Kaiser Aluminum Corporation · NASDAQ:KALU
Kaiser Aluminum — Q1 2024 Earnings Presentation
27 slides from Kaiser Aluminum's earnings presentation, Apr 25, 2024
Slide 1: First Quarter 2024 Earnings Conference Call
FIRST QUARTER 2024 EARNINGS CONFERENCE CALL April 25, 2024
Slide 2: Forward Looking Statements
FORWARD LOOKING STATEMENTS The information contained in this presentation includes statements based on management’s current expectations, estimates and projections that constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements
Slide 3: Non-Run-Rate Items
NON-RUN-RATE ITEMS Non-run-rate items to us are items that, while they may recur from period to period, (1) are particularly material to results, (2) impact costs as a result of external market factors and (3) may not recur in future periods if the same level of underlying performance were to occur.
Slide 4: Non-GAAP Financial Measures
NON-GAAP FINANCIAL MEASURES This information contains certain non-GAAP financial measures. A “non-GAAP financial measure” is defined as a numerical measure of a company’s financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculate
Slide 5: Commonly Used or Defined Terms and Measures
COMMONLY USED OR DEFINED TERMS AND MEASURES Term/Measure Description Adjusted EPS Reported net income per diluted share excluding non-run-rate items. Adjusted Net Income Reported net income excluding non-run-rate items. Annualized Quarterly Average Calculated as the four-quarter average for prior ye
Slide 6: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS KEITH A. HARVEY PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 7: Q1 2024 Highlights
Q1 2024 HIGHLIGHTS ▪ NORMALIZING CONDITIONS AND COST CONTROL LED TO STRONGER THAN EXPECTED Q1 RESULTS ▪ Q1 2024 EBITDA of $62 million increased 34% YOY ▪ Margins improved on lower manufacturing costs, initial effects of metal strategy, and lower spending than plan ▪ Pricing remained stable to positi
Slide 8: Q1 2024 Financial Recap
Q1 2024 FINANCIAL RECAP NEAL E. WEST EXECUTIVE VICE PRESIDENT & CHIEF FINANCIAL OFFICER
Slide 9: End Market Summary
END MARKET SUMMARY SHIPMENTS 5 1 299 11 1 2 291 PRICE & MIX CONTRIBUTED TO Q1:24 CONVERSION REVENUE ON LOWER +8% (7%) +2% (4%) (61%) VOLUME 1Q23 Aero/High Packaging General Automotive Other 1Q24 Strength Engineering ▪ Aerospace/High Strength conversion revenue improved driven by price and volume CON
Slide 10: Consolidated Financial Highlights
CONSOLIDATED FINANCIAL HIGHLIGHTS Quarterly Full Year (in $millions except Shipments & EPS) 1Q23 2Q23 3Q23 4Q23 1Q24 2023 LTM Shipments (in millions of lbs.) 299 314 299 284 291 1,196 1,188 Net Sales $808 $814 $744 $722 $738 $3,087 $3,017 Conversion Revenue $369 $379 $357 $361 $367 $1,466 $1,464 As
Slide 11: EBITDA & EBITDA Margin Summary
EBITDA & EBITDA MARGIN SUMMARY EBITDA AND EBITDA MARGIN EBITDA UP 34% AND EBITDA MARGIN INCREASED 430 BPS YEAR-OVER-YEAR $millions EBITDA margin ▪ Operating efficiency and cost controls gaining traction across platform ▪ Timing of planned annual maintenance and lower freight $64 $62 costs offset hig
Slide 12: 2024 Outlook Update
2024 OUTLOOK UPDATE KEITH A. HARVEY PRESIDENT AND CHIEF EXECUTIVE OFFICER
Slide 13: 2024 Outlook - Aero/High Strength
2024 OUTLOOK ‒ AERO/HIGH STRENGTH AEROSPACE / HIGH STRENGTH CONVERSION REVENUE $millions Shipments in millions lbs. ▪ Aero/HS shipments and conversion revenue $533 $547 now forecasted to remain flat in 2024 $511 ▪ Long-term demand in commercial, business jet, $369 $356 defense, & space remains uncha
Slide 14: 2024 Outlook - Packaging
2024 OUTLOOK – PACKAGING PACKAGING CONVERSION REVENUE ▪ Packaging shipments and conversion revenue on $millions Shipments in millions lbs. track to be up 5-7% year-over-year ▪ Coated food destocking ended in Q1 $555 $503 ▪ Expect shipments to reflect improved market conditions $488 $389 ▪ Roll Coat
Slide 15: 2024 Outlook - General Engineering
2024 OUTLOOK – GENERAL ENGINEERING GENERAL ENGINEERING CONVERSION REVENUE $millions Shipments in millions lbs. ▪ GE shipments expected to improve ~5-6% while conversion revenue is expected flat to up 1% $367 year-over-year $297 $305 $305 ▪ Order rates for all GE products improved year-to- $232 $239
Slide 16: 2024 Outlook - Automotive Extrusions
2024 OUTLOOK ‒ AUTOMOTIVE EXTRUSIONS AUTOMOTIVE EXTRUSION CONVERSION REVENUE $millions Shipments in millions lbs. ▪ Auto shipments and conversion revenue expected to improve 3-5% year-over-year $116 $116 ▪ Expect steady recovery in 2024 as auto production $93 $97 $96 is healthy $83 ▪ Price increases
Slide 17: 2024 Summary Outlook
2024 SUMMARY OUTLOOK ▪ Strong start to 2024 operating plan ▪ Demand expected to strengthen across majority of end markets ▪ Conversion revenue expected to improve 2% - 3% versus 2023 ▪ Improved operating efficiencies as demand drives higher volume ▪ Continued implementation of critical metal strateg
Slide 18: Appendix
APPENDIX
Slide 19: Sales Analysis by Application - Quarterly
SALES ANALYSIS BY APPLICATION - QUARTERLY 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Shipments (lbs, mm) Aero & High Strength 36.1 40.8 42.1 42.6 45.5 48.3 38.0 54.7 58.2 63.9 64.2 68.0 62.9 Packaging - 185.9 173.6 182.2 174.7 179.8 147.5 153.3 153.7 163.3 154.4 141.0 142.4 Gen
Slide 20: Sales Analysis by Application - Annual
SALES ANALYSIS BY APPLICATION - ANNUAL FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 LTM 1 Shipments (lbs, mm) Aero & High Strength 273.6 173.3 161.6 186.5 254.3 259.0 Packaging - - 541.7 655.3 612.4 601.1 General Engineering 236.3 235.6 298.2 303.9 215.6 216.8 Automotive Extrusions 94.3 84.1 94.0 96.5 10
Slide 21: Reconciliation of Net Sales to Conversion Revenue - Quarterly
RECONCILIATION OF NET SALES TO CONVERSION REVENUE – QUARTERLY 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Net Sales ($mm) Aero & High Strength $ 111.7 $ 133.9 $ 142.0 $ 146.1 $ 176.6 $ 175.4 $ 140.8 $ 183.3 $ 214.0 $ 225.1 $ 223.3 $ 236.9 $ 220.5 Packaging - 358.8 367.3 393.2 44
Slide 22: Reconciliation of Net Sales to Conversion Revenue - Annual
RECONCILIATION OF NET SALES TO CONVERSION REVENUE – ANNUAL FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 LTM 1 Net Sales ($mm) Aero & High Strength $ 803.2 $ 537.9 $ 533.7 $ 676.1 $ 899.3 $ 905.8 Packaging - - 1,119.3 1,585.3 1,315.2 1,259.1 General Engineering 480.1 458.8 706.1 883.8 596.5 587.4 Automoti
Slide 23: Adjusted Net Income and EPS - Quarterly
ADJUSTED NET INCOME AND EPS - QUARTERLY (in $ millions except EPS) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Reported Net Income (Loss) $ 4.5 $ (22.4) $ (2.3) $ 1.7 $ 8.1 $ (13.8) $ 2.5 $ (26.4) $ 15.9 $ 18.3 $ 5.4 $ 7.6 $ 24.6 Operating NRR Items 10.0 7.7 6.0 5.2 (0.4) 6.1 (0
Slide 24: Adjusted Net Income and EPS - Annual
ADJUSTED NET INCOME AND EPS - ANNUAL (in $ millions except EPS) 2019 2020 2021 2022 2023 LTM Reported Net Income (Loss) $ 62.0 $ 28.8 $ (18.5) $ (29.6) $ 47.2 $ 55.9 Operating NRR Items 34.5 18.1 28.9 31.0 5.3 4.8 Non-Operating NRR Items 26.9 4.7 38.1 (4.6) (9.0) (7.0) Tax impact of above NRR items
Slide 25: Reconciliation of Reported Net Income to Adjusted EBITDA - Quarterly
RECONCILIATION OF REPORTED NET INCOME TO ADJUSTED EBITDA - QUARTERLY (in $ millions) 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 Consolidated - Reported Net Income (Loss) $ 4.5 $ (22.4) $ (2.3) $ 1.7 $ 8.1 $ (13.8) $ 2.5 $ (26.4) $ 15.9 $ 18.3 $ 5.4 $ 7.6 $ 24.6 Interest Expense
Slide 26: Reconciliation of Reported Net Income to Adjusted EBITDA - Annual
RECONCILIATION OF REPORTED NET INCOME TO ADJUSTED EBITDA - ANNUAL (in $ millions) 2019 2020 2021 2022 2023 LTM Consolidated - Reported Net Income (Loss) $ 62.0 $ 28.8 $ (18.5) $ (29.6) $ 47.2 $ 55.9 Interest Expense 24.6 40.9 49.5 48.3 46.9 46.5 Other Expense (Income) 20.7 1.4 38.9 (6.4) (7.4) (4.7)
Slide 27: www.KaiserAluminum.com
www.KaiserAluminum.com