Metallus(MTUS) - 2024 Q3 - Quarterly Results

Financial Performance - Net sales for Q3 2024 were $227.2 million, a decrease of 23$294.7 million in Q2 2024 and a 36% decrease from $354.2 million in Q3 2023[1][2][3] - The company reported a net loss of$5.9 million for Q3 2024, compared to a net income of $4.6 million in Q2 2024 and$24.8 million in Q3 2023[1][2][3] - Adjusted EBITDA for Q3 2024 was $6.1 million, down from$19.9 million in Q2 2024 and $46.8 million in Q3 2023[1][2][3] - Net sales for the three months ended September 30, 2024, were$227.2 million, a decrease of 35.8% compared to $354.2 million for the same period in 2023[19] - Gross profit for the nine months ended September 30, 2024, was$86.8 million, down 40.2% from $145.1 million in the prior year[19] - Net income for the three months ended September 30, 2024, was a loss of$5.9 million, compared to a profit of $24.8 million in the same period last year[19] - Basic earnings per share for the three months ended September 30, 2024, were$(0.13), compared to $0.56 for the same period in 2023[19] - The net income for the three months ended September 30, 2024, was a loss of$5.9 million, resulting in a net income margin of -2.6%, compared to a profit of $24.8 million and a margin of 7.0$69.4 million, with an adjusted EBITDA margin of 8.2%, compared to $133.3 million and 12.9$0.49 for the nine months ended September 30, 2024, down from $1.43 in 2023[29] Liquidity and Capital Structure - The company had total liquidity of$496.8 million as of September 30, 2024, with cash and cash equivalents of $254.6 million[1][8] - Total current assets decreased to$602.0 million as of September 30, 2024, from $656.8 million at the end of 2023, a decline of 8.3$420.7 million as of September 30, 2024, from $443.7 million at the end of 2023, a reduction of 5.2$254.6 million as of September 30, 2024, down from $280.6 million at the end of 2023[20] - The company reported a retained deficit of$(31.0) million as of September 30, 2024, improving from $(53.7) million at the end of 2023[20] - Total shareholders' equity decreased to$712.7 million as of September 30, 2024, from $731.6 million at the end of 2023, a decline of 2.4$496.8 million, down from $539.4 million at the end of 2023[46] Operational Metrics - Ship tons decreased by 20$2,015, with industrial at 2,028 and aerospace & defense at 2,580[40] - The company reported surcharges per ton of $493 for the total, with industrial at$543 and automotive at 431[40] - The aerospace & defense segment generated base sales of 25.6 million in Q3 2024, reflecting a decrease from previous periods[39] Future Outlook - The company anticipates aerospace & defense sales to exceed $250 million in 2026, driven by increased order activity and ongoing investments[5] - Capital expenditures for 2024 are expected to be approximately$65 million, including $15 million funded by the U.S. government[12] Shareholder Actions - The company repurchased approximately 1.2 million shares for$20.1 million in Q3 2024, totaling 1.8 million shares repurchased for $34.1 million year-to-date[10] Tax and Other Financial Considerations - An effective income tax rate in the low 20$3.5 million for the three months ended September 30, 2024, compared to $3.0 million in the same period of 2023[21] - The company recognized an insurance recovery of$11.3 million in the first half of 2023 related to unplanned operational downtime, with $9.8 million recorded in Q1 and$1.5 million in Q2[31] - Business transformation costs for the nine months ended September 30, 2024, amounted to $1.5 million, while IT transformation costs were$3.4 million[29] - The loss on extinguishment of debt for the nine months ended September 30, 2024, was $11.4 million, contributing to the overall financial adjustments[29]