Fourth-Quarter Highlights
- Net income per diluted share decreased to $3.63 from $5.18 in
prior year period; Adjusted net income per diluted share decreased
to $4.21 from $5.52 in prior year period
- Net income decreased by $79.9 million versus prior year period
to $140.9 million; Adjusted EBITDA decreased by $93.1 million
versus prior year period to $232.0 million
Fiscal 2023 Highlights
- Net income per diluted share decreased to $17.27 from $20.30 in
prior year; Adjusted net income per diluted share decreased to
$19.40 from $21.55 in prior year
- Net income decreased by $223.5 million versus prior year to
$689.9 million; Adjusted EBITDA decreased to $1,042.1 million from
$1,341.8 million in prior year
- Net cash provided by operating activities of $807.6 million;
Free Cash Flow of $588.7 million
Additional Highlights
- The Board of Directors approves a new quarterly dividend
program to be added to the capital deployment model; the Company
expects the first quarterly cash distribution to be considered,
declared and paid in calendar Q1 2024, following Atkore’s fiscal Q1
2024 earnings announcement.
- Full-year 2024 Net sales expected to be in the range of $3.50 -
$3.65 billion
- Full-year 2024 Adjusted EBITDA outlook of $900 - $950 million;
Full-year Adjusted net income per diluted share outlook of $16.00 -
$17.00
- Maintaining Full-Year Adjusted net income per diluted share
goal of greater than $18.00 in fiscal year 2025
Atkore Inc. (the “Company” or “Atkore”) (NYSE: ATKR) announced
earnings for its fiscal 2023 full year and fourth quarter ended
September 30, 2023 (“fourth quarter”).
“Atkore achieved solid results for fiscal 2023, as we continued
to successfully execute on our strategic initiatives and deliver
differentiated value to our customers,” said Bill Waltz, Atkore
President and Chief Executive Officer. “As our performance and
financial results continue to normalize after our significant
levels of outperformance and record results in fiscal 2022, we are
encouraged by the resilience of our business model, and the
differentiated value that our product portfolio provides to our
customers. We believe that we have transformed, diversified and
elevated the profitability of this business since our initial
public offering.”
Waltz continued, “In addition, I am proud of our disciplined
approach to capital allocation. We have made great progress
investing in the future of our Company while continuing to return
cash to shareholders by executing over $990 million in share
repurchases since the program was authorized in November 2021. The
Board’s addition of a new quarterly dividend program is an exciting
next step for Atkore and our shareholders.”
2023 Fourth Quarter
Results
Three Months Ended
(in thousands)
September 30, 2023
September 30, 2022
Change
Change %
Net sales
Electrical
$
649,787
$
795,220
$
(145,433
)
(18.3
)%
Safety & Infrastructure
220,239
233,884
(13,645
)
(5.8
)%
Eliminations
(137
)
(118
)
(19
)
16.1
%
Consolidated operations
$
869,889
$
1,028,986
$
(159,097
)
(15.5
)%
Net income
$
140,925
$
220,802
$
(79,877
)
(36.2
)%
Adjusted EBITDA
Electrical
$
237,577
$
308,783
$
(71,206
)
(23.1
)%
Safety & Infrastructure
15,139
36,371
(21,232
)
(58.4
)%
Unallocated
(20,738
)
(20,067
)
(671
)
3.3
%
Consolidated operations
$
231,978
$
325,085
$
(93,107
)
(28.6
)%
Net sales for the fourth quarter of 2023 decreased to $869.9
million, a decrease of 15.5% compared to $1,029.0 million for the
prior-year period. The decrease was primarily due to lower average
selling prices of $173.8 million as the result of expected pricing
normalization and the economic value of solar tax credits to be
transferred to certain customers of $14.5 million. These decreases
were partially offset by higher sales volume of $19.2 million from
entities acquired during fiscal 2022 and 2023 of $10.4 million.
Gross profit decreased by $113.0 million to $301.5 million for
the fourth quarter of 2023, as compared to $414.5 million for the
prior-year period. Gross margins decreased from 40.3% in the prior
year period to 34.7%. Gross profit and gross profit margin
decreased due to declines in average selling prices of $173.8
million, partially offset by slower declines in the costs of steel,
copper and resin of $90.9 million.
Net income decreased $79.9 million to $140.9 million for the
fourth quarter of 2023, as compared to $220.8 million for the
prior-year period, due to lower operating income of $107.4 million,
partially offset by decreased income taxes of $27.0 million.
Adjusted net income decreased $70.5 million to $161.0 million
compared to $231.6 million for the prior-year period.
Adjusted EBITDA decreased $93.1 million, or 28.6%, to $232.0
million for the fourth quarter of 2023, as compared to $325.1
million for the prior-year period. Net income margin decreased from
21.5% in the prior-year period to 16.2% and Adjusted EBITDA Margin
decreased 490 basis points from 31.6% to 26.7%.
Net income per diluted share was $3.63 for the fourth quarter of
2023, a decrease of $1.55 from the prior-year period. Adjusted net
income per diluted share was $4.21 per share for the fourth quarter
of 2023 compared to $5.52 for the prior-year period.
Segment Results
Electrical
Electrical net sales decreased $145.4 million, or 18.3%, to
$649.8 million for the fourth quarter of 2023, as compared to
$795.2 million for the prior-year period. The decrease in net sales
is primarily attributed to decreased average selling prices of
$133.4 million as a result of expected pricing normalization and
decreased volume of $23.1 million, partially offset by increased
sales from companies acquired in fiscal 2022 and 2023 of $9.8
million.
Adjusted EBITDA decreased $71.2 million, or 23.1%, to $237.6
million for the fourth quarter of 2023, as compared to $308.8
million for the prior-year period, and Adjusted EBITDA Margin
decreased from 38.8% to 36.6%. The decrease in Adjusted EBITDA was
largely due to lower average selling prices over input costs.
Safety & Infrastructure
Safety & Infrastructure net sales decreased $13.6 million,
or 5.8%, to $220.2 million for the fourth quarter of 2023, as
compared to $233.9 million for the prior-year period. The decrease
is attributed to lower average selling prices of $40.4 million and
the economic value of solar tax credits to be transferred to
certain customers of $14.5 million partially offset by higher
volumes of $42.4 million.
Adjusted EBITDA decreased $21.2 million, or 58.4%, to $15.1
million for the fourth quarter of 2023, as compared to $36.4
million for the prior-year period. Adjusted EBITDA Margin decreased
to 6.9% from 15.6%. The Adjusted EBITDA decrease was largely due to
lower average selling prices over input costs and the impacts of
solar tax credit accounting.
Fiscal 2023 Full-Year Results
Net sales for fiscal 2023 decreased $395.2 million to $3,518.8
million, a decrease of 10.1%, compared to $3,913.9 million for
fiscal 2022. The decrease in net sales is primarily attributed to
decreased average selling prices of $646.6 million, the economic
value of solar tax credits to be transferred to certain customers
of $30.4 million and the unfavorable impact of foreign exchange
rates of $15.1 million. These decreases are partially offset by
increased net sales of $168.9 million from companies acquired
during fiscal 2022 and 2023 and increased sales volume of $125.1
million across varying product categories within both the
Electrical and the Safety & Infrastructure segments.
Gross profit for fiscal 2023 decreased $300.5 million to
$1,339.5 million, a decrease of 18.3%, compared to $1,640.0 million
for fiscal 2022. Gross margin decreased to 38.1% in fiscal 2023
compared to 41.9% in fiscal 2022 due to declines in average selling
prices of $646.6 million, partially offset by slower declines in
the input costs of steel, copper and PVC resin of $337.8
million.
Net income decreased $223.5 million to $689.9 million for fiscal
2023, as compared to $913.4 million for fiscal 2022. Adjusted net
income decreased $191.1 million to $763.0 million for fiscal 2023
compared to $954.1 million for fiscal 2022. The decrease in both
net income and adjusted net income was primarily driven by lower
operating income of $340.3 million.
Adjusted EBITDA decreased $299.7 million or 22.3%, to $1,042.1
million for fiscal 2023, as compared to $1,341.8 million for fiscal
2022. The decrease was primarily due to lower operating income.
Net income per diluted share on a GAAP basis was $17.27 for
fiscal 2023, a decrease of $3.03 from fiscal 2022. Adjusted net
income per diluted share was $19.40 for fiscal 2023 compared to
$21.55 for fiscal 2022.
Liquidity & Capital Resources
During fiscal 2023, operating activities provided $807.6 million
of cash, compared to $786.8 million during fiscal year 2022. Free
cash flow decreased to $588.7 million for fiscal 2023 from $651.1
million in fiscal year 2022. The increase in cash provided by
operating activities was primarily driven by less cash used in
working capital of $105.8 million and tax impacts of $229.3
million, partially offset by lower operating income of $340.3
million. The decrease in free cash flow was primarily due to
additional capital expenditures during fiscal 2023 of $83.1 million
when compared to the prior fiscal year, partially offset by the
increase in operating cash.
During fiscal 2023, the Company deployed $83.4 million on the
acquisition of Elite Polymer Solutions with an additional $14.0
million to be paid in the future, repurchased $491.0 million in
outstanding shares and had capital expenditures of $218.9
million.
The Board of Directors has approved a new quarterly dividend
program to be added to the Company’s capital deployment model. The
Company expects the first quarterly cash distribution to be
considered, declared and paid in calendar Q1 2024, following
Atkore’s fiscal Q1 2024 earnings announcement. All dividend
declarations are subject to approval by the Board of Directors.
Compliance with any applicable financial hurdles and the details of
future dividend declarations, including the amount, timing and
establishment of the record and payment dates, will be determined
by the Board of Directors.
Outlook and Targets1
Fiscal 2024 First Quarter - The Company expects the first
quarter of fiscal 2024 Adjusted EBITDA to be in the range of $200 -
$210 million and Adjusted net income per diluted share to be in the
range of $3.50 - $3.70.
Fiscal 2024 Full Year - The Company expects fiscal year 2024
Adjusted EBITDA to be in the range of $900-$950 million and
Adjusted net income per diluted share to be in the range of $16.00
- $17.00.
Fiscal 2025 Full Year Goal - The Company is maintaining its
fiscal 2025 Adjusted net income per diluted share target of greater
than $18.00.
The Company notes that the outlook and target information
provided may vary due to changes in assumptions or market
conditions and other factors described under “Forward-Looking
Statements.”
Conference Call Information
Atkore management will host a conference call today, November
17, 2023, at 8 a.m. Eastern time, to discuss the Company’s
financial results, provide a business update and long-term
financial targets. The conference call may be accessed by dialing
(888) 330-2446 (domestic) or (240) 789-2732 (international). The
call will be available for replay until December 1, 2023. The
replay can be accessed by dialing (800) 770-2030, or for
international callers, (647) 362-9199. The passcode for the live
call and the replay is 5592214.
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
http://investors.atkore.com. 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 http://investors.atkore.com.
_________________________
1 Reconciliations of the forward-looking
full-year and fiscal first quarter outlook and target 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. Accordingly, we are relying on the exception
provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these
reconciliations.
About Atkore Inc.
Atkore is a leading manufacturer of electrical products for
commercial, industrial, data center, telecommunications, and solar
applications. With 5,600 employees and $3.5B in sales in fiscal
year 2023, we deliver sustainable solutions to meet the growing
demands of electrification and digital transformation. To learn
more, please visit www.atkore.com.
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 or referenced 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 17, 2023 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; widespread outbreak of diseases, such as the novel
coronavirus (COVID-19) pandemic; 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; adverse weather conditions; 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, including inability or unwillingness to pay our
invoices on time, 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; 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 and changes in our business and
valuation assumptions; 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; changes in foreign laws and legal systems,
including as a result of Brexit; our inability to introduce new
products effectively or implement our innovation strategies; our
inability to continue importing raw materials, component parts
and/or finished goods; 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 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; failure to generate
the significant amount of cash needed to pay dividends; challenges
attracting and retaining key personnel or high-quality employees;
future changes to tax legislation; 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; 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 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 income
taxes, adjusted to exclude unallocated expenses, depreciation and
amortization, interest expense, net, stock-based compensation, loss
on extinguishment of debt, certain legal matters, and other items,
such as inventory reserves and adjustments, loss on disposal of
property, plant and equipment, insurance recovery related to
damages of property, plant and equipment, release of indemnified
uncertain tax positions, realized or unrealized gain (loss) on
foreign currency impacts of intercompany loans and related forward
currency derivatives, gain on purchase of business, loss on assets
held for sale, restructuring costs and transaction costs. We define
Adjusted EBITDA Margin as Adjusted EBITDA as a percentage of Net
sales.
We believe Adjusted EBITDA and Adjusted EBITDA Margin, when
presented in conjunction with comparable GAAP measures, are useful
for investors because management uses Adjusted EBITDA and Adjusted
EBITDA Margin 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 stock-based compensation, loss on
extinguishment of debt, loss on assets held for sale, intangible
asset amortization, gain on purchase of a business, certain legal
matters and other items, and the income tax expense or benefit on
the foregoing adjustments that are subject to income tax. We define
Adjusted net income per share as basic and diluted net income per
share excluding the per share impact of gain (loss) on
extinguishment of debt, stock-based compensation, intangible asset
amortization, gain on sale of a business, certain legal matters and
other items, and the income tax expense or benefit on the foregoing
adjustments that are subject to income tax.
Free Cash Flow
We define Free Cash Flow as net cash provided by operating
activities less capital expenditures. We believe that Free Cash
Flow provides meaningful information regarding the Company’s
liquidity.
ATKORE INC.
CONSOLIDATED STATEMENTS OF
OPERATIONS
Three Months Ended
Fiscal Year Ended
(in thousands,
except per share data)
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net sales
$
869,889
$
1,028,986
$
3,518,761
$
3,913,949
Cost of sales
568,424
614,508
2,179,260
2,273,924
Gross profit
301,465
414,478
1,339,501
1,640,025
Gross Margin
34.7
%
40.3
%
38.1
%
41.9
%
Selling, general and administrative
97,008
107,023
388,206
370,044
Intangible asset amortization
15,027
10,622
57,804
36,176
Operating income
189,430
296,833
893,491
1,233,805
Interest expense, net
8,588
9,000
35,232
30,676
Other expense (income), net
380
474
7,969
(490
)
Income before income taxes
180,462
287,359
850,290
1,203,620
Income tax expense
39,537
66,557
160,391
290,186
Net income
$
140,925
$
220,802
$
689,899
$
913,434
Net income per share
Basic
$
3.68
$
5.24
$
17.51
$
20.56
Diluted
$
3.63
$
5.18
$
17.27
$
20.30
ATKORE INC.
CONSOLIDATED BALANCE
SHEETS
(in thousands,
except share and per share data)
September 30, 2023
September 30, 2022
Assets
Current Assets:
Cash and cash equivalents
$
388,114
$
388,751
Accounts receivable, less allowance for
current and expected credit losses of $5,179 and $2,544,
respectively
559,854
528,904
Inventories, net
493,852
454,511
Prepaid expenses and other current
assets
96,670
80,654
Total current assets
1,538,490
1,452,820
Property, plant and equipment, net
559,041
390,220
Intangible assets, net
394,372
382,706
Goodwill
311,106
289,330
Right-of-use assets, net
120,747
71,035
Deferred income taxes
546
9,409
Other long-term assets
10,707
3,476
Total Assets
$
2,935,009
$
2,598,996
Liabilities and Equity
Current Liabilities:
Accounts payable
$
292,734
$
244,100
Income tax payable
6,322
5,521
Accrued compensation and employee
benefits
45,576
61,273
Customer liabilities
121,576
99,447
Lease obligations
16,230
13,789
Other current liabilities
82,166
77,781
Total current liabilities
564,604
501,911
Long-term debt
762,687
760,537
Long-term lease obligations
105,517
57,975
Deferred income taxes
22,346
15,640
Other long-term liabilities
11,736
13,146
Total Liabilities
1,466,890
1,349,209
Equity:
Common stock, $0.01 par value,
1,000,000,000 shares authorized, 37,317,893 and 41,351,350 shares
issued and outstanding, respectively
374
415
Treasury stock, held at cost, 0 and
260,900 shares, respectively
—
(2,580
)
Additional paid-in capital
506,783
500,117
Retained earnings
994,902
801,981
Accumulated other comprehensive loss
(33,940
)
(50,146
)
Total Equity
1,468,119
1,249,787
Total Liabilities and Equity
$
2,935,009
$
2,598,996
ATKORE INC.
CONSOLIDATED STATEMENTS OF
CASH FLOWS
(in
thousands)
September 30, 2023
September 30, 2022
Operating activities
Net income
$
689,899
$
913,434
Adjustments to reconcile net income to net
cash provided by operating activities
Depreciation and amortization
115,524
84,415
Amortization of debt issuance costs and
original issue discount
2,151
2,151
Deferred income taxes
12,860
3,054
Provision for losses on accounts
receivable and inventory
5,269
10,235
Stock-based compensation expense
21,101
17,245
Amortization of right of use asset
20,321
13,916
Other adjustments to net income
7,481
4,850
Changes in operating assets and
liabilities, net of effects from acquisitions
Accounts receivable
(30,278
)
17,749
Inventories
(42,419
)
(160,980
)
Prepaid expenses and other current
assets
(11,152
)
(21,718
)
Accounts payable
32,298
(28,968
)
Income taxes
(3,088
)
(92,802
)
Accrued and other liabilities
(10,176
)
27,198
Other, net
(2,157
)
(2,944
)
Net cash provided by operating
activities
807,634
786,835
Investing activities
Capital expenditures
(218,888
)
(135,776
)
Proceeds from sale of properties, plant
and equipment
123
779
Acquisitions of businesses, net of cash
acquired
(83,385
)
(307,805
)
Net cash used for investing activities
(302,150
)
(442,802
)
Financing activities
Issuance of common stock, net of taxes
withheld
(14,428
)
(24,045
)
Repurchase of common stock
(491,033
)
(500,161
)
Finance lease payments
(1,320
)
—
Net cash used for financing activities
(506,781
)
(524,206
)
Effects of foreign exchange rate changes
on cash and cash equivalents
661
(7,365
)
Increase (decrease) in cash and cash
equivalents
(637
)
(187,538
)
Cash and cash equivalents at beginning of
period
388,751
576,289
Cash and cash equivalents at end of
period
$
388,114
$
388,751
(in
thousands)
September 30, 2023
September 30, 2022
Supplementary Cash Flow information
Interest paid
$
43,670
30,529
Income taxes paid, net of refunds
150,934
379,769
Capital expenditures, not yet paid
7,893
8,653
Acquisitions of businesses, not yet
paid
13,625
12,628
Operating cash flows from cash paid on
operating lease liabilities
15,155
12,549
Operating lease right-of-use assets
obtained in exchange for lease liabilities
63,644
38,794
Free Cash Flow:
Net cash provided by operating
activities
807,634
786,835
Capital expenditures
(218,888
)
(135,776
)
Free Cash Flow:
588,746
651,059
ATKORE INC.
ADJUSTED EBITDA
The following table presents
reconciliations of Adjusted EBITDA to net income for the periods
presented:
Three Months Ended
Fiscal Year Ended
(in
thousands)
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net income
$
140,925
$
220,802
$
689,899
$
913,434
Income tax expense
39,537
66,557
160,391
290,186
Depreciation and amortization
30,853
23,947
115,524
84,415
Interest expense, net
8,588
9,000
35,232
30,676
Stock-based compensation
3,001
3,065
21,101
17,245
(Gain) loss on assets held for sale
(86
)
—
7,477
—
Transaction costs
35
150
968
3,424
Other (a)
9,125
1,564
11,535
2,410
Adjusted EBITDA
$
231,978
$
325,085
$
1,042,127
$
1,341,790
(a) Represents other items, such as
inventory reserves and adjustments, loss on disposal of property,
plant and equipment, insurance recovery related to damages of
property, plant and equipment, release of indemnified uncertain tax
positions and realized or unrealized gain (loss) on foreign
currency impacts of intercompany loans, certain legal matters,
restructuring charges, and related forward currency
derivatives.
The following table presents calculations of Adjusted EBITDA Margin
for Atkore Inc. for the periods presented:
Three Months Ended
Fiscal Year Ended
(in
thousands)
September 30, 2023
September 30, 2022
Change
% Change
September 30, 2023
September 30, 2022
Change
% Change
Net sales
$
869,889
$
1,028,986
$
(159,097
)
(15.5
)%
$
3,518,761
$
3,913,949
$
(395,188
)
(10.1
)%
Adjusted EBITDA
$
231,978
$
325,085
$
(93,107
)
(28.6
)%
$
1,042,127
$
1,341,790
$
(299,663
)
(22.3
)%
Adjusted EBITDA Margin
26.7
%
31.6
%
29.6
%
34.3
%
ATKORE INC.
SEGMENT
INFORMATION
The following tables represent
calculations of Adjusted EBITDA Margin by segment for the periods
presented:
Three Months Ended
September 30, 2023
September 30, 2022
(in
thousands)
Net sales
Adjusted EBITDA
Adjusted EBITDA Margin
Net sales
Adjusted EBITDA
Adjusted EBITDA Margin
Electrical
$
649,787
$
237,577
36.6
%
$
795,220
$
308,783
38.8
%
Safety & Infrastructure
220,239
$
15,139
6.9
%
233,884
$
36,371
15.6
%
Eliminations
(137
)
(118
)
Consolidated operations
$
869,889
$
1,028,986
Fiscal Year Ended
September 30, 2023
September 30, 2022
(in
thousands)
Net sales
Adjusted EBITDA
Adjusted EBITDA Margin
Net sales
Adjusted EBITDA
Adjusted EBITDA Margin
Electrical
$
2,675,074
$
1,004,853
37.6
%
$
3,013,755
$
1,273,410
42.3
%
Safety & Infrastructure
844,158
$
103,231
12.2
%
900,588
$
138,390
15.4
%
Eliminations
(471
)
(394
)
Consolidated operations
$
3,518,761
$
3,913,949
ATKORE 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
Fiscal Year Ended
(in thousands,
except per share data)
September 30, 2023
September 30, 2022
September 30, 2023
September 30, 2022
Net income
$
140,925
$
220,802
$
689,899
$
913,434
Stock-based compensation
3,001
3,065
21,101
17,245
Intangible asset amortization
15,027
10,622
57,804
36,176
(Gain) loss on assets held for sale
(86
)
—
7,477
—
Other (a)
8,888
692
11,058
799
Pre-tax adjustments to net income
26,830
14,379
97,440
54,220
Tax effect
(6,708
)
(3,595
)
(24,360
)
(13,555
)
Adjusted net income
$
161,047
$
231,586
$
762,979
$
954,099
Weighted-Average Diluted Common Shares
Outstanding
38,251
41,960
39,328
44,280
Net income per diluted share (b)
$
3.63
$
5.18
$
17.27
$
20.30
Adjusted net income per diluted share
(c)
$
4.21
$
5.52
$
19.40
$
21.55
(a) Represents other items, such as
inventory reserves and adjustments, loss on disposal of property,
plant and equipment, insurance recovery related to damages of
property, plant and equipment, release of indemnified uncertain tax
positions and realized or unrealized gain (loss) on foreign
currency impacts of intercompany loans and related forward currency
derivatives.
(b) The Company calculates basic and
diluted net income per common share using the two-class method.
Under the two-class method, net earnings are allocated to each
class of common stock and participating securities as if all the
net earnings for the period had been distributed. The Company's
participating securities consist of share-based payment awards that
contain a non-forfeitable right to receive dividends and therefore
are considered to participate in undistributed earnings with common
stockholders. Included within the calculation of net income per
diluted share is 10,637 and 14,460 of undistributed earnings
allocated to participating securities for fiscal years ended 2023
and 2022. Included within the calculation of net income per diluted
share is See Note 8, “Earnings Per Share” in our Annual Report on
Form 10-K.
(c) Adjusted net income per diluted share
is calculated by taking adjusted net income and divided by the
weighted-average diluted common shares outstanding.
ATKORE INC.
NET DEBT
The following table presents
reconciliations of Net Debt to Total Debt for the periods
presented:
(in
thousands)
September 30, 2023
September 30, 2022
September 30, 2021
Long-term debt
762,687
760,537
758,386
Total Debt
762,687
760,537
758,386
Less cash and cash equivalents
388,114
388,751
576,289
Net Debt
$
374,573
$
371,786
$
182,097
Adjusted EBITDA
$
1,042,127
$
1,341,790
$
897,547
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231117267938/en/
Media Contact: Lisa Winter Vice President -
Communications 708-225-2453 LWinter@atkore.com
Investor Contact: John Deitzer Vice President - Treasury
and Investor Relations 708-225-2124 JMDeitzer@atkore.com
Atkore (NYSE:ATKR)
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