Exhibit 99.1
March 16, 2006
RTI ANNOUNCES 2005 RESULTS
Niles, Ohio — RTI International Metals, Inc. (NYSE: RTI) released results today for the fourth quarter and year of 2005.
The Company reported net income for the year of $38.9 million, or $1.75 per share, on sales of $346.9 million. Net income from continuing operations in 2005 was $37.3 million, or $1.68 per share. Results for the year 2004 were a net loss of $3.0 million, or $0.14 per share, on sales of $209.6 million. Net loss from continuing operations in 2004 was $2.3 million, or $0.11 share.
The fourth quarter of 2005 generated net income of $11.3 million, or $0.50 per share, on sales of $99.9 million. Net income from continuing operations in the fourth quarter was $9.8 million, or $0.43 per share. The same period in 2004 resulted in a net loss of $4.0 million, or $0.18 per share, on sales of $60.2 million. Net loss from continuing operations in the fourth quarter of 2004 was $3.1 million, or $0.14 per share.
During the fourth quarter of 2005, RTI reached agreement with the U.S. Department of Energy (“DOE”) on all open matters relating to the completion of the remediation of the Company’s former extrusion facility in Ashtabula, Ohio. RTI had been performing the cleanup under a contract from the DOE which was terminated in December, 2003. Results for the fourth quarter and year 2005 include a $1.5 million net income gain in connection with the settlement and discontinuance of RTI’s remediation operations.
Mill product shipments for the fourth quarter were 3.1 million pounds at an average realized price of $16.92 per pound versus 1.7 million pounds in the year earlier period at an average realized price of $13.76 per pound. As a result, the Titanium Group posted operating profit in the fourth quarter of 2005 of $11.2 million on sales of $96.9 million, including intercompany sales of $59.7 million. Fourth quarter 2004 results were a loss of $3.9 million on sales of $42.9 million, including intercompany sales of $28.9 million.
Full year 2005 mill product shipments rose to 11.1 million pounds as compared to 5.4 million in 2004. Average realized prices in 2005 were $15.37 versus $14.59 in 2004.
The combination of increased volume and price, coupled with ongoing manufacturing cost reductions, resulted in a $40.8 million operating profit for the Titanium Group in 2005. Sales for the Group were $334.8 million, including inter-company sales of $204.6 million. In 2004, the Group had an operating loss of $11.0 million on sales of $147.7 million, including intercompany sales of $99.1 million.
The Company’s Fabrication & Distribution Group posted a $3.4 million operating profit in the fourth quarter of 2005 on sales of $62.6 million. The Group had an operating loss of $2.6 million during the same period in 2004 on net sales of $46.2 million.
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For the full year 2005, Fabrication & Distribution generated an operating profit of $15.3 million on net sales of $216.7 million. The Group had an operating loss of $3.5 million in 2004 on net sales of $161.0 million.
Commenting on the Company’s results, Timothy G. Rupert, President and CEO, said, “RTI achieved substantial revenue and earnings growth in 2005. Sales, which grew 66%, were strong in all of our major markets — commercial aerospace, defense and industrial. Demand from commercial aerospace, particularly for titanium, is as strong as it has ever been and continues to grow, as requirements for new aircraft designs are defined and worldwide air travel increases. At year end there were 3986 large commercial jets on order, representing over five years production at Airbus and Boeing. As a result, we believe demand for our products will continue to grow and expect RTI’s financial performance to improve further this year and beyond.
“Our order backlog at the end of the year stood at $450 million. We expect RTI’s 2006 sales to grow 30-40% over 2005. Operating income is expected to increase by 60-90%.”
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 at www.rtiintl.com.
NOTE: RTI International Metals, Inc. has scheduled a conference call for Friday, March 17 at 11:00 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 Friday, March 24, 2006, by dialing (USA/Canada) 877-519-4471 or (International) 973-341-3080 and Digital Pin Code 7155340.
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March 16, 2006
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except for per share amounts)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except for per share amounts)
(Unaudited)
QUARTER ENDED | YEAR ENDED | |||||||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Sales | $ | 99,850 | $ | 60,210 | $ | 346,906 | $ | 209,643 | ||||||||
Cost of sales | 70,065 | 52,987 | 240,314 | 184,592 | ||||||||||||
Gross profit | 29,785 | 7,223 | 106,592 | 25,051 | ||||||||||||
Selling, general and administrative expenses | 14,713 | 13,410 | 48,816 | 38,974 | ||||||||||||
Research, technical and product development expenses | 467 | 316 | 1,642 | 1,181 | ||||||||||||
Other operating (income) — net | — | (21 | ) | — | (538 | ) | ||||||||||
Operating income (loss) | 14,605 | (6,482 | ) | 56,134 | (14,566 | ) | ||||||||||
Other (expense) income — net | (130 | ) | 56 | 369 | 9,432 | |||||||||||
Interest income | 250 | 46 | 909 | 138 | ||||||||||||
Income (loss) before income taxes | 14,725 | (6,380 | ) | 57,412 | (4,996 | ) | ||||||||||
Provision (benefit) for income taxes | 4,935 | (3,259 | ) | 20,068 | (2,677 | ) | ||||||||||
Income (loss) from continuing operations | 9,790 | (3,121 | ) | 37,344 | (2,319 | ) | ||||||||||
Income (loss) from discontinued operations, net of tax | 1,504 | (877 | ) | 1,591 | (638 | ) | ||||||||||
Net income (loss) | $ | 11,294 | $ | (3,998 | ) | $ | 38,935 | $ | (2,957 | ) | ||||||
Basis earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.43 | $ | (0.14 | ) | $ | 1.68 | $ | (0.11 | ) | ||||||
Discontinued operations | $ | 0.07 | $ | (0.04 | ) | $ | 0.07 | $ | (0.03 | ) | ||||||
Net income (loss) | $ | 0.50 | $ | (0.18 | ) | $ | 1.75 | $ | (0.14 | ) | ||||||
Diluted earnings (loss) per common share | ||||||||||||||||
Continuing operations | $ | 0.43 | $ | (0.14 | ) | $ | 1.66 | $ | (0.11 | ) | ||||||
Discontinued operations | $ | 0.07 | $ | (0.04 | ) | $ | 0.07 | $ | (0.03 | ) | ||||||
Net income (loss) | $ | 0.50 | $ | (0.18 | ) | $ | 1.73 | $ | (0.14 | ) | ||||||
Weighted average shares | ||||||||||||||||
outstanding (in thousands): | ||||||||||||||||
Basic | 22,506 | 21,706 | 22,187 | 21,310 | ||||||||||||
Diluted | 22,808 | 21,706 | 22,526 | 21,310 |
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March 16, 2006
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
DECEMBER 31, | DECEMBER 31, | |||||||
2005 | 2004 | |||||||
ASSETS: | ||||||||
Current assets | ||||||||
Cash and cash equivalents | $ | 53,353 | $ | 62,701 | ||||
Investments | 2,410 | — | ||||||
Accounts receivable | 54,212 | 44,490 | ||||||
Inventories | 223,394 | 133,512 | ||||||
Current deferred income tax assets | 3,778 | 1,145 | ||||||
Other current assets | 7,407 | 6,918 | ||||||
Total current assets | 344,554 | 248,766 | ||||||
Property, plant and equipment, net | 80,056 | 82,593 | ||||||
Goodwill | 48,646 | 46,618 | ||||||
Other intangible assets, net | 16,581 | 16,040 | ||||||
Noncurrent deferred income tax assets | 5,451 | 8,930 | ||||||
Other noncurrent assets | 6,463 | 6,464 | ||||||
Total assets | $ | 501,751 | $ | 409,411 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY: | ||||||||
Current liabilities | ||||||||
Accounts payable | $ | 25,620 | $ | 14,253 | ||||
Accrued wages and other employee costs | 10,953 | 4,863 | ||||||
Billings in excess of costs and estimated earnings | 13,352 | 4,708 | ||||||
Accrued liabilities | 11,959 | 6,498 | ||||||
Total current liabilities | 61,884 | 30,322 | ||||||
Long-term debt | — | — | ||||||
Accrued postretirement benefit cost | 21,070 | 20,811 | ||||||
Accrued pension cost | 25,595 | 21,090 | ||||||
Deferred income taxes | 6,516 | 5,918 | ||||||
Other noncurrent liabilities | 7,034 | 7,312 | ||||||
Total liabilities | 122,099 | 85,453 | ||||||
Total shareholders’ equity | 379,652 | 323,958 | ||||||
Total liabilities and shareholders’ equity | $ | 501,751 | $ | 409,411 | ||||
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
FOR THE YEAR ENDED | ||||||||
DECEMBER 31, | DECEMBER 31, | |||||||
2005 | 2004 | |||||||
Cash (used) provided by operating activities | ||||||||
(including depreciation and amortization of $13,263 and $12,448 | ||||||||
respectively) | $ | (10,709 | ) | $ | 20,682 | |||
Cash used in investing activities | (12,150 | ) | (29,401 | ) | ||||
Cash provided by financing activities | 13,328 | 3,450 | ||||||
Effect of exchange rate changes on cash and cash equivalents | 183 | — | ||||||
Decrease in cash and cash equivalents | $ | (9,348 | ) | $ | (5,269 | ) | ||
Cash and cash equivalents at beginning of period | 62,701 | 67,970 | ||||||
Cash and cash equivalents at end of period | $ | 53,353 | $ | 62,701 | ||||
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March 16, 2006
RTI INTERNATIONAL METALS, INC.
SELECT OPERATING SEGMENT INFORMATION
(Dollars in thousands)
(Unaudited)
SELECT OPERATING SEGMENT INFORMATION
(Dollars in thousands)
(Unaudited)
QUARTER ENDED | YEAR ENDED | |||||||||||||||
DECEMBER 31, | DECEMBER 31, | |||||||||||||||
2005 | 2004 | 2005 | 2004 | |||||||||||||
Total sales | ||||||||||||||||
Titanium Group | $ | 96,922 | $ | 42,886 | $ | 334,765 | $ | 147,719 | ||||||||
Fabrication and Distribution Group | 79,780 | 55,406 | 274,095 | 191,763 | ||||||||||||
$ | 176,702 | $ | 98,292 | $ | 608,860 | $ | 339,482 | |||||||||
Inter and intra segment sales | ||||||||||||||||
Titanium Group | $ | 59,720 | $ | 28,930 | 204,585 | 99,050 | ||||||||||
Fabrication and Distribution Group | 17,132 | 9,152 | 57,369 | 30,789 | ||||||||||||
$ | 76,852 | $ | 38,082 | $ | 261,954 | $ | 129,839 | |||||||||
Total sales to external customers | ||||||||||||||||
Titanium Group | $ | 37,202 | $ | 13,956 | $ | 130,180 | $ | 48,669 | ||||||||
Fabrication and Distribution Group | 62,648 | 46,254 | 216,726 | 160,974 | ||||||||||||
$ | 99,850 | $ | 60,210 | $ | 346,906 | $ | 209,643 | |||||||||
Operating income/(loss) | ||||||||||||||||
Titanium Group | $ | 11,158 | ($3,837 | ) | $ | 40,834 | $ | (11,044 | ) | |||||||
Fabrication and Distribution Group | 3,447 | (2,645 | ) | 15,300 | (3,522 | ) | ||||||||||
$ | 14,605 | $ | (6,482 | ) | $ | 56,134 | $ | (14,566 | ) | |||||||
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