AM Castle & — Investor Presentation (March 2013)
23 slides from AM Castle &'s investor presentation, March 2013
Slide 1: A. M. Castle & Co.
A. M. Castle & Co. ® March 2013 NYSE: CAS A.M. Castle & Co.
Slide 2: Forward Looking Statements
Forward Looking Statements ® Information provided and statements contained in this presentation that are not purely historical are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended (“Securities Act”), Section 21E of the Securities Exchange Act of
Slide 3: Regulation G & Other Cautionary Notes
Regulation G & Other Cautionary Notes ® This presentation includes non-GAAP financial measures to assist the reader in understanding our business. The non-GAAP financial information should be considered supplemental to, and not as a substitute for, or superior to, financial measures calculated in ac
Slide 4: Overview
Overview ® Specialty Products, Specialty Services, Customized Supply Chain Solutions One of the largest metal service center companies based in the U.S. with $1.3 billion in 2012 annual net sales Strong exposure to high-growth end- markets including Oil & Gas, Mining and Heavy Equipment, Aerospace a
Slide 5: Organizational Objectives
Organizational Objectives ® Customer Centric Nimble Business More focused Faster than ever on and easier the customer to do business with Highly Competitive Engaged Employees Highly Earn a reputation competitive for employees in our end who share ideas, markets best practices and process improvement
Slide 6: Financial and Operating Targets
Financial and Operating Targets ® Lower Operating On-Time Delivery Lower Days Sales in Higher Expenses Inventory Operating Profits 20% operating Continue to improve <150 days by 2013 10% operating expenses* by 2014 on-time delivery 120 days by 2014 profit in normal (*percentage of sales) market cond
Slide 7: Our Plans for Growth | Overview
Our Plans for Growth | Overview ® • Reinforce sales focus in targeted end-markets to drive revenue growth Market Focus • Realign our supply chain and procurement functions to enhance purchasing leverage and deliver customer solutions • Realign our facility footprint to improve on-time delivery Opera
Slide 8: Our Plans for Growth | Goals and Actions
Our Plans for Growth | Goals and Actions ® Goals Action Steps IMPACT Vertical • Replace Commercial Units with sales teams Untether sales team, bring sales teams focused on our three end markets – Aerospace, sales team closer to customer, Industrial, and Oil & Gas operations better coordinated • Impl
Slide 9: New Vertical Sales and Support Structure
New Vertical Sales and Support Structure ® Vertical sales teams and consolidated support functions to drive better service to customers, greater flexibility and improved coordination. Aerospace Oil & Gas Industrial Centralized Sales Support and Strategic Sourcing Team A.M. Castle & Co. 9
Slide 10: Profit Improvement Goal February Update
Profit Improvement Goal February Update ® $33 million of identified run-rate improvements to be implemented in 2013. Branch • Plan to consolidate five branches into existing February Update $10M realignment network in 1H 2013 • Consolidate selected operations functions • Initial improvement estimate
Slide 11: Broad Geographic Footprint
Broad Geographic Footprint ® MB NL BC AB SK China ON QC WA ND MT NB PE MN ME NS SD WI VT OR ID WY MI NY NH IA NE MA IL PA IN OH RI NV UT CO CT Singapore KS MO WV NJ KY VA CA DE OK TN NC AR MD AZ NM SC MS AL GA TX LA Gulf of FL California United Kingdom Corporate Headquarters Castle Metals Castle Met
Slide 12: Suppliers
Suppliers ® Stable supplier base values A. M. Castle as a key customer and provides access to specialty metals Product Category Supplier Aluminum Kaiser Aluminum and Alcoa Alloy Timken, Tenaris and Republic Nickel & Stainless Allegheny and Special Metals Carbon ArcelorMittal, Ipsco & Gerdau Titanium
Slide 13: Blue Chip Customer Base
Blue Chip Customer Base ® Serving a Broad Range of Diverse Customers A.M. Castle & Co. 13
Slide 14: Financial Overview
® Financial Overview A.M. Castle & Co. 14
Slide 15: Quarterly Net Sales Trend
Quarterly Net Sales Trend (Net Sales $ in millions) ® Source: Management uses the Purchaser’s Managers Index (“PMI”) provided by the Institute of Supply Management. A.M. Castle & Co. 15
Slide 16: Annual and YTD Financial Business Trends As Reported
Annual and YTD Financial Business Trends As Reported ($ in millions, except EPS) ® Net Sales EBITDA EPS Operating Income (Loss) A.M. Castle & Co. 16
Slide 17: Quarterly Financial Business Trends As Reported
Quarterly Financial Business Trends As Reported ($ in millions, except EPS) ® Net Sales EBITDA EPS Operating Income (Loss) $0.35 $0.25 $0.12 $0.16 $0.16 $0.15 $0.13 $0.05 -$0.05 -$0.15 $(0.13) -$0.25 $(0.19) -$0.35 $(0.24) -$0.45 -$0.55 $(0.52) 1Q'11 2Q'11 3Q'11 4Q'11 1Q'12 2Q'12 3Q'12 4Q'12 A.M. Ca
Slide 18: Quarterly Financial Business Trends As Adjusted
Quarterly Financial Business Trends As Adjusted1 ($ in millions, except EPS) ® Net Sales EBITDA EPS Operating Income (Loss) $0.35 $20 $18 $0.29 $0.25 $0.21 $0.12 $0.16 $0.15 $0.11 $0.10 $15 $0.05 $0.05 $11 $11 -$0.05 $10 -$0.15 -$0.25 $5 $(0.24) $5 $4 -$0.35 $2 -$0.45 $1 $- -$0.55 $0 1Q'11 2Q'11 3Q'
Slide 19: Liquidity and Balance Sheet
Liquidity and Balance Sheet ® SELECTED CONSOLIDATED RESULTS ($ are in Millions, except per share and Days) Year Ended December 31, Unaudited 2011 2012 Cash From (Used in) Operations $ (46.3) $ 5.4 Cash Paid for CapEx $ 11.7 $ 11.1 Avg Days Sales in Inventory 128 187 Avg Receivables Days Outstanding
Slide 20: Appendix
® APPENDIX A.M. Castle & Co. 20
Slide 21: SEC Regulation G Non-GAAP Reconciliation
SEC Regulation G Non-GAAP Reconciliation ® Reconciliation of 2012 Adjusted Net (Loss) Income to For the For the Reported Net Loss for the Period Ended December 31 Three Three ($ are in thousands, except per share data) Months Months Unaudited Ended 2012 Ended 2011 Net Loss, as reported $ (5.6) $ (12
Slide 22: Non-GAAP Reconciliation
Non-GAAP Reconciliation ® For the Three For the Twelve Twelve Reconciliation of Adjusted EBITDA to Net Loss Months Ended Months Ended Months December 31, December 31, ($ are in thousands, except per share data) Unaudited 2012 2011 2012 2011 2010 Net Loss $ (5.6) $ (12.0) $ (9.7) $ (1.8) $ (5.6) Depr
Slide 23: Thank You
Thank You ® NYSE: CAS A.M. Castle & Co.