NASDAQ$KALU

Kaiser Aluminum Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Reported solid execution under very challenging business conditions.

Kaiser Aluminum Corporation reported fourth quarter and full year 2020 results, reflecting solid execution under very challenging business conditions. Value added revenue for the fourth quarter 2020 decreased to $152 million from $213 million in the prior year period, primarily driven by the decline in commercial aerospace demand.

  • Net sales for the fourth quarter 2020 were $272 million compared to $369 million in the prior year period, reflecting a 22% decrease in shipments and a 6% decrease in average selling price.
  • Value added revenue for the fourth quarter 2020 decreased to $152 million from $213 million in the prior year period, primarily driven by the decline in commercial aerospace demand.
  • Adjusted EBITDA of $29 million in the fourth quarter 2020 decreased $24 million compared to the prior year period reflecting the total sales impact of approximately $30 million, offset by lower costs flexed with the reduction in volume.
  • Reported net income for the fourth quarter 2020 was $6 million, or $0.37 per diluted share, compared to net loss and diluted loss per share of $11 million and $0.66, respectively, for the prior year period.

Headline financials

Total Revenue

$272M

Previous: $369M-26.3%
EPS (adj)

$0.35

Previous: $1.79-80.4%
Adjusted EBITDA Margin

18.8%

Previous: 24.5%-23.3%
Shipments (lbs)

119.0M

No prior period
Net Income

$6M

Previous: -$11M+154.5%
Operating Income

$19M

Previous: $10M+90.0%
Gross Profit

$37.1M

Previous: $70.7M-47.5%
Cash & Equivalents

$780M

Previous: $264M+195.2%
Total Assets

$1.86B

Previous: $1.53B+22.2%
Stock-Based Comp

$2.6M

Previous: $1.4M+85.7%

Revenue & EPS history

Kaiser Aluminum · Revenue · Quarterly

$272M

Q4 2020-26.3%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Kaiser Aluminum · $26M total across 1 segment · Q4 2020

  • Automotive Extrusions
    $26M+18.2%

Forward guidance

For the full year 2021, the company anticipates total value added revenue up 5% to 10% year-over-year and an adjusted EBITDA margin comparable to 2020 driven by strong growth in automotive, defense and general engineering applications.

Tailwinds

  • Total value added revenue up 5% to 10% year-over-year
  • Adjusted EBITDA margin comparable to 2020 driven by strong growth in automotive, defense and general engineering applications.
  • Value added revenue and shipments for the Company’s automotive extrusion applications are anticipated to increase 35% to 45% year-over-year
  • General engineering value added revenue and shipments are anticipated to increase 10% to 15% year-over-year reflecting solid service center and end market demand driven by continued growth in semi-conductor and automotive demand.
  • The transaction is anticipated to close on March 31, 2021 and is expected to be immediately accretive to earnings and cash flow.

Headwinds

  • Value added revenue for the Company’s aerospace/high strength applications to be down 5% to 8% year-over-year on slightly lower shipments compared to 2020
  • Commercial aerospace demand continues to reflect weak airline travel impacted by the pandemic and destocking in the supply chain.
  • Commercial aerospace demand full recovery in 2023-2024.
  • Lower commercial aerospace demand in 2021 is expected to be mitigated in part by continued strength in demand for defense applications as build rates for the F-35 Joint Strike Fighter are expected to increase 20% to 30% compared to the prior year
  • Reshoring continues as many North American OEM’s secure domestic supply for their raw material needs to minimize risk of supply chain disruption.

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 2020

Historical avgQ4 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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