Atkore inc. announces second quarter 2022 results
Harvey, ill.--(business wire)--atkore inc. (the “company” or “atkore”) (nyse: atkr) announced earnings for its fiscal 2022 second quarter ended march 25, 2022. “atkore continued to build on its momentum in the second quarter, generating a significant increase in sales year-over-year and growing profitability,” said bill waltz, atkore president and chief executive officer. “both segments contributed to the strong second quarter results, with positive trends across multiple product categories in each segment partially offset by declines in certain steel related product categories in the u.s. our results in the first half of 2022 reflect our team’s dedication to serving our customers and the resilience of the atkore business system, which continues to successfully guide our operations through pricing volatility, labor shortages across the value chain and other macro factors.” waltz continued, “we enter the back half of the fiscal year with a stronger base from which to grow and the financial flexibility and expected cash flow generation to continue to deliver on our capital allocation priorities. we are on track to repurchase at least a cumulative total of $400 million in shares in fiscal 2022, while also continuing to prudently execute on our robust m&a pipeline. in addition, we are raising our fiscal year 2022 outlook for adjusted ebitda to $1.25 to $1.30 billion. we will continue to work diligently and efficiently to capitalize on our existing leadership positions, expand into key growth areas and serve our customers with an unwavering commitment to excellence.” 2022 second quarter results three months ended (in thousands) march 25, 2022 march 26, 2021 change % change net sales electrical $ 759,877 $ 487,500 $ 272,377 55.9 % safety & infrastructure 224,285 152,700 71,585 46.9 % eliminations (1,589 ) (657 ) (932 ) 141.9 % consolidated operations $ 982,573 $ 639,543 $ 343,030 53.6 % net income $ 233,477 $ 124,933 $ 108,544 86.9 % adjusted ebitda electrical $ 330,970 $ 188,826 $ 142,144 75.3 % safety & infrastructure 28,917 16,193 12,724 78.6 % unallocated (13,721 ) (11,654 ) (2,067 ) 17.7 % consolidated operations $ 346,166 $ 193,365 $ 152,801 79.0 % net sales increased by $343.0 million, or 53.6%, to $982.6 million for the three months ended march 25, 2022, compared to $639.5 million for the three months ended march 26, 2021. the increase in net sales is primarily attributed to increased average selling prices across the company’s products of $338.7 million which were mostly driven by the plastic pipe and conduit product category within the electrical segment and increased net sales of $14.6 million from companies acquired during fiscal 2021 and fiscal 2022. these increases are offset by decreased sales volume of $8.5 million across varying product categories within both the electrical and the safety & infrastructure segments. pricing for pvc products, as well as other parts of the business, is expected to return to more normal historical levels over time, but that time is uncertain. gross profit increased by $176.6 million, or 73.6%, to $416.4 million for the three months ended march 25, 2022, as compared to $239.8 million for the prior-year period. gross margin increased to 42.4% for the three months ended march 25, 2022, as compared to 37.5% for the prior-year period. gross profit increased primarily due to higher average selling prices of $338.7 million, partially offset by higher input costs of steel, copper and pvc resin of $151.5 million. net income increased by $108.5 million, or 86.9%, to $233.5 million for the three months ended march 25, 2022 compared to $124.9 million for the prior-year period primarily due to higher gross profit and lower interest expense, partially offset by higher selling, general and administrative costs, and income tax expense. adjusted ebitda increased by $152.8 million, or 79.0%, to $346.2 million for the three months ended march 25, 2022 compared to $193.4 million for the three months ended march 26, 2021. the increase was primarily due to higher gross profit. net income per diluted share prepared in accordance with accounting principles generally accepted in the united states of america (“gaap”) was $5.08 for the three months ended march 25, 2022, as compared to $2.58 in the prior-year period. adjusted net income per diluted share increased by $2.60 to $5.39 for the three months ended march 25, 2022, as compared to $2.79 in the prior year period. the increase in diluted earnings per share and adjusted net income per share is primarily attributed to higher net income. segment results electrical net sales increased by $272.4 million, or 55.9%, to $759.9 million for the three months ended march 25, 2022 compared to $487.5 million for the three months ended march 26, 2021. the increase in net sales is primarily attributed to increased average selling prices of $263.4 million which were mostly driven by the plastic pipe and conduit product category and increased net sales of $9.2 million from companies acquired during fiscal 2021 and fiscal 2022. pricing for pvc products, as well as other parts of the business, is expected to return to more normal historical levels over time, but that time is uncertain. adjusted ebitda for the three months ended march 25, 2022 increased by $142.1 million, or 75.3%, to $331.0 million from $188.8 million for the three months ended march 26, 2021. adjusted ebitda margins increased to 43.6% for the three months ended march 25, 2022 compared to 38.7% for the three months ended march 26, 2021. the increase in adjusted ebitda and adjusted ebitda margins was largely due to higher average selling prices over input costs. safety & infrastructure net sales increased by $71.6 million, or 46.9%, for the three months ended march 25, 2022 to $224.3 million compared to $152.7 million for the three months ended march 26, 2021. the increase is primarily attributed to increased average selling prices of $75.2 million driven by higher input costs of steel and increased net sales of $5.4 million from companies acquired during fiscal 2022 partially offset by lower volumes of $9.0 million primarily in the mechanical pipe product line. adjusted ebitda increased by $12.7 million, or 78.6%, to $28.9 million for the three months ended march 25, 2022 compared to $16.2 million for the three months ended march 26, 2021. adjusted ebitda margins increased to 12.9% for the three months ended march 25, 2022 compared to 10.6% for the three months ended march 26, 2021. the adjusted ebitda increase is primarily due to the price increases, partially offset by lower volume, discussed above. full-year outlook based on market trends and atkore’s continued execution, the company is increasing its outlook for adjusted ebitda and adjusted net income per diluted share for fiscal year 2022. the company continues to expect net sales to be up approximately 25 to 30 percent versus fiscal year 2021. the company expects adjusted ebitda to be in the range of $1,250 million to $1,3000 million, and adjusted net income per diluted share to be in the range of $19.65 - $20.45. in light of these trends and the current environment, the company is also providing its preliminary perspective on fiscal year 2023. the company estimates fiscal year 2023 adjusted ebitda to be approximately $800 million - $900 million. the company notes that this perspective may vary due to changes in assumptions or market conditions and other factors described under “forward-looking statements.” reconciliations of the forward-looking full-year 2022 outlook for adjusted ebitda and adjusted net income per diluted share, and preliminary perspective for full-year 2023 adjusted ebitda are not being provided as the company does not currently have sufficient data to accurately estimate the variables and individual adjustments for such reconciliations. conference call information atkore management will host a conference call today, may 3, 2022, at 8 a.m. eastern time, to discuss the company’s financial results. the conference call may be accessed by dialing (888) 330-2446 (domestic) or (240) 789-2732 (international). the call will be available for replay until may 23, 2022. the replay can be accessed by dialing (800) 770-2030 for domestic callers, or for international callers, (647) 362-9199. the passcode for the live call and the replay is 5592214. interested investors and other parties can also listen to a webcast of the live conference call by logging onto the investor relations section of the company’s website at https://investors.atkore.com. the online replay will be available on the same website immediately following the call. to learn more about the company, please visit the company’s website at https://investors.atkore.com. about atkore inc. atkore is forging a future where our employees, customers, suppliers, shareholders and communities are building better together – a future focused on serving the customer and powering and protecting the world. with a global network of manufacturing and distribution facilities worldwide, atkore is a leading provider of electrical, safety and infrastructure solutions. to learn more, please visit www.atkore.com. forward-looking statements this press release contains “forward-looking statements” within the meaning of the federal private securities litigation reform act of 1995. forward-looking statements include, but are not limited to, statements relating to financial outlook. some of the forward-looking statements can be identified by the use of forward-looking terms such as “believes,” “expects,” “may,” “will,” “shall,” “should,” “would,” “could,” “seeks,” “aims,” “projects,” “is optimistic,” “intends,” “plans,” “estimates,” “anticipates” or other comparable terms. forward-looking statements include, without limitation, all matters that are not historical facts. forward-looking statements are subject to known and unknown risks and uncertainties, many of which may be beyond our control. we caution you that forward-looking statements are not guarantees of future performance or outcomes and that actual performance and outcomes, including, without limitation, our actual results of operations, financial condition and liquidity, and the development of the market in which we operate, may differ materially from those made in or suggested by the forward-looking statements contained in this press release. in addition, even if our results of operations, financial condition and cash flows, and the development of the market in which we operate, are consistent with the forward-looking statements contained in this press release, those results or developments may not be indicative of results or developments in subsequent periods. a number of important factors, including, without limitation, the risks and uncertainties discussed or referenced under the caption “risk factors” in our annual report on form 10-k, filed with the u.s. securities and exchange commission (“sec”) on november 18, 2021 could cause actual results and outcomes to differ materially from those reflected in the forward-looking statements. additional factors that could cause actual results and outcomes to differ from those reflected in forward-looking statements include, without limitation: declines in, and uncertainty regarding, the general business and economic conditions in the united states and international markets in which we operate; weakness or another downturn in the united states non-residential construction industry; widespread outbreak of diseases, such as the novel coronavirus (“covid-19”) pandemic; changes in prices of raw materials; pricing pressure, reduced profitability, or loss of market share due to intense competition; availability and cost of third-party freight carriers and energy; high levels of imports of products similar to those manufactured by us; changes in federal, state, local and international governmental regulations and trade policies; adverse weather conditions; increased costs relating to future capital and operating expenditures to maintain compliance with environmental, health and safety laws; reduced spending by, deterioration in the financial condition of, or other adverse developments, including inability or unwillingness to pay our invoices on time, with respect to one or more of our top customers; increases in our working capital needs, which are substantial and fluctuate based on economic activity and the market prices for our main raw materials, including as a result of failure to collect, or delays in the collection of, cash from the sale of manufactured products; work stoppage or other interruptions of production at our facilities as a result of disputes under existing collective bargaining agreements with labor unions or in connection with negotiations of new collective bargaining agreements, as a result of supplier financial distress, or for other reasons; changes in our financial obligations relating to pension plans that we maintain in the united states; reduced production or distribution capacity due to interruptions in the operations of our facilities or those of our key suppliers; loss of a substantial number of our third-party agents or distributors or a dramatic deviation from the amount of sales they generate; security threats, attacks, or other disruptions to our information systems, or failure to comply with complex network security, data privacy and other legal obligations or the failure to protect sensitive information; possible impairment of goodwill or other long-lived assets as a result of future triggering events, such as declines in our cash flow projections or customer demand and changes in our business and valuation assumptions; safety and labor risks associated with the manufacture and in the testing of our products; product liability, construction defect and warranty claims and litigation relating to our various products, as well as government inquiries and investigations, and consumer, employment, tort and other legal proceedings; our ability to protect our intellectual property and other material proprietary rights; risks inherent in doing business internationally; changes in foreign laws and legal systems, including as a result of brexit; our inability to introduce new products effectively or implement our innovation strategies; our inability to continue importing raw materials, component parts and/or finished goods; the incurrence of liabilities and the issuance of additional debt or equity in connection with acquisitions, joint ventures or divestitures and the failure of indemnification provisions in our acquisition agreements to fully protect us from unexpected liabilities; failure to manage acquisitions successfully, including identifying, evaluating, and valuing acquisition targets and integrating acquired companies, businesses or assets; the incurrence of additional expenses, increases in the complexity of our supply chain and potential damage to our reputation with customers resulting from regulations related to “conflict minerals”; disruptions or impediments to the receipt of sufficient raw materials resulting from various anti-terrorism security measures; restrictions contained in our debt agreements; failure to generate cash sufficient to pay the principal of, interest on, or other amounts due on our debt; challenges attracting and retaining key personnel or high-quality employees; future changes to tax legislation; failure to generate sufficient cash flow from operations or to raise sufficient funds in the capital markets to satisfy existing obligations and support the development of our business; and other risks and factors described from time to time in documents that we file with the sec. the company assumes no obligation to update the information contained herein, which speaks only as of the date hereof. non-gaap financial information this press release includes certain financial information, not prepared in accordance with generally accepted accounting principles in the united states (“gaap”). because not all companies calculate non-gaap financial information identically (or at all), the presentations herein may not be comparable to other similarly titled measures used by other companies. further, these measures should not be considered substitutes for the performance measures derived in accordance with gaap. see non-gaap reconciliations below in this press release for a reconciliation of these measures to the most directly comparable gaap financial measures. adjusted ebitda and adjusted ebitda margin we use adjusted ebitda and adjusted ebitda margin in evaluating the performance of our business and in the preparation of our annual operating budgets as indicators of business performance and profitability. we believe adjusted ebitda and adjusted ebitda margin allow us to readily view operating trends, perform analytical comparisons and identify strategies to improve operating performance. we define adjusted ebitda as net income (loss) before income taxes, adjusted to exclude unallocated expenses, depreciation and amortization, interest expense, net, stock-based compensation, loss on extinguishment of debt, certain legal matters, and other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, gain on purchase of business, restructuring costs and transaction costs. we define adjusted ebitda margin as adjusted ebitda as a percentage of net sales. we believe adjusted ebitda and adjusted ebitda margin, when presented in conjunction with comparable gaap measures, are useful for investors because management uses adjusted ebitda and adjusted ebitda margin in evaluating the performance of our business. adjusted net income and adjusted net income per share we use adjusted net income and adjusted net income per share in evaluating the performance of our business and profitability. management believes that these measures provide useful information to investors by offering additional ways of viewing the company’s results that, when reconciled to the corresponding gaap measure provide an indication of performance and profitability excluding the impact of unusual and or non-cash items. we define adjusted net income as net income before stock-based compensation, loss on extinguishment of debt, intangible asset amortization, certain legal matters and other items, and the income tax expense or benefit on the foregoing adjustments that are subject to income tax. we define adjusted net income per share as basic and diluted net income per share excluding the per share impact of stock-based compensation, intangible asset amortization, certain legal matters and other items, and the income tax expense or benefit on the foregoing adjustments that are subject to income tax. leverage ratio - net debt/adjusted ebitda we define leverage ratio as the ratio of net debt (total debt less cash and cash equivalents) to adjusted ebitda on a trailing twelve-month (“ttm”) basis. we believe the leverage ratio is useful to investors as an alternative liquidity measure. free cash flow we define free cash flow as net cash provided by (used in) operating activities, less capital expenditures. we believe that free cash flow provides meaningful information regarding the company’s liquidity. atkore inc. condensed consolidated statements of operations (unaudited) three months ended six months ended (in thousands, except per share data) march 25, 2022 march 26, 2021 march 25, 2022 march 26, 2021 net sales $ 982,573 $ 639,543 $ 1,823,374 $ 1,150,625 cost of sales 566,157 399,694 1,052,150 721,585 gross profit 416,416 239,849 771,224 429,040 selling, general and administrative 88,918 67,340 167,069 128,418 intangible asset amortization 8,701 8,096 16,930 16,356 operating income 318,797 164,413 587,225 284,266 interest expense, net 7,514 8,416 14,432 16,670 other income, net (807 ) (7,240 ) (1,115 ) (7,671 ) income before income taxes 312,090 163,237 573,908 275,267 income tax expense 78,613 38,304 135,588 65,268 net income $ 233,477 $ 124,933 $ 438,320 $ 209,999 net income per share basic $ 5.14 $ 2.62 $ 9.51 $ 4.39 diluted $ 5.08 $ 2.58 $ 9.39 $ 4.33 atkore inc. condensed consolidated balance sheets (unaudited) (in thousands, except share and per share data) march 25, 2022 september 30, 2021 assets current assets: cash and cash equivalents $ 390,399 $ 576,289 accounts receivable, less allowance for current and expected credit losses of $3,503 and $2,510, respectively 623,361 524,926 inventories, net 411,356 285,989 prepaid expenses and other current assets 64,924 34,248 total current assets 1,490,040 1,421,452 property, plant and equipment, net 285,936 275,622 intangible assets, net 242,229 241,204 goodwill 212,167 199,048 right-of-use assets, net 37,757 41,113 deferred tax assets 33,970 29,693 other long-term assets 2,021 1,967 total assets $ 2,304,120 $ 2,210,099 liabilities and equity current liabilities: accounts payable 269,830 243,164 income tax payable 10,741 72,953 accrued compensation and employee benefits 37,061 57,437 customer liabilities 66,138 80,324 lease obligations 11,327 11,785 other current liabilities 63,179 59,273 total current liabilities 458,276 524,936 long-term debt 759,461 758,386 long-term lease obligations 27,392 30,236 deferred tax liabilities 18,566 16,746 pension liabilities 2,515 3,819 other long-term liabilities 14,636 11,240 total liabilities 1,280,846 1,345,363 equity: common stock, $0.01 par value, 1,000,000,000 shares authorized, 43,879,446 and 45,997,159 shares issued and outstanding, respectively 440 461 treasury stock, held at cost, 290,600 and 290,600 shares, respectively (2,580 ) (2,580 ) additional paid-in capital 492,070 506,921 retained earnings 565,832 388,660 accumulated other comprehensive loss (32,488 ) (28,726 ) total equity 1,023,274 864,736 total liabilities and equity $ 2,304,120 $ 2,210,099 atkore inc. condensed consolidated statements of cash flows (unaudited) six months ended (in thousands) march 25, 2022 march 26, 2021 operating activities: net income $ 438,320 $ 209,999 adjustments to reconcile net income to net cash provided by operating activities: depreciation and amortization 40,040 38,309 deferred income taxes (4,270 ) 4,692 stock-based compensation 9,555 10,390 amortization of right-of-use assets 6,489 7,025 other non-cash adjustments to net income 7,474 968 changes in operating assets and liabilities, net of effects from acquisitions accounts receivable (95,016 ) (124,261 ) inventories (127,790 ) (31,424 ) prepaid expenses and other current assets (14,490 ) 234 accounts payable 19,617 42,130 accrued and other liabilities (37,972 ) (2,502 ) income taxes (80,415 ) 429 other, net (383 ) (2,743 ) net cash provided by operating activities 161,159 153,246 investing activities: capital expenditures (25,343 ) (20,374 ) proceeds from sale of properties and equipment 642 3,117 acquisition of businesses, net of cash acquired (36,098 ) (43,699 ) other, net — 21 net cash used in investing activities (60,799 ) (60,935 ) financing activities: repayments of long-term debt — (40,000 ) issuance of common stock, net of shares withheld for tax (24,399 ) (356 ) repurchase of common stock (261,173 ) (35,037 ) other, net — (11 ) net cash used for financing activities (285,572 ) (75,404 ) effects of foreign exchange rate changes on cash and cash equivalents (678 ) 3,091 decrease in cash and cash equivalents (185,890 ) 19,998 cash and cash equivalents at beginning of period 576,289 284,471 cash and cash equivalents at end of period $ 390,399 $ 304,469 six months ended (in thousands) march 25, 2022 march 26, 2021 supplementary cash flow information capital expenditures, not yet paid $ 4,815 $ 1,023 operating lease right-of-use assets obtained in exchange for lease liabilities $ 1,148 $ 2,379 acquisitions of businesses, not yet paid $ 2,864 $ — free cash flow: net cash provided by operating activities $ 161,159 $ 153,246 capital expenditures (25,343 ) (20,374 ) free cash flow: $ 135,816 $ 132,872 atkore inc. adjusted ebitda the following table presents reconciliations of adjusted ebitda to net income for the periods presented: three months ended six months ended (in thousands) march 25, 2022 march 26, 2021 march 25, 2022 march 26, 2021 net income $ 233,477 $ 124,933 $ 438,320 $ 209,999 interest expense, net 7,514 8,416 14,432 16,670 income tax expense 78,613 38,304 135,588 65,268 depreciation and amortization 19,994 19,265 40,040 38,309 stock-based compensation 6,128 4,868 9,555 10,390 other (a) 440 (2,421 ) 1,241 (10,281 ) adjusted ebitda $ 346,166 $ 193,365 $ 639,176 $ 330,355 (a) represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, restructuring costs and transaction costs. atkore inc. segment information the following table presents reconciliations of net sales and calculations of adjusted ebitda margin by segment for the periods presented: three months ended march 25, 2022 march 26, 2021 (in thousands) net sales adjusted ebitda adjusted ebitda margin net sales adjusted ebitda adjusted ebitda margin electrical $ 759,877 $ 330,970 43.6 % $ 487,500 $ 188,826 38.7 % safety & infrastructure 224,285 28,917 12.9 % 152,700 16,193 10.6 % eliminations (1,589 ) (657 ) consolidated operations $ 982,573 $ 639,543 six months ended march 25, 2022 march 26, 2021 (in thousands) net sales adjusted ebitda adjusted ebitda margin net sales adjusted ebitda adjusted ebitda margin electrical $ 1,401,560 $ 610,517 43.6 % $ 874,645 $ 322,099 36.8 % safety & infrastructure 424,795 56,349 13.3 % 277,465 30,445 11.0 % eliminations (2,981 ) (1,485 ) consolidated operations $ 1,823,374 $ 1,150,625 atkore inc. adjusted net income per share the following table presents reconciliations of adjusted net income to net income for the periods presented: three months ended six months ended (in thousands, except per share data) march 25, 2022 march 26, 2021 march 25, 2022 march 26, 2021 net income $ 233,477 $ 124,933 $ 438,320 $ 209,999 stock-based compensation 6,128 4,868 9,555 10,390 intangible asset amortization 8,701 8,096 16,930 16,356 other (a) (494 ) (2,855 ) (921 ) (10,997 ) pre-tax adjustments to net income 14,335 10,109 25,564 15,749 tax effect (3,584 ) (2,527 ) (6,391 ) (3,937 ) adjusted net income $ 244,228 $ 132,515 $ 457,493 $ 221,811 diluted weighted average common shares outstanding 45,280 47,547 45,906 47,586 net income per diluted share $ 5.08 $ 2.58 $ 9.39 $ 4.33 adjusted net income per diluted share $ 5.39 $ 2.79 $ 9.97 $ 4.66 (a) represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions and realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives. atkore inc. leverage ratio the following table presents reconciliations of net debt to total debt for the periods presented: ($ in thousands) march 25, 2022 december 24, 2021 september 30, 2021 june 25, 2021 march 26, 2021 december 25, 2020 short-term debt and current maturities of long-term debt $ — $ — $ — $ 4,000 $ — $ — long-term debt 759,461 758,924 758,386 780,489 765,049 764,379 total debt 759,461 758,924 758,386 784,489 765,049 764,379 less cash and cash equivalents 390,399 498,959 576,289 397,142 304,469 280,420 net debt $ 369,062 $ 259,965 $ 182,097 $ 387,347 $ 460,580 $ 483,959 ttm adjusted ebitda (a) $ 1,206,371 $ 1,053,570 $ 897,547 $ 702,815 $ 492,274 $ 385,915 total debt/ttm adjusted ebitda 0.6 x 0.7 x 0.8 x 1.1 x 1.6 x 2.0 x net debt/ttm adjusted ebitda 0.3 x 0.2 x 0.2 x 0.6 x 0.9 x 1.3 x (a) ttm adjusted ebitda is equal to the sum of adjusted ebitda for the trailing four quarter period. the reconciliation of adjusted ebitda for the quarter ended december 24, 2021 can be found in exhibit 99.1 to form 8-k filed january 31, 2022 and is incorporated by reference herein. the reconciliation of adjusted ebitda for the quarter ended june 25, 2021 can be found in exhibit 99.1 to form 8-k filed august 3, 2021 and is incorporated by reference herein. the reconciliation of adjusted ebitda for the quarter ended march 26, 2021 can be found in exhibit 99.1 to form 8-k filed april 29, 2021 and is incorporated by reference herein. the reconciliation of adjusted ebitda for the quarter ended december 25, 2020 can be found in exhibit 99.1 to form 8-k filed february 2, 2021 and is incorporated by reference herein. the reconciliation of adjusted ebitda for the year ended september 30, 2021 and september 30, 2020 can be found in exhibit 99.1 to form 8-k filed november 18, 2021 and is incorporated by reference herein. atkore inc. trailing twelve months adjusted ebitda the following table presents a reconciliation of adjusted ebitda for the trailing twelve months (ttm) ended march 25, 2022: ttm three months ended (in thousands) march 25, 2022 march 25, 2022 december 24, 2021 september 30, 2021 june 25, 2021 net income $ 816,178 $ 233,477 $ 204,843 $ 202,561 $ 175,297 interest expense, net 30,661 7,514 6,918 8,139 8,090 income tax expense 262,464 78,613 56,975 65,222 61,654 depreciation and amortization 80,288 19,994 20,046 20,082 20,166 stock-based compensation 16,212 6,128 3,427 2,889 3,768 loss on the extinguishment of debt 4,202 — — — 4,202 other(a) (3,634 ) 440 801 (5,962 ) 1,087 adjusted ebitda $ 1,206,371 $ 346,166 $ 293,010 $ 292,931 $ 274,264 (a) represents other items, such as inventory reserves and adjustments, loss on disposal of property, plant and equipment, insurance recovery related to damages of property, plant and equipment, release of indemnified uncertain tax positions, gain on purchase of business, realized or unrealized gain (loss) on foreign currency impacts of intercompany loans and related forward currency derivatives, restructuring costs and transaction costs.
