Company Quick10K Filing
Timkensteel
Price6.41 EPS-1
Shares45 P/E-6
MCap287 P/FCF12
Net Debt-18 EBIT-34
TEV269 TEV/EBIT-8
TTM 2019-09-30, in MM, except price, ratios
10-Q 2020-06-30 Filed 2020-08-06
10-Q 2020-03-31 Filed 2020-05-07
10-K 2019-12-31 Filed 2020-02-25
10-Q 2019-09-30 Filed 2019-11-06
10-Q 2019-06-30 Filed 2019-08-01
10-Q 2019-03-31 Filed 2019-05-02
10-K 2018-12-31 Filed 2019-02-20
10-Q 2018-09-30 Filed 2018-10-25
10-Q 2018-06-30 Filed 2018-07-26
10-Q 2018-03-31 Filed 2018-04-26
10-K 2017-12-31 Filed 2018-02-20
10-Q 2017-09-30 Filed 2017-10-26
10-Q 2017-06-30 Filed 2017-08-01
10-Q 2017-03-31 Filed 2017-04-27
10-K 2016-12-31 Filed 2017-03-16
10-Q 2016-09-30 Filed 2016-10-27
10-Q 2016-06-30 Filed 2016-08-04
10-Q 2016-03-31 Filed 2016-05-04
10-K 2015-12-31 Filed 2016-02-29
10-Q 2015-09-30 Filed 2015-11-13
10-Q 2015-06-30 Filed 2015-08-13
10-Q 2015-03-31 Filed 2015-05-11
10-K 2014-12-31 Filed 2015-03-02
10-Q 2014-09-30 Filed 2014-11-13
10-Q 2014-06-30 Filed 2014-08-14
8-K 2020-08-06 Earnings, Exhibits
8-K 2020-05-07
8-K 2020-05-06
8-K 2020-02-20
8-K 2019-11-19
8-K 2019-11-15
8-K 2019-11-06
8-K 2019-10-17
8-K 2019-10-08
8-K 2019-08-23
8-K 2019-08-12
8-K 2019-08-01
8-K 2019-07-08
8-K 2019-05-09
8-K 2019-05-02
8-K 2019-02-20
8-K 2018-10-25
8-K 2018-09-20
8-K 2018-08-09
8-K 2018-07-26
8-K 2018-04-27
8-K 2018-04-26
8-K 2018-01-31
8-K 2018-01-25

TMST 10Q Quarterly Report

Part I. Financial Information
Item 1. Financial Statements
Note 1 - Basis of Presentation
Note 2 - Recent Accounting Pronouncements
Note 3 - Revenue Recognition
Note 4 - Restructuring Charges
Note 5 - Disposition of Non - Core Assets
Note 6 - Other Expense (Income), Net
Note 7 - Income Tax Provision
Note 8 - Earnings (Loss) per Share
Note 9 - Inventories
Note 10 - Financing Arrangements
Note 11 - Retirement and Postretirement Plans
Note 12 - Stock - Based Compensation
Note 13 - Accumulated Other Comprehensive Income (Loss)
Note 14 - Contingencies
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Item 4. Controls and Procedures
Part II. Other Information
Item 1. Legal Proceedings
Item 1A. Risk Factors
Item 6. Exhibits
EX-10.1 tmst-ex101_289.htm
EX-31.1 tmst-ex311_6.htm
EX-31.2 tmst-ex312_9.htm
EX-32.1 tmst-ex321_7.htm

Timkensteel Earnings 2020-06-30

Balance SheetIncome StatementCash Flow
1.51.20.90.60.30.02014201620182020
Assets, Equity
0.50.40.30.10.0-0.12014201620182020
Rev, G Profit, Net Income
0.10.10.0-0.0-0.1-0.12014201620182020
Ops, Inv, Fin

tmst-10q_20200630.htm
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Table of Contents

 

 

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

 

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2020

OR

TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from             to            

Commission file number: 1-36313

 

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)

 

330.471.7000

(Registrant’s telephone number, including area code) 

 

Securities registered pursuant to Section 12(b) of the Securities Exchange Act of 1934:

 

Title of each class

 

Trading symbol

 

Name of exchange in which registered

Common shares

 

TMST

 

New York Stock Exchange

 

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes     No 

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes     No  

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act

 

Large accelerated filer

 

 

 

Accelerated filer

 

 

 

 

 

 

 

Non-accelerated filer

 

 

 

Smaller reporting company

 

 

 

 

 

 

 

 

 

 

 

 

Emerging growth company

 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial reporting accounting standards provided pursuant to Section 13(a) of the Exchange Act.   

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes    No 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

Class

 

Outstanding at July 31, 2020

Common Shares, without par value

 

45,036,324

 

 

 

 


Table of Contents

 

TimkenSteel Corporation

Table of Contents

 

 

 

PAGE

PART I. Financial Information

3

Item 1.

Financial Statements

3

 

Consolidated Statements of Operations (Unaudited)

3

 

Consolidated Statements of Comprehensive Income (Loss) (Unaudited)

4

 

Consolidated Balance Sheets (Unaudited)

5

 

Consolidated Statements of Shareholders’ Equity (Unaudited)

6

 

Consolidated Statements of Cash Flows (Unaudited)

7

 

Notes to Unaudited Consolidated Financial Statements

8

Item 2.

Management’s Discussion and Analysis of Financial Condition and Results of Operations

16

Item 3.

Quantitative and Qualitative Disclosures about Market Risk

26

Item 4.

Controls and Procedures

26

PART II. Other Information

28

Item 1.

Legal Proceedings

28

Item 1A.

Risk Factors

28

Item 6.

Exhibits

29

 

Signatures

30

 

2


Table of Contents

 

PART I. FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

TimkenSteel Corporation

Consolidated Statements of Operations (Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(Dollars in millions, except per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

154.0

 

 

$

336.7

 

 

$

413.6

 

 

$

707.7

 

Cost of products sold

 

 

158.0

 

 

 

321.9

 

 

 

409.8

 

 

 

664.5

 

Gross Profit

 

 

(4.0

)

 

 

14.8

 

 

 

3.8

 

 

 

43.2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general and administrative expenses

 

 

16.8

 

 

 

20.2

 

 

 

40.2

 

 

 

43.5

 

Restructuring charges

 

 

0.3

 

 

 

3.6

 

 

 

0.9

 

 

 

3.6

 

Impairment charges and loss (gain) on sale or asset disposals

 

 

(0.9

)

 

 

1.8

 

 

 

(3.2

)

 

 

1.8

 

Interest expense

 

 

3.0

 

 

 

4.2

 

 

 

6.2

 

 

 

8.4

 

Other expense (income), net

 

 

(8.1

)

 

 

(0.2

)

 

 

(5.4

)

 

 

(2.9

)

Income (Loss) Before Income Taxes

 

 

(15.1

)

 

 

(14.8

)

 

 

(34.9

)

 

 

(11.2

)

Provision (benefit) for income taxes

 

 

0.2

 

 

 

(2.9

)

 

 

0.3

 

 

 

(2.8

)

Net Income (Loss)

 

$

(15.3

)

 

$

(11.9

)

 

$

(35.2

)

 

$

(8.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic earnings (loss) per share

 

$

(0.34

)

 

$

(0.27

)

 

$

(0.78

)

 

$

(0.19

)

Diluted earnings (loss) per share

 

$

(0.34

)

 

$

(0.27

)

 

$

(0.78

)

 

$

(0.19

)

See accompanying Notes to the unaudited Consolidated Financial Statements.

3


Table of Contents

 

TimkenSteel Corporation

Consolidated Statement of Comprehensive Income (Loss) (Unaudited)

 

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

(Dollars in millions)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(15.3

)

 

$

(11.9

)

 

$

(35.2

)

 

$

(8.4

)

Other comprehensive income (loss), net of tax:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Foreign currency translation adjustments

 

 

0.1

 

 

 

(0.6

)

 

 

(1.7

)

 

 

(0.2

)

Pension and postretirement liability adjustments

 

 

(1.4

)

 

 

66.3

 

 

 

(2.5

)

 

 

66.4

 

Other comprehensive income (loss), net of tax

 

 

(1.3

)

 

 

65.7

 

 

 

(4.2

)

 

 

66.2

 

Comprehensive Income (Loss), net of tax

 

$

(16.6

)

 

$

53.8

 

 

$

(39.4

)

 

$

57.8

 

See accompanying Notes to the unaudited Consolidated Financial Statements.

4


Table of Contents

 

TimkenSteel Corporation

Consolidated Balance Sheets (Unaudited)

 

 

 

June 30,

2020

 

 

December 31,

2019

 

(Dollars in millions)

 

 

 

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

Current Assets

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

75.5

 

 

$

27.1

 

Accounts receivable, net of allowances (2020 - $1.7 million; 2019 - $1.5 million)

 

 

63.6

 

 

 

77.5

 

Inventories, net

 

 

206.4

 

 

 

281.9

 

Deferred charges and prepaid expenses

 

 

1.9

 

 

 

3.3

 

Assets held for sale

 

 

2.1

 

 

 

4.1

 

Other current assets

 

 

5.6

 

 

 

7.8

 

Total Current Assets

 

 

355.1

 

 

 

401.7

 

 

 

 

 

 

 

 

 

 

Property, plant and equipment, net

 

 

595.4

 

 

 

626.4

 

Operating lease right-of-use assets

 

 

18.5

 

 

 

14.3

 

Pension assets

 

 

20.4

 

 

 

25.2

 

Intangible assets, net

 

 

11.2

 

 

 

14.3

 

Other non-current assets

 

 

3.1

 

 

 

3.3

 

Total Assets

 

$

1,003.7

 

 

$

1,085.2

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

 

 

 

Current Liabilities

 

 

 

 

 

 

 

 

Accounts payable

 

$

48.1

 

 

$

69.3

 

Salaries, wages and benefits

 

 

19.4

 

 

 

13.9

 

Accrued pension and postretirement costs

 

 

3.0

 

 

 

3.0

 

Current operating lease liabilities

 

 

7.0

 

 

 

6.2

 

Convertible notes, net

 

 

81.0

 

 

 

 

Other current liabilities

 

 

11.4

 

 

 

19.9

 

Total Current Liabilities

 

 

169.9

 

 

 

112.3

 

 

 

 

 

 

 

 

 

 

Convertible notes, net

 

 

 

 

 

78.6

 

Credit Agreement

 

 

60.0

 

 

 

90.0

 

Non-current operating lease liabilities

 

 

11.5

 

 

 

8.2

 

Accrued pension and postretirement costs

 

 

223.0

 

 

 

222.1

 

Deferred income taxes

 

 

0.9

 

 

 

0.9

 

Other non-current liabilities

 

 

11.4

 

 

 

10.0

 

Total Liabilities

 

 

476.7

 

 

 

522.1

 

 

 

 

 

 

 

 

 

 

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 2020 and 2019 - 45.7 million shares

 

 

 

 

 

 

Additional paid-in capital

 

 

840.7

 

 

 

844.8

 

Retained deficit

 

 

(336.7

)

 

 

(301.5

)

Treasury shares - 2020 - 0.7 million; 2019 - 0.9 million

 

 

(17.5

)

 

 

(24.9

)

Accumulated other comprehensive income (loss)

 

 

40.5

 

 

 

44.7

 

Total Shareholders’ Equity

 

 

527.0

 

 

 

563.1

 

Total Liabilities and Shareholders’ Equity

 

$

1,003.7

 

 

$

1,085.2

 

See accompanying Notes to the unaudited Consolidated Financial Statements.

5


Table of Contents

 

TimkenSteel Corporation

Consolidated Statements of Shareholders’ Equity (Unaudited)

 

(Dollars in millions)

 

Common

Shares

Outstanding

 

 

Additional

Paid-in

Capital

 

 

Retained

Deficit

 

 

Treasury

Shares

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Total

 

Balance at December 31, 2019

 

 

44,820,153

 

 

$

844.8

 

 

$

(301.5

)

 

$

(24.9

)

 

$

44.7

 

 

$

563.1

 

Net income (loss)

 

 

 

 

 

 

 

 

(19.9

)

 

 

 

 

 

 

 

 

(19.9

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(2.9

)

 

 

(2.9

)

Stock-based compensation expense

 

 

 

 

 

2.0

 

 

 

 

 

 

 

 

 

 

 

 

2.0

 

Issuance of treasury shares

 

 

215,708

 

 

 

(5.7

)

 

 

 

 

 

5.7

 

 

 

 

 

 

 

Shares surrendered for taxes

 

 

(70,033

)

 

 

 

 

 

 

 

 

(0.2

)

 

 

 

 

 

(0.2

)

Balance at March 31, 2020

 

 

44,965,828

 

 

$

841.1

 

 

$

(321.4

)

 

$

(19.4

)

 

$

41.8

 

 

$

542.1

 

Net income (loss)

 

 

 

 

 

 

 

 

(15.3

)

 

 

 

 

 

 

 

 

(15.3

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1.3

)

 

 

(1.3

)

Stock-based compensation expense

 

 

 

 

 

1.6

 

 

 

 

 

 

 

 

 

 

 

 

1.6

 

Issuance of treasury shares

 

 

75,689

 

 

 

(2.0

)

 

 

 

 

 

2.0

 

 

 

 

 

 

 

Shares surrendered for taxes

 

 

(5,341

)

 

 

 

 

 

 

 

 

(0.1

)

 

 

 

 

 

(0.1

)

Balance at June 30, 2020

 

 

45,036,176

 

 

$

840.7

 

 

$

(336.7

)

 

$

(17.5

)

 

$

40.5

 

 

$

527.0

 

 

 

 

Common

Shares

Outstanding

 

 

Additional

Paid-in

Capital

 

 

Retained

Deficit

 

 

Treasury

Shares

 

 

Accumulated

Other

Comprehensive

Income (Loss)

 

 

Total

 

Balance at December 31, 2018

 

 

44,584,668

 

 

$

846.3

 

 

$

(191.5

)

 

$

(33.0

)

 

$

(8.9

)

 

$

612.9

 

Net income (loss)

 

 

 

 

 

 

 

 

3.5

 

 

 

 

 

 

 

 

 

3.5

 

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

0.5

 

 

 

0.5

 

Stock-based compensation expense

 

 

 

 

 

2.2

 

 

 

 

 

 

 

 

 

 

 

 

2.2

 

Stock option activity

 

 

 

 

 

0.2

 

 

 

 

 

 

 

 

 

 

 

 

0.2

 

Issuance of treasury shares

 

 

261,130

 

 

 

(7.5

)

 

 

 

 

 

7.5

 

 

 

 

 

 

 

Shares surrendered for taxes

 

 

(79,889

)

 

 

 

 

 

 

 

 

(1.0

)

 

 

 

 

 

(1.0

)

Balance at March 31, 2019

 

 

44,765,909

 

 

$

841.2

 

 

$

(188.0

)

 

$

(26.5

)

 

$

(8.4

)

 

$

618.3

 

Net income (loss)

 

 

 

 

 

 

 

 

(11.9

)

 

 

 

 

 

 

 

$

(11.9

)

Other comprehensive income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

65.7

 

 

 

65.7

 

Stock-based compensation expense

 

 

 

 

 

1.6

 

 

 

 

 

 

 

 

 

 

 

 

1.6

 

Stock option activity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Issuance of treasury shares

 

 

50,185

 

 

 

(1.4

)

 

 

 

 

 

1.4

 

 

 

 

 

 

 

Balance at June 30, 2019

 

 

44,816,094

 

 

$

841.4

 

 

$

(199.9

)

 

$

(25.1

)

 

$

57.3

 

 

$

673.7

 

See accompanying Notes to the unaudited Consolidated Financial Statements.

6


Table of Contents

 

TimkenSteel Corporation

Consolidated Statements of Cash Flows (Unaudited)

 

 

 

Six Months Ended June 30,

 

 

 

2020

 

 

2019

 

(Dollars in millions)

 

 

 

 

 

 

 

 

CASH PROVIDED (USED)

 

 

 

 

 

 

 

 

Operating Activities

 

 

 

 

 

 

 

 

Net income (loss)

 

$

(35.2

)

 

$

(8.4

)

Adjustments to reconcile net income (loss) to net cash provided (used) by operating activities:

 

 

 

 

 

 

 

 

Depreciation and amortization

 

 

35.4

 

 

 

35.7

 

Amortization of deferred financing fees and debt discount

 

 

2.7

 

 

 

2.5

 

Impairment charges and loss (gain) on sale or disposal of assets

 

 

(3.2

)

 

 

1.8

 

Deferred income taxes

 

 

0.3

 

 

 

(0.2

)

Stock-based compensation expense

 

 

3.6

 

 

 

3.8

 

Pension and postretirement expense, net

 

 

4.9

 

 

 

3.3

 

Pension and postretirement contributions and payments

 

 

(3.2

)

 

 

(3.5

)

Changes in operating assets and liabilities:

 

 

 

 

 

 

 

 

Accounts receivable, net

 

 

13.9

 

 

 

17.0

 

Inventories, net

 

 

75.5

 

 

 

3.3

 

Accounts payable

 

 

(17.2

)

 

 

(50.3

)

Other accrued expenses

 

 

(2.0

)

 

 

(22.3

)

Deferred charges and prepaid expenses

 

 

1.4

 

 

 

0.9

 

Other, net

 

 

3.0

 

 

 

(1.2

)

Net Cash Provided (Used) by Operating Activities

 

 

79.9

 

 

 

(17.6

)