Luxfer Holdings PLC (NYSE:LXFR)

Q3 2022 Earnings Conference Call

October 26, 2022 8:30 AM ET

Company Participants

Michael Gaiden - VP, IR and Business Development

Andy Butcher - CEO

Steve Webster - CFO

Conference Call Participants

Chris Moore - CJS Securities

Phil Gibbs - KeyBanc Capital Markets

Chip Moore - EF Hutton

Presentation

Operator

Good morning, my name is Katie and I'll be your conference operator today. Welcome to the Luxfer's Third Quarter 2022 Earnings Conference Call. All lines have been placed on mute. After the speakers' prepared remarks, we will hold a question-and-answer session.

Now, I will turn the call over to Mike Gaiden, Vice-President of Investor Relations and Business Development for Luxfer. Mike, please go ahead.

Michael Gaiden

Thank you, Katie. Welcome everyone to Luxfer’s third quarter 2022 earnings call. With me today is Andy Butcher, Luxfer’s Chief Executive Officer; and Steve Webster Luxfer’s, Chief Financial Officer. On today's call we will provide details of our third quarter and year-to-date 2022 performance as detailed in the press release issued yesterday. Today's webcast is accompanied by a presentation that can be accessed at luxfer.com.

Please note, any references 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 two of today's presentation for further details.

Now, I will turn the call over to Andy for his summary comments on the quarter, after which Steve will provide details of our financial results. Andy will then provide some concluding remarks before Q&A. Andy, please go ahead.

Andy Butcher

Thank you, Mike, and welcome everyone. Please turn to slide three. I'm pleased to share with you details of our third quarter performance, which includes year-over-year growth in both revenues and profits. I want to start though by expressing my appreciation to the entire Luxfer team who once again took on a challenging supply-chain environment to serve our customers. Our team's ongoing focus and dedication has helped to sustain the momentum of our first-half results.

On this slide I want to highlight three key messages. Firstly, regarding our quarter three financial performance we delivered nearly 10% year-over-year sales growth, continuing the gains realized in both quarters one and two. This quarter three revenue growth was primarily driven by our ongoing success in passing through cost inflation, which more than offset foreign-exchange headwinds. Our Q3 adjusted diluted earnings per share of $0.35 continued our progress towards achievement of our existing full-year guidance. Elektron again led our performance, driven by successful execution in a wide variety of end markets. Gas Cylinders continues to work through inflation related challenges, passing through current cost increases wherever allowed by contract. Our capital position remains a source of strength with a net debt to EBITDA ratio of 1.2 times.