Ati Inc. · NYSE:ATI
Ati — Q3 2022 Earnings Presentation
14 slides from Ati's earnings presentation, Nov 2, 2022
Slide 1: Proven to perform anywhere. Third Quarter 2022 Earnings
Proven to perform anywhere. Third Quarter 2022 Earnings November 2, 2022 ATI Proprietary and Confidential ©2022 ATI. All rights reserved. 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements. Actual results may differ materially from results anticipated in the forward-looking statements due to various known and unknown risks, many of which we are unable to predict or control. These and additional risk facto
Slide 3: Key Takeaways
Key Takeaways Performance Balance Sheet Strategic Progress Accelerating Aerospace shipments Deploying capital for shareholder Portfolio transformation driving driving solid results returns, balance sheet product mix and cost benefits strengthening • Sustained strong jet engine recovery • Announcing
Slide 4: Strategic Markets & Diversified Applications
Strategic Markets & Diversified Applications Near-term Q3 ‘22 vs. vs. Market Market Comments Revenue Q3 ‘21 Q2 ‘22 Outlook • Ongoing expansion in materials and forgings, led by next generation products for narrowbody aircraft; increased widebody MRO demand as planes are returned to service Jet Engin
Slide 5: Well-Positioned for Sustainable Growth
Well-Positioned for Sustainable Growth Driving Value Creation Expanding Markets Medical Product Narrowbody Widebody Defense Specialty Transformation Ramp Ramp Growth Energy (Build & (Build & Metallics MRO) MRO) Fly, Float beyond Ni+Ti & Roll ESG Key capabilities: Materials science expertise and inte
Slide 6: Third Quarter 2022 Financial Results
Third Quarter 2022 Financial Results $M (excl. EPS) Q3 2022 Q3 2021 % Chg. Q2 2022 % Chg. HPMC Segment Continued aerospace ramp driving top-line and margin Revenue $1,032 $726 42% $960 8% growth • Revenue: Continued strong year-over-year and sequential HPMC Segment $458 $300 53% $396 16% growth in j
Slide 7: Cash & Liquidity
Cash & Liquidity Net Debt/Adj. EBITDA Ratio: 2.8x (1) (1) Balance Sheet and Cash Flow Q3 Results • Liquidity of ~$880 million, including $329M of cash on hand Extended maturity to 2027 (2) $600 • Managed working capital 36.5% of sales ; improved 200 basis points versus Q2 2022 levels $500 • Capital
Slide 8: Fourth Quarter & Full Year 2022 Outlook
Fourth Quarter & Full Year 2022 Outlook Fourth Quarter 2022 Key Assumptions Earnings Drivers Adj. EPS1,3 ✓ Continued Jet engine-driven and Airframe demand ramp in Q4 $0.49 – $0.55 ✓ Narrowbody production increases ✓ Increased year-over-year airframe market ✓ Continued zero-COVID market disruptions i
Slide 9: Additional Materials Appendix
Additional Materials Appendix
Slide 10: Non-GAAP Financial Measures
ATI Inc. and Subsidiaries Non-GAAP Financial Measures (Unaudited, dollars in millions, except per share amounts) The Company Companyreports reportsitsits financial financial results in accordance results with accounting in accordance principles with accounting generally principles acceptedaccepted g
Slide 11: Net Income Per Common Share Reconciliation
Three Months Ended September 30, 2022 June 30, 2022 September 30, 2021 Reported Adjusted Reported Adjusted Reported Adjusted Numerator for Basic net income (loss) per common share - Net income (loss) attributable to ATI $ 61.1 $ 77.4 $ (38.0) $ 76.7 $ 48.7 $ 6.2 Effect of dilutive securities 2.8 2.8
Slide 12: EBITDA Reconciliation
Three Months Ended Latest Twelve Months Fiscal Year Ended Fiscal Year Ended September 30, 2022 June 30, 2022 September 30, 2021 September 30, 2022 December 31, 2021 December 31, 2019 Net income (loss) attributable to ATI $ 61.1 $ (38.0) $ 48.7 $ 24.2 $ (38.2) $ 252.5 Net income attributable to nonco
Slide 13: Footnotes to Non-GAAP Reconciliations
All (a) The third quarter 2021 results include $22.9 million of pre-tax strike related costs primarily consisting of overhead costs recognized in the period due to below-normal operating rates, higher costs for outside conversion activities, and signing bonuses for represented employees. Fiscal year
Slide 14: Free Cash Flow and Managed Working Capital Definitions
Free Cash Flow Free cash flow as defined by ATI includes the total of cash provided by (used in) operating activities and investing activities as presented on the consolidated statements of cash flows, adjusted to exclude cash contributions to the Company’s U.S. qualified defined benefit pension pla