Q2 2024 Crane NXT Co Earnings Call Transcript
Key Points
- Sales increased by 5% year-over-year, reaching $371 million, driven by the acquisition of Offset.
- Crane Currency ended the quarter with a record high backlog, leading to an increase in full-year core sales growth guidance for currency to 3% to 5%.
- CPI reported year-over-year core sales growth for the first time in four quarters, with inventories in the gaming vertical normalizing.
- The company has a strong M&A pipeline with a net debt to EBITDA ratio of approximately 1.8 times, providing ample capacity for future acquisitions.
- The integration of Offset is progressing well, with positive customer responses and a clear path to achieving identified synergies.
- Adjusted segment operating margin was diluted due to the Offset acquisition and an unfavorable product mix year-over-year.
- Adjusted free cash flow was impacted by higher capital expenditures related to investments in the US banknote redesign program.
- The gaming vertical experienced a backlog burn-down, with expectations for continued softness in the OEM channel.
- Security and authentication technologies faced lower international volumes due to the timing of shipments.
- The company is undergoing equipment upgrades for US paper-making, which will continue into the first quarter of 2025, potentially impacting production schedules.
Good day, and welcome to the Crane company second quarter 2024 earnings call. (Operator Instructions) Please be advised that today's conference is being recorded on and again, the conference over to to your speaker today, Christina Cristiano, Chief Financial Officer. Please go ahead.
Thank you, operator, and good morning, everyone. I want to welcome you all to the second quarter 2024 earnings call for Crane NXT.
Before we begin the slides, we will reference during this presentation can be accessed via the Investor Relations section of our website at cranenxt.com. A replay of today's call will also be available on our website.
Before we discuss our results, I encourage all listeners to review the legal notice on slide 2, which explains the risks of forward-looking statements and the use of non-GAAP financial measures. Additionally, we refer you to the cautionary language at the bottom of our earnings release and in our Form 10-K and 10-Q filings pertaining to
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