- Net sales of $245.4 million in
the fourth-quarter and $1.3 billion
for the full-year
- Fourth-quarter net loss of $33.2
million and full-year net income of $65.1 million with adjusted EBITDA(1)
of $11.9 million in the
fourth-quarter and $172.2 million for
the full-year
- Operating cash flow of $23.7
million in the fourth quarter with $134.5 million for the full-year
CANTON,
Ohio, Feb. 23, 2023 /PRNewswire/ -- TimkenSteel
(NYSE: TMST), a leader in high-quality specialty steel,
manufactured components and supply chain solutions, today reported
fourth-quarter 2022 net sales of $245.4
million and a net loss of $33.2
million, or a loss of $0.75
per diluted share. On an adjusted basis(1), the
fourth-quarter 2022 net loss was $4.6
million, or a loss of $0.10
per diluted share, and adjusted EBITDA was $11.9 million.
This compares with the company's sequential third-quarter 2022
net sales of $316.8 million and a net
loss of $13.3 million, or a loss of
$0.29 per diluted share. On an
adjusted basis(1), the third-quarter 2022 net loss was
$4.1 million, or a loss of
$0.09 per diluted share, and adjusted
EBITDA was $10.8 million.
Fourth-quarter 2021 net sales were $338.3
million with net income of $57.1
million, or $1.07 per diluted
share. On an adjusted basis(1), the fourth-quarter 2021
net income was $42.3 million, or
$0.80 per diluted share, and adjusted
EBITDA was $62.1 million.
"In the first half of 2022, we achieved record profitability and
solid operating cash flow. As expected, our success was attributed
to the execution of our strategic imperatives including our
commercial focus on high-value end markets supported by a strong
demand and base pricing environment," said Mike Williams, president and chief executive
officer. "However, safety performance, production output and
profitability were disappointing in the second half of the year. As
an organization, we remain committed to improving our safety
culture and performance. As we continue to ramp up production, we
are focused on enhancing our manufacturing excellence and asset
reliability programs. Looking ahead for the remainder of 2023, we
expect to make further progress on our strategic imperatives and
anticipate end market demand and base pricing to remain healthy
while our balance sheet remains strong."
FOURTH-QUARTER 2022 FINANCIAL SUMMARY
- Net sales of $245.4
million decreased 23 percent compared with $316.8 million in the third quarter 2022. The
decrease in net sales was primarily related to a market-driven
reduction in surcharge revenue per ton as a result of lower scrap
and alloy prices, as well as the impact from lower shipments.
Partially offsetting these items were favorable product mix and
higher base sales(1) prices. Compared with the
prior-year fourth quarter, the decrease in net sales was driven
primarily by lower shipments and a reduction in surcharge revenue
per ton as a result of lower scrap prices, partially offset by
higher base sales(1) prices and favorable product
mix.
- Ship tons of 128,300 decreased 30,200 tons sequentially,
or 19 percent, driven by lower shipments across all end markets.
Compared with the prior-year fourth quarter, ship tons decreased 35
percent as a result of lower industrial and mobile shipments.
Customer demand remained solid throughout the fourth quarter;
however, shipments were negatively impacted by the availability of
inventory for shipment following unplanned downtime.
- Manufacturing costs increased slightly on a sequential
basis in the fourth quarter while melt utilization improved to 47
percent from 40 percent in the third quarter. Fourth-quarter melt
utilization and related cost absorption remained challenged as a
result of the ongoing production ramp up following planned and
unplanned downtime. Compared with the prior-year fourth quarter,
manufacturing costs increased $43.2
million. The increase was primarily driven by lower cost
absorption given the 47 percent melt utilization rate compared with
71 percent in the same quarter last year. Manufacturing costs were
also higher due to the inflationary cost environment, as well as
increased maintenance and outside contractor costs.
- SG&A expense was $17.4
million, a $1.2 million
sequential increase primarily driven by higher variable
compensation expense. SG&A expense increased $0.6 million when compared to the prior-year
fourth quarter.
- Other income included an insurance recovery of
$33.0 million recognized in the
fourth quarter related to the recovery of certain costs associated
with unplanned downtime in the second half of 2022, of which
$13.0 million was received in the
fourth quarter and $20.0 million was
collected in the first quarter 2023.
- Income tax expense in the fourth quarter was
$28.9 million, as the company
released a portion of its income tax valuation allowance due to
consecutive years of positive net income and the utilization of the
majority of loss carryforwards generated in prior years.
(1)
Please see discussion of non-GAAP financial measures in this
news release.
|
FULL-YEAR 2022 FINANCIAL SUMMARY
Net income for the full-year 2022 was $65.1 million, or $1.30 per diluted share, compared with net income
of $171.0 million, or $3.18 per diluted share, for the full-year 2021.
On an adjusted basis(1), full-year 2022 net income was
$94.2 million, or $1.87 per diluted share, and adjusted EBITDA was
$172.2 million. In comparison,
full-year 2021 net income on an adjusted basis(1) was
$172.7 million, or $3.21 per diluted share, and adjusted
EBITDA(1) was $245.9
million.
- Net sales of $1.3 billion
increased 4 percent compared with the prior year, driven largely by
a significant increase in base sales(1) prices and
favorable product mix, partially offset by lower industrial and
mobile shipments.
- Ship tons were 692,100, a decrease of 15 percent from
the prior year. Customer demand remained solid throughout 2022;
however, second half shipments were negatively impacted by
availability of inventory for shipment following unplanned
downtime.
- Manufacturing costs increased by $126.2 million compared with 2021 primarily
driven by cost inflation, lower cost absorption and repair costs
associated with unplanned downtime. Melt utilization was 63 percent
in 2022, including 83 percent in the first half and 44 percent in
the second half of the year, compared with 73 percent for the
full-year 2021.
- SG&A expense was $73.8
million compared with $77.2
million in the prior year, a decline of $3.4 million. The decline in SG&A from 2021
was primarily driven by lower variable compensation expense and
savings from prior restructuring actions, partially offset by
information technology transformation project costs.
(1)
Please see discussion of non-GAAP financial measures in this
news release.
|
CASH, LIQUIDITY AND REPURCHASE ACTIVITY
As of December 31, 2022, the
company's cash and cash equivalents balance was $257.2 million. In the fourth quarter, operating
cash flow was $23.7 million,
primarily driven by lower working capital. For the full-year 2022,
the company generated significant operating cash flow of
$134.5 million driven by its
profitability while investing $27.1
million in capital expenditures. Total
liquidity(2) was $490.7
million as of December 31,
2022.
In the fourth quarter, the company repurchased 1.1 million
common shares in the open market at an aggregate cost of
$19.6 million. In total during 2022,
the company repurchased 3.0 million common shares at an aggregate
cost of $52.0 million. As of
December 31, 2022, the company had
$73.0 million remaining on its
existing share repurchase program.
2023 OUTLOOK
Given the elements outlined in the outlook below, the company
expects to report a sequential increase in adjusted EBITDA in the
first quarter 2023.
Commercial:
- Customer demand remains solid with opportunities for further
profitability enhancement through our commercial excellence
initiatives. Our order book is expected to remain full in the first
half of 2023.
- Ship tons are expected to sequentially increase in the first
quarter by 25 percent or greater.
- Annual price agreement negotiations are complete with a
meaningful increase in base prices, compared with 2022 average base
prices, for customers on approximately 70 percent of the 2023 order
book.
Operations:
- The company expects continued improvement in its melt
utilization rate throughout the first quarter with an average melt
utilization rate of approximately 70 percent for the quarter.
- Inflationary pressure is anticipated to remain on certain
commodities and consumables.
Other matters:
- Planned capital expenditures are approximately $45 million in 2023.
- The company continues to seek additional insurance recoveries
related to unplanned downtime in the second half of 2022, although
the timing and amount of potential additional recoveries are
uncertain at this time.
- An effective income tax rate of 15 to 20 percent is expected in
2023.
- Pension expense is expected to increase by approximately
$11 million in 2023 compared with
2022, excluding the impact of remeasurements. Required cash pension
contributions are expected to be minimal in 2023.
(1)
Please see discussion of non-GAAP financial measures in this
news release.
|
(2) The
company defines total liquidity as available borrowing capacity
plus cash and cash equivalents.
|
TIMKENSTEEL EARNINGS WEBCAST INFORMATION
TimkenSteel will provide live Internet listening access to its
conference call with the financial community scheduled for
Friday, February 24, 2023 at
9:00 a.m. ET. The live conference
call will be broadcast at investors.timkensteel.com. A replay of
the conference call will also be available at
investors.timkensteel.com.
ABOUT TIMKENSTEEL CORPORATION
TimkenSteel (NYSE: TMST) manufactures high-performance carbon
and alloy steel products from recycled scrap metal in Canton, OH, serving demanding applications in
mobile, energy and a variety of industrial end markets. The company
is a premier U.S. producer of alloy steel bars (up to 16 inches in
diameter), seamless mechanical tubing and manufactured components.
In the business of making high-quality steel for more than 100
years, TimkenSteel's proven expertise contributes to the
performance of our customers' products. The company employs
approximately 1,700 people and had sales of $1.3 billion in 2022. For more information,
please visit us at www.timkensteel.com.
NON-GAAP FINANCIAL MEASURES
TimkenSteel reports its financial results in accordance with
accounting principles generally accepted in the United States ("GAAP") and corresponding
metrics as non-GAAP financial measures. This earnings release
includes references to the following non-GAAP financial measures:
adjusted earnings (loss) per share, adjusted net income (loss),
EBIT, adjusted EBIT, EBITDA, adjusted EBITDA, free cash flow, base
sales, and other adjusted items. These are important financial
measures used in the management of the business, including
decisions concerning the allocation of resources and assessment of
performance. Management believes that reporting these non-GAAP
financial measures is useful to investors as these measures are
representative of the company's performance and provide improved
comparability of results. See the attached schedules for
definitions of the non-GAAP financial measures referred to above
and corresponding reconciliations of these non-GAAP financial
measures to the most comparable GAAP financial measures. Non-GAAP
financial measures should be viewed as additions to, and not as
alternatives for, TimkenSteel's results prepared in accordance with
GAAP. In addition, the non-GAAP measures TimkenSteel uses may
differ from non-GAAP measures used by other companies, and other
companies may not define the non-GAAP measures TimkenSteel uses in
the same way.
FORWARD-LOOKING STATEMENTS
This news release includes "forward-looking" statements
within the meaning of the federal securities laws. You can
generally identify the company's forward-looking statements by
words such as "will," "anticipate," "aspire," "believe," "could,"
"estimate," "expect," "forecast," "outlook," "intend," "may,"
"plan," "possible," "potential," "predict," "project," "seek,"
"target," "should," "would," "strategy," or "strategic direction"
or other similar words, phrases or expressions that convey the
uncertainty of future events or outcomes. The company cautions
readers that actual results may differ materially from those
expressed or implied in forward-looking statements made by or on
behalf of the company due to a variety of factors, such as: the
potential impact of the COVID-19 pandemic on the company's
operations and financial results, including cash flows and
liquidity; whether the company is able to successfully implement
actions designed to improve profitability on anticipated terms and
timetables and whether the company is able to fully realize the
expected benefits of such actions; deterioration in world economic
conditions, or in economic conditions in any of the geographic
regions in which the company conducts business, including
additional adverse effects from global economic slowdown, terrorism
or hostilities, including political risks associated with the
potential instability of governments and legal systems in countries
in which the company or its customers conduct business, and changes
in currency valuations; the impact of the Russia-Ukraine conflict on the global economy,
sourcing of raw materials, and commodity prices; climate-related
risks, including environmental and severe weather caused by climate
changes, and legislative and regulatory initiatives addressing
global climate change or other environmental concerns; the effects
of fluctuations in customer demand on sales, product mix and prices
in the industries in which the company operates, including the
ability of the company to respond to rapid changes in customer
demand including but not limited to changes in customer operating
schedules due to supply chain constraints, the effects of customer
bankruptcies or liquidations, the impact of changes in industrial
business cycles, and whether conditions of fair trade exist in U.S.
markets; competitive factors, including changes in market
penetration, increasing price competition by existing or new
foreign and domestic competitors, the introduction of new products
by existing and new competitors, and new technology that may impact
the way the company's products are sold or distributed; changes in
operating costs, including the effect of changes in the company's
manufacturing processes, changes in costs associated with varying
levels of operations and manufacturing capacity, availability of
raw materials and energy, the company's ability to mitigate the
impact of fluctuations in raw materials and energy costs and the
effectiveness of its surcharge mechanism, changes in the expected
costs associated with product warranty claims, changes resulting
from inventory management, cost reduction initiatives and different
levels of customer demands, the effects of unplanned work
stoppages, and changes in the cost of labor and benefits; the
success of the company's operating plans, announced programs,
initiatives and capital investments, and the company's ability to
maintain appropriate relations with the union that represents its
associates in certain locations in order to avoid disruptions of
business; unanticipated litigation, claims or assessments,
including claims or problems related to intellectual property,
product liability or warranty, employment matters, and
environmental issues and taxes, among other matters; cyber-related
risks, including information technology system failures,
interruptions and security breaches; with respect to the company's
ability to achieve its sustainability goals, including its 2030
environmental goals, the ability to meet such goals within the
expected timeframe, changes in laws, regulations, prevailing
standards or public policy, the alignment of the scientific
community on measurement and reporting approaches, the complexity
of commodity supply chains and the evolution of and adoption of new
technology, including traceability practices, tools and processes;
the availability of financing and interest rates, which affect the
company's cost of funds and/or ability to raise capital, including
the ability of the company to refinance or repay at maturity the
convertible notes due December 1,
2025; the company's pension obligations and investment
performance, and/or customer demand and the ability of customers to
obtain financing to purchase the company's products or equipment
that contain its products; the overall impact of pension and other
postretirement benefit mark-to-market accounting; the effects of
the conditional conversion feature of the convertible notes due
December 1, 2025, which, if
triggered, entitles holders to convert the notes at any time during
specified periods at their option and therefore could result in
potential dilution if the holder elects to convert and the company
elects to satisfy a portion or all of the conversion obligation by
delivering common shares instead of cash; the timing required to
ramp up melt production to forecasted demand levels, as the company
recovers from unplanned downtime in the second half of 2022;
additional amounts, if any, that the company is able to obtain from
its business interruption insurance in connection with the
unplanned downtime; and the impacts from any repurchases of our
common shares, including the timing and amount of any repurchases.
Further, this news release represents our current policy and intent
and is not intended to create legal rights or obligations. Certain
standards of measurement and performance contained in this news
release are developing and based on assumptions, and no assurance
can be given that any plan, objective, initiative, projection,
goal, mission, commitment, expectation or prospect set forth in
this news release can or will be achieved. Inclusion of information
in this news release is not an indication that the subject or
information is material to our business or operating
results.
Additional risks relating to the company's business, the
industries in which the company operates, or the company's common
shares may be described from time to time in the company's filings
with the SEC. All of these risk factors are difficult to predict,
are subject to material uncertainties that may affect actual
results and may be beyond the company's control. Readers are
cautioned that it is not possible to predict or identify all of the
risks, uncertainties and other factors that may affect future
results and that the above list should not be considered to be a
complete list. Except as required by the federal securities laws,
the company undertakes no obligation to publicly update or revise
any forward-looking statement, whether as a result of new
information, future events or otherwise.
CONSOLIDATED
STATEMENTS OF OPERATIONS
|
|
|
|
Three Months
Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
(in millions,
except per share data) (Unaudited)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net sales
|
|
$
|
245.4
|
|
|
$
|
338.3
|
|
|
$
|
1,329.9
|
|
|
$
|
1,282.9
|
|
Cost of products
sold
|
|
|
265.7
|
|
|
|
282.9
|
|
|
|
1,203.2
|
|
|
|
1,062.9
|
|
Gross
Profit
|
|
|
(20.3)
|
|
|
|
55.4
|
|
|
|
126.7
|
|
|
|
220.0
|
|
Selling, general &
administrative expenses (SG&A)
|
|
|
17.4
|
|
|
|
16.8
|
|
|
|
73.8
|
|
|
|
77.2
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
4.7
|
|
|
|
0.8
|
|
|
|
6.7
|
|
Loss on sale of
consolidated subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.1
|
|
Loss (gain) on sale or
disposal of assets, net
|
|
|
(0.6)
|
|
|
|
0.8
|
|
|
|
1.9
|
|
|
|
1.3
|
|
Impairment
charges
|
|
|
—
|
|
|
|
2.4
|
|
|
|
—
|
|
|
|
10.6
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
43.1
|
|
|
|
—
|
|
Other (income) expense,
net
|
|
|
(31.8)
|
|
|
|
(31.2)
|
|
|
|
(90.6)
|
|
|
|
(59.5)
|
|
Earnings (Loss)
Before Interest and Taxes (EBIT) (1)
|
|
|
(5.3)
|
|
|
|
61.9
|
|
|
|
97.7
|
|
|
|
182.6
|
|
Interest (income)
expense, net
|
|
|
(1.0)
|
|
|
|
1.2
|
|
|
|
0.6
|
|
|
|
5.9
|
|
Income (Loss)
Before Income Taxes
|
|
|
(4.3)
|
|
|
|
60.7
|
|
|
|
97.1
|
|
|
|
176.7
|
|
Provision (benefit) for
income taxes
|
|
|
28.9
|
|
|
|
3.6
|
|
|
|
32.0
|
|
|
|
5.7
|
|
Net Income
(Loss)
|
|
$
|
(33.2)
|
|
|
$
|
57.1
|
|
|
$
|
65.1
|
|
|
$
|
171.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income (Loss)
per Common Share:
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings (loss)
per share
|
|
$
|
(0.75)
|
|
|
$
|
1.24
|
|
|
$
|
1.42
|
|
|
$
|
3.73
|
|
Diluted earnings (loss)
per share (2,3)
|
|
$
|
(0.75)
|
|
|
$
|
1.07
|
|
|
$
|
1.30
|
|
|
$
|
3.18
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding - basic
|
|
|
44.5
|
|
|
|
46.2
|
|
|
|
45.8
|
|
|
|
45.9
|
|
Weighted average shares
outstanding - diluted (2,3)
|
|
|
44.5
|
|
|
|
54.1
|
|
|
|
51.5
|
|
|
|
55.0
|
|
|
(1) EBIT is defined as net income
(loss) before interest (income) expense, net and income taxes. EBIT
is an important financial measure used in the management of the
business, including decisions concerning the allocation of
resources and assessment of performance. Management believes that
reporting EBIT is useful to investors as this measure is
representative of the company's performance.
|
|
(2) Common share equivalents for
shares issuable upon the conversion of outstanding convertible
notes and common share equivalents for shares issuable for
equity-based awards, were excluded from the computation of diluted
earnings (loss) per share for the three months ended December 31,
2022, because the effect of their inclusion would have been
anti-dilutive. For the year ended December 31, 2022, common
share equivalents for shares issuable upon the conversion of
outstanding convertible notes (3.6 million shares) and common share
equivalents for shares issuable for equity-based awards (2.1
million shares) were included in the computation of diluted
earnings (loss) per share, as they were considered dilutive. For
the convertible notes, the company utilizes the if-converted method
to calculate diluted earnings (loss) per share. As such, for the
year ended December 31, 2022, net income was adjusted to add back
$1.9 million of convertible notes interest expense (including
amortization of convertible notes issuance costs).
|
|
(3) For
the three months and year ended December 31, 2021, common share
equivalents for shares issuable upon the conversion of outstanding
convertible notes (5.9 million shares and 7.4 million shares,
respectively) and common share equivalents for shares issuable for
equity-based awards (2.0 million shares and 1.7 million shares,
respectively) were included in the computation of diluted earnings
(loss) per share, as they were considered dilutive. For the
convertible notes, the company utilizes the if-converted method to
calculate diluted earnings (loss) per share. As such, net income
was adjusted to add back $0.8 million and $4.1 million for the
three months and year ended December 31, 2021, respectively, of
convertible notes interest expense (including amortization of
convertible notes issuance costs).
|
CONSOLIDATED BALANCE
SHEETS
|
|
(Dollars in
millions) (Unaudited)
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
ASSETS
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
257.2
|
|
|
$
|
259.6
|
|
Accounts receivable,
net of allowances
|
|
|
79.4
|
|
|
|
100.5
|
|
Inventories,
net
|
|
|
192.4
|
|
|
|
210.9
|
|
Deferred charges and
prepaid expenses
|
|
|
6.4
|
|
|
|
3.9
|
|
Assets held for
sale
|
|
|
—
|
|
|
|
4.3
|
|
Other current
assets
|
|
|
21.2
|
|
|
|
3.1
|
|
Total Current
Assets
|
|
|
556.6
|
|
|
|
582.3
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
486.1
|
|
|
|
510.2
|
|
Operating lease
right-of-use assets
|
|
|
12.5
|
|
|
|
14.5
|
|
Pension
assets
|
|
|
19.4
|
|
|
|
43.1
|
|
Intangible assets,
net
|
|
|
5.0
|
|
|
|
6.7
|
|
Other non-current
assets
|
|
|
2.4
|
|
|
|
2.1
|
|
Total Assets
|
|
$
|
1,082.0
|
|
|
$
|
1,158.9
|
|
|
|
|
|
|
|
|
LIABILITIES
|
|
|
|
|
|
|
Accounts
payable
|
|
$
|
113.2
|
|
|
$
|
141.9
|
|
Salaries, wages and
benefits
|
|
|
21.2
|
|
|
|
37.9
|
|
Accrued pension and
postretirement costs
|
|
|
2.0
|
|
|
|
4.3
|
|
Current operating
lease liabilities
|
|
|
6.0
|
|
|
|
5.7
|
|
Current convertible
notes, net
|
|
|
20.4
|
|
|
|
44.9
|
|
Other current
liabilities
|
|
|
23.9
|
|
|
|
16.1
|
|
Total Current
Liabilities
|
|
|
186.7
|
|
|
|
250.8
|
|
|
|
|
|
|
|
|
Credit
Agreement
|
|
|
—
|
|
|
|
—
|
|
Non-current operating
lease liabilities
|
|
|
6.5
|
|
|
|
8.8
|
|
Accrued pension and
postretirement costs
|
|
|
162.9
|
|
|
|
223.0
|
|
Deferred income
taxes
|
|
|
25.9
|
|
|
|
2.2
|
|
Other non-current
liabilities
|
|
|
13.5
|
|
|
|
9.5
|
|
Total
Liabilities
|
|
|
395.5
|
|
|
|
494.3
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
Additional paid-in
capital
|
|
|
847.0
|
|
|
|
832.1
|
|
Retained
deficit
|
|
|
(123.1)
|
|
|
|
(188.2)
|
|
Treasury
shares
|
|
|
(52.1)
|
|
|
|
—
|
|
Accumulated other
comprehensive income (loss)
|
|
|
14.7
|
|
|
|
20.7
|
|
Total Shareholders'
Equity
|
|
|
686.5
|
|
|
|
664.6
|
|
Total Liabilities and
Shareholders' Equity
|
|
$
|
1,082.0
|
|
|
$
|
1,158.9
|
|
CONSOLIDATED
STATEMENTS OF CASH FLOWS
|
|
(Dollars in
millions) (Unaudited)
|
|
Three Months
Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
CASH PROVIDED
(USED)
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
(loss)
|
|
$
|
(33.2)
|
|
|
$
|
57.1
|
|
|
$
|
65.1
|
|
|
$
|
171.0
|
|
Adjustments to
reconcile net income (loss) to net cash provided (used) by
operating activities:
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
14.6
|
|
|
|
15.0
|
|
|
|
58.3
|
|
|
|
63.1
|
|
Amortization of
deferred financing fees and debt discount
|
|
|
0.1
|
|
|
|
0.3
|
|
|
|
0.7
|
|
|
|
1.0
|
|
Loss on extinguishment
of debt
|
|
|
|
|
|
-
|
|
|
|
43.1
|
|
|
|
—
|
|
Loss on sale of
consolidated subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
1.1
|
|
Loss (gain) on sale or
disposal of assets
|
|
|
(0.6)
|
|
|
|
0.8
|
|
|
|
1.9
|
|
|
|
1.3
|
|
Impairment
charges
|
|
|
—
|
|
|
|
2.4
|
|
|
|
—
|
|
|
|
10.6
|
|
Deferred income
taxes
|
|
|
25.4
|
|
|
|
1.3
|
|
|
|
24.9
|
|
|
|
1.2
|
|
Stock-based
compensation expense
|
|
|
2.3
|
|
|
|
1.8
|
|
|
|
8.8
|
|
|
|
7.3
|
|
Pension and
postretirement expense (benefit), net
|
|
|
4.2
|
|
|
|
(27.0)
|
|
|
|
(40.5)
|
|
|
|
(38.7)
|
|
Changes in operating
assets and liabilities:
|
|
|
—
|
|
|
|
|
|
|
|
|
|
|
Accounts receivable,
net
|
|
|
20.8
|
|
|
|
29.7
|
|
|
|
21.3
|
|
|
|
(37.2)
|
|
Inventories,
net
|
|
|
13.4
|
|
|
|
3.5
|
|
|
|
18.8
|
|
|
|
(41.6)
|
|
Accounts
payable
|
|
|
(13.3)
|
|
|
|
9.2
|
|
|
|
(33.2)
|
|
|
|
53.5
|
|
Other accrued
expenses
|
|
|
3.7
|
|
|
|
(0.6)
|
|
|
|
(8.8)
|
|
|
|
9.7
|
|
Pension and
postretirement contributions and payments
|
|
|
(0.5)
|
|
|
|
(4.0)
|
|
|
|
(5.4)
|
|
|
|
(6.9)
|
|
Deferred charges and
prepaid expenses
|
|
|
0.5
|
|
|
|
1.2
|
|
|
|
(2.6)
|
|
|
|
0.1
|
|
Other, net
|
|
|
(13.7)
|
|
|
|
—
|
|
|
|
(17.9)
|
|
|
|
1.4
|
|
Net Cash Provided
(Used) by Operating Activities
|
|
|
23.7
|
|
|
|
90.7
|
|
|
|
134.5
|
|
|
|
196.9
|
|
Investing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
expenditures
|
|
|
(11.4)
|
|
|
|
(4.9)
|
|
|
|
(27.1)
|
|
|
|
(12.2)
|
|
Proceeds from sale of
consolidated subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
6.2
|
|
Proceeds from disposals
of property, plant and equipment
|
|
|
2.4
|
|
|
|
1.0
|
|
|
|
5.4
|
|
|
|
1.2
|
|
Net Cash Provided
(Used) by Investing Activities
|
|
|
(9.0)
|
|
|
|
(3.9)
|
|
|
|
(21.7)
|
|
|
|
(4.8)
|
|
Financing
Activities
|
|
|
|
|
|
|
|
|
|
|
|
|
Purchase of treasury
shares
|
|
|
(19.6)
|
|
|
|
—
|
|
|
|
(52.0)
|
|
|
|
—
|
|
Proceeds from exercise
of stock options
|
|
|
0.1
|
|
|
|
0.8
|
|
|
|
8.0
|
|
|
|
4.1
|
|
Shares surrendered for
employee taxes on stock compensation
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
(0.5)
|
|
Repayments on
convertible notes
|
|
|
—
|
|
|
|
—
|
|
|
|
(67.6)
|
|
|
|
(38.9)
|
|
Repayments on credit
agreements
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
Debt issuance
costs
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
(1.0)
|
|
|
|
—
|
|
Net Cash Provided
(Used) by Financing Activities
|
|
|
(20.1)
|
|
|
|
0.8
|
|
|
|
(114.6)
|
|
|
|
(35.3)
|
|
Increase (Decrease)
in Cash, Cash Equivalents, and Restricted Cash
|
|
|
(5.4)
|
|
|
|
87.6
|
|
|
|
(1.8)
|
|
|
|
156.8
|
|
Cash, cash equivalents,
and restricted cash at beginning of period
|
|
|
263.2
|
|
|
|
172.0
|
|
|
|
259.6
|
|
|
|
102.8
|
|
Cash, Cash
Equivalents, and Restricted Cash at End of Period
|
|
$
|
257.8
|
|
|
$
|
259.6
|
|
|
$
|
257.8
|
|
|
$
|
259.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The following table
provides a reconciliation of cash, cash equivalents, and restricted
cash reported within the Consolidated Balance Sheets that sum to
the total of the same such amounts shown in the Consolidated
Statements of Cash Flows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
257.2
|
|
|
$
|
259.6
|
|
|
$
|
257.2
|
|
|
$
|
259.6
|
|
Restricted cash
reported in other current assets
|
|
|
0.6
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
Total cash, cash
equivalents, and restricted cash shown in the Consolidated
Statements of Cash Flows
|
|
$
|
257.8
|
|
|
$
|
259.6
|
|
|
$
|
257.8
|
|
|
$
|
259.6
|
|
Reconciliation of Free Cash Flow(1) to GAAP Net
Cash Provided (Used) by Operating Activities:
This reconciliation is provided as additional relevant
information about the company's financial position. Free cash flow
is an important financial measure used in the management of the
business. Management believes that free cash flow is useful to
investors because it is a meaningful indicator of cash generated
from operating activities available for the execution of its
business strategy.
|
|
Three Months
Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
(Dollars in
millions) (Unaudited)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
Net Cash Provided
(Used) by Operating Activities
|
|
$
|
23.7
|
|
|
$
|
90.7
|
|
|
$
|
134.5
|
|
|
$
|
196.9
|
|
Less: Capital
expenditures
|
|
|
(11.4)
|
|
|
|
(4.9)
|
|
|
|
(27.1)
|
|
|
|
(12.2)
|
|
Free Cash
Flow
|
|
$
|
12.3
|
|
|
$
|
85.8
|
|
|
$
|
107.4
|
|
|
$
|
184.7
|
|
|
(1) Free Cash Flow is defined as net
cash provided (used) by operating activities less capital
expenditures.
|
Reconciliation of adjusted net income (loss)(3) to
GAAP net income (loss) and adjusted diluted earnings (loss) per
share(3) to GAAP diluted earnings (loss) per share for
the three months ended December 31,
2022, December 31, 2021, and
September 30, 2022:
Adjusted net income (loss), adjusted diluted earnings (loss) per
share and other adjusted items referred to below are financial
measures not required by, or presented in accordance with GAAP.
These Non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, the financial measures
prepared in accordance with GAAP, and a reconciliation of these
financial measures to the most comparable GAAP financial measures
is presented. Management believes this data provides investors with
additional useful information on the underlying operations and
trends of the business and enables period-to-period comparability
of the company's financial performance.
Three months ended
December 31, 2022
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
SG&A
|
|
|
Loss (gain) on
sale or disposal
of assets, net
|
|
|
Other
(income)
expense,
net
|
|
|
Provision
(benefit)
for income
taxes
|
|
|
Diluted
earnings
(loss) per
share(1)
|
|
As
reported
|
|
$
|
(33.2)
|
|
|
$
|
17.4
|
|
|
$
|
(0.6)
|
|
|
$
|
(31.8)
|
|
|
$
|
28.9
|
|
|
$
|
(0.75)
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain on sale or
disposal of assets, net(6)
|
|
|
(0.6)
|
|
|
|
—
|
|
|
|
0.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Loss from
remeasurement of benefit plans, net
|
|
|
1.8
|
|
|
|
—
|
|
|
|
|
|
|
(1.8)
|
|
|
|
—
|
|
|
|
0.04
|
|
Business
transformation costs(2)
|
|
|
0.1
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
IT transformation
costs(7)
|
|
|
1.3
|
|
|
|
(1.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.03
|
|
Provision (benefit)
for income taxes(8)
|
|
|
26.6
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(26.6)
|
|
|
|
0.60
|
|
Tax effect on above
adjustments(9)
|
|
|
(0.6)
|
|
|
|
0.3
|
|
|
|
(0.1)
|
|
|
|
0.4
|
|
|
|
—
|
|
|
|
(0.02)
|
|
As
adjusted
|
|
$
|
(4.6)
|
|
|
$
|
16.3
|
|
|
$
|
(0.1)
|
|
|
$
|
(33.2)
|
|
|
$
|
2.3
|
|
|
$
|
(0.10)
|
|
Three months ended
December 31, 2021
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
Cost of
products
sold
|
|
|
SG&A
|
|
|
Restructuring
charges
|
|
|
Loss (gain)
on sale or
disposal of
assets, net
|
|
|
Impairment
charges
|
|
|
Other
(income)
expense,
net
|
|
|
Diluted
earnings
(loss) per
share(4)
|
|
As
reported
|
|
$
|
57.1
|
|
|
$
|
282.9
|
|
|
$
|
16.8
|
|
|
$
|
4.7
|
|
|
$
|
0.8
|
|
|
$
|
2.4
|
|
|
$
|
(31.2)
|
|
|
$
|
1.07
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale of
scrap processing facility
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
4.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4.7)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.09
|
|
Gain from
remeasurement of benefit plans
|
|
|
(22.3)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
22.3
|
|
|
|
(0.41)
|
|
Business
transformation costs(2)
|
|
|
0.6
|
|
|
|
—
|
|
|
|
(0.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Customer program
early termination
|
|
|
1.4
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.4)
|
|
|
|
—
|
|
|
|
0.03
|
|
Gain on sale of TMS
assets
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Loss on sale or
disposal of assets, net(6)
|
|
|
0.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
As
adjusted
|
|
$
|
42.3
|
|
|
$
|
283.9
|
|
|
$
|
16.2
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(8.9)
|
|
|
$
|
0.80
|
|
Three months ended
September 30, 2022
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
SG&A
|
|
|
Loss (gain)
on sale or
disposal of
assets, net
|
|
|
Loss on
extinguishment
of debt
|
|
|
Other
(income)
expense,
net
|
|
|
Diluted
earnings
(loss) per
share(5)
|
|
As
reported
|
|
$
|
(13.3)
|
|
|
$
|
16.2
|
|
|
$
|
1.9
|
|
|
$
|
0.1
|
|
|
$
|
0.2
|
|
|
$
|
(0.29)
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loss on sale or
disposal of assets, net(6)
|
|
|
1.9
|
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
Loss on
extinguishment of debt
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
0.01
|
|
Loss from
remeasurement of benefit plans, net
|
|
|
4.8
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(4.8)
|
|
|
|
0.10
|
|
Business
transformation costs(2)
|
|
|
0.8
|
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
IT transformation
costs(7)
|
|
|
1.6
|
|
|
|
(1.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.03
|
|
As
adjusted
|
|
$
|
(4.1)
|
|
|
$
|
13.8
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(4.6)
|
|
|
$
|
(0.09)
|
|
|
(1)
Common share equivalents for shares issuable upon the conversion of
outstanding convertible notes and common share equivalents for
shares issuable for equity-based awards, were excluded from the
computation of diluted earnings (loss) per share for the three
months ended December 31, 2022, because the effect of their
inclusion would have been anti-dilutive.
|
|
(2) Business transformation costs
consist of items that are non-routine in nature. These costs are
primarily related to professional service fees associated with
strategic initiatives and organizational changes.
|
|
(3) Adjusted net income (loss) and
adjusted diluted earnings (loss) per share are defined as net
income (loss) and diluted earnings (loss) per share, respectively,
excluding, as applicable, adjustments listed in the foregoing
table. Other adjusted items referred to in the foregoing tables are
also defined as the applicable item excluding any adjustments
listed in the foregoing tables with respect to such
item.
|
|
(4) For
the three months ended December 31, 2021, common share equivalents
for shares issuable upon the conversion of outstanding convertible
notes (5.9 million shares) and common share equivalents for shares
issuable for equity-based awards (2.0 million shares) were included
in the computation of as reported and as adjusted diluted earnings
(loss) per share, as they were considered dilutive. The total
diluted weighted average shares outstanding for the three months
ended December 31, 2021 was 54.1 million shares. For the
convertible notes, the company utilizes the if-converted method to
calculate diluted earnings (loss) per share. As such, net income
was adjusted to add back $0.8 million of convertible notes interest
expense (including amortization of convertible notes issuance
costs).
|
|
(5) Common
share equivalents for shares issuable upon the conversion of
outstanding convertible notes and common share equivalents for
shares issuable for equity-based awards, were excluded from the
computation of diluted earnings (loss) per share for the three
months ended September 30, 2022, because the effect of their
inclusion would have been anti-dilutive.
|
|
(6) For the
three months ended December 31, 2022, the gain on sale or disposal
of assets, net, primarily related to the sale of excess assets. For
the three months ended December 31, 2021, the loss on sale or
disposal of assets, net, related to losses incurred related to
older excess assets sold via an auction process. For the three
months ended September 30, 2022, the loss on sale or disposal of
assets, net, primarily related to the loss recognized on the sale
of the remaining land and buildings at the company's TimkenSteel
Material Services ("TMS") facility, as well as write-offs of aged
assets removed from service.
|
|
(7) For the
three months ended December 31, 2022 and September 30, 2022, IT
transformation costs were primarily related to professional service
fees not eligible for capitalization that are associated
specifically with an information technology application
simplification and modernization project.
|
|
(8)
Provision (benefit) for income taxes includes the net tax benefit
(expense) from non-routine income tax items. For the three months
ended December 31, 2022, this amount includes a tax benefit
associated with the reversal of an inventory reserve related to an
accounting policy change from LIFO to FIFO, which occurred in 2019,
a tax expense related to the reversal of our full domestic
valuation allowance, and a tax benefit to normalize the income tax
impact of recognizing full year income tax in the fourth quarter of
2022 due to the timing of release of the company's full domestic
valuation allowance.
|
|
(9) Tax
effect on above adjustments includes the tax impact related to the
adjustments shown above.
|
Reconciliation of adjusted net income (loss)(3) to
GAAP net income (loss) and adjusted diluted earnings (loss) per
share(3) to GAAP diluted earnings (loss) per share for
the year ended December 31, 2022 and
December 31, 2021:
Adjusted net income (loss), adjusted diluted earnings (loss) per
share and other adjusted items referred to below are financial
measures not required by, or presented in accordance with GAAP.
These Non-GAAP financial measures should be considered as a
supplement to, and not as a substitute for, the financial measures
prepared in accordance with GAAP, and a reconciliation of these
financial measures to the most comparable GAAP financial measures
is presented. Management believes this data provides investors with
additional useful information on the underlying operations and
trends of the business and enables period-to-period comparability
of the company's financial performance.
Year ended December
31, 2022
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
SG&A
|
|
|
Restructuring
charges
|
|
|
Loss
(gain) on
sale or
disposal
of
assets,
net
|
|
|
Loss on
extinguishment
of debt
|
|
|
Other
(income)
expense,
net
|
|
|
Provision
(benefit)
for income
taxes
|
|
|
Diluted
earnings
(loss) per
share(1)
|
|
As
reported
|
|
$
|
65.1
|
|
|
$
|
73.8
|
|
|
$
|
0.8
|
|
|
$
|
1.9
|
|
|
$
|
43.1
|
|
|
$
|
(90.6)
|
|
|
$
|
32.0
|
|
|
$
|
1.30
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
0.8
|
|
|
|
—
|
|
|
|
(0.8)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
Loss on sale or
disposal of assets, net(5)
|
|
|
1.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
Loss on
extinguishment of debt
|
|
|
43.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(43.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.84
|
|
Gain from
remeasurement of benefit plans, net
|
|
|
(35.4)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
35.4
|
|
|
|
—
|
|
|
|
(0.69)
|
|
Business
transformation costs(2)
|
|
|
1.6
|
|
|
|
(1.6)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.03
|
|
IT transformation
costs(6)
|
|
|
4.2
|
|
|
|
(4.2)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.08
|
|
Provision (benefit)
for income taxes(7)
|
|
|
6.4
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.4)
|
|
|
|
0.12
|
|
Tax effect on above
adjustments(8)
|
|
|
6.5
|
|
|
|
1.4
|
|
|
|
0.2
|
|
|
|
0.5
|
|
|
|
—
|
|
|
|
(8.6)
|
|
|
|
—
|
|
|
|
0.13
|
|
As
adjusted
|
|
$
|
94.2
|
|
|
$
|
69.4
|
|
|
$
|
0.2
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
(63.8)
|
|
|
$
|
25.6
|
|
|
$
|
1.87
|
|
Year ended December
31, 2021
|
|
(Dollars in
millions) (Unaudited)
|
|
Net
income
(loss)
|
|
|
Cost of
products
sold
|
|
|
SG&A
|
|
|
Restructuring
charges
|
|
|
Loss on sale
of
consolidated
subsidiary
|
|
|
Loss
(gain)
on sale
or
disposal
of
assets,
net
|
|
|
Impairment
charges
|
|
|
Other
(income)
expense,
net
|
|
|
Diluted
earnings
(loss) per
share(4)
|
|
As
reported
|
|
$
|
171.0
|
|
|
$
|
1,062.9
|
|
|
$
|
77.2
|
|
|
$
|
6.7
|
|
|
$
|
1.1
|
|
|
$
|
1.3
|
|
|
$
|
10.6
|
|
|
$
|
(59.5)
|
|
|
$
|
3.18
|
|
Adjustments:(3)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
charges
|
|
|
6.7
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(6.7)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.12
|
|
Accelerated
depreciation and amortization
|
|
|
1.5
|
|
|
|
(1.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.03
|
|
Gain from
remeasurement of benefit plans
|
|
|
(20.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
20.1
|
|
|
|
(0.37)
|
|
Write-down of
supplies inventory
|
|
|
2.1
|
|
|
|
(2.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
Business
transformation costs(2)
|
|
|
2.0
|
|
|
|
—
|
|
|
|
(2.0)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.04
|
|
TMS impairment
charges
|
|
|
0.3
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
—
|
|
|
|
0.01
|
|
Sales and use tax
refund
|
|
|
(2.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
(0.05)
|
|
Executive severance
and transition costs
|
|
|
0.5
|
|
|
|
—
|
|
|
|
(0.5)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.01
|
|
Harrison melt
impairment charges
|
|
|
7.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(7.9)
|
|
|
|
—
|
|
|
|
0.14
|
|
Loss on sale of
consolidated subsidiary
|
|
|
1.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
Customer program
early termination
|
|
|
1.4
|
|
|
|
1.0
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.4)
|
|
|
|
—
|
|
|
|
0.03
|
|
Gain on sale of TMS
assets
|
|
|
(0.1)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.01)
|
|
Loss on sale or
disposal of assets, net(5)
|
|
|
0.9
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.9)
|
|
|
|
—
|
|
|
|
—
|
|
|
|
0.02
|
|
As
adjusted
|
|
$
|
172.7
|
|
|
$
|
1,060.3
|
|
|
$
|
74.7
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
0.5
|
|
|
$
|
—
|
|
|
$
|
(36.9)
|
|
|
$
|
3.21
|
|
|
(1) For
the year ended December 31, 2022, common share equivalents for
shares issuable upon the conversion of outstanding convertible
notes (3.6 million shares) and common share equivalents for shares
issuable for equity-based awards (2.1 million shares) were included
in the computation of as reported and as adjusted diluted earnings
(loss) per share, as they were considered dilutive. The total
diluted weighted average shares outstanding for the year ended
December 31, 2022 was 51.5 million shares. For the convertible
notes, the company utilizes the if-converted method to calculate
diluted earnings (loss) per share. As such, net income was adjusted
to add back $1.9 million of convertible notes interest expense
(including amortization of convertible notes issuance
costs).
|
|
(2) Business transformation costs
consist of items that are non-routine in nature. These costs are
primarily related to professional service fees associated with
strategic initiatives and organizational changes.
|
|
(3) Adjusted net income (loss) and
adjusted diluted earnings (loss) per share are defined as net
income (loss) and diluted earnings (loss) per share, respectively,
excluding, as applicable, adjustments listed in the foregoing
table. Other adjusted items referred to in the foregoing tables are
also defined as the applicable item excluding any adjustments
listed in the foregoing tables with respect to such
item.
|
|
(4)
For the year ended December 31, 2021, common share equivalents for
shares issuable upon the conversion of outstanding convertible
notes (7.4 million shares) and common share equivalents for shares
issuable for equity-based awards (1.7 million shares) were included
in the computation of as reported and as adjusted diluted earnings
(loss) per share, as they were considered dilutive. The total
diluted weighted average shares outstanding for the year ended
December 31, 2021 was 55.0 million shares. For the convertible
notes, the company utilizes the if-converted method to calculate
diluted earnings (loss) per share. As such, net income was adjusted
to add back $4.1 million of convertible notes interest expense
(including amortization of convertible notes issuance
costs).
|
|
(5) For
the year ended December 31, 2022, the loss on sale or disposal of
assets, net, primarily related to the loss recognized on the sale
of the remaining land and buildings at the company's TimkenSteel
Material Services ("TMS") facility, as well as write-offs of aged
assets removed from service. For the year ended December 31, 2021,
the loss on sale or disposal of assets, net, consists of losses
incurred related to older excess assets sold via an auction
process.
|
|
(6) For
the year ended December 31, 2022, IT transformation costs were
primarily related to professional service fees not eligible for
capitalization that are associated specifically with an information
technology application simplification and modernization
project.
|
|
(7)
Provision (benefit) for income taxes includes the net tax benefit
(expense) from non-routine income tax items. For the twelve months
ended December 31, 2022, this amount includes a tax benefit
associated with the reversal of an inventory reserve related to an
accounting policy change from LIFO to FIFO, which occurred in 2019
and a tax expense related to the reversal of our full domestic
valuation allowance.
|
|
(8) Tax
effect on above adjustments includes the tax impact related to the
adjustments shown above.
|
Reconciliation of Earnings (Loss) Before Interest and Taxes
(EBIT)(2), Adjusted EBIT(4), Earnings (Loss)
Before Interest, Taxes, Depreciation and Amortization
(EBITDA)(3) and Adjusted EBITDA(5) to GAAP
Net Income (Loss):
This reconciliation is provided as additional relevant
information about the company's performance. EBIT, Adjusted EBIT,
EBITDA and Adjusted EBITDA are important financial measures used in
the management of the business, including decisions concerning the
allocation of resources and assessment of performance. Management
believes that reporting EBIT, Adjusted EBIT, EBITDA and Adjusted
EBITDA is useful to investors as these measures are representative
of the company's performance. Management also believes that it is
appropriate to compare GAAP net income (loss) to EBIT, Adjusted
EBIT, EBITDA and Adjusted EBITDA.
|
|
Three Months Ended
December 31,
|
|
|
Year Ended
December 31,
|
|
|
Three Months Ended
September 30,
|
|
(Dollars in
millions) (Unaudited)
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
|
2021
|
|
|
2022
|
|
Net income
(loss)
|
|
$
|
(33.2)
|
|
|
$
|
57.1
|
|
|
$
|
65.1
|
|
|
$
|
171.0
|
|
|
$
|
(13.3)
|
|
Net Income Margin
(1)
|
|
|
(13.5)
|
%
|
|
|
16.9
|
%
|
|
|
4.9
|
%
|
|
|
13.3
|
%
|
|
|
(4.2)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Provision (benefit) for
income taxes
|
|
|
28.9
|
|
|
|
3.6
|
|
|
|
32.0
|
|
|
|
5.7
|
|
|
|
0.7
|
|
Interest (income)
expense, net
|
|
|
(1.0)
|
|
|
|
1.2
|
|
|
|
0.6
|
|
|
|
5.9
|
|
|
|
(0.2)
|
|
Earnings Before
Interest and Taxes (EBIT) (2)
|
|
$
|
(5.3)
|
|
|
$
|
61.9
|
|
|
$
|
97.7
|
|
|
$
|
182.6
|
|
|
$
|
(12.8)
|
|
EBIT Margin
(2)
|
|
|
(2.2)
|
%
|
|
|
18.3
|
%
|
|
|
7.3
|
%
|
|
|
14.2
|
%
|
|
|
(4.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization
|
|
|
14.6
|
|
|
|
15.0
|
|
|
|
58.3
|
|
|
|
63.1
|
|
|
|
14.4
|
|
Earnings Before
Interest, Taxes, Depreciation and Amortization (EBITDA)
(3)
|
|
$
|
9.3
|
|
|
$
|
76.9
|
|
|
$
|
156.0
|
|
|
$
|
245.7
|
|
|
$
|
1.6
|
|
EBITDA Margin
(3)
|
|
|
3.8
|
%
|
|
|
22.7
|
%
|
|
|
11.7
|
%
|
|
|
19.2
|
%
|
|
|
0.5
|
%
|
Adjustments:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gain (loss) on sale of
TMS assets
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
|
|
0.1
|
|
|
|
—
|
|
Restructuring
charges
|
|
|
—
|
|
|
|
(4.7)
|
|
|
|
(0.8)
|
|
|
|
(6.7)
|
|
|
|
—
|
|
Accelerated
depreciation and amortization (EBIT only)
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.5)
|
|
|
|
—
|
|
Gain (loss) from
remeasurement of benefit plans
|
|
|
(1.8)
|
|
|
|
22.3
|
|
|
|
35.4
|
|
|
|
20.1
|
|
|
|
(4.8)
|
|
Loss on extinguishment
of debt
|
|
|
—
|
|
|
|
—
|
|
|
|
(43.1)
|
|
|
|
—
|
|
|
|
(0.1)
|
|
Write-down of supplies
inventory
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(2.1)
|
|
|
|
—
|
|
Business transformation
costs (6)
|
|
|
(0.1)
|
|
|
|
(0.6)
|
|
|
|
(1.6)
|
|
|
|
(2.0)
|
|
|
|
(0.8)
|
|
IT transformation costs
(8)
|
|
|
(1.3)
|
|
|
|
—
|
|
|
|
(4.2)
|
|
|
|
—
|
|
|
|
(1.6)
|
|
Sales and use tax
refund
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
2.5
|
|
|
|
—
|
|
Executive severance and
transition costs
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.5)
|
|
|
|
—
|
|
Harrison melt
impairment charges
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(7.9)
|
|
|
|
—
|
|
TMS impairment
charges
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(0.3)
|
|
|
|
—
|
|
Loss on sale of
consolidated subsidiary
|
|
|
—
|
|
|
|
—
|
|
|
|
—
|
|
|
|
(1.1)
|
|
|
|
—
|
|
Customer program early
termination
|
|
|
—
|
|
|
|
(1.4)
|
|
|
|
—
|
|
|
|
(1.4)
|
|
|
|
—
|
|
Loss on sale or
disposal of assets, net (7)
|
|
|
0.6
|
|
|
|
(0.9)
|
|
|
|
(1.9)
|
|
|
|
(0.9)
|
|
|
|
(1.9)
|
|
Adjusted EBIT
(4)
|
|
$
|
(2.7)
|
|
|
$
|
47.1
|
|
|
$
|
113.9
|
|
|
$
|
184.3
|
|
|
$
|
(3.6)
|
|
Adjusted EBIT Margin
(4)
|
|
|
(1.1)
|
%
|
|
|
13.9
|
%
|
|
|
8.6
|
%
|
|
|
14.4
|
%
|
|
|
(1.1)
|
%
|
Adjusted EBITDA
(5)
|
|
$
|
11.9
|
|
|
$
|
62.1
|
|
|
$
|
172.2
|
|
|
$
|
245.9
|
|
|
$
|
10.8
|
|
Adjusted EBITDA Margin
(5)
|
|
|
4.8
|
%
|
|
|
18.4
|
%
|
|
|
12.9
|
%
|
|
|
19.2
|
%
|
|
|
3.4
|
%
|
|
(1) Net
Income Margin is defined as net income (loss) as a percentage of
net sales.
|
|
(2) EBIT is defined as net income
(loss) before interest (income) expense, net and income taxes. EBIT
Margin is EBIT as a percentage of net sales.
|
|
(3) EBITDA is defined as net income
(loss) before interest (income) expense, net, income taxes,
depreciation and amortization. EBITDA Margin is EBITDA as a
percentage of net sales.
|
|
(4) Adjusted EBIT is defined as EBIT
excluding, as applicable, adjustments listed in the table above.
Adjusted EBIT Margin is Adjusted EBIT as a percentage of net
sales.
|
|
(5) Adjusted EBITDA is defined as
EBITDA excluding, as applicable, adjustments listed in the table
above. Adjusted EBITDA Margin is Adjusted EBITDA as a percentage of
net sales.
|
|
(6) Business transformation costs
consist of items that are non-routine in nature. These costs were
primarily related to professional service fees associated with
strategic initiatives and organizational changes.
|
|
(7) For the
three months ended December 31, 2022, the gain on sale or disposal
of assets, net, primarily related to the sale of excess assets. For
the three months and year ended December 31, 2021, the loss on sale
or disposal of assets, net, consists of losses incurred related to
older excess assets sold via an auction process. For the three
months ended September 30, 2022, the loss on sale or disposal of
assets, net, primarily related to the loss recognized on the sale
of the remaining land and buildings at the company's TimkenSteel
Material Services ("TMS") facility, as well as write-offs of aged
assets removed from service.
|
|
For the year ended
December 31, 2022, the loss on sale or disposal of assets, net,
primarily related to the loss recognized on the sale of the
remaining land and buildings at the company's TimkenSteel Material
Services ("TMS") facility, as well as write-offs of aged assets
removed from service. For the year ended December 31, 2021, the
loss on sale or disposal of assets, net, consists of losses
incurred related to older excess assets sold via an auction
process.
|
|
(8) IT
transformation costs are primarily related to professional service
fees not eligible for capitalization that are associated
specifically with an information technology application
simplification and modernization project.
|
Reconciliation of Base Sales by end market sector to GAAP Net
Sales by end-market sector:
The tables below present net sales by end-market sector,
adjusted to exclude surcharges, which represents a financial
measure that has not been determined in accordance with GAAP. We
believe presenting net sales by end-market sector, both on a gross
basis and on a per ton basis, adjusted to exclude raw material and
natural gas surcharges, provides additional insight into key
drivers of net sales such as base price and product mix. Due to the
fact that the surcharge mechanism can introduce volatility to our
net sales, net sales adjusted to exclude surcharges provides
management and investors clarity of our core pricing and results.
Presenting net sales by end-market sector, adjusted to exclude
surcharges including on a per ton basis, allows management and
investors to better analyze key market indicators and trends and
allows for enhanced comparison between our end-market sectors.
When surcharges are included in a customer agreement and are
applicable (i.e., reach the threshold amount), based on the terms
outlined in the respective agreement, surcharges are then included
as separate line items on a customer's invoice. These additional
surcharge line items adjust base prices to match cost fluctuations
due to market conditions. Each month, the company will post on the
surcharges page of its external website, as well as our customer
portal, the scrap, alloy, and natural gas surcharges that will be
applied (as a separate line item) to invoices dated in the
following month (based upon shipment volumes in the following
month). All surcharges invoiced are included in GAAP net
sales.
End-Market Sector
Sales Data
|
|
(Dollars in
millions, tons in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2022
|
|
|
|
Mobile
|
|
|
Industrial
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
67.7
|
|
|
|
47.5
|
|
|
|
13.1
|
|
|
|
—
|
|
|
|
128.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
112.1
|
|
|
$
|
99.5
|
|
|
$
|
29.3
|
|
|
$
|
4.5
|
|
|
$
|
245.4
|
|
Less:
Surcharges
|
|
|
27.8
|
|
|
|
19.9
|
|
|
|
6.8
|
|
|
|
—
|
|
|
|
54.5
|
|
Base Sales
|
|
$
|
84.3
|
|
|
$
|
79.6
|
|
|
$
|
22.5
|
|
|
$
|
4.5
|
|
|
$
|
190.9
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,656
|
|
|
$
|
2,095
|
|
|
$
|
2,237
|
|
|
$
|
—
|
|
|
$
|
1,913
|
|
Surcharges /
Ton
|
|
$
|
411
|
|
|
$
|
419
|
|
|
$
|
519
|
|
|
$
|
—
|
|
|
$
|
425
|
|
Base Sales /
Ton
|
|
$
|
1,245
|
|
|
$
|
1,676
|
|
|
$
|
1,718
|
|
|
$
|
—
|
|
|
$
|
1,488
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
December 31, 2021
|
|
|
|
Mobile
|
|
|
Industrial
|
|
|
Energy
|
|
|
Other(1)
|
|
|
Total
|
|
Tons
|
|
|
84.5
|
|
|
|
101.6
|
|
|
|
12.2
|
|
|
|
—
|
|
|
|
198.3
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
127.9
|
|
|
$
|
180.9
|
|
|
$
|
21.5
|
|
|
$
|
8.0
|
|
|
$
|
338.3
|
|
Less:
Surcharges
|
|
|
46.2
|
|
|
|
61.5
|
|
|
|
8.0
|
|
|
|
—
|
|
|
|
115.7
|
|
Base Sales
|
|
$
|
81.7
|
|
|
$
|
119.4
|
|
|
$
|
13.5
|
|
|
$
|
8.0
|
|
|
$
|
222.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,514
|
|
|
$
|
1,781
|
|
|
$
|
1,762
|
|
|
$
|
—
|
|
|
$
|
1,706
|
|
Surcharges /
Ton
|
|
$
|
547
|
|
|
$
|
606
|
|
|
$
|
655
|
|
|
$
|
—
|
|
|
$
|
583
|
|
Base Sales /
Ton
|
|
$
|
967
|
|
|
$
|
1,175
|
|
|
$
|
1,107
|
|
|
$
|
—
|
|
|
$
|
1,123
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended
September 30, 2022
|
|
|
|
Mobile
|
|
|
Industrial
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
71.2
|
|
|
|
71.3
|
|
|
|
16.0
|
|
|
|
—
|
|
|
|
158.5
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
130.0
|
|
|
$
|
146.0
|
|
|
$
|
36.0
|
|
|
$
|
4.8
|
|
|
$
|
316.8
|
|
Less:
Surcharges
|
|
|
42.9
|
|
|
|
45.8
|
|
|
|
11.3
|
|
|
|
—
|
|
|
|
100.0
|
|
Base Sales
|
|
$
|
87.1
|
|
|
$
|
100.2
|
|
|
$
|
24.7
|
|
|
$
|
4.8
|
|
|
$
|
216.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,826
|
|
|
$
|
2,048
|
|
|
$
|
2,250
|
|
|
$
|
—
|
|
|
$
|
1,999
|
|
Surcharges /
Ton
|
|
$
|
603
|
|
|
$
|
643
|
|
|
$
|
706
|
|
|
$
|
—
|
|
|
$
|
631
|
|
Base Sales /
Ton
|
|
$
|
1,223
|
|
|
$
|
1,405
|
|
|
$
|
1,544
|
|
|
$
|
—
|
|
|
$
|
1,368
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in
millions, tons in thousands)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2022
|
|
|
|
Mobile
|
|
|
Industrial
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
313.2
|
|
|
|
315.8
|
|
|
|
63.1
|
|
|
|
—
|
|
|
|
692.1
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
539.1
|
|
|
$
|
628.7
|
|
|
$
|
136.6
|
|
|
$
|
25.5
|
|
|
$
|
1,329.9
|
|
Less:
Surcharges
|
|
|
171.6
|
|
|
|
200.6
|
|
|
|
43.1
|
|
|
|
—
|
|
|
|
415.3
|
|
Base Sales
|
|
$
|
367.5
|
|
|
$
|
428.1
|
|
|
$
|
93.5
|
|
|
$
|
25.5
|
|
|
$
|
914.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,721
|
|
|
$
|
1,991
|
|
|
$
|
2,165
|
|
|
$
|
—
|
|
|
$
|
1,922
|
|
Surcharges
/Ton
|
|
|
548
|
|
|
|
635
|
|
|
|
683
|
|
|
|
—
|
|
|
|
600
|
|
Base Sales /
Ton
|
|
$
|
1,173
|
|
|
$
|
1,356
|
|
|
$
|
1,482
|
|
|
$
|
—
|
|
|
$
|
1,322
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year Ended December
31, 2021
|
|
|
|
Mobile
|
|
|
Industrial
|
|
|
Energy
|
|
|
Other
|
|
|
Total
|
|
Tons
|
|
|
370.4
|
|
|
|
408.9
|
|
|
|
39.3
|
|
|
|
—
|
|
|
|
818.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
$
|
527.9
|
|
|
$
|
661.2
|
|
|
$
|
62.9
|
|
|
$
|
30.9
|
|
|
$
|
1,282.9
|
|
Less:
Surcharges
|
|
|
167.7
|
|
|
|
218.3
|
|
|
|
22.1
|
|
|
|
—
|
|
|
|
408.1
|
|
Base Sales
|
|
$
|
360.2
|
|
|
$
|
442.9
|
|
|
$
|
40.8
|
|
|
$
|
30.9
|
|
|
$
|
874.8
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales /
Ton
|
|
$
|
1,425
|
|
|
$
|
1,617
|
|
|
$
|
1,601
|
|
|
$
|
—
|
|
|
$
|
1,567
|
|
Surcharges /
Ton
|
|
$
|
453
|
|
|
$
|
534
|
|
|
$
|
563
|
|
|
$
|
—
|
|
|
$
|
498
|
|
Base Sales /
Ton
|
|
$
|
972
|
|
|
$
|
1,083
|
|
|
$
|
1,038
|
|
|
$
|
—
|
|
|
$
|
1,069
|
|
Calculation of Total Liquidity(1):
This calculation is provided as additional relevant information
about the company's financial position.
(Dollars in
millions) (Unaudited)
|
|
December 31,
2022
|
|
|
December 31,
2021
|
|
Cash and cash
equivalents
|
|
$
|
257.2
|
|
|
$
|
259.6
|
|
|
|
|
|
|
|
|
Credit
Agreement:
|
|
|
|
|
|
|
Maximum
availability
|
|
$
|
400.0
|
|
|
$
|
400.0
|
|
Suppressed
availability(2)
|
|
|
(161.2)
|
|
|
|
(143.5)
|
|
Availability
|
|
|
238.8
|
|
|
|
256.5
|
|
Credit facility amount
borrowed
|
|
|
—
|
|
|
|
—
|
|
Letter of credit
obligations
|
|
|
(5.3)
|
|
|
|
(5.4)
|
|
Availability not
borrowed
|
|
$
|
233.5
|
|
|
$
|
251.1
|
|
|
|
|
|
|
|
|
Total
liquidity
|
|
$
|
490.7
|
|
|
$
|
510.7
|
|
|
(1) Total Liquidity is defined as
available borrowing capacity plus cash and cash
equivalents.
|
|
(2) As
of December 31, 2022 and December 31, 2021, TimkenSteel had less
than $400 million in collateral assets to borrow
against.
|
ADJUSTED
EBITDA(1) WALKS
|
|
(Dollars in
millions) (Unaudited)
|
|
2021 4Q
vs. 2022 4Q
|
|
|
2022 3Q
vs. 2022 4Q
|
|
|
Full Year 2021
vs. 2022
|
|
Beginning Adjusted
EBITDA(1)
|
|
$
|
62
|
|
|
$
|
11
|
|
|
$
|
246
|
|
Volume
|
|
|
(16)
|
|
|
|
(12)
|
|
|
|
(23)
|
|
Price/Mix
|
|
|
18
|
|
|
|
(4)
|
|
|
|
129
|
|
Raw Material
Spread
|
|
|
(33)
|
|
|
|
(8)
|
|
|
|
(73)
|
|
Manufacturing
|
|
|
(43)
|
|
|
|
(2)
|
|
|
|
(126)
|
|
Inventory
Reserve
|
|
|
—
|
|
|
|
1
|
|
|
|
(9)
|
|
SG&A
|
|
|
—
|
|
|
|
(2)
|
|
|
|
7
|
|
Other
|
|
|
24
|
|
|
|
28
|
|
|
|
21
|
|
Ending Adjusted
EBITDA(1)
|
|
$
|
12
|
|
|
$
|
12
|
|
|
$
|
172
|
|
|
(1) Please refer to the
Reconciliation of Earnings (Loss) Before Interest and Taxes (EBIT),
Adjusted EBIT, Earnings (Loss) Before Interest, Taxes, Depreciation
and Amortization (EBITDA) and Adjusted EBITDA to GAAP Net Income
(Loss).
|
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SOURCE TimkenSteel Corp.