Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q3 FY2022 Earnings Presentation
19 slides from Carpenter Technology's earnings presentation, Apr 29, 2022
Slide 1: Third Quarter Fiscal Year 2022 Earnings Call
Exhibit 99.1 A p r i l 2 8 , 202 2 CARPENTER TECHNOLOGY CORPORATION rd 3 Quarter Fiscal Year 2022 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: Third Quarter Fiscal Year 2022 - Tony Thene
rd 3 QUARTER FISCAL YEAR 2022 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 1.5 1.3 1.2 1.1 1.0 1 0.6 0.5 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 YTD © 2022 CRS Holdings Inc. All rights reserved. 4
Slide 5: Third Quarter Summary
Third Quarter Summary • Strong demand across end-use markets: - Backlog up 34% sequentially and 164% year-over-year - Bookings up 21% sequentially and 119% year-over-year - Increased base prices 12-15% on transactional business; continue to Exceeded Expectations with capture share & price gain throu
Slide 6: Third Quarter End-Use Market Highlights
Third Quarter End-Use Market Highlights Q3-22 NET SALES MARKET EX. SURCHARGE % VS. Q3-21 VS. Q2-22 COMMENTS ($M)* • Global travel demand continues to improve with increases to single-aisle requirements • Supply chain continues to ramp production and deal with disruptions $152.2 41% • Significant ord
Slide 7: Financial Overview and Business Update - Tim Lain
rd 3 QUARTER FISCAL YEAR 2022 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer 7
Slide 8: Income Statement Summary
Income Statement Summary Performance reflects strengthening demand environment YEAR-OVER- SEQUENTIAL $ millions, except pounds and per-share amounts Q3-22 Q3-21 Q2-22 YEAR CHANGE CHANGE Pounds (‘000) 49,740 37,770 43,082 11,970 6,658 Net Sales 489.0 351.9 396.0 137.1 93.0 Net Sales ex. Surcharge Rev
Slide 9: SAO Segment Summary
SAO Segment Summary Q3 OPERATING RESULTS Q3-22 Q3-21 Q2-22 vs Q3-21 vs Q2-22 Pounds ('000) 49,872 37,260 43,248 12,612 6,624 Net Sales ($M) 418.0 299.6 330.8 118.4 87.2 Sales ex. Surcharge ($M) 300.0 246.5 251.6 53.5 48.4 Operating Income(Loss) ($M) 5.8 (9.9) (20.3) 15.7 26.1 % of Net Sales 1.4% -3.
Slide 10: PEP Segment Summary
PEP Segment Summary Q3 OPERATING RESULTS Q3-22 Q3-21 Q2-22 vs Q3-21 vs Q2-22 Pounds* ('000) 2,706 2,026 2,776 680 (70) Net Sales ($M) 88.4 65.7 85.7 22.7 2.7 Sales ex. Surcharge ($M) 86.4 64.9 83.8 21.5 2.6 Operating Income (Loss) ($M) 4.2 (3.3) 3.0 7.5 1.2 % of Net Sales 4.8% -5.0% 3.5% 9.8% 1.3% %
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Total liquidity remains healthy 9 MOS 9 MOS Q1-22 Q2-22 Q3-22 FY22 FY21 $ millions Net Income (Loss) + Non-Cash Items 11 (5) 21 27 5 Inventory (67) (43) 8 (101) 182 Working Capital / Other 9 (41) 6 (27) (1) Total Net Working Capital / Other (58) (84) 14 (128) 181 Pension Plan
Slide 12: Closing Comments - Tony Thene
rd 3 QUARTER FISCAL YEAR 2022 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 12
Slide 13: Strong market demand outlook for continued growth over medium and long-term
Strong market demand outlook for continued growth over medium and long-term MARKET NEAR- TO MEDIUM-TERM LONGER TERM Global travel demand continues to improve, accelerating build rates and Demand will exceed pre-COVID-19 levels, where capacity was already demand for material constrained AEROSPACE Cri
Slide 14: Positioned For Growth With Strong Demand Across End-Use Markets
Positioned For Growth With Strong Demand Across End-Use Markets • Continue to see demand increase across end-use markets with strong, long-term outlook • Capturing price and share gains through contract renewals; increased Focused Operational prices on our transactional business Excellence to Meet S
Slide 15: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES 15
Slide 16: Non-GAAP Schedules: Adjusted diluted loss per share
Non-GAAP Schedules Adjusted diluted loss per share Q3-22 Q3-21 Q2-22 $ millions, except per-share amounts Diluted Loss per Share ($0.16) ($0.84) ($0.61) Net Loss (7.5) (40.5) (29.4) Special Items, net of tax: COVID-19 costs 1.6 1.9 1.4 Inventory write-downs from restructuring - 2.0 - Acquisition-rel
Slide 17: Non-GAAP Schedules: Adjusted operating margin
Non-GAAP Schedules Adjusted operating margin, excluding surcharge revenue and special items Q3-22 Q3-21 Q2-22 $ millions Net sales 489.0 351.9 396.0 Less: surcharge revenue 120.0 53.8 81.1 Net sales excluding surcharge revenue 369.0 298.1 314.9 Operating income (loss) 1.1 (40.0) (31.5) Special Items
Slide 18: Non-GAAP Schedules: Free cash flow
Non-GAAP Schedules Free cash flow 9 MOS 9 MOS Q1-22 Q2-22 Q3-22 FY22 FY21 $ millions Net Cash (Used for) Provided from Operating Activities (47.0) (89.2) 35.3 (101.0) 175.4 Purchases of Property, Plant, Equipment and Software (14.4) (19.1) (25.1) (58.5) (78.5) Proceeds from Disposals of Property, Pl
Slide 19: 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
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