On November 17, 2023, Atkore Inc (ATKR, Financial) released its 8-K filing, disclosing its financial results for the fourth quarter and full fiscal year ended September 30, 2023. The company reported a decrease in net income and adjusted EBITDA for both the quarter and the full year, attributing the decline to pricing normalization and other market factors.
Financial Performance Summary
Atkore Inc (ATKR, Financial) experienced a decrease in net income per diluted share to $3.63 in Q4, down from $5.18 in the same period last year. Adjusted net income per diluted share also fell to $4.21 from $5.52. For the full year, net income per diluted share was $17.27, a decrease from the previous year's $20.30, while adjusted net income per diluted share dropped to $19.40 from $21.55.
Net sales for Q4 decreased by 15.5% to $869.9 million, compared to $1,029.0 million in the prior-year period. The decline was primarily due to lower average selling prices and the economic value of solar tax credits transferred to certain customers. Gross profit decreased to $301.5 million in Q4, with gross margins falling from 40.3% to 34.7%. Adjusted EBITDA saw a 28.6% decrease to $232.0 million.
For the full fiscal year 2023, net sales decreased by 10.1% to $3,518.8 million, and gross profit fell by 18.3% to $1,339.5 million. Adjusted EBITDA for the year decreased by 22.3% to $1,042.1 million.
Segment Performance
The Electrical segment's net sales decreased by 18.3% to $649.8 million in Q4, while the Safety & Infrastructure segment saw a decrease of 5.8% to $220.2 million. Adjusted EBITDA for the Electrical segment decreased by 23.1% to $237.6 million, and the Safety & Infrastructure segment's Adjusted EBITDA fell by 58.4% to $15.1 million.
Liquidity and Capital Resources
Operating activities provided $807.6 million of cash during fiscal 2023, and free cash flow amounted to $588.7 million. Atkore Inc (ATKR, Financial) deployed significant capital towards acquisitions, share repurchases, and capital expenditures. The Board of Directors has approved a new quarterly dividend program, with the first distribution expected following the fiscal Q1 2024 earnings announcement.
Outlook for Fiscal Year 2024
Atkore Inc (ATKR, Financial) anticipates Adjusted EBITDA for the first quarter of fiscal 2024 to be in the range of $200 - $210 million and Adjusted net income per diluted share to be between $3.50 - $3.70. For the full year, the company expects Adjusted EBITDA to be between $900-$950 million and Adjusted net income per diluted share to range from $16.00 - $17.00, maintaining a goal of greater than $18.00 for fiscal year 2025.
Despite the challenges faced in fiscal 2023, Atkore Inc (ATKR, Financial) remains committed to its strategic initiatives and capital allocation discipline. The company's President and CEO, Bill Waltz, expressed confidence in the resilience of Atkore's business model and the value provided to customers. The introduction of a quarterly dividend program reflects the company's ongoing efforts to return value to shareholders.
For more detailed information on Atkore Inc (ATKR, Financial)'s financial results, please refer to the full 8-K filing.
Explore the complete 8-K earnings release (here) from Atkore Inc for further details.
