Ampco-Pittsburgh Corporation (NYSE:AP) Q3 2021 Earnings Conference Call November 4, 2021 10:30 AM ET Company Participants Melanie Sprowson - Director, Investor Relations Brett McBrayer - Chief Executive Officer Mike McAuley - Senior Vice President, Chief Financial Officer and Treasurer Sam Lyon - President, Union Electric Steel Corporation Terry Kenny - President, Air & Liquid Systems Corporation Conference Call Participants David Wright - Henry Investment Trust Justin Bergner - Gabelli Funds George Melas-K ...

Ampco-Pittsburgh Corp (NYSE:AP) Q1 2021 Earnings Conference Call August 10, 2021 10:30 AM ET Company Participants Melanie Sprowson - Director, IR & Corporate Secretary Brett McBrayer - CEO & Director Terrence Kenny - President, Air & Liquid Systems Corporation Samuel Lyon - President, Union Electric Steel Corporation Michael McAuley - SVP, CFO & Treasurer Conference Call Participants David Wright - Henry Investment Trust Justin Bergner - Gabelli Funds Operator Good day, and welcome to the Ampco-Pittsburgh C ...

Financial Performance - Net sales for the three months ended June 30, 2021, were $92,428,000, an increase of 23.5% compared to $74,778,000 for the same period in 2020[9]. - Net income attributable to Ampco-Pittsburgh for the three months ended June 30, 2021, was $1,063,000, compared to $668,000 for the same period in 2020, representing a 59.1% increase[9]. - The company reported operating costs and expenses of $91,959,000 for the three months ended June 30, 2021, up from $74,864,000 in the same period of 2020, marking a 22.8% increase[9]. - Basic net income per share attributable to Ampco-Pittsburgh common shareholders for the three months ended June 30, 2021, was $0.06, compared to $0.05 for the same period in 2020[9]. - Comprehensive income for the three months ended June 30, 2021, was $2,861,000, compared to $4,618,000 for the same period in 2020[12]. - For the three months ended June 30, 2021, net income was $1,224 thousand, compared to $861 thousand for the same period in 2020, representing a 42.2% increase[15]. - The total comprehensive income for the six months ended June 30, 2021, was $2,717 thousand, up from $4,823 thousand for the same period in 2020, indicating a decrease of 43.6%[15]. Assets and Liabilities - Total current assets increased to $185,953,000 as of June 30, 2021, from $171,832,000 as of December 31, 2020, reflecting an increase of 8.2%[6]. - Total liabilities decreased slightly to $377,346,000 as of June 30, 2021, from $378,209,000 as of December 31, 2020, a reduction of 0.2%[6]. - The company’s total shareholders' equity increased to $91,608,000 as of June 30, 2021, from $84,999,000 as of December 31, 2020, an increase of 7.5%[6]. - Cash and cash equivalents decreased to $13,313,000 as of June 30, 2021, from $16,842,000 as of December 31, 2020, a decline of 20.0%[6]. - As of June 30, 2021, total inventories increased to $78.935 million from $73.243 million as of December 31, 2020, representing a growth of approximately 7.5%[29]. - Property, plant, and equipment net value decreased to $158.621 million as of June 30, 2021, from $162.098 million as of December 31, 2020, a decline of about 2.9%[31]. - Intangible assets net value decreased to $6.654 million as of June 30, 2021, from $7.217 million as of December 31, 2020, a reduction of approximately 7.8%[32]. Cash Flow and Investments - Cash flows from operating activities for the six months ended June 30, 2021, were $(2,754) thousand, a significant decline compared to $31,435 thousand for the same period in 2020[17]. - The company reported a net cash flow used in investing activities of $(6,536) thousand for the six months ended June 30, 2021, compared to $(3,200) thousand for the same period in 2020[17]. - The total cash and cash equivalents at the end of the period on June 30, 2021, were $13,313 thousand, down from $15,874 thousand at the end of June 30, 2020[17]. - The company incurred stock-based compensation of $1,028 thousand for the six months ended June 30, 2021, compared to $477 thousand for the same period in 2020, reflecting a 115.5% increase[15]. Segment Performance - The FCEP segment produces forged hardened steel rolls and cast rolls, primarily serving the steel, aluminum, and other metal industries, with operations in the U.S., England, Sweden, and Slovenia[20]. - The ALP segment includes divisions that manufacture custom-engineered heat exchange coils, air handling systems, and centrifugal pumps, serving various industries including power generation and industrial manufacturing[21]. - Net sales for the Forged and Cast Engineered Products segment increased to $71,028 thousand in Q2 2021 from $50,460 thousand in Q2 2020, representing a growth of 40.9%[86]. - Total reportable segments' net sales reached $92,428 thousand in Q2 2021, up from $74,778 thousand in Q2 2020, marking a 23.5% increase[86]. - Income before income taxes for the total reportable segments improved to $3,736 thousand in Q2 2021 from $2,423 thousand in Q2 2020, reflecting a 54.1% increase[86]. Asbestos Liability - Total active asbestos claims at the end of the six months ended June 30, 2021, were 3,159, a decrease from 6,254 claims at the end of the same period in 2020[76]. - The reserve for Asbestos Liability at June 30, 2021, was $170.78 million, down from $227.92 million at December 31, 2018[81]. - Insurance receivable for asbestos claims at the end of the six months ended June 30, 2021, was $112.28 million, compared to $125.11 million at the end of the same period in 2020[82]. - The average gross settlement and defense costs per claim resolved for the six months ended June 30, 2021, was $20.09 thousand, significantly lower than $47.71 thousand in 2020[76]. - New asbestos claims served during the six months ended June 30, 2021, totaled 642, an increase from 492 claims in the same period of 2020[76]. Debt and Financing - Outstanding borrowings as of June 30, 2021, totaled $40,882 million, an increase of 10% from $37,243 million on December 31, 2020[39]. - The Revolving Credit and Security Agreement had outstanding borrowings of $10,131 million as of June 30, 2021, with an average interest rate of approximately 4% for the six months ended June 30, 2021[41]. - The Corporation's long-term debt increased to $26,613 million as of June 30, 2021, from $24,807 million as of December 31, 2020[39]. - The Corporation's commitments for future capital expenditures, including a significant capital program, approximated $18,400 million as of June 30, 2021[51]. Foreign Sales and Currency - Foreign net sales for the six months ended June 30, 2021, reached $90,854 million, up from $86,054 million in 2020, reflecting a growth of 3.3%[66]. - The corporation hedged approximately $2,362 million of anticipated foreign-denominated sales as of June 30, 2021, with fair value contracts settling through January 2022[57]. - Gains on foreign exchange transactions included in other income for the three months ended June 30, 2021, were $147 million, compared to $633 million for the same period in 2020[58]. - The fair value of foreign currency sales contracts recorded as of June 30, 2021, was $712 million, down from $1,123 million as of December 31, 2020[59]. Stock-Based Compensation - Stock-based compensation expense for the three months ended June 30, 2021, was $482,000, up from $113,000 in the same period of 2020, representing a 326.5% increase[72]. - The company approved an amendment to its 2016 Omnibus Incentive Plan to issue an additional 1.6 million shares, increasing the total authorized shares to 2.7 million[72].

Ampco-Pittsburgh Corporation (NYSE:AP) Q1 2021 Earnings Conference Call May 7, 2021 10:30 AM ET Company Participants Melanie Sprowson - Director, Investor Relations Brett McBrayer - Chief Executive Officer Terry Kenny - President, Air & Liquid Systems Corporation Sam Lyon - President of Union Electric Steel Corporation Mike McAuley - Senior Vice President, Chief Financial Officer & Treasurer Conference Call Participants Justin Bergner - G. Research John Walthausen - Walthausen & Co. David Wright - Henry Inv ...

Financial Performance - Net sales for the three months ended March 31, 2021, were $86,800,000, a decrease of 4% compared to $91,063,000 for the same period in 2020[10] - Income from operations for the first quarter of 2021 was $907,000, down from $4,351,000 in the first quarter of 2020, representing a decline of approximately 79%[10] - Net income attributable to Ampco-Pittsburgh for the three months ended March 31, 2021, was $167,000, a significant decrease of 96% from $4,142,000 in the same period of 2020[10] - For the three months ended March 31, 2021, net income was $314,000, compared to $4,602,000 for the same period in 2020, representing a decrease of approximately 93.2%[16] - Basic net income per share attributable to Ampco-Pittsburgh common shareholders was $0.01 for the first quarter of 2021, down from $0.33 in the first quarter of 2020[10] - Total income before income taxes for reportable segments decreased to $4,158 in Q1 2021 from $7,140 in Q1 2020, a decline of about 41.5%[84] Assets and Liabilities - Total current assets increased to $186,067,000 as of March 31, 2021, compared to $171,832,000 as of December 31, 2020, reflecting an increase of approximately 8%[7] - Total liabilities rose to $382,811,000 as of March 31, 2021, compared to $378,209,000 as of December 31, 2020, indicating a slight increase of about 1.4%[7] - The company’s total assets increased to $471,294,000 as of March 31, 2021, compared to $463,208,000 as of December 31, 2020, reflecting a growth of about 1.3%[7] - Current liabilities rose from $105,332 at December 31, 2020, to $119,138 at March 31, 2021, an increase of about 13.1%[7] - Total outstanding borrowings decreased to $36,493 million as of March 31, 2021, from $37,243 million as of December 31, 2020, a decrease of 2%[41] Cash Flow - Net cash flows provided by operating activities for the three months ended March 31, 2021, were $1,858,000, a decrease from $12,605,000 in the same period of 2020[19] - Cash and cash equivalents increased to $18,251,000 as of March 31, 2021, from $16,842,000 as of December 31, 2020, marking an increase of approximately 8.4%[7] - The company reported a total cash and cash equivalents balance of $18,251,000 at the end of the period, up from $13,942,000 at the end of March 31, 2020[19] Operating Costs - Operating costs and expenses decreased to $85,893,000 for the three months ended March 31, 2021, down from $86,712,000 in the same period of 2020, a reduction of approximately 0.9%[10] - The company incurred interest expense of $895,000 in Q1 2021, down from $1.2 million in Q1 2020, indicating a reduction of 26.5%[10] Segment Performance - The FCEP segment produces forged hardened steel rolls and cast rolls, primarily serving the steel, aluminum, and other metal industries, with operations in the U.S., England, Sweden, and Slovenia[22] - The Air and Liquid Processing segment includes divisions that manufacture custom-engineered heat exchange products and centrifugal pumps for various industries, with operations in Virginia and New York[23] - Forged and Cast Engineered Products segment net sales fell to $63,351 in Q1 2021 from $68,764 in Q1 2020, a decrease of about 7.1%[84] - Air and Liquid Processing segment net sales increased to $23,449 in Q1 2021 from $22,299 in Q1 2020, reflecting a growth of approximately 5.2%[84] Asbestos Liability - Total claims pending related to asbestos litigation at the end of the period were 5,964, down from 6,181 at the end of March 31, 2020[74] - The average gross settlement and defense costs per claim resolved for asbestos claims was $13.63 thousand in the three months ended March 31, 2021, down from $31.99 thousand in the same period of 2020[74] - The Corporation's reserve for Asbestos Liability claims was $227,922 as of December 31, 2018, and decreased to $176,856 by March 31, 2021, indicating a reduction of approximately 22.4%[79] - The insurance receivable related to Asbestos Liability claims was $152,508 at December 31, 2018, and decreased to $115,862 by March 31, 2021, reflecting a decline of about 24.0%[79] COVID-19 Impact - The company is actively monitoring the impact of COVID-19 on its operations and financial condition, with potential long-term disruptions anticipated[25] - The Corporation has taken advantage of provisions from the CARES Act and the American Rescue Plan Act, but the future impact on consolidated financial statements remains uncertain[26] Other Financial Metrics - The Corporation recognized a net of tax amount of $362 million from the amortization of unrecognized employee benefit costs for the three months ended March 31, 2021[57] - The total accumulated other comprehensive loss as of March 31, 2021, was $(69,187) million, compared to $(72,937) million as of March 31, 2020[56] - The Corporation's foreign net sales for the three months ended March 31, 2021, were $42.318 million, a decrease from $51.013 million in the same period of 2020[67]

Financial Data and Key Metrics Changes - The company achieved an operating income of $6.4 million in 2020, a significant improvement of $17.4 million compared to a loss of $10.9 million in 2019 [9] - Net income for 2020 was $8 million, representing a $29 million improvement from a loss of $21 million in 2019, resulting in earnings per share of $0.56 compared to a loss of $1.67 in the previous year [9][23] - Free cash flow from continuing operations was $33.6 million in 2020, and total debt was reduced by approximately $44 million or 47% during the year [10][28] Business Line Data and Key Metrics Changes - The Forged and Cast Engineered Products segment reported net sales of $64.2 million for Q4 2020, a decline of nearly 14% compared to the prior year, primarily due to lower shipment volumes [20][24] - The Air and Liquid Processing segment had net sales of $22.9 million in Q4 2020, which was marginally higher than the prior year period despite the pandemic [20][25] - The segment backlog at the end of 2020 was approximately $246 million, a decline of 23% from $321 million at the end of 2019, mainly due to customer order postponements [26] Market Data and Key Metrics Changes - The company experienced a decrease in orders received for the fourth quarter, particularly in the heat exchanger and air handling businesses, which faced competitive pricing pressures [12] - The backlog for the Air and Liquid Processing segment improved, driven by centrifugal pumps, while the Forged and Cast Engineered Products segment backlog declined due to pandemic-related uncertainties [13][26] Company Strategy and Development Direction - The company is focused on improving shareholder returns while ensuring employee health and safety, with a commitment to reducing workplace injuries [7][8] - Plans for 2021 include cautiously optimistic expectations for increased order activity levels as pandemic impacts subside, alongside ongoing equipment upgrade initiatives to reduce costs and grow revenue [10][45] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenges posed by the pandemic but expressed pride in the team's ability to adapt and maintain operations [7][8] - The company anticipates that customer sentiment for 2021 is strong, with expectations for revenue to be around the midpoint of 2019 and 2020 levels [17] Other Important Information - The company reported a significant reduction in selling and administrative expenses, achieving a 10% year-over-year reduction in Q4 2020 [21] - The cash balance at December 31, 2020, was $16.8 million, with total debt decreasing to $37.2 million [27][28] Q&A Session Summary Question: What was the gross cash balance at December 31? - The cash balance at December 31, 2020, was $16.8 million [31] Question: How much temporary cost reduction should be expected in 2021? - The company has been able to flex down costs primarily related to hourly workers, with expectations for reduced travel expenses moving forward [32][34] Question: What is the progress on the Forged and Cast Engineered Products segment? - The company has seen a return in oil and gas orders, with shipments and backlog already equal to the total shipments for the previous year, indicating strong growth potential [36][37] Question: What was the impact of Navy business on Buffalo Pumps? - The Navy business remained strong and was relatively flat between 2019 and 2020 [41] Question: Can you provide details on the equipment upgrade initiatives? - The company is actively placing orders for equipment upgrades and is focused on expediting these improvements to enhance the Forged and Cast Engineered Products segment [45]

Ampco-Pittsburgh Corporation (NYSE:AP) Q3 2020 Earnings Conference Call November 17, 2020 10:30 AM ET Company Participants Melanie Sprowson - Director, Investor Relations Brett McBrayer - Chief Executive Officer Terry Kenny - President, Air & Liquid Systems Corporation Sam Lyon - President, Union Electric Steel Corporation Mike McAuley - Chief Financial Officer Conference Call Participants Justin Bergner - G.research, LLC David Wright - Henry Investment Trust, L.P. Brian Powers - Crawford United Corporation ...