Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q4 FY2020 Earnings Presentation
20 slides from Carpenter Technology's earnings presentation, Aug 3, 2020
Slide 1: 4th Quarter Fiscal Year 2020 Earnings Call
4th Quarter Fiscal Year 2020 Earnings Call July 30, 2020 Carpenter Technology Corporation Exhibit 99.1
Slide 2: Cautionary Statement: Forward-Looking Statements
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 2020 - Tony Thene, CEO
4th Quarter Fiscal Year 2020 Tony Thene President and Chief Executive Officer
Slide 4: Safety is Our Highest Value
Safety is Our Highest Value Total Case Incident Rate (TCIR) FY20
Slide 5: 4th Quarter Summary
Results Negatively Impacted by COVID-19 and Accelerated Inventory Reduction; Liquidity Position Strengthened and Remain Critical Supply Chain Partner Across Attractive End-Use Markets 4th Quarter Summary Executed targeted portfolio restructurings and cost reduction initiatives expected to deliver $6
Slide 6: End-Use Markets: Aerospace and Defense, Medical, Transportation
Aerospace and Defense $213.8 57% -30% -27% Customers across supply chain adjusting inventories and production schedules to lower OEM build rates Current consensus points to continued weak CY20 with uptick starting in CY21 Well-positioned to realize demand rebound given nature of solutions, breadth o
Slide 7: 4th Quarter Financial Overview and Business Update
4th Quarter Financial Overview and Business Update Tim Lain Vice President and Chief Financial Officer
Slide 8: Income Statement Summary
Q4 results impacted by significant inventory reduction to generate cash flow Income Statement Summary * Detailed schedule included in Non-GAAP Schedules in Appendix
Slide 9: SAO Segment Summary
SAO Segment Summary Q4 Operating Results Q4 Business Results Q1 FY21 Outlook Significant inventory reduction (over $100 million) and the related impacts of lower production activities, combined with lower raw material prices, negatively impacted operating results Reduced demand across all end-use ma
Slide 10: PEP Segment Summary
PEP Segment Summary Q4 Operating Results Q4 Business Results Q1 FY21 Outlook Demand conditions across all end-use markets and productivity negatively impacted by COVID-19; all facilities remained operational Restructuring cost actions executed; exit of Amega West oil & gas business near complete Foc
Slide 11: Free Cash Flow Summary
Accelerated inventory reduction in Q4 drove significant cash flow generation Free Cash Flow Summary The clerical accuracy of certain amounts may be impacted due to rounding * Detailed schedule included in Non-GAAP Schedules in Appendix $ Millions FY11 YTD FY19 Q1-20 Q2-20 Q3-20 Q4-20 YTD FY20 Net In
Slide 12: Bond Offering Significantly Enhances Already Healthy Liquidity
Bond Offering Significantly Enhances Already Healthy Liquidity Proforma1 Debt Profile Proforma1 Liquidity Refinancing represents another critical action to enhance liquidity profile in near-term $553 In July 2020, completed issuance of $400 million senior unsecured notes due in July 2028 Proceeds to
Slide 13: Selected Fiscal Year 2021 Guidance
Selected Fiscal Year 2021 Guidance $ Millions FY20 FY21 Estimate Depreciation and Amortization $124M ~$130M Capital Expenditures $171M ~$120M Pension Contributions $7M ~$20M Pension Expense $15M ~$16M Interest Expense $20M ~$35M Effective Tax Rate excluding special items 22% 32% - 35%
Slide 14: Closing Comments - Tony Thene, CEO
4th Quarter Fiscal Year 2020 Closing Comments Tony Thene President and Chief Executive Officer
Slide 15: Immediate Priorities
Immediate Priorities Ensuring the Safety of our Employees and Communities Rapid Response Team continues to implement COVID-19 policies to protect employees Maintain frequent, effective communication to all key constituencies Monitor and track situations and employees globally and on a daily basis So
Slide 16: Near-Term Priorities and Closing Comments
Near-Term Priorities Focused on Employee Safety and Sustaining Operations; Liquidity Position, Solutions Portfolio and Critical Supply Chain Position Supports Sustainable Long-Term Growth Profile Closing Comments Expecting market conditions to remain challenging through first half of fiscal year 202
Slide 17: Appendix of Non-GAAP Schedules
Appendix of Non-GAAP Schedules
Slide 18: Non-GAAP Schedules: Adjusted Diluted Earnings (Loss) Per Share
Non-GAAP Schedules (Unaudited) Adjusted Diluted Earnings (Loss) Per Share $ Millions except per share amounts Q4-19 Q3-20 Q4-20 FY19 FY20 Diluted Earnings (Loss) per Share $1 $0.82 $-2.46 $3.43 $0.02 Net Income (Loss) 48.9 39.9 -,118.4 167 1.5 Special Items: Acquisition-related costs 0 0 0 1.2 0 Goo
Slide 19: Non-GAAP Schedules (Unaudited)
Non-GAAP Schedules (Unaudited)
Slide 20: Non-GAAP Schedules: Free Cash Flow
Non-GAAP Schedules (Unaudited) Free Cash Flow $ Millions Q4-19 Q3-17 Q3-20 Q4-20 FY19 FY20 Net cash provided from operating activities 175.1 61.3 72.3 136.9 232.4 231.8 Purchases of property, plant, equipment and software -49.7 -18 -49.7 -27.4 -,180.3 -,171.4 Acquisition of business, net of cash acq
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