Sentiment Analysis of the earnings transcript to help figure out if there are any bullish or bearish sentiments that could be gathered from it. We're doing ML and AI based analysis on the earnings call to get some more insights.
Please consider a small donation if you think this website provides you with relevant information
| Statement |
|---|
| Our balance sheet and cash flow give us a rock solid foundation from which to grow |
| With our outstanding financial profile and differentiated product portfolios supported by strong secular trends, we are a compelling investment opportunity for anyone looking for a company with strong growth initiatives and a commitment to returning cash to shareholders |
| Second, we are well positioned to build on our positive business momentum and have a strong outlook for fiscal year 2024 |
| First, fiscal 2023 was a very good year for Atkore |
| Starting on Slide 13, Atkore is a differentiated company and a great investment opportunity |
| The financial and portfolio-related achievements we've made since IPO as well as the strong secular tailwinds and growth opportunities we have ahead of us have positioned Atkore well for continued success |
| We delivered financial results well ahead of our expectations, and we made great progress on many of our strategic initiatives |
| We continue to be recognized as an employer of choice, and I believe that our talented team is a true [competitive] (ph) advantage for our company |
| Bill Waltz And the other thing, Deane, not part of your question, but what I'm excited about that shareholders should be is the chart that we walked through where we're forecasting double-digit organic growth, which to me was that and the dividend were two things that should be very positively received by our shareholders as we go forward |
| David and I are confident in our business, and I'm pleased to report that we repurchased an additional $75 million in stock in the Q4 |
| We are proud of our accomplishments, and we've worked diligently to evolve Atkore into an industry leader |
| Nice quarter, nice year |
| to help expand the electrical capacity, I think that's a very big positive for us |
| So, the market is exceptionally healthy |
| Volumes were positive in the quarter and total profitability was stronger than expected |
| So again, this was a strong year that beat our expectations and guide, analyst expectations and guide, this quarter's that we just wrapped up, analyst guide for EPS and EBITDA and so forth |
| However, our profitability on both the adjusted EBITDA and EPS basis was much stronger than originally anticipated |
| We're extremely pleased with our overall financial performance |
| Nonetheless, margins were better than expected, and we were encouraged to see volumes in our PVC-related products were flat on both a year-over-year and sequential basis |
| But really the stuff that we presented in November a year ago is playing out other than slightly better than exactly to go, "Hey, over a two-year period, here's what we think we're going to keep because of our service, our regional service centers, the ability for one order, one delivery, one invoice |
| Under the GGAM method, earnings and margins would have been much stronger and closer to 14% |
| I'm confident in the team, the strategy, and processes we put in place to continue Atkore's strong trajectory |
| And we are very pleased with what we've achieved over the past several years, and we're even more excited about the opportunities ahead |
| Despite these changes, we believe our growth investments and our capital deployment model support our ability to deliver [more than] (ph) $18 per share of adjusted EPS in FY '25 |
| In addition, our metal framing, cable management, and construction services businesses are very well positioned to support the continued growth of global mega projects |
| This part of our business grew double-digits in FY '23, and we expect continued high-single digit growth this year |
| This team has done a tremendous job growing Atkore's presence with some of the most recognized companies in the world |
| We anticipate net sales to grow in FY '24, led by the low double-digit volume gains |
| The introduction of this dividend is supported by our strong performance over the past several years and our confidence in the future |
| With our exceptionally strong balance sheet and diverse product portfolio, we are well-positioned to deliver long-term value for all of our stakeholders |
| Statement |
|---|
| In FY '23, we achieved 3% volume growth, which was slightly below our expectations of mid-single-digit percentage growth for the year |
| In the fourth quarter, net sales declined 15% year-over-year to $870 million, and our adjusted EPS decreased 24% to $4.21 |
| Looking at the full year, net sales decreased by $395 million due to lower average selling prices |
| Margins compressed in our Electrical segment in the fourth quarter, driven by continued price normalization in our PVC-related products |
| During the Q4, there was a clear slowdown in demand coming from the telecom industry as the market and channel is working through elevated inventory levels and timing related to some of the government's stimulus funding |
| In addition, the ramp in production of our new facility in Indiana was behind our expectations, which led to slightly lower levels of shipment than we had anticipated |
| The year-over-year volume declines in the quarter were in our HDPE and cable products |
| And then, the other portion would be our slower-than-anticipated startup for our solar plant |
| It's important to acknowledge that the declines in adjusted EBITDA and adjusted EBITDA margins include the recognition of the solar credit adjustment to cost of sales |
| And on the HDPE side, obviously, lots of talk about the telecom softness from multiple avenues |
| Yes, there are challenges as you've heard about the industry and inventory, timing of stimulus funding and so on |
| This slowdown caused an unanticipated impact of volume to our HDPE-related products |
| Net sales for this part of business declined due to lower average selling prices resulting from the year-over-year declines in raw material input costs and the impact from solar credits offsetting the strong volume gains |
| For example, we expect price versus cost to be a headwind of approximately $225 million to $275 million on an adjusted EBITDA basis |
| Partially offsetting this growth will be continued pricing normalization, which will lead to lower levels of adjusted EBITDA and adjusted EPS |
| Now our challenge is probably more on just production on that side of the business |
| The timing cue for this year again relates to the startup of [Technical Difficulty] in Indiana where it's a little bit slower than we expected |
| And then just last question for me is on cash flow, was seasonally for your fiscal fourth quarter a bit light |
| We've seen a general decline down |
| Of that amount, we would estimate that nearly $175 million has already occurred when you look at lower margin levels exiting FY '23 versus the start of the year |
Please consider a small donation if you think this website provides you with relevant information