Atkore Inc. Announces First Quarter 2025 Results
-
Net sales of
, down$661.6 million 17.1% versus prior year -
Net income per diluted share decreased by
versus prior year to$2.30 ; Adjusted net income per diluted share decreased by$1.31 versus prior year to$2.49 $1.63 -
Net income decreased by
versus prior year to$92.0 million ; Adjusted EBITDA decreased by$46.3 million versus prior year to$114.4 million $99.2 million -
Full-year Adjusted EBITDA outlook adjusted to
-$375 ; Adjusted net income per diluted share outlook adjusted to$425 million -$5.75 $6.85 -
On January 30, 2025, Atkore’s Board of Directors declared a quarterly cash dividend of
per share of common stock payable on February 28, 2025, to stockholders of record on February 18, 2025.$0.32
“Atkore’s first quarter results were in line with the projections for Net sales, Adjusted EBITDA and Adjusted Diluted EPS we presented in November,” said Bill Waltz, Atkore President and Chief Executive Officer. “I am proud to highlight our net sales from our metal framing, cable management and construction services product area increased mid-single digits from the prior year. As we look forward to the next three quarters we anticipate continued momentum from these businesses.”
Waltz continued, “While being mindful of the competitive landscape in which we operate, we remain focused on executing our strategy and investing in the future of our Company. I am proud of our team’s continued focus on our growth initiatives related to water and global construction services and look forward to sharing more as we progress through fiscal 2025. Finally, we recently published our 2024 Sustainability Report highlighting progress towards our 2025 ESG goals and additional initiatives, including developing Environmental Product Declarations for core product offerings covering approximately half of Atkore’s global sales.”
2025 First Quarter Results
|
|
Three months ended |
|||||||||||||
(in thousands) |
|
December 27, 2024 |
|
December 29, 2023 |
|
Change |
|
% Change |
|||||||
Net sales |
|
|
|
|
|
|
|
|
|||||||
Electrical |
|
$ |
465,355 |
|
|
$ |
593,661 |
|
|
$ |
(128,306 |
) |
|
(21.6 |
)% |
Safety & Infrastructure |
|
|
196,724 |
|
|
|
205,127 |
|
|
|
(8,403 |
) |
|
(4.1 |
)% |
Eliminations |
|
|
(482 |
) |
|
|
(306 |
) |
|
|
(176 |
) |
|
57.5 |
% |
Consolidated operations |
|
$ |
661,597 |
|
|
$ |
798,481 |
|
|
$ |
(136,884 |
) |
|
(17.1 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Net income |
|
$ |
46,336 |
|
|
$ |
138,381 |
|
|
$ |
(92,045 |
) |
|
(66.5 |
)% |
|
|
|
|
|
|
|
|
|
|||||||
Adjusted EBITDA |
|
|
|
|
|
|
|
|
|||||||
Electrical |
|
$ |
92,387 |
|
|
$ |
204,360 |
|
|
$ |
(111,973 |
) |
|
(54.8 |
)% |
Safety & Infrastructure |
|
|
15,579 |
|
|
|
19,512 |
|
|
|
(3,933 |
) |
|
(20.2 |
)% |
Unallocated |
|
|
(8,816 |
) |
|
|
(10,349 |
) |
|
|
1,533 |
|
|
(14.8 |
)% |
Consolidated operations |
|
$ |
99,150 |
|
|
$ |
213,523 |
|
|
$ |
(114,373 |
) |
|
(53.6 |
)% |
Net sales decreased by
Gross profit decreased by
Net income decreased by
Adjusted EBITDA decreased by
Net income per diluted share prepared in accordance with accounting principles generally accepted in
Segment Results
Electrical
Net sales decreased by
Adjusted EBITDA for the three months ended December 27, 2024 decreased by
Safety & Infrastructure
Net sales decreased by
Adjusted EBITDA decreased by
Liquidity & Capital Resources
On January 30, 2025, Atkore’s Board of Directors declared a quarterly cash dividend of
Full-Year Outlook1
The Company is adjusting its estimate for fiscal year 2025 Adjusted EBITDA to be approximately
The Company notes that this perspective 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, February 4, 2025, at 8 a.m. Eastern time, to discuss the Company’s financial results. 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 February 18, 2025. The replay can be accessed by dialing (800) 770-2030 for domestic callers, or for international callers, (609) 800-9909. 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 https://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 https://investors.atkore.com.
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
Dissemination of Company Information
Atkore intends to make future announcements regarding company developments and financial performance through its website, www.atkore.com, as well as through press releases, filings with the Securities and Exchange Commission, conference calls, media broadcasts, and webcasts.
________________________ |
1 Reconciliations of the forward-looking full-year 2025 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. Accordingly, we are relying on the exception provided by Item 10(e)(1)(i)(B) of Regulation S-K to exclude these reconciliations. |
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 disclosed in the Company’s filings with the
Non-GAAP Financial Information
This press release includes certain financial information, not prepared in accordance with Generally Accepted Accounting Principles in
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, 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 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.
Free Cash Flow
We define free cash flow as net cash provided by (used in) operating activities, less capital expenditures. We believe that Free Cash Flow provides meaningful information regarding the Company’s liquidity.
ATKORE INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
|
||||||||
|
|
Three months ended |
||||||
(in thousands, except per share data) |
|
December 27, 2024 |
|
December 29, 2023 |
||||
Net sales |
|
$ |
661,597 |
|
$ |
798,481 |
||
Cost of sales |
|
|
490,509 |
|
|
|
507,941 |
|
Gross profit |
|
|
171,088 |
|
|
|
290,540 |
|
Selling, general and administrative |
|
|
91,451 |
|
|
|
100,615 |
|
Intangible asset amortization |
|
|
11,699 |
|
|
|
14,467 |
|
Operating income |
|
|
67,938 |
|
|
|
175,458 |
|
Interest expense, net |
|
|
8,209 |
|
|
|
7,793 |
|
Other expense, net |
|
|
1,133 |
|
|
|
12 |
|
Income before income taxes |
|
|
58,596 |
|
|
|
167,653 |
|
Income tax expense |
|
|
12,260 |
|
|
|
29,272 |
|
Net income |
|
$ |
46,336 |
|
|
$ |
138,381 |
|
|
|
|
|
|
||||
Net income per share |
|
|
|
|
||||
Basic |
|
$ |
1.32 |
|
|
$ |
3.66 |
|
Diluted |
|
$ |
1.31 |
|
|
$ |
3.61 |
|
ATKORE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
|
||||||||
(in thousands, except share and per share data) |
|
December 27, 2024 |
|
September 30, 2024 |
||||
Assets |
|
|
|
|
||||
Current Assets: |
|
|
|
|
||||
Cash and cash equivalents |
|
$ |
310,444 |
|
|
$ |
351,385 |
|
Accounts receivable, less allowance for current and expected credit losses of |
|
|
473,096 |
|
|
|
489,926 |
|
Inventories, net |
|
|
526,261 |
|
|
|
524,695 |
|
Prepaid expenses and other current assets |
|
|
173,749 |
|
|
|
158,382 |
|
Total current assets |
|
|
1,483,550 |
|
|
|
1,524,388 |
|
Property, plant and equipment, net |
|
|
655,283 |
|
|
|
652,093 |
|
Intangible assets, net |
|
|
326,944 |
|
|
|
340,431 |
|
Goodwill |
|
|
310,969 |
|
|
|
314,000 |
|
Right-of-use assets, net |
|
|
175,259 |
|
|
|
180,656 |
|
Deferred tax assets |
|
|
502 |
|
|
|
554 |
|
Other long-term assets |
|
|
9,238 |
|
|
|
9,281 |
|
Total Assets |
|
$ |
2,961,745 |
|
|
$ |
3,021,403 |
|
Liabilities and Equity |
|
|
|
|
||||
Current Liabilities: |
|
|
|
|
||||
Accounts payable |
|
|
241,093 |
|
|
|
262,201 |
|
Income tax payable |
|
|
1,232 |
|
|
|
2,000 |
|
Accrued compensation and employee benefits |
|
|
30,540 |
|
|
|
44,723 |
|
Customer liabilities |
|
|
133,265 |
|
|
|
108,782 |
|
Lease obligations |
|
|
23,342 |
|
|
|
22,038 |
|
Other current liabilities |
|
|
59,848 |
|
|
|
71,122 |
|
Total current liabilities |
|
|
489,320 |
|
|
|
510,866 |
|
Long-term debt |
|
|
765,375 |
|
|
|
764,838 |
|
Long-term lease obligations |
|
|
158,474 |
|
|
|
164,328 |
|
Deferred tax liabilities |
|
|
25,600 |
|
|
|
26,574 |
|
Other long-term liabilities |
|
|
15,628 |
|
|
|
14,897 |
|
Total Liabilities |
|
|
1,454,397 |
|
|
|
1,481,503 |
|
Equity: |
|
|
|
|
||||
Common stock, |
|
|
345 |
|
|
|
350 |
|
Additional paid-in capital |
|
|
509,487 |
|
|
|
509,254 |
|
Retained earnings |
|
|
1,034,100 |
|
|
|
1,049,390 |
|
Accumulated other comprehensive loss |
|
|
(36,584 |
) |
|
|
(19,094 |
) |
Total Equity |
|
|
1,507,348 |
|
|
|
1,539,900 |
|
Total Liabilities and Equity |
|
$ |
2,961,745 |
|
|
$ |
3,021,403 |
|
ATKORE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
|
||||||||
|
|
Three months ended |
||||||
(in thousands) |
|
December 27, 2024 |
|
December 29, 2023 |
||||
Operating activities: |
|
|
|
|
||||
Net income |
|
$ |
46,336 |
|
|
$ |
138,381 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
||||
Depreciation and amortization |
|
|
29,333 |
|
|
|
29,020 |
|
Deferred income taxes |
|
|
(73 |
) |
|
|
(1,668 |
) |
Stock-based compensation |
|
|
6,097 |
|
|
|
4,757 |
|
Amortization of right-of-use assets |
|
|
8,690 |
|
|
|
6,140 |
|
Other non-cash adjustments to net income |
|
|
173 |
|
|
|
2,074 |
|
Changes in operating assets and liabilities, net of effects from acquisitions |
|
|
|
|
||||
Accounts receivable |
|
|
11,733 |
|
|
|
43,837 |
|
Inventories |
|
|
(3,072 |
) |
|
|
2,015 |
|
Prepaid expenses and other current assets |
|
|
(10,061 |
) |
|
|
(9,140 |
) |
Accounts payable |
|
|
(6,963 |
) |
|
|
(42,014 |
) |
Accrued and other liabilities |
|
|
(7,294 |
) |
|
|
(15,946 |
) |
Income taxes |
|
|
(6,085 |
) |
|
|
(260 |
) |
Other, net |
|
|
5,560 |
|
|
|
910 |
|
Net cash provided by operating activities |
|
|
74,374 |
|
|
|
158,106 |
|
Investing activities: |
|
|
|
|
||||
Capital expenditures |
|
|
(41,295 |
) |
|
|
(44,331 |
) |
Acquisition of businesses, net of cash acquired |
|
|
— |
|
|
|
(5,973 |
) |
Other, net |
|
|
158 |
|
|
|
— |
|
Net cash used in investing activities |
|
|
(41,137 |
) |
|
|
(50,304 |
) |
Financing activities: |
|
|
|
|
||||
Issuance of common stock, net of shares withheld for tax |
|
|
(5,864 |
) |
|
|
(21,299 |
) |
Repurchase of common stock |
|
|
(50,011 |
) |
|
|
(96,428 |
) |
Finance lease payments |
|
|
(672 |
) |
|
|
(427 |
) |
Dividends paid to shareholders |
|
|
(11,121 |
) |
|
|
— |
|
Net cash used for financing activities |
|
|
(67,668 |
) |
|
|
(118,154 |
) |
Effects of foreign exchange rate changes on cash and cash equivalents |
|
|
(6,510 |
) |
|
|
3,160 |
|
Decrease in cash and cash equivalents |
|
|
(40,941 |
) |
|
|
(7,192 |
) |
Cash and cash equivalents at beginning of period |
|
|
351,385 |
|
|
|
388,114 |
|
Cash and cash equivalents at end of period |
|
$ |
310,444 |
|
|
$ |
380,922 |
|
|
|
Three months ended |
||||||
(in thousands) |
|
December 27, 2024 |
|
December 29, 2023 |
||||
Supplementary Cash Flow information |
|
|
|
|
||||
Capital expenditures, not yet paid |
|
$ |
2,191 |
|
|
$ |
5,030 |
|
Operating lease right-of-use assets obtained in exchange for lease liabilities |
|
$ |
1,791 |
|
|
$ |
24,752 |
|
Acquisitions of businesses, not yet paid |
|
$ |
— |
|
|
$ |
— |
|
Free Cash Flow: |
|
|
|
|
||||
Net cash provided by operating activities |
|
$ |
74,374 |
|
|
$ |
158,106 |
|
Capital expenditures |
|
|
(41,295 |
) |
|
|
(44,331 |
) |
Free Cash Flow: |
|
$ |
33,079 |
|
|
$ |
113,775 |
|
ATKORE 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, 2024 |
|
December 29, 2023 |
||||
Net income |
|
$ |
46,336 |
|
|
$ |
138,381 |
|
Interest expense, net |
|
|
8,209 |
|
|
|
7,793 |
|
Income tax expense |
|
|
12,260 |
|
|
|
29,272 |
|
Depreciation and amortization |
|
|
29,333 |
|
|
|
29,020 |
|
Stock-based compensation |
|
|
6,097 |
|
|
|
4,757 |
|
Other (a) |
|
|
(3,085 |
) |
|
|
4,300 |
|
Adjusted EBITDA |
|
$ |
99,150 |
|
|
$ |
213,523 |
|
|
|
|
|
|
||||
(a) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, loss on assets held for sale, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, transaction and restructuring costs. |
ATKORE INC. SEGMENT INFORMATION
The following table presents reconciliations of Net sales and calculations of Adjusted EBITDA Margin by segment for the periods presented:
|
||||||||||||||||||||||
|
|
Three months ended |
||||||||||||||||||||
|
|
December 27, 2024 |
|
December 29, 2023 |
||||||||||||||||||
(in thousands) |
|
Net sales |
|
Adjusted EBITDA |
|
Adjusted EBITDA Margin |
|
Net sales |
|
Adjusted EBITDA |
|
Adjusted EBITDA Margin |
||||||||||
Electrical |
|
$ |
465,355 |
|
|
$ |
92,387 |
|
19.9 |
% |
|
$ |
593,661 |
|
|
$ |
204,360 |
|
34.4 |
% |
||
Safety & Infrastructure |
|
|
196,724 |
|
|
|
15,579 |
|
|
7.9 |
% |
|
|
205,127 |
|
|
|
19,512 |
|
|
9.5 |
% |
Eliminations |
|
|
(482 |
) |
|
|
|
|
|
|
(306 |
) |
|
|
|
|
||||||
Consolidated operations |
|
$ |
661,597 |
|
|
|
|
|
|
$ |
798,481 |
|
|
|
|
|
ATKORE INC. ADJUSTED NET INCOME PER DILUTED 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, 2024 |
|
December 29, 2023 |
||||
Net income |
|
$ |
46,336 |
|
|
$ |
138,381 |
|
Stock-based compensation |
|
|
6,097 |
|
|
|
4,757 |
|
Intangible asset amortization |
|
|
11,699 |
|
|
|
14,467 |
|
Other (a) |
|
|
(3,441 |
) |
|
|
3,611 |
|
Pre-tax adjustments to net income |
|
|
14,355 |
|
|
|
22,835 |
|
Tax effect |
|
|
(3,589 |
) |
|
|
(5,709 |
) |
Adjusted net income |
|
$ |
57,102 |
|
|
$ |
155,507 |
|
|
|
|
|
|
||||
Diluted weighted average common shares outstanding |
|
|
35,040 |
|
|
|
37,745 |
|
Net income per diluted share |
|
$ |
1.31 |
|
|
$ |
3.61 |
|
Adjusted net income per diluted share |
|
$ |
1.63 |
|
|
$ |
4.12 |
|
|
|
|
|
|
||||
(a) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, loss on assets held for sale, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, transaction and restructuring costs. |
ATKORE INC. TRAILING TWELVE MONTHS ADJUSTED EBITDA
The following table presents a reconciliation of Adjusted EBITDA for the trailing twelve months (TTM) ended December 27, 2024:
|
|||||||||||||||||||
|
TTM |
|
Three months ended |
||||||||||||||||
(in thousands) |
December 27, 2024 |
|
December 27, 2024 |
|
September 30, 2024 |
|
June 28, 2024 |
|
March 29, 2024 |
||||||||||
Net income |
$ |
380,827 |
|
$ |
46,336 |
|
$ |
73,119 |
|
$ |
123,417 |
|
$ |
137,955 |
|||||
Interest expense, net |
|
36,000 |
|
|
|
8,209 |
|
|
|
9,526 |
|
|
|
9,944 |
|
|
|
8,321 |
|
Income tax expense |
|
97,353 |
|
|
|
12,260 |
|
|
|
18,759 |
|
|
|
34,531 |
|
|
|
31,804 |
|
Depreciation and amortization |
|
121,330 |
|
|
|
29,333 |
|
|
|
32,611 |
|
|
|
29,932 |
|
|
|
29,455 |
|
Stock-based compensation |
|
21,640 |
|
|
|
6,097 |
|
|
|
6,027 |
|
|
|
4,488 |
|
|
|
5,028 |
|
Other (a) |
|
187 |
|
|
|
(3,085 |
) |
|
|
108 |
|
|
|
3,813 |
|
|
|
(649 |
) |
Adjusted EBITDA |
$ |
657,338 |
|
|
$ |
99,150 |
|
|
$ |
140,150 |
|
|
$ |
206,124 |
|
|
$ |
211,914 |
|
|
|
|
|
|
|
|
|
|
|
||||||||||
(a) Represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, loss on assets held for sale, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, transaction and restructuring costs. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20250204475015/en/
Media Contact:
Lisa Winter
Vice President - Communications
708-225-2453
AtkoreCommunications@atkore.com
Investor Contact:
Matthew Kline
Vice President - Treasury & Investor Relations
708-225-2116
Investors@atkore.com
Source: Atkore Inc.