Atkore International Group (ATKR) Tops Q1 EPS by 67c, Revenues Beat; Raises FY21 EPS Guidance Above Consensus

Atkore International Group (NYSE: ATKR) reported Q1 EPS of $1.88, $0.67 better than the analyst estimate of $1.21. Revenue for the quarter came in at $511.1 million versus the consensus estimate of $457.06 million.

• Net sales of $511.1 million, up 14.2% versus prior year
• Diluted earnings per share of $1.75; Adjusted net income per diluted share of $1.88
• Net income of $85.1 million; Adjusted EBITDA of $137.0 million
• Board of Directors approved share repurchase program on January 28, 2021, under which the Company may repurchase up to $100 million of its outstanding common stock over the next two years
• Full-year Net sales expected to be up 16% - 20% compared to fiscal year 2020
• Full-year Adjusted EBITDA outlook increased to $440 million - $460 million; Full-year Adjusted net income per diluted share outlook increased to $5.65 - $5.95

“Atkore started fiscal year 2021 with another record quarter driven by strong performance across our businesses. In particular, we had better-than-expected results in our PVC electrical conduit business where we met increasing market demand amidst industry supply constraints through successful implementation of the Atkore Business System,” commented Bill Waltz, Atkore President and Chief Executive Officer. “Across Atkore, our teams continued to prioritize delivering excellent and reliable service to our customers, driving $511 million in net sales, while adhering to our health and safety policies. I want to thank them for their outstanding commitment to this level of operational execution."

“We raised our outlook for the fiscal year to reflect the results we achieved in the first quarter and the outsized growth in the PVC electrical conduit business we expect to continue through the second quarter. With a strong balance sheet and a focus on driving value creation, we will continue to prudently deploy capital through a combination of investing in our business, returning capital to our shareholders and paying down debt. Our new share repurchase authorization underscores our confidence in our ability to continue to grow earnings and generate strong cash flows.”

Share Repurchase Program

On January 28, 2021, the Board of Directors approved a share repurchase program, under which the Company may repurchase up to $100 million of its outstanding common stock over the next two years. The Company will conduct repurchases under the new program in the open market and through broker negotiated purchases in compliance with Rule 10b-18 of the Securities Exchange Act of 1934, as amended, and subject to market conditions, applicable legal requirements, and other relevant factors. The share repurchase program will be funded from the company’s available cash balances. This share repurchase program does not obligate the company to acquire any particular amount of common stock, and it may be terminated at any time at the Company’s discretion.

GUIDANCE:

Atkore International Group sees FY2021 EPS of $5.65-$5.95, versus the consensus of $4.19.

Based on market trends and Atkore’s continued execution, the Company is increasing its outlook for Net sales, Adjusted EBITDA and Adjusted net income per diluted share for fiscal year 2021. The Company expects Net Sales to be up approximately 16% to 20%, and Adjusted EBITDA to be in the range of $440 to $460 million, up approximately $100 million dollars versus the prior outlook. In addition, the Company expects Adjusted net income per diluted share to be in the range of $5.65 - $5.95. This updated outlook reflects Atkore’s expectation that the strong demand and industry supply constraints in the PVC electrical conduit business will continue through the second quarter and that they will normalize in the back half of the year.

In light of these trends and the current environment, the Company is also providing its initial perspective on fiscal year 2022. The Company expects fiscal year 2022 Adjusted EBITDA to be approximately $400 million, which is in line with historical double digit growth rates when compared to fiscal year 2020. 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 2021 outlook for Adjusted EBITDA and Adjusted net income per diluted share and full-year 2022 outlook for 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.

For earnings history and earnings-related data on Atkore International Group (ATKR) click here.

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