Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q1 FY2022 Earnings Presentation
18 slides from Carpenter Technology's earnings presentation, Oct 28, 2021
Slide 1: Carpenter Technology Corporation 1st Quarter Fiscal Year 2022 Earnings Call
Exhibit 99.1 O c t o b e r 2 8 , 2 0 2 1 CARPENTER TECHNOLOGY CORPORATION st 1 Quarter Fiscal Year 2022 Earnings Call 1
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 2022 - Tony Thene, President and CEO
st 1 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 1.1 1 0.6 0.5 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 YTD © 2021 CRS Holdings Inc. All rights reserved.4
Slide 5: 1st Quarter Summary
1st Quarter Summary • Demand across end-use markets continues to increase, albeit at different paces, with backlog up 25% sequentially and 49% year-over- year Continue to Actively • PEP segment finished ahead of our expectations, largely driven by strong demand in aerospace fasteners sub-market Mana
Slide 6: 1st Quarter End-Use Market Highlights
1st Quarter End-Use Market Highlights Sales ex-surcharge up 2% year-over-year; down 10% sequentially Q1-22 NET SALES MARKET EX. SURCHARGE % VS. Q1-21 VS. Q4-21 COMMENTS ($M)* • Entire supply chain looking ahead to prepare for full recovery • Fastener & distribution sub-markets beginning to ramp; eng
Slide 7: Financial Overview and Business Update
st 1 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 impacted by short-term operational challenges YEAR-OVER- SEQUENTIAL Q1-22 Q1-21 Q4-21 $ in millions, except pounds and per-share amounts YEAR CHANGE CHANGE Pounds ('000) 4 3,528 4 4,348 4 7,968 ( 820) ( 4,440) Net Sales 3 87.6 3 53.3 4 21.6 3 4.3 (34.0) Net Sales
Slide 9: SAO Segment Summary
SAO Segment Summary Q1 OPERATING RESULTS Q1-22 Q1-21 Q4-21 vs Q1-21 vs Q4-21 Pounds ('000) 43,008 43,368 47,712 (360) (4,704) Net Sales ($M) 331.9 300.7 361.5 31.2 (29.6) Sales ex. Surcharge ($M) 258.2 254.8 289.9 3.4 (31.7) * Operating Loss ($M) (5.9) (18.6) (47.3) 12.7 41.4 % of Net Sales -1.8% -6
Slide 10: PEP Segment Summary
PEP Segment Summary Q1 OPERATING RESULTS Q1-22 Q1-21 Q4-21 vs Q1-21 vs Q4-21 Pounds* ('000) 2,372 1,466 2,912 906 (540) Net Sales ($M) 74.6 61.8 77.5 12.8 (2.9) Sales ex. Surcharge ($M) 73.6 61.2 75.6 12.4 (2.0) ** Operating Income (Loss) ($M) 0.6 (3.6) (2.3) 4.2 2.9 % of Net Sales 0.8% -5.8% -3.0%
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Inventory growth related to short-term operational challenges; total liquidity remains healthy $ MILLIONS Q1-22 Q1-21 Q4-21 Net Income + Non-Cash Items 11 4 24 Inventory (67) 85 5 7 Working Capital / Other 9 2 2 Total Net Working Capital / Other (58) 87 5 9 Pension Plan Contri
Slide 12: Closing Comments
st 1 QUARTER FISCAL YEAR 2022 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 12
Slide 13: Positioned to Capitalize on Increasing Demand
Positioned to Capitalize on Increasing Demand • Continuing to see demand increase across our end-use markets with a strong, long-term outlook Deep Customer • Partnering with key customers in navigating the recovery Relationships, Strong • Implementing the Carpenter Operating Model and addressing sho
Slide 14: Appendix of Non-GAAP Schedules
APPENDIX OF NON-GAAP SCHEDULES 14
Slide 15: Non-GAAP Schedules: Adjusted diluted loss per share
Non-GAAP Schedules Adjusted diluted loss per share $ MILLIONS, EXCEPT PER-SHARE AMOUNTS Q1-22 Q1-21 Q4-21 Diluted Loss per Share ($0.31) ($0.98) ($1.18) Net Loss (14.8) (47.1) (57.1) Special Items, net of tax: - - 37.3 LIFO decrement 0 .9 5.3 2.1 COVID-19 costs - - 1.2 Inventory write-downs from res
Slide 16: Non-GAAP Schedules: Adjusted operating margin
Non-GAAP Schedules Adjusted operating margin, excluding surcharge revenue and special items $ MILLIONS Q1-22 Q1-21 Q4-21 Net Sales 3 87.6 3 53.3 4 21.6 Less: Surcharge Revenue 7 4.7 4 6.1 7 3.5 Net Sales Excluding Surcharge Revenue 312.9 3 07.2 3 48.1 Operating Loss (19.1) ( 48.8) ( 70.7) Special It
Slide 17: Non-GAAP Schedules: Free cash flow
Non-GAAP Schedules Free cash flow $ MILLIONS Q1-22 Q1-21 Q4-21 Net cash (used for) provided from operating activities ( 47.0) 8 8.0 74.5 Purchases of property, plant, equipment and software (14.4) (33.3) (22.1) Proceeds from divestiture of business - 1 7.6 - Dividends paid (9.8) (9.7) (9.8) Free Cas
Slide 18: 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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