Luxfer Holdings PLC (NYSE:LXFR) Q3 2023 Earnings Conference Call October 26, 2023 8:30 AM ET

Company Participants

Kevin Grant – Vice President-Investor Relations and Business Development

Andy Butcher – Chief Executive Officer

Steve Webster – Chief Financial Officer

Conference Call Participants

Steve Ferazani – Sidoti

Operator

Good morning. My name is Angela, and I will be your conference coordinator today. Welcome to the Luxfer’s Third Quarter 2023 Earnings Conference Call. All lines have been placed on mute. [Operator Instructions]

Now, I will turn the call over to Kevin Grant, Vice President of Investor Relations and Business Development at Luxfer. Kevin, please go ahead.

Kevin Grant

Thank you, Angela, and good morning everyone. Welcome to Luxfer’s third quarter 2023 earnings conference call. This morning we’ll be reviewing Luxfer’s financial results for the third quarter ended October 1, 2023. I’m pleased to be joined today by Andy Butcher, our Chief Executive Officer; and Steve Webster, Chief Financial Officer.

Today’s webcast is accompanied by a presentation that can be accessed at luxfer.com. Please note, any reference to non-GAAP financials are reconciled in the appendix of the presentation.

Before we begin, a friendly reminder that any forward-looking statements made about the company’s expected financial results are subject to future risks and uncertainties. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise. Please refer to the Safe Harbor statement on Slide 2 of today’s presentation for further details.

Now, let me introduce Luxfer’s CEO, Andy Butcher. Please turn to Slide 3. Andy, please go ahead.

Andy Butcher

Thank you, Kevin, and welcome to the Luxfer team. Good morning, everyone. Thank you for joining us. We have a lot to cover on today’s call. First, I’ll provide a high-level overview of our third quarter financial performance.

On October 11, we announced preliminary Q3 results and the shortfall against full year guidance. I will review what drove that shortfall and the ongoing and accelerated initiatives we are executing to address the business conditions we are facing today.

Steve will then discuss the quarter in more detail and provide our outlook for the fourth quarter. I’ll end by providing color on the accelerated and expanded strategic review we are undertaking, which we referenced in yesterday’s release.

For the third quarter, we reported sales of $97.4 million and adjusted diluted earnings per share of $0.04, in line with the preliminary results we announced. We noted that specific areas of our business are facing continued challenges with either supply chain issues or weakening demand, which we have shared on our second quarter earnings call in late July. While we lowered our full year 2023 guidance to reflect these challenges, it was not enough. The headwinds persisted and grew during the quarter, resulting in a disappointing Q3 results.