NASDAQ$KALU

Kaiser Aluminum Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported strong first quarter results with record adjusted EBITDA and EBITDA margin, despite impact from automotive customer facility closings.

Kaiser Aluminum Corporation reported a net income of $29 million, or $1.81 per diluted share, for the first quarter of 2020. The company's adjusted EBITDA reached a record $59 million, with an adjusted EBITDA margin of 27.4%.

  • Net sales were $369 million, while value added revenue was $217 million, a 1% decrease year-over-year.
  • Net income was $29 million, with net income per diluted share at $1.81.
  • Adjusted net income was $30 million, with adjusted earnings per diluted share at $1.90.
  • A record adjusted EBITDA of $59 million and a record adjusted EBITDA margin of 27.4% were achieved.

Headline financials

Total Revenue

$369M

Previous: $395M-6.6%
EPS (adj)

$1.90

Previous: $1.85+2.7%
Adjusted EBITDA Margin

27.4%

Previous: 25.7%+6.6%
Free Cash Flow

$29.1M

Previous: $28M+3.9%
Net Income

$29.1M

Previous: $28M+3.9%
Operating Income

$45.6M

Previous: $43M+6.0%
Gross Profit

$82.7M

Previous: $80.1M+3.2%
Cash & Equivalents

$307M

Previous: $115M+166.4%
Total Assets

$1.55B

Previous: $1.45B+7.3%
Stock-Based Comp

$1.7M

Previous: $2.4M-29.2%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$369M

Q1 2020-6.6%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $24M total across 1 segment · Q1 2020

  • Automotive Extrusions
    $24M-7.7%

Forward guidance

The company anticipates that its commercial aerospace value added revenue could be approximately 20-25% lower in 2020 compared to its record value added revenue in 2019. Demand for the Company's defense business is expected to remain strong through 2020. The Company will suspend providing a full year outlook for 2020 until there is more clarity around the full economic impact of the COVID-19 pandemic.

Tailwinds

  • Began 2020 with a solid book of business
  • Reported strong first quarter results
  • Achieved record adjusted EBITDA
  • Achieved record adjusted EBITDA margin, despite some impact from automotive customer facility closings in the latter part of the quarter
  • Demand for the company's defense business is expected to remain strong through 2020

Headwinds

  • The pandemic has introduced significant business and economic uncertainty
  • The pandemic has introduced significant business and economic challenges
  • The pandemic has introduced potential opportunities for the longer-term
  • Commercial aerospace value added revenue could be approximately 20-25% lower in 2020 compared to its record value added revenue in 2019
  • Suspended providing a full year outlook for 2020 until there is more clarity around the full economic impact of the COVID-19 pandemic.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.4%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-1.2%

Avg return

30 days after

46%

32 / 69 earnings

Positive

+19.4%

Q3 2025

Best reaction

-19.7%

Q2 2024

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.1%+6.0%+7.6%
Q4 2025-9.0%-7.8%-23.2%
Q3 2025+19.4%+20.1%+17.8%
Q2 2025-0.3%-1.2%+1.3%
Q1 2025+5.9%+9.7%+18.6%
Q4 2024+4.9%-0.7%-7.1%
Q3 2024-5.9%+6.3%+14.1%
Q2 2024-19.7%-21.3%-23.6%
Q1 2024-1.3%+6.2%+6.8%
Q4 2023+7.4%+9.6%+23.4%
Q3 2023-10.0%-12.1%-7.2%
Q2 2023+5.2%-0.2%-8.4%
Q1 2023+12.1%+10.9%+10.6%
Q4 2022-7.4%-10.3%-17.3%
Q3 2022+10.2%+11.8%+28.8%
Q2 2022+2.9%+6.0%+8.7%
Q1 2022-1.7%-8.8%-5.5%
Q4 2021-7.2%-5.7%-5.8%
Q3 2021-9.1%-13.0%-10.3%
Q2 2021-2.4%+6.2%+6.7%
Q1 2021+0.5%+5.3%+8.1%
Q4 2020-1.3%+1.5%-5.0%
Q3 2020-0.1%-2.7%+16.7%
Q2 2020-4.4%-5.7%-9.9%
Q1 2020-3.4%-5.2%-11.9%
Q4 2019+3.2%+0.2%-46.7%
Q3 2019+2.2%+10.2%+8.8%
Q2 2019+0.2%+1.2%-9.6%
Q1 2019-6.0%-7.2%-13.6%
Q4 2018+2.6%+4.6%-3.5%
Q3 2018-9.6%-7.1%-9.5%
Q2 2018+3.6%+2.6%+0.2%
Q1 2018+0.4%-1.4%+8.7%
Q4 2017-2.0%-0.5%-5.6%
Q3 2017-3.3%-3.9%-8.0%
Q2 2017+3.2%+5.1%+1.8%
Q1 2017+5.9%+6.1%+2.2%
Q4 2016+0.3%-6.4%-1.3%
Q3 2016-12.5%-12.2%+0.7%
Q2 2016-5.8%-7.3%-5.7%
Q1 2016+0.8%
Q4 2015+0.1%
Q3 2015-0.1%
Q2 2015+4.8%
Q1 2015-0.4%
Q4 2014-0.7%
Q3 2014-4.8%
Q2 2014+2.0%
Q1 2014-3.1%
Q4 2013-0.7%
Q3 2013-7.3%
Q2 2013+0.5%
Q1 2013+7.0%
Q4 2012-4.6%
Q3 2012+3.1%
Q2 2012+9.1%
Q1 2012+6.2%
Q4 2008-1.9%
Q4 2011-1.9%
Q3 2011+9.0%
Q2 2011-0.6%
Q1 2010-0.1%
Q1 2011-0.3%
Q4 2010-9.4%
Q3 2010-2.2%
Q3 2009-2.2%
Q2 2010+0.5%
Q2 2009+0.5%
Q4 2009+0.5%

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