Continued strong performance and
year-over-year revenue growth in aerospace and defense
- Q4 2023 sales of $1.06
billion, up 5% over Q4 2022; full year 2023 sales of
$4.17 billion, up 9% over full year
2022
- Q4 2023 net income attributable to ATI of $145.7 million, or $0.99 per share; full year 2023 net income
attributable to ATI of $410.8
million, or $2.81 per
share
- Aerospace and defense represent 63% of Q4 2023 sales, up
from 61% of Q3 2023 sales and 53% of Q4 2022 sales
- Full year operating cash flow of $85.9 million, including $272.0 million of defined benefit pension plan
contributions
- Non-GAAP Information**
- Q4 adjusted net income attributable to ATI of $93.0 million or $0.64 per share
- Q4 2023 ATI adjusted EBITDA of $160.7
million, or 15.1% of sales
- Full year Free Cash Flow of $164.7
million
DALLAS, Feb. 1, 2024
/PRNewswire/ -- ATI Inc. (NYSE: ATI) reported fourth quarter 2023
results, with sales of $1.06 billion
and net income attributable to ATI of $145.7
million, or $0.99 per
share.
|
|
|
|
|
Sequential
|
|
Y-O-Y
|
($ in millions except
per share amounts)
|
Q4
2023
|
|
Q3
2023*
|
|
Change
|
Q4
2022*
|
Change
|
|
|
|
|
|
|
|
|
Sales
|
$1,064.0
|
|
$1,025.6
|
|
4 %
|
$1,010.4
|
5 %
|
Net income attributable
to ATI
|
$145.7
|
|
$90.2
|
|
62 %
|
$193.0
|
(25) %
|
Earnings per
share
|
$0.99
|
|
$0.62
|
|
60 %
|
$1.30
|
(24) %
|
Non-GAAP
information**
|
|
|
|
|
|
|
|
Adjusted net income
attributable to ATI**
|
$93.0
|
|
$94.2
|
|
(1) %
|
$92.7
|
— %
|
Adjusted earnings per
share**
|
$0.64
|
|
$0.64
|
|
— %
|
$0.63
|
2 %
|
ATI adjusted
EBITDA**
|
$160.7
|
|
$162.6
|
|
(1) %
|
$155.9
|
3 %
|
*Three months ended
September 30, 2023 and December 31, 2022 reflect the change in
accounting policy for recognizing actuarial gains and losses for
the Company's defined benefit pension plans. Additional
details related to the policy change were furnished in our Current
Report on Form 8-K dated January 19, 2024.
|
** Detailed
reconciliations of the reported information under accounting
principles generally accepted in the United States (U.S. GAAP) to
adjusted non-GAAP figures are included in accompanying financial
tables.
|
Adjusted earnings per share** for Q4 2023 was $0.64, and ATI adjusted EBITDA** was $160.7 million, or 15.1% of sales. Q4 2023
adjusted results exclude pre-tax charges of $88.3 million, primarily consisting of pension
related settlement and remeasurement losses, charges associated
with the transformation of our European operations and start-up
costs. The after-tax impact, including the deferred tax asset
valuation allowance release, of these special items is a benefit of
$52.7 million, or $0.35 per share. Q3 2023 adjusted results
exclude $4.2 million in pre-tax
charges related to start-up costs and an unplanned outage,
partially offset by restructuring credits. Q4 2022
adjusted results exclude $100.3
million of pre-tax gains that resulted from the annual
remeasurement of pension plan assets and obligations. The
reconciliations within the non-GAAP tables provides additional
details on special items.
"ATI delivered a strong finish to 2023, with the highest
quarterly revenue of the year," said Robert
S. Wetherbee, Board Chair and CEO. "Full year sales grew by
9% over 2022 as demand for our differentiated materials
accelerates. We made significant progress toward our strategy of
aerospace and defense leadership, reaching 63% of total sales from
those markets in the fourth quarter, up 10 percentage points over
last year. We're rapidly progressing toward our goal of 65%," he
said.
"Growth in aerospace and defense drove results in our HPMC
segment, with full-year sales up 29% and EBITDA margins up
significantly over the prior year," said Wetherbee. "Full-year 2023
commercial airframe product sales in the segment were up 90%
compared to the prior year, reflecting the strong demand for our
materials as the aerospace ramp continues."
Operating Results by Segment
High Performance
Materials & Components (HPMC)
|
|
|
|
|
|
($ millions)
|
Q4
2023
|
|
Q3
2023*
|
|
Q4
2022*
|
Sales
|
$582.5
|
|
$539.5
|
|
$445.9
|
|
|
|
|
|
|
Segment
EBITDA
|
$125.1
|
|
$117.2
|
|
$83.6
|
% of Sales
|
21.5 %
|
|
21.7 %
|
|
18.7 %
|
*Three months ended September 30, 2023 and December
31, 2022 reflect the change in accounting policy for recognizing
actuarial gains and losses for the Company's defined benefit
pension plans. Additional details related to the policy change were
furnished in our Current Report on Form 8-K dated January 19,
2024.
|
- HPMC's fourth quarter 2023 sales increased $43 million, or 8%, compared to the third quarter
2023, primarily driven by growth in the jet engine market.
Overall aerospace and defense sales were 86% of total HPMC sales in
the fourth quarter 2023. Fourth quarter 2023 sales improved
31% compared to the fourth quarter 2022, with total aerospace and
defense related sales increasing 35% compared to the prior year
period.
- HPMC segment EBITDA was $125.1
million, or 21.5% of sales. Increased volumes on
higher-margin next-generation commercial aerospace platforms
continue to drive strong incremental margins.
Advanced Alloys &
Solutions (AA&S)
|
|
|
|
|
|
($ millions)
|
Q4
2023
|
|
Q3
2023*
|
|
Q4
2022*
|
Sales
|
$481.5
|
|
$486.1
|
|
$564.5
|
|
|
|
|
|
|
Segment
EBITDA
|
$57.3
|
|
$61.5
|
|
$84.0
|
% of Sales
|
11.9 %
|
|
12.7 %
|
|
14.9 %
|
*Three months ended September 30, 2023 and December
31, 2022 reflect the change in accounting policy for recognizing
actuarial gains and losses for the Company's defined benefit
pension plans. Additional details related to the policy change were
furnished in our Current Report on Form 8-K dated January 19,
2024.
|
- AA&S fourth quarter 2023 sales decreased by $5 million and $83
million compared to the third quarter 2023 and fourth
quarter 2022, respectively. Sales of defense products
increased 25% compared to the prior year period, partially
offsetting lower sales from softness in general industrial
markets.
- AA&S segment EBITDA was $57.3
million, or 11.9% of sales. Increases in titanium mill
products deliveries were offset by reduced deliveries of
nickel-based alloys in the fourth quarter 2023.
Corporate Items and Cash
- During the fourth quarter of 2023, ATI voluntarily changed
the method of accounting for recognizing actuarial gains and losses
for our defined benefit pension plans. This change has been
applied to all defined benefit pension plans on a retrospective
basis for all prior periods presented. Additional details
related to the policy change were furnished in our Current Report
on Form 8-K dated January 19,
2024.
- In the fourth quarter, as previously announced, the Company
transferred approximately 85% of its U.S. qualified defined benefit
pension plan obligations and related assets to a third party
insurance company through the purchase of group annuity
contracts. The group annuity contracts were purchased using
assets from ATI's master pension trust. This transaction
resulted in a pension settlement loss of $41.7 million.
- As a result of the voluntary change in pension accounting
policy, actuarial gains and losses are now reported in current
period earnings. The 2023 remeasurements of pension plan
assets and obligations resulted in actuarial losses of $26.8 million which were recognized in the fourth
quarter. The fourth quarter 2022 remeasurement of pension
plan assets and obligations resulted in a gain of $100.3 million being recognized in the fourth
quarter 2022.
- Restructuring and other charges:
- Fourth quarter 2023: $16.8
million includes pre-tax charges of $13.8 million of costs associated with the
transformation of our European organization and $3.0 million for start-up costs.
- Third quarter 2023: $4.2 million
includes pre-tax charges of $2.8
million for start-up costs and $1.9
million of costs associated with an unplanned outage at
our Lockport, NY melt facility, partially offset by
$0.5 million of restructuring
credits.
- Corporate expenses in the fourth quarter 2023 were $15.2 million, compared to $12.5 million in the third quarter 2023, and
$14.0 million in the prior year
quarter. Fourth quarter 2023 corporate expenses, compared to
the third quarter 2023, increased in part due to higher incentive
compensation.
- Closed operations and other expense was $6.5 million in the fourth quarter 2023, compared
to $3.6 million in the third quarter
2023, and $2.3 million of income in
the prior year quarter. Higher costs in the fourth quarter
2023, compared to the third quarter 2023, were associated with an
outstanding insurance claim involving our captive insurance
company.
- At December 31, 2023, ATI
determined that a substantial portion of the income tax valuation
allowances were no longer required due to improved profitability
and exiting the three year cumulative loss for U.S. federal and
state jurisdictions. As a result, a $137.4 million discrete tax benefit, primarily
related to the reversal of the Company's valuation allowance, was
recognized in the fourth quarter. Prospectively, the Company
expects to record income tax expense using a tax rate between 22.5%
and 23.5%. However, the Company does not expect to pay any
significant U.S. federal or state income taxes until 2025 due to
net operating loss carryforwards and carryover
credits.
- Cash provided by operating activities was $86 million on a year-to-date basis. Excluding
full year 2023 voluntary defined benefit pension contributions of
$272 million, cash provided by
operating activities would have been $358
million. Continued efforts to focus on operational
improvements are positively impacting the inventory intensity of
our business and alleviating the required investment of managed
working capital in our growing business. Fourth quarter 2023
managed working capital as a percent of sales was 31.1%.
Capital expenditures for the fourth quarter were $53 million and full year capital expenditures
were $201 million.
- Cash on hand at December 31, 2023
was $744 million, and available
additional liquidity under the asset-based lending (ABL) credit
facility was approximately $530
million. As of December 31,
2023, we had no outstanding borrowings on the ABL credit
facility. ATI has no significant debt maturities until
2025.
- During the fourth quarter of 2023, the Company repurchased
stock using the remaining $30 million
of the $75 million repurchase plan
approved by our Board of Directors in 2023. In addition, on
November 29, 2023, our Board of
Directors authorized the repurchase of an additional $150 million of ATI stock.
- As of December 31, 2023, our U.S.
qualified defined benefit pension plan is 114% funded on a
financial reporting basis. Our consolidated net pension
liability, inclusive of obligations related to our qualified and
nonqualifed defined benefit pension plans, was $9 million, or 97% funded on a financial
reporting basis, a significant improvement compared to a
$219 million liability, or 88% funded
position, at December 31,
2022.
Full Year 2023 Results
|
Full
Year
|
Y-O-Y
|
($ in millions except
per share amounts)
|
2023
|
|
2022*
|
Change
|
|
|
|
|
|
Sales
|
$4,173.7
|
|
$3,836.0
|
9 %
|
Net income attributable
to ATI
|
$410.8
|
|
$323.5
|
27 %
|
Earnings per
share
|
$2.81
|
|
$2.23
|
26 %
|
Non-GAAP
information**
|
|
|
|
|
Adjusted net income
attributable to ATI**
|
$373.4
|
|
$351.2
|
6 %
|
Adjusted earnings per
share**
|
$2.56
|
|
$2.41
|
6 %
|
ATI adjusted
EBITDA**
|
$634.6
|
|
$612.8
|
4 %
|
*Full year 2022
results reflect the change in accounting policy for recognizing
actuarial gains and losses for the Company's defined benefit
pension plans. Additional details related to the policy
change were furnished in our Current Report on Form 8-K dated
January 19, 2024.
|
** Detailed
reconciliations of the reported information under accounting
principles generally accepted in the United States (U.S. GAAP) to
adjusted non-GAAP figures are included in accompanying financial
tables.
|
Full year results improved in 2023 as compared to 2022.
Adjusted results for 2023 exclude pre-tax special charges totaling
$104.3 million. However, the
after-tax impact of the special items, including the deferred tax
asset valuation allowance release, is a benefit of $37.4 million. Pre-tax special charges
primarily consist of pension related settlement and remeasurement
losses, charges associated with the transformation of our European
operations, and start-up costs. Full year 2022 adjusted
results excluded a loss on the sale of the Sheffield, UK operations and the costs
associated with the settlement of litigation related to the 2016
idling of the Rowley, UT titanium sponge production facility. The
2022 charges were partially offset by gains that resulted from the
annual remeasurement of pension plan asset and obligations as well
as severance-related reserve adjustments based on changes in the
planned operating rates and revised work force reduction
estimates. The reconciliations within the non-GAAP tables
provides additional details on special items.
Outlook
"There are now more commercial jet engines on firm industry
backlog than at any time in history," said Wetherbee. "We are
well-positioned to meet this record demand in our largest end
market and to drive profitable growth," he said. "We have the
right strategy, the right capabilities, and the right team to
achieve our long-term targets. As our results demonstrate,
we're on-track to deliver more than $5
billion in revenue and $1
billion in adjusted EBITDA by 2027."
***********
ATI will conduct a conference call with investors and analysts
on Thursday, February 1, 2024, at 10:30
a.m. ET to discuss the financial results. The conference
call will be broadcast, and accompanying presentation slides will
be available, at ATImaterials.com. To access the broadcast, click
on "Conference Call." Replay of the conference call will be
available on the ATI website.
This news release contains "forward-looking statements" within
the meaning of the Private Securities Litigation Reform Act of
1995. Certain statements in this news release relate to future
events and expectations and, as such, constitute forward-looking
statements. Forward-looking statements, which may contain such
words as "anticipates," "believes," "estimates," "expects,"
"would," "should," "will," "will likely result," "forecast,"
"outlook," "projects," and similar expressions, are based on
management's current expectations and include known and unknown
risks, uncertainties and other factors, many of which we are unable
to predict or control. Our performance or achievements may differ
materially from those expressed or implied in any forward-looking
statements due to the following factors, among others: (a) material
adverse changes in economic or industry conditions generally,
including global supply and demand conditions and prices for our
specialty materials; (b) material adverse changes in the markets we
serve; (c) our inability to achieve the level of cost savings,
productivity improvements, synergies, growth or other benefits
anticipated by management from strategic investments and the
integration of acquired businesses; (d) volatility in the price and
availability of the raw materials that are critical to the
manufacture of our products; (e) declines in the value of our
defined benefit pension plan assets or unfavorable changes in laws
or regulations that govern pension plan funding; (f) labor disputes
or work stoppages; (g) equipment outages and (h) business and
economic disruptions associated with extraordinary events beyond
our control, such as war, terrorism, international conflicts,
public health issues, such as epidemics or pandemics, natural
disasters and climate-related events that may arise in the future
and (i) other risk factors summarized in our Annual Report on Form
10-K for the year ended December 31, 2022, and in other reports
filed with the Securities and Exchange Commission. We assume no
duty to update our forward-looking statements.
ATI: Proven to Perform.
ATI (NYSE: ATI) is a global
producer of high performance materials and solutions for the global
aerospace and defense markets, and critical applications in
electronics, medical and specialty energy. We're solving the
world's most difficult challenges through materials science. We
partner with our customers to deliver extraordinary materials that
enable their greatest achievements: their products fly higher and
faster, burn hotter, dive deeper, stand stronger and last longer.
Our proprietary process technologies, unique customer partnerships
and commitment to innovation deliver materials and solutions for
today and the evermore challenging environments of tomorrow.
We are proven to perform anywhere. Learn more at
ATImaterials.com.
ATI
Inc.
Consolidated
Statements of Operations
(Unaudited, dollars
in millions, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
|
2023
|
|
2023*
|
|
2022*
|
|
2023
|
|
2022*
|
|
|
|
|
|
|
|
|
|
|
Sales
|
$
1,064.0
|
|
$
1,025.6
|
|
$
1,010.4
|
|
$
4,173.7
|
|
$
3,836.0
|
|
|
|
|
|
|
|
|
|
|
Cost of
sales
|
858.3
|
|
831.0
|
|
824.7
|
|
3,371.1
|
|
3,121.8
|
Gross profit
|
205.7
|
|
194.6
|
|
185.7
|
|
802.6
|
|
714.2
|
|
|
|
|
|
|
|
|
|
|
Selling and
administrative expenses
|
92.3
|
|
69.8
|
|
76.8
|
|
328.1
|
|
297.5
|
Restructuring charges
(credits)
|
5.5
|
|
(0.5)
|
|
0.2
|
|
7.7
|
|
(4.8)
|
Loss (gain) on asset
sales and sales of businesses, net
|
(0.4)
|
|
0.1
|
|
—
|
|
0.4
|
|
105.4
|
Operating
income
|
108.3
|
|
125.2
|
|
108.7
|
|
466.4
|
|
316.1
|
Nonoperating retirement
benefit income (expense)
|
(72.4)
|
|
(2.4)
|
|
109.6
|
|
(79.7)
|
|
138.4
|
Interest expense,
net
|
(27.8)
|
|
(23.8)
|
|
(19.6)
|
|
(92.8)
|
|
(87.4)
|
Other income (expense),
net
|
—
|
|
—
|
|
2.8
|
|
1.3
|
|
(12.5)
|
Income before income
taxes
|
8.1
|
|
99.0
|
|
201.5
|
|
295.2
|
|
354.6
|
Income tax provision
(benefit)
|
(141.1)
|
|
4.9
|
|
4.2
|
|
(128.2)
|
|
15.5
|
Net
income
|
$
149.2
|
|
$
94.1
|
|
$
197.3
|
|
$
423.4
|
|
$
339.1
|
Less: Net income
attributable to noncontrolling interests
|
3.5
|
|
3.9
|
|
4.3
|
|
12.6
|
|
15.6
|
Net income
attributable to ATI
|
$
145.7
|
|
$
90.2
|
|
$
193.0
|
|
$
410.8
|
|
$
323.5
|
|
|
|
|
|
|
|
|
|
|
Basic net income
attributable to ATI per common share
|
$
1.15
|
|
$
0.70
|
|
$
1.49
|
|
$
3.21
|
|
$
2.54
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
attributable to ATI per common share
|
$
0.99
|
|
$
0.62
|
|
$
1.30
|
|
$
2.81
|
|
$
2.23
|
|
|
|
|
|
|
|
|
|
|
*Three months ended
September 30, 2023 and December 31, 2022 and Fiscal Year ended
December 31, 2022 reflect the change in accounting policy for
recognizing actuarial gains and losses for the Company's defined
benefit pension plans. Additional details related to the
policy change were furnished in our Current Report on Form 8-K
dated January 19, 2024.
|
ATI
Inc.
Sales and EBITDA by
Business Segment
(Unaudited, dollars
in millions)
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
|
2023
|
|
2023*
|
|
2022*
|
|
2023
|
|
2022*
|
Sales:
|
|
|
|
|
|
|
|
|
|
High Performance
Materials & Components
|
$
582.5
|
|
$
539.5
|
|
$
445.9
|
|
$
2,120.2
|
|
$ 1,641.2
|
Advanced Alloys &
Solutions
|
481.5
|
|
486.1
|
|
564.5
|
|
2,053.5
|
|
2,194.8
|
Total external
sales
|
$
1,064.0
|
|
$
1,025.6
|
|
$
1,010.4
|
|
$
4,173.7
|
|
$
3,836.0
|
|
|
|
|
|
|
|
|
|
|
EBITDA:
|
|
|
|
|
|
|
|
|
|
High Performance
Materials & Components
|
$
125.1
|
|
$
117.2
|
|
$
83.6
|
|
$
433.6
|
|
$
303.4
|
% of Sales
|
21.5 %
|
|
21.7 %
|
|
18.7 %
|
|
20.5 %
|
|
18.5 %
|
Advanced Alloys &
Solutions
|
57.3
|
|
61.5
|
|
84.0
|
|
276.6
|
|
375.3
|
% of Sales
|
11.9 %
|
|
12.7 %
|
|
14.9 %
|
|
13.5 %
|
|
17.1 %
|
Total segment
EBITDA
|
182.4
|
|
178.7
|
|
167.6
|
|
710.2
|
|
678.7
|
% of Sales
|
17.1 %
|
|
17.4 %
|
|
16.6 %
|
|
17.0 %
|
|
17.7 %
|
Corporate
expenses
|
(15.2)
|
|
(12.5)
|
|
(14.0)
|
|
(62.3)
|
|
(60.3)
|
Closed operations and
other income (expense)
|
(6.5)
|
|
(3.6)
|
|
2.3
|
|
(13.3)
|
|
(5.6)
|
ATI Adjusted
EBITDA
|
$
160.7
|
|
$
162.6
|
|
$
155.9
|
|
$
634.6
|
|
$
612.8
|
|
|
|
|
|
|
|
|
|
|
Depreciation &
amortization (a)
|
(39.5)
|
|
(35.6)
|
|
(35.8)
|
|
(146.1)
|
|
(142.9)
|
Interest expense,
net
|
(27.8)
|
|
(23.8)
|
|
(19.6)
|
|
(92.8)
|
|
(87.4)
|
Restructuring and other
charges
|
(16.8)
|
|
(4.2)
|
|
(0.2)
|
|
(31.4)
|
|
(23.7)
|
Loss on asset sales and
sales of businesses, net
|
—
|
|
—
|
|
—
|
|
(0.6)
|
|
(105.4)
|
Pension remeasurement
gain (loss)
|
(26.8)
|
|
—
|
|
100.3
|
|
(26.8)
|
|
100.3
|
Pension settlement
loss
|
(41.7)
|
|
—
|
|
—
|
|
(41.7)
|
|
—
|
Joint venture
restructuring credit
|
—
|
|
—
|
|
0.9
|
|
—
|
|
0.9
|
Income before income
taxes
|
$
8.1
|
|
$
99.0
|
|
$
201.5
|
|
$
295.2
|
|
$
354.6
|
|
|
|
|
|
|
|
|
|
|
(a) The following
is depreciation & amortization by each business
segment:
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
High Performance
Materials & Components
|
$
19.3
|
|
$
16.5
|
|
$
16.8
|
|
$
71.1
|
|
$
68.3
|
Advanced Alloys &
Solutions
|
18.3
|
|
17.3
|
|
17.4
|
|
67.9
|
|
67.4
|
Other
|
1.9
|
|
1.8
|
|
1.6
|
|
7.1
|
|
7.2
|
Total depreciation
& amortization
|
$
39.5
|
|
$
35.6
|
|
$
35.8
|
|
$
146.1
|
|
$
142.9
|
*Three months ended September 30, 2023 and December
31, 2022 and Fiscal Year ended December 31, 2022 reflect the change
in accounting policy for recognizing actuarial gains and losses for
the Company's defined benefit pension plans. Additional
details related to the policy change were furnished in our Current
Report on Form 8-K dated January 19, 2024.
|
ATI
Inc.
Condensed
Consolidated Balance Sheets
(Unaudited, dollars
in millions)
|
|
|
|
|
|
December
31
|
|
December
31
|
|
2023
|
|
2022*
|
ASSETS
|
|
|
|
|
|
|
|
Current
Assets:
|
|
|
|
Cash and cash
equivalents
|
$
743.9
|
|
$
584.0
|
Accounts receivable,
net of allowances for doubtful accounts
|
625.0
|
|
579.2
|
Short-term contract
assets
|
59.1
|
|
64.1
|
Inventories,
net
|
1,247.5
|
|
1,195.7
|
Prepaid expenses and
other current assets
|
62.2
|
|
53.4
|
Total
Current Assets
|
2,737.7
|
|
2,476.4
|
|
|
|
|
Property, plant and
equipment, net
|
1,665.9
|
|
1,549.1
|
Goodwill
|
227.2
|
|
227.2
|
Other assets
|
354.3
|
|
192.9
|
|
|
|
|
Total
Assets
|
$
4,985.1
|
|
$
4,445.6
|
|
|
|
|
LIABILITIES AND
EQUITY
|
|
|
|
|
|
|
|
Current
Liabilities:
|
|
|
|
Accounts
payable
|
$
524.8
|
|
$
553.3
|
Short-term contract
liabilities
|
163.6
|
|
149.1
|
Short-term debt and
current portion of long-term debt
|
31.9
|
|
41.7
|
Other current
liabilities
|
256.8
|
|
219.8
|
Total
Current Liabilities
|
977.1
|
|
963.9
|
|
|
|
|
Long-term
debt
|
2,147.7
|
|
1,706.3
|
Accrued postretirement
benefits
|
175.2
|
|
184.9
|
Pension
liabilities
|
39.7
|
|
225.6
|
Other long-term
liabilities
|
164.9
|
|
207.7
|
Total
Liabilities
|
3,504.6
|
|
3,288.4
|
|
|
|
|
Total ATI stockholders'
equity
|
1,373.0
|
|
1,045.9
|
Noncontrolling
interests
|
107.5
|
|
111.3
|
Total
Equity
|
1,480.5
|
|
1,157.2
|
|
|
|
|
Total Liabilities
and Equity
|
$
4,985.1
|
|
$
4,445.6
|
*December 31, 2022 reflects the change in accounting
policy for recognizing actuarial gains and losses for the Company's
defined benefit pension plans. There were no adjustments to
December 31, 2022 as presented above as a result of this change.
Additional details related to the policy change were furnished in
our Current Report on Form 8-K dated January 19,
2024.
|
ATI
Inc.
Condensed
Consolidated Statements of Cash Flows
(Unaudited, dollars
in millions)
|
|
|
|
|
|
Fiscal Year
Ended
|
|
|
December
31
|
|
December
31
|
|
|
2023
|
|
2022*
|
|
|
|
|
|
Operating
Activities:
|
|
|
|
|
Net income
|
$
423.4
|
|
$
339.1
|
|
|
|
|
|
|
Depreciation and
amortization
|
146.1
|
|
142.9
|
|
Share-based
compensation
|
29.1
|
|
26.0
|
|
Deferred
taxes
|
(138.2)
|
|
(0.1)
|
|
Net gain from disposal
of property, plant and equipment
|
(0.6)
|
|
(0.9)
|
|
Loss on sales of
businesses
|
0.6
|
|
112.2
|
|
Non-cash impairment
charges
|
3.0
|
|
—
|
|
Changes in operating
assets and liabilities:
|
|
|
|
|
Inventories
|
(51.8)
|
|
(190.8)
|
|
Accounts
receivable
|
(46.1)
|
|
(128.5)
|
|
Accounts
payable
|
(29.8)
|
|
156.1
|
|
Retirement
benefits
|
(218.2)
|
|
(210.5)
|
|
Accrued liabilities
and other
|
(31.6)
|
|
(20.6)
|
Cash provided by
operating activities
|
85.9
|
|
224.9
|
Investing
Activities:
|
|
|
|
|
Purchases of property,
plant and equipment
|
(200.7)
|
|
(130.9)
|
|
Proceeds from disposal
of property, plant and equipment
|
3.8
|
|
3.1
|
|
Proceeds from sales of
business, net of transaction costs
|
(0.3)
|
|
0.3
|
|
Other
|
4.0
|
|
0.8
|
Cash used in
investing activities
|
(193.2)
|
|
(126.7)
|
Financing
Activities:
|
|
|
|
|
Borrowings on long-term
debt
|
425.0
|
|
—
|
|
Payments on long-term
debt and finance leases
|
(25.2)
|
|
(23.1)
|
|
Net payments under
credit facilities
|
(14.0)
|
|
(5.6)
|
|
Debt issuance
costs
|
(6.2)
|
|
—
|
|
Purchase of treasury
stock
|
(85.2)
|
|
(139.9)
|
|
Sale to noncontrolling
interests
|
—
|
|
6.4
|
|
Dividends paid to
noncontrolling interests
|
(16.0)
|
|
(34.0)
|
|
Taxes on share-based
compensation and other
|
(11.2)
|
|
(5.7)
|
Cash provided by
(used in) financing activities
|
267.2
|
|
(201.9)
|
Increase (decrease)
in cash and cash equivalents
|
159.9
|
|
(103.7)
|
Cash and cash
equivalents at beginning of period
|
584.0
|
|
687.7
|
Cash and cash
equivalents at end of period
|
$
743.9
|
|
$
584.0
|
*Fiscal Year ended December 31, 2022 reflects the
change in accounting policy for recognizing actuarial gains and
losses for the Company's defined benefit pension plans.
Additional details related to the policy change were furnished in
our Current Report on Form 8-K dated January 19,
2024.
|
ATI
Inc.
Revenue by
Market
(Unaudited, dollars
in millions)
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Market
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace &
Defense:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Jet Engines-
Commercial
|
$
352.3
|
33 %
|
|
$ 329.4
|
32 %
|
|
$
305.6
|
30 %
|
|
$ 1,333.5
|
32 %
|
|
$ 1,063.5
|
28 %
|
Airframes-
Commercial
|
201.7
|
19 %
|
|
203.6
|
20 %
|
|
137.7
|
14 %
|
|
739.4
|
18 %
|
|
468.9
|
12 %
|
Defense
|
112.5
|
11 %
|
|
92.8
|
9 %
|
|
97.0
|
9 %
|
|
401.9
|
9 %
|
|
341.2
|
9 %
|
Total Aerospace &
Defense
|
$
666.5
|
63 %
|
|
$ 625.8
|
61 %
|
|
$
540.3
|
53 %
|
|
$ 2,474.8
|
59 %
|
|
$ 1,873.6
|
49 %
|
Energy:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Oil & Gas
|
88.8
|
8 %
|
|
87.0
|
8 %
|
|
121.3
|
12 %
|
|
414.6
|
10 %
|
|
476.7
|
13 %
|
Specialty Energy
|
60.4
|
6 %
|
|
61.9
|
6 %
|
|
79.3
|
8 %
|
|
273.2
|
7 %
|
|
276.6
|
7 %
|
Total Energy
|
149.2
|
14 %
|
|
148.9
|
14 %
|
|
200.6
|
20 %
|
|
687.8
|
17 %
|
|
753.3
|
20 %
|
Medical
|
52.5
|
5 %
|
|
47.5
|
5 %
|
|
40.0
|
4 %
|
|
176.9
|
4 %
|
|
163.1
|
4 %
|
Automotive
|
50.4
|
5 %
|
|
48.1
|
5 %
|
|
66.0
|
6 %
|
|
210.7
|
5 %
|
|
302.1
|
8 %
|
Electronics
|
44.7
|
4 %
|
|
44.8
|
4 %
|
|
50.5
|
5 %
|
|
159.9
|
4 %
|
|
200.0
|
5 %
|
Construction/Mining
|
34.1
|
3 %
|
|
40.0
|
4 %
|
|
36.7
|
4 %
|
|
162.9
|
4 %
|
|
176.4
|
5 %
|
Food Equipment &
Appliances
|
13.3
|
1 %
|
|
16.2
|
2 %
|
|
16.6
|
2 %
|
|
71.9
|
2 %
|
|
158.5
|
4 %
|
Other
|
53.3
|
5 %
|
|
54.3
|
5 %
|
|
59.7
|
6 %
|
|
228.8
|
5 %
|
|
209.0
|
5 %
|
Total
|
$ 1,064.0
|
100 %
|
|
$ 1,025.6
|
100 %
|
|
$
1,010.4
|
100 %
|
|
$ 4,173.7
|
100 %
|
|
$ 3,836.0
|
100 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ATI Inc.
Selected Financial Data
(Unaudited)
|
|
|
|
|
|
Three Months Ended
|
|
Fiscal Year Ended
|
|
December 31
|
|
September 30
|
|
December 31
|
|
December 31
|
|
December 31
|
|
2023
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Percentage of Total ATI Sales
|
|
|
|
|
|
|
|
|
Nickel-based alloys and
specialty alloys
|
44 %
|
|
47 %
|
|
50 %
|
|
49 %
|
|
52 %
|
Titanium and titanium-based
alloys
|
21 %
|
|
19 %
|
|
14 %
|
|
17 %
|
|
11 %
|
Precision forgings, castings
and components
|
19 %
|
|
18 %
|
|
16 %
|
|
17 %
|
|
15 %
|
Precision rolled strip
products
|
9 %
|
|
9 %
|
|
13 %
|
|
10 %
|
|
14 %
|
Zirconium and related
alloys
|
7 %
|
|
7 %
|
|
7 %
|
|
7 %
|
|
8 %
|
Total
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
100 %
|
|
|
|
|
|
|
|
|
|
|
Note:
Hot-Rolling and Processing Facility conversion service sales in the
AA&S segment are excluded from this
presentation.
|
ATI
Inc.
Computation of Basic
and Diluted Earnings Per Share Attributable to ATI
(Unaudited, dollars
in millions, except per share amounts)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
|
December
31
|
|
September
30
|
|
December
31
|
|
December
31
|
|
December
31
|
|
|
2023
|
|
2023*
|
|
2022*
|
|
2023
|
|
2022*
|
Numerator for Basic net
income per common share -
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ATI
|
$
145.7
|
|
$
90.2
|
|
$
193.0
|
|
$
410.8
|
|
$
323.5
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
4.75% Convertible
Senior Notes due 2022
|
—
|
|
—
|
|
—
|
|
—
|
|
2.2
|
|
3.5% Convertible Senior
Notes due 2025
|
2.7
|
|
2.7
|
|
2.7
|
|
10.6
|
|
11.3
|
Numerator for Diluted
net income per common share -
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ATI after assumed conversions
|
$
148.4
|
|
$
92.9
|
|
$
195.7
|
|
$
421.4
|
|
$
337.0
|
|
|
|
|
|
|
|
|
|
|
|
Denominator for Basic
net income per common share -
|
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
127.2
|
|
128.1
|
|
129.1
|
|
128.1
|
|
127.5
|
Effect of dilutive
securities:
|
|
|
|
|
|
|
|
|
|
|
Share-based
compensation
|
3.4
|
|
3.3
|
|
2.5
|
|
3.1
|
|
2.1
|
|
4.75% Convertible
Senior Notes due 2022
|
—
|
|
—
|
|
—
|
|
—
|
|
2.8
|
|
3.5% Convertible Senior
Notes due 2025
|
18.8
|
|
18.8
|
|
18.8
|
|
18.8
|
|
18.8
|
Denominator for Diluted
net income per common share -
|
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average shares assuming conversions
|
149.4
|
|
150.2
|
|
150.4
|
|
150.0
|
|
151.2
|
|
|
|
|
|
|
|
|
|
|
|
Basic net income
attributable to ATI per common share
|
$
1.15
|
|
$
0.70
|
|
$
1.49
|
|
$
3.21
|
|
$
2.54
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
attributable to ATI per common share
|
$
0.99
|
|
$
0.62
|
|
$
1.30
|
|
$
2.81
|
|
$
2.23
|
|
|
|
|
|
|
|
|
|
|
|
*Three months ended September 30, 2023 and December
31, 2022 and Fiscal Year ended December 31, 2022 reflect the change
in accounting policy for recognizing actuarial gains and losses for
the Company's defined benefit pension plans. Additional
details related to the policy change were furnished in our Current
Report on Form 8-K dated January 19, 2024.
|
ATI Inc.
Non-GAAP Financial Measures
(Unaudited, dollars in millions, except per share
amounts)
The Company reports its financial results in accordance with
accounting principles generally accepted in the United States of America ("GAAP").
However, management believes that certain non-GAAP financial
measures, used in managing the business, may provide users of this
financial information with additional meaningful comparisons
between current results and results in prior periods. For
example, we believe that EBITDA and Adjusted EBITDA are useful to
investors because these measures are commonly used to analyze
companies on the basis of operating performance, leverage and
liquidity. Furthermore, analogous measures are used by
industry analysts to evaluate operating performance. EBITDA
and Adjusted EBITDA are not intended to be measures of free cash
flow for management's discretionary use, as they do not consider
certain cash requirements such as interest payments, tax payments
and capital expenditures. Non-GAAP financial measures should
be viewed in addition to, and not as an alternative for, the
Company's reported results prepared in accordance with GAAP.
The following table provides the calculation of the non-GAAP
financial measures discussed in this press release:
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
December 31
2023
|
September 30
2023*
|
December 31
2022*
|
|
December 31
2023
|
December 31
2022*
|
|
|
|
|
|
|
|
Net income attributable
to ATI
|
$
145.7
|
$
90.2
|
$
193.0
|
|
$
410.8
|
$
323.5
|
Adjustments for special
items, pre-tax:
|
|
|
|
|
|
|
Restructuring and other
charges (a)
|
19.8
|
4.2
|
—
|
|
35.2
|
23.5
|
Pension remeasurement
loss (gain) (b)
|
26.8
|
—
|
(100.3)
|
|
26.8
|
(100.3)
|
Pension settlement loss
(c)
|
41.7
|
—
|
—
|
|
41.7
|
—
|
Loss on asset sales and
sales of businesses, net (d)
|
—
|
—
|
—
|
|
0.6
|
105.4
|
Total pre-tax
adjustments
|
88.3
|
4.2
|
(100.3)
|
|
104.3
|
28.6
|
|
|
|
|
|
|
|
Net change in deferred
taxes and valuation allowance (f)
|
(137.4)
|
—
|
—
|
|
(137.4)
|
—
|
Income tax on pre-tax
adjustments for special items
|
(3.6)
|
(0.2)
|
—
|
|
(4.3)
|
(0.9)
|
|
|
|
|
|
|
|
Net income attributable
to ATI excluding special items
|
$
93.0
|
$
94.2
|
$
92.7
|
|
$
373.4
|
$
351.2
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
Three Months
Ended
|
Three Months
Ended
|
|
|
December 31,
2023
|
|
September 30,
2023*
|
|
December 31,
2022*
|
|
|
Reported
|
Adjusted
|
|
Reported
|
Adjusted
|
|
Reported
|
Adjusted
|
Numerator for Basic net
income per common share -
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ATI
|
$
145.7
|
$
93.0
|
|
$
90.2
|
$
94.2
|
|
$
193.0
|
$
92.7
|
Effect of dilutive
securities
|
2.7
|
2.7
|
|
2.7
|
2.7
|
|
2.7
|
2.7
|
Numerator for Diluted
net income per common share -
|
|
|
|
|
|
|
|
|
|
Net income attributable
to ATI after assumed conversions
|
$
148.4
|
$
95.7
|
|
$
92.9
|
$
96.9
|
|
$
195.7
|
$
95.4
|
|
|
|
|
|
|
|
|
|
|
Denominator for Basic
net income per common share -
|
|
|
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
127.2
|
127.2
|
|
128.1
|
128.1
|
|
129.1
|
129.1
|
Effect of dilutive
securities
|
22.2
|
22.2
|
|
22.1
|
22.1
|
|
21.3
|
21.3
|
Denominator for Diluted
net income per common share -
|
|
|
|
|
|
|
|
|
|
Adjusted weighted
average shares assuming conversions
|
149.4
|
149.4
|
|
150.2
|
150.2
|
|
150.4
|
150.4
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
attributable to ATI per common share
|
$
0.99
|
$
0.64
|
|
$
0.62
|
$
0.64
|
|
$
1.30
|
$
0.63
|
|
|
Fiscal Year
Ended
|
|
|
December 31,
2023
|
|
December 31,
2022*
|
|
|
Reported
|
Adjusted
|
|
Reported
|
Adjusted
|
Numerator for Basic net
income per common share -
|
|
|
|
|
|
|
Net income attributable
to ATI
|
$
410.8
|
$
373.4
|
|
$
323.5
|
$
351.2
|
Effect of dilutive
securities
|
10.6
|
10.6
|
|
13.5
|
13.5
|
Numerator for Diluted
net income per common share -
|
|
|
|
|
|
|
Net income attributable
to ATI after assumed conversions
|
$
421.4
|
$
384.0
|
|
$
337.0
|
$
364.7
|
|
|
|
|
|
|
|
Denominator for Basic
net income per common share -
|
|
|
|
|
|
|
Weighted average shares
outstanding
|
128.1
|
128.1
|
|
127.5
|
127.5
|
Effect of dilutive
securities
|
21.9
|
21.9
|
|
23.7
|
23.7
|
Denominator for Diluted
net income per common share -
|
|
|
|
|
|
|
Adjusted weighted
average shares assuming conversions
|
150.0
|
150.0
|
|
151.2
|
151.2
|
|
|
|
|
|
|
|
Diluted net income
attributable to ATI per common share
|
$
2.81
|
$
2.56
|
|
$
2.23
|
$
2.41
|
Earnings before
interest, taxes, depreciation and
amortization (EBITDA)
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Fiscal Year
Ended
|
|
December 31
2023
|
|
September 30
2023*
|
|
December 31
2022*
|
|
December 31
2023
|
|
December 31
2022*
|
Net income attributable
to ATI
|
$
145.7
|
|
$
90.2
|
|
$
193.0
|
|
$
410.8
|
|
$
323.5
|
Net income attributable
to noncontrolling interests
|
3.5
|
|
3.9
|
|
4.3
|
|
12.6
|
|
15.6
|
Net income
|
149.2
|
|
94.1
|
|
197.3
|
|
423.4
|
|
339.1
|
(+) Depreciation and
Amortization
|
39.5
|
|
35.6
|
|
35.8
|
|
146.1
|
|
142.9
|
(+) Interest
Expense
|
27.8
|
|
23.8
|
|
19.6
|
|
92.8
|
|
87.4
|
(+/-) Income Tax
Provision (Benefit)
|
(141.1)
|
|
4.9
|
|
4.2
|
|
(128.2)
|
|
15.5
|
(+) Restructuring and
other charges (a)
|
16.8
|
|
4.2
|
|
0.2
|
|
31.4
|
|
23.7
|
(+/-) Pension
remeasurement loss (gain) (b)
|
26.8
|
|
—
|
|
(100.3)
|
|
26.8
|
|
(100.3)
|
(+) Pension settlement
loss (c)
|
41.7
|
|
—
|
|
—
|
|
41.7
|
|
—
|
(-) Joint venture
restructuring credit (e)
|
—
|
|
—
|
|
(0.9)
|
|
—
|
|
(0.9)
|
(+) Loss on asset sales
and sales of businesses, net (d)
|
—
|
|
—
|
|
—
|
|
0.6
|
|
105.4
|
ATI Adjusted
EBITDA
|
$
160.7
|
|
$
162.6
|
|
$
155.9
|
|
$
634.6
|
|
$
612.8
|
Corporate
expenses
|
15.2
|
|
12.5
|
|
14.0
|
|
62.3
|
|
60.3
|
Closed operations and
other expense (income)
|
6.5
|
|
3.6
|
|
(2.3)
|
|
13.3
|
|
5.6
|
Total segment
EBITDA
|
$
182.4
|
|
$
178.7
|
|
$
167.6
|
|
$
710.2
|
|
$
678.7
|
*Three months ended
September 30, 2023 and December 31, 2022 and Fiscal Year ended
December 31, 2022 reflect the change in accounting policy for
recognizing actuarial gains and losses for the Company's defined
benefit pension plans. Additional details related to the
policy change were furnished in our Current Report on Form 8-K
dated January 19, 2024.
|
(a) Fourth quarter 2023
includes pre-tax charges totaling $19.8 million, which include $3.0
million of start up costs, $5.5 million of severance-related
restructuring charges primarily for the restructuring of our
European operations, and $11.3 million for asset write-offs
associated with the restructuring of our European operations, of
which $3.0 million was accelerated depreciation on fixed assets and
is included in depreciation and amortization in the above
table. Third quarter 2023 includes pre-tax charges totaling
$4.2 million, which include $2.8 million for start-up costs and
$1.9 million of costs associated with an unplanned outage at our
Lockport, NY melt facility, partially offset by $0.5 million
pre-tax credit for restructuring charges, primarily related to
lowered severance-related reserves based on changes in planned
operating rates and revised workforce reduction estimates.
Fourth quarter 2022 includes a $0.2 million pre-tax restructuring
charge. Full year 2023 results includes pre-tax charges
totaling $35.2 million, which include $11.5 million of start up
costs, $1.9 million of costs associated with an unplanned outage at
our Lockport, NY facility, $7.7 million of severance-related
restructuring charges primarily for the restructuring of our
European operations and for reductions across ATI's domestic
operations in conjunction with the continued transformation, and
$14.1 million for asset write-offs primarily for the restructuring
of our European operations and the closure of our Robinson, PA
operations, of which $3.8 million was accelerated depreciation on
fixed assets and is included in depreciation and amortization in
the above table. Full year 2022 results includes a $28.5
million pre-tax litigation reserve, partially offset by a $4.8
million pre-tax credit for restructuring charges, primarily related
to lowered severance-related reserves based on changes in planned
operating rates and revised workforce reduction
estimates.
|
(b) Fourth quarter and
full year 2023 results include a $26.8 million loss and the fourth
quarter and full year 2022 results include a $100.3 million gain
for actuarial gains and losses arising from the remeasurement of
the Company's pension assets and obligations.
|
(c) On October 17,
2023, we completed a voluntary cash out for term vested employees
and annuity buyouts related to approximately 8,200 U.S. qualified
defined benefit pension plan participants. As a result, fourth
quarter and full year 2023 results include a $41.7 million pretax
settlement loss.
|
(d) Full year 2023
results include a $0.6 million loss on the sale of our Northbrook,
IL operation. Full year 2022 results include a $112.2 million
loss on the sale of our Sheffield, UK operations, which was
completed in the second quarter 2022. This loss includes $26.8
million related to the UK defined benefit pension plan, of which
$26.1 million was reported as a net pension asset and $0.7 million
in accumulated other comprehensive loss, and $20.0 million of
cumulative translation adjustment foreign exchange losses. This
loss was offset by a $6.8 million pre-tax gain on the sale of our
small Pico Rivera, CA operations as part of our strategy to exit
from standard stainless products.
|
(e) Full year and
fourth quarter 2022 results include a $0.9 million pre-tax credit
for ATI's 50% share of Allegheny & Tsingshan Stainless joint
venture's credit for restructuring charges.
|
(f) Fourth quarter and
full year 2023 results includes a $140.3 million discrete tax
benefit primarily related to the reversal of a portion of deferred
tax valuation allowances due to exiting the three-year cumulative
loss condition for U.S. Federal and state jurisdictions at year-end
2023, partially offset by a $2.9 million charge for withholding
taxes associated with the restructuring of our European
operations.
|
Free Cash Flow
Free cash flow as defined by ATI includes the total of cash
provided by (used in) operating activities and investing activities
as presented on the consolidated statements of cash flows, adjusted
to exclude cash contributions to the Company's U.S. qualified
defined benefit pension plans.
|
Fiscal Year
Ended
|
|
December 31,
2023
|
Cash provided by
operating activities
|
$
85.9
|
Add back: cash
contributions to U.S. qualified defined pension plans
|
272.0
|
Cash provided by
operating activities excluding pension contributions
|
357.9
|
Cash used in investing
activities
|
(193.2)
|
Free Cash Flow as
defined by ATI
|
$
164.7
|
Managed Working Capital
As part of managing the performance of our business, we focus on
controlling Managed Working Capital, which we define as gross
accounts receivable, short-term contract assets and gross
inventories, less accounts payable and short-term contract
liabilities. We exclude the effects of inventory valuation
reserves and reserves for uncollectible accounts receivable when
computing this non-GAAP performance measure, which is not intended
to replace Working Capital or to be used as a measure of
liquidity. We assess Managed Working Capital performance as a
percentage of the prior three months annualized sales to evaluate
the asset intensity of our business.
|
December
31
|
|
September
30
|
|
December
31
|
|
|
2023
|
|
2023
|
|
2022
|
|
|
|
|
|
|
|
|
Accounts
receivable
|
$
625.0
|
|
$
683.0
|
|
$
579.2
|
|
Short-term contract
assets
|
59.1
|
|
56.6
|
|
64.1
|
|
Inventory
|
1,247.5
|
|
1,353.9
|
|
1,195.7
|
|
Accounts
payable
|
(524.8)
|
|
(435.0)
|
|
(553.3)
|
|
Short-term contract
liabilities
|
(163.6)
|
|
(110.2)
|
|
(149.1)
|
|
Subtotal
|
1,243.2
|
|
1,548.3
|
|
1,136.6
|
|
|
|
|
|
|
|
|
Allowance for doubtful
accounts
|
3.2
|
|
3.7
|
|
7.7
|
|
Inventory
reserves
|
75.5
|
|
85.1
|
|
70.9
|
|
Managed working
capital
|
$
1,321.9
|
|
$
1,637.1
|
|
$
1,215.2
|
|
|
|
|
|
|
|
|
Annualized prior
3 months sales
|
$
4,255.8
|
|
$
4,102.6
|
|
$
4,041.9
|
|
|
|
|
|
|
|
|
Managed working capital
as a
|
|
|
|
|
|
|
% of annualized
sales
|
31.1 %
|
|
39.9 %
|
|
30.1 %
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Change in managed
working capital:
|
|
|
|
|
|
|
Year-to-date
2023
|
$
106.7
|
|
|
|
|
|
Q4
2023
|
$
(315.2)
|
|
|
|
|
|
|
|
|
|
|
|
|
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SOURCE ATI