Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q1 FY2023 Earnings Presentation
20 slides from Carpenter Technology's earnings presentation, Nov 1, 2022
Slide 1: Carpenter Technology Corporation 1st Quarter Fiscal Year 2023 Earnings Call
Exhibit 99.1 O c t o b e r 2 7 , 202 2 CARPENTER TECHNOLOGY CORPORATION st 1 Quarter Fiscal Year 2023 Earnings Call
Slide 2: Cautionary Statement
Cautionary Statement Forward-looking statements This presentation 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 proj
Slide 3: 1st Quarter Fiscal Year 2023 - Tony Thene, President and CEO
st 1 QUARTER FISCAL YEAR 2023 Tony Thene | President and Chief Executive Officer 3
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total Case Incident Rate (TCIR) 4 3.7 3.5 3.3 3 2.5 2.2 2.1 2.0 2 1.7 1.5 1.3 1.2 1.1 1.0 1 0.6 0.5 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 YTD © 2022 CRS Holdings Inc. All rights reserved. 4
Slide 5: First Quarter Summary
First Quarter Summary • Demand conditions across end-use markets remain solid: - Strong bookings drove backlog growth of 10% sequentially and 155% year-over-year Continue to See Strong - Capturing share and price gains through contract negotiations Demand Across End-Use • SAO segment operating resul
Slide 6: First Quarter End-Use Market Highlights
First Quarter End-Use Market Highlights Q1-23 NET SALES MARKET EX. SURCHARGE % VS. Q1-22 VS. Q4-22 COMMENTS ($M)* • Global travel demand continues to improve, driven by recovery in air traffic $183.5 49% • Supply chain continues to ramp production, with high output increases targeted • Extending ind
Slide 7: Financial Overview and Business Update - Tim Lain, CFO
st 1 QUARTER FISCAL YEAR 2023 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer 7
Slide 8: Income Statement Summary
Income Statement Summary YEAR-OVER- SEQUENTIAL $ millions, except pounds and per-share amounts Q1-23 Q1-22 Q4-22 YEAR CHANGE CHANGE Pounds (‘000) 44,890 43,528 51,760 1,362 (6,870) Net Sales 522.9 387.6 563.8 135.3 (40.9) Net Sales ex. Surcharge Revenue* 375.7 312.9 403.2 62.8 (27.5) Gross Profit 54
Slide 9: SAO Segment Summary
SAO Segment Summary Q1-23 OPERATING RESULTS vs Q1-22 vs Q4-22 Q1-23 Q1-22 Q4-22 Pounds ('000) 44,562 43,008 51,626 1,554 (7,064) Net Sales ($M) 447.3 331.9 484.9 115.4 (37.6) Net Sales ex. Surcharge ($M)* 305.7 258.2 327.2 47.5 (21.5) Operating Income (Loss) ($M) 19.9 (5.9) 30.0 25.8 (10.1) Adjusted
Slide 10: PEP Segment Summary
PEP Segment Summary Q1-23 OPERATING RESULTS Q1-23 vs Q1-22 vs Q4-22 Q1-22 Q4-22 Pounds ('000)* 2,326 2,372 2,808 (46) (482) Net Sales ($M) 93.2 74.6 95.8 18.6 (2.6) Net Sales ex. Surcharge ($M)** 87.7 73.6 92.9 14.1 (5.2) Operating Income ($M) 6.3 0.6 10.3 5.7 (4.0) Adjusted Operating Income ($M)**
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Total liquidity remains healthy Q1-23 Q1-22 Q4-22 $ millions Net Income + Non-Cash Items 32 11 59 Inventory (121) (67) 30 Working Capital / Other 11 9 18 Total Net Working Capital / Other (110) (58) 48 Net Cash (Used for) Provided from Operating Activities (78) (47) 107 Purcha
Slide 12: Closing Comments - Tony Thene
st 1 QUARTER FISCAL YEAR 2023 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 12
Slide 13: First Quarter Recap
First Quarter Recap • Growing backlog, driven by strong bookings, with solid demand across end- use markets, especially in Aerospace and Medical applications • Continuing to maximize productivity across facilities, with improving margins Strong Demand Across • Addressing supply chain challenges by w
Slide 14: Well-Positioned to Achieve Q4-23 Outlook with Demand Profile and Growing Backlog
Well-Positioned to Achieve Q4-23 Outlook with Demand Profile and Growing Backlog Strong demand outlook across end-use Bookings drove backlog growth of 10% Path to deliver FY19 operating income by markets for continued growth sequentially and 155% year-over-year Q4-23 MARKET OUTLOOK Backlog Operating
Slide 15: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES 15
Slide 16: Non-GAAP Schedules: Adjusted Diluted Earnings per Share
Non-GAAP Schedules Adjusted diluted (loss) earnings per share Q1-23 Q1-22 Q4-22 $ millions, except per-share amounts Diluted (Loss) Earnings per Share ($0.14) ($0.31) $0.05 Net (Loss) Income (6.9) (14.8) 2.6 Special Items, net of tax: COVID-19 costs — 0.9 0.6 COVID-19 employee retention credits — —
Slide 17: Non-GAAP Schedules: Adjusted Operating Margin
Non-GAAP Schedules Adjusted operating margin, excluding surcharge revenue and special items $ millions Q1-23 Q1-22 Q4-22 Net sales 522.9 387.6 563.8 Less: surcharge revenue 147.2 74.7 160.6 Net sales excluding surcharge revenue 375.7 312.9 403.2 Operating income (loss) 8.3 (19.1) 24.6 Special items:
Slide 18: Non-GAAP Schedules: Adjusted Segment Operating Margin
Non-GAAP Schedules Adjusted segment operating margin, excluding surcharge revenue and special items SAO SAO SAO PEP PEP PEP $ millions Q1-23 Q1-22 Q4-22 Q1-23 Q1-22 Q4-22 Net sales 447.3 331.9 484.9 93.2 74.6 95.8 Less: surcharge revenue 141.6 73.7 157.7 5.5 1.0 2.9 Net sales excluding surcharge rev
Slide 19: Non-GAAP Schedules: Free Cash Flow
Non-GAAP Schedules Free cash flow Q1-23 Q1-22 Q4-22 $ millions Net cash (used for) provided from operating activities (78.0) (47.0) 106.9 Purchases of property, plant, equipment and software (13.5) (14.4) (32.8) Proceeds from disposals of property, plant and equipment — — 0.3 Dividends paid (9.8) (9
Slide 20: Your trusted partner in innovation
Your trusted partner in innovation. Carpenter Technology Corporation (NYSE: CRS) is a global leader in high-performance specialty alloy-based materials and process solutions for critical applications in the aerospace, defense, medical, transportation, energy, industrial and consumer electronics mark
Carpenter Technology — Q1 FY2023 Earnings Presentation on 6ix