NASDAQ$KALU

Kaiser Aluminum Corporation · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Kaiser Aluminum reported a net loss but adjusted earnings per share increased year-over-year, driven by strong aerospace demand and value added revenue pricing.

Kaiser Aluminum Corporation reported a net loss of $11 million for Q4 2019, which includes pre-tax charges of $45 million related to senior notes refinancing and goodwill impairment. However, adjusted net income was $29 million, or $1.79 per diluted share, compared to $30 million, or $1.77 per diluted share, for the prior year period. Value added revenue increased to $213 million, driven by strong aerospace demand.

  • Net Sales were $369 million.
  • Value Added Revenue was $213 million, up 1% year-over-year.
  • Net Loss was $11 million, or $0.66 per diluted share, including pre-tax charges of $45 million.
  • Adjusted Earnings per Diluted Share was $1.79.

Headline financials

Total Revenue

$369M

Previous: $389M-5.1%
EPS (adj)

$1.79

Previous: $1.77+1.1%
Adjusted EBITDA

$52M

Previous: $55M-5.5%
Adjusted EBITDA Margin

24.5%

Previous: 26.0%-5.8%
Net Income

-$11M

Previous: $23.6M-146.6%
Operating Income

$10M

Previous: $36.9M-72.9%
Gross Profit

$70.7M

Previous: $60.6M+16.7%
Cash & Equivalents

$264M

Previous: $126M+110.4%
Total Assets

$1.53B

Previous: $1.42B+7.5%
Stock-Based Comp

$1.4M

Previous: $1.9M-26.3%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$369M

Q4 2019-5.1%vs Q4 2018
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $22M total across 1 segment · Q4 2019

  • Automotive Extrusions
    $22M-18.8%

Forward guidance

Kaiser Aluminum expects a low-single-digit year-over-year increase in both total shipments and value added revenue, with an EBITDA margin above 26% for the full year 2020.

Tailwinds

  • Increased defense spending and demand for the F35 Joint Strike Fighter and the F/A-18 Super Hornet will strengthen the aerospace order book.
  • North American automotive build rates in 2020 are expected to be similar to 2019, with double-digit year-over-year growth in automotive shipments as new programs come on stream.
  • General engineering demand is expected to be driven by strong semi-conductor demand and relief from supply chain destocking.
  • A new $145 million heavy gauge plate stretcher will provide increased capacity, redundancy, efficiency, and operational security for a critical operation in the Company's process flow.
  • The Company expects that the result will be pent-up long-term demand for commercial aerospace applications in addition to growing long-term demand for its heat treat plate products.

Headwinds

  • The impact of the Boeing 737 MAX situation is expected to affect aerospace shipments.
  • Shipments of non-core applications are expected to decline significantly in 2020 as capacity is allocated to more strategic applications.
  • The timing of other investment modules of the $375 million project will depend upon market conditions.
  • Company's Trentwood facility was impacted by planned and unplanned downtime during the first half of 2019.
  • Automotive shipments reflected lower build rates, a significant number of automotive model changeovers and new program delays, in addition to the impact of the General Motors strike in the latter part of 2019.

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 Q4 2019

Historical avgQ4 2019

-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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