We could not find any results for:
Make sure your spelling is correct or try broadening your search.
Share Name | Share Symbol | Market | Type |
---|---|---|---|
TimkenSteel Corporation | NYSE:TMST | NYSE | Common Stock |
Price Change | % Change | Share Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|
0.00 | 0.00% | 20.40 | 0 | 01:00:00 |
|
FORM 10-Q
|
|
ý
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
o
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
TIMKENSTEEL CORPORATION
(Exact name of registrant as specified in its charter)
|
|
Ohio
|
|
46-4024951
|
(State or other jurisdiction of
incorporation or organization)
|
|
(I.R.S. Employer
Identification No.)
|
|
|
|
1835 Dueber Avenue SW, Canton, OH
|
|
44706
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Large accelerated filer
|
|
o
|
|
|
Accelerated filer
|
ý
|
|
|
|
|
|
|
|
Non-accelerated filer
|
|
o
|
(Do not check if smaller reporting company)
|
|
Smaller reporting company
|
o
|
|
|
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
o
|
|
Class
|
|
Outstanding at July 14, 2017
|
|
|
Common Shares, without par value
|
|
44,424,987
|
|
|
|
PAGE
|
Item 1.
|
||
|
||
|
Consolidated Statements of Comprehensive Income (Loss) (Unaudited)
|
|
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 6.
|
||
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
(Dollars in millions, except per share data)
|
|
|
|
|
|
|
|
||||||||
Net sales
|
|
$339.3
|
|
|
|
$223.1
|
|
|
|
$648.7
|
|
|
|
$441.0
|
|
Cost of products sold
|
315.5
|
|
|
210.8
|
|
|
607.9
|
|
|
423.3
|
|
||||
Gross Profit
|
23.8
|
|
|
12.3
|
|
|
40.8
|
|
|
17.7
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Selling, general and administrative expenses
|
22.3
|
|
|
22.9
|
|
|
45.2
|
|
|
45.0
|
|
||||
Restructuring charges
|
—
|
|
|
0.3
|
|
|
—
|
|
|
0.3
|
|
||||
Operating Income (Loss)
|
1.5
|
|
|
(10.9
|
)
|
|
(4.4
|
)
|
|
(27.6
|
)
|
||||
|
|
|
|
|
|
|
|
||||||||
Interest expense
|
3.7
|
|
|
2.1
|
|
|
7.3
|
|
|
4.1
|
|
||||
Other (income) expense, net
|
(4.3
|
)
|
|
(2.6
|
)
|
|
(8.8
|
)
|
|
(5.2
|
)
|
||||
Income (Loss) Before Income Taxes
|
2.1
|
|
|
(10.4
|
)
|
|
(2.9
|
)
|
|
(26.5
|
)
|
||||
Provision (benefit) for income taxes
|
0.8
|
|
|
(3.8
|
)
|
|
1.1
|
|
|
(10.2
|
)
|
||||
Net Income (Loss)
|
|
$1.3
|
|
|
|
($6.6
|
)
|
|
|
($4.0
|
)
|
|
|
($16.3
|
)
|
|
|
|
|
|
|
|
|
||||||||
Per Share Data:
|
|
|
|
|
|
|
|
||||||||
Basic income (loss) per share
|
|
$0.03
|
|
|
|
($0.15
|
)
|
|
|
($0.09
|
)
|
|
|
($0.37
|
)
|
Diluted income (loss) per share
|
|
$0.03
|
|
|
|
($0.15
|
)
|
|
|
($0.09
|
)
|
|
|
($0.37
|
)
|
|
|
|
|
|
|
|
|
||||||||
Dividends per share
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
|
$—
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
(Dollars in millions)
|
|
|
|
|
|
|
|
||||||||
Net Income (Loss)
|
|
$1.3
|
|
|
|
($6.6
|
)
|
|
|
($4.0
|
)
|
|
|
($16.3
|
)
|
Other comprehensive income, net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustments
|
0.6
|
|
|
(1.8
|
)
|
|
0.8
|
|
|
(2.3
|
)
|
||||
Pension and postretirement liability adjustments
|
—
|
|
|
4.6
|
|
|
0.3
|
|
|
5.6
|
|
||||
Other comprehensive income, net of tax
|
0.6
|
|
|
2.8
|
|
|
1.1
|
|
|
3.3
|
|
||||
Comprehensive Income (Loss), net of tax
|
|
$1.9
|
|
|
|
($3.8
|
)
|
|
|
($2.9
|
)
|
|
|
($13.0
|
)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
(Dollars in millions)
|
|
|
|
||||
ASSETS
|
|
|
|
||||
Current Assets
|
|
|
|
||||
Cash and cash equivalents
|
|
$36.2
|
|
|
|
$25.6
|
|
Accounts receivable, net of allowances (2017 - $2.7 million; 2016 - $2.1 million)
|
153.5
|
|
|
91.6
|
|
||
Inventories, net
|
199.3
|
|
|
164.2
|
|
||
Deferred charges and prepaid expenses
|
1.8
|
|
|
2.8
|
|
||
Other current assets
|
6.2
|
|
|
6.2
|
|
||
Total Current Assets
|
397.0
|
|
|
290.4
|
|
||
|
|
|
|
||||
Property, Plant and Equipment, Net
|
713.7
|
|
|
741.9
|
|
||
|
|
|
|
||||
Other Assets
|
|
|
|
||||
Pension assets
|
9.3
|
|
|
6.2
|
|
||
Intangible assets, net
|
22.2
|
|
|
25.0
|
|
||
Other non-current assets
|
6.2
|
|
|
6.4
|
|
||
Total Other Assets
|
37.7
|
|
|
37.6
|
|
||
Total Assets
|
|
$1,148.4
|
|
|
|
$1,069.9
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current Liabilities
|
|
|
|
||||
Accounts payable, trade
|
|
$130.8
|
|
|
|
$87.0
|
|
Salaries, wages and benefits
|
25.1
|
|
|
20.3
|
|
||
Accrued pension and postretirement costs
|
3.0
|
|
|
3.0
|
|
||
Other current liabilities
|
17.9
|
|
|
20.4
|
|
||
Total Current Liabilities
|
176.8
|
|
|
130.7
|
|
||
|
|
|
|
||||
Non-Current Liabilities
|
|
|
|
||||
Convertible notes, net
|
68.2
|
|
|
66.4
|
|
||
Other long-term debt
|
100.2
|
|
|
70.2
|
|
||
Accrued pension and postretirement costs
|
193.4
|
|
|
192.1
|
|
||
Deferred income taxes
|
0.2
|
|
|
—
|
|
||
Other non-current liabilities
|
12.7
|
|
|
13.1
|
|
||
Total Non-Current Liabilities
|
374.7
|
|
|
341.8
|
|
||
|
|
|
|
||||
Shareholders’ Equity
|
|
|
|
||||
Preferred shares, without par value; authorized 10.0 million shares, none issued
|
—
|
|
|
—
|
|
||
Common shares, without par value; authorized 200.0 million shares;
issued 2017 and 2016 - 45.7 million shares
|
—
|
|
|
—
|
|
||
Additional paid-in capital
|
841.6
|
|
|
845.6
|
|
||
Retained deficit
|
(198.2
|
)
|
|
(193.9
|
)
|
||
Treasury shares - 2017 - 1.3 million; 2016 - 1.5 million
|
(38.2
|
)
|
|
(44.9
|
)
|
||
Accumulated other comprehensive loss
|
(8.3
|
)
|
|
(9.4
|
)
|
||
Total Shareholders’ Equity
|
596.9
|
|
|
597.4
|
|
||
Total Liabilities and Shareholders’ Equity
|
|
$1,148.4
|
|
|
|
$1,069.9
|
|
|
Six Months Ended
June 30,
|
||||||
|
2017
|
|
2016
|
||||
(Dollars in millions)
|
|
|
|
||||
CASH PROVIDED (USED)
|
|
|
|
||||
Operating Activities
|
|
|
|
||||
Net loss
|
|
($4.0
|
)
|
|
|
($16.3
|
)
|
Adjustments to reconcile net loss to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
37.8
|
|
|
37.2
|
|
||
Amortization of deferred financing fees and debt discount
|
2.1
|
|
|
0.8
|
|
||
Impairment charges and loss on sale or disposal of assets
|
0.4
|
|
|
1.1
|
|
||
Deferred income taxes
|
0.2
|
|
|
(15.1
|
)
|
||
Stock-based compensation expense
|
3.4
|
|
|
3.0
|
|
||
Pension and postretirement expense
|
1.6
|
|
|
2.4
|
|
||
Pension and postretirement contributions and payments
|
(2.7
|
)
|
|
(3.3
|
)
|
||
Reimbursement from postretirement plan assets
|
—
|
|
|
13.3
|
|
||
Changes in operating assets and liabilities:
|
|
|
|
||||
Accounts receivable, net
|
(61.9
|
)
|
|
(16.5
|
)
|
||
Inventories, net
|
(35.1
|
)
|
|
16.5
|
|
||
Accounts payable, trade
|
43.8
|
|
|
23.1
|
|
||
Other accrued expenses
|
1.5
|
|
|
(13.9
|
)
|
||
Deferred charges and prepaid expenses
|
1.0
|
|
|
9.7
|
|
||
Other, net
|
0.3
|
|
|
6.0
|
|
||
Net Cash (Used) Provided by Operating Activities
|
(11.6
|
)
|
|
48.0
|
|
||
|
|
|
|
||||
Investing Activities
|
|
|
|
||||
Capital expenditures
|
(6.8
|
)
|
|
(15.2
|
)
|
||
Net Cash Used by Investing Activities
|
(6.8
|
)
|
|
(15.2
|
)
|
||
|
|
|
|
||||
Financing Activities
|
|
|
|
||||
Proceeds from exercise of stock options
|
0.2
|
|
|
—
|
|
||
Shares surrendered for employee taxes on stock compensation
|
(1.2
|
)
|
|
—
|
|
||
Credit agreement repayments
|
—
|
|
|
(120.0
|
)
|
||
Credit agreement borrowings
|
30.0
|
|
|
—
|
|
||
Debt issuance costs
|
—
|
|
|
(4.3
|
)
|
||
Proceeds from issuance of convertible notes
|
—
|
|
|
86.3
|
|
||
Net Cash Provided (Used) by Financing Activities
|
29.0
|
|
|
(38.0
|
)
|
||
Effect of exchange rate changes on cash
|
—
|
|
|
—
|
|
||
Increase (Decrease) In Cash and Cash Equivalents
|
10.6
|
|
|
(5.2
|
)
|
||
Cash and cash equivalents at beginning of period
|
25.6
|
|
|
42.4
|
|
||
Cash and Cash Equivalents at End of Period
|
|
$36.2
|
|
|
|
$37.2
|
|
Standard
|
|
|
|
2015-11
|
Inventory: Simplifying the Measurement of Inventory (Topic 330)
|
2016-15
|
Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash Payments (a Consensus of the Emerging Issues Task Force)
|
2016-16
|
Accounting for Income Taxes: Intra-Entity Transfers of Assets Other Than Inventory (Topic 740)
|
2017-07
|
Retirement Benefits: Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost (Topic 715)
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Inventories, net:
|
|
|
|
||||
Manufacturing supplies
|
|
$35.0
|
|
|
|
$37.9
|
|
Raw materials
|
25.6
|
|
|
16.2
|
|
||
Work in process
|
94.1
|
|
|
58.6
|
|
||
Finished products
|
53.0
|
|
|
59.6
|
|
||
Subtotal
|
207.7
|
|
|
172.3
|
|
||
Allowance for surplus and obsolete inventory
|
(8.4
|
)
|
|
(8.1
|
)
|
||
Total Inventories, net
|
|
$199.3
|
|
|
|
$164.2
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Property, Plant and Equipment, net:
|
|
|
|
||||
Land
|
|
$13.4
|
|
|
|
$13.3
|
|
Buildings and improvements
|
421.9
|
|
|
420.6
|
|
||
Machinery and equipment
|
1,363.1
|
|
|
1,352.0
|
|
||
Construction in progress
|
51.4
|
|
|
63.9
|
|
||
Subtotal
|
1,849.8
|
|
|
1,849.8
|
|
||
Less allowances for depreciation
|
(1,136.1
|
)
|
|
(1,107.9
|
)
|
||
Property, Plant and Equipment, net
|
|
$713.7
|
|
|
|
$741.9
|
|
|
June 30, 2017
|
|
December 31, 2016
|
||||||||||||||||||||
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
|
Gross Carrying Amount
|
|
Accumulated Amortization
|
|
Net Carrying Amount
|
||||||||||||
Intangible Assets Subject to Amortization:
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Customer relationships
|
$6.3
|
|
|
$3.9
|
|
|
|
$2.4
|
|
|
|
$6.3
|
|
|
|
$3.7
|
|
|
|
$2.6
|
|
||
Technology use
|
9.0
|
|
|
5.6
|
|
|
3.4
|
|
|
9.0
|
|
|
5.2
|
|
|
3.8
|
|
||||||
Capitalized software
|
59.1
|
|
|
42.7
|
|
|
16.4
|
|
|
58.9
|
|
|
40.3
|
|
|
18.6
|
|
||||||
Total Intangible Assets
|
|
$74.4
|
|
|
|
$52.2
|
|
|
|
$22.2
|
|
|
|
$74.2
|
|
|
|
$49.2
|
|
|
|
$25.0
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Principal
|
|
$86.3
|
|
|
|
$86.3
|
|
Less: Debt issuance costs, net of amortization
|
(1.9
|
)
|
|
(2.1
|
)
|
||
Less: Debt discount, net of amortization
|
(16.2
|
)
|
|
(17.8
|
)
|
||
Convertible notes, net
|
|
$68.2
|
|
|
|
$66.4
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
2016
|
|||||||||
Contractual interest expense
|
|
$1.3
|
|
|
|
$0.4
|
|
|
|
$2.6
|
|
|
$0.4
|
|
|
Amortization of debt issuance costs
|
0.1
|
|
|
0.1
|
|
0.1
|
|
0.2
|
|
0.1
|
|
||||
Amortization of debt discount
|
0.8
|
|
|
0.2
|
|
|
1.6
|
|
0.2
|
|
|||||
Total
|
|
$2.2
|
|
|
|
$0.7
|
|
|
|
$4.4
|
|
|
$0.7
|
|
|
June 30,
2017 |
|
December 31,
2016 |
||||
Variable-rate State of Ohio Water Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.84% as of June 30, 2017)
|
|
$12.2
|
|
|
|
$12.2
|
|
Variable-rate State of Ohio Air Quality Development Revenue Refunding Bonds, maturing on November 1, 2025 (0.84% as of June 30, 2017)
|
9.5
|
|
|
9.5
|
|
||
Variable-rate State of Ohio Pollution Control Revenue Refunding Bonds, maturing on June 1, 2033 (0.84% as of June 30, 2017)
|
8.5
|
|
|
8.5
|
|
||
Amended Credit Agreement, due 2019 (LIBOR plus applicable spread)
|
70.0
|
|
|
40.0
|
|
||
Total Other Long-Term Debt
|
|
$100.2
|
|
|
|
$70.2
|
|
|
Foreign Currency Translation Adjustments
|
|
Pension and Postretirement Liability Adjustments
|
|
Total
|
||||||
Balance at December 31, 2016
|
|
($7.0
|
)
|
|
|
($2.4
|
)
|
|
|
($9.4
|
)
|
Other comprehensive income before reclassifications, before income tax
|
0.8
|
|
|
—
|
|
|
0.8
|
|
|||
Amounts reclassified from accumulated other comprehensive loss, before income tax
|
—
|
|
|
0.8
|
|
|
0.8
|
|
|||
Income tax benefit
|
—
|
|
|
(0.5
|
)
|
|
(0.5
|
)
|
|||
Net current period other comprehensive income, net of income taxes
|
0.8
|
|
|
0.3
|
|
|
1.1
|
|
|||
Balance at June 30, 2017
|
|
($6.2
|
)
|
|
|
($2.1
|
)
|
|
|
($8.3
|
)
|
|
Foreign Currency Translation Adjustments
|
|
Pension and Postretirement Liability Adjustments
|
|
Total
|
||||||
Balance at December 31, 2015
|
|
($5.0
|
)
|
|
|
($2.9
|
)
|
|
|
($7.9
|
)
|
Other comprehensive (loss) income before reclassifications, before income tax
|
(2.3
|
)
|
|
—
|
|
|
(2.3
|
)
|
|||
Amounts reclassified from accumulated other comprehensive loss, before income tax
|
—
|
|
|
0.9
|
|
|
0.9
|
|
|||
Income tax benefit
|
—
|
|
|
(0.1
|
)
|
|
(0.1
|
)
|
|||
Net current period other comprehensive (loss) income, net of income taxes
|
(2.3
|
)
|
|
0.8
|
|
|
(1.5
|
)
|
|||
Balance at June 30, 2016
|
|
($7.3
|
)
|
|
|
($2.1
|
)
|
|
|
($9.4
|
)
|
|
Total
|
|
Additional Paid-in Capital
|
|
Retained Deficit
|
|
Treasury Shares
|
|
Accumulated Other Comprehensive Loss
|
||||||||||
Balance at December 31, 2016
|
|
$597.4
|
|
|
|
$845.6
|
|
|
|
($193.9
|
)
|
|
|
($44.9
|
)
|
|
|
($9.4
|
)
|
Net loss
|
(4.0
|
)
|
|
—
|
|
|
(4.0
|
)
|
|
—
|
|
|
—
|
|
|||||
Pension and postretirement adjustment, net of tax
|
0.3
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.3
|
|
|||||
Foreign currency translation adjustments
|
0.8
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
0.8
|
|
|||||
Stock-based compensation expense
|
3.4
|
|
|
3.4
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Stock option activity
|
0.2
|
|
|
0.2
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Issuance of treasury shares
|
—
|
|
|
(7.6
|
)
|
|
(0.3
|
)
|
|
7.9
|
|
|
—
|
|
|||||
Shares surrendered for taxes
|
(1.2
|
)
|
|
—
|
|
|
—
|
|
|
(1.2
|
)
|
|
—
|
|
|||||
Balance at June 30, 2017
|
|
$596.9
|
|
|
|
$841.6
|
|
|
|
($198.2
|
)
|
|
|
($38.2
|
)
|
|
|
($8.3
|
)
|
|
Three Months Ended
June 30, 2017 |
|
Three Months Ended
June 30, 2016 |
||||||||||||
Components of net periodic benefit cost:
|
Pension
|
|
Postretirement
|
|
Pension
|
|
Postretirement
|
||||||||
Service cost
|
|
$4.6
|
|
|
|
$0.4
|
|
|
|
$3.6
|
|
|
|
$0.4
|
|
Interest cost
|
12.3
|
|
|
2.1
|
|
|
13.5
|
|
|
2.4
|
|
||||
Expected return on plan assets
|
(17.7
|
)
|
|
(1.3
|
)
|
|
(17.7
|
)
|
|
(1.4
|
)
|
||||
Amortization of prior service cost
|
0.1
|
|
|
0.3
|
|
|
0.1
|
|
|
0.3
|
|
||||
Net Periodic Benefit Cost
|
|
($0.7
|
)
|
|
|
$1.5
|
|
|
|
($0.5
|
)
|
|
|
$1.7
|
|
|
Six Months Ended
June 30, 2017 |
|
Six Months Ended
June 30, 2016 |
||||||||||||
Components of net periodic benefit cost:
|
Pension
|
|
Postretirement
|
|
Pension
|
|
Postretirement
|
||||||||
Service cost
|
|
$9.2
|
|
|
|
$0.8
|
|
|
|
$7.8
|
|
|
|
$0.8
|
|
Interest cost
|
24.5
|
|
|
4.2
|
|
|
26.6
|
|
|
4.7
|
|
||||
Expected return on plan assets
|
(35.2
|
)
|
|
(2.7
|
)
|
|
(35.5
|
)
|
|
(2.9
|
)
|
||||
Amortization of prior service cost
|
0.2
|
|
|
0.6
|
|
|
0.3
|
|
|
0.6
|
|
||||
Net Periodic Benefit Cost
|
|
($1.3
|
)
|
|
|
$2.9
|
|
|
|
($0.8
|
)
|
|
|
$3.2
|
|
|
|
Three
|
|
Six
|
||||
|
|
Months ended June 30, 2016
|
||||||
Cost of products sold
|
|
|
$2.5
|
|
|
|
$5.6
|
|
Selling, general and administrative expenses
|
|
0.3
|
|
|
0.6
|
|
||
|
|
|
$2.8
|
|
|
|
$6.2
|
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income (loss) for basic and diluted earnings per share
|
|
$1.3
|
|
|
|
($6.6
|
)
|
|
|
($4.0
|
)
|
|
|
($16.3
|
)
|
|
|
|
|
|
|
|
|
||||||||
Denominator:
|
|
|
|
|
|
|
|
||||||||
Weighted average shares outstanding, basic
|
44,399,070
|
|
|
44,220,496
|
|
|
44,346,422
|
|
|
44,212,796
|
|
||||
Dilutive effect of stock-based awards
|
431,244
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||
Weighted average shares outstanding, diluted
|
44,830,314
|
|
|
44,220,496
|
|
|
44,346,422
|
|
|
44,212,796
|
|
||||
|
|
|
|
|
|
|
|
||||||||
Basic earnings (loss) per share
|
|
$0.03
|
|
|
|
($0.15
|
)
|
|
|
($0.09
|
)
|
|
|
($0.37
|
)
|
Diluted earnings (loss) per share
|
|
$0.03
|
|
|
|
($0.15
|
)
|
|
|
($0.09
|
)
|
|
|
($0.37
|
)
|
|
Three Months Ended
June 30, |
|
Six Months Ended
June 30, |
||||||||||||
|
2017
|
|
2016
|
|
2017
|
|
2016
|
||||||||
Provision (benefit) for income taxes
|
|
$0.8
|
|
|
|
($3.8
|
)
|
|
|
$1.1
|
|
|
|
($10.2
|
)
|
Effective tax rate
|
39.6
|
%
|
|
36.5
|
%
|
|
(39.1
|
)%
|
|
38.5
|
%
|
|
Six Months Ended
June 30, |
|||||
|
2017
|
2016
|
||||
Beginning Balance, January 1
|
|
$0.6
|
|
|
$0.8
|
|
Expenses
|
0.1
|
|
—
|
|
||
Payments
|
(0.1
|
)
|
(0.2
|
)
|
||
Ending Balance, June 30
|
|
$0.6
|
|
|
$0.6
|
|
|
Three Months Ended June 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Net sales
|
|
$339.3
|
|
|
|
$223.1
|
|
|
|
$116.2
|
|
|
52.1%
|
|
Net sales, excluding surcharges
|
261.7
|
|
|
199.9
|
|
|
61.8
|
|
|
30.9%
|
|
|||
Gross profit
|
23.8
|
|
|
12.3
|
|
|
11.5
|
|
|
93.5%
|
|
|||
Gross margin
|
7.0
|
%
|
|
5.5
|
%
|
|
NM
|
|
|
150 bps
|
|
|||
Selling, general and administrative expenses
|
22.3
|
|
|
22.9
|
|
|
(0.6
|
)
|
|
(2.6)%
|
|
|||
Net income (loss)
|
1.3
|
|
|
(6.6
|
)
|
|
7.9
|
|
|
(119.7)%
|
|
|||
Average scrap index per ton (30 day lag)
|
374
|
|
|
239
|
|
|
135
|
|
|
56.5%
|
|
|||
Average selling price per ton, including surcharges
|
|
$1,152
|
|
|
|
$1,176
|
|
|
|
($24
|
)
|
|
(2.0)%
|
|
Shipments (in tons)
|
294,600
|
|
|
189,671
|
|
|
104,929
|
|
|
55.3%
|
|
|||
Melt utilization
|
76
|
%
|
|
45
|
%
|
|
NM
|
|
|
31
|
pp
|
|
Six Months Ended June 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
Increase (Decrease)
|
|
% Change
|
|||||||
Net sales
|
|
$648.7
|
|
|
|
$441.0
|
|
|
|
$207.7
|
|
|
47.1%
|
|
Net sales, excluding surcharges
|
512.7
|
|
|
402.3
|
|
|
110.4
|
|
|
27.4%
|
|
|||
Gross profit
|
40.8
|
|
|
17.7
|
|
|
23.1
|
|
|
130.5%
|
|
|||
Gross margin
|
6.3
|
%
|
|
4.0
|
%
|
|
NM
|
|
|
230 bps
|
|
|||
Selling, general and administrative expenses
|
45.2
|
|
|
45.0
|
|
|
0.2
|
|
|
0.4%
|
|
|||
Net loss
|
(4.0
|
)
|
|
(16.3
|
)
|
|
12.3
|
|
|
75.5%
|
|
|||
Average scrap index per ton (30 day lag)
|
343
|
|
|
208
|
|
|
135
|
|
|
64.9%
|
|
|||
Average selling price per ton, including surcharges
|
|
$1,129
|
|
|
|
$1,173
|
|
|
|
($44
|
)
|
|
(3.8)%
|
|
Shipments (in tons)
|
574,504
|
|
|
375,823
|
|
|
198,681
|
|
|
52.9%
|
|
|||
Melt utilization
|
74
|
%
|
|
46
|
%
|
|
NM
|
|
|
28
|
pp
|
|
Three Months Ended June 30,
|
||||||||||
|
2017
|
|
2016
|
|
$ Change
|
||||||
Cash interest paid
|
|
$2.2
|
|
|
|
$0.9
|
|
|
|
$1.3
|
|
Accrued interest
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|||
Amortization of convertible notes discount and deferred financing
|
0.9
|
|
|
0.6
|
|
|
0.3
|
|
|||
Total Interest Expense
|
|
$3.7
|
|
|
|
$2.1
|
|
|
|
$1.6
|
|
|
Six Months Ended June 30,
|
||||||||||
|
2017
|
|
2016
|
|
$ Change
|
||||||
Cash interest paid
|
|
$4.6
|
|
|
|
$2.7
|
|
|
|
$1.9
|
|
Accrued interest
|
0.6
|
|
|
0.6
|
|
|
—
|
|
|||
Amortization of convertible notes discount and deferred financing
|
2.1
|
|
|
0.8
|
|
|
1.3
|
|
|||
Total Interest Expense
|
|
$7.3
|
|
|
|
$4.1
|
|
|
|
$3.2
|
|
|
Three Months Ended June 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Provision (benefit) for income taxes
|
|
$0.8
|
|
|
|
($3.8
|
)
|
|
|
($4.6
|
)
|
|
(121.1)%
|
|
Effective tax rate
|
39.6
|
%
|
|
36.5
|
%
|
|
NM
|
|
|
310 bps
|
|
|
Six Months Ended June 30,
|
|||||||||||||
|
2017
|
|
2016
|
|
$ Change
|
|
% Change
|
|||||||
Provision (benefit) for income taxes
|
|
$1.1
|
|
|
|
($10.2
|
)
|
|
|
($11.3
|
)
|
|
(110.8)%
|
|
Effective tax rate
|
(39.1
|
)%
|
|
38.5
|
%
|
|
NM
|
|
|
(7,760
|
) bps
|
Current Assets
|
June 30,
2017 |
|
December 31,
2016 |
||||
Cash and cash equivalents
|
|
$36.2
|
|
|
|
$25.6
|
|
Accounts receivable, net
|
153.5
|
|
|
91.6
|
|
||
Inventories, net
|
|
$199.3
|
|
|
|
$164.2
|
|
Deferred charges and prepaid expenses
|
1.8
|
|
|
2.8
|
|
||
Other current assets
|
6.2
|
|
|
6.2
|
|
||
Total Current Assets
|
|
$397.0
|
|
|
|
$290.4
|
|
Property, Plant and Equipment
|
June 30,
2017 |
|
December 31,
2016 |
||||
Property, plant and equipment, net
|
|
$713.7
|
|
|
|
$741.9
|
|
Other Assets
|
June 30,
2017 |
|
December 31,
2016 |
||||
Pension assets
|
|
$9.3
|
|
|
|
$6.2
|
|
Intangible assets, net
|
22.2
|
|
|
25.0
|
|
||
Other non-current assets
|
6.2
|
|
|
6.4
|
|
||
Total Other Assets
|
|
$37.7
|
|
|
|
$37.6
|
|
Liabilities and Shareholders’ Equity
|
June 30,
2017 |
|
December 31,
2016 |
||||
Current liabilities
|
|
$176.8
|
|
|
|
$130.7
|
|
Convertible notes, net
|
68.2
|
|
|
66.4
|
|
||
Other long-term debt
|
100.2
|
|
|
70.2
|
|
||
Accrued pension and postretirement costs - long-term
|
193.4
|
|
|
192.1
|
|
||
Deferred income taxes
|
0.2
|
|
|
—
|
|
||
Other non-current liabilities
|
12.7
|
|
|
13.1
|
|
||
Total shareholders’ equity
|
596.9
|
|
|
597.4
|
|
||
Total Liabilities and Shareholders’ Equity
|
|
$1,148.4
|
|
|
|
$1,069.9
|
|
|
June 30,
2017 |
December 31, 2016
|
Cash and cash equivalents
|
$36.2
|
$25.6
|
|
|
|
Amended Credit Agreement:
|
|
|
Maximum availability
|
$257.1
|
$194.4
|
Amount borrowed
|
70.0
|
40.0
|
Letter of credit obligations
|
1.6
|
1.6
|
Availability not borrowed
|
185.5
|
152.8
|
Availability block
|
33.1
|
33.1
|
Net availability
|
$152.4
|
$119.7
|
|
|
|
Total liquidity
|
$188.6
|
$145.3
|
Cash Flows
|
Six Months Ended
June 30, |
||||||
|
2017
|
|
2016
|
||||
Net cash (used) provided by operating activities
|
|
($11.6
|
)
|
|
|
$48.0
|
|
Net cash used by investing activities
|
(6.8
|
)
|
|
(15.2
|
)
|
||
Net cash provided (used) by financing activities
|
29.0
|
|
|
(38.0
|
)
|
||
Increase (Decrease) in Cash and Cash Equivalents
|
|
$10.6
|
|
|
|
($5.2
|
)
|
•
|
deterioration in world economic conditions, or in economic conditions in any of the geographic regions in which we conduct business, including additional adverse effects from global economic slowdown, terrorism or hostilities. This includes: political risks associated with the potential instability of governments and legal systems in countries in which we or our customers conduct business, and changes in currency valuations;
|
•
|
the effects of fluctuations in customer demand on sales, product mix and prices in the industries in which we operate. This includes: our ability to respond to rapid changes in customer demand; the effects of customer bankruptcies or liquidations; the impact of changes in industrial business cycles; and whether conditions of fair trade exist in the U.S. markets;
|
•
|
competitive factors, including changes in market penetration; increasing price competition by existing or new foreign and domestic competitors; the introduction of new products by existing and new competitors; and new technology that may impact the way our products are sold or distributed;
|
•
|
changes in operating costs, including the effect of changes in our manufacturing processes; changes in costs associated with varying levels of operations and manufacturing capacity; availability of raw materials and energy; our ability to mitigate the impact of fluctuations in raw materials and energy costs and the effectiveness of our surcharge mechanism; changes in the expected costs associated with product warranty claims; changes resulting from inventory management, cost reduction initiatives and different levels of customer demands; the effects of unplanned work stoppages; and changes in the cost of labor and benefits;
|
•
|
the success of our operating plans, announced programs, initiatives and capital investments (including the jumbo bloom vertical caster and advanced quench-and-temper facility); the ability to integrate acquired companies; the ability of acquired companies to achieve satisfactory operating results, including results being accretive to earnings; and our ability to maintain appropriate relations with unions that represent our associates in certain locations in order to avoid disruptions of business;
|
•
|
unanticipated litigation, claims or assessments, including claims or problems related to intellectual property, product liability or warranty, and environmental issues and taxes, among other matters;
|
•
|
the availability of financing and interest rates, which affect: our cost of funds and/or ability to raise capital; our pension obligations and investment performance; and/or customer demand and the ability of customers to obtain financing to purchase our products or equipment that contain our products; and the amount of any dividend declared by our Board of Directors on our common shares; and
|
•
|
those items identified under Risk Factors in our Annual Report on Form 10-K for the year ended
December 31, 2016
.
|
(a)
|
Disclosure Controls and Procedures
|
(b)
|
Changes in Internal Control Over Financial Reporting
|
Exhibit Number
|
|
Exhibit Description
|
12.1*
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
31.1*
|
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14 of the Exchange Act, as adopted, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2*
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14 of the Exchange Act, as adopted, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1**
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS*
|
|
XBRL Instance Document
|
101.SCH*
|
|
XBRL Taxonomy Extension Schema Document
|
101.PRE*
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.CAL*
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB*
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.DEF*
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
*
|
Filed herewith.
|
**
|
Furnished herewith.
|
|
|
TIMKENSTEEL CORPORATION
|
|
|
|
|
|
|
Date:
|
July 31, 2017
|
/s/ Christopher J. Holding
|
|
|
Christopher J. Holding
Executive Vice President and Chief Financial Officer (Principal Financial Officer) |
Exhibit Number
|
|
Exhibit Description
|
12.1
|
|
Computation of Ratio of Earnings to Fixed Charges.
|
31.1
|
|
Certification of the Chief Executive Officer pursuant to Rule 13a-14 of the Exchange Act, as adopted, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
31.2
|
|
Certification of the Chief Financial Officer pursuant to Rule 13a-14 of the Exchange Act, as adopted, pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
|
32.1
|
|
Certifications of Chief Executive Officer and Chief Financial Officer pursuant to 18 U.S.C. 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
|
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document
|
101.DEF
|
|
XBRL Taxonomy Extension Definition Linkbase Document
|
1 Year TimkenSteel Chart |
1 Month TimkenSteel Chart |
It looks like you are not logged in. Click the button below to log in and keep track of your recent history.
Support: +44 (0) 203 8794 460 | support@advfn.com
By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions