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Atkore International Group Inc. Announces First Quarter 2020 Results

  • Diluted earnings per share increased by $0.17 to $0.71; Adjusted net income per diluted share increased by $0.20 to $0.94
  • Net income increased by $7.8 million, or 29.1%, to $34.8 million; Adjusted EBITDA increased by $7.7 million, or 11.0%, to $77.7 million
  • Full-year Adjusted EBITDA guidance increased to $340.0 million - $350.0 million
  • Full-year Adjusted net income per diluted share guidance increased to $3.95 - $4.05

Atkore International Group Inc. (the "Company" or "Atkore") (NYSE: ATKR) announced earnings for its fiscal 2020 first quarter ended December 27, 2019.

"I’m pleased to announce Atkore delivered strong first quarter financial results across multiple metrics," commented Bill Waltz, Atkore President and Chief Executive Officer. "Our focus on executing strategic priorities and taking care of customers has contributed toward solid volume growth, improved operational performance and solid earnings, which has resulted in greater value for our shareholders."

2020 First Quarter Results

 

 

 

Three months ended

(in thousands)

 

December 27,
2019

 

December 28,
2018

 

Change

 

% Change

Net sales

 

 

 

 

 

 

 

 

Electrical Raceway

 

$

341,376

 

 

$

343,406

 

 

$

(2,030

)

 

(0.6

)%

Mechanical Products & Solutions

 

106,660

 

 

108,813

 

 

(2,153

)

 

(2.0

)%

Eliminations

 

(588

)

 

(191

)

 

(397

)

 

207.9

%

Consolidated operations

 

$

447,448

 

 

$

452,028

 

 

$

(4,580

)

 

(1.0

)%

 

 

 

 

 

 

 

 

 

 

Adjusted EBITDA

 

 

 

 

 

 

 

 

Electrical Raceway

 

$

70,193

 

 

$

68,489

 

 

$

1,704

 

 

2.5

%

Mechanical Products & Solutions

 

16,654

 

 

10,887

 

 

5,767

 

 

53.0

%

Unallocated

 

(9,137

)

 

(9,353

)

 

216

 

 

(2.3

)%

Consolidated operations

 

$

77,710

 

 

$

70,023

 

 

$

7,687

 

 

11.0

%

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 three months ended December 28, 2018. The decrease is primarily attributed to $30.0 million of lower average selling prices resulting from lower commodity input costs of steel and resin. The decrease in net sales was partially offset by higher volume of $14.1 million primarily in the PVC electrical conduit and fittings product category sold within the Electrical Raceway segment, as well as, the mechanical pipe product category sold within the Mechanical Products & Solutions segment. Additionally, the decrease in net sales was partially offset by increased sales of $12.4 million from the acquisition of the assets of United Structural Products, LLC. ("US Tray") and Rocky Mountain Pipe ("Cor-Tek") and the acquisition of Flytec Systems Ltd. and its parent holding company, Modern Associates Ltd., in fiscal 2019 (together, the "2019 acquisitions").

Gross profit increased by $6.6 million, or 6.0%, to $116.8 million for the three months ended December 27, 2019, as compared to $110.3 million for the prior-year period. Gross margin increased to 26.1% for the three months ended December 27, 2019, as compared to 24.4% for the prior-year period. Gross margin increased primarily due to higher volume and operational efficiencies.

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 prior-year period primarily due to higher gross profit.

Adjusted EBITDA increased by $7.7 million, or 11.0%, to $77.7 million for the three months ended December 27, 2019 compared to $70.0 million for the three months ended December 28, 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") was $0.71 for the three months ended December 27, 2019, as compared to $0.54 in the prior-year period. Adjusted net income per diluted share increased by $0.20 to $0.94 for the three months ended December 27, 2019, as compared to $0.74 in the prior year period. The increase in diluted earnings per share and adjusted net income per share is primarily attributed to higher gross profit and the excess tax benefit associated with stock compensation.

Segment Results

Electrical Raceway

Net sales decreased by $2.0 million, or 0.6%, to $341.4 million for the three months ended December 27, 2019 compared to $343.4 million for the three months ended December 28, 2018. The decrease is primarily attributed to the pass-through impact of lower average selling prices of $19.1 million resulting from lower commodity input costs of steel and resin. The decrease in net sales was partially offset by the 2019 acquisitions, which contributed $12.4 million in sales for the three months ended December 27, 2019. Additionally, the decrease in net sales was offset by $6.7 million in higher volume, primarily in the PVC electrical conduit and fittings product category.

Adjusted EBITDA for the three months ended December 27, 2019 increased by $1.7 million, or 2.5%, to $70.2 million from $68.5 million for the three months ended December 28, 2018. Adjusted EBITDA margins increased to 20.6% for the three months ended December 27, 2019 compared to 19.9% for the three months ended December 28, 2018. The increase in Adjusted EBITDA was largely due to operational efficiencies, the contributions from the 2019 acquisitions, and incremental profit from higher volume.

Mechanical Products & Solutions ("MP&S")

Net sales decreased by $2.2 million, or 2.0%, for the three months ended December 27, 2019 to $106.7 million compared to $108.8 million for the three months ended December 28, 2018. The decrease is primarily attributed to the pass-through impact of lower average input costs of steel products of $10.8 million, partially offset by higher volume of $7.3 million primarily in the mechanical pipe product category.

Adjusted EBITDA increased by $5.8 million, or 53.0%, to $16.7 million for the three months ended December 27, 2019 compared to $10.9 million for the three months ended December 28, 2018. Adjusted EBITDA margins increased to 15.6% for the three months ended December 27, 2019 compared to 10.0% for the three months ended December 28, 2018. Adjusted EBITDA increased primarily due to higher volume, pricing strategies and operational efficiencies.

Full-Year 2020 Outlook

The Company is increasing its expectation of fiscal year 2020 Adjusted EBITDA to be in the range of $340.0 million - $350.0 million and its expectation of fiscal year 2020 Adjusted net income per diluted share to be in the range of $3.95 - $4.05.

Reconciliations of the forward-looking full-year 2020 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, February 4, 2020, 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 February 18, 2020. 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 13698169.

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.

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 3,900 people at 65 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 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 22, 2019 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; recent and future changes to tax legislation; 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; 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 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, income tax expense (benefit), restructuring charges, stock-based compensation, certain legal matters, transaction costs, gain on purchase of a business and other items, such as inventory reserves, adjustments and realized or unrealized gain (loss) on foreign currency transactions, and release of certain indemnified uncertain tax positions. 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 accounting principles generally accepted in the United States of America ("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, intangible asset amortization, 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 earnings per share excluding the per share impact of stock-based compensation, intangible asset amortization, certain legal matters and other items, and the income tax expense or benefit on the foregoing adjustments that are subject to income tax.

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

(in thousands, except per share data)

 

December 27,
2019

 

December 28,
2018

Net sales

 

$

447,448

 

 

$

452,028

 

Cost of sales

 

330,604

 

 

341,772

 

Gross profit

 

116,844

 

 

110,256

 

Selling, general and administrative

 

56,215

 

 

56,379

 

Intangible asset amortization

 

8,113

 

 

8,214

 

Operating income

 

52,516

 

 

45,663

 

Interest expense, net

 

10,620

 

 

12,160

 

Other income, net

 

(234

)

 

(1,600

)

Income before income taxes

 

42,130

 

 

35,103

 

Income tax expense

 

7,340

 

 

8,154

 

Net income

 

$

34,790

 

 

$

26,949

 

 

 

 

 

 

Net income per share

 

 

 

 

Basic

 

$

0.72

 

 

$

0.56

 

Diluted

 

$

0.71

 

 

$

0.54

 

 

 

 

 

 

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED BALANCE SHEETS

(Unaudited)

 

(in thousands, except share and per share data)

 

December 27, 2019

 

September 30, 2019

Assets

 

 

 

 

Current Assets:

 

 

 

 

Cash and cash equivalents

 

$

164,135

 

 

$

123,415

 

Accounts receivable, less allowance for doubtful accounts of $2,992 and $2,608, respectively

 

291,880

 

 

315,353

 

Inventories, net

 

242,690

 

 

226,090

 

Prepaid expenses and other current assets

 

32,246

 

 

34,679

 

Total current assets

 

730,951

 

 

699,537

 

Property, plant and equipment, net

 

255,225

 

 

260,703

 

Intangible assets, net

 

279,748

 

 

285,684

 

Goodwill

 

188,105

 

 

186,231

 

Right-of-use assets, net

 

44,142

 

 

 

Deferred tax assets

 

735

 

 

577

 

Other long-term assets

 

1,236

 

 

4,263

 

Total Assets

 

$

1,500,142

 

 

$

1,436,995

 

Liabilities and Equity

 

 

 

 

Current Liabilities:

 

 

 

 

Accounts payable

 

132,868

 

 

150,681

 

Income tax payable

 

3,987

 

 

2,157

 

Accrued compensation and employee benefits

 

21,640

 

 

35,770

 

Customer liabilities

 

50,264

 

 

44,983

 

Lease obligations

 

12,605

 

 

 

Other current liabilities

 

58,646

 

 

53,943

 

Total current liabilities

 

280,010

 

 

287,534

 

Long-term debt

 

845,243

 

 

845,317

 

Long-term lease obligations

 

33,056

 

 

 

Deferred tax liabilities

 

23,402

 

 

19,986

 

Other long-term tax liabilities

 

848

 

 

3,669

 

Pension liabilities

 

33,513

 

 

34,509

 

Other long-term liabilities

 

11,939

 

 

13,044

 

Total Liabilities

 

1,228,011

 

 

1,204,059

 

Equity:

 

 

 

 

Common stock, $0.01 par value, 1,000,000,000 shares authorized, 47,478,557 and 46,955,163 shares issued and outstanding, respectively

 

476

 

 

471

 

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

 

(2,580

)

 

(2,580

)

Additional paid-in capital

 

477,276

 

 

477,139

 

Accumulated deficit

 

(166,659

)

 

(200,396

)

Accumulated other comprehensive loss

 

(36,382

)

 

(41,698

)

Total Equity

 

272,131

 

 

232,936

 

Total Liabilities and Equity

 

$

1,500,142

 

 

$

1,436,995

 

ATKORE INTERNATIONAL GROUP INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

 

 

 

Three months ended

(in thousands)

 

December 27,
2019

 

December 28,
2018

Operating activities:

 

 

 

 

Net income

 

$

34,790

 

 

$

26,949

 

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

 

 

 

 

Depreciation and amortization

 

18,730

 

 

18,021

 

Deferred income taxes

 

3,088

 

 

(1,306

)

Stock-based compensation

 

3,123

 

 

2,982

 

Amortization of right-of-use assets

 

3,627

 

 

 

Other adjustments to net income

 

2,855

 

 

2,201

 

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

 

 

 

 

Accounts receivable

 

25,139

 

 

22,111

 

Inventories

 

(17,640

)

 

4,263

 

Accounts payable

 

(14,898

)

 

(30,405

)

Other, net

 

(6,641

)

 

(4,539

)

Net cash provided by operating activities

 

52,173

 

 

40,277

 

Investing activities:

 

 

 

 

Capital expenditures

 

(9,809

)

 

(6,875

)

Acquisition of businesses, net of cash acquired

 

 

 

(57,899

)

Other, net

 

15

 

 

(151

)

Net cash (used in) provided by investing activities

 

(9,794

)

 

(64,925

)

Financing activities:

 

 

 

 

Issuance of common stock

 

(2,981

)

 

(695

)

Repurchase of common stock

 

 

 

(24,419

)

Other, net

 

(60

)

 

(62

)

Net cash used for financing activities

 

(3,041

)

 

(25,176

)

Effects of foreign exchange rate changes on cash and cash equivalents

 

1,382

 

 

(919

)

Increase (decrease) in cash and cash equivalents

 

40,720

 

 

(50,743

)

Cash and cash equivalents at beginning of period

 

123,415

 

 

126,662

 

Cash and cash equivalents at end of period

 

$

164,135

 

 

$

75,919

 

Supplementary Cash Flow information

 

 

 

 

Capital expenditures, not yet paid

 

$

618

 

 

$

1,106

 

ATKORE INTERNATIONAL GROUP INC.

ADJUSTED EBITDA

 

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

 

 

Three months ended

(in thousands)

December 27,
2019

 

December 28,
2018

Net income

$

34,790

 

 

$

26,949

 

Interest expense, net

10,620

 

 

12,160

 

Income tax expense

7,340

 

 

8,154

 

Depreciation and amortization

18,730

 

 

18,021

 

Restructuring charges

220

 

 

1,387

 

Stock-based compensation

3,123

 

 

2,982

 

Transaction costs

51

 

 

164

 

Other (a)

2,836

 

 

206

 

Adjusted EBITDA

$

77,710

 

 

$

70,023

 

 

 

 

 

(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

 

 

December 27, 2019

 

December 28, 2018

(in thousands)

 

Net sales

 

Adjusted
EBITDA

 

Adjusted
EBITDA
Margin

 

Net sales

 

Adjusted
EBITDA

 

Adjusted
EBITDA
Margin

Electrical Raceway

 

$

341,376

 

 

$

70,193

 

 

20.6

%

 

$

343,406

 

 

$

68,489

 

 

19.9

%

Mechanical Products & Solutions

 

106,660

 

 

16,654

 

 

15.6

%

 

108,813

 

 

10,887

 

 

10.0

%

Eliminations

 

(588

)

 

 

 

 

 

(191

)

 

 

 

 

Consolidated operations

 

$

447,448

 

 

 

 

 

 

$

452,028

 

 

 

 

 

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

(in thousands, except per share data)

 

December 27,
2019

 

December 28,
2018

Net income

 

$

34,790

 

 

$

26,949

 

Stock-based compensation

 

3,123

 

 

2,982

 

Intangible asset amortization

 

8,113

 

 

8,214

 

Other (a)

 

2,836

 

 

206

 

Pre-tax adjustments to net income

 

14,072

 

 

11,402

 

Tax effect

 

(3,518

)

 

(2,793

)

Adjusted net income

 

$

45,344

 

 

$

35,558

 

 

 

 

 

 

Weighted-Average Diluted Common Shares Outstanding

 

47,999

 

 

48,283

 

Net income per diluted share

 

$

0.71

 

 

$

0.54

 

Adjusted net income per diluted share

 

$

0.94

 

 

$

0.74

 

 

 

 

 

 

(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:

 

($ in thousands)

December 27,
2019

 

September 30,
2019

 

June 28,
2019

 

March 29,
2019

 

December 28,
2018

 

September 30,
2018

 

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

$

 

 

$

 

 

$

 

 

$

 

 

$

26,561

 

 

$

26,561

 

 

Long-term debt

845,243

 

 

845,317

 

 

884,503

 

 

884,095

 

 

878,094

 

 

877,686

 

 

Total debt

845,243

 

 

845,317

 

 

884,503

 

 

884,095

 

 

904,655

 

 

904,247

 

 

Less cash and cash equivalents

164,135

 

 

$

123,415

 

 

100,734

 

 

51,498

 

 

75,919

 

 

$

126,662

 

 

Net debt

$

681,108

 

 

$

721,902

 

 

$

783,769

 

 

$

832,597

 

 

$

828,736

 

 

$

777,585

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

TTM Adjusted EBITDA (a)

$

332,095

 

 

$

324,408

 

 

$

306,656

 

 

$

294,839

 

 

$

283,086

 

 

$

271,549

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total debt/TTM Adjusted EBITDA

2.5

 x

2.6

2.9

3.0

3.2

 x

3.3

 x

Net debt/TTM Adjusted EBITDA

2.1

 x

2.2

 x

2.6

 x

2.8

 x

2.9

 x

2.9

 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 June 28, 2019 can be found in Exhibit 99.1 to form 8-K filed August 7, 2019 and is incorporated by reference herein. 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, 2019 and September 30, 2018 can be found in Exhibit 99.1 to form 8-K filed November 22, 2019 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 December 27, 2019:

 

 

TTM

 

Three months ended

(in thousands)

December 27,
2019

 

December 27,
2019

 

September 30,
2019

 

June 28,
2019

 

March 29,
2019

Net income

$

146,892

 

 

$

34,790

 

 

$

45,997

 

 

$

36,550

 

 

$

29,555

 

Interest expense, net

48,933

 

 

10,620

 

 

$

12,196

 

 

12,789

 

 

13,328

 

Income tax expense

44,804

 

 

7,340

 

 

$

16,105

 

 

11,106

 

 

10,253

 

Depreciation and amortization

73,056

 

 

18,730

 

 

$

18,286

 

 

17,760

 

 

18,280

 

Restructuring charges

2,637

 

 

220

 

 

$

623

 

 

709

 

 

1,085

 

Stock-based compensation

11,939

 

 

3,123

 

 

$

2,862

 

 

4,120

 

 

1,834

 

Transaction costs

1,087

 

 

51

 

 

$

837

 

 

76

 

 

123

 

Gain on purchase of a business

(7,384

)

 

 

 

$

(7,384

)

 

 

 

 

Other(a)

10,131

 

 

2,836

 

 

$

(712

)

 

5,371

 

 

2,636

 

Adjusted EBITDA

$

332,095

 

 

$

77,710

 

 

$

88,810

 

 

$

88,481

 

 

$

77,094

 

 

 

 

 

 

 

 

 

 

 

(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.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20200204005248/en/

Contacts

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