Carpenter(CRS)2025-01-30 21:11Financial Performance - Net sales for the three months ended December 31, 2024, increased to $676.9 million, up 8.9% from $624.2 million in the same period of 2023[12] - Gross profit for the six months ended December 31, 2024, was $353.8 million, representing a 43.4% increase compared to $246.7 million in 2023[12] - Operating income for the three months ended December 31, 2024, rose to $118.9 million, a 70.4% increase from $69.8 million in the prior year[12] - Net income for the six months ended December 31, 2024, was $168.9 million, compared to $86.6 million in 2023, reflecting a 95.2% increase[12] - Earnings per diluted share for the six months ended December 31, 2024, increased to $3.33, compared to $1.73 in the same period of 2023[12] - For the three months ended December 31, 2024, net income was $84.1 million, a 97.5% increase from $42.7 million in 2023[52] - Basic earnings per common share for the three months ended December 31, 2024, was $1.68, up 95.3% from $0.86 in 2023[52] - Consolidated operating income for the six months ended December 31, 2024, was $232.5 million, compared to $138.8 million for the same period in 2023, reflecting a 67.5% increase[108] Cash Flow and Liquidity - The company reported a net cash provided from operating activities of $108.1 million for the six months ended December 31, 2024, compared to $21.9 million in 2023[17] - Cash and cash equivalents decreased to $162.1 million as of December 31, 2024, down from $199.1 million at June 30, 2024[10] - Total liquidity as of December 31, 2024, was $511.0 million, including cash and cash equivalents of $162.1 million[200] - Adjusted free cash flow for the six months ended December 31, 2024, was $51.9 million, a turnaround from negative adjusted free cash flow of $25.4 million in the same period of 2023[132] Assets and Equity - Total assets increased to $3,326.7 million as of December 31, 2024, compared to $3,291.7 million at June 30, 2024[10] - Total stockholders' equity rose to $1,716.9 million as of December 31, 2024, up from $1,628.8 million at June 30, 2024[10] - The total equity at December 31, 2024, was $1,716.9 million, an increase from $1,473.8 million at December 31, 2023[24] Segment Performance - Revenue from the Aerospace and Defense sector for the three months ended December 31, 2024, was $413.4 million, up from $321.0 million in 2023, marking a 28.8% increase[46] - The Specialty Alloys Operations segment reported net sales of $601.5 million for the three months ended December 31, 2024, up from $549.4 million in 2023, a growth of 9.5%[108] - The Performance Engineered Products segment had net sales of $95.0 million for the three months ended December 31, 2024, slightly down from $95.7 million in 2023[108] Expenses and Liabilities - Selling, general and administrative expenses were $58.6 million, or 8.7% of net sales, compared to 8.5% in the same period of 2023[146] - Interest expense decreased to $12.2 million from $13.0 million in the same period of 2023, attributed to no short-term borrowings[150] - The company incurred restructuring and asset impairment charges of $3.6 million during the six months ended December 31, 2024[12] - Environmental remediation liabilities recorded were $17.4 million as of December 31, 2024, slightly up from $17.3 million as of June 30, 2024[69] Shareholder Returns - Cash dividends declared were $20.2 million for the six months ended December 31, 2024, at a rate of $0.40 per share[24] - The company repurchased 275,000 shares of common stock for a total of $40.3 million during the six months ended December 31, 2024[132] - The Company authorized a share repurchase program of up to $400.0 million for its outstanding common stock, with $359.7 million remaining available for future purchases as of December 31, 2024[72] Market and Sales Insights - The United States accounted for $419.2 million of total net sales in the three months ended December 31, 2024, compared to $374.0 million in the same period of 2023, a growth of 12.1%[46] - Approximately 39% of net sales are under firm price sales arrangements, which involve risks related to profit margin fluctuations due to raw material price volatility[124] - Excluding surcharge revenue, sales increased 13% to $548.0 million, driven by a 35% increase in the Aerospace and Defense end-use market[136] Debt and Financing - Long-term debt outstanding as of December 31, 2024, was $694.8 million, slightly up from $694.2 million as of June 30, 2024[65] - The company entered into a Second Amended and Restated Credit Agreement with Bank of America, extending the maturity to April 12, 2028[197] - The Credit Facility has a commitment of $350.0 million, with the ability to request an increase based on consolidated EBITDA[198] Tax and Compliance - Income tax expense for the three months ended December 31, 2024, was $21.0 million, or 20.0% of pre-tax income, compared to $12.5 million, or 22.6% of pre-tax income for the same period in 2023[98] - The company is subject to financial covenants requiring a minimum interest coverage ratio of 3.00 to 1.00 and a maximum consolidated net leverage ratio of 4.00 to 1.00, and was in compliance as of December 31, 2024[202]