Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q1 FY2021 Earnings Presentation
19 slides from Carpenter Technology's earnings presentation, Oct 23, 2020
Slide 1: 1st Quarter Fiscal Year 2021 Earnings Call
Exhibit 99.1 O C T O B E R 2 2 , 2 0 2 0 CARPENTER TECHNOLOGY CORPORATION 1st Quarter Fiscal Year 2021 Earnings CallExhibit 99.1 O C T O B E R 2 2 , 2 0 2 0 CARPENTER TECHNOLOGY CORPORATION 1st 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: 1st Quarter Fiscal Year 2021 - Tony Thene
1ST QUARTER FISCAL YEAR 2021 Tony Thene | President and Chief Executive Officer 31ST 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) 3.9 3.7 3.3 2.2 2.1 2.0 1.3 1.2 1.1 0.4 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD © 2020 CRS Holdings Inc. All rights reserved. 4Safety is Our Highest Value Total Case Incident Rate (TCIR) 3.9 3.7 3.3 2.2 2.1 2.0 1.3 1.2 1.1 0.4
Slide 5: 1st Quarter Summary
1st Quarter Summary • As anticipated, performance impacted by volume headwinds, continued targeted inventory reduction and COVID-19 related costs • Generated $63 million of free cash flow; completed bond offering to Near-term Revenue and Cost extend maturities profile and increase liquidity; total l
Slide 6: 1st Quarter End-Use Market Highlights
1st Quarter End-Use Market Highlights Sales ex-surcharge down 37% year-over-year; down 18% sequentially Q1-21 NET SALES MARKET EX. SURCHARGE % VS. Q1-20 VS. Q4-20 COMMENTS ($M)* • Customers continue working through over-inventoried positions • Forward expected material needs and timing vary widely b
Slide 7: Financial Overview and Business Update - Tim Lain
1ST QUARTER FISCAL YEAR 2021 FINANCIAL OVERVIEW AND BUSINESS UPDATE Tim Lain | Senior Vice President and Chief Financial Officer 71ST 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 As anticipated, profitability impacted by lower volume and focused efforts to reduce inventory to further strengthen liquidity SEQUENTIAL YEAR-OVER- $ in Millions, except pounds and per-share amounts Q1-20 Q4-20 Q1-21 CHANGE YEAR CHANGE Pounds ('000) 62,298 48,002 44,348 (3,
Slide 9: SAO Segment Summary
SAO Segment Summary Q1 OPERATING RESULTS Q1-20 Q4-20 Q1-21 vs Q1-20 vs Q4-20 Pounds ('000) 60,044 46,124 43,368 (16,676) (2,756) Net Sales ($M) 491.1 369.4 300.7 (190.4) (68.7) Sales ex. Surcharge ($M) 393.2 308.6 254.8 (138.4) (53.8) Operating Income (Loss) ($M) 81.0 5.3 (18.6) (99.6) (23.9) % of N
Slide 10: PEP Segment Summary
PEP Segment Summary Q1 OPERATING RESULTS Q1-20 Q4-20 Q1-21 vs Q1-20 vs Q4-20 Pounds* ('000) 3,250 2,384 1,466 (1,784) (918) Net Sales ($M) 109.4 77.1 61.8 (47.6) (15.3) Sales ex. Surcharge ($M) 107.9 76.0 61.2 (46.7) (14.8) Operating Loss ($M) (2.0) (8.4) (3.6) (1.6) 4.8 % of Net Sales -1.8% -10.9%
Slide 11: Free Cash Flow Summary
Free Cash Flow Summary Continued focus on inventory reduction to reflect near-term market disruption and protect liquidity $ MILLIONS Q1-20 Q4-20 Q1-21 Net Income (Loss) + Non-Cash Items 83 27 4 Inventory (51) 117 85 Working Capital / Other (29) (5) 2 Total Net Working Capital / Other (80) 112 87 Pe
Slide 12: Closing Comments - Tony Thene
1ST QUARTER FISCAL YEAR 2021 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 121ST QUARTER FISCAL YEAR 2021 CLOSING COMMENTS Tony Thene | President and Chief Executive Officer 12
Slide 13: Advancing electrification through high performance solutions for power dense motors
Advancing electrification through high performance solutions for power dense motors Focused on innovation and creating unique solutions that address evolving industry trends and specific customer needs • Advanced solutions for electric motors and generator systems in wide variety of applications spa
Slide 14: Closing Comments
Closing Comments • Market conditions through first half of fiscal year 2021 expected to remain challenging • Maintain strong liquidity position with forward plan Managing the Near-Term With • $613 million of total liquidity at end of Q1-21 including $219 million in cash • Financial flexibility stren
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 earnings per share
Non-GAAP Schedules (Unaudited) Adjusted diluted earnings (loss) per share $ MILLIONS, EXCEPT PER-SHARE AMOUNTS Q1-20 Q4-20 Q1-21 Diluted Earnings (Loss) per Share $0.85 ($2.46) ($0.98) Net Income (Loss) 41.2 (118.4) (47.1) Special Items, net of tax: - - 6.2 Debt prepayment costs, net - 76.0 7.6 Rest
Slide 17: Non-GAAP Schedules: Adjusted operating margin
Non-GAAP Schedules (Unaudited) Adjusted operating margin, excluding surcharge revenue and special items $ MILLIONS Q1-20 Q4-20 Q1-21 Net Sales 585.4 437.3 353.3 Less: Surcharge Revenue 98.8 61.4 46.1 Net Sales Excluding Surcharge Revenue 486.6 375.9 307.2 Operating Income (Loss) 59.8 ( 148.2) (48.8)
Slide 18: Non-GAAP Schedules: Free cash flow
Non-GAAP Schedules (Unaudited) Free cash flow $ MILLIONS Q1-20 Q4-20 Q1-21 Net cash provided from operating activities 0.7 136.9 88.0 Purchases of property, plant, equipment and software (47.5) ( 27.4) (33.3) Proceeds from disposals of property and equipment 0.1 - - Proceeds from divestiture of busi
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, transportation, energy, industrial, medical, and consumer electronics mar
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