Workflow
Metallus(MTUS) - 2023 Q4 - Annual Results
MTUSMetallus(MTUS)2024-02-27 21:15

Net Sales Performance - Q4 2023 net sales of 328.1million,a7328.1 million, a 7% decrease from Q3 2023's 354.2 million, primarily due to lower shipments and raw material surcharge revenue[11] - Full-year 2023 net sales increased 2% to 1.4billion,drivenbyhigherbasesalesprices,partiallyoffsetbylowerrawmaterialsurchargerevenueandshipments[12]−NetsalesforQ42023increasedto1.4 billion, driven by higher base sales prices, partially offset by lower raw material surcharge revenue and shipments[12] - Net sales for Q4 2023 increased to 328.1 million, up 33.7% from 245.4millioninQ42022[26]−Full−yearnetsalesfor2023reached245.4 million in Q4 2022[26] - Full-year net sales for 2023 reached 1,362.4 million, a 2.4% increase from 1,329.9millionin2022[26]−NetsalesforQ12023were1,329.9 million in 2022[26] - Net sales for Q1 2023 were 323.5 million, down 8.1% from 352.0millioninQ12022,withbasesalesdeclining1.1352.0 million in Q1 2022, with base sales declining 1.1% to 240.7 million[66] - Full-year 2023 net sales reached 1,362.4million,a2.41,362.4 million, a 2.4% increase from 1,329.9 million in 2022, with base sales growing 11.8% to 1,022.1million[67]NetIncomeandProfitability−Q42023netincomeof1,022.1 million[67] Net Income and Profitability - Q4 2023 net income of 1.3 million, compared to a net loss of 33.2millioninQ42022[4]−Full−year2023netincomeof33.2 million in Q4 2022[4] - Full-year 2023 net income of 69.4 million, up from 65.1millionin2022[10]−NetincomeforQ42023was65.1 million in 2022[10] - Net income for Q4 2023 was 1.3 million, compared to a net loss of 33.2millioninQ42022[26]−Full−yearnetincomefor2023increasedto33.2 million in Q4 2022[26] - Full-year net income for 2023 increased to 69.4 million, up 6.6% from 65.1millionin2022[26]−NetincomeforQ42023was65.1 million in 2022[26] - Net income for Q4 2023 was 1.3 million, compared to a net loss of 33.2millioninQ42022[30]−AdjustednetincomeforQ42023was33.2 million in Q4 2022[30] - Adjusted net income for Q4 2023 was 16.5 million, compared to an adjusted net loss of 4.6millioninQ42022[35]−AdjustednetincomefortheyearendedDecember31,2023was4.6 million in Q4 2022[35] - Adjusted net income for the year ended December 31, 2023 was 89.8 million, compared to 94.2millionin2022[44]−Netincomemarginfor2023was5.194.2 million in 2022[44] - Net income margin for 2023 was 5.1%, up from 4.9% in 2022[53] EBITDA and Adjusted EBITDA - Q4 2023 adjusted EBITDA of 35.7 million, down from 46.8millioninQ32023[2][3]−Full−year2023adjustedEBITDAof46.8 million in Q3 2023[2][3] - Full-year 2023 adjusted EBITDA of 169.0 million, slightly down from 172.2millionin2022[10]−AdjustedEBITDAforfull−year2023was172.2 million in 2022[10] - Adjusted EBITDA for full-year 2023 was 169 million, slightly down from 172millionin2022,withprice/mixcontributing172 million in 2022, with price/mix contributing 88 million to the change[72] - Adjusted EBITDA for 2023 was 169.0million,withamarginof12.4169.0 million, with a margin of 12.4%, slightly lower than 172.2 million and 12.9% margin in 2022[53] Cash Flow and Liquidity - Q4 2023 operating cash flow of 74.1million,withfull−yearoperatingcashflowof74.1 million, with full-year operating cash flow of 125.3 million[13] - Total liquidity of 539.4millionasofDecember31,2023,including539.4 million as of December 31, 2023, including 280.6 million in cash and cash equivalents[13] - Cash and cash equivalents as of December 31, 2023, stood at 280.6million,up9.1280.6 million, up 9.1% from 257.2 million in 2022[29] - Net cash provided by operating activities for Q4 2023 was 74.1million,upfrom74.1 million, up from 23.7 million in Q4 2022[30] - Free cash flow for Q4 2023 was 58.7million,comparedto58.7 million, compared to 12.3 million in Q4 2022[32] - Total cash, cash equivalents, and restricted cash at the end of Q4 2023 was 281.3million,upfrom281.3 million, up from 257.8 million at the end of Q4 2022[30] - Total liquidity increased to 539.4millionin2023,upfrom539.4 million in 2023, up from 490.7 million in 2022, driven by higher cash and cash equivalents and available borrowing capacity[70] Segment Performance - Aerospace & defense net sales increased 44% to 115.0millionin2023,representing8115.0 million in 2023, representing 8% of consolidated net sales[12] - Aerospace & Defense segment was separated from the Industrial segment in Q4 2023 for better visibility into growth areas, with retrospective adjustments applied for comparability[61] - Total Ship Tons in Q4 2023 reached 157.6 thousand, with Net Sales of 328.1 million, up from 128.3 thousand Ship Tons and 245.4 million Net Sales in Q4 2022[63] - Aerospace & Defense segment showed significant growth, with Ship Tons increasing from 7.0 thousand in Q4 2022 to 18.5 thousand in Q4 2023, and Net Sales rising from 24.9 million to 44.1million[63]−BaseSalesperToninQ42023were44.1 million[63] - Base Sales per Ton in Q4 2023 were 1,658, up from 1,488 in Q4 2022, driven by strong performance in Aerospace & Defense (2,065 per Ton) and Energy (1,961perTon)[63]−AutomotivesegmentShipTonsremainedstableat67.4thousandinQ42023,withNetSalesincreasingto1,961 per Ton)[63] - Automotive segment Ship Tons remained stable at 67.4 thousand in Q4 2023, with Net Sales increasing to 127.1 million from 112.1millioninQ42022[63]−IndustrialsegmentShipTonsgrewto58.7thousandinQ42023,upfrom40.5thousandinQ42022,withNetSalesrisingto112.1 million in Q4 2022[63] - Industrial segment Ship Tons grew to 58.7 thousand in Q4 2023, up from 40.5 thousand in Q4 2022, with Net Sales rising to 118.0 million from 74.6million[63]−EnergysegmentShipTonsremainedsteadyat13.0thousandinQ42023,withNetSalesincreasingto74.6 million[63] - Energy segment Ship Tons remained steady at 13.0 thousand in Q4 2023, with Net Sales increasing to 32.7 million from 29.3millioninQ42022[63]−NetSalesperToninQ42023were29.3 million in Q4 2022[63] - Net Sales per Ton in Q4 2023 were 2,082, up from 1,913 in Q4 2022, driven by higher pricing and product mix improvements[63] - Aerospace & Defense segment Net Sales per Ton surged to 2,384 in Q4 2023, up from 3,557 in Q4 2022, reflecting strong demand and pricing power[63] - Aerospace & Defense segment net sales per ton increased to 2,486 in Q1 2023, up 12.7% from 2,261inQ12022[66]−Energysegmentnetsalespertonroseto2,261 in Q1 2022[66] - Energy segment net sales per ton rose to 2,387 in 2023, a 10.3% increase from 2,165in2022[67]−Automotivesegmentshiptonsdecreasedto80.4thousandinQ12023,down9.62,165 in 2022[67] - Automotive segment ship tons decreased to 80.4 thousand in Q1 2023, down 9.6% from 88.9 thousand in Q1 2022[66] - Industrial segment base sales per ton grew to 1,459 in 2023, up 16.0% from 1,258in2022[67]CostsandExpenses−SurchargesperToninQ42023were1,258 in 2022[67] Costs and Expenses - Surcharges per Ton in Q4 2023 were 424, slightly down from 425inQ42022,reflectingstablepricingadjustmentsacrosssegments[63]−Surchargespertonacrossallsegmentsaveraged425 in Q4 2022, reflecting stable pricing adjustments across segments[63] - Surcharges per ton across all segments averaged 479 in Q1 2023, a 13.4% decrease from 553inQ12022[66]−ManufacturingcostsnegativelyimpactedAdjustedEBITDAby553 in Q1 2022[66] - Manufacturing costs negatively impacted Adjusted EBITDA by 21 million in 2023 compared to 2022[72] - Pension and postretirement expense for Q4 2023 was 40.7million,comparedto40.7 million, compared to 4.2 million in Q4 2022[30] - The company incurred 0.5millioninrebrandingcostsinQ42023relatedtoitsnamechangetoMetallusInc.[38]−ITtransformationcostswere0.5 million in rebranding costs in Q4 2023 related to its name change to Metallus Inc.[38] - IT transformation costs were 4.3 million in 2023, primarily related to professional service fees for technology modernization[46][56] - Rebranding costs in 2023 were 1.0million,associatedwiththecompany′snamechangetoMetallusInc.[47][56]InsuranceRecoveriesandOtherItems−Thecompanyrecognizeda1.0 million, associated with the company's name change to Metallus Inc.[47][56] Insurance Recoveries and Other Items - The company recognized a 20.0 million insurance recovery in Q4 2023 related to unplanned downtime at the Faircrest melt shop in 2022[38] - The company recognized an insurance recovery of 31.3millionin2023relatedtounplannedoperationaldowntimein2022[47][57]ShareholderEquityandAssets−Totalassetsincreasedto31.3 million in 2023 related to unplanned operational downtime in 2022[47][57] Shareholder Equity and Assets - Total assets increased to 1,175.3 million in 2023, up 8.6% from 1,082.0millionin2022[29]−Totalcurrentliabilitiesroseto1,082.0 million in 2022[29] - Total current liabilities rose to 248.4 million in 2023, up 33.0% from 186.7millionin2022[29]−Shareholders′equityincreasedto186.7 million in 2022[29] - Shareholders' equity increased to 731.6 million in 2023, up 6.6% from 686.5millionin2022[29]EarningsPerShare−AdjusteddilutedearningspershareforQ42023was686.5 million in 2022[29] Earnings Per Share - Adjusted diluted earnings per share for Q4 2023 was 0.36, compared to an adjusted diluted loss per share of 0.10inQ42022[35]−Adjusteddilutedearningspersharefor2023was0.10 in Q4 2022[35] - Adjusted diluted earnings per share for 2023 was 1.91, slightly higher than 1.87in2022[44]−Totaldilutedweightedaveragesharesoutstandingfor2023was47.8million,downfrom51.5millionin2022[44][50]CapitalExpenditures−CapitalexpendituresforQ42023were1.87 in 2022[44] - Total diluted weighted average shares outstanding for 2023 was 47.8 million, down from 51.5 million in 2022[44][50] Capital Expenditures - Capital expenditures for Q4 2023 were 15.4 million, up from 11.4millioninQ42022[30]EBITandMargins−EBITfor2023was11.4 million in Q4 2022[30] EBIT and Margins - EBIT for 2023 was 89.3 million, with an EBIT margin of 6.6%, compared to 97.7millionand7.397.7 million and 7.3% margin in 2022[53] - Adjusted EBIT margin for 2023 was 8.3%, compared to 8.6% in 2022[53] Gross Profit - Gross profit for Q4 2023 was 41.4 million, a significant improvement from a loss of 20.3millioninQ42022[26]−Full−yeargrossprofitfor2023roseto20.3 million in Q4 2022[26] - Full-year gross profit for 2023 rose to 186.5 million, up 47.2% from 126.7millionin2022[26]FutureOutlook−Q12024adjustedEBITDAexpectedtobeslightlylowerthanQ42023′s126.7 million in 2022[26] Future Outlook - Q1 2024 adjusted EBITDA expected to be slightly lower than Q4 2023's 35.7 million[15]