Carpenter Technology Corporation · NYSE:CRS
Carpenter Technology — Q1 FY2018 Earnings Presentation
18 slides from Carpenter Technology's earnings presentation, Oct 27, 2017
Slide 1: 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 2: 1st Quarter Fiscal Year 2018 Summary
1st Quarter Fiscal Year 2018 Summary Tony Thene President and Chief Executive Officer
Slide 3: Safety is Our Highest Priority
Safety is Our Highest Priority 3.7 3.3 © 2017 CRS Holdings, Inc. All rights reserved 4 Total Case Incident Rate (TCIR) 4.8 3.93.9 3.5 2.12.22.0 1.2 FY09FY10FY11FY12FY13FY14FY15FY16FY17FY18 Q1
Slide 4: 1st Quarter Summary
1st Quarter Summary platform and sub-market diversity for first time in almost three years incremental capacity © 2017 CRS Holdings, Inc. All rights reserved 5 High level of execution drove strong operational results; EPS of $0.49 marks best first quarter since fiscal year 2014 Growth in Aerospace a
Slide 5: Q1-18 End-Use Market Highlights
Q1-18 End-Use Market Highlights vs. Q1-17 vs. Q4-17 Q1-18 Net Sales ex. Surcharge ($M)* Comments Sequential results reflect strength across multiple end-use applications 53% Oil & gas sub-market sales up 64% YOY; down sequentially primarily 7% 7% 8% share gains across key growth applications 17% *Ex
Slide 6: 1st Quarter Financial Overview & Business Update
1st Quarter Financial Overview & Business Update Damon Audia Senior Vice President and Chief Financial Officer
Slide 7: Income Statement Summary
Income Statement Summary *Detailed schedule included in Non-GAAP Schedules in Appendix © 2017 CRS Holdings, Inc. All rights reserved 8 Improving markets and solid execution drove strongest Q1 operating performance since Q1-14 $ Millions , except pounds and per-s hare am ounts Q1-17 Q4-17 Q1-18 Seque
Slide 8: Free Cash Flow Summary
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 **Credit facility refinanced in Q3-17 at $400 million with 2022 maturity © 2017 CRS Holdings, Inc. All rights reserved 9 Traditional first qu
Slide 9: SAO Segment Summary
SAO Segment Summary © 2017 CRS Holdings, Inc. All rights reserved 10 Q2-18 Outlook Positive trends in most end-use markets Operating income expected to increase up to 5% sequentially; best second quarter performance in four years Q1 Business Results Strong year-over-year sales growth across most end
Slide 10: PEP Segment Summary
PEP Segment Summary * Pounds related to manufactured tons for Dynamet and Carpenter Powder Products only © 2017 CRS Holdings, Inc. All rights reserved 11 Q2-18 Outlook Relatively consistent rig count levels expected to moderate oil & gas activity Continued strong demand for titanium products Operati
Slide 11: 1st Quarter Fiscal Year 2018 Closing Comments
1st Quarter Fiscal Year 2018 Closing Comments Tony Thene President and Chief Executive Officer
Slide 12: Additive Manufacturing (AM) – Our Value Proposition
Additive Manufacturing (AM) – Our Value Proposition Disruptive technology with significant growth potential 42% compound annual growth rate (CAGR) market with > $1.6B in materials and services opportunities by 20201 Project 32% CAGR for metal powders through 20212 Value to End-Users Weight savings –
Slide 13: Closing Comments
Closing Comments conditions delivering backlog growth and expanding market attractive sub-markets on positioning the business for the future both SAO and PEP, reducing costs and unlocking capacity manufacturing © 2017 CRS Holdings, Inc. All rights reserved 14 Solid start to fiscal year 2018 and high
Slide 14: Appendix of Non-GAAP Schedules
Appendix of Non-GAAP Schedules
Slide 15: Non-GAAP Schedules: Adjusted Diluted Earnings per Share
Non-GAAP Schedules (Unaudited) Adjusted Diluted Earnings per Share Management believes that earnings per share adjusted to exclude the impact of special items is helpful in analyzing the operating performance of the Company, as these items are not indicative of ongoing operating performance. Managem
Slide 16: Non-GAAP Schedules: Operating Margin Excluding Surcharge Revenue, Pension EID and Special Items
Non-GAAP Schedules (Unaudited) Operating Margin Excluding Surcharge Revenue, Pension Earnings, Interest and Deferrals (“Pension EID”) and Special Items Management believes that removing the impacts of raw material surcharge from operating margin provides a more consistent basis for comparing results
Slide 17: Non-GAAP Free Cash Flow Schedules
Non-GAAP Free Cash Flow Schedules (Unaudited) Management believes that the free cash flow measure provides useful information to investors regarding our financial condition because it is a measure of cash generated which management evaluates for alternative uses. © 2017 CRS Holdings, Inc. All rights
Slide 18: Free Cash Flow
Free Cash Flow $ Millions Net cash provided from (used for) operating activities (7.4) Purchases of property, equipment and software (28.9) Proceeds from sale of business 2 Proceeds from disposals of property and equipment and assets held for sale : 25 : Dividends paid (8.5) (8.5)| (8.6) Free Cash F
Carpenter Technology — Q1 FY2018 Earnings Presentation on 6ix