Exhibit 99.1
FOR IMMEDIATE RELEASE | Contact: | |
| April 30, 2007 | 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 2007.
The Company reported sales of $145.6 million in the first quarter of 2007 earning net income of $22.1 million, or $0.95 per diluted share. Results for the first quarter of 2006 were net income of $10.7 million, or $0.47 per diluted share, on sales of $115.1 million.
RTI’s Titanium Group posted operating profit in the first quarter of $21.3 million on sales of $103.2 million, including intersegment sales of $50.0 million. During the first quarter of 2006, the Group earned $11.8 million on sales of $79.9 million, including intersegment sales of $31.1 million. Mill product shipments for the first quarter were 3.7 million pounds at an average realized price of $25.65 per pound, as compared to 3.6 million pounds at $19.22 per pound in the first quarter of 2006.
The Company’s Fabrication & Distribution Group earned $11.6 million in operating income in the first quarter on sales of $92.4 million. The Group had operating income of $5.3 million during the same period in 2006 on net sales of $66.3 million.
The Company incurred $3.4 million of stock-based compensation expense for the quarter compared to $2.3 million for the first quarter 2006.
“With a good start and record sales in the first quarter, we expect 2007 to be another record year,” commented RTI’s new CEO Dawne S. Hickton. “The demand for titanium remains strong and we will continue to benefit from this demand as we bring our capacity expansions on-line later in the year and into 2008.”
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 successful completion of our capital expansion projects, 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 a leading producer of titanium mill products and fabricated metal components for the global market. 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 Tuesday, May 1 at 10:00 a.m., Eastern Time, to discuss this press release. To participate in the call, please dial toll free (USA/Canada) 877-860-4996 or (International) 973-582-2854 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 Tuesday, May 8, 2007, by dialing (USA/Canada) 877-519-4471 or (International) 973-341-3080 and Digital Pin Code 8655563.
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share amounts)
Condensed Consolidated Statements of Operations
(Unaudited)
(In thousands, except share and per share amounts)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2007 | 2006 | |||||||
| Net sales | $ | 145,557 | $ | 115,079 | ||||
| Cost and expenses: | ||||||||
| Cost of sales | 94,012 | 80,852 | ||||||
| Selling, general, and administrative expenses | 18,198 | 16,635 | ||||||
| Research, technical, and product development expenses | 461 | 458 | ||||||
| Operating income | 32,886 | 17,134 | ||||||
| Other (expense) income | (541 | ) | 21 | |||||
| Interest income | 1,136 | 509 | ||||||
| Interest expense | (300 | ) | (120 | ) | ||||
| Income before income taxes | 33,181 | 17,544 | ||||||
| Provision for income taxes | 11,108 | 6,802 | ||||||
| Net income | $ | 22,073 | $ | 10,742 | ||||
| Earnings per share: | ||||||||
| Basic | $ | 0.97 | $ | 0.48 | ||||
| Diluted | $ | 0.95 | $ | 0.47 | ||||
| Weighted-average shares outstanding: | ||||||||
| Basic | 22,869,493 | 22,554,073 | ||||||
| Diluted | 23,153,573 | 22,949,040 | ||||||
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share amounts)
Condensed Consolidated Balance Sheets
(Unaudited)
(In thousands, except share and per share amounts)
| March 31, | December 31, | |||||||
| ASSETS | 2007 | 2006 | ||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 44,281 | $ | 40,026 | ||||
| Investments | 85,365 | 85,035 | ||||||
| Receivables, less allowance for doubtful accounts of $1,101 and $1,548 | 96,252 | 92,517 | ||||||
| Inventories, net | 262,456 | 241,638 | ||||||
| Deferred income taxes | 318 | 2,120 | ||||||
| Other current assets | 6,893 | 5,818 | ||||||
| Total current assets | 495,565 | 467,154 | ||||||
| Property, plant, and equipment, net | 113,960 | 102,470 | ||||||
| Goodwill | 48,698 | 48,622 | ||||||
| Other intangible assets, net | 15,460 | 15,581 | ||||||
| Deferred income taxes | 9,445 | 9,076 | ||||||
| Other noncurrent assets | 1,140 | 1,010 | ||||||
| Total assets | $ | 684,268 | $ | 643,913 | ||||
| LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 46,019 | $ | 34,055 | ||||
| Accrued wages and other employee costs | 16,122 | 17,475 | ||||||
| Billings in excess of costs and estimated earnings | 18,252 | 21,147 | ||||||
| Income taxes payable | 10,682 | 5,253 | ||||||
| Current deferred income taxes | 5,694 | 10,255 | ||||||
| Current portion long-term debt | 692 | 459 | ||||||
| Current liability for post-retirement benefits | 2,783 | 2,783 | ||||||
| Current liability for pension benefits | 580 | 580 | ||||||
| Other accrued liabilities | 12,642 | 9,436 | ||||||
| Total current liabilities | 113,466 | 101,443 | ||||||
| Long-term debt | 14,586 | 13,270 | ||||||
| Liability for post-retirement benefits | 33,018 | 32,445 | ||||||
| Liability for pension benefits | 22,647 | 22,285 | ||||||
| Deferred income taxes | 2,747 | 5,422 | ||||||
| Other noncurrent liabilities | 7,432 | 6,867 | ||||||
| Total liabilities | 193,896 | 181,732 | ||||||
| Shareholders’ equity: | ||||||||
| Common stock, $0.01 par value; 50,000,000 shares authorized; 23,556,689 and 23,440,127 shares issued; 23,063,728 and 22,967,284 shares outstanding | 236 | 234 | ||||||
| Additional paid-in capital | 296,919 | 289,448 | ||||||
| Treasury stock, at cost; 492,961 and 472,843 shares | (6,859 | ) | (5,285 | ) | ||||
| Accumulated other comprehensive loss | (31,007 | ) | (31,226 | ) | ||||
| Retained earnings | 231,083 | 209,010 | ||||||
| Total shareholders’ equity | 490,372 | 462,181 | ||||||
| Total liabilities and shareholders’ equity | $ | 684,268 | $ | 643,913 | ||||
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RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
Condensed Consolidated Statements of Cash Flows
(Unaudited)
(In thousands)
| Three Months Ended | ||||||||
| March 31, | ||||||||
| 2007 | 2006 | |||||||
| Cash provided by operating activities (including depreciation and amortization of $3,605 and $3,575, respectively) | $ | 15,617 | $ | 3,115 | ||||
| Cash (used) provided by investing activities | (15,180 | ) | 569 | |||||
| Cash provided by financing activities | 3,956 | 1,458 | ||||||
| Effect of exchange rate changes on cash and cash equivalents | (138 | ) | 37 | |||||
| Increase in cash and cash equivalents | 4,255 | 5,179 | ||||||
| Cash and cash equivalents at beginning of period | 40,026 | 53,353 | ||||||
| Cash and cash equivalents at end of period | $ | 44,281 | $ | 58,532 | ||||
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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, | ||||||||
| 2007 | 2006 | |||||||
| Net sales: | ||||||||
| Titanium Group | $ | 53,168 | $ | 48,750 | ||||
| Intersegment sales | 49,999 | 31,141 | ||||||
| Total Titanium Group net sales | 103,167 | 79,891 | ||||||
| Fabrication & Distribution Group | 92,389 | 66,329 | ||||||
| Intersegment sales | 2,212 | 1,786 | ||||||
| Total Fabrication & Distribution Group net sales | 94,601 | 68,115 | ||||||
| Eliminations | 52,211 | 32,927 | ||||||
| Total consolidated net sales | $ | 145,557 | $ | 115,079 | ||||
| Operating income: | ||||||||
| Titanium Group before corporate allocations | $ | 22,958 | $ | 14,987 | ||||
| Corporate allocations | (1,657 | ) | (3,167 | ) | ||||
| Total Titanium Group operating income | 21,301 | 11,820 | ||||||
| Fabrication & Distribution Group before corporate allocations | 15,308 | 10,496 | ||||||
| Corporate allocations | (3,723 | ) | (5,182 | ) | ||||
| Total Fabrication & Distribution Group operating income | 11,585 | 5,314 | ||||||
| Total consolidated operating income | $ | 32,886 | $ | 17,134 | ||||
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