Luxfer Holdings PLC (NYSE:LXFR) Q2 2022 Earnings Conference Call July 27, 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

Chip Moore – EF Hutton

Operator

Good morning. My name is Katie and I will be your conference operator today. Welcome to the Luxfer Second 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 conference 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 second 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 second 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 Statements on Slide 2 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. Following Steve remarks, Andy will provide additional details about Luxfer’s growth outlook before Q&A. Andy, please go ahead.

Andy Butcher

Thank you Mike and welcome everyone. Please turn to Slide 3. I'm pleased to share with you details of our second quarter performance which resulted in sequentially improved revenues and profits. I want to start today by expressing my thanks to the entire Luxfer team who once again worked through a challenging supply chain backdrop to deliver for our customers. Our team's focus and dedication helps build on the momentum seen in our Q1 results. On this slide I want to highlight three key messages.

Firstly, regarding our financial performance we delivered more than 10% year-over-year sales growth in the second quarter continuing the double digit percentage gains also realized in Q1. Our Q2 top line expansion was driven by our ongoing success in passing through cost inflation as well as increased volumes. Our Q2 adjusted diluted earnings per share of $0.36 certainly voted up progress towards our previously outlined guidance for the full year. Our Elektron segment led our overall performance with increased profits and sales strength notable in many areas. We were also encouraged by gas cylinder’s sequential improvements in sales and profitability as well as the order inflow for alternative fuel systems. Our capital position remains solid with a net debt to EBITDA ratio of 1.2 times helped by a return to free cash flow generation.