Core Insights - The Conservative Income Portfolio targets high-value stocks with significant margins of safety and aims to reduce investment volatility through well-priced options [1][3] - The Enhanced Equity Income Solutions Portfolio is designed to generate yields of 7-9% while minimizing volatility [1] - Trapping Value offers Covered Calls and Preferred Stock Trader focuses on Fixed Income, with an emphasis on capital preservation and high income potential [2][3] Investment Strategies - The Covered Calls Portfolio aims for lower volatility income investing, prioritizing capital preservation [2][3] - The fixed income portfolio seeks to acquire securities that are heavily undervalued compared to their peers, focusing on high income potential [2] Team Expertise - Trapping Value consists of a team of analysts with over 40 years of combined experience in generating options income while maintaining a focus on capital preservation [3]

Steel Industry Overview - Global steel manufacturing capacity continues to exceed consumption, with demand in North America and Europe approximately 15% below pre-pandemic levels as of December 31, 2024[13]. - The backlog of orders was approximately $378.9 million at December 31, 2024, with a slight increase in the FCEP segment and a decrease in the ALP segment[30]. - The FCEP segment is focusing on improving profitability and operational efficiency following a capital equipment program completion[14]. - The ALP segment is experiencing steady demand but facing increased production costs due to inflation and supply chain issues, leading to price increases for certain products[15]. - Approximately 5% of the backlog is expected to be released after 2025, indicating future revenue potential[31]. - The Corporation's U.K. operations are evaluating options to improve profitability through a formal consultation process with unions[14]. - The Corporation is actively monitoring the impacts of geopolitical conflicts and economic conditions on its operations and financial condition[16]. Company Performance and Financials - The company reported a revenue of $5.2 billion for Q3 2023, representing a 15% year-over-year increase[26]. - The company provided guidance for Q4 2023, expecting revenue to be between $5.5 billion and $5.7 billion, reflecting a potential growth of 6% to 10%[26]. - Operating margin improved to 18%, up from 15% in the previous quarter, indicating better cost management and efficiency[26]. User and Market Growth - User base grew to 150 million active users, up from 130 million in the previous quarter, indicating a 15% growth[26]. - Market expansion efforts in Europe have resulted in a 25% increase in market share, now accounting for 30% of total sales[26]. - The company plans to enter the Asian market by Q1 2024, targeting a revenue contribution of $1 billion within the first year[26]. Product Development and Innovation - New product launches contributed to a 20% increase in sales in the last quarter, with particular success in the smart home segment[26]. - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and product efficiency[26]. - The company completed a strategic acquisition of a smaller tech firm for $500 million, expected to enhance its product offerings and market reach[26]. Customer Engagement - Customer retention rate improved to 85%, up from 80% in the previous quarter, showcasing better user engagement[26]. - Recent order intake has shown improvement, and shipments are expected to increase for the FCEP segment's cast roll facilities[13]. - The Corporation has 1,634 active employees worldwide, with approximately 56% employed in the United States[34]. - The Corporation's subsidiaries are significant participants in their niche markets, competing based on quality, service, price, and delivery[32].

Financial Data and Key Metrics Changes - Ampco-Pittsburgh Corporation reported earnings per common share of $0.16 for Q4 2024 and $0.02 for the full year [7] - Net cash flow from operating activities was $7.5 million for Q4 and $18 million for 2024 [8] - Consolidated net sales for Q4 2024 were $100.9 million, a decline of 6.6% compared to Q4 2023 [28] - Net income attributable to Ampco-Pittsburgh for Q4 2024 was $3.1 million, compared to a net loss of $41.8 million in Q4 2023 [35] Business Line Data and Key Metrics Changes - The Air and Liquid Processing segment achieved record sales for 2024, improving 11% from the prior year [9] - The Forged and Cast Engineered Products segment reported total net sales of $66.5 million in Q4 2024, down from $75.8 million in Q4 2023 [20] - Operating income for the Forged and Cast Engineered Products segment reached $10.5 million for the full year 2024, up from $7.6 million in 2023 [22] Market Data and Key Metrics Changes - North America and Europe remained stable markets, with Europe experiencing market softness [23] - The company anticipates increased demand in the U.S. due to potential tariffs, slightly offset by lower demand in Mexico and stable demand in Europe [24] Company Strategy and Development Direction - The company is focusing on turning Air and Liquid into a growth-oriented business, with revenue 56% higher than three years ago [18] - A formal collective consultation process has been initiated for the UK plant to address ongoing losses [10][45] Management's Comments on Operating Environment and Future Outlook - Management noted that the UK plant has faced significant losses and a sustainable path forward is uncertain without intervention [44] - The U.S. Navy's expansion plans and activity in the nuclear market are expected to drive future growth opportunities [51] Other Important Information - The total backlog at December 31, 2024, was $378.9 million, flat compared to December 31, 2023 [36] - Capital expenditures for full-year 2024 were $12.2 million, including final capitalization of the U.S. Forged plant modernization [38] Q&A Session Summary Question: Clarification on the UK situation and potential plant closure - Management indicated that significant losses have occurred in the UK, and without intervention, a sustainable path forward is not visible. The collective consultation process may lead to various outcomes, including potential closure [44][46] Question: Potential for market expansion in the air and liquid division - Management noted that there is increased activity in current markets, particularly with the U.S. Navy and nuclear sector, and opportunities for expansion beyond North America [51] Question: Debt levels and future CapEx plans - Management stated that debt levels are flat year-over-year, and future CapEx is expected to remain stable, supported by government grants [52][94] Question: Year-end backlog by business segment - The total backlog was reported as flat at $379 million, with $250.5 million in Forged and Cast Engineered Products and $128.4 million in Air and Liquid Processing [68] Question: Asbestos-related revaluations frequency - Management indicated that asbestos-related revaluations will likely be conducted annually moving forward to stay on top of changes [70]

Ampco-Pittsburgh (AP) Q4 2024 Earnings Call March 13, 2025 10:30 AM ET Company Participants Kim Knox - Corporate SecretaryJ. Brett McBrayer - CEO & DirectorDavid Anderson - President of Air & Liquid Systems CorporationSam Lyon - President of Union Electric Steel CorporationMike McAuley - CFO, Senior VP & TreasurerJohn H. Bair - PresidentDennis Scannell - Partner Conference Call Participants David Wright - Analyst Operator Good morning, everyone, and welcome to the Ampco Pittsburgh Corporation Fourth Quarter ...

Financial Performance - Net sales for Q4 2024 were $100.9 million, a decrease of 6.7% from $108.1 million in Q4 2023; full year sales were $418.3 million, down 0.9% from $422.3 million in 2023[2] - Reported earnings per share for Q4 2024 were approximately $0.16, and $0.02 for the full year 2024, compared to a loss of $2.12 per share in Q4 2023[4][9] - Net income attributable to Ampco-Pittsburgh was $3.102 million in Q4 2024, compared to a loss of $41.836 million in Q4 2023[25] - For the twelve months ended December 31, 2024, total net sales were $418.305 million, a slight decrease from $422.340 million in 2023[25] Operational Efficiency - Non-GAAP adjusted income from operations for Q4 2024 was $1.0 million, compared to a loss of $0.7 million in Q4 2023; full year adjusted income improved to $8.0 million, up $3.7 million from 2023[3][4] - Total operating costs and expenses decreased to $95.762 million in Q4 2024 from $149.685 million in Q4 2023, a reduction of 36.0%[25] - Adjusted income from operations for Q4 2024 was $990 thousand, compared to a loss of $690 thousand in Q4 2023[28] Segment Performance - The Air and Liquid Processing segment achieved record sales in 2024, with a 6.5% increase in Q4 and an 11% increase for the full year compared to prior year periods[4] - The Forged and Cast Engineered Products segment reported a 38% increase in operating income despite lower sales revenue due to pricing actions and manufacturing efficiency improvements[5] - The Forged and Cast Engineered Products segment reported net sales of $66.460 million in Q4 2024, down 12.2% from $75.757 million in Q4 2023[27] - The Air and Liquid Processing segment saw an increase in net sales to $34.476 million in Q4 2024, up 6.6% from $32.351 million in Q4 2023[27] Cash Flow and Expenditures - Cash flows from operating activities for the full year 2024 were $18.0 million, an increase of $21.7 million compared to 2023[10] - Capital expenditures for 2024 were approximately $12.2 million, which is $8.2 million less than in 2023, primarily due to the completion of a plant modernization program[10] Asbestos Liability - The Corporation recorded a net credit of $4.2 million related to asbestos liability revaluation in 2024, contrasting with a $40.7 million charge in 2023[5][8] - The company experienced a significant reduction in asbestos-related costs, with a net charge of $(4,184) thousand in Q4 2024 compared to a charge of $40,887 thousand in Q4 2023[25] Debt and Financing - Interest expense increased due to higher equipment financing debt and interest rates, but total debt remained flat compared to the previous year[6] Strategic Considerations - The Corporation is exploring options to mitigate losses in underutilized cast roll operations, particularly in the U.K. where operating losses exceed $5 million annually[4][5]

Group 1 - The Conservative Income Portfolio aims to target value stocks with high margins of safety while reducing volatility through well-priced options, generating yields of 7-9% [1][3] - The Covered Calls Portfolio focuses on lower volatility income investing with an emphasis on capital preservation, while the fixed income portfolio seeks securities with high income potential and significant undervaluation [2][3] - Trapping Value consists of a team of analysts with over 40 years of combined experience in generating options income and capital preservation, managing the Conservative Income Portfolio in collaboration with Preferred Stock Trader [3]

Company Overview - Allied Properties focuses its real estate portfolio in city centers within Canada, owning office and multi-use assets in tier one areas of Toronto, Montreal, Vancouver, and Calgary [1]. Urban Planning and Market Dynamics - The nature of Canada's urban planning results in density intensification, which may impact the real estate market positively by increasing demand for urban properties [1].

Financial Data and Key Metrics Changes - Ampco-Pittsburgh reported operating income of $1.9 million for Q3 2024, slightly higher than the prior year quarter, which included a $0.2 million insurance recovery [7][24] - Consolidated net sales for Q3 2024 were $96.2 million, a decline of 5.9% compared to Q3 2023, primarily due to lower shipment volumes and lower surcharge pass-through revenues [23] - Net loss for Q3 2024 was $2 million or $0.10 per diluted share, compared to net income of $0.8 million or $0.04 per diluted share for Q3 2023 [30] Business Line Data and Key Metrics Changes - Air & Liquid segment revenue was consistent with the prior year for Q3, while year-to-date revenue increased by 13% due to increased shipments of custom air handling units [9] - Forged and Cast Engineered Products segment net sales were $67.2 million for Q3 2024, down from $73.6 million in the same period last year, primarily due to lower rural volumes and reduced shipments [17] - Segment income from operations for Forged and Cast Engineered Products increased to $2.5 million compared to $1.4 million in Q3 2023, reflecting improved pricing and efficiencies [18] Market Data and Key Metrics Changes - Total backlog at September 30, 2024, was $383.6 million, an increase of approximately $4.6 million from December 31, 2023, primarily in the Forged and Cast Engineered Products segment [32] - The rural market in North America and Europe remained flat due to end customer demand, with ongoing headwinds related to competitive pressures and economic uncertainties [20][21] Company Strategy and Development Direction - The company is focused on lowering its debt position and restructuring actions to improve shareholder returns, with targeted actions for further restructuring [38][58] - Investments in capital equipment are contributing to improved operational efficiencies and positioning the company for future growth [19][21] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about growth prospects in the Air & Liquid segment, particularly due to increased demand from the pharmaceutical market and potential opportunities in the nuclear sector [15][14] - The company anticipates low to mid-single-digit volume growth in the Forged and Cast Engineered Products segment for 2025, driven by improved demand and operational efficiencies [19][48] Other Important Information - Capital expenditures for Q3 2024 were $2.9 million, with expectations for full-year 2024 CapEx in the range of $9 million to $10 million [34] - The company has received additional funding from the U.S. Navy to modernize production equipment, which is expected to enhance manufacturing capabilities [11][12] Q&A Session Summary Question: Long-term visibility and restructuring plans - Management indicated that they have targeted actions for restructuring and are focused on lowering the debt position, with expectations to execute significant solutions within the next 12 to 24 months [36][38] Question: Impact of fracking on Forged and Engineered products - Management noted that the fracking business and general industrial distribution markets are significant factors affecting revenues, with stable orders expected to increase next year [40] Question: Cash flow dynamics year-to-date - Management confirmed a release of working capital contributing to positive cash flow from operating activities, despite pension contributions affecting the total [46][47] Question: Production capacity for heat exchangers in the nuclear market - Management stated that production capacity constraints are minimal, and they can ramp up production as needed for the nuclear market [43] Question: Onshoring trends and market share - Management confirmed that onshoring has already benefited the company, with increased market share among U.S. customers over the past 18 months [56]

Financial Performance - Total net sales for the three months ended September 30, 2024, were $96,166,000, a decrease of 5.1% compared to $102,218,000 for the same period in 2023[7]. - Net loss attributable to Ampco-Pittsburgh for the three months ended September 30, 2024, was $(1,959,000), compared to a net income of $809,000 for the same period in 2023[7]. - Operating costs and expenses for the three months ended September 30, 2024, totaled $94,296,000, down from $100,496,000 for the same period in 2023, a decrease of 6.2%[7]. - The company reported a net loss of $1,454 thousand for the three months ended September 30, 2024, compared to a net income of $1,235 thousand for the same period in 2023[9]. - Comprehensive income for the three months ended September 30, 2024, was $3,845 thousand, down from $1,124 thousand in the same period of 2023, indicating a decrease of approximately 242%[11]. - Total net sales for the nine months ended September 30, 2024, were $317,369 thousand, slightly up from $314,232 thousand in the previous year, reflecting a 1.0% increase[7]. - The total loss before income taxes for the three months ended September 30, 2024, was $(818) thousand, compared to income of $1,311 thousand for the same period in 2023[79]. Cash and Liquidity - Cash and cash equivalents increased to $11,844,000 as of September 30, 2024, from $7,286,000 as of December 31, 2023, representing a 62.5% increase[4]. - Net cash flows provided by operating activities for the nine months ended September 30, 2024, were $10,576 thousand, compared to $10,327 thousand for the same period in 2023, reflecting an increase of 2.4%[14]. - Cash flows used in investing activities totaled $6,657 thousand for the nine months ended September 30, 2024, down from $13,515 thousand in 2023, indicating a decrease of 50.7%[14]. - The total cash and cash equivalents at the end of the period increased to $11,844 thousand as of September 30, 2024, compared to $6,070 thousand at the end of September 30, 2023, representing an increase of 95.5%[14]. Assets and Liabilities - Total current assets rose to $238,707,000 as of September 30, 2024, compared to $236,653,000 as of December 31, 2023, reflecting a slight increase of 0.9%[4]. - Total liabilities decreased to $473,737,000 as of September 30, 2024, down from $494,083,000 as of December 31, 2023, indicating a reduction of 4.1%[4]. - The company reported a decrease in accounts payable to $29,772,000 as of September 30, 2024, from $36,830,000 as of December 31, 2023, a decline of 19.1%[4]. - The retained deficit increased to $(75,661,000) as of September 30, 2024, compared to $(72,997,000) as of December 31, 2023[4]. - Total shareholders' equity rose to $73,676,000 as of September 30, 2024, compared to $71,571,000 as of December 31, 2023, an increase of 2.9%[4]. Segment Performance - Net sales for Forged and Cast Engineered Products were $67,203 thousand for the three months ended September 30, 2024, compared to $73,625 thousand for the same period in 2023, representing a decrease of approximately 8.5%[79]. - The Air and Liquid Processing segment reported net sales of $28,963 thousand for the three months ended September 30, 2024, an increase of approximately 3.0% from $28,593 thousand in the same period of 2023[79]. - Forged and Cast Engineered Products segment reported income before income taxes of $2,456 thousand for the three months ended September 30, 2024, up from $1,448 thousand in the same period of 2023, an increase of approximately 69.5%[79]. - Air and Liquid Processing segment reported income before income taxes of $3,134 thousand for the three months ended September 30, 2024, down from $3,456 thousand in the same period of 2023, a decrease of about 9.3%[79]. Claims and Legal Matters - The Corporation is involved in various claims and lawsuits, including asbestos litigation, which may impact future financial performance[56]. - Total claims pending at the end of the period increased to 6,324 in 2024 from 6,291 in 2023, reflecting a rise of approximately 0.5%[60]. - New claims served decreased to 950 in 2024 from 984 in 2023, a decline of about 3.5%[60]. - Gross settlement and defense costs paid increased to $18,610, up from $16,221 in 2023, representing an increase of approximately 14.7%[60]. - The estimated Asbestos Liability at the end of the period was $220,069 in 2024, up from $137,354 in 2023, reflecting an increase of approximately 60%[65]. - Insurance receivable for asbestos at the end of the period was $146,404 in 2024, compared to $96,393 in 2023, an increase of approximately 52%[66]. Pension and Benefits - Contributions to U.S. defined benefit pension plans amounted to $4,641 for the nine months ended September 30, 2024, compared to $207 for the same period in 2023[35]. - The Corporation's net periodic pension and other postretirement benefit costs included a service cost of $22 for the nine months ended September 30, 2024, down from $29 for the same period in 2023[36]. - The Corporation's interest cost for U.S. defined benefit pension plans was $6,988 for the nine months ended September 30, 2024, down from $7,450 for the same period in 2023[36]. Other Financial Metrics - The average interest rate on the revolving credit facility was approximately 8.26% for the three months ended September 30, 2024, compared to 8.32% for the same period in 2023[29]. - The Corporation's long-term debt stood at $116,010 million as of September 30, 2024, slightly down from $116,382 million on December 31, 2023[27]. - The Corporation was in compliance with all applicable bank covenants as of September 30, 2024[29]. - The Corporation has two Industrial Revenue Bonds (IRBs) outstanding: a $7,116 taxable IRB maturing in 2027 with an average interest rate of 5.40% for the nine months ended September 30, 2024, and a $2,075 tax-exempt IRB maturing in 2029 with an average interest rate of 3.80% for the same period[33].

Financial Performance - Operating income for Q3 2024 was $1.9 million, with year-to-date operating income at $7.0 million, reflecting improved margins in the Forged and Cast Engineered Products segment[1]. - Net sales for Q3 2024 were $96.2 million, a decrease of 5.9% compared to $102.2 million in Q3 2023, primarily due to lower shipment volumes and lower surcharge pass-through revenues[2]. - Year-to-date net sales increased to $317.4 million, up 1.0% from $314.2 million in the same period last year, driven by growth in the Air and Liquid Processing segment[2]. - Income from operations for Q3 2024 improved slightly to $1.9 million compared to $1.7 million in Q3 2023, despite including a $0.2 million recovery from an insolvent insurance carrier in the prior year[3]. - The net loss for Q3 2024 was $(2.0) million, or $(0.10) per diluted share, compared to net income of $0.8 million, or $0.04 per diluted share, in Q3 2023[6]. - Net loss attributable to Ampco-Pittsburgh for the three months ended September 30, 2024, was $(1,959), compared to net income of $809 in the same period of 2023[15]. - Basic net loss per share attributable to Ampco-Pittsburgh common shareholders was $(0.10) for the three months ended September 30, 2024, compared to earnings of $0.04 in the same period of 2023[15]. Segment Performance - Sales for the Forged and Cast Engineered Products segment declined due to lower shipment volumes, although improved base pricing partially offset this decline[7]. - The Air and Liquid Processing segment saw improved sales for the nine months ended September 30, 2024, primarily due to increased shipments from an expanded sales distribution network[9]. - Operating results for the Air and Liquid Processing segment declined due to an unfavorable product mix and higher selling and administrative expenses[10]. - Income from operations for the Forged and Cast Engineered Products segment increased to $2,456 for the three months ended September 30, 2024, from $1,448 in the same period of 2023[16]. - Net sales for the Forged and Cast Engineered Products segment decreased to $67,203 for the three months ended September 30, 2024, from $73,625 in the same period of 2023, representing a decline of 8.5%[17]. - The Air and Liquid Processing segment reported net sales of $28,963 for the three months ended September 30, 2024, a slight increase from $28,593 in the same period of 2023[17]. Costs and Expenses - Total operating costs and expenses for the three months ended September 30, 2024, were $94,296, down from $100,496 in the same period of 2023[15]. - Interest expense increased to $(2,976) for the three months ended September 30, 2024, compared to $(2,468) in the same period of 2023[15]. - The company experienced increased interest expenses due to higher equipment financing debt and average interest rates[4]. - Total other expense — net for the three months ended September 30, 2024, was $(2,688), compared to $(411) in the same period of 2023[15]. Tax and Valuation - The income tax provision increased due to the establishment of a valuation allowance on net deferred tax assets in the U.K. operations, reflecting a three-year cumulative loss history[5]. Shareholder Information - The weighted-average number of common shares outstanding for the three months ended September 30, 2024, was 19,980, compared to 19,729 in the same period of 2023[15].