TimkenSteel(TMST) - 2024 Q1 - Quarterly Results

Financial Performance - First-quarter 2024 net sales were $321.6 million, a decrease of 2% from $328.1 million in the fourth quarter of 2023[9]. - Net income for the first quarter of 2024 was $24.0 million, or $0.52 per diluted share, compared to $1.3 million, or $0.03 per diluted share in the fourth quarter of 2023[2][3]. - Adjusted EBITDA for the first quarter of 2024 was $43.4 million, up from $35.7 million in the fourth quarter of 2023[2][3]. - Net sales for the three months ended March 31, 2024, were $321.6 million, a slight decrease of 0.6% from $323.5 million in the same period of 2023[27]. - Gross profit increased to $50.6 million, representing a 25.0% increase compared to $40.4 million in the prior year[27]. - Net income for Q1 2024 was $24.0 million, up 66.7% from $14.4 million in Q1 2023, resulting in basic earnings per share of $0.55, compared to $0.33 in the previous year[27]. - Free cash flow for the three months ended March 31, 2024, was $16.0 million, a significant improvement from a negative $0.8 million in the same period of 2023[33]. - The adjusted net income for the same period was $26.1 million, with adjusted diluted earnings per share of $0.56, up from $20.8 million and $0.44 in the prior year, indicating a 25.5% increase in adjusted net income[35]. - The company's EBIT for Q1 2024 was $27.2 million, with an EBIT margin of 8.5%, compared to $16.7 million and 5.2% in Q1 2023, reflecting a significant improvement in operational efficiency[43]. - EBITDA for the three months ended March 31, 2024, was reported at $40.6 million, with an EBITDA margin of 12.6%, compared to $31.2 million and 9.6% in the same quarter of the previous year, showing a strong growth in earnings before interest, taxes, depreciation, and amortization[43]. - The net income margin for Q1 2024 was 7.5%, an increase from 4.5% in Q1 2023, indicating improved profitability relative to sales[43]. - Adjusted EBITDA for Q1 2024 was $43.4 million, with an adjusted EBITDA margin of 13.5%, compared to $36.0 million and 11.1% in Q1 2023, reflecting enhanced operational performance[43]. Operational Metrics - Ship tons for the first quarter were 155,200, a decrease of 2,400 tons or 2% sequentially, and a 10% decrease compared to the prior-year first quarter[9][10]. - The average melt utilization rate improved to 72% in the first quarter, compared to 58% in the fourth quarter of 2023[10]. - For the second quarter of 2024, adjusted EBITDA is expected to be lower than in the first quarter, with shipments anticipated to be similar[16][17]. - Total assets decreased to $1,165.8 million as of March 31, 2024, down from $1,175.3 million at the end of 2023[30]. - Total liabilities decreased to $426.5 million from $443.7 million at the end of 2023, indicating improved financial stability[30]. - Accounts receivable increased to $120.0 million, up from $113.2 million in the previous quarter, indicating a potential increase in sales activity[30]. - The company reported a loss on extinguishment of debt of $0.0 million in Q1 2024, compared to a loss of $11.4 million in Q1 2023, reflecting improved debt management[27]. - Selling, general & administrative expenses (SG&A) rose to $24.1 million, an increase of 14.8% from $21.0 million in the same period last year[27]. - The company incurred business transformation costs of $0.3 million in Q1 2024, up from $0.1 million in Q1 2023, indicating ongoing investments in strategic initiatives[43]. - IT transformation costs amounted to $1.3 million in Q1 2024, compared to $0.8 million in the same period last year, highlighting the company's focus on technology modernization[43]. - The company recognized insurance recoveries of $9.8 million in Q1 2023 related to prior year claims, which were closed as of Q1 2024, impacting the financial results positively[47]. Shareholder Returns and Capital Management - The company authorized an additional $100 million share repurchase program on May 6, 2024, reflecting confidence in its ability to generate profitability[13]. - Planned capital expenditures for 2024 are approximately $60 million, consistent with previous guidance[20]. - Required pension contributions are estimated at $6 million for the second quarter, with an additional $12 million expected in the second half of 2024[20]. - Total liquidity as of March 31, 2024, was $549.0 million, up from $539.4 million as of December 31, 2023[54]. - Cash and cash equivalents at the end of the period were $278.6 million, slightly down from $281.3 million at the beginning of the period[31]. - Cash and cash equivalents as of March 31, 2024, were $278.1 million, slightly down from $280.6 million as of December 31, 2023[54]. Company Rebranding - The company announced a name change to Metallus Inc. during Q1 2024, incurring rebranding costs of $0.3 million, which is part of its strategic repositioning efforts[46].