Carpenter Technology Corporation (NYSE: CRS) (the “Company”) today
announced financial results for the fiscal first quarter ended
September 30, 2020. For the quarter, the Company reported a net
loss of $47.1 million, or $0.98 loss per diluted share. Excluding
special items, adjusted loss per diluted share was $0.58 for the
quarter.
“During the first quarter, we further strengthened
our liquidity position through solid operating and free cash flow
generation,” said Tony R. Thene, President and CEO of Carpenter
Technology. “While our targeted inventory reduction efforts
impacted profitability, we believe managing for cash flow in the
current environment is prudent and helped us finish the first
quarter with over $600 million in total liquidity. As anticipated,
our operating results in the quarter were also impacted by lower
volume due to challenging conditions in the Aerospace and Defense
and Medical end-use markets that continue to be pressured as a
result of COVID-19. Our facilities remain operational which speaks
to the dedication of all of our employees as well as the benefits
of our safety-driven culture and enhanced protocols.”
“Looking ahead, the headwinds from COVID-19 will
continue to impact demand levels across our key end-use markets in
our upcoming second quarter and we will remain in constant contact
with our customers to address their evolving material requirements.
Despite the near-term challenges related to COVID-19, the long-term
outlook for our end-use markets is solid and we will continue
working closely with our customers to strengthen our established
supply chain position and extend key strategic supply agreements.
We remain a critical solutions provider to customers and are
developing stronger relationships as we work together to navigate
the current environment. We remain confident that a recovery in
demand conditions across our key end-use markets will begin to take
shape in our third quarter of fiscal year 2021.”
“Our liquidity position is strong as a result of
the actions we have taken since the onset of the pandemic and we
will continue to maintain a disciplined approach to reducing costs
and increasing cash generation. While we continue to actively
manage our business given the current challenges, we are also
maintaining a focus on the future and further advancing our
position in critical emerging technologies. We recently launched
our Carpenter Electrification brand and see a number of attractive
growth opportunities for our proprietary soft magnetics solutions
across all of our key end-use markets. We believe our soft
magnetics and additive manufacturing solutions are pivotal to
addressing the future of our industry and best positioning
Carpenter Technology for sustainable growth over the
long-term.”
Financial Highlights
($ in
millions) |
Q1 |
|
Q1 |
|
Q4 |
|
FY2021 |
|
FY2020 |
|
FY2020 |
Net Sales |
$ |
353.3 |
|
$ |
585.4 |
|
$ |
437.3 |
|
Net Sales
Excluding Surcharge Revenue (a) |
$ |
307.2 |
|
$ |
486.6 |
|
$ |
375.9 |
|
Operating
(Loss) Income |
$ |
(48.8) |
|
$ |
59.8 |
|
$ |
(148.2) |
|
Adjusted
Operating (Loss) Income Excluding Special Items (a) |
$ |
(30.9) |
|
$ |
59.8 |
|
$ |
(18.1) |
|
Net (Loss)
Income |
$ |
(47.1) |
|
$ |
41.2 |
|
$ |
(118.4) |
|
Cash
Provided from Operating Activities |
$ |
88.0 |
|
$ |
0.7 |
|
$ |
136.9 |
|
Free Cash
Flow (a) |
$ |
62.6 |
|
$ |
(56.4) |
|
$ |
99.8 |
|
|
|
|
|
|
|
|
(a) Non-GAAP financial measures explained in the attached
tables |
Net sales for the first quarter of fiscal year
2021 were $353.3 million compared with $585.4 million in the first
quarter of fiscal year 2020, a decrease of $232.1 million (40
percent), on 29 percent lower volume. Net sales excluding surcharge
were $307.2 million, a decrease of $179.4 million (37 percent) from
the same period a year ago.
Operating loss was $48.8 million compared to
operating income of $59.8 million in the prior year period.
Adjusted operating loss excluding special items was $30.9 million
in the recent first quarter. Special items excluded from adjusted
operating loss in the current quarter include restructuring and
asset impairment charges totaling $10.0 million primarily
associated with recent portfolio actions in the Company’s Additive
business unit and $7.9 million of costs associated with COVID-19.
These costs principally include direct incremental operating costs
including outside services to execute enhanced cleaning protocols,
additional personal protective equipment, isolation pay for
production employees potentially exposed to COVID-19 and various
operating supplies necessary to maintain the operations while
keeping employees safe against possible exposure to COVID-19 in the
Company’s facilities. The COVID-19 costs in the current quarter
also include $3.1 million related to costs associated with an
aerospace customer bankruptcy as a result of COVID-19.
Cash provided from operating activities in the
first quarter of fiscal year 2021 was $88.0 million, compared to
$0.7 million in the same quarter last year. Free cash flow in the
first quarter of fiscal year 2021 was positive $62.6 million,
compared to negative $56.4 million in the same quarter last
year. The increases in operating cash flow and free cash flow
primarily reflect the impact of inventory reduction in the current
quarter partially offset by lower earnings relative to the same
quarter a year ago. In addition, capital expenditures were $33.3
million in the first quarter of fiscal year 2021 compared to $47.5
million in the same quarter last year. The Company also completed
the divestiture of its Amega West oil and gas business, which
resulted in $17.6 million of proceeds in the current quarter’s cash
flow results.
In addition to the cash generated from operations,
the Company’s liquidity was further enhanced by the bond
refinancing completed in the first quarter of fiscal year 2021. The
Company issued $400.0 million of senior unsecured notes and used
the net proceeds from the offering to repay in full $250.0 million
of its 5.200% senior notes due July 2021 with the remaining
proceeds available for general corporate purposes. Total liquidity,
including cash and available credit facility borrowings, was $612.9
million at the end of the first quarter of fiscal year 2021. This
consisted of $218.9 million of cash and $394.0 million of available
borrowings under the Company’s credit facility.
Conference Call and Webcast
Presentation
Carpenter Technology will host a conference call
and webcast presentation today, October 22nd at 10:00 a.m. ET, to
discuss the financial results of operations for the first quarter
of fiscal year 2021. Please dial +1 412-317-9259 for access to the
live conference call. Access to the live webcast will be available
at Carpenter Technology’s website
(http://www.carpentertechnology.com), and a replay will soon be
made available at http://www.carpentertechnology.com. Presentation
materials used during this conference call will be available for
viewing and download at http://www.carpentertechnology.com.
Non-GAAP Financial Measures
This press release includes discussions of
financial measures that have not been determined in accordance with
U.S. Generally Accepted Accounting Principles (GAAP). A
reconciliation of the non-GAAP financial measures to their most
directly comparable financial measures prepared in accordance with
GAAP, accompanied by reasons why the Company believes the non-GAAP
measures are important, are included in the attached schedules.
About Carpenter Technology
Carpenter Technology Corporation is a recognized
leader in high-performance specialty alloy-based materials and
process solutions for critical applications in the aerospace,
defense, transportation, medical, energy, industrial, and consumer
electronics markets. Founded in 1889, Carpenter Technology has
evolved to become a pioneer in premium specialty alloys, including
titanium, nickel, and cobalt, as well as alloys specifically
engineered for additive manufacturing (AM) processes and soft
magnetics applications. Carpenter Technology has expanded its AM
capabilities to provide a complete “end-to-end” solution to
accelerate materials innovation and streamline parts production.
More information about Carpenter Technology can be found at
www.carpentertechnology.com.
Forward-Looking Statements
This press release contains forward-looking
statements within the meaning of the Private Securities Litigation
Act of 1995. These forward-looking statements are subject to risks
and uncertainties that could cause actual results to differ from
those projected, anticipated or implied. The most significant of
these uncertainties are described in Carpenter Technology’s filings
with the Securities and Exchange Commission, including its report
on Form 10-K for the year ended June 30, 2020 and the exhibits
attached to that filing. They include but are not limited to: (1)
the cyclical nature of the specialty materials business and certain
end-use markets, including aerospace, defense, medical,
transportation, energy, industrial and consumer, or other
influences on Carpenter Technology’s business such as new
competitors, the consolidation of competitors, customers, and
suppliers or the transfer of manufacturing capacity from the United
States to foreign countries; (2) the ability of Carpenter
Technology to achieve cash generation, growth, earnings,
profitability, operating income, cost savings and reductions,
qualifications, productivity improvements or process changes; (3)
the ability to recoup increases in the cost of energy, raw
materials, freight or other factors; (4) domestic and foreign
excess manufacturing capacity for certain metals; (5) fluctuations
in currency exchange rates; (6) the effect of government trade
actions; (7) the valuation of the assets and liabilities in
Carpenter Technology’s pension trusts and the accounting for
pension plans; (8) possible labor disputes or work stoppages; (9)
the potential that our customers may substitute alternate materials
or adopt different manufacturing practices that replace or limit
the suitability of our products; (10) the ability to successfully
acquire and integrate acquisitions; (11) the availability of credit
facilities to Carpenter Technology, its customers or other members
of the supply chain; (12) the ability to obtain energy or raw
materials, especially from suppliers located in countries that may
be subject to unstable political or economic conditions; (13)
Carpenter Technology’s manufacturing processes are dependent upon
highly specialized equipment located primarily in facilities in
Reading and Latrobe, Pennsylvania and Athens, Alabama for which
there may be limited alternatives if there are significant
equipment failures or a catastrophic event; (14) the ability to
hire and retain key personnel, including members of the executive
management team, management, metallurgists and other skilled
personnel; (15) fluctuations in oil and gas prices and production;
(16) uncertainty regarding the return to service of the Boeing 737
MAX aircraft and the related supply chain disruption; (17)
potential impacts of the COVID-19 pandemic on our operations,
financial results and financial position; (18) our efforts and
efforts by governmental authorities to mitigate the COVID-19
pandemic, such as travel bans, shelter in place orders and business
closures, and the related impact on resource allocations and
manufacturing and supply chains; (19) our status as a “critical”,
“essential” or “life-sustaining” business in light of COVID-19
business closure laws, orders and guidance being challenged by a
governmental body or other applicable authority; (20) our ability
to execute our business continuity, operational, budget and fiscal
plans in light of the COVID-19 pandemic; and (21) our ability to
successfully carry out restructuring and business exit activities
on the expected terms and timelines. Any of these factors could
have an adverse and/or fluctuating effect on Carpenter Technology’s
results of operations. The forward-looking statements in this
document are intended to be subject to the safe harbor protection
provided by Section 27A of the Securities Act of 1933, as amended
(the “Securities Act”), and Section 21E of the Securities Exchange
Act of 1934, as amended. Carpenter Technology undertakes no
obligation to update or revise any forward-looking statements.
PRELIMINARY CONSOLIDATED
STATEMENTS OF OPERATIONS (in millions, except per share
data) (Unaudited)
|
Three Months Ended |
|
September 30, |
|
2020 |
|
2019 |
|
|
|
|
NET SALES |
$ |
353.3 |
|
|
$ |
585.4 |
|
Cost of sales |
349.8 |
|
|
472.8 |
|
Gross profit |
3.5 |
|
|
112.6 |
|
|
|
|
|
Selling, general and administrative expenses |
42.3 |
|
|
52.8 |
|
Restructuring and asset impairment charges |
10.0 |
|
|
— |
|
Operating (loss) income |
(48.8 |
) |
|
59.8 |
|
|
|
|
|
Interest expense, net |
(14.9 |
) |
|
(5.4 |
) |
Other expense, net |
(2.3 |
) |
|
(0.3 |
) |
|
|
|
|
(Loss) income before income taxes |
(66.0 |
) |
|
54.1 |
|
Income tax (benefit) expense |
(18.9 |
) |
|
12.9 |
|
|
|
|
|
NET (LOSS) INCOME |
$ |
(47.1 |
) |
|
$ |
41.2 |
|
|
|
|
|
(LOSS) EARNINGS PER COMMON SHARE: |
|
|
|
Basic |
$ |
(0.98 |
) |
|
$ |
0.85 |
|
Diluted |
$ |
(0.98 |
) |
|
$ |
0.85 |
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES OUTSTANDING: |
|
|
|
Basic |
48.3 |
|
|
47.9 |
|
Diluted |
48.3 |
|
|
48.3 |
|
PRELIMINARY CONSOLIDATED
STATEMENTS OF CASH FLOWS (in millions) (Unaudited)
|
Three Months Ended |
|
September 30, |
|
2020 |
|
2019 |
OPERATING ACTIVITIES |
|
|
|
Net (loss) income |
$ |
(47.1 |
) |
|
$ |
41.2 |
|
Adjustments to reconcile net (loss) income to net cash provided
from operating activities: |
|
|
|
Loss on debt prepayment |
8.2 |
|
|
— |
|
Depreciation and amortization |
30.9 |
|
|
30.6 |
|
Non-cash restructuring and asset impairment charges |
8.7 |
|
|
— |
|
Deferred income taxes |
(3.9 |
) |
|
3.5 |
|
Net pension expense |
4.1 |
|
|
3.8 |
|
Share-based compensation expense |
2.7 |
|
|
4.1 |
|
Net loss on disposals of property, plant and equipment |
0.1 |
|
|
— |
|
Changes in working capital and other: |
|
|
|
Accounts receivable |
42.0 |
|
|
(2.1 |
) |
Inventories |
84.9 |
|
|
(51.1 |
) |
Other current assets |
(23.0 |
) |
|
(10.1 |
) |
Accounts payable |
(7.4 |
) |
|
18.0 |
|
Accrued liabilities |
(8.0 |
) |
|
(30.8 |
) |
Pension plan contributions |
(2.9 |
) |
|
(2.4 |
) |
Other postretirement plan contributions |
(0.6 |
) |
|
(0.9 |
) |
Other, net |
(0.7 |
) |
|
(3.1 |
) |
Net cash provided from operating activities |
88.0 |
|
|
0.7 |
|
INVESTING ACTIVITIES |
|
|
|
Purchases of property, plant, equipment and software |
(33.3 |
) |
|
(47.5 |
) |
Proceeds from disposals of property, plant and equipment |
— |
|
|
0.1 |
|
Proceeds from divestiture of business |
17.6 |
|
|
— |
|
Net cash used for investing activities |
(15.7 |
) |
|
(47.4 |
) |
FINANCING ACTIVITIES |
|
|
|
Credit agreement borrowings |
— |
|
|
88.1 |
|
Credit agreement repayments |
— |
|
|
(38.1 |
) |
Net change in short-term credit agreement borrowings |
(170.0 |
) |
|
7.9 |
|
Proceeds from issuance of long-term debt, net of offering
costs |
395.5 |
|
|
— |
|
Payments on long-term debt |
(250.0 |
) |
|
— |
|
Payments for debt prepayment costs, net |
(8.2 |
) |
|
— |
|
Payments for debt issue costs |
(1.1 |
) |
|
— |
|
Dividends paid |
(9.7 |
) |
|
(9.7 |
) |
Proceeds from stock options exercised |
— |
|
|
2.6 |
|
Withholding tax payments on share-based compensation awards |
(2.2 |
) |
|
(7.5 |
) |
Net cash (used for) provided from financing activities |
(45.7 |
) |
|
43.3 |
|
Effect of exchange rate changes on cash and cash equivalents |
(0.8 |
) |
|
1.0 |
|
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS |
25.8 |
|
|
(2.4 |
) |
Cash and cash equivalents at beginning of period |
193.1 |
|
|
27.0 |
|
Cash and cash equivalents at end of period |
$ |
218.9 |
|
|
$ |
24.6 |
|
PRELIMINARY CONSOLIDATED
BALANCE SHEETS (in millions) (Unaudited)
|
September 30, |
|
June 30, |
|
2020 |
|
2020 |
ASSETS |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
218.9 |
|
|
$ |
193.1 |
|
Accounts receivable, net |
250.5 |
|
|
292.3 |
|
Inventories |
633.9 |
|
|
724.3 |
|
Other current assets |
84.6 |
|
|
56.6 |
|
Total current assets |
1,187.9 |
|
|
1,266.3 |
|
Property, plant and equipment, net |
1,334.1 |
|
|
1,351.1 |
|
Goodwill |
292.3 |
|
|
290.4 |
|
Other intangibles, net |
46.5 |
|
|
52.1 |
|
Deferred income taxes |
4.7 |
|
|
4.9 |
|
Other assets |
263.2 |
|
|
262.4 |
|
Total assets |
$ |
3,128.7 |
|
|
$ |
3,227.2 |
|
|
|
|
|
LIABILITIES |
|
|
|
Current liabilities: |
|
|
|
Short-term credit agreement borrowings |
$ |
— |
|
|
$ |
170.0 |
|
Accounts payable |
114.2 |
|
|
124.2 |
|
Accrued liabilities |
150.3 |
|
|
157.9 |
|
Total current liabilities |
264.5 |
|
|
452.1 |
|
Long-term debt |
693.8 |
|
|
551.8 |
|
Accrued pension liabilities |
386.4 |
|
|
399.5 |
|
Accrued postretirement benefits |
137.7 |
|
|
137.4 |
|
Deferred income taxes |
130.7 |
|
|
130.2 |
|
Other liabilities |
108.1 |
|
|
110.5 |
|
Total liabilities |
1,721.2 |
|
|
1,781.5 |
|
|
|
|
|
STOCKHOLDERS’ EQUITY |
|
|
|
Common stock |
280.1 |
|
|
280.1 |
|
Capital in excess of par value |
315.9 |
|
|
321.4 |
|
Reinvested earnings |
1,511.2 |
|
|
1,568.0 |
|
Common stock in treasury, at cost |
(319.3 |
) |
|
(325.8 |
) |
Accumulated other comprehensive loss |
(380.4 |
) |
|
(398.0 |
) |
Total stockholders' equity |
1,407.5 |
|
|
1,445.7 |
|
Total liabilities and stockholders' equity |
$ |
3,128.7 |
|
|
$ |
3,227.2 |
|
PRELIMINARY SEGMENT
FINANCIAL DATA (in millions, except pounds sold)
(Unaudited)
|
Three Months Ended |
|
September 30, |
|
2020 |
|
2019 |
Pounds sold (000): |
|
|
|
Specialty Alloys Operations |
43,368 |
|
|
60,044 |
|
Performance Engineered Products |
1,466 |
|
|
3,250 |
|
Intersegment |
(486 |
) |
|
(996 |
) |
Consolidated pounds sold |
44,348 |
|
|
62,298 |
|
|
|
|
|
Net sales: |
|
|
|
Specialty Alloys Operations |
|
|
|
Net sales excluding surcharge |
$ |
254.8 |
|
|
$ |
393.2 |
|
Surcharge |
45.9 |
|
|
97.9 |
|
Specialty Alloys Operations net sales |
300.7 |
|
|
491.1 |
|
|
|
|
|
Performance Engineered Products |
|
|
|
Net sales excluding surcharge |
61.2 |
|
|
107.9 |
|
Surcharge |
0.6 |
|
|
1.5 |
|
Performance Engineered Products net sales |
61.8 |
|
|
109.4 |
|
|
|
|
|
Intersegment |
|
|
|
Net sales excluding surcharge |
(8.8 |
) |
|
(14.5 |
) |
Surcharge |
(0.4 |
) |
|
(0.6 |
) |
Intersegment net sales |
(9.2 |
) |
|
(15.1 |
) |
|
|
|
|
Consolidated net sales |
$ |
353.3 |
|
|
$ |
585.4 |
|
|
|
|
|
Operating (Loss) Income: |
|
|
|
Specialty Alloys Operations |
$ |
(18.6 |
) |
|
$ |
81.0 |
|
Performance Engineered Products |
(3.6 |
) |
|
(2.0 |
) |
Corporate (including restructuring and asset impairment
charges) |
(26.6 |
) |
|
(19.1 |
) |
Intersegment |
— |
|
|
(0.1 |
) |
Consolidated (loss) operating income |
$ |
(48.8 |
) |
|
$ |
59.8 |
|
The Company has two reportable segments, Specialty
Alloys Operations (“SAO”) and Performance Engineered Products
(“PEP”).
The SAO segment is comprised of Carpenter’s major
premium alloy and stainless steel manufacturing operations. This
includes operations performed at mills primarily in Reading and
Latrobe, Pennsylvania and surrounding areas as well as South
Carolina and Alabama.
The PEP segment is comprised of the Company’s
differentiated operations. This segment includes the Dynamet
titanium business, the Carpenter Additive (“Additive”) business and
the Latrobe and Mexico distribution businesses. Effective July 1,
2020, the Company's Carpenter Powder Products business was merged
into the Additive business. The Amega West business was also part
of the PEP segment however was sold during the quarter ended
September 30, 2020. The businesses in the PEP segment are
managed with an entrepreneurial structure to promote flexibility
and agility to quickly respond to market dynamics. It is our belief
this model will ultimately drive overall revenue and profit growth.
The pounds sold data above for the PEP segment includes only the
Dynamet and Additive businesses.
Corporate costs are comprised of executive and
director compensation, and other corporate facilities and
administrative expenses not allocated to the segments. Also
included are items that management considers not representative of
ongoing operations and other specifically-identified income or
expense items.
The service cost component of net pension expense,
which represents the estimated cost of future pension liabilities
earned associated with active employees, is included in the
operating results of the business segments. The residual net
pension expense is comprised of the expected return on plan assets,
interest costs on the projected benefit obligations of the plans,
and amortization of actuarial gains and losses and prior service
costs and is included in other income (expense), net.
PRELIMINARY NON-GAAP
FINANCIAL MEASURES (in millions, except per share data)
(Unaudited)
|
|
|
|
|
Three Months Ended |
|
September 30, |
ADJUSTED OPERATING MARGIN EXCLUDING SURCHARGE REVENUE AND SPECIAL
ITEMS |
2020 |
|
2019 |
|
|
|
|
Net sales |
$ |
353.3 |
|
|
|
$ |
585.4 |
|
Less: surcharge revenue |
$ |
46.1 |
|
|
|
98.8 |
|
Net sales excluding surcharge revenue |
$ |
307.2 |
|
|
|
$ |
486.6 |
|
|
|
|
|
Operating (loss) income |
$ |
(48.8 |
) |
|
|
$ |
59.8 |
|
Special items: |
|
|
|
Restructuring and asset impairment charges |
10.0 |
|
|
|
— |
|
COVID-19 costs |
7.9 |
|
|
|
— |
|
Operating (loss) income |
$ |
(30.9 |
) |
|
|
$ |
59.8 |
|
|
|
|
|
Operating margin |
(13.8 |
) |
% |
|
10.2 |
% |
|
|
|
|
Adjusted operating margin excluding surcharge revenue and special
items |
(10.1 |
) |
% |
|
12.3 |
% |
Management believes that removing the impact of
raw material surcharge from operating margin provides a more
consistent basis for comparing results of operations from period to
period, thereby permitting management to evaluate performance and
investors to make decisions based on the ongoing operations of the
Company. In addition, management believes that excluding special
items from operating margin is helpful in analyzing our operating
performance, as these items are not indicative of ongoing operating
performance. Management uses its results excluding these amounts to
evaluate its operating performance and to discuss its business with
investment institutions, the Company’s board of directors and
others.
ADJUSTED LOSS PER SHARE EXCLUDING SPECIAL ITEMS |
|
Loss Before Income Taxes |
|
Income Tax Benefit (Expense) |
|
Net (Loss) Income |
|
(Loss) Per Diluted Share* |
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2020, as reported |
|
$ |
(66.0 |
) |
|
$ |
18.9 |
|
|
$ |
(47.1 |
) |
|
$ |
(0.98 |
) |
|
|
|
|
|
|
|
|
|
Special items: |
|
|
|
|
|
|
|
|
Debt prepayment costs, net |
|
8.2 |
|
|
(2.0 |
) |
|
6.2 |
|
|
0.13 |
|
Restructuring and asset impairment charges |
|
10.0 |
|
|
(2.4 |
) |
|
7.6 |
|
|
0.16 |
|
COVID-19 costs |
|
7.9 |
|
|
(2.6 |
) |
|
5.3 |
|
|
0.11 |
|
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2020, as adjusted |
|
$ |
(39.9 |
) |
|
$ |
11.9 |
|
|
$ |
(28.0 |
) |
|
$ |
(0.58 |
) |
|
|
|
|
|
|
|
|
|
* Impact per diluted share calculated using weighted average common
shares outstanding of 48.3 million for the three months ended
September 30, 2020. |
ADJUSTED EARNINGS PER SHARE EXCLUDING SPECIAL ITEMS |
|
Income Before Income Taxes |
|
Income Tax Expense |
|
Net Income |
|
Earnings Per Diluted Share* |
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2019, as reported |
|
$ |
54.1 |
|
$ |
(12.9 |
) |
|
$ |
41.2 |
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
Special item: |
|
|
|
|
|
|
|
|
None reported |
|
— |
|
— |
|
|
— |
|
— |
|
|
|
|
|
|
|
|
|
Three months ended September 30, 2019, as adjusted |
|
$ |
54.1 |
|
$ |
(12.9 |
) |
|
$ |
41.2 |
|
$ |
0.85 |
|
|
|
|
|
|
|
|
|
* Impact per diluted share calculated using weighted average common
shares outstanding of 48.3 million for the three months ended
September 30, 2019. |
Management believes that (loss) earnings per share
adjusted to exclude the impact of the special items is helpful in
analyzing the operating performance of the Company, as these items
are not indicative of ongoing operating performance. Management
uses its results excluding these amounts to evaluate its operating
performance and to discuss its business with investment
institutions, the Company’s board of directors and others.
|
Three Months Ended |
|
September 30, |
FREE CASH FLOW |
2020 |
|
2019 |
|
|
|
|
Net cash provided from operating activities |
$ |
88.0 |
|
|
$ |
0.7 |
|
Purchases of property, plant, equipment and software |
(33.3 |
) |
|
(47.5 |
) |
Proceeds from disposals of property, plant and equipment |
— |
|
|
0.1 |
|
Proceeds from divestiture of business |
17.6 |
|
|
— |
|
Dividends paid |
(9.7 |
) |
|
(9.7 |
) |
|
|
|
|
Free cash flow |
$ |
62.6 |
|
|
$ |
(56.4 |
) |
Management believes that the free cash flow
measure provides useful information to investors regarding our
financial condition because it is a measure of cash generated which
management evaluates for alternative uses.
PRELIMINARY SUPPLEMENTAL
SCHEDULE (in millions) (Unaudited)
|
Three Months Ended |
|
September 30, |
NET SALES BY END-USE MARKET |
2020 |
|
2019 |
End-Use Market Excluding Surcharge Revenue: |
|
|
|
Aerospace and Defense |
$ |
147.5 |
|
$ |
286.1 |
Medical |
30.0 |
|
44.0 |
Transportation |
24.5 |
|
33.0 |
Energy |
21.3 |
|
33.0 |
Industrial and Consumer |
63.1 |
|
60.2 |
Distribution |
20.8 |
|
30.3 |
|
|
|
|
Total net sales excluding surcharge revenue |
307.2 |
|
486.6 |
|
|
|
|
Surcharge revenue |
46.1 |
|
98.8 |
|
|
|
|
Total net sales |
$ |
353.3 |
|
$ |
585.4 |
Media
Inquiries: |
Investor
Inquiries: |
Heather Beardsley |
The Plunkett Group |
+1 610-208-2278 |
Brad Edwards |
hbeardsley@cartech.com |
+1 212-739-6740 |
|
brad@theplunkettgroup.com |
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