TimkenSteel(TMST) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 were $227.2 million, a decrease of 23% from $294.7 million in Q2 2024 and a 36% decrease from $354.2 million in Q3 2023[1][2][3]. - The company reported a net loss of $5.9 million for Q3 2024, compared to a net income of $4.6 million in Q2 2024 and $24.8 million in Q3 2023[1][2][3]. - Adjusted EBITDA for Q3 2024 was $6.1 million, down from $19.9 million in Q2 2024 and $46.8 million in Q3 2023[1][2][3]. - Net sales for the three months ended September 30, 2024, were $227.2 million, a decrease of 35.8% compared to $354.2 million for the same period in 2023[19]. - Gross profit for the nine months ended September 30, 2024, was $86.8 million, down 40.2% from $145.1 million for the same period in 2023[19]. - Net income for the three months ended September 30, 2024, was a loss of $5.9 million, compared to a profit of $24.8 million for the same period in 2023[19]. - Basic earnings per share for the three months ended September 30, 2024, were $(0.13), compared to $0.56 for the same period in 2023[19]. - The net income for the three months ended September 30, 2024, was a loss of $5.9 million, resulting in a net income margin of -2.6%, compared to a profit of $24.8 million and a margin of 7.0% in the same quarter of 2023[33]. - The adjusted EBITDA for the nine months ended September 30, 2024, was $69.4 million, with an adjusted EBITDA margin of 8.2%, compared to $133.3 million and 12.9% in 2023[33]. Liquidity and Capital Expenditures - Total liquidity as of September 30, 2024, was $496.8 million, with cash and cash equivalents at $254.6 million[1][8]. - The company invested $17.6 million in capital expenditures and repurchased $20.1 million worth of shares in Q3 2024[1][10]. - Capital expenditures for 2024 are expected to be approximately $65 million, including $15 million funded by the U.S. government[12]. - Cash and cash equivalents were $254.6 million as of September 30, 2024, down from $280.6 million as of December 31, 2023[20]. - The company had cash and cash equivalents of $254.6 million as of September 30, 2024, compared to $280.6 million at the end of 2023[46]. Shipments and Sales Segments - Ship tons decreased by 30,200 tons sequentially to 119,900 tons, a 20% decline, primarily due to lower aerospace & defense and automotive shipments[6][7]. - The company shipped a total of 175.8 thousand tons in Q3 2024, compared to 205.9 thousand tons in Q3 2023, indicating a decline in shipment volume[38]. - Base sales for the Industrial segment were $104.7 million, while Automotive segment base sales were $106.0 million for the same period[39]. - Base sales for the Aerospace & Defense segment were $25.6 million, while Energy segment base sales were $26.5 million for Q3 2024[39]. - The company reported surcharges of $86.6 million included in net sales for the three months ended September 30, 2024[39]. - The average net sales per ton for the total was $2,015, with the Industrial segment at $2,028 per ton and the Automotive segment at $1,771 per ton[40]. Expenses and Adjustments - The company incurred selling, general, and administrative expenses of $22.5 million for the three months ended September 30, 2024, an increase from $20.5 million for the same period in 2023[19]. - Free cash flow for the three months ended September 30, 2024, was $(27.1) million, a decrease from $10.6 million in the same period of 2023[23]. - The company incurred $5.8 million in capital spending related to the project funded by the United States Army, which is excluded from free cash flow calculations[22]. - Stock-based compensation expense increased to $3.5 million for the three months ended September 30, 2024, compared to $3.0 million in the same period of 2023[21]. - Business transformation costs for the nine months ended September 30, 2024, amounted to $1.5 million, while IT transformation costs were $3.4 million[29]. Funding and Agreements - The company received $35.5 million from the U.S. Army as part of a $99.75 million funding agreement to support munitions production[9]. - The company generated $35.5 million in funding proceeds from the United States Army during the third quarter of 2024, contributing to a total of $99.75 million in obligated funding[22].