Exhibit 99.1
RTI Reports Third Quarter Results
PITTSBURGH--(BUSINESS WIRE)--November 1, 2011--RTI International Metals, Inc., (NYSE: RTI), released results today for the third quarter of 2011.
Third Quarter 2011 Results
- Net sales for the third quarter were $143.7 million
- Third quarter operating income was $7.7 million
- Net income for the third quarter was $2.1 million
- Titanium mill product shipments for the third quarter totaled 4.3 million pounds at an average realized price of $18.99 per pound
For the third quarter of 2011, RTI reported net income of $2.1 million, or $0.07 per diluted share, on net sales of $143.7 million. Operating income for the period was $7.7 million. For the third quarter of 2010, RTI reported a net loss of $16.8 million, or $0.56 per diluted share, on net sales of $102.6 million. The net loss for the third quarter of 2010 included a $13.9 million provision for income taxes. The operating loss for the third quarter of 2010 was $2.2 million.
For the nine months ended September 30, 2011, RTI reported net income of $6.5 million, or $0.22 per diluted share, on net sales of $387.7 million, compared to net income of $4.9 million, or $0.16 per diluted share, on net sales of $317.1 million for the same period a year ago. Operating income for the first nine months of 2011 was $23.2 million. Operating income for the comparable period in 2010 was $11.5 million including a $15.4 million customer payment with no associated cost. Without such customer payment, the operating loss for the first nine months of 2010 would have been $3.9 million.
Titanium Group
For the third quarter of 2011, the Titanium Group posted operating income of $4.9 million on sales of $87.7 million, including intersegment sales of $42.7 million. During the same period in 2010, this Group reported operating income of $1.3 million on sales of $52.3 million, including intersegment sales of $20.0 million. The improved results for the three-month period in 2011 versus the same period in 2010 were driven by increased commercial aircraft build rates resulting in the largest quarterly volume of shipped mill products by the Company in over ten years. Average selling prices for the quarter were also higher than in the comparable period in 2010.
During the first nine months of 2011, the Titanium Group posted operating income of $22.9 million on sales of $231.7 million, including intersegment sales of $114.7 million. During the first nine months of 2010, the Titanium Group posted operating income of $18.1 million on sales of $168.7 million, including intersegment sales of $67.1 million, which included the $15.4 million customer payment with no associated cost.
Mill product shipments for the third quarter were 4.3 million pounds at an average realized price of $18.99 per pound, compared to mill product shipments of 2.7 million pounds in the third quarter of 2010 at an average realized price of $18.05 per pound.
Mill product shipments for the first nine months of 2011 were 10.7 million pounds at an average realized price of $19.69 per pound compared to mill product shipments of 7.4 million pounds in 2010 at an average realized price of $18.88 per pound.
Fabrication Group
During the third quarter of 2011, the Fabrication Group posted an operating loss of $1.5 million on net sales of $40.2 million. For the same period in 2010, this Group had an operating loss of $3.0 million on net sales of $34.1 million. The lower operating losses for the three-month period in 2011 versus 2010 were driven in part by increased shipments for the Boeing 787 Dreamliner, improvement in the internal supply chain for the fabrication of these parts, as well as a customer payment for engineering design changes.
For the first nine months of 2011, the Fabrication Group reported net sales of $110.5 million and an operating loss of $8.0 million compared with net sales of $100.0 million and an operating loss of $9.1 million for the same period in the prior year.
Distribution Group
For the third quarter of 2011, the Distribution Group posted an operating profit of $4.3 million on net sales of $58.4 million. During the same period in 2010, the Distribution Group posted an operating loss of $0.5 million on net sales of $36.2 million. The operating profit during the period reflected higher demand for both our titanium and specialty alloys products due to increased commercial aircraft production, as well as increased demand from our various rotorcraft customers and higher build rates on the Joint Strike Fighter.
For the nine months ended September 30, 2011, the Distribution Group reported net sales of $160.3 million resulting in operating income of $8.4 million, compared with net sales of $115.5 million and operating income of $2.5 million for the same period in the prior year.
CEO Comment
Dawne S. Hickton, Vice Chair, President, and CEO stated, “Overall end-market demand for titanium continues to accelerate, notwithstanding headwinds in the defense sector. We now expect total mill product shipments for the year to exceed 14.0 million pounds. Commercial aircraft production increases announced by both Airbus and Boeing are driving this accelerated demand. And given our customers’ concerns regarding the ability for the overall supply chain to keep up with their increasing build rates, customers are placing orders for titanium mill products approximately 12 to 18 months before expected aircraft deliveries.
“Finally, the acquisition of the Forming Division of Aeromet PLC, which will be called ‘RTI Advanced Forming,’ is expected to close by December 1, 2011. I’m very excited about the additional capabilities that RTI Advanced Forming will add to our product offering, particularly since it will provide several fabrication-related enhancements for the direct benefit of our end-market aerospace and defense customers.”
Conference Call Information
To participate in today’s 10:00 a.m. Eastern Time conference call, please dial toll free (USA/Canada) 888-895-5479 or (International) 847-619-6250 a few minutes prior to the start time and specify the RTI International Metals’ Conference Call.
Replay Information
Replay of the call will be accessible one hour after the conference ends and remain available until Tuesday, November 15, 2011 at 11:59 p.m., Eastern Time. To access the conference call replay, dial (USA/Canada) 888-843-7419 or (International) 630-652-3042 and enter Pass Code 3099 3210 #.
Forward Looking Statement
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, actual build-rates, production schedules and titanium content per aircraft for commercial and military aerospace programs, military spending generally and in particular, demand from the Joint Strike Fighter program, the impact from Boeing 787 production delays, 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 the Company’s 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.
Company Description
RTI International Metals, Inc., headquartered in Pittsburgh, Pennsylvania, specializes in advanced titanium, meeting the requirements of the world's most technologically sophisticated applications in commercial aerospace, defense, propulsion, energy, industrial, chemical, and medical markets. For 60 years, RTI has been taking titanium further through advanced manufacturing, engineering, machining, and forming processes. The Company delivers titanium mill products, extruded shapes, form-ready parts, and highly engineered components through our downstream-integrated supply chain. RTI has locations in the United States, Canada, Europe, and Asia. To learn more about RTI International Metals, Inc., visit our website at www.rtiintl.com.
RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES | |||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, | September 30 | ||||||||||||||||||||
2011 | 2010 | 2011 | 2010 | ||||||||||||||||||
Net sales | $ | 143,671 | $ | 102,593 | $ | 387,734 | $ | 317,129 | |||||||||||||
Cost and expenses: | |||||||||||||||||||||
Cost of sales | 118,665 | 88,418 | 312,134 | 258,482 | |||||||||||||||||
Selling, general, and administrative expenses | 16,388 | 15,771 | 51,464 | 47,828 | |||||||||||||||||
Research, technical, and product development expenses | 925 | 783 | 2,447 | 2,536 | |||||||||||||||||
Asset and asset-related charges (income) | - | (151 | ) | (1,501 | ) | (3,262 | ) | ||||||||||||||
Operating income (loss) | 7,693 | (2,228 | ) | 23,190 | 11,545 | ||||||||||||||||
Other income (expense) | 198 | (519 | ) | (238 | ) | (153 | ) | ||||||||||||||
Interest income | 331 | 127 | 911 | 358 | |||||||||||||||||
Interest expense | (4,173 | ) | (264 | ) | (12,723 | ) | (828 | ) | |||||||||||||
Income (loss) before income taxes | 4,049 | (2,884 | ) | 11,140 | 10,922 | ||||||||||||||||
Provision for income taxes | 1,982 | 13,891 | 4,603 | 6,060 | |||||||||||||||||
Net Income (loss) | $ | 2,067 | $ | (16,775 | ) | $ | 6,537 | $ | 4,862 | ||||||||||||
Earnings (loss) per share: | |||||||||||||||||||||
Basic | $ | 0.07 | $ | (0.56 | ) | $ | 0.22 | $ | 0.16 | ||||||||||||
Diluted | $ | 0.07 | $ | (0.56 | ) | $ | 0.22 | $ | 0.16 | ||||||||||||
Weighted-average shares outstanding: | |||||||||||||||||||||
Basic | 30,025,607 | 29,933,615 | 30,013,464 | 29,901,657 | |||||||||||||||||
Diluted | 30,251,411 | 29,933,615 | 30,278,456 | 30,143,031 | |||||||||||||||||
RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES | ||||||||||||||
September 30, | December 31, | |||||||||||||
ASSETS | 2011 | 2010 | ||||||||||||
Current assets: | ||||||||||||||
Cash and cash equivalents | $ | 189,741 | $ | 376,951 | ||||||||||
Short-term investments | 76,587 | 20,275 | ||||||||||||
Receivables, less allowance for doubtful accounts of $778 and $478 | 87,883 | 56,235 | ||||||||||||
Inventories, net | 257,049 | 269,719 | ||||||||||||
Deferred income taxes | 19,974 | 22,891 | ||||||||||||
Other current assets | 14,663 | 16,299 | ||||||||||||
Total current assets | 645,897 | 762,370 | ||||||||||||
Property, plant, and equipment, net | 268,056 | 260,576 | ||||||||||||
Marketable securties | 89,479 | - | ||||||||||||
Goodwill | 41,305 | 41,795 | ||||||||||||
Other intangible assets, net | 12,829 | 14,066 | ||||||||||||
Deferred income taxes | 23,611 | 21,699 | ||||||||||||
Other noncurrent assets | 5,228 | 6,348 | ||||||||||||
Total assets | $ | 1,086,405 | $ | 1,106,854 | ||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Current liabilities: | ||||||||||||||
Accounts payable | $ | 53,960 | $ | 47,226 | ||||||||||
Accrued wages and other employee costs | 20,978 | 21,951 | ||||||||||||
Unearned revenues | 18,234 | 28,358 | ||||||||||||
Other accrued liabilities | 19,831 | 28,179 | ||||||||||||
Total current liabilities | 113,003 | 125,714 | ||||||||||||
Long-term debt | 184,695 | 178,107 | ||||||||||||
Noncurrent liability for post-retirement benefits | 41,128 | 39,903 | ||||||||||||
Noncurrent liability for pension benefits | 7,153 | 33,830 | ||||||||||||
Deferred income taxes | 5,441 | 3,147 | ||||||||||||
Other noncurrent liabilities | 8,538 | 7,753 | ||||||||||||
Total liabilities | 359,958 | 388,454 | ||||||||||||
Commitments and Contingencies | ||||||||||||||
Shareholders’ equity: | ||||||||||||||
Common stock, $0.01 par value; 50,000,000 shares authorized; | ||||||||||||||
30,935,132 and 30,858,725 shares issued; 30,187,961 and | ||||||||||||||
30,123,519 shares oustanding | 309 | 309 | ||||||||||||
Additional paid-in capital | 478,025 | 474,277 | ||||||||||||
Treasury stock, at cost; 747,171 and 735,206 shares | (17,646 | ) | (17,363 | ) | ||||||||||
Accumulated other comprehensive loss | (34,292 | ) | (32,337 | ) | ||||||||||
Retained earnings | 300,051 | 293,514 | ||||||||||||
Total shareholders’ equity | 726,447 | 718,400 | ||||||||||||
Total liabilities and shareholders’ equity | $ | 1,086,405 | $ | 1,106,854 | ||||||||||
RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES | ||||||||||||
Nine Months Ended | ||||||||||||
September 30, | ||||||||||||
2011 | 2010 | |||||||||||
Cash provided by (used in) operating activities (including depreciation and | ||||||||||||
amortization of $16,697 and $16,600 for the nine months ended | ||||||||||||
September 30, 2011 and 2010, respectively) | $ | (13,507 | ) | $ | 31,611 | |||||||
Cash provided by (used in) investing activities (1) | (173,346 | ) | 23,359 | |||||||||
Cash provided by financing activities | 207 | 955 | ||||||||||
Effect of exchange rate changes on cash and cash equivalents | (564 | ) | 1,493 | |||||||||
Increase (decrease) in cash and cash equivalents | (187,210 | ) | 57,418 | |||||||||
Cash and cash equivalents at beginning of period | 376,951 | 56,216 | ||||||||||
Cash and cash equivalents at end of period | $ | 189,741 | $ | 113,634 | ||||||||
(1) | In the current year, cash used in investing activities included net purchases of short-term investments and marketable securities of $147,392 compared to net sales of short-term investments of $44,785 in the prior year. | |
RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES | ||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
September 30, | September 30, | |||||||||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||||||||
Net sales: | ||||||||||||||||||
Titanium Group | $ | 45,028 | $ | 32,263 | $ | 116,983 | $ | 101,660 | ||||||||||
Intersegment sales | 42,709 | 20,006 | 114,677 | 67,062 | ||||||||||||||
Total Titanium Group sales | 87,737 | 52,269 | 231,660 | 168,722 | ||||||||||||||
Fabrication Group | 40,220 | 34,116 | 110,474 | 100,013 | ||||||||||||||
Intersegment sales | 13,916 | 12,753 | 42,470 | 40,184 | ||||||||||||||
Total Fabrication Group sales | 54,136 | 46,869 | 152,944 | 140,197 | ||||||||||||||
Distribution Group | 58,423 | 36,214 | 160,277 | 115,456 | ||||||||||||||
Intersegment sales | 255 | 835 | 1,056 | 2,116 | ||||||||||||||
Total Distribution Group sales | 58,678 | 37,049 | 161,333 | 117,572 | ||||||||||||||
Eliminations | 56,880 | 33,594 | 158,203 | 109,362 | ||||||||||||||
Total consolidated net sales | $ | 143,671 | $ | 102,593 | $ | 387,734 | $ | 317,129 | ||||||||||
Operating income (loss): | ||||||||||||||||||
Titanium Group before corporate allocations | $ | 7,366 | $ | 3,633 | $ | 30,475 | $ | 24,570 | ||||||||||
Corporate allocations | (2,428 | ) | (2,328 | ) | (7,616 | ) | (6,441 | ) | ||||||||||
Total Titanium Group operating income | 4,938 | 1,305 | 22,859 | 18,129 | ||||||||||||||
Fabrication Group before corporate allocations | 1,647 | 187 | 1,841 | (291 | ) | |||||||||||||
Corporate allocations | (3,146 | ) | (3,205 | ) | (9,870 | ) | (8,784 | ) | ||||||||||
Total Fabrication Group operating loss | (1,499 | ) | (3,018 | ) | (8,029 | ) | (9,075 | ) | ||||||||||
Distribution Group before corporate allocations | 6,139 | 1,268 | 14,273 | 7,455 | ||||||||||||||
Corporate allocations | (1,885 | ) | (1,783 | ) | (5,913 | ) | (4,964 | ) | ||||||||||
Total Distribution Group operating income (loss) | 4,254 | (515 | ) | 8,360 | 2,491 | |||||||||||||
Total consolidated operating income (loss) | $ | 7,693 | $ | (2,228 | ) | $ | 23,190 | $ | 11,545 | |||||||||
RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES | ||||||
Nine Months | ||||||
Operating income - GAAP | $ | 11,545 | ||||
Customer payment with no associated cost | (15,400 | ) | ||||
Operating loss - Non-GAAP | $ | (3,855 | ) |
CONTACT:
RTI International Metals, Inc.
Richard E. Leone Director - Investor Relations, 330-544-7622
rleone@rtiintl.com