Atkore Inc. Announces Second Quarter 2022 Results

Rhea-AI Summary

Atkore Inc. reported a robust fiscal 2022 Q2 with net sales of $982.6 million, a 53.6% increase year-over-year. Net income surged to $233.5 million, or $5.08 per diluted share. Adjusted EBITDA rose to $346.2 million, marking a 79.0% year-over-year increase. The company raised its fiscal year 2022 outlook for adjusted EBITDA to $1.25 - $1.30 billion and adjusted net income per share to $19.65 - $20.45. A significant share repurchase program has doubled to $800 million.

Positive

• Net sales increased by $343 million, or 53.6%, to $982.6 million year-over-year.
• Net income rose by $108.5 million, or 86.9%, to $233.5 million.
• Adjusted EBITDA increased by $152.8 million, or 79.0%, to $346.2 million.
• The adjusted net income per diluted share increased to $5.39, up $2.60 year-over-year.
• Full-year outlook for adjusted EBITDA raised to $1.25 - $1.30 billion.

Negative

• Sales volume decreased by $8.5 million across various product categories.
• Higher input costs of steel, copper, and PVC resin impacted profitability.

• Net sales of $982.6 million, up 53.6% versus prior year

• Net income per diluted share increased by $2.50 versus prior year to $5.08; Adjusted net income per diluted share increased by $2.60 versus prior year to $5.39

• Net income increased by $108.5 million versus prior year to $233.5 million; Adjusted EBITDA increased by $152.8 million versus prior year to $346.2 million

• Full-year Net sales expected to be up approximately 25 to 30 percent compared to fiscal year 2021

• Full-year Adjusted EBITDA outlook increased to $1,250 - $1,300 million; Full-year Adjusted net income per diluted share outlook increased to $19.65 - $20.45

• The Board of Directors increased the size of the current share repurchase authorization expiring in November 2023 from $400 million to $800 million

HARVEY, Ill.--(BUSINESS WIRE)-- Atkore Inc. (the “Company” or “Atkore”) (NYSE: ATKR) announced earnings for its fiscal 2022 second quarter ended March 25, 2022.

“Atkore continued to build on its momentum in the second quarter, generating a significant increase in sales year-over-year and growing profitability,” said Bill Waltz, Atkore President and Chief Executive Officer. “Both segments contributed to the strong second quarter results, with positive trends across multiple product categories in each segment partially offset by declines in certain steel related product categories in the U.S. Our results in the first half of 2022 reflect our team’s dedication to serving our customers and the resilience of the Atkore Business System, which continues to successfully guide our operations through pricing volatility, labor shortages across the value chain and other macro factors.”

Waltz continued, “We enter the back half of the fiscal year with a stronger base from which to grow and the financial flexibility and expected cash flow generation to continue to deliver on our capital allocation priorities. We are on track to repurchase at least a cumulative total of $400 million in shares in fiscal 2022, while also continuing to prudently execute on our robust M&A pipeline. In addition, we are raising our fiscal year 2022 outlook for Adjusted EBITDA to $1.25 to $1.30 billion. We will continue to work diligently and efficiently to capitalize on our existing leadership positions, expand into key growth areas and serve our customers with an unwavering commitment to excellence.”

2022 Second Quarter Results

			Three months ended
(in thousands)			March 25, 2022				March 26, 2021				Change				% Change
Net sales
Electrical			$	759,877			$	487,500			$	272,377			55.9	%
Safety & Infrastructure				224,285				152,700				71,585			46.9	%
Eliminations				(1,589	)			(657	)			(932	)		141.9	%
Consolidated operations			$	982,573			$	639,543			$	343,030			53.6	%
Net income			$	233,477			$	124,933			$	108,544			86.9	%
Adjusted EBITDA
Electrical			$	330,970			$	188,826			$	142,144			75.3	%
Safety & Infrastructure				28,917				16,193				12,724			78.6	%
Unallocated				(13,721	)			(11,654	)			(2,067	)		17.7	%
Consolidated operations			$	346,166			$	193,365			$	152,801			79.0	%

Net sales increased by $343.0 million, or 53.6%, to $982.6 million for the three months ended March 25, 2022, compared to $639.5 million for the three months ended March 26, 2021. The increase in net sales is primarily attributed to increased average selling prices across the Company’s products of $338.7 million which were mostly driven by the plastic pipe and conduit product category within the Electrical segment and increased net sales of $14.6 million from companies acquired during fiscal 2021 and fiscal 2022. These increases are offset by decreased sales volume of $8.5 million across varying product categories within both the Electrical and the Safety & Infrastructure segments. Pricing for PVC products, as well as other parts of the business, is expected to return to more normal historical levels over time, but that time is uncertain.

Gross profit increased by $176.6 million, or 73.6%, to $416.4 million for the three months ended March 25, 2022, as compared to $239.8 million for the prior-year period. Gross margin increased to 42.4% for the three months ended March 25, 2022, as compared to 37.5% for the prior-year period. Gross profit increased primarily due to higher average selling prices of $338.7 million, partially offset by higher input costs of steel, copper and PVC resin of $151.5 million.

Net income increased by $108.5 million, or 86.9%, to $233.5 million for the three months ended March 25, 2022 compared to $124.9 million for the prior-year period primarily due to higher gross profit and lower interest expense, partially offset by higher selling, general and administrative costs, and income tax expense.

Adjusted EBITDA increased by $152.8 million, or 79.0%, to $346.2 million for the three months ended March 25, 2022 compared to $193.4 million for the three months ended March 26, 2021. The increase was primarily due to higher gross profit.

Net income per diluted share prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) was $5.08 for the three months ended March 25, 2022, as compared to $2.58 in the prior-year period. Adjusted net income per diluted share increased by $2.60 to $5.39 for the three months ended March 25, 2022, as compared to $2.79 in the prior year period. The increase in diluted earnings per share and adjusted net income per share is primarily attributed to higher net income.

Segment Results

Electrical

Net sales increased by $272.4 million, or 55.9%, to $759.9 million for the three months ended March 25, 2022 compared to $487.5 million for the three months ended March 26, 2021. The increase in net sales is primarily attributed to increased average selling prices of $263.4 million which were mostly driven by the plastic pipe and conduit product category and increased net sales of $9.2 million from companies acquired during fiscal 2021 and fiscal 2022. Pricing for PVC products, as well as other parts of the business, is expected to return to more normal historical levels over time, but that time is uncertain.

Adjusted EBITDA for the three months ended March 25, 2022 increased by $142.1 million, or 75.3%, to $331.0 million from $188.8 million for the three months ended March 26, 2021. Adjusted EBITDA margins increased to 43.6% for the three months ended March 25, 2022 compared to 38.7% for the three months ended March 26, 2021. The increase in Adjusted EBITDA and Adjusted EBITDA margins was largely due to higher average selling prices over input costs.

Safety & Infrastructure

Net sales increased by $71.6 million, or 46.9%, for the three months ended March 25, 2022 to $224.3 million compared to $152.7 million for the three months ended March 26, 2021. The increase is primarily attributed to increased average selling prices of $75.2 million driven by higher input costs of steel and increased net sales of $5.4 million from companies acquired during fiscal 2022 partially offset by lower volumes of $9.0 million primarily in the mechanical pipe product line.

Adjusted EBITDA increased by $12.7 million, or 78.6%, to $28.9 million for the three months ended March 25, 2022 compared to $16.2 million for the three months ended March 26, 2021. Adjusted EBITDA margins increased to 12.9% for the three months ended March 25, 2022 compared to 10.6% for the three months ended March 26, 2021. The Adjusted EBITDA increase is primarily due to the price increases, partially offset by lower volume, discussed above.

Full-Year Outlook

Based on market trends and Atkore’s continued execution, the Company is increasing its outlook for Adjusted EBITDA and Adjusted net income per diluted share for fiscal year 2022. The Company continues to expect Net Sales to be up approximately 25 to 30 percent versus fiscal year 2021. The Company expects Adjusted EBITDA to be in the range of $1,250 million to $1,3000 million, and Adjusted net income per diluted share to be in the range of $19.65 - $20.45.

In light of these trends and the current environment, the Company is also providing its preliminary perspective on fiscal year 2023. The Company estimates fiscal year 2023 Adjusted EBITDA to be approximately $800 million - $900 million. The Company notes that this perspective may vary due to changes in assumptions or market conditions and other factors described under “Forward-Looking Statements.”

Reconciliations of the forward-looking full-year 2022 outlook for Adjusted EBITDA and Adjusted net income per diluted share, and preliminary perspective for full-year 2023 Adjusted EBITDA 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, May 3, 2022, 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 May 23, 2022. The replay can be accessed by dialing (800) 770-2030 for domestic callers, 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 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 forging a future where our employees, customers, suppliers, shareholders and communities are building better together – a future focused on serving the customer and powering and protecting the world. With a global network of manufacturing and distribution facilities worldwide, Atkore is a leading provider of electrical, safety and infrastructure solutions. 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 18, 2021 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, increases in the 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; 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 risks and 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, 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, 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.

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.

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								Six months ended
(in thousands, except per share data)		March 25, 2022				March 26, 2021				March 25, 2022					March 26, 2021
Net sales		$	982,573			$	639,543				$	1,823,374			$	1,150,625
Cost of sales			566,157				399,694					1,052,150				721,585
Gross profit			416,416				239,849					771,224				429,040
Selling, general and administrative			88,918				67,340					167,069				128,418
Intangible asset amortization			8,701				8,096					16,930				16,356
Operating income			318,797				164,413					587,225				284,266
Interest expense, net			7,514				8,416					14,432				16,670
Other income, net			(807	)			(7,240	)				(1,115	)			(7,671	)
Income before income taxes			312,090				163,237					573,908				275,267
Income tax expense			78,613				38,304					135,588				65,268
Net income		$	233,477			$	124,933				$	438,320			$	209,999
Net income per share
Basic		$	5.14			$	2.62				$	9.51			$	4.39
Diluted		$	5.08			$	2.58				$	9.39			$	4.33

ATKORE INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)
(in thousands, except share and per share data)		March 25, 2022				September 30, 2021
Assets
Current Assets:
Cash and cash equivalents		$	390,399			$	576,289
Accounts receivable, less allowance for current and expected credit losses of $3,503 and $2,510, respectively			623,361				524,926
Inventories, net			411,356				285,989
Prepaid expenses and other current assets			64,924				34,248
Total current assets			1,490,040				1,421,452
Property, plant and equipment, net			285,936				275,622
Intangible assets, net			242,229				241,204
Goodwill			212,167				199,048
Right-of-use assets, net			37,757				41,113
Deferred tax assets			33,970				29,693
Other long-term assets			2,021				1,967
Total Assets		$	2,304,120			$	2,210,099
Liabilities and Equity
Current Liabilities:
Accounts payable			269,830				243,164
Income tax payable			10,741				72,953
Accrued compensation and employee benefits			37,061				57,437
Customer liabilities			66,138				80,324
Lease obligations			11,327				11,785
Other current liabilities			63,179				59,273
Total current liabilities			458,276				524,936
Long-term debt			759,461				758,386
Long-term lease obligations			27,392				30,236
Deferred tax liabilities			18,566				16,746
Pension liabilities			2,515				3,819
Other long-term liabilities			14,636				11,240
Total Liabilities			1,280,846				1,345,363
Equity:
Common stock, $0.01 par value, 1,000,000,000 shares authorized, 43,879,446 and 45,997,159 shares issued and outstanding, respectively			440				461
Treasury stock, held at cost, 290,600 and 290,600 shares, respectively			(2,580	)			(2,580	)
Additional paid-in capital			492,070				506,921
Retained earnings			565,832				388,660
Accumulated other comprehensive loss			(32,488	)			(28,726	)
Total Equity			1,023,274				864,736
Total Liabilities and Equity		$	2,304,120			$	2,210,099

 

ATKORE INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
		Six months ended
(in thousands)		March 25, 2022				March 26, 2021
Operating activities:
Net income		$	438,320			$	209,999
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			40,040				38,309
Deferred income taxes			(4,270	)			4,692
Stock-based compensation			9,555				10,390
Amortization of right-of-use assets			6,489				7,025
Other non-cash adjustments to net income			7,474				968
Changes in operating assets and liabilities, net of effects from acquisitions
Accounts receivable			(95,016	)			(124,261	)
Inventories			(127,790	)			(31,424	)
Prepaid expenses and other current assets			(14,490	)			234
Accounts payable			19,617				42,130
Accrued and other liabilities			(37,972	)			(2,502	)
Income taxes			(80,415	)			429
Other, net			(383	)			(2,743	)
Net cash provided by operating activities			161,159				153,246
Investing activities:
Capital expenditures			(25,343	)			(20,374	)
Proceeds from sale of properties and equipment			642				3,117
Acquisition of businesses, net of cash acquired			(36,098	)			(43,699	)
Other, net			—				21
Net cash used in investing activities			(60,799	)			(60,935	)
Financing activities:
Repayments of long-term debt			—				(40,000	)
Issuance of common stock, net of shares withheld for tax			(24,399	)			(356	)
Repurchase of common stock			(261,173	)			(35,037	)
Other, net			—				(11	)
Net cash used for financing activities			(285,572	)			(75,404	)
Effects of foreign exchange rate changes on cash and cash equivalents			(678	)			3,091
Decrease in cash and cash equivalents			(185,890	)			19,998
Cash and cash equivalents at beginning of period			576,289				284,471
Cash and cash equivalents at end of period		$	390,399			$	304,469

		Six months ended
(in thousands)		March 25, 2022				March 26, 2021
Supplementary Cash Flow information
Capital expenditures, not yet paid		$	4,815			$	1,023
Operating lease right-of-use assets obtained in exchange for lease liabilities		$	1,148			$	2,379
Acquisitions of businesses, not yet paid		$	2,864			$	—
Free Cash Flow:
Net cash provided by operating activities		$	161,159			$	153,246
Capital expenditures			(25,343	)			(20,374	)
Free Cash Flow:		$	135,816			$	132,872

ATKORE INC. ADJUSTED EBITDA
The following table presents reconciliations of Adjusted EBITDA to net income for the periods presented:
		Three months ended							Six months ended
(in thousands)		March 25, 2022			March 26, 2021				March 25, 2022			March 26, 2021
Net income		$	233,477		$	124,933			$	438,320		$	209,999
Interest expense, net			7,514			8,416				14,432			16,670
Income tax expense			78,613			38,304				135,588			65,268
Depreciation and amortization			19,994			19,265				40,040			38,309
Stock-based compensation			6,128			4,868				9,555			10,390
Other (a)			440			(2,421	)			1,241			(10,281	)
Adjusted EBITDA		$	346,166		$	193,365			$	639,176		$	330,355
(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, gain on purchase of business, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, restructuring costs and transaction 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
		March 25, 2022										March 26, 2021
(in thousands)		Net sales				Adjusted EBITDA			Adjusted EBITDA Margin			Net sales					Adjusted EBITDA			Adjusted EBITDA Margin
Electrical		$	759,877			$	330,970		43.6	%			$	487,500			$	188,826		38.7	%
Safety & Infrastructure			224,285				28,917		12.9	%				152,700				16,193		10.6	%
Eliminations			(1,589	)										(657	)
Consolidated operations		$	982,573										$	639,543

		Six months ended
		March 25, 2022											March 26, 2021
(in thousands)		Net sales				Adjusted EBITDA			Adjusted EBITDA Margin				Net sales				Adjusted EBITDA			Adjusted EBITDA Margin
Electrical		$	1,401,560			$	610,517		43.6	%			$	874,645			$	322,099		36.8	%
Safety & Infrastructure			424,795				56,349		13.3	%				277,465				30,445		11.0	%
Eliminations			(2,981	)										(1,485	)
Consolidated operations		$	1,823,374										$	1,150,625

 

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								Six months ended
(in thousands, except per share data)		March 25, 2022				March 26, 2021				March 25, 2022				March 26, 2021
Net income		$	233,477			$	124,933			$	438,320			$	209,999
Stock-based compensation			6,128				4,868				9,555				10,390
Intangible asset amortization			8,701				8,096				16,930				16,356
Other (a)			(494	)			(2,855	)			(921	)			(10,997	)
Pre-tax adjustments to net income			14,335				10,109				25,564				15,749
Tax effect			(3,584	)			(2,527	)			(6,391	)			(3,937	)
Adjusted net income		$	244,228			$	132,515			$	457,493			$	221,811
Diluted weighted average common shares outstanding			45,280				47,547				45,906				47,586
Net income per diluted share		$	5.08			$	2.58			$	9.39			$	4.33
Adjusted net income per diluted share		$	5.39			$	2.79			$	9.97			$	4.66
(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.

 

ATKORE INC. LEVERAGE RATIO
The following table presents reconciliations of Net debt to Total debt for the periods presented:
($ in thousands)	March 25, 2022			December 24, 2021			September 30, 2021			June 25, 2021			March 26, 2021			December 25, 2020
Short-term debt and current maturities of long-term debt	$	—		$	—		$	—		$	4,000		$	—		$	—
Long-term debt		759,461			758,924			758,386			780,489			765,049			764,379
Total debt		759,461			758,924			758,386			784,489			765,049			764,379
Less cash and cash equivalents		390,399			498,959			576,289			397,142			304,469			280,420
Net debt	$	369,062		$	259,965		$	182,097		$	387,347		$	460,580		$	483,959
TTM Adjusted EBITDA (a)	$	1,206,371		$	1,053,570		$	897,547		$	702,815		$	492,274		$	385,915
Total debt/TTM Adjusted EBITDA		0.6	x		0.7	x		0.8	x		1.1	x		1.6	x		2.0	x
Net debt/TTM Adjusted EBITDA		0.3	x		0.2	x		0.2	x		0.6	x		0.9	x		1.3	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 December 24, 2021 can be found in Exhibit 99.1 to form 8-K filed January 31, 2022 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended June 25, 2021 can be found in Exhibit 99.1 to form 8-K filed August 3, 2021 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended March 26, 2021 can be found in Exhibit 99.1 to form 8-K filed April 29, 2021 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the quarter ended December 25, 2020 can be found in Exhibit 99.1 to form 8-k filed February 2, 2021 and is incorporated by reference herein. The reconciliation of Adjusted EBITDA for the year ended September 30, 2021 and September 30, 2020 can be found in Exhibit 99.1 to form 8-K filed November 18, 2021 and is incorporated by reference herein.

 

ATKORE INC. TRAILING TWELVE MONTHS ADJUSTED EBITDA
The following table presents a reconciliation of Adjusted EBITDA for the trailing twelve months (TTM) ended March 25, 2022:
	TTM				Three months ended
(in thousands)	March 25, 2022				March 25, 2022			December 24, 2021			September 30, 2021				June 25, 2021
Net income	$	816,178			$	233,477		$	204,843		$	202,561			$	175,297
Interest expense, net		30,661				7,514			6,918			8,139				8,090
Income tax expense		262,464				78,613			56,975			65,222				61,654
Depreciation and amortization		80,288				19,994			20,046			20,082				20,166
Stock-based compensation		16,212				6,128			3,427			2,889				3,768
Loss on the extinguishment of debt		4,202				—			—			—				4,202
Other(a)		(3,634	)			440			801			(5,962	)			1,087
Adjusted EBITDA	$	1,206,371			$	346,166		$	293,010		$	292,931			$	274,264
(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, gain on purchase of business, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, restructuring costs and transaction costs.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20220503005274/en/

Media Contact:

Lisa Winter

Vice President - Communications

708-225-2453

LWinter@atkore.com



Investor Contact:

John Deitzer

Vice President - Treasury & Investor Relations

708-225-2124

JDeitzer@atkore.com

Source: Atkore Inc.

FAQ

What were Atkore's Q2 2022 net sales figures?

Atkore reported net sales of $982.6 million for Q2 2022, a 53.6% increase compared to the previous year.

How much did Atkore's net income increase in Q2 2022?

Net income increased by $108.5 million to $233.5 million for Q2 2022.

What is Atkore's adjusted EBITDA outlook for fiscal year 2022?

Atkore raised its adjusted EBITDA outlook for fiscal year 2022 to between $1.25 billion and $1.30 billion.

What is the adjusted net income per diluted share for Atkore in Q2 2022?

Adjusted net income per diluted share for Q2 2022 was $5.39, up $2.60 from the prior year.

What share repurchase program changes were announced by Atkore?

Atkore increased its share repurchase authorization from $400 million to $800 million, expiring in November 2023.