FULL YEAR 2022 OUTLOOK Financial Discussion
CAPITAL ALLOCATION
Robust Free Cash Flow and low leverage provide flexibility for continued M&A and increased return of capital
Return of Capital:
☐
➤ Dividend => ~15% CAGR since initiation in 2010; visibility on continued growth
Opportunistic approach to stock repurchases => could become greater portion of
capital deployment depending on pace of M&A
Leverage of 2.5 times net debt to EBITDA*
~
M&A: market-driven strategy with cash returns focus
Normalized Capital
Deployment **
Return of Capital
37%
➤ Recent period of outsized activity driving outsized acquisitions outlays
Capex
38%
2006-2010:
$2.1B Deployed
2011 - 2015:
$3.9B Deployed
2016-2021:
$13.7B Deployed
Capex
28%
Capex
25%
Capex
24%
Return of
M&A
25%
➤ Acquisitions of ~$125-$150mm
annualized revenue expected in
average year
➤ Expected higher value creation
per capital dollar deployed in
more normalized environment
M&A
Return of Capital
M&A
Capital
M&A
Return of Capital
51%
21%
63%
12%
65%
11%
*Compliance debt, net of cash, divided by compliance EBITDA.
**Potential normalized capital deployment based on typical expected
level of acquisition activity.
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