ATI Announces Second Quarter 2023 Results
- Strong performance in Aerospace & Defense with sequential and year over year sales growth
- Increase in net income attributable to ATI from Q1 2023 to Q2 2023
- Aerospace and defense sales represent 58% of Q2 2023 sales, showing growth from previous quarters
- Q2 2023 adjusted net income and EPS were higher than Q1 2023
- ATI adjusted EBITDA was $149.8 million, or 14.3% of sales, showing strong operational performance
- None.
Strong performance in Aerospace & Defense propels sequential and year over year growth
- Q2 2023 sales of
up$1.05 billion 1% over Q1 2023 and9% higher than Q2 2022 - Q2 2023 net income attributable to ATI of
, or$76.0 million per share$0.52 - Aerospace and defense represent
58% of Q2 2023 sales, up from56% of Q1 2023 sales and up from46% of Q2 2022 sales - Non-GAAP information
- Q2 2023 adjusted net income attributable to ATI of
, and adjusted EPS of$86.2 million per share$0.59 - Q2 2023 ATI adjusted EBITDA was
, or$149.8 million 14.3% of sales
Sequential | Y-O-Y | ||||||
($ in millions except per share amounts) | Q2 2023 | Q1 2023 | Change | Q2 2022 | Change | ||
Sales | 1 % | 9 % | |||||
Net income (loss) attributable to ATI | 8 % | NM | |||||
Earnings (loss) per share | 8 % | NM | |||||
Non-GAAP information | |||||||
Adjusted net income attributable to ATI* | 21 % | 12 % | |||||
Adjusted earnings per share* | 20 % | 9 % | |||||
ATI adjusted EBITDA* | 13 % | 5 % |
Adjusted earnings per share* for Q2 2023 was
* Detailed reconciliations of the reported information under accounting principles generally accepted in |
"ATI's growth as an aerospace and defense leader continues," said Robert S. Wetherbee, Board Chair and CEO. "As demand accelerates, the percentage of our revenue attributed to aerospace and defense reached
"Strong execution and operational performance drove further margin expansion in the second quarter, with our High Performance Materials and Components segment delivering
Operating Results by Segment
High Performance Materials & Components (HPMC) | |||||
($ millions) | Q2 2023 | Q1 2023 | Q2 2022 | ||
Sales | |||||
Segment EBITDA | |||||
% of Sales | 20.5 % | 17.0 % | 15.2 % |
- HPMC's second quarter 2023 sales increased
, or$56 million 12% , compared to the first quarter 2023, primarily driven by growth in the commercial jet engine market. Overall aerospace and defense sales were83% of total HPMC sales in the second quarter 2023. Second quarter 2023 sales improved33% compared to the second quarter 2022, with total aerospace and defense related sales increasing38% compared to the prior year period. - HPMC segment EBITDA was
, or$108.1 million 20.5% of sales. The incremental margins continue to be driven by increased volumes on higher margin next-generation commercial aerospace platforms. - Results in the second quarter 2022 included
of benefits from the Aviation Manufacturing Jobs Protection program.$5.6 million
Advanced Alloys & Solutions (AA&S) | |||||
($ millions) | Q2 2023 | Q1 2023 | Q2 2022 | ||
Sales | |||||
Segment EBITDA | |||||
% of Sales | 12.2 % | 12.8 % | 18.6 % |
- AA&S second quarter 2023 sales decreased by
, or$48 million 9% compared to the first quarter, 2023, primarily due to recessionary softness in general industrial end markets and lingering COVID impacts associated with our Asian precision rolled strip business. Sales of commercial aerospace products increased by nearly50% compared to the prior year period. - AA&S segment EBITDA was
, or$63.2 million 12.2% of sales. Reduced deliveries of nickel based alloys and precision rolled strip products in the second quarter 2023 were partially offset by increases in titanium plate deliveries. Second quarter 2022 results included a benefit from the settlement of Section 232 claims as well as lower retirement benefit costs when compared to the second quarter 2023.$9.9 million
Corporate Items and Cash
- Restructuring and other credits (charges) in the second quarter 2023 include pre-tax charges of
for start-up costs,$4.5 million of severance-related restructuring charges, and$2.7 million primarily for asset write-offs related to the closure of our$2.8 million Robinson, PA operation, of which was accelerated depreciation on fixed assets. First quarter 2023 results include a$0.8 million pre-tax charge for costs to restart our titanium operations in$1.2 million Albany, OR. Second quarter 2022 results include a pre-tax credit for restructuring charges primarily related to lowered severance-related reserves based on changes in planned operating rates and revised workforce reduction estimates.$1.3 million - Corporate expenses in the second quarter 2023 were
, compared to$18.1 million in the first quarter 2023, and$17.3 million in the prior year quarter.$16.7 million - Closed operations and other expense was
in the second quarter 2023, compared to$3.4 million in the first quarter 2023, and$2.8 million in the prior year quarter. Higher costs in the second quarter 2023, compared to the first quarter 2023, were associated with higher facility costs at closed locations.$5.1 million - Second quarter 2023 results include a
income tax provision, compared to$3.7 million in the first quarter 2023, and$4.3 million in the prior year quarter. This expense is primarily related to our Asian precision rolled strip business. ATI maintains a valuation allowance on its$3.4 million U.S. deferred tax assets and does not expect to pay any significantU.S. federal or state income taxes in 2023 due to net operating loss carryforwards. - For the second quarter of 2023, cash provided by operating activities was
, and cash used in operating activities was$68.1 million on a year-to-date basis. Inventory levels increased in the second quarter as a result of a strategic nickel purchase to ensure continuity of supply, which was funded by a$217.1 million draw on our asset based lending credit facility. As a result of the strategic purchase, second quarter 2023 managed working capital as a percent of sales was$50 million 39.0% . Capital expenditures for the first half of 2023 were .$103.3 million - Cash on hand at June 30, 2023 was
, and available additional liquidity under the asset-based lending (ABL) credit facility was approximately$267 million . ATI has no significant debt maturities until 2025.$500 million - On April 28, 2023, our Board of Directors authorized the repurchase of
of ATI stock.$75 million
Outlook
"Our laser focus on executing our commitments gives us the opportunity to expand for the future. We're investing in both the additional capacity our customers need, and growing our capabilities to solve their most difficult challenges," said Wetherbee. "With our restarted
ATI will conduct a conference call with investors and analysts on Wednesday, August 2, 2023, at 10:30 a.m. ET to discuss the financial results. The conference call will be broadcast, and accompanying presentation slides will be available, at ATImaterials.com. To access the broadcast, click on "Conference Call." Replay of the conference call will be available on the ATI website.
This news release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Certain statements in this news release relate to future events and expectations and, as such, constitute forward-looking statements. Forward-looking statements, which may contain such words as "anticipates," "believes," "estimates," "expects," "would," "should," "will," "will likely result," "forecast," "outlook," "projects," and similar expressions, are based on management's current expectations and include known and unknown risks, uncertainties and other factors, many of which we are unable to predict or control. Our performance or achievements may differ materially from those expressed or implied in any forward-looking statements due to the following factors, among others: (a) material adverse changes in economic or industry conditions generally, including global supply and demand conditions and prices for our specialty materials; (b) material adverse changes in the markets we serve; (c) our inability to achieve the level of cost savings, productivity improvements, synergies, growth or other benefits anticipated by management from strategic investments and the integration of acquired businesses; (d) volatility in the price and availability of the raw materials that are critical to the manufacture of our products; (e) declines in the value of our defined benefit pension plan assets or unfavorable changes in laws or regulations that govern pension plan funding; (f) labor disputes or work stoppages; (g) equipment outages and (h) business and economic disruptions associated with extraordinary events beyond our control, such as war, terrorism, international conflicts, public health issues, such as epidemics or pandemics, natural disasters and climate-related events that may arise in the future and (i) other risk factors summarized in our Annual Report on Form 10-K for the year ended December 31, 2022, and in other reports filed with the Securities and Exchange Commission. We assume no duty to update our forward-looking statements.
ATI: Proven to Perform.
ATI (NYSE: ATI) is a global producer of high performance materials and solutions for the global aerospace and defense markets, and critical applications in electronics, medical and specialty energy. We're solving the world's most difficult challenges through materials science. We partner with our customers to deliver extraordinary materials that enable their greatest achievements: their products fly higher and faster, burn hotter, dive deeper, stand stronger and last longer. Our proprietary process technologies, unique customer partnerships and commitment to innovation deliver materials and solutions for today and the evermore challenging environments of tomorrow. We are proven to perform anywhere. Learn more at ATImaterials.com.
ATI Inc. | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||
Sales | $ 1,046.0 | $ 1,038.1 | $ 959.5 | $ 2,084.1 | $ 1,793.6 | ||||
Cost of sales | 836.9 | 844.9 | 784.2 | 1,681.8 | 1,448.9 | ||||
Gross profit | 209.1 | 193.2 | 175.3 | 402.3 | 344.7 | ||||
Selling and administrative expenses | 85.4 | 80.6 | 72.3 | 166.0 | 147.5 | ||||
Restructuring charges (credits) | 2.7 | — | (1.3) | 2.7 | (2.4) | ||||
Loss on asset sales and sales of businesses, net | 0.7 | — | 115.9 | 0.7 | 134.2 | ||||
Operating income (loss) | 120.3 | 112.6 | (11.6) | 232.9 | 65.4 | ||||
Nonoperating retirement benefit expense | (16.9) | (16.8) | (6.6) | (33.7) | (12.4) | ||||
Interest expense, net | (21.3) | (19.9) | (23.4) | (41.2) | (47.0) | ||||
Other income, net | 0.7 | 0.6 | 10.7 | 1.3 | 3.2 | ||||
Income (loss) before income taxes | 82.8 | 76.5 | (30.9) | 159.3 | 9.2 | ||||
Income tax provision | 3.7 | 4.3 | 3.4 | 8.0 | 8.3 | ||||
Net income (loss) | $ 79.1 | $ 72.2 | $ (34.3) | $ 151.3 | $ 0.9 | ||||
Less: Net income attributable to noncontrolling | 3.1 | 2.1 | 3.7 | 5.2 | 8.0 | ||||
Net income (loss) attributable to ATI | $ 76.0 | $ 70.1 | $ (38.0) | $ 146.1 | $ (7.1) | ||||
Basic net income (loss) attributable to ATI | $ 0.59 | $ 0.55 | $ (0.31) | $ 1.14 | $ (0.06) | ||||
Diluted net income (loss) attributable to ATI | $ 0.52 | $ 0.48 | $ (0.31) | $ 1.01 | $ (0.06) |
ATI Inc. | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||
Sales: | |||||||||
High Performance Materials & Components | $ 527.1 | $ 471.1 | $ 396.1 | $ 998.2 | $ 737.7 | ||||
Advanced Alloys & Solutions | 518.9 | 567.0 | 563.4 | 1,085.9 | 1,055.9 | ||||
Total external sales | $ 1,046.0 | $ 1,038.1 | $ 959.5 | $ 2,084.1 | $ 1,793.6 | ||||
EBITDA: | |||||||||
High Performance Materials & Components | $ 108.1 | $ 80.1 | $ 60.3 | $ 188.2 | $ 128.4 | ||||
% of Sales | 20.5 % | 17.0 % | 15.2 % | 18.9 % | 17.4 % | ||||
Advanced Alloys & Solutions | 63.2 | 72.7 | 104.6 | 135.9 | 179.9 | ||||
% of Sales | 12.2 % | 12.8 % | 18.6 % | 12.5 % | 17.0 % | ||||
Total segment EBITDA | 171.3 | 152.8 | 164.9 | 324.1 | 308.3 | ||||
% of Sales | 16.4 % | 14.7 % | 17.2 % | 15.6 % | 17.2 % | ||||
Corporate expenses | (18.1) | (17.3) | (16.7) | (35.4) | (33.7) | ||||
Closed operations and other expense | (3.4) | (2.8) | (5.1) | (6.2) | (6.5) | ||||
ATI Adjusted EBITDA | $ 149.8 | $ 132.7 | $ 143.1 | $ 282.5 | $ 268.1 | ||||
Depreciation & amortization (a) | (35.9) | (35.1) | (36.0) | (71.0) | (71.5) | ||||
Interest expense, net | (21.3) | (19.9) | (23.4) | (41.2) | (47.0) | ||||
Restructuring and other credits (charges) | (9.2) | (1.2) | 1.3 | (10.4) | (6.2) | ||||
Loss on asset sales and sales of businesses, net | (0.6) | — | (115.9) | (0.6) | (134.2) | ||||
Income (loss) before income taxes | $ 82.8 | $ 76.5 | $ (30.9) | $ 159.3 | $ 9.2 | ||||
(a) The following is depreciation & amortization by each business segment: | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||
High Performance Materials & Components | $ 17.9 | $ 17.4 | $ 16.9 | $ 35.3 | $ 34.8 | ||||
Advanced Alloys & Solutions | 16.2 | 16.1 | 16.7 | 32.3 | 32.9 | ||||
Other | 1.8 | 1.6 | 2.4 | 3.4 | 3.8 | ||||
Total depreciation & amortization | $ 35.9 | $ 35.1 | $ 36.0 | $ 71.0 | $ 71.5 |
ATI Inc. | |||
June 30 | December 31 | ||
2023 | 2022 | ||
ASSETS | |||
Current Assets: | |||
Cash and cash equivalents | $ 267.1 | $ 584.0 | |
Accounts receivable, net of allowances for doubtful accounts | 710.1 | 579.2 | |
Short-term contract assets | 51.8 | 64.1 | |
Inventories, net | 1,380.4 | 1,195.7 | |
Prepaid expenses and other current assets | 49.2 | 53.4 | |
Total Current Assets | 2,458.6 | 2,476.4 | |
Property, plant and equipment, net | 1,568.1 | 1,549.1 | |
Goodwill | 227.2 | 227.2 | |
Other assets | 180.8 | 192.9 | |
Total Assets | $ 4,434.7 | $ 4,445.6 | |
LIABILITIES AND EQUITY | |||
Current Liabilities: | |||
Accounts payable | $ 467.7 | $ 553.3 | |
Short-term contract liabilities | 137.8 | 149.1 | |
Short-term debt and current portion of long-term debt | 73.9 | 41.7 | |
Other current liabilities | 218.1 | 219.8 | |
Total Current Liabilities | 897.5 | 963.9 | |
Long-term debt | 1,699.9 | 1,706.3 | |
Accrued postretirement benefits | 176.7 | 184.9 | |
Pension liabilities | 172.0 | 225.6 | |
Other long-term liabilities | 179.4 | 207.7 | |
Total Liabilities | 3,125.5 | 3,288.4 | |
Total ATI stockholders' equity | 1,194.0 | 1,045.9 | |
Noncontrolling interests | 115.2 | 111.3 | |
Total Equity | 1,309.2 | 1,157.2 | |
Total Liabilities and Equity | $ 4,434.7 | $ 4,445.6 |
ATI Inc. | ||||
Six Months Ended | ||||
June 30 | June 30 | |||
2023 | 2022 | |||
Operating Activities: | ||||
Net income | $ 151.3 | $ 0.9 | ||
Depreciation and amortization | 71.0 | 71.5 | ||
Share-based compensation | 14.1 | 14.5 | ||
Deferred taxes | 0.6 | (0.2) | ||
Net gain from disposal of property, plant and equipment | (0.3) | (1.0) | ||
Loss on sales of businesses | 0.6 | 141.0 | ||
Changes in operating assets and liabilities: | ||||
Inventories | (184.7) | (265.9) | ||
Accounts receivable | (131.2) | (173.3) | ||
Accounts payable | (66.3) | 62.6 | ||
Retirement benefits | (29.7) | 1.0 | ||
Accrued liabilities and other | (42.5) | (73.5) | ||
Cash used in operating activities | (217.1) | (222.4) | ||
Investing Activities: | ||||
Purchases of property, plant and equipment | (103.3) | (54.8) | ||
Proceeds from disposal of property, plant and equipment | 1.6 | 1.0 | ||
Transaction costs for sales of businesses, net of proceeds | (0.3) | (2.8) | ||
Other | 1.2 | 0.9 | ||
Cash used in investing activities | (100.8) | (55.7) | ||
Financing Activities: | ||||
Payments on long-term debt and finance leases | (11.3) | (11.6) | ||
Net proceeds (payments) under credit facilities | 33.2 | (13.4) | ||
Purchase of treasury stock | (10.1) | (89.9) | ||
Sale to noncontrolling interests | — | 0.9 | ||
Dividends paid to noncontrolling interests | — | (16.0) | ||
Taxes on share-based compensation and other | (10.8) | (5.6) | ||
Cash provided by (used in) financing activities | 1.0 | (135.6) | ||
Decrease in cash and cash equivalents | (316.9) | (413.7) | ||
Cash and cash equivalents at beginning of period | 584.0 | 687.7 | ||
Cash and cash equivalents at end of period | $ 267.1 | $ 274.0 |
ATI Inc. | ||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||||||
Market | ||||||||||||||
Aerospace & Defense: | ||||||||||||||
Jet Engines- | $ 340.9 | 32 % | $ 310.9 | 30 % | $ 248.7 | 26 % | $ 651.8 | 31 % | $ 445.3 | 25 % | ||||
Airframes- Commercial | 164.2 | 16 % | 169.9 | 17 % | 106.1 | 11 % | 334.1 | 16 % | 199.8 | 11 % | ||||
Defense | 101.7 | 10 % | 94.9 | 9 % | 81.6 | 9 % | 196.6 | 10 % | 158.1 | 9 % | ||||
Total Aerospace & | $ 606.8 | 58 % | $ 575.7 | 56 % | $ 436.4 | 46 % | 57 % | $ 803.2 | 45 % | |||||
Energy: | ||||||||||||||
Oil & Gas | 111.3 | 11 % | 127.5 | 12 % | 125.2 | 13 % | 238.8 | 12 % | 228.3 | 13 % | ||||
Specialty Energy | 68.2 | 6 % | 82.7 | 8 % | 75.1 | 8 % | 150.9 | 7 % | 131.7 | 7 % | ||||
Total Energy | 179.5 | 17 % | 210.2 | 20 % | 200.3 | 21 % | 389.7 | 19 % | 360.0 | 20 % | ||||
Automotive | 52.8 | 5 % | 59.4 | 6 % | 75.5 | 8 % | 112.2 | 5 % | 166.5 | 9 % | ||||
Construction/Mining | 48.4 | 5 % | 40.4 | 4 % | 39.9 | 4 % | 88.8 | 4 % | 91.9 | 5 % | ||||
Medical | 41.9 | 4 % | 35.0 | 3 % | 39.5 | 4 % | 76.9 | 4 % | 75.7 | 4 % | ||||
Electronics | 36.0 | 3 % | 34.4 | 3 % | 49.4 | 5 % | 70.4 | 3 % | 101.0 | 6 % | ||||
Food Equipment & | 20.9 | 2 % | 21.5 | 2 % | 62.7 | 6 % | 42.4 | 2 % | 96.7 | 5 % | ||||
Other | 59.7 | 6 % | 61.5 | 6 % | 55.8 | 6 % | 121.2 | 6 % | 98.6 | 6 % | ||||
Total | 100 % | 100 % | $ 959.5 | 100 % | 100 % | 100 % |
ATI Inc. | |||||||||
Three Months Ended | Six Months Ended | ||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | |||||
2023 | 2023 | 2022 | 2023 | 2022 | |||||
Percentage of Total ATI Sales | |||||||||
Nickel-based alloys and specialty alloys | 52 % | 53 % | 52 % | 52 % | 51 % | ||||
Precision forgings, castings and components | 17 % | 16 % | 15 % | 16 % | 15 % | ||||
Titanium and titanium-based alloys | 14 % | 14 % | 11 % | 14 % | 10 % | ||||
Precision rolled strip products | 9 % | 10 % | 14 % | 10 % | 15 % | ||||
Zirconium and related alloys | 8 % | 7 % | 8 % | 8 % | 9 % | ||||
Total | 100 % | 100 % | 100 % | 100 % | 100 % |
Note: Hot-Rolling and Processing Facility conversion service sales in the AA&S segment are excluded from this presentation. |
ATI Inc. | ||||||||||
Three Months Ended | Six Months Ended | |||||||||
June 30 | March 31 | June 30 | June 30 | June 30 | ||||||
2023 | 2023 | 2022 | 2023 | 2022 | ||||||
Numerator for Basic net income (loss) per | ||||||||||
Net income (loss) attributable to ATI | $ 76.0 | $ 70.1 | $ (38.0) | $ 146.1 | $ (7.1) | |||||
Effect of dilutive securities: | ||||||||||
2.6 | 2.6 | — | 5.2 | — | ||||||
Numerator for Diluted net income (loss) per | ||||||||||
Net income (loss) attributable to ATI after | $ 78.6 | $ 72.7 | $ (38.0) | $ 151.3 | $ (7.1) | |||||
Denominator for Basic net income (loss) per | ||||||||||
Weighted average shares outstanding | 128.5 | 128.5 | 124.6 | 128.5 | 125.5 | |||||
Effect of dilutive securities: | ||||||||||
Share-based compensation | 2.8 | 2.8 | — | 2.8 | — | |||||
18.8 | 18.8 | — | 18.8 | — | ||||||
Denominator for Diluted net income (loss) per | ||||||||||
Adjusted weighted average shares assuming | 150.1 | 150.1 | 124.6 | 150.1 | 125.5 | |||||
Basic net income (loss) attributable to ATI per | $ 0.59 | $ 0.55 | $ (0.31) | $ 1.14 | $ (0.06) | |||||
Diluted net income (loss) attributable to ATI per | $ 0.52 | $ 0.48 | $ (0.31) | $ 1.01 | $ (0.06) |
ATI Inc.
Non-GAAP Financial Measures
(Unaudited, dollars in millions, except per share amounts)
The Company reports its financial results in accordance with accounting principles generally accepted in
Three Months Ended | |||
June 30 | March 31 | June 30 | |
Net income (loss) attributable to ATI | $ 76.0 | $ 70.1 | $ (38.0) |
Adjustments for special items, pre-tax: | |||
Restructuring and other charges (credits) (a) | 10.0 | 1.2 | (1.3) |
Loss on asset sales and sales of businesses, net (b) | 0.6 | — | 115.9 |
Total pre-tax adjustments | 10.6 | 1.2 | 114.6 |
Income tax on pre-tax adjustments for special items | (0.4) | (0.1) | 0.1 |
Net income attributable to ATI excluding special | $ 86.2 | $ 71.2 | $ 76.7 |
Three Months Ended | Three Months Ended | Three Months Ended | |||||||
June 30, 2023 | March 31, 2023 | June 30, 2022 | |||||||
Reported | Adjusted | Reported | Adjusted | Reported | Adjusted | ||||
Numerator for Basic net income (loss) per | |||||||||
Net income (loss) attributable to ATI | $ 76.0 | $ 86.2 | $ 70.1 | $ 71.2 | $ (38.0) | $ 76.7 | |||
Effect of dilutive securities | 2.6 | 2.6 | 2.6 | 2.6 | — | 4.0 | |||
Numerator for Diluted net income (loss) per | |||||||||
Net income (loss) attributable to ATI after | $ 78.6 | $ 88.8 | $ 72.7 | $ 73.8 | $ (38.0) | $ 80.7 | |||
Denominator for Basic net income (loss) | |||||||||
Weighted average shares outstanding | 128.5 | 128.5 | 128.5 | 128.5 | 124.6 | 124.6 | |||
Effect of dilutive securities | 21.6 | 21.6 | 21.6 | 21.6 | — | 26.1 | |||
Denominator for Diluted net income (loss) | |||||||||
Adjusted weighted average shares assuming conversions | 150.1 | 150.1 | 150.1 | 150.1 | 124.6 | 150.7 | |||
Diluted net income (loss) attributable to | $ 0.52 | $ 0.59 | $ 0.48 | $ 0.49 | $ (0.31) | $ 0.54 |
Earnings before interest, taxes, depreciation and amortization (EBITDA) | ||||||
Three Months Ended | ||||||
June 30 | March 31 | June 30 | ||||
Net income (loss) attributable to ATI | $ 76.0 | $ 70.1 | $ (38.0) | |||
Net income attributable to noncontrolling interests | 3.1 | 2.1 | 3.7 | |||
Net income (loss) | 79.1 | 72.2 | (34.3) | |||
(+) Depreciation and Amortization | 35.9 | 35.1 | 36.0 | |||
(+) Interest Expense | 21.3 | 19.9 | 23.4 | |||
(+) Income Tax Provision | 3.7 | 4.3 | 3.4 | |||
(+/-) Restructuring and other charges (credits) (a) | 9.2 | 1.2 | (1.3) | |||
(+) Loss on asset sales and sales of businesses, net (b) | 0.6 | — | 115.9 | |||
ATI Adjusted EBITDA | $ 149.8 | $ 132.7 | $ 143.1 | |||
Corporate expenses | 18.1 | 17.3 | 16.7 | |||
Closed operations and other expense (income) | 3.4 | 2.8 | 5.1 | |||
Total segment EBITDA | $ 171.3 | $ 152.8 | $ 164.9 |
(a) Second quarter 2023 includes pre-tax charges totaling |
(b) Second quarter 2023 includes a |
Managed Working Capital
As part of managing the performance of our business, we focus on controlling Managed Working Capital, which we define as gross accounts receivable, short-term contract assets and gross inventories, less accounts payable and short-term contract liabilities. We exclude the effects of inventory valuation reserves and reserves for uncollectible accounts receivable when computing this non-GAAP performance measure, which is not intended to replace Working Capital or to be used as a measure of liquidity. We assess Managed Working Capital performance as a percentage of the prior three months annualized sales to evaluate the asset intensity of our business.
June 30 | March 31 | December 31 | ||||
2023 | 2023 | 2022 | ||||
Accounts receivable | $ 710.1 | $ 725.6 | $ 579.2 | |||
Short-term contract assets | 51.8 | 52.7 | 64.1 | |||
Inventory | 1,380.4 | 1,293.8 | 1,195.7 | |||
Accounts payable | (467.7) | (447.5) | (553.3) | |||
Short-term contract liabilities | (137.8) | (149.7) | (149.1) | |||
Subtotal | 1,536.8 | 1,474.9 | 1,136.6 | |||
Allowance for doubtful accounts | 7.1 | 7.4 | 7.7 | |||
Inventory reserves | 88.6 | 79.8 | 70.9 | |||
Managed working capital | $ 1,632.5 | $ 1,562.1 | $ 1,215.2 | |||
Annualized prior 3 months sales | $ 4,183.7 | $ 4,152.6 | $ 4,041.9 | |||
Managed working capital as a | ||||||
% of annualized sales (a) | 39.0 % | 37.6 % | 30.1 % | |||
Change in managed working capital: | ||||||
Year-to-date 2023 | $ 417.3 | |||||
Q2 2023 | $ 70.4 | |||||
(a) As of June 30, 2023 the Company had |
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SOURCE ATI
FAQ
What were the Q2 2023 sales for ATI Inc. (NYSE: ATI)?
What was the net income attributable to ATI in Q2 2023?
What percentage of Q2 2023 sales did Aerospace and defense represent?
What was the Q2 2023 adjusted net income and EPS for ATI?