First Quarter 2024 Earnings Call
April 24, 2024
Forward-Looking Statements
Certain statements contained in this presentation may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. This presentation may contain "forward-looking statements" with respect to our business, results of operations and financial condition, and our expectations or beliefs concerning future events and conditions. You can identify forward- looking statements because they contain words such as, but not limited to, "believes," "expects," "may," "should," "approximately," "anticipates," "estimates," "intends," "plans," "targets," likely," "will," "would," "could" and similar expressions (or the negative of these terminologies or expressions). All forward-looking statements involve risks and uncertainties. Many risks and uncertainties are inherent in our industry and markets, while others are more specific to our business and operations. These risks and uncertainties include, but are not limited to: market competition; economic downturn; disruption to business operations; the Russian war on Ukraine and other geopolitical tensions; the inability to meet customer demand and quality requirements; the loss of key customers, suppliers or other business relationships; supply disruptions; excessive inflation; the capacity and effectiveness of our hedging policy activities; the loss of key employees; levels of indebtedness which could limit our operating flexibility and opportunities; and other risk factors set forth under the heading "Risk Factors" in our Annual Report on Form 20-F, and as described from time to time in subsequent reports filed with the U.S. Securities and Exchange Commission. The occurrence of the events described and the achievement of the expected results depend on many events, some or all of which are not predictable or within our control. Consequently, actual results may differ materially from the forward-looking statements contained in this press release. We undertake no obligation to update or revise any forward-looking statement as a result of new information, future events or otherwise, except as required by law.
First Quarter 2024 - Earnings Call | 2 |
Non-GAAP Measures
This presentation includes information regarding certain non-GAAP financial measures, including Adjusted EBITDA, Free Cash Flow and Net debt. These measures are presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors. Adjusted EBITDA measures are frequently used by securities analysts, investors and other interested parties in their evaluation of Constellium and in comparison to other companies, many of which present an adjusted EBITDA-related performance measure when reporting their results. Adjusted EBITDA, Free Cash Flow and Net debt are not presentations made in accordance with IFRS and may not be comparable to similarly titled measures of other companies. These non- GAAP financial measures supplement our IFRS disclosures and should not be considered an alternative to the IFRS measures. This presentation provides a reconciliation of non-GAAP financial measures to the most directly comparable GAAP financial measures.
We are not able to provide a reconciliation of Adjusted EBITDA guidance to net income, the comparable GAAP measure, because certain items that are excluded from Adjusted EBITDA cannot be reasonably predicted or are not in our control. In particular, we are unable to forecast the timing or magnitude of realized and unrealized gains and losses on derivative instruments, non-cash impact of metal price lag, impairment or restructuring charges, or taxes without unreasonable efforts, and these items could significantly impact, either individually or in the aggregate, our net income in the future.
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Jean-Marc Germain
Chief Executive Officer
Q1 2024 Highlights
-
Safety: Delivered strong safety performance; recordable case rate(1) of
2.2 per million hours worked in Q1 2024 - Shipments: 380 thousand tons (-2% YoY)
- Revenue: €1.7 billion (-12% YoY)
- Net income: €17 million
- Cash from Operations: €54 million
- Free Cash Flow: €(8) million
- Shareholder Returns: repurchased 330 thousand shares for $6.9 million
- Leverage: 2.4x at March 31, 2024
Adjusted EBITDA Bridge
€ in millions
- Adjusted EBITDA: €137 million
- Includes non-cash metal price lag impact of €(13) million
- Record Q1 Segment Adjusted EBITDA in A&T
Solid Q1 results despite significant weather-related impact in Muscle Shoals
(1) Recordable case rate measures the number of fatalities, serious injuries, lost-time injuries, restricted work injuries, | First Quarter 2024 - Earnings Call | 5 |
or medical treatments per one million hours worked. | ||
Note: Segment Adjusted EBITDA excludes the non-cash impact of metal price lag.
Jack Guo
Chief Financial Officer
Packaging & Automotive Rolled Products
Q1 2024 Performance
- Segment Adjusted EBITDA of €43 million
- Higher packaging and automotive shipments
- Weather-relatedimpacts and operating challenges in Muscle Shoals
- Unfavorable price and mix
- Unfavorable metal costs
Q1 | Q1 | %r | |
2024 | 2023 | ||
Shipments (kt) | 264 | 259 | 2% |
Revenue (€m) | 938 | 1,030 | (9)% |
Segment Adj. | 43 | 55 | (21)% |
EBITDA (€m) | |||
Segment Adj. | 165 | 213 | (23)% |
EBITDA (€ / t) | |||
Q1 Segment Adjusted EBITDA Bridge
First Quarter 2024 - Earnings Call | 7 |
Aerospace & Transportation
Q1 2024 Performance
- Segment Adjusted EBITDA of €80 million
- Higher aerospace shipments; lower TID shipments
- Improved price and mix
- Lower operating costs
Q1 | Q1 | %r | |
2024 | 2023 | ||
Shipments (kt) | 57 | 58 | (1)% |
Revenue (€m) | 441 | 452 | (2)% |
Segment Adj. | 80 | 73 | 10% |
EBITDA (€m) | |||
Segment Adj. | 1,382 | 1,246 | 11% |
EBITDA (€ / t) | |||
Q1 Segment Adjusted EBITDA Bridge
First Quarter 2024 - Earnings Call | 8 |
Automotive Structures & Industry
Q1 2024 Performance
- Segment Adjusted EBITDA of €33 million
- Lower automotive and industry shipments (Q1 2023 includes CED business which was sold in Q3 2023)
- Unfavorable price and mix
- Lower operating costs
- Unfavorable FX/Other
Q1 | Q1 | %r | |
2024 | 2023 | ||
Shipments (kt) | 59 | 72 | (17)% |
Revenue (€m) | 364 | 483 | (25)% |
Segment Adj. | 33 | 43 | (23)% |
EBITDA (€m) | |||
Segment Adj. | 558 | 599 | (7)% |
EBITDA (€ / t) | |||
Q1 Segment Adjusted EBITDA Bridge
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Free Cash Flow
Q1 2024 Free Cash Flow Highlights
Q1 2024 | Q1 2023 | |
- Free Cash Flow of €(8) million
- Compared to Q1 2023, less cash used for working capital and lower capital expenditures, partially offset by lower Adjusted EBITDA
- Repurchased 330 thousand shares for $6.9 million
€ in millions
Net cash flows from operating activities
Purchases of property, plant and equipment, net of grants received
Free Cash Flow
54 34
- (68)
- (34)
Track Record of Free Cash Flow Generation
€ in millions
Current 2024 Expectations
- Free Cash Flow: >€130 million
- Capex: ~€370 million
- Cash interest: ~€125 million
- Cash taxes: ~€55 million
- TWC/Other: modest use of cash
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Disclaimer
Constellium SE published this content on 24 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 April 2024 10:16:19 UTC.