Net Sales Performance - Q4 2023 net sales of $328.1 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 $1.4 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 $245.4 million in Q4 2022[26] - Full-year net sales for 2023 reached $1,362.4 million, a 2.4% increase from $1,329.9 million in 2022[26] - Net sales for Q1 2023 were $323.5 million, down 8.1% from $352.0 million in Q1 2022, with base sales declining 1.1% to $240.7 million[66] - Full-year 2023 net sales reached $1,362.4 million, a 2.4% increase from $1,329.9 million in 2022, with base sales growing 11.8% to $1,022.1 million[67] Net Income and Profitability - Q4 2023 net income of $1.3 million, compared to a net loss of $33.2 million in Q4 2022[4] - Full-year 2023 net income of $69.4 million, up from $65.1 million in 2022[10] - Net income for Q4 2023 was $1.3 million, compared to a net loss of $33.2 million in Q4 2022[26] - Full-year net income for 2023 increased to $69.4 million, up 6.6% from $65.1 million in 2022[26] - Net income for Q4 2023 was $1.3 million, compared to a net loss of $33.2 million in Q4 2022[30] - Adjusted net income for Q4 2023 was $16.5 million, compared to an adjusted net loss of $4.6 million in Q4 2022[35] - Adjusted net income for the year ended December 31, 2023 was $89.8 million, compared to $94.2 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 $46.8 million in Q3 2023[2][3] - Full-year 2023 adjusted EBITDA of $169.0 million, slightly down from $172.2 million in 2022[10] - Adjusted EBITDA for full-year 2023 was $169 million, slightly down from $172 million in 2022, with price/mix contributing $88 million to the change[72] - Adjusted EBITDA for 2023 was $169.0 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 $74.1 million, with full-year operating cash flow of $125.3 million[13] - Total liquidity of $539.4 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 $280.6 million, up 9.1% from $257.2 million in 2022[29] - Net cash provided by operating activities for Q4 2023 was $74.1 million, up from $23.7 million in Q4 2022[30] - Free cash flow for Q4 2023 was $58.7 million, compared to $12.3 million in Q4 2022[32] - Total cash, cash equivalents, and restricted cash at the end of Q4 2023 was $281.3 million, up from $257.8 million at the end of Q4 2022[30] - Total liquidity increased to $539.4 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 $115.0 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 $44.1 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 ($1,961 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 $112.1 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 $74.6 million[63] - Energy segment Ship Tons remained steady at 13.0 thousand in Q4 2023, with Net Sales increasing to $32.7 million from $29.3 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 $2,261 in Q1 2022[66] - Energy segment net sales per ton rose to $2,387 in 2023, a 10.3% increase from $2,165 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 $1,258 in 2022[67] Costs and Expenses - Surcharges per Ton in Q4 2023 were $424, slightly down from $425 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 $553 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 $40.7 million, compared to $4.2 million in Q4 2022[30] - The company incurred $0.5 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 $1.0 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 $31.3 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 $1,082.0 million in 2022[29] - Total current liabilities rose to $248.4 million in 2023, up 33.0% from $186.7 million in 2022[29] - Shareholders' equity increased to $731.6 million in 2023, up 6.6% from $686.5 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 $0.10 in Q4 2022[35] - Adjusted diluted earnings per share for 2023 was $1.91, slightly higher than $1.87 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 $11.4 million in Q4 2022[30] EBIT and Margins - EBIT for 2023 was $89.3 million, with an EBIT margin of 6.6%, compared to $97.7 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 $20.3 million in Q4 2022[26] - Full-year gross profit for 2023 rose to $186.5 million, up 47.2% from $126.7 million in 2022[26] Future Outlook - Q1 2024 adjusted EBITDA expected to be slightly lower than Q4 2023's $35.7 million[15]
Metallus(MTUS) - 2023 Q4 - Annual Results