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Atkore Inc. Announces Second Quarter 2022 Results

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·26-min read
In this article:
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  • 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., May 03, 2022--(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/

Contacts

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

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