CANTON, Ohio, July 27, 2016 /PRNewswire/ -- TimkenSteel (NYSE:
TMST, timkensteel.com), a leader in customized alloy steel products
and services, today reported second-quarter net sales of
$223.1 million and a net
loss of $10.5 million or minus
24 cents per share. This
compares with a net loss of $24.3
million or minus 54 cents per share in the same
quarter last year.
EBITDA for the quarter was $4.0
million, a sequential improvement of $5.6 million and in line with second-quarter
expectations.
"We saw signs of stabilizing scrap and commodity markets in the
second quarter. Our shipments increased and we realized the benefit
of raw material spread. We strengthened our liquidity position in
the quarter by issuing $86 million of
convertible notes. We also continued to effectively manage working
capital, which contributed to $21
million in free cash flow," said Tim Timken, chairman,
CEO and president. "The third quarter likely will show seasonality
in the automotive markets, so we remain focused on operating
efficiently and managing costs. At the same time, innovation and
customer collaboration continue to be priorities and, as a result,
we continue to win new business."
SECOND-QUARTER 2016 FINANCIAL SUMMARY
Second-quarter net sales decreased $55.1 million or 19.8 percent year over year and
increased $5.2 million or
2.4 percent sequentially.
- Ship tons were approximately 190,000, a decrease of 10.5
percent over the second quarter of 2015, but an increase of 1.9
percent sequentially.
- U.S. rig count is about 50 percent lower compared with the
second quarter of 2015, resulting in decreased demand for energy
and related industrial products.
- The sequential increase in net sales was driven by surcharge
revenue, improved industrial markets through the distribution
channel and continued strength in automotive.
- Surcharge revenue of $23.2
million decreased 39.6 percent from the prior-year quarter
as a result of lower volumes and a lower No. 1 Busheling Index
relative to the prior year.
- Compared with first-quarter 2016, surcharge revenue increased
49.7 percent, primarily due to the increase in the No. 1 Busheling
Index.
EBIT was a loss of $14.5
million, compared with EBIT loss of $37.9 million for the same period a year ago and
an EBIT loss of $20.3 million
for the first-quarter 2016.
- Year over year, second-quarter EBIT improved due to the
favorable timing impact related to raw material spread and
realization of cost reduction actions, partially offset by
unfavorable volume, price and mix impacts from weak end
markets.
- Sequentially, EBIT was favorable primarily due to the positive
impact from the timing of raw material spread from stabilizing
scrap prices.
- Melt utilization was 45 percent for the quarter, compared with
47 percent in second-quarter 2015, and 47 percent in first-quarter
2016.
OUTLOOK
Third-Quarter 2016 Revenue
- Shipments are expected to be approximately 5 percent lower than
second-quarter 2016.
- Automotive demand should be lower due to seasonal impacts, but
remains strong.
- Continued pressure on oil and gas shipments is expected due to
low levels of energy exploration and production spend.
- Industrial demand is expected to remain low but stable, similar
to second quarter.
- Imports and weak market dynamics are expected to continue to
pressure pricing.
Third-Quarter 2016 Net Loss
- Net loss is projected to be between $20
million and $13 million.
- EBITDA is projected to be between a loss of $10 million and breakeven.
- Seasonal manufacturing maintenance costs are expected to be
about $5 million.
- Melt utilization is expected to be similar to second
quarter.
- Raw material spread is expected to be flat versus second
quarter.
Other Guidance
- 2016 capital spending is projected to be $45 million.
The company will host a conference call at 9 a.m. EDT on Thursday,
July 28, 2016, to discuss its financial performance with
investors and analysts. The financial results and second-quarter
2016 earnings supporting information are available on our website
at investors.timkensteel.com.
Conference
Call
Thursday, July 28,
2016
9 a.m. EDT
|
Toll-free dial-in:
877-201-0168
International
dial-in: 647-788-4901
Conference ID: 42004464
|
|
|
Conference Call
Replay
Available through
Aug. 11, 2016
|
Dial-in: 855-859-2056
or 404-537-3406
Replay passcode:
42004464
|
|
|
Live
Webcast
|
investors.timkensteel.com
|
About TimkenSteel Corporation
TimkenSteel (NYSE:TMST, timkensteel.com) creates tailored steel
products and services for demanding applications, helping customers
push the bounds of what's possible within their industries. The
company reaches around the world in its customers' products and
leads North America in large alloy
steel bars (up to 16 inches in diameter) and seamless mechanical
tubing made of its special bar quality (SBQ) steel, as well as
supply chain and steel services. TimkenSteel makes all of its steel
in the United States and operates
warehouses and sales offices in four other countries. The
company posted sales of $1.1 billion in 2015 and was
named Steel Producer of the Year by American
Metal Market. Follow us on Twitter @TimkenSteel and on
Instagram.
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. EBIT is defined as
net earnings (loss) before interest expense and income taxes and
EBITDA is defined as net earnings (loss) before interest expense,
income taxes, depreciation and amortization. EBIT and 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 and EBITDA is useful to investors as these measures
are representative of the company's performance. It also is a
useful reflection of the underlying growth from the ongoing
activities of the business and provides improved comparability of
results.
See the attached schedules for supplemental financial data and
corresponding reconciliations of the non-GAAP financial measures
referred to above to the most comparable GAAP financial measures.
Non-GAAP financial measures should be viewed in addition to, and
not as an alternative 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.
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 "anticipate," "believe," "could," "estimate,"
"expect," "forecast," "outlook," "intend," "may," "plan,"
"possible," "potential," "predict," "project," "seek," "target,"
"should" or "would" 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 company's ability to realize the expected benefits of its
spinoff from The Timken Company; the costs associated with being an
independent public company, which may be higher than anticipated;
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 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, 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 (including
the jumbo bloom vertical caster and advanced quench-and-temper
facility), the ability to integrate acquired companies, the ability
of acquired companies to achieve satisfactory operating results,
including results being accretive to earnings, and the company's
ability to maintain appropriate relations with unions that
represent its employees in certain locations in order to avoid
disruptions of business; and the availability of financing and
interest rates, which affect the company's cost of funds and/or
ability to raise capital, 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, and the amount of any dividend
declared by the company's board of directors on its common
shares.
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.
CONDENSED
CONSOLIDATED STATEMENTS OF OPERATIONS
|
|
|
|
|
|
|
|
(Dollars in
millions, except per share data) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
2015
|
|
Net sales
|
$223.1
|
|
|
$278.2
|
|
|
$441.0
|
|
$666.9
|
|
|
Cost of products
sold
|
212.9
|
|
|
284.3
|
|
|
427.4
|
|
631.4
|
|
|
Gross Profit
(Loss)
|
10.2
|
|
|
(6.1)
|
|
|
13.6
|
|
35.5
|
|
|
Selling, general
& administrative expenses (SG&A)
|
23.7
|
|
|
29.7
|
|
|
46.6
|
|
58.8
|
|
|
Impairment and
restructuring charges
|
0.3
|
|
|
1.6
|
|
|
0.3
|
|
2.0
|
|
|
Other expense,
net
|
0.7
|
|
|
0.5
|
|
|
1.5
|
|
1.4
|
|
|
Earnings (Loss)
Before Interest and Taxes (EBIT) (1)
|
(14.5)
|
|
|
(37.9)
|
|
|
(34.8)
|
|
(26.7)
|
|
|
|
|
|
|
|
|
|
|
Interest
expense
|
2.1
|
|
|
1.0
|
|
|
4.1
|
|
1.1
|
|
|
Loss Before Income
Taxes
|
(16.6)
|
|
|
(38.9)
|
|
|
(38.9)
|
|
(27.8)
|
|
|
Benefit for income
taxes
|
(6.1)
|
|
|
(14.6)
|
|
|
(14.8)
|
|
(10.4)
|
|
|
Net
Loss
|
($10.5)
|
|
|
($24.3)
|
|
|
($24.1)
|
|
($17.4)
|
|
|
|
|
|
|
|
|
|
|
Net Loss per
Common Share:
|
|
|
|
|
|
|
|
Basic loss per
share
|
($0.24)
|
|
|
($0.54)
|
|
|
($0.55)
|
|
($0.39)
|
|
|
Diluted loss per
share
|
($0.24)
|
|
|
($0.54)
|
|
|
($0.55)
|
|
($0.39)
|
|
|
|
|
|
|
|
|
|
|
Weighted average
shares outstanding
|
44,220,496
|
|
|
44,779,016
|
|
|
44,212,796
|
|
44,776,190
|
|
|
Weighted average
shares outstanding - assuming dilution
|
44,220,496
|
|
|
44,779,016
|
|
|
44,212,796
|
|
44,776,190
|
|
|
|
|
|
|
|
|
|
|
(1) EBIT
is defined as net earnings (loss) before interest expense 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.
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
|
|
|
(Dollars in
millions) (Unaudited)
|
June 30,
2016
|
|
December 31,
2015
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$37.2
|
|
|
$42.4
|
|
Accounts receivable,
net of allowances
|
97.4
|
|
|
80.9
|
|
Inventories,
net
|
157.4
|
|
|
173.9
|
|
Deferred charges and
prepaid expenses
|
1.7
|
|
|
11.4
|
|
Other current
assets
|
6.9
|
|
|
9.2
|
|
Total Current
Assets
|
300.6
|
|
|
317.8
|
|
Property, Plant and
Equipment, net
|
750.0
|
|
|
769.3
|
|
Pension
assets
|
24.1
|
|
|
20.0
|
|
Intangible assets,
net
|
27.3
|
|
|
30.6
|
|
Other non-current
assets
|
5.4
|
|
|
4.1
|
|
Total Other
Assets
|
56.8
|
|
|
54.7
|
|
Total
Assets
|
$1,107.4
|
|
|
$1,141.8
|
|
|
|
|
|
LIABILITIES
|
|
|
|
Accounts payable,
trade
|
$72.6
|
|
|
$49.5
|
|
Salaries, wages and
benefits
|
16.5
|
|
|
21.4
|
|
Accrued pension and
postretirement costs
|
3.2
|
|
|
3.2
|
|
Other current
liabilities
|
18.2
|
|
|
30.1
|
|
Total Current
Liabilities
|
110.5
|
|
|
104.2
|
|
Convertible notes,
net
|
65.1
|
|
|
—
|
|
Other long-term
debt
|
80.2
|
|
|
200.2
|
|
Accrued pension and
postretirement costs
|
130.1
|
|
|
114.1
|
|
Deferred income
taxes
|
25.2
|
|
|
26.9
|
|
Other non-current
liabilities
|
12.4
|
|
|
10.0
|
|
Total Non-Current
Liabilities
|
313.0
|
|
|
351.2
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Additional paid-in
capital
|
1,071.6
|
|
|
1,058.2
|
|
Retained
deficit
|
(85.8)
|
|
|
(61.7)
|
|
Treasury
shares
|
(45.1)
|
|
|
(46.3)
|
|
Accumulated other
comprehensive loss
|
(256.8)
|
|
|
(263.8)
|
|
Total Shareholders'
Equity
|
683.9
|
|
|
686.4
|
|
Total Liabilities and
Shareholders' Equity
|
$1,107.4
|
|
|
$1,141.8
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
(Dollars in
millions) (Unaudited)
|
2016
|
|
2015
|
|
2016
|
|
2015
|
CASH PROVIDED
(USED)
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
Net loss
|
($10.5)
|
|
|
($24.3)
|
|
|
($24.1)
|
|
|
($17.4)
|
|
Adjustments to
reconcile net loss to net cash provided by operating
activities:
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
18.5
|
|
|
19.1
|
|
|
37.2
|
|
|
36.7
|
|
Amortization related
to long-term financing
|
0.8
|
|
|
0.1
|
|
|
0.8
|
|
|
0.2
|
|
Impairment
charges
|
—
|
|
|
—
|
|
|
—
|
|
|
0.4
|
|
Loss on sale or
disposal of assets
|
0.3
|
|
|
—
|
|
|
1.1
|
|
|
0.2
|
|
Deferred income
taxes
|
(6.4)
|
|
|
(15.6)
|
|
|
(15.1)
|
|
|
(12.0)
|
|
Stock-based
compensation expense
|
1.5
|
|
|
2.8
|
|
|
3.0
|
|
|
4.8
|
|
Pension and
postretirement expense
|
7.6
|
|
|
6.5
|
|
|
14.2
|
|
|
15.1
|
|
Pension and
postretirement contributions and payments
|
(1.4)
|
|
|
(3.1)
|
|
|
(3.3)
|
|
|
(8.3)
|
|
Reimbursement from
postretirement plan assets
|
—
|
|
|
—
|
|
|
13.3
|
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
|
|
—
|
|
Accounts receivable,
net of allowances
|
(2.4)
|
|
|
51.4
|
|
|
(16.5)
|
|
|
51.8
|
|
Inventories,
net
|
3.5
|
|
|
47.7
|
|
|
16.5
|
|
|
64.3
|
|
Accounts payable,
trade
|
16.5
|
|
|
(35.0)
|
|
|
23.1
|
|
|
(58.4)
|
|
Other accrued
expenses
|
(3.2)
|
|
|
(0.1)
|
|
|
(13.9)
|
|
|
(31.4)
|
|
Deferred charges and
prepaid expenses
|
2.7
|
|
|
(1.9)
|
|
|
9.7
|
|
|
17.8
|
|
Other, net
|
0.4
|
|
|
—
|
|
|
2.0
|
|
|
(1.6)
|
|
Net Cash Provided
by Operating Activities
|
27.9
|
|
|
47.6
|
|
|
48.0
|
|
|
62.2
|
|
Investing
Activities
|
|
|
|
|
|
|
|
Capital
expenditures
|
(6.7)
|
|
|
(16.7)
|
|
|
(15.2)
|
|
|
(34.6)
|
|
Proceeds from
disposals of property, plant and equipment
|
—
|
|
|
0.1
|
|
|
—
|
|
|
0.3
|
|
Net Cash Used by
Investing Activities
|
(6.7)
|
|
|
(16.6)
|
|
|
(15.2)
|
|
|
(34.3)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
Cash dividends paid
to shareholders
|
—
|
|
|
(6.2)
|
|
|
—
|
|
|
(12.5)
|
|
Purchase of treasury
shares
|
—
|
|
|
(0.3)
|
|
|
—
|
|
|
(5.0)
|
|
Proceeds from
exercise of stock options
|
—
|
|
|
0.2
|
|
|
—
|
|
|
1.3
|
|
Credit agreement
repayments
|
(105.0)
|
|
|
(20.0)
|
|
|
(120.0)
|
|
|
(40.0)
|
|
Credit agreement
borrowings
|
—
|
|
|
—
|
|
|
—
|
|
|
30.0
|
|
Issuance costs
related to credit agreement
|
(0.2)
|
|
|
—
|
|
|
(1.7)
|
|
|
—
|
|
Proceeds from
issuance of convertible notes
|
86.3
|
|
|
—
|
|
|
86.3
|
|
|
—
|
|
Issuance costs
related to convertible notes
|
(2.6)
|
|
|
—
|
|
|
(2.6)
|
|
|
—
|
|
Net transfers to
Timken and affiliates
|
—
|
|
|
—
|
|
|
—
|
|
|
(0.5)
|
|
Net Cash Used by
Financing Activities
|
(21.5)
|
|
|
(26.3)
|
|
|
(38.0)
|
|
|
(26.7)
|
|
Effect of exchange
rate changes on cash
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
(Decrease) Increase
In Cash and Cash Equivalents
|
(0.3)
|
|
|
4.7
|
|
|
(5.2)
|
|
|
1.2
|
|
Cash and cash
equivalents at beginning of period
|
37.5
|
|
|
31.0
|
|
|
42.4
|
|
|
34.5
|
|
Cash and Cash
Equivalents at End of Period
|
$37.2
|
|
|
$35.7
|
|
|
$37.2
|
|
|
$35.7
|
|
Reconciliation of
Earnings (Loss) Before Interest and Taxes (EBIT)
(1) and Earnings (Loss) Before Interest, Taxes,
Depreciation and Amortization (EBITDA) (2) to GAAP Net
Loss:
|
This reconciliation
is provided as additional relevant information about the Company's
performance. Management believes EBIT and EBITDA are representative
of the Company's performance and therefore useful to investors.
Management also believes that it is appropriate to compare GAAP net
loss to EBIT and EBITDA.
|
(Dollars in
millions) (Unaudited)
|
|
|
|
|
|
Three Months
Ended
June 30,
|
Six Months
Ended
June
30,
|
|
2016
|
|
2015
|
2016
|
|
2015
|
Net loss
|
($10.5)
|
|
|
($24.3)
|
|
($24.1)
|
|
|
($17.4)
|
|
|
|
|
|
|
|
|
Benefit for income
taxes
|
(6.1)
|
|
|
(14.6)
|
|
(14.8)
|
|
|
(10.4)
|
|
Interest
expense
|
2.1
|
|
|
1.0
|
|
4.1
|
|
|
1.1
|
|
Earnings (Loss)
Before Interest and Taxes (EBIT) (1)
|
($14.5)
|
|
|
($37.9)
|
|
($34.8)
|
|
|
($26.7)
|
|
EBIT Margin
(1)
|
(6.5)
|
%
|
|
(13.6)
|
%
|
(7.9)
|
%
|
|
(4.0)
|
%
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
18.5
|
|
|
19.1
|
|
37.2
|
|
|
36.7
|
|
Earnings (Loss)
Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(2)
|
$4.0
|
|
|
($18.8)
|
|
$2.4
|
|
|
$10.0
|
|
EBITDA Margin
(2)
|
1.8
|
%
|
|
(6.8)%
|
|
0.5
|
%
|
|
1.5
|
%
|
|
|
|
|
|
|
|
(1) EBIT is defined
as net earnings (loss) before interest expense and income taxes.
EBIT Margin is EBIT as a percentage of net sales. EBIT and EBIT
Margin 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 and EBIT Margin is useful to investors as these
measures are representative of the Company's
performance.
|
(2) EBITDA
is defined as net earnings (loss) before interest expense, income
taxes, depreciation and amortization. EBITDA Margin is EBITDA
as a percentage of net sales. EBITDA and EBITDA Margin 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 EBITDA and EBITDA Margin is useful to investors as these
measures are representative of the Company's
performance.
|
Reconciliation of
Total Debt to Net Debt and the Ratio of Total Debt and Net Debt to
Capital:
|
This reconciliation
is provided as additional relevant information about the Company's
financial position. Capital, used for the ratio of total debt to
capital and net debt to capital, is defined as total debt plus
total equity. Management believes net debt is an important measure
of the Company's financial position due to the amount of cash and
cash equivalents.
|
(Dollars in
millions) (Unaudited)
|
|
|
|
|
June 30,
2016
|
|
December 31,
2015
|
Convertible notes,
net
|
$65.1
|
|
|
$—
|
|
Other long-term
debt
|
80.2
|
|
|
200.2
|
|
Total long-term
financing
|
145.3
|
|
|
200.2
|
|
Less: Cash and cash
equivalents
|
37.2
|
|
|
42.4
|
|
Net
Debt
|
$108.1
|
|
|
$157.8
|
|
|
|
|
|
Total
Equity
|
$683.9
|
|
|
$686.4
|
|
|
|
|
|
Ratio of Total
Debt to Capital
|
17.5
|
%
|
|
22.6
|
%
|
Ratio of Net Debt
to Capital
|
13.0
|
%
|
|
17.8
|
%
|
Reconciliation of
Free Cash Flow to GAAP Net Cash Provided by Operating
Activities:
|
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.
|
(Dollars in
millions) (Unaudited)
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
Six Months
Ended
June 30,
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
Net Cash Provided
by Operating Activities
|
$27.9
|
|
|
$47.6
|
|
|
$48.0
|
|
|
$62.2
|
|
Less: Capital
expenditures
|
(6.7)
|
|
|
(16.7)
|
|
|
(15.2)
|
|
|
(34.6)
|
|
Free Cash
Flow
|
$21.2
|
|
|
$30.9
|
|
|
$32.8
|
|
|
$27.6
|
|
Reconciliation of
Earnings (Loss) Before Interest, Taxes, Depreciation and
Amortization (EBITDA) (3) to GAAP Net
Loss:
|
This reconciliation
is provided as additional relevant information about the Company's
third quarter guidance. Management believes EBITDA is
representative of the Company's performance and therefore useful to
investors. Management also believes that it is appropriate to
compare GAAP net loss to EBITDA.
|
(Dollars in
millions) (Unaudited)
|
|
|
Three Months
Ended
September 30,
|
|
2016
|
|
2016
|
|
Low
|
|
High
|
Net loss
|
($20.0)
|
|
|
($13.0)
|
|
|
|
|
|
Benefit for income
taxes
|
(10.5)
|
|
|
(7.5)
|
|
Interest
expense
|
2.0
|
|
|
2.0
|
|
Depreciation and
amortization
|
18.5
|
|
|
18.5
|
|
Earnings (Loss)
Before Interest, Taxes, Depreciation and Amortization (EBITDA)
(3)
|
($10.0)
|
|
|
$—
|
|
|
|
|
|
(3) EBITDA
is defined as net earnings (loss) before interest expense, income
taxes, depreciation and amortization. EBITDA 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 EBITDA is useful to
investors as this measure is representative of the Company's
performance.
|
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SOURCE TimkenSteel