Exhibit 99.1
FOR IMMEDIATE RELEASE | Contact: | |
May 3, 2006 | Richard E. Leone | |
Manager — Investor Relations | ||
rleone@rtiintl.com | ||
330-544-7622 |
RTI ANNOUNCES FIRST QUARTER RESULTS
Niles, Ohio — RTI International Metals, Inc., (NYSE: RTI) released results today for the first quarter of 2006.
The Company reported record quarterly sales of $115.1 million in the first quarter of 2006, earning net income of $10.7 million, or $0.48 per share. Results for the first quarter of 2005 were net income of $8.4 million, or $0.38 per share, on sales of $72.6 million.
Net income in the first quarter of 2006 was reduced by $1.2 million, or $0.05 per share, in accordance with new accounting regulations (SFAS123R) regarding stock-based compensation.
RTI’s Titanium Group posted operating profit in the first quarter of $11.8 million on sales of $79.9 million, including intergroup sales of $31.1 million. During the first quarter of 2005, the Group earned $9.5 million on sales of $45.0 million, including intergroup sales of $20.9 million. Mill product shipments for the first quarter were 3.6 million pounds at an average realized price of $19.22 per pound, as compared to 2.3 million pounds at $14.30 per pound in the first quarter of 2005.
The Company’s Fabrication & Distribution Group earned $5.3 million in operating income in the first quarter on sales of $66.3 million. The Group had operating profit of $3.5 million during the same period in 2005 on net sales of $48.5 million.
“Operating performance was strong in the first quarter. Double digit increases in mill product volume and prices compared to last quarter resulted in record sales and a seventeen percent increase in operating income, despite increased expenses related to new stock-based compensation accounting and Sarbanes-Oxley activities,” said Timothy G. Rupert, President and CEO, commenting on the quarter. “While we expect that the operating numbers will continue to grow, SG&A expenses should decline as the year progresses.”
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The statements in this release relating to matters that are not historical facts are forward-looking statements that may involve risks and uncertainties. These include, but are not limited to, the impact of global events on the commercial aerospace industry, military spending, global economic conditions, the competitive nature of the markets for specialty metals, the ability of the Company to obtain an adequate supply of raw materials, the design and effectiveness of the Company’s internal control over financial reporting, and other risks and uncertainties included in the Company’s filings with the Securities and Exchange Commission. Actual results can differ materially from those forecasted or expected. The information contained in this release is qualified by and should be read in conjunction with the statements and notes filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, as may be amended from time to time.
RTI International Metals®, headquartered in Niles, Ohio, is one of the world’s largest producers of titanium. Through its various subsidiaries, RTI manufactures and distributes titanium and specialty metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial, defense, energy, chemical and consumer applications for customers around the world. To learn more about RTI International Metals, Inc., visit our website atwww.rtiintl.com.
NOTE: RTI International Metals, Inc. has scheduled a conference call for Thursday, May 4, 2006, at 10:30 a.m., Eastern Time, to discuss this press release. To participate in the call, please dial toll free (USA/Canada) 800-938-0653 or (International) 973-935-2408 a few minutes prior to the start time and specify the RTI International Metals Conference Call. Replay of the call will be available until 11:59 p.m., Eastern Time, on Thursday, May 11, 2006, by dialing (USA/Canada) 877-519-4471 or (International) 973-341-3080 and Digital Pin Code 7304882.
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
(In thousands, except share and per share amounts)
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Net sales | $ | 115,079 | $ | 72,612 | ||||
Cost and expenses: | ||||||||
Cost of sales | 80,852 | 48,215 | ||||||
Selling, general and administrative expenses | 16,635 | 11,039 | ||||||
Research, technical and product development expenses | 458 | 366 | ||||||
Operating income | 17,134 | 12,992 | ||||||
Other income | 21 | 130 | ||||||
Interest income, net | 389 | 155 | ||||||
Income from continuing operations before income taxes | 17,544 | 13,277 | ||||||
Provision for income taxes | 6,802 | 4,894 | ||||||
Income from continuing operations | 10,742 | 8,383 | ||||||
Income from discontinued operations, net of tax provision | — | 16 | ||||||
provision | ||||||||
Net income | $ | 10,742 | $ | 8,399 | ||||
Basic earnings per share: | ||||||||
Continuing operations | $ | 0.48 | $ | 0.38 | ||||
Discontinued operations | $ | — | $ | — | ||||
Net income | $ | 0.48 | $ | 0.38 | ||||
Diluted earnings per share: | ||||||||
Continuing operations | $ | 0.47 | $ | 0.37 | ||||
Discontinued operations | $ | — | $ | — | ||||
Net income | $ | 0.47 | $ | 0.37 | ||||
Weighted-average shares outstanding: | ||||||||
Basic | 22,554,073 | 21,989,659 | ||||||
Diluted | 22,949,040 | 22,455,617 | ||||||
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
CONSOLIDATED BALANCE SHEETS
(Unaudited)
(In thousands, except share and per share amounts)
March 31, | December 31, | |||||||
2006 | 2005 | |||||||
ASSETS | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | $ | 58,532 | $ | 53,353 | ||||
Investments | — | 2,410 | ||||||
Receivables, less allowance for doubtful accounts of $1,954 and $1,604 | 63,961 | 54,212 | ||||||
Inventories, net | 227,870 | 223,394 | ||||||
Deferred income taxes | 3,920 | 3,778 | ||||||
Other current assets | 5,024 | 7,407 | ||||||
Total current assets | 359,307 | 344,554 | ||||||
Property, plant and equipment, net | 78,508 | 80,056 | ||||||
Goodwill | 48,595 | 48,646 | ||||||
Other intangible assets, net | 16,203 | 16,581 | ||||||
Deferred income taxes | 5,450 | 5,451 | ||||||
Intangible pension asset | 4,076 | 4,076 | ||||||
Other noncurrent assets | 1,880 | 2,387 | ||||||
Total assets | $ | 514,019 | $ | 501,751 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Current liabilities: | ||||||||
Accounts payable | $ | 23,952 | $ | 25,620 | ||||
Accrued wages and other employee costs | 11,896 | 10,953 | ||||||
Billings in excess of costs and estimated earnings | 11,288 | 13,352 | ||||||
Income taxes payable | 4,976 | 3,367 | ||||||
Deferred income taxes | 384 | 3 | ||||||
Other accrued liabilities | 9,576 | 8,589 | ||||||
Total current liabilities | 62,072 | 61,884 | ||||||
Accrued postretirement benefit cost | 21,247 | 21,070 | ||||||
Accrued pension cost | 23,790 | 25,595 | ||||||
Deferred income taxes | 6,433 | 6,516 | ||||||
Other noncurrent liabilities | 6,432 | 7,034 | ||||||
Total liabilities | 119,974 | 122,099 | ||||||
Shareholders’ equity: | ||||||||
Common stock, $0.01 par value; 50,000,000 shares authorized; 23,244,345 and 23,130,544 shares issued; and 22,765,714 and 22,686,472 shares outstanding | 232 | 231 | ||||||
Additional paid-in capital | 280,440 | 278,690 | ||||||
Deferred compensation | — | (3,078 | ) | |||||
Treasury stock, at cost; 478,631 and 444,072 shares | (5,302 | ) | (4,389 | ) | ||||
Accumulated other comprehensive loss | (25,377 | ) | (25,112 | ) | ||||
Retained earnings | 144,052 | 133,310 | ||||||
Total shareholders’ equity | 394,045 | 379,652 | ||||||
Total liabilities and shareholders’ equity | $ | 514,019 | $ | 501,751 | ||||
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
OPERATING ACTIVITIES: | ||||||||
Net income | $ | 10,742 | $ | 8,399 | ||||
Net income from discontinued operations | — | (16 | ) | |||||
Net income from continuing operations | 10,742 | 8,383 | ||||||
Adjustment for non-cash items included in net income: | ||||||||
Depreciation and amortization | 3,575 | 3,130 | ||||||
Deferred income taxes | — | (315 | ) | |||||
Stock-based compensation and other | 2,284 | 450 | ||||||
Tax benefits from stock-based compensation activity | (1,361 | ) | 1,217 | |||||
Other | 173 | (627 | ) | |||||
Changes in assets and liabilities: | ||||||||
Receivables | (9,674 | ) | (6,513 | ) | ||||
Inventories | (4,513 | ) | (26,864 | ) | ||||
Accounts payable | (1,817 | ) | 12,552 | |||||
Income taxes payable | 3,239 | 4,305 | ||||||
Billings in excess of costs and estimated earnings | (2,058 | ) | 225 | |||||
Other current liabilities | 1,819 | 1,023 | ||||||
Other assets and liabilities | 706 | 485 | ||||||
Cash provided (used) by continuing operating activities | 3,115 | (2,549 | ) | |||||
Cash provided by discontinued operating activities | — | 81 | ||||||
Cash provided (used) by operating activities | 3,115 | (2,468 | ) | |||||
INVESTING ACTIVITIES: | ||||||||
Acquisitions, net of cash acquired, and other investing | — | (290 | ) | |||||
Proceeds from sale of investments | 2,410 | — | ||||||
Capital expenditures | (1,841 | ) | (1,784 | ) | ||||
Cash provided (used) by investing activities | 569 | (2,074 | ) | |||||
FINANCING ACTIVITIES: | ||||||||
Proceeds from exercise of employee stock options | 1,010 | 5,334 | ||||||
Tax benefits from stock-based compensation activity | 1,361 | — | ||||||
Purchase of common stock held in treasury | (913 | ) | (483 | ) | ||||
Cash provided by financing activities | 1,458 | 4,851 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 37 | 3 | ||||||
Increase in cash and cash equivalents | 5,179 | 312 | ||||||
Cash and cash equivalents at beginning of period | 53,353 | 62,701 | ||||||
Cash and cash equivalents at end of period | $ | 58,532 | $ | 63,013 | ||||
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
SELECTED OPERATING SEGMENT INFORMATION
(Unaudited)
(In thousands)
SELECTED OPERATING SEGMENT INFORMATION
(Unaudited)
(In thousands)
Three Months Ended | ||||||||
March 31, | ||||||||
2006 | 2005 | |||||||
Net sales: | ||||||||
Titanium Group | $ | 48,750 | $ | 24,100 | ||||
Intersegment sales* | 31,141 | 20,891 | ||||||
Total Titanium Group net sales | 79,891 | 44,991 | ||||||
Fabrication & Distribution Group | 66,329 | 48,512 | ||||||
Intersegment sales* | 1,786 | 965 | ||||||
Total Fabrication & Distribution Group net sales | 68,115 | 49,477 | ||||||
Eliminations | 32,927 | 21,856 | ||||||
Total consolidated net sales | $ | 115,079 | $ | 72,612 | ||||
Operating income: | ||||||||
Titanium Group before corporate allocations | $ | 14,987 | $ | 10,991 | ||||
Corporate allocations | (3,167 | ) | (1,459 | ) | ||||
Total Titanium Group operating income | 11,820 | 9,532 | ||||||
Fabrication & Distribution Group before corporate allocations | 10,496 | 6,659 | ||||||
Corporate allocations | (5,182 | ) | (3,199 | ) | ||||
Total Fabrication & Distribution Group operating income | 5,314 | 3,460 | ||||||
Total consolidated operating income | $ | 17,134 | $ | 12,992 | ||||
* | Intersegment sales represent sales from the Titanium Group to the Fabrication & Distribution Group, and vice-versa. All intrasegment sales, which represent sales between business units within a group, have been eliminated prior to presentation. |
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