NYSE$MTUS

Metallus Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Reported first quarter net sales and net income.

TimkenSteel reported a strong start to the year with net sales of $273.6 million and net income of $9.8 million, or $0.20 per diluted share. Adjusted net income was $22.6 million, or $0.43 per diluted share, and adjusted EBITDA was $40.8 million. The company completed the transition of melt and casting activities to a single location at the Faircrest facility.

  • Net sales of $273.6M increased 30% sequentially
  • Net income of $9.8 million and adjusted EBITDA of $40.8 million, a significant improvement both sequentially and compared with the prior-year quarter
  • Record total liquidity of $357.5 million
  • Completed transition to single melt and casting shop at Faircrest facility

Headline financials

Total Revenue

$274M

Previous: $260M+5.4%
EPS (adj)

$0.43

Previous: -$0.25+272.0%
Ship Tons

193.4K

Previous: 213.4K-9.4%
Capital Expenditures

-$2.3M

Previous: -$2.9M+20.7%
Free Cash Flow

$7.5M

Previous: -$22.8M+132.9%
Net Income

$9.8M

Previous: -$19.9M+149.2%
Operating Income

$4.8M

Previous: -$13.9M+134.5%
Gross Profit

$30.7M

Previous: $7.8M+293.6%
Cash & Equivalents

$116M

Previous: $65.6M+76.4%
Total Assets

$1.05B

Previous: $1.07B-2.0%
Stock-Based Comp

$1.8M

Previous: $2M-10.0%

Revenue & EPS history

Metallus · Revenue · Quarterly

$274M

Q1 2021+5.4%vs Q1 2020
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Metallus · $140M total across 3 segments · Q1 2021

  • Industrial
    $125M+10.1%
  • Energy
    $7.7M-69.4%
  • Other
    $7.6M-67.7%

Forward guidance

Given steady improvement in the automotive and industrial end markets, the company expects second quarter ship tons to increase sequentially by high-single digits on a percentage basis. Additionally, the company expects adjusted EBITDA growth from the first quarter of 2021 with melt utilization of 80 percent or higher. Capital expenditures are expected to be approximately $20 million in 2021, consistent with previous guidance. Regarding the convertible debt due June 1, 2021, at maturity the company intends to repay the remaining outstanding principal balance plus accrued interest with available cash.

Tailwinds

  • Second quarter ship tons to increase sequentially by high-single digits on a percentage basis.
  • Adjusted EBITDA growth from the first quarter of 2021
  • Melt utilization of 80 percent or higher
  • Capital expenditures are expected to be approximately $20 million in 2021, consistent with previous guidance.
  • Company intends to repay the remaining outstanding principal balance plus accrued interest with available cash.

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 2021

Historical avgQ1 2021

+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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