Atkore Inc

Previous wording

Net sales decreased by $35.3 million or 4.2% to $798.5 million for the three months ended December 29, 2023, compared to $833.8 million for the three months ended December 30, 2022. The decrease in net sales is primarily attributed to decreased average selling prices across the Company’s products of $130.4 million as a result of expected pricing normalization and the economic value of solar tax credits to be transferred to certain customers of $14.9 million. This decrease was partially offset by increased sales volume of $106.2 million.

Current wording

Net sales decreased by $103.0 million or 11.5% to $792.9 million for the three months ended March 29, 2024, compared to $895.9 million for the three months ended March 31, 2023. The decrease in net sales is primarily attributed to decreased average selling prices across the Company’s products of $85.5 million as a result of expected pricing normalization, the economic value of solar energy tax credits to be transferred to certain customers of $10.8 million, and decreased sales volume of $7.5 million.

Previous wording

Cost of sales increased by $8.5 million, or 1.7%, to $507.9 million for the three months ended December 29, 2023 compared to $499.5 million for the three months ended December 30, 2022. The increase was primarily due to higher sales volume of $72.7 million and higher freight costs of $11.1 million, partially offset by lower input costs of steel, copper and PVC resin of $62.3 million and the benefit of solar tax credits of $19.1 million.

Current wording

Cost of sales decreased by $41.7 million, or 7.7%, to $501.3 million for the three months ended March 29, 2024 compared to $543.1 million for the three months ended March 31, 2023. The decrease was primarily due to lower input costs of $34.0 million, the benefit of solar energy tax credits of $12.8 million, and lower sales volume of $3.5 million, partially offset by higher freight costs of $9.4 million.

Previous wording

Selling, general and administrative expenses increased by $10.6 million, or 11.8%, to $100.6 million for the three months ended December 29, 2023 compared to $90.0 million for the three months ended December 30, 2022. The increase was primarily due to increased general spending on business improvement initiatives of $12.6 million, higher variable compensation and commissions of $1.0 million. and partially offset by decreased spending across a variety of other spend categories of $3.0 million.

Current wording

Selling, general and administrative expenses increased by $0.3 million, or 0.3%, to $98.5 million for the three months ended March 29, 2024 compared to $98.2 million for the three months ended March 31, 2023. The increase was primarily due to increased general spending on business improvement initiatives of $6.8 million partially offset by decreased spending across a variety of other spend categories of $6.5 million.

Previous wording

Interest expense, net decreased by $1.7 million, or 17.9% to $7.8 million for the three months ended December 29, 2023 compared to $9.5 million for the three months ended December 30, 2022. The decrease is primarily due to decreased interest rates on the Company’s Senior Secured Term Loan Facility.

Current wording

Interest expense, net decreased by $0.2 million, or 1.8% to $8.3 million for the three months ended March 29, 2024 compared to $8.5 million for the three months ended March 31, 2023. The decrease is primarily due to decreased interest rates on the Company’s Senior Secured Term Loan Facility.

Previous wording

The Company’s income tax rate decreased to 17.5% for the three months ended December 29, 2023 compared to 21.9% for the three months ended December 30, 2022. The decrease in the current period effective tax rate was driven by an increase in the excess tax benefit associated with stock compensation.

Current wording

The Company’s income tax rate decreased to 18.7% for the three months ended March 29, 2024 compared to 23.5% for the three months ended March 31, 2023. The decrease in the current period effective tax rate was driven by an increase in the excess tax benefit associated with stock compensation and the benefit related to solar energy tax credits enacted as part of the IRA.

Previous wording

Net sales decreased by $45.0 million, or 7.1%, to $593.7 million for the three months ended December 29, 2023 compared to $638.7 million for the three months ended December 30, 2022. The decrease in net sales is primarily attributed to decreased average selling prices of $114.3 million as a result of expected pricing normalization and partially offset by increased sales volume of $65.5 million.

Current wording

Net sales decreased by $90.1 million, or 13.2%, to $590.8 million for the three months ended March 29, 2024 compared to $681.0 million for the three months ended March 31, 2023. The decrease in net sales is primarily attributed to decreased average selling prices of $87.1 million as a result of expected pricing normalization and decreased sales volume of $3.8 million.

Previous wording

Intangible asset amortization expense increased to $14.5 million for the three months ended December 29, 2023 compared to $12.8 million for the three months ended December 30, 2022. The increase in amortization expense resulted from additional intangible assets acquired in business combinations in fiscal 2023.

Current wording

Intangible asset amortization expense increased to $28.7 million for the six months ended March 29, 2024, compared to $27.6 million for the six months ended March 31, 2023. Increased amortization expense resulted from additional intangible assets acquired in business combinations in fiscal 2023.

Previous wording

Adjusted EBITDA decreased by $13.9 million, or 41.6%, to $19.5 million for the three months ended December 29, 2023 compared to $33.4 million for the three months ended December 30, 2022. Adjusted EBITDA margins decreased to 9.5% for the three months ended December 29, 2023 compared to 17.1% for the three months ended December 30, 2022. The decrease in Adjusted EBITDA and Adjusted EBITDA margin was largely due to lower average selling prices over input costs.

Current wording

Adjusted EBITDA decreased $21.6 million, or 32.4%, to $45.0 million for the six months ended March 29, 2024, compared to $66.6 million for the six months ended March 31, 2023. Adjusted EBITDA margin decreased to 11.1% for the six months ended March 29, 2024, compared to 16.2% for the six months ended March 31, 2023. The decrease in Adjusted EBITDA and Adjusted EBITDA margin was largely due to lower average selling prices over increased input costs.

Previous wording

We believe we have sufficient liquidity to support our ongoing operations and to invest in future growth and create value for stockholders. Our cash and cash equivalents were $380.9 million as of December 29, 2023, of which $83.6 million was held at non-U.S. subsidiaries. Those cash balances at foreign subsidiaries may be subject to withholding or local country taxes if the Company’s intention to permanently reinvest such income were to change and cash was repatriated to the United States.

Current wording

We believe we have sufficient liquidity to support our ongoing operations and to invest in future growth and create value for stockholders. Our cash and cash equivalents were $368.1 million as of March 29, 2024, of which $94.6 million was held at non-U.S. subsidiaries. Those cash balances at foreign subsidiaries may be subject to withholding or local country taxes if the Company’s intention to permanently reinvest such income were to change and cash was repatriated to the United States.

Previous wording

During the three months ended December 29, 2023, the Company was provided $158.1 million by operating activities compared to $198.9 million during the three months ended December 30, 2022. The $40.8 million decrease in cash provided was primarily due to decreased operating income and $24.7 million of tax impacts partially offset by a $32.6 million decrease in cash used in working capital.

Current wording

During the six months ended March 29, 2024, the Company was provided $245.3 million by operating activities compared to $403.4 million during the six months ended March 31, 2023. The $158.1 million decrease in cash provided was primarily due to decreased operating income, and an increase of $58.0 million cash used in working capital.

Previous wording

During the three months ended December 29, 2023, the Company used $50.3 million in investing activities compared to $117.2 million during the three months ended December 30, 2022. Cash used in acquisitions decreased in the first quarter of fiscal 2024 by $76.2 million primarily as a result of the acquisition of Elite Polymer Solutions in the first quarter of fiscal 2023 and no acquisitions in the first quarter of fiscal 2024. This decrease in cash used in investing activities was partially offset by higher cash used of $9.3 million related to capital expenditures in the first quarter of fiscal 2024.

Current wording

During the six months ended March 29, 2024, the Company used $79.0 million in investing activities compared to $156.1 million during the six months ended March 31, 2023. Cash used in acquisitions decreased in the first quarter of fiscal 2024 by $77.4 million primarily as a result of the acquisition of Elite Polymer Solutions in the first quarter of fiscal 2023 and no acquisitions in fiscal 2024.

Previous wording

During the three months ended December 29, 2023, the Company used $118.2 million in financing activities compared to $164.8 million used during the three months ended December 30, 2022. The decrease in cash used in financing activities is primarily due to $53.6 million less cash used to repurchase common stock during the three months ended December 29, 2023 compared to the same period in the prior year partially offset by $6.5 million more in issuance of common stock, net of shares withheld for tax.

Current wording

During the six months ended March 29, 2024, the Company used $187.5 million in financing activities compared to $284.3 million used during the six months ended March 31, 2023. The decrease in cash used in financing activities is primarily due to $113.2 million less cash used to repurchase common stock during the six months ended March 29, 2024 compared to the same period in the prior year partially offset by fiscal 2024 dividends paid of $11.7 million and $4.5 million more in issuance of common stock, net of shares withheld for tax.

Previous wording

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 Quarterly Report. 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 Quarterly Report, 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 U.S. Securities and Exchange Commission, including but not limited to the Company’s most recent Annual Reports on Form 10-K and reports on Form 10-Q and Form 8-K, 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:

Current wording

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 Quarterly Report. 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 Quarterly Report, 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 U.S. Securities and Exchange Commission, including but not limited to the Company’s most recent Annual Report on Form 10-K and reports on Form 10-Q and Form 8-K, 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: