NYSE$MTUS

Metallus Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported a net loss amidst COVID-19 challenges, but achieved record-high operating cash flow and earnings guidance.

TimkenSteel reported first-quarter 2020 net sales of $259.7 million and a net loss of $19.9 million. The company generated strong operating cash flow of $63.8 million and achieved its first-quarter 2020 shipment, net income (loss) and EBITDA guidance.

  • Net sales decreased by approximately 30 percent compared to the prior-year first quarter.
  • Ship tons declined 18 percent from the prior-year first quarter.
  • Surcharge revenue decreased 49 percent from the prior-year period.
  • Operating cash flow was $63.8 million for the first quarter of 2020.

Headline financials

Total Revenue

$260M

Previous: $371M-30.0%
EPS (adj)

-$0.25

Previous: $0.09-377.8%
Ship Tons

213.4K

Previous: 260.9K-18.2%
Capital Expenditures

-$2.9M

Previous: -$4.4M+34.1%
Free Cash Flow

-$22.8M

Previous: -$200K-11300.0%
Net Income

-$19.9M

Previous: $4.2M-573.8%
Operating Income

-$13.9M

Previous: $5.8M-339.7%
Gross Profit

$7.8M

Previous: $29.1M-73.2%
Cash & Equivalents

$65.6M

Previous: $7.8M+741.0%
Total Assets

$1.07B

Previous: $1.2B-11.2%
Stock-Based Comp

$2M

Previous: $2.2M-9.1%

Revenue & EPS history

Metallus · Revenue · Quarterly

$260M

Q1 2020-30%vs Q1 2019
Beat estimate in 6 of 15 quarters(40%)
ActualEstimate

Revenue by segment

Metallus · $162M total across 3 segments · Q1 2020

  • Industrial
    $113M
  • Energy
    $25.2M
  • Other
    $23.5M

Forward guidance

Given the evolving impact of COVID-19 on the overall economy, the company will not provide quarterly guidance at this time. The company remains committed to delivering approximately $70 million of run rate savings from its previous cost reduction actions.

Tailwinds

  • Focus on employee safety
  • Serving customers
  • Conserving cash
  • Aligning costs and production with sharply lower COVID-19-driven demand.
  • Committed to delivering approximately $70 million of run rate savings from its previous cost reduction actions.

Headwinds

  • Extent and duration of the COVID-19 pandemic and resulting effect on the company’s operations and financial results remain uncertain.
  • Sharply lower COVID-19-driven demand
  • Reduced interim CEO and senior executives’ base salaries by 20 percent and other executives’ base salaries by 10 percent, effective May 1
  • Implemented unpaid rolling furloughs for approximately 80 percent of salaried employees, beginning in early April
  • Aggressively reduced production schedules at all plants to align operations with customer demand, resulting in the temporary layoff of manufacturing employees

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

+1.6%

Avg return

Earnings day

-0.7%

Avg return

5 days after

+1.8%

Avg return

30 days after

42%

22 / 52 earnings

Positive

+80.9%

Q4 2015

Best reaction

-16.6%

Q4 2025

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+1.0%-0.6%+8.3%
Q4 2025-16.6%-18.1%-29.2%
Q3 2025-1.7%-6.8%+0.9%
Q1 2025-11.1%+2.5%+7.4%
Q4 2024-8.0%-10.6%-13.4%
Q3 2024-4.1%-3.6%+0.4%
Q2 2024-8.6%-12.6%-20.5%
Q1 2024+10.7%+11.3%+9.6%
Q4 2023-0.2%+1.3%+9.1%
Q3 2023-2.5%+0.0%+1.8%
Q2 2023-9.6%-6.3%-3.3%
Q1 2023+5.4%+6.9%+12.0%
Q4 2022+1.7%+1.0%-0.9%
Q3 2022+12.2%+14.1%+16.4%
Q2 2022-2.9%-1.1%-12.1%
Q1 2022-9.5%-13.8%+18.5%
Q4 2021+14.3%+16.2%+56.3%
Q3 2021+5.3%+10.2%+0.6%
Q2 2021+12.0%+31.8%+4.2%
Q1 2021+0.2%+11.1%+15.5%
Q4 2020-4.4%-0.7%+28.4%
Q3 2020+1.8%+15.5%+29.2%
Q2 2020+2.7%+5.9%-8.7%
Q1 2020+30.0%+26.2%+70.8%
Q4 2019-5.9%-7.8%-41.0%
Q3 2019+13.2%-13.9%+8.7%
Q2 2019-3.0%-9.9%-25.3%
Q1 2019+6.7%-1.7%-28.8%
Q4 2018+12.0%+3.1%-15.3%
Q3 2018+15.4%+5.4%+0.5%
Q2 2018-14.9%-23.8%-23.6%
Q1 2018+0.6%-2.2%+1.9%
Q4 2017-11.2%-14.3%-12.7%
Q3 2017-12.4%-22.1%-17.6%
Q2 2017-2.0%+1.1%-5.7%
Q1 2017-8.3%-9.9%-16.6%
Q4 2016+13.9%+20.0%+11.7%
Q3 2016-4.2%-7.9%+48.7%
Q2 2016-15.0%-22.7%-15.7%
Q1 2016-1.4%
Q4 2015+80.9%
Q3 2015-2.8%
Q2 2015-6.5%
Q1 2014+1.9%
Q1 2015+6.7%
Q4 2014-3.4%
Q4 2012-3.4%
Q3 2013-0.6%
Q3 2014-0.3%
Q4 2013-1.9%
Q2 2013-1.9%
Q2 2014+10.4%
Q1 2013

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