8/8/2023

speaker
John
Conference Call Operator

Thank you. And good morning, everyone.

speaker
Unidentified IR Representative
Investor Relations Host

I'm joined today by Bill Waltz, President and CEO, as well as David Johnson, Chief Financial Officer. We will take your questions after comments by Bill and David. I would like to remind everyone that during this call, we may make projections or forward-looking statements regarding future events or financial performance of the company. Such statements involve risks and uncertainties such that actual results may differ materially. Please refer to our SEC filings in today's press release which identify important factors that could cause actual results to differ materially from those contained in our projections or forward-looking statements. In addition, any reference in our discussion today to EBITDA means adjusted EBITDA, and any reference to EPS or adjusted EPS means adjusted diluted earnings per share. Adjusted EBITDA and adjusted diluted earnings per share are non-GAAP measures. Reconciliations of non-GAAP measures and a presentation of the most comparable GAAP measures are available in the appendix to today's presentation. With that, I'll turn it over to Bill.

speaker
Bill Waltz
President and CEO

Thanks, John, and good morning, everyone. Before we discuss the quarter, I want to briefly address an incident that occurred at one of our HDPE pipe facilities. On Sunday, there was a fire in the exterior yard of our United Poly Systems facility in Albuquerque, New Mexico, where finished goods are stored. The health and safety of our employees and the local community is always our primary concern. I want to publicly thank the incredible efforts of our local fire officials and our Accor team on the ground. The fire has been contained. and no one was injured. In terms of stakeholder impact at this time, we do not expect this incident to impact our 2023 financial outlook. With seven HDPE facilities nationwide, we are confident in our ability to meet the majority of our customer orders and redirect production as needed. Now, starting on slide three and our results for the third quarter. we delivered better than expected earnings performance in Q3. Volume in the quarter was up 2%, which is in line with our expectation for mid-single-digit volume growth for the full year, as we anticipate volumes will ramp up higher in Q4. Our quarterly results compare to the all-time record highs of the last year and reflect the pricing normalization we planned for and have seen in 2023. Year-to-date cash flow remains very strong, enabling us to execute our capital deployment strategy. During the third quarter, we repurchased $147 million in shares, bringing our year-to-date total share repurchases to $416 million. In June, we determined that we needed to change our accounting treatment of seller credits related to the Inflation Reduction Act and David will cover details of the impact. We are encouraged by the performance in the first three quarters of fiscal year and have increased our full year outlook for adjusted EPS. The results released today reflect not only the strength and stability of our underlying business model, but the determination of our team to execute and deliver on our strategic growth initiatives. When I take a step back and compare our results from this quarter versus those of several years ago, we have structurally improved this business, and we are demonstrating the sustainability of our earnings into the future. With that, I'll turn the call over to David.

Disclaimer

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Investor presentation