SAN DIEGO, Feb. 25, 2025 /PRNewswire/ -- The law firm of Robbins Geller Rudman & Dowd LLP announces that the Atkore class action lawsuit – captioned Westchester Putnam Counties Heavy & Highway Laborers Local 60 Benefits Fund v. Atkore Inc., No. 25-cv-01851 (N.D. Ill.) – seeks to represent purchasers of Atkore Inc. (NYSE: ATKR) common stock and charges Atkore and certain of Atkore's top current and former executives with violations of the Securities Exchange Act of 1934.If you suffered substantial losses and ...

Core Insights - Atkore Inc. (NYSE: ATKR) has strong attributes including high returns on capital, benefits from increasing electrification, and a robust buyback policy [1] Company Analysis - The company operates in sectors such as pharma, medical devices, textiles, food industry, and real estate, indicating a diversified business model [1] - Atkore is focused on identifying high-quality companies with competitive advantages that can exponentially compound cash flow while trading at fair prices [1] - The investment strategy emphasizes long-term growth in companies capable of deploying capital at high returns on invested capital (ROIC) for several years [1] Market Dynamics - The increasing trend of electrification serves as a tailwind for Atkore, suggesting potential growth opportunities in the market [1] - The company aims to provide deep analysis on business models, market dynamics, competition, financials, and management to enhance understanding of investment opportunities [1]

Core Viewpoint - A class action lawsuit has been filed against Atkore Inc. for allegedly misleading investors regarding its anticompetitive conduct, specifically related to a price-fixing scheme that inflated PVC pipe prices [1][2]. Group 1: Allegations - Atkore is accused of engaging in a price-fixing scheme that artificially inflated the price of PVC pipes [2]. - The company reportedly gained significant and unsustainable financial benefits from this anticompetitive behavior [2]. - As the price-fixing scheme was revealed, Atkore and its co-conspirators could no longer maintain inflated prices, leading to a substantial decrease in PVC pipe prices, which negatively impacted Atkore's business operations [2]. Group 2: Financial Impact - On February 4, 2025, Atkore announced its Q1 fiscal year 2025 financial results, reporting net sales of $661.6 million, which fell short of analysts' expectations of $680.7 million [3]. - The company also significantly lowered its adjusted earnings per share (EPS) and adjusted EBITDA guidance for the remainder of fiscal year 2025, missing analysts' estimates [3]. Group 3: Stock Market Reaction - Following the announcement of disappointing financial results, Atkore's stock price dropped by $15.59 per share, nearly 20%, from a closing price of $79.72 on February 3, 2025, to $64.13 on February 4, 2025 [4].

Core Viewpoint - The Atkore class action lawsuit alleges that Atkore Inc. and certain executives violated the Securities Exchange Act of 1934, involving claims of anticompetitive practices and misleading financial disclosures [1][4]. Group 1: Allegations and Financial Impact - The lawsuit claims Atkore engaged in a price-fixing scheme that artificially inflated PVC pipe prices, leading to unsustainable financial benefits [4]. - Following the exposure of the price-fixing scheme, Atkore's ability to maintain inflated prices diminished, resulting in a significant drop in PVC pipe prices and negatively impacting its business operations [4]. - On February 4, 2025, Atkore reported Q1 fiscal year 2025 net sales of $661.6 million, a 17% decrease year-over-year, and below analyst expectations of $680.7 million [5]. - Atkore revised its fiscal year 2025 guidance, projecting adjusted EPS of $5.75 to $6.85 and adjusted EBITDA of $375 million to $425 million, significantly lower than previous guidance of $7.80 to $8.90 and $475 million to $525 million [5]. - Following the financial announcement, Atkore's stock price fell nearly 20% [5]. Group 2: Legal Process and Representation - The Private Securities Litigation Reform Act of 1995 allows any investor who purchased Atkore common stock during the class period to seek appointment as lead plaintiff in the lawsuit [6]. - The lead plaintiff is typically the investor with the greatest financial interest in the case and acts on behalf of all class members [6]. - Investors can choose their own law firm to represent them in the class action lawsuit, and participation as lead plaintiff does not affect the ability to share in any potential recovery [6]. Group 3: About Robbins Geller - Robbins Geller Rudman & Dowd LLP is a leading law firm specializing in securities fraud cases, having secured the most monetary relief for investors in six out of the last ten years [7]. - The firm has recovered $6.6 billion for investors in securities-related class action cases, significantly more than any other law firm in the past four years [7]. - Robbins Geller is one of the largest plaintiffs' firms globally, with a history of obtaining substantial securities class action recoveries [7].

First Quarter 2025 Earnings Presentation and Business Update February 4, 2025 Cautionary Statements This presentation is provided for general informational purposes only and it does not include every item which may be of interest, nor does it purport to present full and fair disclosure with respect to Atkore Inc. (the "Company" or "Atkore") or its operational and financial information. Atkore expressly disclaims any current intention to update any forward-looking statements contained in this presentation as ...

Core Viewpoint - Atkore Inc. reported quarterly earnings of $1.63 per share, exceeding the Zacks Consensus Estimate of $1.50 per share, but down from $4.12 per share a year ago, indicating a significant year-over-year decline in earnings [1][2] Financial Performance - The company posted revenues of $661.6 million for the quarter ended December 2024, missing the Zacks Consensus Estimate by 2.52% and down from $798.48 million year-over-year [2] - Over the last four quarters, Atkore has surpassed consensus EPS estimates two times and topped consensus revenue estimates only once [2] Stock Performance - Atkore shares have declined approximately 4.5% since the beginning of the year, contrasting with the S&P 500's gain of 1.9% [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it is expected to perform in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $2.04 on revenues of $744 million, and for the current fiscal year, it is $8.30 on revenues of $2.98 billion [7] - The trend of estimate revisions for Atkore is mixed, which could change following the recent earnings report [6] Industry Context - The Wire and Cable Products industry, to which Atkore belongs, is currently ranked in the top 11% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Atkore's stock performance [5]

Financial Performance - Net sales decreased by $136.9 million or 17.1% to $661.6 million for the three months ended December 27, 2024, compared to $798.5 million for the same period in 2023[91] - Gross profit fell by $119.5 million or 41.1% to $171.1 million for the three months ended December 27, 2024, compared to $290.5 million for the same period in 2023[91] - Operating income decreased by $107.5 million or 61.3% to $67.9 million for the three months ended December 27, 2024, compared to $175.5 million for the same period in 2023[91] - Adjusted EBITDA for the Electrical segment decreased by $112.0 million or 54.8% to $92.4 million for the three months ended December 27, 2024, compared to $204.4 million for the same period in 2023[105] - Adjusted EBITDA margin for the Electrical segment decreased to 19.9% for the three months ended December 27, 2024, compared to 34.4% for the same period in 2023[105] - The Safety & Infrastructure segment's net sales decreased by $8.4 million or 4.1% to $196.7 million for the three months ended December 27, 2024, compared to $205.1 million for the same period in 2023[107] Cash Flow and Liquidity - Cash and cash equivalents were $310.4 million as of December 27, 2024, with $96.3 million held at non-U.S. subsidiaries[109] - Cash flows provided by operating activities were $74.4 million for the three months ended December 27, 2024, compared to $158.1 million for the same period in 2023[119] - Operating activities generated $74.4 million in cash during Q4 2024, a decrease of $83.7 million compared to $158.1 million in Q4 2023, primarily due to a $109.1 million drop in operating income[120] - Investing activities utilized $41.1 million in Q4 2024, down from $50.3 million in Q4 2023, with a $3.0 million reduction in capital expenditures contributing to the decrease[121] - Financing activities accounted for $67.7 million in cash used in Q4 2024, a reduction of $50.5 million from $118.2 million in Q4 2023, mainly due to $46.4 million less spent on stock repurchases[122] - The company has access to an ABL Credit Facility with an estimated borrowing base of $325.0 million, with no outstanding borrowings as of December 27, 2024[110] Tax and Accounting - Income tax expense decreased by $17.0 million or 58.1% to $12.3 million for the three months ended December 27, 2024, compared to $29.3 million for the same period in 2023[91] - There have been no material changes in critical accounting policies and estimates since the last Annual Report[123] - The company has not made any material changes to market risk disclosures since the last Annual Report[130] Strategic Outlook and Risks - The company issued forward-looking statements regarding financial position and growth strategies, emphasizing that actual results may differ significantly from these expectations[125] - Risks include economic conditions, competition, and regulatory changes that could impact future performance[127] - The company remains cautious about future performance due to various known and unknown risks[126] - No additional acquisition activities occurred during Q4 2024, indicating a focus on integration and operational efficiency[121]

Financial Performance - Net sales decreased by $136.9 million, or 17.1%, to $661.6 million for the three months ended December 27, 2024, compared to $798.5 million for the same period last year[6]. - Net income decreased by $92.0 million, or 66.5%, to $46.3 million for the three months ended December 27, 2024, compared to $138.4 million for the prior-year period[8]. - Adjusted EBITDA decreased by $114.4 million, or 53.6%, to $99.2 million for the three months ended December 27, 2024, compared to $213.5 million for the same period last year[9]. - Adjusted net income per diluted share decreased by $2.49 to $1.63 for the three months ended December 27, 2024, compared to $4.12 in the prior year[10]. - Gross profit decreased by $119.5 million, or 41.1%, to $171.1 million for the three months ended December 27, 2024, compared to $290.5 million for the prior-year period[7]. - Free cash flow for the three months ended December 27, 2024, was $33,079, compared to $113,775 for the same period in 2023, representing a decrease of 70.0%[37]. - Adjusted net income for the three months ended December 27, 2024, was $57,102, a decline of 63.3% from $155,507 in the same period of 2023[46]. Sales and Segment Performance - The decrease in net sales is primarily attributed to decreased average selling prices of $96.2 million and decreased sales volume of $43.8 million[6]. - Electrical segment net sales decreased by $128.3 million, or 21.6%, to $465.4 million for the three months ended December 27, 2024[11]. - Safety & Infrastructure segment net sales decreased by $8.4 million, or 4.1%, to $196.7 million for the three months ended December 27, 2024[13]. Outlook and Adjustments - The full-year Adjusted EBITDA outlook is adjusted to $375 million to $425 million, and Adjusted net income per diluted share outlook is adjusted to $5.75 to $6.85[5]. Assets and Liabilities - Total assets as of December 27, 2024, were $2,961,745, a decrease from $3,021,403 as of September 30, 2024[35]. - The company’s total liabilities decreased to $1,454,397 as of December 27, 2024, from $1,481,503 as of September 30, 2024[35]. - Cash and cash equivalents at the end of the period were $310,444, down from $380,922 at the end of the same period in 2023[36]. - Total debt as of December 27, 2024, is $765,375,000, with net debt at $454,931,000 after accounting for cash and cash equivalents of $310,444,000[49]. Trailing Twelve Months (TTM) Metrics - Trailing twelve months (TTM) Adjusted EBITDA for the period ended December 27, 2024, is $657,338,000, showing a decrease from $771,713,000 in the previous quarter[52]. - Net income for the TTM ended December 27, 2024, is reported at $380,827,000, with quarterly net income of $46,336,000 for the three months ended September 30, 2024[52]. - Interest expense for the TTM is $36,000,000, with a quarterly expense of $8,209,000 for the three months ended September 30, 2024[52]. - Income tax expense for the TTM is $97,353,000, with a quarterly expense of $12,260,000 for the three months ended September 30, 2024[52]. - Depreciation and amortization for the TTM is $121,330,000, with a quarterly amount of $29,333,000 for the three months ended September 30, 2024[52]. - Stock-based compensation for the TTM is $21,640,000, with a quarterly expense of $6,097,000 for the three months ended September 30, 2024[52]. - Adjusted EBITDA for the three months ended September 30, 2024, is $99,150,000, down from $140,150,000 in the previous quarter[52]. - Cash and cash equivalents decreased from $368,050,000 in March 2024 to $310,444,000 in December 2024[49]. - The company has shown a consistent trend in net debt reduction, decreasing from $460,643,000 in June 2024 to $454,931,000 in December 2024[49]. Sustainability Efforts - The company published its 2024 Sustainability Report, highlighting progress towards its 2025 ESG goals, including developing Environmental Product Declarations for core product offerings covering approximately half of Atkore's global sales[3].

Company Overview - Atkore Inc is a leading global manufacturer of electrical and infrastructure products, including cables, electrical conduits, infrastructure products, and safety and security products [1] - Nearly 90% of the company's business is focused on the US market [1] Analyst Background - The analyst has over 10 years of trading experience and has been developing as a stock analyst for the last five years [2] - The analyst specializes in value investing, focusing on companies with sustained free cash flows, low leverage, sustainable debt, and high recovery potential [2] - The analyst prefers to analyze companies and sectors that are not widely covered by the market, such as oil & gas, metals, mining, and companies operating outside the United States [2] - The analyst is particularly interested in companies in emerging markets that show high margins and present good investment opportunities in the medium and long term [2] - The analyst values companies with a solid pro-shareholder attitude, including those with sustained buyback programs or dividend distributions [2] - The analyst holds a financial master's degree with a specialization in company valuation and an economic degree [2]

Core Viewpoint - Robbins LLP is investigating Atkore, Inc. for potential violations of securities laws and breaches of fiduciary duties by certain officers and directors [1] Company Overview - Atkore, Inc. manufactures and sells electrical, safety, and infrastructure products both in the United States and internationally [1] Legal Context - Shareholders who have lost money in their investment in Atkore, Inc. are encouraged to contact Robbins LLP for information regarding their rights [2] - Robbins LLP operates on a contingency fee basis, meaning shareholders incur no fees or expenses unless a recovery is made [3] Firm Background - Robbins LLP has been a leader in shareholder rights litigation since 2002, having recovered over $1 billion for shareholders [4]