- Net sales of $323.5 million,
an increase of 32 percent compared with the fourth quarter of
2022
- Net income of $14.4 million
with adjusted EBITDA(1) of $36.0
million
- Operating cash flow of $9.8
million with ending cash and cash equivalents of
$227.4 million
- Deployed $28.1 million of cash
to repurchase common shares and convertible notes
CANTON,
Ohio, May 4, 2023 /PRNewswire/ -- TimkenSteel
(NYSE: TMST), a leader in high-quality specialty steel,
manufactured components and supply chain solutions, today reported
first-quarter 2023 net sales of $323.5
million and net income of $14.4
million, or $0.30 per diluted
share. On an adjusted basis(1), the first-quarter 2023
net income was $20.8 million, or
$0.44 per diluted share, and adjusted
EBITDA was $36.0 million.
This compares with the sequential fourth-quarter 2022 net sales
of $245.4 million and a net loss of
$33.2 million, or a loss of
$0.75 per diluted share. On an
adjusted basis(1), the fourth-quarter 2022 net loss was
$4.6 million, or a loss of
$0.10 per diluted share, and adjusted
EBITDA was $11.9 million.
In the same quarter last year, net sales were $352.0 million with net income of $37.1 million, or $0.70 per diluted share. On an adjusted
basis(1), first-quarter 2022 net income was $48.6 million, or $0.92 per diluted share, and adjusted EBITDA was
$65.3 million.
"Our relentless focus on enhancing productivity and prioritizing
safety in our melt shop operations contributed to strong progress
in the first quarter of 2023. We expect this momentum to continue
into the second quarter. Thanks to this unwavering commitment, we
achieved a 35% increase in shipments which, coupled with strong
base pricing, drove improved profitability compared with the
previous quarter. These results are a clear indication that safety,
operational stability and customer focus will be key drivers of our
success moving forward," stated Mike
Williams, the president and chief executive officer.
"We are encouraged that end market demand and pricing conditions
remain favorable including the recent successful negotiation of
fiscal year mobile pricing agreements. The organization remains
focused on delivering our strategic imperatives which we anticipate
will drive sustainable profitability and shareholder value not only
for the present year but for years to come," concluded
Williams.
FIRST-QUARTER 2023 FINANCIAL SUMMARY
- Net sales of $323.5
million increased 32 percent compared with $245.4 million in the fourth quarter 2022. The
increase in net sales was primarily driven by higher shipments and
base sales(1) prices, as well as an increase in average
raw material surcharge revenue per ton as a result of higher scrap
and alloy prices, partially offset by unfavorable product mix.
Compared with the prior-year first quarter, the decrease in net
sales was driven primarily by lower shipments and a reduction in
surcharge revenue per ton as a result of lower scrap prices,
partially offset by higher base sales(1) prices.
- Ship tons of 172,900 increased 44,600 tons sequentially,
or 35 percent, driven by higher shipments across all end markets.
Customer demand was supported by improved operating performance and
a higher level of inventory available for shipment. Compared with
the prior-year first quarter, ship tons decreased 12 percent as a
result of lower industrial and mobile shipments, partially offset
by higher energy shipments.
- Manufacturing costs decreased by $26.6 million on a sequential basis, primarily
driven by higher cost absorption as melt utilization improved to 73
percent from 47 percent in the fourth quarter, and higher costs in
the fourth quarter due to planned annual maintenance shutdown.
Compared with the prior-year first quarter, manufacturing costs
increased $21.8 million, primarily
driven by lower cost absorption given the 73 percent melt
utilization rate compared with 81 percent in the same quarter last
year. Manufacturing costs were also higher compared with the
prior-year first quarter due to the inflationary cost environment
and increased maintenance costs.
- Other income included an insurance recovery of
$9.8 million in the first quarter of
2023, compared with a recovery of $33.0
million recognized in the fourth quarter of 2022, both
related to the recovery of certain costs associated with unplanned
downtime in the second half of 2022. Given that the first quarter
of 2023 insurance recovery related to last year, the $9.8 million insurance recovery has been excluded
from adjusted EBITDA.
(1)
Please see discussion of non-GAAP financial measures in this
news release.
|
CASH, LIQUIDITY AND REPURCHASE ACTIVITY
As of March 31, 2023, the
company's cash and cash equivalents balance was $227.4 million. In the first quarter, operating
cash flow was $9.8 million, primarily
driven by profitability and insurance recoveries partially offset
by higher working capital. Total liquidity(2) was
$530.7 million as of March 31, 2023.
In the first quarter, the company repurchased $7.5 million aggregate principal amount of its
convertible notes. As of March 31,
2023, the outstanding principal balance of convertible notes
was $13.3 million. As a result of the
first-quarter convertible note repurchases, diluted shares
outstanding will decrease by approximately 1.0 million shares in
the second quarter of 2023.
Additionally, during the first quarter, the company repurchased
approximately 514,000 common shares in the open market at an
aggregate cost of $9.4 million. As of
March 31, 2023, the company had
$63.7 million remaining on its
existing share repurchase program.
2023 OUTLOOK
Given the elements outlined in the outlook below, the company
expects to report a sequential increase in adjusted EBITDA in the
second quarter of 2023.
Commercial:
- Ship tons are expected to sequentially increase in the second
quarter with customer orders booking into the third quarter.
- Base price per ton is anticipated to remain strong for the
remainder of 2023.
Operations:
- The company expects an average melt utilization rate of
approximately 75 percent for the second quarter.
- Inflationary pressure is anticipated to be stable on
commodities, consumables and other manufacturing costs.
- Annual shutdown maintenance is planned for the second half of
2023 at a cost of approximately $14
million.
Cash and other matters:
- Operating cash flow is expected to be positive in the second
quarter, primarily driven by anticipated profitability.
- Planned capital expenditures are expected to be approximately
$45 million in 2023, consistent with
previous guidance.
- The company continues to seek additional insurance recoveries
related to unplanned downtime in the second half of 2022, although
the timing and amount of potential additional recoveries are
uncertain at this time. In April
2023, the company collected the remaining $9.0 million of the insurance recovery that was
previously recognized as income in the first quarter of 2023.
(1)
Please see discussion of non-GAAP financial measures in this
news release.
|
(2) The
company defines total liquidity as available borrowing capacity
plus cash and cash equivalents.
|
TIMKENSTEEL EARNINGS WEBCAST INFORMATION
TimkenSteel
will provide live Internet listening access to its conference call
with the financial community scheduled for Friday, May 5, 2023 at 9:00 a.m. ET. The live conference call will be
broadcast at investors.timkensteel.com. A replay of the conference
call will also be available at investors.timkensteel.com.
ABOUT TIMKENSTEEL CORPORATION
TimkenSteel (NYSE: TMST)
manufactures high-performance carbon and alloy steel products from
recycled scrap metal in Canton,
OH, serving demanding applications in mobile, energy and a
variety of industrial end markets. The company is a premier U.S.
producer of alloy steel bars (up to 16 inches in diameter),
seamless mechanical tubing and manufactured components. In the
business of making high-quality steel for more than 100 years,
TimkenSteel's proven expertise contributes to the performance of
our customers' products. The company employs approximately 1,725
people and had sales of $1.3 billion
in 2022. For more information, please visit us at
www.timkensteel.com.
NON-GAAP FINANCIAL MEASURES
TimkenSteel reports its
financial results in accordance with accounting principles
generally accepted in the United
States ("GAAP") and corresponding metrics as non-GAAP
financial measures. This earnings release includes references to
the following non-GAAP financial measures: adjusted earnings (loss)
per share, adjusted net income (loss), EBIT, adjusted EBIT, EBITDA,
adjusted EBITDA, free cash flow, base sales, and other adjusted
items. These are important financial measures used in the
management of the business, including decisions concerning the
allocation of resources and assessment of performance. Management
believes that reporting these non-GAAP financial measures is useful
to investors as these measures are representative of the company's
performance and provide improved comparability of results. See the
attached schedules for definitions of the non-GAAP financial
measures referred to above and corresponding reconciliations of
these non-GAAP financial measures to the most comparable GAAP
financial measures. Non-GAAP financial measures should be viewed as
additions to, and not as alternatives for, TimkenSteel's results
prepared in accordance with GAAP. In addition, the non-GAAP
measures TimkenSteel uses may differ from non-GAAP measures used by
other companies, and other companies may not define the non-GAAP
measures TimkenSteel uses in the same way.
FORWARD-LOOKING STATEMENTS
This news release
includes "forward-looking" statements within the meaning of the
federal securities laws. You can generally identify the company's
forward-looking statements by words such as "will," "anticipate,"
"aspire," "believe," "could," "estimate," "expect," "forecast,"
"outlook," "intend," "may," "plan," "possible," "potential,"
"predict," "project," "seek," "target," "should," "would,"
"strategy," or "strategic direction" or other similar words,
phrases or expressions that convey the uncertainty of future events
or outcomes. The company cautions readers that actual results may
differ materially from those expressed or implied in
forward-looking statements made by or on behalf of the company due
to a variety of factors, such as: the potential impact of the
COVID-19 pandemic on the company's operations and financial
results, including cash flows and liquidity; whether the company is
able to successfully implement actions designed to improve
profitability on anticipated terms and timetables and whether the
company is able to fully realize the expected benefits of such
actions; deterioration in world economic conditions, or in economic
conditions in any of the geographic regions in which the company
conducts business, including additional adverse effects from global
economic slowdown, terrorism or hostilities, including political
risks associated with the potential instability of governments and
legal systems in countries in which the company or its customers
conduct business, and changes in currency valuations; the impact of
the Russia-Ukraine conflict on the global economy,
sourcing of raw materials, and commodity prices; climate-related
risks, including environmental and severe weather caused by climate
changes, and legislative and regulatory initiatives addressing
global climate change or other environmental concerns; the effects
of fluctuations in customer demand on sales, product mix and prices
in the industries in which the company operates, including the
ability of the company to respond to rapid changes in customer
demand including but not limited to changes in customer operating
schedules due to supply chain constraints, the effects of customer
bankruptcies or liquidations, the impact of changes in industrial
business cycles, and whether conditions of fair trade exist in U.S.
markets; competitive factors, including changes in market
penetration, increasing price competition by existing or new
foreign and domestic competitors, the introduction of new products
by existing and new competitors, and new technology that may impact
the way the company's products are sold or distributed; changes in
operating costs, including the effect of changes in the company's
manufacturing processes, changes in costs associated with varying
levels of operations and manufacturing capacity, availability of
raw materials and energy, the company's ability to mitigate the
impact of fluctuations in raw materials and energy costs and the
effectiveness of its surcharge mechanism, changes in the expected
costs associated with product warranty claims, changes resulting
from inventory management, cost reduction initiatives and different
levels of customer demands, the effects of unplanned work
stoppages, and changes in the cost of labor and benefits; the
success of the company's operating plans, announced programs,
initiatives and capital investments, and the company's ability to
maintain appropriate relations with the union that represents its
associates in certain locations in order to avoid disruptions of
business; unanticipated litigation, claims or assessments,
including claims or problems related to intellectual property,
product liability or warranty, employment matters, and
environmental issues and taxes, among other matters; cyber-related
risks, including information technology system failures,
interruptions and security breaches; with respect to the company's
ability to achieve its sustainability goals, including its 2030
environmental goals, the ability to meet such goals within the
expected timeframe, changes in laws, regulations, prevailing
standards or public policy, the alignment of the scientific
community on measurement and reporting approaches, the complexity
of commodity supply chains and the evolution of and adoption of new
technology, including traceability practices, tools and processes;
the availability of financing and interest rates, which affect the
company's cost of funds and/or ability to raise capital, including
the ability of the company to refinance or repay at maturity the
convertible notes due December 1,
2025; the company's pension obligations and investment
performance, and/or customer demand and the ability of customers to
obtain financing to purchase the company's products or equipment
that contain its products; the overall impact of pension and other
postretirement benefit mark-to-market accounting; the effects of
the conditional conversion feature of the convertible notes due
December 1, 2025, which, if
triggered, entitles holders to convert the notes at any time during
specified periods at their option and therefore could result in
potential dilution if the holder elects to convert and the company
elects to satisfy a portion or all of the conversion obligation by
delivering common shares instead of cash; the consistency of melt
production to meet forecasted demand levels following unplanned
downtime in the second half of 2022; additional amounts, if any,
that the company is able to obtain from its business interruption
insurance in connection with the unplanned downtime; and the
impacts from any repurchases of our common shares, including the
timing and amount of any repurchases. Further, this news release
represents our current policy and intent and is not intended to
create legal rights or obligations. Certain standards of
measurement and performance contained in this news release are
developing and based on assumptions, and no assurance can be given
that any plan, objective, initiative, projection, goal, mission,
commitment, expectation or prospect set forth in this news release
can or will be achieved. Inclusion of information in this news
release is not an indication that the subject or information is
material to our business or operating results.
Additional risks relating to the company's business, the
industries in which the company operates, or the company's common
shares may be described from time to time in the company's filings
with the SEC. All of these risk factors are difficult to predict,
are subject to material uncertainties that may affect actual
results and may be beyond the company's control. Readers are
cautioned that it is not possible to predict or identify all of the
risks, uncertainties and other factors that may affect future
results and that the above list should not be considered to be a
complete list. Except as required by the federal securities laws,
the company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
Three Months
Ended
March 31,
|
|
(in millions,
except per share data) (Unaudited)
|
|
2023
|
|
|
2022
|
|
Net sales
|
|
$
|
323.5
|
|
|
$
|
352.0
|
|
Cost of products
sold
|
|
|
283.1
|
|
|
|
292.0
|
|
Gross
Profit
|
|
|
40.4
|
|
|
|
60.0
|
|
Selling, general &
administrative expenses (SG&A)
|
|
|
21.0
|
|
|
|
18.5
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
0.4
|
|
Loss (gain) on sale or
disposal of assets, net
|
|
|
0.1
|
|
|
|
0.1
|
|
Loss on extinguishment
of debt
|
|
|
11.4
|
|
|
|
17.0
|
|
Other (income) expense,
net
|
|
|
(8.8)
|
|
|
|
(15.2)
|
|
Earnings (Loss)
Before Interest and Taxes (EBIT) (1)
|
|
|
16.7
|
|
|
|
39.2
|
|
Interest (income)
expense, net
|
|
|
(1.5)
|
|
|
|
1.2
|
|
Income (Loss)
Before Income Taxes
|
|
|
18.2
|
|
|
|
38.0
|
|
Provision (benefit) for
income taxes
|
|
|
3.8
|
|
|
|
0.9
|
|
Net Income
(Loss)
|
|
$
|
14.4
|
|
|
$
|
37.1
|
|
|
|
|
|
|
|
|
Net Income (Loss)
per Common Share:
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
$
|
0.33
|
|
|
$
|
0.80
|
|
Diluted earnings (loss)
per share (2,3)
|
|
$
|
0.30
|
|
|
$
|
0.70
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
|
|
44.0
|
|
|
|
46.4
|
|
Weighted average shares
outstanding - diluted (2,3)
|
|
|
48.7
|
|
|
|
53.8
|
|
|
(1) EBIT is defined as net income
(loss) before interest (income) expense, net and income taxes. EBIT
is an important financial measure used in the management of the
business, including decisions concerning the allocation of
resources and assessment of performance. Management believes that
reporting EBIT is useful to investors as this measure is
representative of the company's performance.
|
|
(2) For
the three months ended March 31, 2023, common share
equivalents for shares issuable upon the conversion of outstanding
convertible notes (2.6 million shares) and common share equivalents
for shares issuable for equity-based awards (2.1 million shares)
were included in the computation of diluted earnings (loss) per
share, as they were considered dilutive. For the convertible notes,
the company utilizes the if-converted method to calculate diluted
earnings (loss) per share. As such, for the three months ended
March 31, 2023, net income was adjusted to add back $0.3
million of convertible notes interest expense (including
amortization of convertible notes issuance costs).
|
|
(3) For
the three months ended March 31, 2022, common share equivalents for
shares issuable upon the conversion of outstanding convertible
notes (5.2 million shares) and common share equivalents for shares
issuable for equity-based awards (2.2 million shares) were included
in the computation of diluted earnings (loss) per share, as they
were considered dilutive. For the convertible notes, the company
utilizes the if-converted method to calculate diluted earnings
(loss) per share. As such, net income was adjusted to add back $0.7
million for the three months ended March 31, 2022, of convertible
notes interest expense (including amortization of convertible notes
issuance costs).
|
CONSOLIDATED BALANCE
SHEETS
|
(Dollars in
millions) (Unaudited)
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
227.4
|
|
|
$
|
257.2
|
|
Accounts receivable,
net of allowances
|
|
|
127.1
|
|
|
|
79.4
|
|
Inventories,
net
|
|
|
244.7
|
|
|
|
192.4
|
|
Deferred charges and
prepaid expenses
|
|
|
4.6
|
|
|
|
6.4
|
|
Other current
assets
|
|
|
10.9
|
|
|
|
21.2
|
|
Total Current
Assets
|
|
|
614.7
|
|
|
|
556.6
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
482.8
|
|
|
|
486.1
|
|
Operating lease
right-of-use assets
|
|
|
12.3
|
|
|
|
12.5
|
|
Pension
assets
|
|
|
18.7
|
|
|
|
19.4
|
|
Intangible assets,
net
|
|
|
4.4
|
|
|
|
5.0
|
|
Other non-current
assets
|
|
|
2.4
|
|
|
|
2.4
|
|
Total Assets
|
|
$
|
1,135.3
|
|
|
$
|
1,082.0
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
173.3
|
|
|
$
|
113.2
|
|
Salaries, wages and
benefits
|
|
|
16.9
|
|
|
|
21.2
|
|
Accrued pension and
postretirement costs
|
|
|
2.0
|
|
|
|
2.0
|
|
Current operating
lease liabilities
|
|
|
5.9
|
|
|
|
6.0
|
|
Current convertible
notes, net
|
|
|
13.1
|
|
|
|
20.4
|
|
Other current
liabilities
|
|
|
19.8
|
|
|
|
23.9
|
|
Total Current
Liabilities
|
|
|
231.0
|
|
|
|
186.7
|
|
|
|
|
|
|
|
|
Credit
agreement
|
|
|
—
|
|
|
|
—
|
|
Non-current operating
lease liabilities
|
|
|
6.3
|
|
|
|
6.5
|
|
Accrued pension and
postretirement costs
|
|
|
165.6
|
|
|
|
162.9
|
|
Deferred income
taxes
|
|
|
26.6
|
|
|
|
25.9
|
|
Other non-current
liabilities
|
|
|
14.4
|
|
|
|
13.5
|
|
Total
Liabilities
|
|
|
443.9
|
|
|
|
395.5
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
|
839.5
|
|
|
|
847.0
|
|
Retained
deficit
|
|
|
(108.7)
|
|
|
|
(123.1)
|
|
Treasury
shares
|
|
|
(53.5)
|
|
|
|
(52.1)
|
|
Accumulated other
comprehensive income (loss)
|
|
|
14.1
|
|
|
|
14.7
|
|
Total Shareholders'
Equity
|
|
|
691.4
|
|
|
|
686.5
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
1,135.3
|
|
|
$
|
1,082.0
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
(Dollars in
millions) (Unaudited)
|
|
Three Months
Ended
March 31,
|
|
|
|
2023
|
|
|
2022
|
|
CASH PROVIDED
(USED)
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
14.4
|
|
|
$
|
37.1
|
|
Adjustments to
reconcile net income (loss) to net cash provided (used) by
operating activities:
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
14.5
|
|
|
|
14.6
|
|
Amortization of
deferred financing fees
|
|
|
0.1
|
|
|
|
0.2
|
|
Loss on extinguishment
of debt
|
|
|
11.4
|
|
|
|
17.0
|
|
Loss (gain) on sale or
disposal of assets, net
|
|
|
0.1
|
|
|
|
0.1
|
|
Deferred income
taxes
|
|
|
0.7
|
|
|
|
(0.1)
|
|
Stock-based
compensation expense
|
|
|
2.6
|
|
|
|
2.1
|
|
Pension and
postretirement expense (benefit), net
|
|
|
3.8
|
|
|
|
(10.7)
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
(47.5)
|
|
|
|
(34.4)
|
|
Inventories,
net
|
|
|
(52.0)
|
|
|
|
(19.0)
|
|
Accounts
payable
|
|
|
63.7
|
|
|
|
28.3
|
|
Other accrued
expenses
|
|
|
(12.8)
|
|
|
|
(20.1)
|
|
Pension and
postretirement contributions and payments
|
|
|
(1.5)
|
|
|
|
(3.7)
|
|
Deferred charges and
prepaid expenses
|
|
|
1.8
|
|
|
|
0.3
|
|
Other, net
|
|
|
10.5
|
|
|
|
1.6
|
|
Net Cash Provided
(Used) by Operating Activities
|
|
|
9.8
|
|
|
|
13.3
|
|
Investing
Activities
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(10.6)
|
|
|
|
(6.5)
|
|
Proceeds from disposals
of property, plant, and equipment
|
|
|
1.5
|
|
|
|
—
|
|
Net Cash Provided
(Used) by Investing Activities
|
|
|
(9.1)
|
|
|
|
(6.5)
|
|
Financing
Activities
|
|
|
|
|
|
|
Purchase of treasury
shares
|
|
|
(9.4)
|
|
|
|
(3.4)
|
|
Proceeds from exercise
of stock options
|
|
|
1.3
|
|
|
|
6.3
|
|
Shares surrendered for
employee taxes on stock compensation
|
|
|
(3.4)
|
|
|
|
(1.6)
|
|
Repayments on
convertible notes
|
|
|
(18.7)
|
|
|
|
(26.8)
|
|
Net Cash Provided
(Used) by Financing Activities
|
|
|
(30.2)
|
|
|
|
(25.5)
|
|
Increase (Decrease)
in Cash, Cash Equivalents, and Restricted Cash
|
|
|
(29.5)
|
|
|
|
(18.7)
|
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
|
|
257.8
|
|
|
|
259.6
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
228.3
|
|
|
$
|
240.9
|
|
|
|
|
|
|
|
|
The following table
provides a reconciliation of cash, cash equivalents, and restricted
cash reported within the Consolidated
Balance Sheets that sum
to the total of the same such amounts shown in the Consolidated
Statements of Cash Flows:
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
227.4
|
|
|
$
|
239.9
|
|
Restricted cash
reported in other current assets
|
|
|
0.9
|
|
|
|
1.0
|
|
Total cash, cash
equivalents, and restricted cash shown in the Consolidated
Statements of Cash Flows
|
|
$
|
228.3
|
|
|
$
|
240.9
|
|
Reconciliation of Free Cash Flow(1) to GAAP Net
Cash Provided (Used) by Operating Activities:
This reconciliation is provided as additional relevant
information about the company's financial position. Free cash flow
is an important financial measure used in the management of the
business. Management believes that free cash flow is useful to
investors because it is a meaningful indicator of cash generated
from operating activities available for the execution of its
business strategy.
|
|
Three Months Ended
March 31,
|
|
(Dollars in
millions) (Unaudited)
|
|
2023
|
|
|
2022
|
|
Net Cash Provided
(Used) by Operating Activities
|
|
$
|
9.8
|
|
|
$
|
13.3
|
|
Less: Capital
expenditures
|
|
|
(10.6)
|
|
|
|
(6.5)
|
|
Free Cash
Flow
|
|
$
|
(0.8)
|
|
|
$
|
6.8
|
|
|
(1) Free Cash Flow is defined as net
cash provided (used) by operating activities less capital
expenditures.
|
Reconciliation of adjusted net income (loss)(3) to
GAAP net income (loss) and adjusted diluted earnings (loss) per
share(3) to GAAP diluted earnings (loss) per share for
the three months ended March 31, 2023, March 31, 2022,
and December 31, 2022:
Adjusted net income (loss), adjusted diluted earnings (loss) per
share and other adjusted items referred to below are financial
measures not required by, or presented in accordance with GAAP.
These Non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, the financial measures
prepared in accordance with GAAP, and a reconciliation of these
financial measures to the most comparable GAAP financial measures
is presented. Management believes this data provides investors with
additional useful information on the underlying operations and
trends of the business and enables period-to-period comparability
of the company's financial performance.
Three Months Ended
March 31, 2023
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
Cost of
products
sold
|
|
|
SG&A
|
|
|
Loss (gain)
on sale or
disposal of
assets, net
|
|
|
Loss on
extinguishment
of debt
|
|
|
Other
(income)
expense,
net
|
|
|
Diluted
earnings
(loss) per
share(1)
|
|
As
reported
|
|
$
|
14.4
|
|
|
$
|
283.1
|
|
|
$
|
21.0
|
|
|
$
|
0.1
|
|
|
$
|
11.4
|
|
|
$
|
(8.8)
|
|
|
$
|
0.30
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale
or disposal of assets, net(6)
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
|
Loss (gain) from
remeasurement of benefit plans, net
|
|
|
2.2
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.2)
|
|
|
|
0.05
|
|
Loss on
extinguishment of debt
|
|
|
11.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(11.4)
|
|
|
|
—
|
|
|
|
0.23
|
|
Insurance
recoveries(10)
|
|
|
(9.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
9.8
|
|
|
|
(0.20)
|
|
Business
transformation costs(2)
|
|
|
0.1
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.00
|
|
IT transformation
costs(7)
|
|
|
0.8
|
|
|
|
—
|
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
Accelerated
depreciation and amortization
|
|
|
0.3
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Tax effect on above
adjustments(9)
|
|
|
1.3
|
|
|
|
(0.1)
|
|
|
|
(0.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.6
|
|
|
|
0.03
|
|
As
adjusted
|
|
$
|
20.8
|
|
|
$
|
282.7
|
|
|
$
|
19.9
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.4
|
|
|
$
|
0.44
|
|
Three Months Ended
March 31, 2022
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
SG&A
|
|
|
Restructuring
charges
|
|
|
Loss (gain)
on sale or
disposal of
assets, net
|
|
|
Loss on
extinguishment
of debt
|
|
|
Other
expense
(income),
net
|
|
|
Diluted
earnings
(loss) per
share(4)
|
|
As
reported
|
|
$
|
37.1
|
|
|
$
|
18.5
|
|
|
$
|
0.4
|
|
|
$
|
0.1
|
|
|
$
|
17.0
|
|
|
$
|
(15.2)
|
|
|
$
|
0.70
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.4
|
|
|
|
—
|
|
|
|
(0.4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Loss (gain) on sale
or disposal of assets, net(6)
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
0.00
|
|
Loss on
extinguishment of debt
|
|
|
17.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(17.0)
|
|
|
|
—
|
|
|
|
0.32
|
|
Loss (gain) from
remeasurement of benefit plans, net
|
|
|
(6.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.5
|
|
|
|
(0.12)
|
|
Business
transformation costs(2)
|
|
|
0.5
|
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
As
adjusted
|
|
$
|
48.6
|
|
|
$
|
18.0
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8.7)
|
|
|
$
|
0.92
|
|
For the Three Months
Ended December 31, 2022
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
SG&A
|
|
|
Loss (gain) on
sale or
disposal of
assets, net
|
|
|
Other
(income)
expense,
net
|
|
|
Provision
(benefit) for
income taxes
|
|
|
Diluted
earnings
(loss)
per share(5)
|
|
As
reported
|
|
$
|
(33.2)
|
|
|
$
|
17.4
|
|
|
$
|
(0.6)
|
|
|
$
|
(31.8)
|
|
|
$
|
28.9
|
|
|
$
|
(0.75)
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss (gain) on sale
or disposal of assets, net(6)
|
|
|
(0.6)
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Loss (gain) from
remeasurement of benefit plans, net
|
|
|
1.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.8)
|
|
|
|
—
|
|
|
|
0.04
|
|
Business
transformation costs(2)
|
|
|
0.1
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
IT transformation
costs(7)
|
|
|
1.3
|
|
|
|
(1.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.03
|
|
Provision (benefit)
for income taxes(8)
|
|
|
26.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(26.6)
|
|
|
|
0.60
|
|
Tax effect on above
adjustments(9)
|
|
|
(0.6)
|
|
|
|
0.3
|
|
|
|
(0.1)
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
(0.02)
|
|
As
adjusted
|
|
$
|
(4.6)
|
|
|
$
|
16.3
|
|
|
$
|
(0.1)
|
|
|
$
|
(33.2)
|
|
|
$
|
2.3
|
|
|
$
|
(0.10)
|
|
|
(1)
For the three months ended March 31, 2023, common share equivalents
for shares issuable upon the conversion of outstanding convertible
notes (2.6 million shares) and common share equivalents for shares
issuable for equity-based awards (2.1 million shares) were included
in the computation of as reported and as adjusted diluted earnings
(loss) per share, as they were considered dilutive. The total
diluted weighted average shares outstanding for the three months
ended March 31, 2023 was 48.7 million shares. For the convertible
notes, the company utilizes the if-converted method to calculate
diluted earnings (loss) per share. As such, net income was adjusted
to add back $0.3 million of convertible notes interest expense
(including amortization of convertible notes issuance
costs).
|
|
(2) Business transformation costs
consist of items that are non-routine in nature. These costs are
primarily related to professional service fees associated with
strategic initiatives and organizational changes.
|
|
(3) Adjusted net income (loss) and
adjusted diluted earnings (loss) per share are defined as net
income (loss) and diluted earnings (loss) per share, respectively,
excluding, as applicable, adjustments listed in the foregoing
table. Other adjusted items referred to in the foregoing tables are
also defined as the applicable item excluding any adjustments
listed in the foregoing tables with respect to such
item.
|
|
(4) For
the three months ended March 31, 2022, common share equivalents for
shares issuable upon the conversion of outstanding convertible
notes (5.2 million shares) and common share equivalents for shares
issuable for equity-based awards (2.2 million shares) were included
in the computation of as reported and as adjusted diluted earnings
(loss) per share, as they were considered dilutive. The total
diluted weighted average shares outstanding for the three months
ended March 31, 2022 was 53.8 million shares. For the convertible
notes, the company utilizes the if-converted method to calculate
diluted earnings (loss) per share. As such, net income was adjusted
to add back $0.7 million of convertible notes interest expense
(including amortization of convertible notes issuance
costs).
|
|
(5) Common
share equivalents for shares issuable upon the conversion of
outstanding convertible notes and common share equivalents for
shares issuable for equity-based awards, were excluded from the
computation of diluted earnings (loss) per share for the three
months ended December 31, 2022, because the effect of their
inclusion would have been anti-dilutive.
|
|
(6) For the
three months ended March 31, 2023, the loss on sale or
disposal of assets, net, primarily consisted of write-offs of aged
assets. For the three months ended March 31, 2022, loss on
sale or disposal of assets consisted of write-offs of aged assets.
For the three months ended December 31, 2022, the gain on sale
or disposal of assets, net, primarily related to the sale of excess
assets.
|
|
(7) For the
three months ended March 31, 2023 and December 31, 2022,
IT transformation costs were primarily related to professional
service fees not eligible for capitalization that are associated
specifically with an information technology application
simplification and modernization project.
|
|
(8)
Provision (benefit) for income taxes includes the net tax benefit
(expense) from non-routine income tax items. For the three months
ended December 31, 2022, this amount includes a tax benefit
associated with the reversal of an inventory reserve related to an
accounting policy change from LIFO to FIFO, which occurred in 2019,
a tax expense related to the reversal of our full domestic
valuation allowance, and a tax benefit to normalize the income tax
impact of recognizing full year income tax in the fourth quarter of
2022 due to the timing of release of the company's full domestic
valuation allowance.
|
|
(9) Tax
effect on above adjustments includes the tax impact related to the
adjustments shown above.
|
|
(10) During
the second half of 2022, the Faircrest melt shop experienced
unplanned operational downtime. During the first quarter of 2023,
TimkenSteel recognized an insurance recovery of $9.8 million
related to the unplanned downtime.
|
Reconciliation of Earnings (Loss) Before Interest and Taxes
(EBIT)(2), Adjusted EBIT(4), Earnings (Loss)
Before Interest, Taxes, Depreciation and Amortization
(EBITDA)(3) and Adjusted EBITDA(5) to GAAP
Net Income (Loss):
This reconciliation is provided as additional relevant
information about the company's performance. EBIT, Adjusted EBIT,
EBITDA and Adjusted EBITDA are important financial measures used in
the management of the business, including decisions concerning the
allocation of resources and assessment of performance. Management
believes that reporting EBIT, Adjusted EBIT, EBITDA and Adjusted
EBITDA is useful to investors as these measures are representative
of the company's performance. Management also believes that it is
appropriate to compare GAAP net income (loss) to EBIT, Adjusted
EBIT, EBITDA and Adjusted EBITDA.
|
|
Three Months
Ended
March 31,
|
|
|
Three Months
ended
December 31,
|
|
(Dollars in
millions) (Unaudited)
|
|
2023
|
|
|
2022
|
|
|
2022
|
|
Net Income
(loss)
|
|
$
|
14.4
|
|
|
$
|
37.1
|
|
|
$
|
(33.2)
|
|
Net Income Margin
(1)
|
|
|
4.5
|
%
|
|
|
10.5
|
%
|
|
|
(13.5)
|
%
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
|
|
3.8
|
|
|
|
0.9
|
|
|
|
28.9
|
|
Interest (income)
expense, net
|
|
|
(1.5)
|
|
|
|
1.2
|
|
|
|
(1.0)
|
|
Earnings Before
Interest and Taxes (EBIT) (2)
|
|
$
|
16.7
|
|
|
$
|
39.2
|
|
|
$
|
(5.3)
|
|
EBIT Margin
(2)
|
|
|
5.2
|
%
|
|
|
11.1
|
%
|
|
|
(2.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
14.5
|
|
|
|
14.6
|
|
|
|
14.6
|
|
Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA)
(3)
|
|
$
|
31.2
|
|
|
$
|
53.8
|
|
|
$
|
9.3
|
|
EBITDA Margin
(3)
|
|
|
9.6
|
%
|
|
|
15.3
|
%
|
|
|
3.8
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
(0.4)
|
|
|
|
—
|
|
Gain (loss) from
remeasurement of benefit plans, net
|
|
|
(2.2)
|
|
|
|
6.5
|
|
|
|
(1.8)
|
|
Loss on extinguishment
of debt
|
|
|
(11.4)
|
|
|
|
(17.0)
|
|
|
|
—
|
|
Insurance recoveries
(9)
|
|
|
9.8
|
|
|
|
—
|
|
|
|
—
|
|
Accelerated
depreciation and amortization (EBIT only)
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
—
|
|
Business transformation
costs (6)
|
|
|
(0.1)
|
|
|
|
(0.5)
|
|
|
|
(0.1)
|
|
IT transformation costs
(8)
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
(1.3)
|
|
Gain (loss) on sale or
disposal of assets, net (7)
|
|
|
(0.1)
|
|
|
|
(0.1)
|
|
|
|
0.6
|
|
Adjusted EBIT
(4)
|
|
$
|
21.8
|
|
|
$
|
50.7
|
|
|
$
|
(2.7)
|
|
Adjusted EBIT Margin
(4)
|
|
|
6.7
|
%
|
|
|
14.4
|
%
|
|
|
(1.1)
|
%
|
Adjusted EBITDA
(5)
|
|
$
|
36.0
|
|
|
$
|
65.3
|
|
|
$
|
11.9
|
|
Adjusted EBITDA Margin
(5)
|
|
|
11.1
|
%
|
|
|
18.6
|
%
|
|
|
4.8
|
%
|
|
(1) Net
Income Margin is defined as net income (loss) as a percentage of
net sales.
|
|
(2) EBIT is defined as net income
(loss) before interest (income) expense, net and income taxes. EBIT
Margin is EBIT as a percentage of net sales.
|
|
(3) EBITDA is defined as net income
(loss) before interest (income) expense, net, income taxes,
depreciation and amortization. EBITDA Margin is EBITDA as a
percentage of net sales.
|
|
(4) Adjusted EBIT is defined as EBIT
excluding, as applicable, adjustments listed in the table above.
Adjusted EBIT Margin is Adjusted EBIT as a percentage of net
sales.
|
|
(5) Adjusted EBITDA is defined as
EBITDA excluding, as applicable, adjustments listed in the table
above. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of
net sales.
|
|
(6) Business transformation costs
consist of items that are non-routine in nature. These costs were
primarily related to professional service fees associated with
strategic initiatives and organizational changes.
|
|
(7) For the
three months ended March 31, 2023, the loss on sale or
disposal of assets, net, primarily consisted of write-offs of aged
assets. For the three months ended March 31, 2022, the loss on
sale or disposal of assets consisted of write-offs of aged assets.
For the three months ended December 31, 2022, the gain on sale
or disposal of assets, net, primarily related to the sale of excess
assets.
|
|
(8) IT
transformation costs are primarily related to professional service
fees not eligible for capitalization that are associated
specifically with an information technology application
simplification and modernization project.
|
|
(9)
During the second half of 2022, the Faircrest melt shop experienced
unplanned operational downtime. During the first quarter of 2023,
TimkenSteel recognized an insurance recovery of $9.8 million
related to the unplanned downtime.
|
Reconciliation of Base Sales by end market sector to GAAP Net
Sales by end-market sector:
The tables below present net sales by end-market sector,
adjusted to exclude surcharges, which represents a financial
measure that has not been determined in accordance with GAAP. We
believe presenting net sales by end-market sector, both on a gross
basis and on a per ton basis, adjusted to exclude raw material and
natural gas surcharges, provides additional insight into key
drivers of net sales such as base price and product mix. Due to the
fact that the surcharge mechanism can introduce volatility to our
net sales, net sales adjusted to exclude surcharges provides
management and investors clarity of our core pricing and results.
Presenting net sales by end-market sector, adjusted to exclude
surcharges including on a per ton basis, allows management and
investors to better analyze key market indicators and trends and
allows for enhanced comparison between our end-market sectors.
When surcharges are included in a customer agreement and are
applicable (i.e., reach the threshold amount), based on the terms
outlined in the respective agreement, surcharges are then included
as separate line items on a customer's invoice. These additional
surcharge line items adjust base prices to match cost fluctuations
due to market conditions. Each month, the company will post on the
surcharges page of its external website, as well as our customer
portal, the scrap, alloy, and natural gas surcharges that will be
applied (as a separate line item) to invoices dated in the
following month (based upon shipment volumes in the following
month). All surcharges invoiced are included in GAAP net sales.
End-Market Sector
Sales Data
|
(Dollars in
millions, tons in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2023
|
|
|
|
Industrial
|
|
|
Mobile
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
72.2
|
|
|
|
80.4
|
|
|
|
20.3
|
|
|
|
—
|
|
|
|
172.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
143.7
|
|
|
$
|
127.8
|
|
|
$
|
46.2
|
|
|
$
|
5.8
|
|
|
$
|
323.5
|
|
Less:
Surcharges
|
|
|
38.0
|
|
|
|
31.7
|
|
|
|
13.1
|
|
|
|
—
|
|
|
|
82.8
|
|
Base Sales
|
|
$
|
105.7
|
|
|
$
|
96.1
|
|
|
$
|
33.1
|
|
|
$
|
5.8
|
|
|
$
|
240.7
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,990
|
|
|
$
|
1,590
|
|
|
$
|
2,276
|
|
|
$
|
—
|
|
|
$
|
1,871
|
|
Surcharges /
Ton
|
|
$
|
526
|
|
|
$
|
394
|
|
|
$
|
645
|
|
|
$
|
—
|
|
|
|
479
|
|
Base Sales /
Ton
|
|
$
|
1,464
|
|
|
$
|
1,196
|
|
|
$
|
1,631
|
|
|
$
|
—
|
|
|
$
|
1,392
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
March 31, 2022
|
|
|
|
Industrial
|
|
|
Mobile
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
94.9
|
|
|
|
88.9
|
|
|
|
12.6
|
|
|
|
—
|
|
|
|
196.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
175.0
|
|
|
$
|
144.1
|
|
|
$
|
25.0
|
|
|
$
|
7.9
|
|
|
$
|
352.0
|
|
Less:
Surcharges
|
|
|
54.9
|
|
|
|
45.7
|
|
|
|
8.0
|
|
|
|
—
|
|
|
|
108.6
|
|
Base Sales
|
|
$
|
120.1
|
|
|
$
|
98.4
|
|
|
$
|
17.0
|
|
|
$
|
7.9
|
|
|
$
|
243.4
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,844
|
|
|
$
|
1,621
|
|
|
$
|
1,984
|
|
|
$
|
—
|
|
|
$
|
1,792
|
|
Surcharges /
Ton
|
|
$
|
578
|
|
|
$
|
514
|
|
|
$
|
635
|
|
|
$
|
—
|
|
|
|
553
|
|
Base Sales /
Ton
|
|
$
|
1,266
|
|
|
$
|
1,107
|
|
|
$
|
1,349
|
|
|
$
|
—
|
|
|
$
|
1,239
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
|
Industrial
|
|
|
Mobile
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
47.5
|
|
|
|
67.7
|
|
|
|
13.1
|
|
|
|
—
|
|
|
|
128.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
99.5
|
|
|
$
|
112.1
|
|
|
$
|
29.3
|
|
|
$
|
4.5
|
|
|
$
|
245.4
|
|
Less:
Surcharges
|
|
|
19.9
|
|
|
|
27.8
|
|
|
|
6.8
|
|
|
|
—
|
|
|
|
54.5
|
|
Base Sales
|
|
$
|
79.6
|
|
|
$
|
84.3
|
|
|
$
|
22.5
|
|
|
$
|
4.5
|
|
|
$
|
190.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
2,095
|
|
|
$
|
1,656
|
|
|
$
|
2,237
|
|
|
$
|
—
|
|
|
$
|
1,913
|
|
Surcharges /
Ton
|
|
$
|
419
|
|
|
$
|
411
|
|
|
$
|
519
|
|
|
$
|
—
|
|
|
$
|
425
|
|
Base Sales /
Ton
|
|
$
|
1,676
|
|
|
$
|
1,245
|
|
|
$
|
1,718
|
|
|
$
|
—
|
|
|
$
|
1,488
|
|
Calculation of Total
Liquidity(1):
This calculation is
provided as additional relevant information about the company's
financial position.
|
|
(Dollars in
millions) (Unaudited)
|
|
March 31,
2023
|
|
|
December 31,
2022
|
|
Cash and cash
equivalents
|
|
$
|
227.4
|
|
|
$
|
257.2
|
|
|
|
|
|
|
|
|
Credit
Agreement:
|
|
|
—
|
|
|
|
|
Maximum
availability
|
|
$
|
400.0
|
|
|
$
|
400.0
|
|
Suppressed
availability(2)
|
|
|
(91.4)
|
|
|
|
(161.2)
|
|
Availability
|
|
|
308.6
|
|
|
|
238.8
|
|
Credit facility amount
borrowed
|
|
|
—
|
|
|
|
—
|
|
Letter of credit
obligations
|
|
|
(5.3)
|
|
|
|
(5.3)
|
|
Availability not
borrowed
|
|
$
|
303.3
|
|
|
$
|
233.5
|
|
|
|
|
|
|
|
|
Total
liquidity
|
|
$
|
530.7
|
|
|
$
|
490.7
|
|
|
(1) Total Liquidity is defined as
available borrowing capacity plus cash and cash
equivalents.
|
|
(2) As
of March 31, 2023 and December 31, 2022, TimkenSteel had less than
$400 million in collateral assets to borrow against.
|
ADJUSTED
EBITDA(1) WALKS
|
|
(Dollars in
millions) (Unaudited)
|
|
2022 1Q
vs. 2023 1Q
|
|
|
2022 4Q
vs. 2023 1Q
|
|
Beginning Adjusted
EBITDA(1)
|
|
$
|
65
|
|
|
$
|
12
|
|
Volume
|
|
|
(9)
|
|
|
|
17
|
|
Price/Mix
|
|
|
13
|
|
|
|
4
|
|
Raw Material
Spread
|
|
|
(1)
|
|
|
|
14
|
|
Manufacturing
|
|
|
(22)
|
|
|
|
27
|
|
Inventory
Reserve
|
|
|
—
|
|
|
|
—
|
|
SG&A
|
|
|
(2)
|
|
|
|
(4)
|
|
Other
|
|
|
(8)
|
|
|
|
(34)
|
|
Ending Adjusted
EBITDA(1)
|
|
$
|
36
|
|
|
$
|
36
|
|
|
(1) Please refer to the
Reconciliation of Earnings (Loss) Before Interest and Taxes (EBIT),
Adjusted EBIT, Earnings (Loss) Before Interest, Taxes, Depreciation
and Amortization (EBITDA) and Adjusted EBITDA to GAAP Net Income
(Loss).
|
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SOURCE TimkenSteel Corp.