per diluted share increased by $0.18 to $1.04
  • Net income increased by $2.4 million, or 6.9%, to $36.6 million; Adjusted EBITDA increased by $11.8 million, or 15.4%, to $88.5 million
  • Full-year Adjusted EBITDA guidance increased to $317.0 million - $322.0 million
  • Full-year Adjusted net income per diluted share guidance increased to $3.55 - $3.63

HARVEY, Ill.--(BUSINESS WIRE)--Atkore International Group Inc. (the "Company" or "Atkore") (NYSE: ATKR) announced earnings for its fiscal 2019 third quarter ended June 28, 2019.



"I’m proud of Atkore’s operational performance and financial results with strong Adjusted EBITDA growth, volume increases and solid cash flow this quarter. With continued focus on driving efficiencies and productivity improvements, Atkore is able to raise its full-year Adjusted EBITDA outlook for the Company,” commented Bill Waltz, President and Chief Executive Officer of Atkore.

2019 Third Quarter Results

 

 

 

Three months ended

 

 

June 28, 2019

 

June 29, 2018

 

Change

 

% Change

Net sales

 

 

 

 

 

 

 

 

Electrical Raceway

 

$

373,229

 

 

$

370,333

 

 

$

2,896

 

 

0.8

%

Mechanical Products & Solutions

 

120,596

 

 

128,239

 

 

(7,643

)

 

(6.0

)%

Eliminations

 

(334

)

 

(558

)

 

224

 

 

(40.1

)%

Consolidated operations

 

$

493,491

 

 

$

498,014

 

 

$

(4,523

)

 

(0.9

)%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

 

Electrical Raceway

 

$

76,721

 

 

$

74,461

 

 

$

2,260

 

 

3.0

%

Mechanical Products & Solutions

 

20,595

 

 

12,013

 

 

8,582

 

 

71.4

%

Unallocated

 

(8,835

)

 

(9,810

)

 

975

 

 

(9.9

)%

Consolidated operations

 

$

88,481

 

 

$

76,664

 

 

$

11,817

 

 

15.4

%

Net sales decreased by $4.5 million, or 0.9%, to $493.5 million for the three months ended June 28, 2019 compared to $498.0 million for the three months ended June 29, 2018. Net sales decreased by $17.9 million primarily due to the pass-through impact of lower average input costs of steel and resin. The decrease in net sales was partially offset by increased sales of $12.5 million due to the acquisition of Vergokan International NV ("Vergokan") and the acquisition of the assets of United Structural Products, LLC. ("US Tray") in fiscal 2019 (together, the "2019 acquisitions"). Additionally, the decrease in net sales was partially offset by higher volume of $2.8 million primarily in the armored cable and fittings product category sold within the Electrical Raceway segment, partially offset by lower volume in the mechanical pipe product category sold within the Mechanical Products & Solutions segment.

Gross profit increased by $5.8 million, or 4.8%, to $126.1 million for the three months ended June 28, 2019, as compared to $120.3 million for the prior-year period. Gross margin increased to 25.6% for the three months ended June 28, 2019, as compared to 24.2% for the prior-year period. Gross margin increased primarily due to implemented pricing strategies and operating efficiencies.

Net income increased by $2.4 million, or 6.9%, to $36.6 million for the three months ended June 28, 2019 compared to $34.2 million for the prior-year period primarily due to higher gross profit.

Adjusted EBITDA increased by $11.8 million, or 15.4%, to $88.5 million for the three months ended June 28, 2019 compared to $76.7 million for the three months ended June 29, 2018. The increase was primarily due to higher gross profit.

Diluted earnings per share prepared in accordance with accounting principles generally accepted in the United States of America ("GAAP") basis was $0.75 for the three months ended June 28, 2019, as compared to $0.70 in the prior-year period primarily due to the change in the effect of dilutive securities. Adjusted net income per diluted share increased by $0.18 to $1.04 for the three months ended June 28, 2019, as compared to $0.86 for the prior-year period primarily due to higher gross profit.

Segment Results

Electrical Raceway

Net sales increased by $2.9 million, or 0.8%, to $373.2 million for the three months ended June 28, 2019 compared to $370.3 million for the three months ended June 29, 2018. The 2019 acquisitions contributed $12.5 million of the increase in sales for the three months ended June 28, 2019. Additionally, sales increased $9.7 million due to higher volume, primarily in the armored cable and fittings product category. The increase was partially offset by lower average input costs of steel and resin-based products of $17.5 million. Lastly, net sales was further offset by foreign exchange losses of $1.7 million.

Adjusted EBITDA for the three months ended June 28, 2019 increased by $2.2 million, or 3.0%, to $76.7 million from $74.5 million for the three months ended June 29, 2018. Adjusted EBITDA margins increased to 20.6% for the three months ended June 28, 2019 compared to 20.1% for the three months ended June 29, 2018. The increase in Adjusted EBITDA was largely due to increased volume, operational efficiencies, and the contributions from the 2019 acquisitions.

Mechanical Products & Solutions ("MP&S")

Net sales decreased by $7.6 million, or 6.0%, for the three months ended June 28, 2019 to $120.6 million compared to $128.2 million for the three months ended June 29, 2018. The decrease was primarily due to lower volume of $6.9 million primarily in the mechanical pipe product category.

Adjusted EBITDA increased by $8.6 million, or 71.4%, to $20.6 million for the three months ended June 28, 2019 compared to $12.0 million for the three months ended June 29, 2018. Adjusted EBITDA margins increased to 17.1% for the three months ended June 28, 2019 compared to 9.4% for the three months ended June 29, 2018. Adjusted EBITDA increased primarily due to pricing strategies and operational efficiencies.

Full-Year 2019 Guidance

The Company is increasing its expectation of fiscal year 2019 Adjusted EBITDA to be in the range of $317.0 million - $322.0 million and its expectation of fiscal year 2019 Adjusted net income per diluted share to be in the range of $3.55 - $3.63.

Reconciliations of the forward-looking full-year 2019 outlook for Adjusted EBITDA and Adjusted net income per diluted share 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 7, 2019, at 8 a.m. Eastern time, to discuss the Company's financial results. The conference call may be accessed by dialing (877) 407-0789 (domestic) or (201) 689-8562 (international). The call will be available for replay until August 21, 2019. The replay can be accessed by dialing (844) 512-2921, or for international callers, (412) 317-6671. The passcode for the live call and the replay is 13691816.

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 . 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 .

About Atkore International Group Inc.

Atkore International Group Inc. is a leading manufacturer of Electrical Raceway products primarily for the non-residential construction and renovation markets and Mechanical Products & Solutions for the construction and industrial markets. The Company manufactures a broad range of end-to-end integrated products and solutions that are critical to its customers’ businesses and employs approximately 3,500 people at 58 manufacturing and distribution facilities worldwide. The Company is headquartered in Harvey, Illinois.

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 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 28, 2018 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; 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; changes in foreign laws and legal systems, including as a result of Brexit; adverse weather conditions; 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; 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 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; challenges attracting and retaining key personnel or high-quality employees; 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; 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; our inability to introduce new products effectively or implement our innovation strategies; the inability of our customers to pay off the credit lines extended to them by us in a timely manner and the negative impact on customer relations resulting from our collections efforts with respect to non-paying or slow-paying customers; our inability to continue importing raw materials, component parts and/or finished goods; changes as a result of comprehensive tax reform; 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 liabilities in connection with violations of the U.S. Foreign Corrupt Practices Act and similar foreign anti-corruption laws; the incurrence of additional expenses, increase in 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; and other 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 and 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: depreciation and amortization, interest expense, net, loss (gain) on extinguishment of debt, income tax expense (benefit), restructuring and impairments, stock-based compensation, certain legal matters, transaction costs, gain on sale of a business and other items, such as inventory reserves and adjustments and realized or unrealized gain (loss) on foreign currency transactions. We believe Adjusted EBITDA, when presented in conjunction with comparable accounting principles generally accepted in the United States of America ("GAAP") measures, is useful for investors because management uses Adjusted EBITDA in evaluating the performance of our business. We define Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Net sales.

We believe Adjusted EBITDA, when presented in conjunction with comparable accounting principles generally accepted in the United States of America ("GAAP") measures, is useful for investors because management uses Adjusted EBITDA 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 consulting fees, loss on extinguishment of debt, stock-based compensation, intangible asset amortization, gain on sale of joint venture, certain legal matters and other items. We define Adjusted net income per share as basic and diluted earnings per share excluding the per share impact of consulting fees, loss on extinguishment of debt, stock-based compensation, intangible asset amortization, gain on sale of joint venture, certain legal matters and other items. Beginning in March 2018, the Company has excluded the impact of intangible asset amortization from the calculation of Adjusted net income. Adjusted net income prepared for periods prior to March 2018 have also been adjusted to reflect this change.

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.

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

 

 

 

Three months ended

 

Nine months ended

 

June 28, 2019

 

June 29, 2018

 

June 28, 2019

 

June 29, 2018

Net sales

 

$

493,491

 

 

$

498,014

 

 

$

1,414,828

 

 

$

1,357,572

 

Cost of sales

 

367,357

 

 

377,685

 

 

1,061,350

 

 

1,031,219

 

Gross profit

 

126,134

 

 

120,329

 

 

353,478

 

 

326,353

 

Selling, general and administrative

 

59,049

 

 

57,482

 

 

171,778

 

 

169,195

 

Intangible asset amortization

 

7,868

 

 

7,694

 

 

24,278

 

 

24,146

 

Operating income

 

59,217

 

 

55,153

 

 

157,422

 

 

133,012

 

Interest expense, net

 

12,789

 

 

12,442

 

 

38,277

 

 

28,322

 

Other (income) expense, net

 

(1,228

)

 

(1,840

)

 

(3,422

)

 

(27,516

)

Income before income taxes

 

47,656

 

 

44,551

 

 

122,567

 

 

132,206

 

Income tax expense

 

11,106

 

 

10,352

 

 

29,513

 

 

28,260

 

Net income

 

$

36,550

 

 

$

34,199

 

 

$

93,054

 

 

$

103,946

 

 

 

 

 

 

 

 

 

 

Net income per share

 

 

 

 

 

 

 

 

Basic

 

$

0.77

 

 

$

0.73

 

 

$

1.95

 

 

$

1.92

 

Diluted

 

$

0.75

 

 

$

0.70

 

 

$

1.90

 

 

$

1.84

 

 

 

 

 

 

 

 

 

 

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

 

June 28, 2019

 

September 30, 2018

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

100,734

 

 

$

126,662

 

Accounts receivable, less allowance for doubtful accounts of $1,448 and $1,762, respectively

 

322,156

 

 

265,147

 

Inventories, net

 

224,771

 

 

221,753

 

Prepaid expenses and other current assets

 

43,225

 

 

33,576

 

Total current assets

 

690,886

 

 

647,138

 

Property, plant and equipment, net

 

237,565

 

 

213,108

 

Intangible assets, net

 

291,188

 

 

291,916

 

Goodwill

 

189,050

 

 

170,129

 

Deferred tax assets

 

1,074

 

 

162

 

Other long-term assets

 

3,251

 

 

1,607

 

Total Assets

 

$

1,413,014

 

 

$

1,324,060

 

Liabilities and Equity

 

 

 

 

Current Liabilities:

 

 

 

 

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

 

$

—

 

 

$

26,561

 

Accounts payable

 

152,898

 

 

156,525

 

Income tax payable

 

1,082

 

 

542

 

Accrued compensation and employee benefits

 

29,153

 

 

33,350

 

Customer liabilities

 

42,922

 

 

3,377

 

Other current liabilities

 

42,963

 

 

52,392

 

Total current liabilities

 

269,018

 

 

272,747

 

Long-term debt

 

884,503

 

 

877,686

 

Deferred tax liabilities

 

26,749

 

 

16,510

 

Other long-term tax liabilities

 

894

 

 

1,443

 

Pension liabilities

 

15,068

 

 

17,075

 

Other long-term liabilities

 

14,264

 

 

16,540

 

Total Liabilities

 

1,210,496

 

 

1,202,001

 

Equity:

 

 

 

 

Common stock, $0.01 par value, 1,000,000,000 shares authorized, 46,676,788 and 47,079,645 shares issued and outstanding, respectively

 

468

 

 

472

 

Treasury stock, held at cost, 260,900 and 260,900 shares, respectively

 

(2,580

)

 

(2,580

)

Additional paid-in capital

 

472,138

 

 

457,978

 

Accumulated deficit

 

(246,393

)

 

(317,373

)

Accumulated other comprehensive loss

 

(21,115

)

 

(16,438

)

Total Equity

 

202,518

 

 

122,059

 

Total Liabilities and Equity

 

$

1,413,014

 

 

$

1,324,060

 

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Nine months ended

 

June 28, 2019

 

June 29, 2018

Operating activities:

 

 

 

 

Net income

 

$

93,054

 

 

$

103,946

 

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

 

 

 

 

Depreciation and amortization

 

54,061

 

 

49,255

 

Deferred income taxes

 

1,882

 

 

(4,354

)

Gain on sale of a business

 

—

 

 

(27,575

)

Stock-based compensation

 

8,936

 

 

9,828

 

Other adjustments to net income

 

3,857

 

 

4,642

 

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

 

 

 

 

Accounts receivable

 

(4,190

)

 

(40,160

)

Inventories

 

5,032

 

 

(18,038

)

Accounts payable

 

(11,218

)

 

29,420

 

Other, net

 

(31,235

)

 

13,614

 

Net cash provided by operating activities

 

120,179

 

 

120,578

 

Investing activities:

 

 

 

 

Capital expenditures

 

(21,611

)

 

(26,314

)

Divestiture of business

 

—

 

 

42,631

 

Acquisition of businesses, net of cash acquired

 

(83,385

)

 

(3,350

)

Other, net

 

(194

)

 

1,475

 

Net cash (used in) provided by investing activities

 

(105,190

)

 

14,442

 

Financing activities:

 

 

 

 

Borrowings under credit facility

 

39,000

 

 

309,000

 

Repayments under credit facility

 

(39,000

)

 

(394,000

)

Repayments of short-term debt

 

(20,980

)

 

(5,850

)

Repayments of long-term debt

 

—

 

 

(1,217

)

Issuance of long-term debt

 

—

 

 

426,217

 

Payment for debt financing costs and fees

 

—

 

 

(5,801

)

Issuance of common stock

 

5,232

 

 

10,874

 

Repurchase of common stock

 

(24,419

)

 

(410,157

)

Other, net

 

(105

)

 

(114

)

Net cash used for financing activities

 

(40,272

)

 

(71,048

)

Effects of foreign exchange rate changes on cash and cash equivalents

 

(645

)

 

(171

)

(Decrease) increase in cash and cash equivalents

 

(25,928

)

 

63,801

 

Cash and cash equivalents at beginning of period

 

126,662

 

 

45,718

 

Cash and cash equivalents at end of period

 

$

100,734

 

 

$

109,519

 

Supplementary Cash Flow information

 

 

 

 

Capital expenditures, not yet paid

 

$

767

 

 

$

363

 

ATKORE INTERNATIONAL GROUP INC.

ADJUSTED EBITDA

 

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

 

 

 

Three months ended

 

Nine months ended

 

June 28, 2019

 

June 29, 2018

 

June 28, 2019

 

June 29, 2018

Net income

 

$

36,550

 

 

$

34,199

 

 

$

93,054

 

 

$

103,946

 

Interest expense, net

 

12,789

 

 

12,442

 

 

38,277

 

 

28,322

 

Income tax expense

 

11,106

 

 

10,352

 

 

29,513

 

 

28,260

 

Depreciation and amortization

 

17,760

 

 

16,192

 

 

54,061

 

 

49,255

 

Restructuring and impairments

 

709

 

 

407

 

 

3,181

 

 

1,245

 

Stock-based compensation

 

4,120

 

 

3,494

 

 

8,936

 

 

9,828

 

Certain legal matters

 

—

 

 

—

 

 

—

 

 

2,286

 

Transaction costs

 

76

 

 

768

 

 

363

 

 

2,676

 

Gain on sale of a business

 

—

 

 

(838

)

 

—

 

 

(27,575

)

Other (a)

 

5,371

 

 

(352

)

 

8,213

 

 

2,249

 

Adjusted EBITDA

 

$

88,481

 

 

$

76,664

 

 

$

235,598

 

 

$

200,492

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, realized or unrealized gain (loss) on foreign currency transactions and release of certain indemnified uncertain tax positions.

ATKORE INTERNATIONAL GROUP INC.

SEGMENT INFORMATION

 

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

 

 

Three months ended

 

June 28, 2019

 

June 29, 2018

Net sales

 

Adjusted EBITDA

 

Adjusted EBITDA Margin

 

Net sales

 

Adjusted EBITDA

 

Adjusted EBITDA Margin

Electrical Raceway

$

373,229

 

 

$

76,721

 

 

20.6

%

 

$

370,333

 

 

$

74,461

 

 

20.1

%

Mechanical Products & Solutions

120,596

 

 

20,595

 

 

17.1

%

 

128,239

 

 

12,013

 

 

9.4

%

Eliminations

(334

)

 

 

 

 

 

(558

)

 

 

 

 

Consolidated operations

$

493,491

 

 

 

 

 

 

$

498,014

 

 

 

 

 

 

Nine months ended

 

June 28, 2019

 

June 29, 2018

Net sales

 

Adjusted EBITDA

 

Adjusted EBITDA Margin

 

Net sales

 

Adjusted EBITDA

 

Adjusted EBITDA Margin

Electrical Raceway

$

1,070,149

 

 

$

212,585

 

 

19.9

%

 

$

1,011,643

 

 

$

187,025

 

 

18.5

%

Mechanical Products & Solutions

345,599

 

 

48,903

 

 

14.2

%

 

347,123

 

 

39,544

 

 

11.4

%

Eliminations

(920

)

 

 

 

 

 

(1,194

)

 

 

 

 

Consolidated operations

$

1,414,828

 

 

 

 

 

 

$

1,357,572

 

 

 

 

 

ATKORE INTERNATIONAL GROUP 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

 

June 28, 2019

 

June 29, 2018

 

June 28, 2019

 

June 29, 2018

Net income

 

$

36,550

 

 

$

34,199

 

 

$

93,054

 

 

$

103,946

 

Stock-based compensation

 

4,120

 

 

3,494

 

 

8,936

 

 

9,828

 

Intangible asset amortization

 

7,868

 

 

7,694

 

 

24,278

 

 

24,146

 

Gain on sale of a business

 

—

 

 

(838

)

 

—

 

 

(27,575

)

Certain legal matters

 

—

 

 

—

 

 

—

 

 

2,286

 

Other (a)

 

5,371

 

 

(352

)

 

8,213

 

 

2,249

 

Pre-tax adjustments to net income

 

17,359

 

 

9,998

 

 

41,427

 

 

10,934

 

Tax effect

 

(4,253

)

 

(2,599

)

 

(10,150

)

 

(2,843

)

Adjusted net income

 

$

49,656

 

 

$

41,598

 

 

$

124,331

 

 

$

112,037

 

 

 

 

 

 

 

 

 

 

Weighted-Average Diluted Common Shares Outstanding

 

47,557

 

 

48,412

 

 

47,735

 

 

56,015

 

Net income per diluted share

 

$

0.75

 

 

$

0.70

 

 

$

1.90

 

 

$

1.84

 

Adjusted net income per diluted share

 

$

1.04

 

 

$

0.86

 

 

$

2.60

 

 

$

2.00

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, realized or unrealized gain (loss) on foreign currency transactions and release of certain indemnified uncertain tax positions.

ATKORE INTERNATIONAL GROUP INC.

LEVERAGE RATIO

 

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

 

June 28, 2019

 

March 29, 2019

 

December 28, 2018

 

September 30, 2018

 

September 30, 2017

 

September 30, 2016

 

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

$

—

 

 

$

—

 

 

$

26,561

 

 

$

26,561

 

 

$

4,215

 

 

$

1,267

 

 

Long-term debt

884,503

 

 

884,095

 

 

878,094

 

 

877,686

 

 

571,863

 

 

629,046

 

 

Total debt

884,503

 

 

884,095

 

 

904,655

 

 

904,247

 

 

576,078

 

 

630,313

 

 

Less cash and cash equivalents

100,734

 

 

51,498

 

 

75,919

 

 

126,662

 

 

45,718

 

 

200,279

 

 

Net debt

$

783,769

 

 

$

832,597

 

 

$

828,736

 

 

$

777,585

 

 

$

530,360

 

 

$

430,034

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TTM Adjusted EBITDA (a)

$

306,656

 

 

$

294,839

 

 

$

283,086

 

 

$

271,549

 

 

$

227,608

 

 

$

235,002

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt/TTM Adjusted EBITDA

2.9

 

x

3.0

 

x

3.2

 

x

3.3

 

x

2.5

 

x

2.7

 

x

Net debt/TTM Adjusted EBITDA

2.6

 

x

2.8

 

x

2.9

 

x

2.9

 

x

2.3

 

x

1.8

 

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 29, 2019 can be found in Exhibit 99.1 to form 8-K filed May 7, 2019 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended December 28, 2018 can be found in Exhibit 99.1 to form 8-K filed February 6, 2019 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the years ended September 30, 2018, September 30, 2017 and September 30, 2016 can be found in Exhibit 99.1 to form 8-K filed November 28, 2018 and is incorporated by reference herein.

ATKORE INTERNATIONAL GROUP INC.

TRAILING TWELVE MONTHS ADJUSTED EBITDA

 

The following table presents a reconciliation of Adjusted EBITDA for the trailing twelve months ended June 28, 2019:

 

 

TTM

 

Three months ended

June 28, 2019

 

June 28, 2019

 

March 29, 2019

 

December 28, 2018

 

September 30, 2018

Net income

$

125,753

 

 

$

36,550

 

 

$

29,555

 

 

$

26,949

 

 

$

32,699

 

Interest expense, net

50,649

 

 

12,789

 

 

13,328

 

 

12,160

 

 

12,372

 

Income tax expense

30,960

 

 

11,106

 

 

10,253

 

 

8,154

 

 

1,447

 

Depreciation and amortization

71,698

 

 

17,760

 

 

18,280

 

 

18,021

 

 

17,637

 

Restructuring and impairments

3,785

 

 

709

 

 

1,085

 

 

1,387

 

 

604

 

Stock-based compensation

13,772

 

 

4,120

 

 

1,834

 

 

2,982

 

 

4,836

 

Certain legal matters

(7,119

)

 

—

 

 

—

 

 

—

 

 

(7,119

)

Transaction costs

7,001

 

 

76

 

 

123

 

 

164

 

 

6,638

 

Other(a)

10,157

 

 

5,371

 

 

2,636

 

 

206

 

 

1,944

 

Adjusted EBITDA

$

306,656

 

 

$

88,481

 

 

$

77,094

 

 

$

70,023

 

 

$

71,058

 

 

 

 

 

 

 

 

 

 

 

(a) Represents other items, such as inventory reserves and adjustments, realized or unrealized gain (loss) on foreign currency transactions and release of certain indemnified uncertain tax positions.

 

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

Source: Atkore International Group Inc.



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