Atkore (ATKR) 18 Nov 222022 Q4 Earnings call transcript

Company Profile

Participants

John Deitzer	Vice President-Treasury and Investor Relations
Bill Waltz	President and Chief Executive Officer
David Johnson	Chief Financial Officer
Deane Dray	RBC
Andy Kaplowitz	Citigroup
Chris Moore	CJS
Chris Dankert	Loop Capital

Call transcript

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Operator

Good morning. My name is Rob, and I’ll be your conference operator today. At this time, I would like to welcome everyone to the Atkore's Fourth Quarter and Full-Year 2022 Earnings Conference Call. All lines have been placed in a listen-only mode. After the speakers' remarks, there will be a question-and-answer session. reminder, is a recorded. As Instructions] this being conference [Operator Thank you. Relations. like I President conference Investor to over now of to and Vice the Deitzer, turn would John your Treasury host, Thank you.

You may begin.

John Deitzer

CEO; I'm and you, by President David Officer. good Chief everyone. as Thank joined as well morning, Bill today Waltz, Financial Johnson, and

future remind projections actual uncertainties performance after such press may projections this and during call, factors results contained refer the Please may or make to We identify our questions Bill statements materially David. that comments which SEC that will involve that take today's financial I forward-looking everyone and results forward-looking in statements. events statements company. differ differ cause actual Such those to materially. regarding filings or by of could important our your would or like from to risks release, we in

EBITDA is today's non-GAAP to In today measures discussion that, addition, EBITDA. to comparable to most in a Reconciliations are turn it of I'll adjusted With Bill. reference measure. GAAP available EBITDA the in any measures of the non-GAAP appendix means presentation. Adjusted presentation and over our a

Bill Waltz

X, and again everyone. morning, John, on pleased Starting Atkore Thanks, report to that delivered Slide results. good operating outstanding I'm

from and share of with get review our the longer-term provide a our additional will growth financials the we but start highlights review past full-year this journey our into business. of do, strategy details discussion me before During over today, David we successful our years, year. some for as let on our take outlook the few that, to discuss opportunity normally quarterly and we'd But quick like the also

and achievements. of We were ES&G a recognized X. our plans, all across customer record results, progress innovation, for operational on the Slide XXXX financial fantastic and year to great made service Turning we organization. our delivered was facets

like tirelessly and support course, Of talented our employees could worked our I'd be their to moment great them to of without recognize take who to for this none this customers done work.

over proving our expenditures deployment through XXXX, and X a deployed In of goal we to addition, the we've of announced capital share significantly achieved over Polymer the repurchases. In we FY with $XXX billion capital deploy Solutions the over and model. X, in goal in we've M&A October to execute continue we $XXX three Last November, years next of recent cash a completed two ahead to Elite now million schedule. combination share repurchase acquisition since that and

the are to leader the its objectives. our a to customers, David a repurchases, In capitalization setting terms that to these be shareholders. over Atkore of to a XX vision is high see in the more Without we doubt, industry relied for market achievement and the XX% of realize of deliver past commitments into for Atkore and upon months. that do ratio. evolve We work through on its strategic we leading than say consistently can are recent bought I employees, back team standard extremely a proud our diligently

to the David from the to talk and Now, the over turn I'll through fourth call quarter full-year. the results

David Johnson

morning, good and everyone. Bill, you, Thank

$X.XX. Moving Slide EPS to sales net billion $X and fourth increased on our XX% year-over-year increased our consolidated X. In XX% results the to quarter, adjusted to

was to full-year, billion Adjusted $XX.XX. grew our the and For EPS revenue for $X.X XX% we billion. achieved $X.X full-year adjusted EBITDA in the

XXXX. quarter bridges. we in as gives to which were in Volumes our volumes, the strong enter and saw positive us we consolidated in Turning X Slide confidence addition October

that, EBITDA the which Very through in and initiatives. XXXX and capital our turn I'll execute contributed net back creation to it positively about in growth sales [$XXX with Looking the to you future. million] value growth both adjusted the as selling drive With speak higher to [ph], full-year, ability from increased recent FY acquisitions, our by due Bill prices pleased to contributions to well. the are at confident and in with of deployment performance in

Bill Waltz

David. Thanks,

regarding Turning outstanding market a and we're our deliver strategy investment balance value the leading minutes now With operations strong our commitment sheet opportunity. spend to by performance. I we our expectations and move and are all Atkore to some next our our then long-term disciplined of to of and for stakeholders. values, company focus and exceptionally more confident compelling and is positions of few Page our an on X, into the highlights will supported David detail and future well-positioned operational touching

of Atkore Business X, Slide do we foundation day. and Moving it System the company is the our to every drives everything

with remains example, XX, electrical framing, share and support a XX, cable the a we our electrical timely aligned offering products overall to as tray, the our segments, full Slide and customers process. our brands devices true and lifecycle Atkore pre-fabrication for is safety solutions of have and can market in Business been the on that across our effectively because U.S. Atkore. such Slide provide construction the contractors operating the integrated in broad of of product well. critical manner. electrical are This products you insights infrastructure support System segments the On and to and metal of contractor we infrastructure highly the For many and and as channel differentiator has Between of electrical mission It our ability. capabilities and see distribution distribution the the

have sales XX, businesses Slide the grown the since to earnings significantly XXXX. of Turning and

by of As earning we pipe products. outperformance plastic prices significantly we conduit benefited and past we in discussed recognize calls, our driven that the from elevated

Atkore time, System. the areas same approach over strategic in evolved informed Business by process years, we've driven several has M&A. decisions of foundational our especially of many and business the our leveraging This past pricing the at the However,

have decline over execution as is increases in most made of from decline For categories. our select volumes loss areas on What's decisions Conduit resulted strategy, These price we $XXX that our to in focus been opportunities market a drive years. business. Steel that for exposure retail resulting profitable million fantastic our with earnings the and This in to example, the combination successful strategic five declines decisions a reduce has in such the and testament negligible. that is notable, vision, past however, in

we've in that look significant at and our sustainable that regards to of going we profitability, the is driven benefit benefit XX% pricing As we forward. estimate approximately

we've Turning to how shows Slide XX, which business. our and expanded strengthened

high the support enabled our With changes call as Over This future. to sales end who and our continue our mission adjusted grow that our we've as since more to turn increase double five the and our sales EBITDA through addressable total period. and $X David be customer's capture us to opportunities billion our to I'll $X.X decision we've under megatrends transformation us to both fundamentals well the us in percentage Consistent will the over our leveraged business. just margin in also improve IPO, to years in our increased past from business, driven market back to markets XXXX today areas and mix, investments choice. has same and inorganic that profitability. and thoughtful Through walk that, capability billion to organic the mix, the success in serve first opportunity, execution underlying market enabled we growth this has and than Atkore's making these successfully

David Johnson

due the our [ph] success] nature products our to have we achieved ability to in Slide years end to recent XX, universal Moving serve markets. of [other multiple is and

In throughout addition, our used building of are products the life cycle entire the construction process.

for of outlines fundamentals end notably are compared positive several underlying the external of XX each moving strong. Slide direction, markets the XX-month is year forward, track ago. average monthly in to and rolling a them our of factors we Looking the the

as diverse on support Slide the XX. Our megatrends portfolio solid underpinned market shown product are fundamentals by that our

varying driver our exposure this have different these ensures not opportunity. any that one or of one area our to dependent levels are While single trends, product demand categories too on we of

example, products. Electrification to investments our conduit our and by while benefit utilities believe of For Everything private outsized driver an lines portfolio, pipe will the entire plastic will certain power steady underground trend expected be across on we demand have the

projected balanced turn our believe will In move forward. success With continued we that back to addition, Act the growth our Reduction [products to Bill. mechanical solar tube from and it benefits approach should advantage I'll that, be integral as list] we this as in the the Inflation [ph]

Bill Waltz

M&A Thanks, pursuing or playbook proven David. On central to our key we have growth. growth Slide investments, organic acquisitions. our through a is when M&A a strategy Whether XX, we growing and of focused on are will conduits categories. we've utilize and executing and outlined pipeline that robust also we

we on our large growth For HDPE and the tubing future opportunities mechanical for in touch us and open significant momentarily. products both will believe in I'll example, up expansion

our to it to invoice. striving innovation. strategy be grow all and focused investments to goal the Underpinning customers our efforts experience seek our of is our these easy customer business in we delivery, choice and This to product order, making one first and by part one is achieved and Atkore. improve digital one through with categories deliver our do Lastly,

the very each focused XX, Atkore improvements we deal of System. approach With a Slide are through we have to Business execution M&A. Turning we thoughtful and disciplined the make, on to synergy driving

Business spent enter a Xx execution XXXX $XXX years, we into past Slide revenue We traded FY of representing FY XXXX and and growth our over M&A less in geographical these Atkore on XXXX. synergy than the to FY XXX synergies made our of Of driven XXXX a demonstrates of adjusted XXXX, progress between return System. terms new That and past was the several in the that, on in less group million the our been markets. years. million capital. combined deals presence, FY improvement Over our outstanding to driver capabilities, product Xx have in than deployed invested EBITDA by at XX result of a between expand M&A key tremendous and bolster several acquisitions

our those Solutions, recently ago. Our reaffirms acquired forward to our grow group you track to that strengthen approximately two completed HDPE drive lines, of record we'd like latest the will acquisition, happy our of welcome future continue our XX, the Elite and Along help to acquisitions our portfolio which employees look of to we successful performance. We're Page and have to together. weeks expectation Polymer turning join team integration

be HDPE we leader products XX, the an outlined $X represents to Slide a for applications and strategic organic in product overall. our conduit and Top acquisitions Through broadband investments, XX a telecom expect market category As opportunity. on player approximately the and billion

date the the year broadband for communities. meet this to rural have in Networks XG better enabled customers serve to from the investments us growing and access resulting of demands and Our expansion

market our investment are we driven have believe approach end Another well-positioned Slide production. investments our markets large new to and is from we product is the as in prioritizing tube focus facilities capture Indiana, our key the to in win. XX With growth innovation we believe on is categories this and on solar. mechanical year outlined such Arizona Supporting the we right

have we to broad categories Slide set a diverse in opportunities several Turning key have to in and of operate. because the products, gain we we share which XX,

diversified customers drive our future discuss our back to contribute now success over us to will David, is turn call success. how Our to these financial the and initiatives performance. contractor who I'll approach also enables central help our and to can

David Johnson

the Slide sheet On in years attention our leverage call strong XX, balance gross our performance several to over reduction our our Bill. and metrics. the strength I'd we various like across Thanks, financial to ratio. past outlined your of

of balance sheet, approach strong we capital and maintain is always a especially environment. ours As to an macroeconomic disciplined take know, allocation you focus important a a uncertain and

Although for XXXX our XX a environment. market with months, contractor we a projections the potential global concerned the recession over in backlogs moving about the are FY in strength and and demand XX next near the still forward the recession beyond given it term to for are we U.S. of

the backlog, companies the future our said, their may have several in drive will the which products. current about be example, economic industry For turn other electrical uncertainties. XXXX given being That in demand a spoken big for large in growth volatile

to we $XXX $XX to and XXXX the on credits to of of This higher Reduction $XXX provided flow we Page our is outlook million expect we million sales the to adjusted flat credits lower over prepared year these does an to We previously. the Page Inflation the expect in from EBITDA expect times the the and FY This net to our associated be range as our to we the XXXX be enjoyed not down growth customers. than years with for in do outlook we million. include expected Act XXXX expect expect as fiscal through past XXXX we XX, being benefits FY strong incremental outperformance will solid EBITDA started perspective margins. tax majority drivers. preliminary any FY bridge normalize That volume on key with we between pricing with mid-single-digit XX several in mentioned versus has adjusted XXXX we've and this Turning Illustrative And and previously, FY that year said, adjusted EPS XXXX. several under

Moving lower XXXX we over framework projected to three years. and cash to capital billion] our already [$X beyond. to goal generate to we've earnings the that updated Slide XX, next even still deployment with two to year, expect flow to last [ph] in we set out FY November healthy achieved the reflect We've deploy

our inorganic income flow, continue next as years. Looking XXX% forward, we repurchase average we flow that in organic as continue from invest and expect well over the net will to share to operating cash activities cash strong program. to growth, several With both

in approved authorization million] prior [about Board deploy an increase to halfway XXXX. to program. share through Our [ph] our $XXX through repurchase our now expenses just November remaining We're

achieve focus commodity impacting factors initiatives we By walked Turning deployment some page cost illustrative expect over next EPS. a bridge. believe we updated is to earnings per XXXX, greater Slide value the business XX, as significant FY adjusted input than EPS model the believe today combination Bill and with more EPS such we through the years. creation capital our $XX because moved [Indiscernible] metric. share drive in target in that other to We've the several EPS fluctuation will our make relevant items of our to

us to I is the goal. well we focusing allows to share reach we expect that, reflect as with a it on forward to moving back believe per Bill. our addition, of EPS will model, team. growth. in expect drive our when deployment significant the which help capital from With fully we performance a team turn this lofty Achieving our and $XX conduits than than benefits within more In combination that

Bill Waltz

David. Thanks

we've what We year. are even We're pleased very ahead. more the fiscal with about excited accomplished this opportunities

positions, strong end us the to disciplined operational Atkore $XX greater Slide financial goal megatrends We [repelling] in place by adjusted our market to has EPS of Atkore XX, profile and believe our strong XXXX. of Moving foundation in deliver on than make focus, leading a I over and [ph] continue confident company. to to believe to the come the compelling Atkore’s I'll in strategy, processes place best to team, investment. that, line strong trajectory, and and the yet our I'm With in we it open operator firmly put for is turn for the questions. the

Operator

Dray first Instructions] Deane Your question from [Operator line comes RBC. the from of

line Your open. is

Deane Dray

morning, Thank you. Good everyone.

David Johnson

Deane. Good morning,

Bill Waltz

Good morning, Deane.

Deane Dray

of I appreciate sustainable Slide of given identified between to really because outperformance interesting this the some I lots you've good Can normalization you've because the and know That's the the price those longer-term pricing are just [indiscernible] definitions what XX% as that of or like by of is us us you've give looks Maybe outperformance it gets assumptions the of the So, two that through just, and pricing kind there of not that helpful. we on and where of XX, refer split bottom you focus given and buckets, pricing estimated Is of here. all versus is kind there's part gained pricing guidance assumptions just specific. a that real costs goal – the insight appearance the sense there. sustainable? at kind normalized? pricing take that's a page improvements? the

Bill Waltz

Yes.

Obviously, demand margins, can help, back are of lines is [indiscernible] the own to we every you because great and and increasing invoice, supply in that by we've So, of going by sustained but questions, what are line we start. even our one going factory past, for order, down commodity also delivery, the at our extra the Deane. forward, as that. price things self and like that the this set our still profit I'll know triangulated looking are product but product some as and ties way for market costs one get estimate one an in that

covered So, to. look versus we've gone since that, year and is every us going we're and you million familiar gained go, with to or we've on XXX And on what you're we the this corporation, actually think hey, price if is back you've public saying hold to cost.

and price. same going are think some give we hand, saw do some on So, we probably to year in that we the up this

Now, a the means points, is, say, obviously, can if job, mindset XXX would our anchor what our team given I we $XX up. even that then how internal but think And the of model that realistic hold say of $XX we let's to around. we've that is, more. to on a even more goes external share, turn do this view But and drive I around it's already

think couple number that realistic of I perspectives. a a it's from we’ve So, triangulated

Deane Dray

All right. That's really helpful.

here you've is kind the a of it of I consistent three way and If here, pricing just but demand. there maybe Now, what we've market about about that's laid out normalization kind just is that dynamics follow-up thought think as

etcetera, in dynamics pricing, still we there give and supplier, costs, happened the PVC it. you again and then own of as on normalization. backlog? It's supply can national see the what's driving have maybe also part is a good So, can you the if to invoice The one those sense input that all can us the not that indicators demand its that's given but you've see we a of advantages

the if costs? it what seeing, your demand backlog think impact supplier the separate input of we national of So, as a three then advantages about dynamics, kind lower as you're the that and

Bill Waltz

perfect, Deane. so Yes,

investment look optimistic, avoided here. and last over another [indiscernible] different month Reduction would which all going of and billion Act market include, specifically all these called underground. Infrastructure Act and also the would don't forward, is and within month fiber sometimes Inflation a month, we're $XX in I optic optimistic deck say the and they what's factors megatrends, [ph], the David and something, Infrastructure there's slide Act, the for or like all month, we're one [beads] that which So, demand, in covered the factors ABI the But lines put type

here, other to the different companies, whether so any non-residential So, you cover there it's very is from and many seems or others bullish. be dynamics market almost investor

is of not Even would the it be consumer hit side as on recession, much So, non-res or optimistic. impacted will if we're the world. there not a

relationships seeing megatrends invoice, doing, full one market compared So, single-digit we the customers, on shipping products know mid-to-high what a difference even at all price like we're with order, like say supply of and advantage I'll advantages, and one to Atkore, demand the and products the the have actually bundle delivery, one then optimistic you these to just full between package I] ability [ph]. or [you truckload, we're

went you it everything you place If buy one to want to delivered. website, a and get

that. customers appreciate Our

we're So, we optimistic go I'll then expect on higher markets. points, market the of in again, basis bridges the where show to XXX input we way, the to why, the by and That's grow one points basis XXX than costs.

where that price In our we've and we or to organic with think page customers – top. past, back the and gotten referenced. it's point and proven on seeing Page then I mid-single forward growth digit cost your going truly inflection You're optimistic an M&A XX, on we're

of down around downward, inching last going to drop then XXX still really subside decade up. coppers to roughly now starting going to but of the to steel Atkore, inflection overall, $XXX And and start is from PVC high So, go the per its $XXX, costs are will through advantages, half end point $XX, costs this amazing from way supply XXX. the the between one's then are off roll and continue year one-third, down I $XX, market an performance. think I plus obviously input think an for

way, to So, time, of down one our confidence, input that's example and prices. give ability by going cost same relationships. our to one time, the on like at you just They because we continue deliver other then, the the products, HDPE, to use raise

in as that we have, this we as XXXX. $XX forward year. for that an we beyond estimate for raised So, the this that's comfort to And to look it's guidance why both look the and out, still we get

we you our hopefully realize past the also have bullishness in both future. performance, the So, but

Deane Dray

really a well here Is year, for your I half guidance. – And there wanted the Yes, the just questions you quarter [Multiple dynamic? your helpful. first are the and guide them? – versus that that's cadence above you're is to what's view expecting first – expectations. on second the Speakers] Mostly And sense just take half with of on

Bill Waltz

question, do of natural good, business. the to Yes, other great underestimated over the of it's things your team point gas if million one XXX the hear seasonality conservatism, and typically you to from with the in I the Deane. to do Hopefully, XXX strike to million we're to XXX XXX while summer or that I war David but level one we there's say the is want where railroad and here million the things million, the would weather. and or or never companies simply guiding

drive of So, logical I'm hopefully have place go think of numbers is a of comfortable up headwind. move we're in price rational, pick as this initiatives working that's the lot that which forward, market probably put But [indiscernible] a we go on the that very front forward, but with it's to some still at seeing going kind we organic going I But we we the numbers. given we number we're will our PVC we a of start growth, into to these as group. moment, as can that

Deane Dray

all helpful. Thank you. That's very

Bill Waltz

Thank you, Deane.

Operator

Your next Citigroup. question comes from from Kaplowitz of the Andy line

line is open. Your

Andy Kaplowitz

Hey, everyone. good morning,

Bill Waltz

Andy. morning, Good

David Johnson

Andy. you are How

Andy Kaplowitz

said Obviously, mentioned non-res of have more a channel in and quarters markets? in more can to more to was it you growth backlogs, your positive recently but a to remained destocking indicators ABI volume ease? massive bit you soften strong contract key QX, a that few the coming function saw resilient supply end headwinds Was after an negative. And So, little continue was did a then, chain that October. of about bit core talk you you or

are XXXX? for seeing you you signs weakening any markets non-res of assumptions non-res And FY baking are what where markets? the core into So,

Bill Waltz

Yes.

say you'll The use [glad] our point were that's us. set obviously, a mid-high-single-digit final products just just, up So, of that, but you growth during and To digit the discussions that I'll behind us. talked low that therefore, saw be the is lot most think destocking to thing behind of metal. I we've that of single other I of core word, the And [indiscernible] the like questions, [ph], with great Andy. your

You a know Deane asked going $X,XXX XXX. the from over cost question year to with

lower customers are they behind to all October gives of probably Our overall as were I growth. wise we amount materials but think of it enough digit optimism stocking, us in the and that's raw us type seen give and good forecast moving forward mid-single we've of

So, [good Andy, but in for the I maybe answering for there] [ph], audience general. you, think not I'm

billing with things the a month. it's over month is of One the architectural index

went Contractors example, a electrical just you that September's Building if the have look talked two rise, yes, months Association optimistic for I'm October's laptops. taking whether ABC for one ago. pride of and data, on you means, it's was that But of backlog, the So, backlog still ourselves in it same the after companies month. as shipping it and to at industry XX week. from or then we down other order months in Again, And

we're optimistic on a own literally Switchgear, customers, at so that to our what I the they're like trends future. that forth, seed There's backlog many positive So, over out see indicators. different versus other can't and other the talk much look competitors key year, so have

that's and are mega to what in different like I electrical that and things or do think going chipset, brands content your them. if of the then healthcare, the Andy answered there, have I these a So, for facilities most of big lot factories making out questions customers

So…

David Johnson

is would only I add, this the thing David. Andy,

[ph], it's I – based. broad you look [start pretty there's If the data] at mean

If facilities, you around people at there's centers, hotels and around lately, – some there’s sort lot this like of airports, sort medical Even starts thing. pretty adding of of big starts look convention a that schools, thing.

least at now, looks based. it's like So, broad pretty right it

Andy Kaplowitz

it Very put out focusing FY maybe helpful you guys. XXXX then there. just because on And

know to that it's something in close but what get goal? maybe And more continue count share see leverage conditions do to baking see normalization and EPS to you're underlying your little market commodities $XX like you if a come growth are normalization after with that why to to look price the talk down? forecast? you And mid-teens net say, goal, And clarify I XXXX, need you then pricing You can about to wouldn't that. in continued assumptions that for continue just you

David Johnson

good it's seriously question. a Yes, a – it's good David.

be then as power our continue and is the underlying feel pricing So, normalization will And [indiscernible] it we low-single-digit first of But We on of by that some expectation little over also really and say our supply demand to XX%] do progress our we but capabilities. that red of shipping as market have enhance think period our and large we we [ph], be of our behind us would then this initiatives. all, with commodity obviously between line I in outgrow we RDC, you're on those say the initiatives there to robust. a the and would year. also I one remember, more kind that to expect even around time pricing, more it's correct [XX% start really perhaps saying will

in. So, what have we that's built

this capital as I far deployment, conservative think been we've As time. period somewhat over of

So, I as we'll level have of we but robust for an M&A and would in not say as little have we of with what then buybacks, a in our see. bit year see this for guide, you as can far last example buybacks what as similar year

Andy Kaplowitz

XXXX And price, on more of the the something XX% maybe then one mentioned, you're this is back on back to in just on just less? year, And you the bridge pricing XX that relatively like majority giving that [XXX] you're like is like what's in Slide looks that accurate? basically the [ph] outlook, [ph] David, that one revenue or when giving clarify, it. Got side, quick at [XXX] your you it look

David Johnson

That's an would accurate correct. be That Andy. assumption

Andy Kaplowitz

you. Thank Okay.

Bill Waltz

Thanks, Andy.

Operator

Your next CJS. Moore question from comes from the line of Chris

Your line open. is

Chris Moore

as Alright. guys. Amazing always. morning, Good quarter

Bill Waltz

Good morning.

Chris Moore

it It Talk cash bit free about very little maybe a morning. looks Good flow. was quarter. like a good

meet catch Maybe of, little that lots a didn't was kind going up bit net know cash CapEx cash there there? basis there's inventory flow] we about etcetera? go income to yearly maybe some free up on your Just So, little I target know is flow talk significantly. bit. a you still [XXXX and can a to [ph]? talk XXXX free up Is obviously of

David Johnson

Yes, absolutely.

say net would the in I XXXX. net be general, adjusted will percentage in higher of that income, slightly FY So income

working we've I say headwinds that down, of be our operating are obviously had last cash a but in think One, because the slightly couple flow two projections should EBITDA capital have then won't the things. years. down we

benefit So, that continued we increased CapEx that of Dallas the have increased investment again to build-out such. organic mainly capital, fact the and opportunities, HCP we've over in and robust we pretty the due of do have working growth our

why have that's here it's again, year. little going probably mainly than our lower of bit opportunities time the that But for over to be because XXX% target a So, it's initiatives. we in the robust next growth

Chris Moore

PVC bit kind of Very a the wonder versus of compare about it. Got kind contrast. we helpful. could And HDPE talk markets, just little maybe if I and more

some in your – the on any markets, just example, res an of perspective difference get sensitivity could rate curious interest Is different. thinking from XG For things be of of there I'm be that quite of end driver side, terms versus there kind the to would thoughts. the

Bill Waltz

Yes. Good here. of Chris questions, set

next literally aside demand, years. the expected that's to plus capital constraint I for go is there single serve. compounded five, much demand optimistic lines blue what the and HDPE, this by for there's is think lines by put funding collar that set product so can growth the been high the people they So, digit be out very the the underground, the seven both markets government

So, [indiscernible] how quick a installed. lines in and well-positioned we're be way good is the the in

right one out all of we putting then forth, the mentioned things we, this there. grid, so PVC infrastructure, so called underground, we also So, charged in lines have example, very optimistic. with lines And deck. that for hardening specific and also electrical

can XX% product For therefore we make example, material, there's it like that [indiscernible] weight. where less lines lighter it's where

position. good cost for a good for on contractor, us the So,

the of residential smaller there's bit unique market. of markets that So, there. into that's serve. But again, we lot a headwind one going things the of Little

there, with So, And in Dave, again, going that with M&A excuse for out keep deployment organic I that [$XX] enough [ph] have that me. we growth those and anchor with point all out there capital think say, investment probably back we putting EPS. things like

talk there can continue about to the valued bar. raise what then and to get do Atkore we'll Let's

David Johnson

thing general, And is in there's because also we but multi-family, when multi-family resi then, more with and just do impacted if one broader is only in portfolio robustness Chris, positively other than in say we some benefit multi-family. and up [softness we about our in you [ph], the mentioned there] residential did

Chris Moore

asked, Very it. not for may but it. one Last got me. It been I'm Got I helpful. have sure

So, just $XX? thinking count a that EPS, of $XX range in you're with terms guide share that that kind adjusted is of a there the about goes

Bill Waltz

I would just – that would we I and what so suggest XXXX look Well, at guide roll just for XXXX. for the

John Deitzer

Yes.

to so a count get this it's will some M&A pricing optionality going is difficult between a the the period. of on obviously that to to the Chris, thing – repurchases, share John. built-in. I mean have be We shares where we're specific right, share and

to some and we're optionality balance So, there flexibility. I think trying

Chris Moore

it I'll there. leave Thanks guys. helpful. Very

Bill Waltz

Thank you, Chris.

Operator

And Dankert your line next of the Chris question Loop from Capital. comes from

Your open. is line

Chris Dankert

Hey, I'd good first off, thank on questions. earlier waterfall. for taking guess, appreciate the [indiscernible], again that. Thanks on Slide I comments echo excellent I really XX, do morning. so the you

me what’s environment Is midpoint holding guide it. I up midpoint great? demand the you XXXX mean, the it in took I the of that a what's there? bit, the up details if specifically comps On Any additional given range be giving up is of taking kind you well? would confidence there, EBITDA missed pricing? Forgive on, it

Bill Waltz

everything. it's, easy obviously always of we're it's mean first – this pricing to that I little in now quarter guidance. we're halfway is so think Like holding give quarter, a it's I there. the Chris through but

So, that's thing. one

seeing later mid-single-digit seeing now making are increase. David, year the investments to fruition, We that will in this we're deployment. continue about to capital the come We're hit volume talked

analogy back of sets questions one year $XX. So, and the make to multiple this answer both the I'm it's green pass to city drive assume through light. those, to of here. hit and two always I of every going you trying the There's also

a planned other enough even one less, one is if there's strengths does where thing to little have we in go here. Here

and we million XXX by to year. since and not and year, for be bit, to $XX we to CEO XXX the in have increase $XX have probably little there's I'll have the here earnings here, the obviously could up went we to on and candid a I hear single each been guide both signal, guys, Chris, downside expect want missed in X%, but don't was So, also this going forward. confidence it on EBITDA and X% no risk a David moving just quite CFO, we through the a million, have We

Chris Dankert

up what market, looking the really M&A appreciate guys enough the Just very of color there? does I front, still the in commented and Are for on to guess, following but you the you're sell on more? comments just there. kind have the there busy on I the guess, kind of looking I Are guess you very, on pipeline been on side? look still still HDPE, comment I any you opportunities? HDPE the guide what

David Johnson

Yes, we, still $XX TAM for we've been HDPE, kind broader opportunities obviously some I'd are out active pretty I the and of there point we’ve in of billion but that outlined. think also other

and these that the broad of we lot wire a questions of some M&A around cable, of we our share categories get in but and of building of have markets, a in have we do do high thing. different things, lot number wire, sort So, opportunities

X that now been ago. So, point want say a would we have out X, portfolio the fact evolved, to TAM years I is have bigger it the which than weighted just much has

Bill Waltz

to add just I'll question. David Chris' And

HDPE there's absolutely acquisitions. So, other yes,

and old, acquisitions year example to but other I've the and so system a to have multiple our or that in you been over or M&A talked for M&A – And a EBITDA buy thing after investment a U.S., from is buy about facets that these I've Xx productivity we XXX like what called look add Dave for lines where business then one synergies do The Dallas core in our always the for page a always at, the shout out all the to where in heavy in pricing. not acquisitions say accretive has on how we been organic portfolio. out we literally million huge have now

You see the add. we accretive can can capability

we're again about the future, on playing cylinders excited hitting that's all why and we're because So, here.

Chris Dankert

Really appreciate the color guys. here. Best of luck XXXX on fiscal

Bill Waltz

Thank you, Chris.

Operator

call I concludes to final the today’s closing would now Bill session. remarks. this Waltz like question-and-answer for some to back over And turn

Bill Waltz

today's my Before from summarize key three we discussion. me conclude, let takeaways

an for was year XXXX fiscal First, Atkore. outstanding

well-positioned positive on a XXXX. strong have momentum FY our business are to Second, we build and for outlook

updated deliver our for Third, creation with call. our future growth to as and for speaking strategy and in forward and With we look your further our call model. interest execute our drive we to will value quarterly our you thank capital opportunities into today. continue next deployment on the support concludes you that, the This on company during

Operator

today's concludes conference This call.

You may disconnect. now

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