Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q4 FY2021 Earnings Presentation
19 slides from Carpenter Technology's earnings presentation, Jul 30, 2021
Slide 1: 4th Quarter Fiscal Year 2021 Earnings Call
Exhibit 99.1 J u l y 2 9 , 2 0 2 1 CARPENTER TECHNOLOGY CORPORATION th 4 Quarter Fiscal Year 2021 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: 4th Quarter Fiscal Year 2021 - Tony Thene, CEO
th 4 QUARTER FISCAL YEAR 2021 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 3.9 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 0.6 0.5 0 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 © 2021 CRS Holdings Inc. All rights reserved. 4Safety is Our Highest Value Total Case Incident Rate (TCIR) 4 3.9 3.7 3.5 3.3
Slide 5: 4th Quarter Summary
4th Quarter Summary • Results finished ahead of expectations as conditions improved across Aerospace and Defense and Medical end-use markets Continue to Actively • Strategic focus centered on driving liquidity, deepening our customer relationships and capitalizing on emerging market opportunities Ma
Slide 6: 4th Quarter End-Use Market Highlights
4th Quarter End-Use Market Highlights Sales ex-surcharge down 7% year-over-year; up 17% sequentially Q4-21 NET SALES MARKET EX. SURCHARGE % VS. Q4-20 VS. Q3-21 COMMENTS ($M)* • Demand improving with more customers anticipating upticks in early 2022 ahead of firm orders $165.5 48% • Wide variation in
Slide 7: Financial Overview and Business Update
th 4 QUARTER FISCAL YEAR 2021 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer 7th 4 QUARTER FISCAL YEAR 2021 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer 7
Slide 8: Income Statement Summary
Income Statement Summary Sequential improvement in operating performance as demand conditions improved YEAR-OVER- SEQUENTIAL $ in millions, except pounds and per-share amounts Q4-21 Q4-20 Q3-21 YEAR CHANGE CHANGE Pounds ('000) 47,968 4 8,002 3 7,770 ( 34) 1 0,198 Net Sales 4 21.6 437.3 351.9 (15.7)
Slide 9: SAO Segment Summary
SAO Segment Summary Q4 OPERATING RESULTS Q4-21 Q4-20 Q3-21 vs Q4-20 vs Q3-21 Pounds ('000) 47,712 46,124 37,260 1,588 10,452 Net Sales ($M) 361.5 369.4 299.6 (7.9) 61.9 Sales ex. Surcharge ($M) 289.9 308.6 246.5 (18.7) 43.4 * Operating (Loss) Income ($M) (47.3) 5.3 (9.9) (52.6) (37.4) % of Net Sales
Slide 10: PEP Segment Summary
PEP Segment Summary Q4 OPERATING RESULTS Q4-21 Q4-20 Q3-21 vs Q4-20 vs Q3-21 Pounds* ('000) 2,912 2,384 2,026 528 886 Net Sales ($M) 77.5 77.1 65.7 0.4 11.8 Sales ex. Surcharge ($M) 75.6 76.0 64.9 (0.4) 10.7 ** Operating Loss ($M) (2.3) (8.4) (3.3) 6.1 1.0 % of Net Sales -3.0% -10.9% -5.0% 7.9% 2.0%
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Continued to drive targeted inventory reductions; $132 million of free cash flow generated in fiscal 2021 $ MILLIONS Q1-21 Q2-21 Q3-21 Q4-21 FY21 FY20 Net (Loss) Income + Non-Cash Items 4 ( 3) 4 24 29 273 Inventory 85 71 26 57 239 30 Working Capital / Other 2 18 ( 20) 2 2 ( 64
Slide 12: Selected Fiscal Year 2022 Guidance
Selected Fiscal Year 2022 Guidance $ in millions FY21 FY22 Estimate $553 $124 ~$135 Depreciation and Amortization $101 ~$125 Capital Expenditures $20 -- Required Minimum Pension Contributions $13 ~($8) Net Pension Expense (Income)* $33 ~$41 Interest Expense 23% 28-30% Effective Tax Rate *FY21 exclud
Slide 13: Closing Comments
th 4 QUARTER FISCAL YEAR 2021 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 13th 4 QUARTER FISCAL YEAR 2021 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 13
Slide 14: Positioned to Capitalize on the Recovery
Positioned to Capitalize on the Recovery • Total liquidity of $582 million, including $287 million in cash • Operating flexibility given strengthened financial position and extended Deep Customer maturities profile Relationships, Improved • Forged stronger relationships with key customers during the
Slide 15: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES 15APPENDIX OF NON-GAAP SCHEDULES 15
Slide 16: Non-GAAP Schedules: Adjusted diluted (loss) earnings per share
Non-GAAP Schedules Adjusted diluted (loss) earnings per share $ MILLIONS, EXCEPT PER-SHARE AMOUNTS Q4-21 Q4-20 Q3-21 FY21 FY20 Diluted (Loss) Earnings per Share ($1.18) ($2.46) ($0.84) ($4.76) $0.02 Net (Loss) Income (57.1) (118.4) (40.5) (229.6) 1.5 Special Items, net of tax: 37.3 1.4 - 37.3 1.4 LI
Slide 17: Non-GAAP Schedules: Adjusted operating margin
Non-GAAP Schedules Adjusted operating margin, excluding surcharge revenue and special items $ MILLIONS Q4-21 Q4-20 Q3-21 FY21 FY20 Net Sales 421.6 437.3 351.9 1,475.6 2,181.1 Less: Surcharge Revenue 73.5 61.4 53.8 222.8 352.4 Net Sales Excluding Surcharge Revenue 348.1 375.9 298.1 1,252.8 1,828.7 Op
Slide 18: Non-GAAP Schedules: Free cash flow
Non-GAAP Schedules Free cash flow $ MILLIONS Q1-21 Q2-21 Q3-21 Q4-21 FY21 FY20 Net cash provided from operating activities 88.0 83.6 3.8 74.5 250.0 231.8 Purchases of property, plant, equipment and software ( 33.3) (26.6) ( 18.6) ( 22.1) (100.5) (171.4) Proceeds from disposals of property and equipm
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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