Login ID:
Password:
Partner Login
Contact Us : 7066511911

Press Release: ATI Announces Fourth Quarter and -5-

23 Jan 2018 12:30 pm
   Products total       191,305       199,544       187,872       769,933       678,599 
 
 
Average Selling 
 Prices: 
 
  Flat Rolled 
   Products (per 
   lb.) 
    High value*        $   2.94      $   2.69      $   2.54      $   2.81      $   2.59 
    Standard           $   1.23      $   1.13      $   1.11      $   1.21      $   1.06 
  Flat Rolled 
   Products combined 
   average             $   2.04      $   1.78      $   1.68      $   1.88      $   1.72 
 

* High value products exclude GOES for the quarter and twelve months ended December 31, 2016.
 
 
Allegheny Technologies Incorporated and Subsidiaries 
Computation of Basic and Diluted Earnings Per Share Attributable to ATI 
(Unaudited, in millions, except per share amounts) 
 
                              Three Months Ended            Fiscal Year Ended 
                      ----------------------------------  ---------------------- 
                      December    September    December    December    December 
                         31          30           31          31          31 
                        2017        2017         2016        2017        2016 
                      ---------  -----------  ----------  ----------  ---------- 
 
Numerator for Basic 
 net income (loss) 
 per common share 
 - 
 Net income (loss) 
  attributable to 
  ATI                 $     1.7   $  (121.2)   $     9.9   $  (91.9)  $(640.9) 
Effect of dilutive 
 securities: 
 4.75% Convertible 
 Senior Notes due 
 2022                         -           -            -          -         - 
                       --------      ------       ------      -----    ------ 
Numerator for 
 Diluted net income 
 (loss) per common 
 share - 
 Net income (loss) 
  attributable to 
  ATI after assumed 
  conversions         $     1.7   $  (121.2)   $     9.9   $  (91.9)  $(640.9) 
                       ========      ======       ======      =====    ====== 
 
Denominator for 
 Basic net income 
 (loss) per common 
 share - 
 Weighted average 
  shares 
  outstanding             117.5       107.7        107.3      110.1     107.3 
Effect of dilutive 
 securities: 
 Share-based 
  compensation              1.1           -          1.4          -         - 
 4.75% Convertible 
 Senior Notes due 
 2022                         -           -            -          -         - 
                       --------      ------       ------      -----    ------ 
Denominator for 
 Diluted net income 
 (loss) per common 
 share - 
 Adjusted weighted 
  average shares 
  assuming 
  conversions             118.6       107.7        108.7      110.1     107.3 
                       ========      ======       ======      =====    ====== 
 
Basic net income 
 (loss) 
 attributable to 
 ATI per common 
 share                $    0.01   $   (1.12)   $    0.09   $  (0.83)  $ (5.97) 
                       ========      ======       ======      =====    ====== 
 
Diluted net income 
 (loss) 
 attributable to 
 ATI per common 
 share                $    0.01   $   (1.12)   $    0.09   $  (0.83)  $ (5.97) 
                       ========      ======       ======      =====    ====== 
 
 
 
 
Allegheny Technologies Incorporated and Subsidiaries 
Other Financial Information 
Managed Working Capital 
(Unaudited, dollars in millions) 
 
                                         December 31      December 31 
                                            2017             2016 
                                       ---------------  --------------- 
 
Accounts receivable                     $    545.3       $    452.1 
Inventory                                  1,176.1          1,037.0 
Accounts payable                            (420.1)          (294.3) 
                                           -------          ------- 
Subtotal                                   1,301.3          1,194.8 
 
Allowance for doubtful accounts                5.9              7.3 
LIFO reserve                                 (43.1)           (97.3) 
Inventory reserves                           121.5            169.0 
                                           -------          ------- 
Managed working capital                 $  1,385.6       $  1,273.8 
                                           =======          ======= 
 
Annualized prior 3 months 
  sales                                 $  3,639.5       $  3,184.2 
                                           =======          ======= 
 
Managed working capital as a 
 % of annualized sales                        38.1%            40.0% 
 
December 31, 2017 change in managed 
  working capital                       $    111.8 
 

As part of managing the liquidity in our business, we focus on controlling managed working capital, which is defined as gross accounts receivable and gross inventories, less accounts payable. In measuring performance in controlling this managed working capital, we exclude the effects of LIFO and other inventory valuation reserves and reserves for uncollectible accounts receivable which, due to their nature, are managed separately.
 
 
Allegheny Technologies Incorporated and Subsidiaries 
Other Financial Information 
Debt to Capital 
(Unaudited, dollars in millions) 
 
                                      December 31      December 31 
                                         2017             2016 
                                    ---------------  --------------- 
 
Total debt (a)                       $  1,553.8       $  1,894.1 
Less: Cash                               (141.6)          (229.6) 
                                        -------          ------- 
Net debt                             $  1,412.2       $  1,664.5 
 
Net debt                             $  1,412.2       $  1,664.5 
Total ATI stockholders' equity          1,739.4          1,355.2 
                                        -------          ------- 
Net ATI capital                      $  3,151.6       $  3,019.7 
 
Net debt to ATI capital                    44.8%            55.1% 
                                        =======          ======= 
 
Total debt (a)                       $  1,553.8       $  1,894.1 
Total ATI stockholders' equity          1,739.4          1,355.2 
                                        -------          ------- 
Total ATI capital                    $  3,293.2       $  3,249.3 
 
Total debt to total ATI capital            47.2%            58.3% 
                                        =======          ======= 
 

(a) Excludes debt issuance costs.

In managing the overall capital structure of the Company, some of the measures that we focus on are net debt to net capitalization, which is the percentage of debt, net of cash that may be available to reduce borrowings, to the total invested and borrowed capital of ATI (excluding noncontrolling interest), and total debt to total ATI capitalization, which excludes cash balances.

Allegheny Technologies Incorporated and Subsidiaries

Non-GAAP Financial Measures

(Unaudited, dollars in millions, except per share amounts)

The Company reports its financial results in accordance with accounting principles generally accepted in the United States of America ("GAAP"). However, management believes that certain non-GAAP financial measures, used in managing the business, may provide users of this financial information with additional meaningful comparisons between current results and results in prior periods. Non-GAAP financial measures should be viewed in addition to, and not as an alternative for, the Company's reported results prepared in accordance with GAAP. The following table provides the calculation of the non-GAAP financial measures discussed in the Company's press release dated January 23, 2018:
 
                          Three Months Ended            Fiscal Year Ended 
                  -----------------------------------  ------------------- 
                   December    September    December 
                      31          30           31          December 31 
                     2017        2017         2016      2017       2016 
                  ----------  -----------  ----------  -------  ---------- 
 
Income (loss) 
 attributable to 
 ATI               $    1.7    $  (121.2)   $    9.9   $(91.9)  $(640.9) 
Adjust for 
 special items: 
Debt 
 extinguishment 
 charge, net of 
 tax (a)           $   37.0    $       -    $      -     37.0         - 
Impairment of 
 goodwill, net 
 of tax (b)               -        113.6           -    113.6         - 
Restructuring 
 and other 
 charges, net of 
 tax (c)                  -            -        18.6        -     354.8 
Rowley excess 
 operating 
 costs, net of 
 tax (d)                  -            -           -        -      19.3 
Work stoppage 
 and 
 return-to-work 
 costs (e)                -            -           -        -      28.1 
Income tax items 
 including 
 valuation 
 allowances (f)        (4.1)           -       (32.4)    (4.1)    141.3 
                      -----       ------       -----    -----    ------ 
Income (loss) 
 attributable to 
 ATI excluding 
 special items     $   34.6    $    (7.6)   $   (3.9)  $ 54.6   $ (97.4) 
                      =====       ======       =====    =====    ====== 
 
                          Per Diluted Share *          Per Diluted Share * 
                  -----------------------------------  ------------------- 
Income (loss) 
 attributable to 
 ATI               $   0.01    $   (1.12)   $   0.09   $(0.83)  $ (5.97) 
Adjust for 
 special items: 
Debt 
 extinguishment 
 charge, net of 
 tax (a)           $   0.29    $       -    $      -     0.29         - 
Impairment of 
 goodwill, net 
 of tax (b)               -         1.05           -     1.05         - 
Restructuring 
 and other 
 charges, net of 
 tax (c)                  -            -        0.17        -      3.30 
Rowley excess 
 operating 
 costs, net of 
 tax (d)                  -            -           -        -      0.18 
Work stoppage 
 and 
 return-to-work 
 costs (e)                -            -           -        -      0.27 
Income tax items 
 including 
 valuation 

(MORE TO FOLLOW) Dow Jones Newswires

January 23, 2018 07:30 ET (12:30 GMT)
Disclaimer
Top 5 Special Reports
USD/INR (Dec. 19) Bearish Short-term Trend: Retestin...
Weekly: ICE Raw Sugar Touches 13 Month High On Short C...
Weekly: ICE Cotton Ends up; Awaits US-China Trade Deal...
Weekly: Pulses Slips On Listless Demand In Dals, Liquid...
USD/INR (Dec. 19) Bearish Short-term Trend: Retestin...