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RTI International Metals Reports Strong Third Quarter Results

Conference Call Information To participate in today's 10:00 a.m. Eastern Time conference call, please dial (USA/Canada) 800-446-2782 or (International) 847-413-3235 several minutes prior to the start time and specify the RTI International Metals' Conference Call.

Replay Information Replay of the call will be available one hour after the conference ends and remains accessible until Wednesday, November 14, 2012. To listen to the replay, dial (USA/Canada) 888-843-7419 or (International) 630-652-3042 and enter conference pass code 3357 5679#.

Forward Looking Statement All statements in this release relating to matters that are not historical facts are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are subject to risks and uncertainties that could cause actual results to differ from those projected, anticipated or implied. These risks and uncertainties include, but are not limited to, global economic and political uncertainties, the concentration of our revenue within the commercial aerospace and defense industries, actual build-rates, production schedules and titanium content per aircraft for commercial and military aerospace programs, the successful completion and integration of completed acquisitions, military spending generally and in particular, demand from the Joint Strike Fighter program, the impact from Boeing 787 production delays, the competitive nature of the markets for specialty metals, the ability of RTI to obtain adequate raw materials, the successful completion of RTI’s capital expansion projects, and other risks and uncertainties described and included in RTI’s filings with the Securities and Exchange Commission, including its Annual Report on Form 10-K for the year ended December 31, 2011, and the exhibits attached thereto. Actual results can differ materially from those forecasted or expected. The information contained in this release is qualified by and should be read in conjunction with the statements and notes filed with the Securities and Exchange Commission on Forms 10-K and 10-Q, as may be amended from time to time. The forward-looking statements in this document are intended to be subject to the safe harbor protection provided by Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. RTI undertakes no obligation to update or revise any forward-looking statements.

RTI International Company Description RTI International Metals, Inc., headquartered in Pittsburgh, specializes in advanced titanium, meeting the requirements of the world's most technologically sophisticated applications in aerospace, defense, propulsion, medical device, energy, industrial, and chemical markets. For over 60 years, RTI has been taking titanium further through advanced manufacturing, engineering, machining, and forming processes. RTI delivers titanium mill products, extruded shapes, form-ready parts, and highly engineered components through our downstream integrated supply chain. RTI has locations in the United States, Canada, Europe, and Asia.

 
 

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations

(Unaudited)

(In thousands, except share and per share amounts)

               
 
Three Months Ended Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
 
Net sales $ 189,075 $ 143,671 $ 542,202 $ 387,734
Cost and expenses:
Cost of sales 151,128 118,665 432,054 312,134
Selling, general, and administrative expenses 22,434 16,388 67,514 51,464

Research, technical, and product development expenses

1,012 925 3,181 2,447
Asset and asset-related charges (income)   1,617     -     1,617     (1,501 )
Operating income 12,884 7,693 37,836 23,190
Other income (expense), net 32 198 334 (238 )
Interest income 18 331 133 911
Interest expense   (4,708 )   (4,173 )   (13,195 )   (12,723 )
 
Income before income taxes 8,226 4,049 25,108 11,140
Provision for income taxes   2,601     1,982     8,695     4,603  
Net income $ 5,625   $ 2,067   $ 16,413   $ 6,537  
 
Earnings per share:
Basic $ 0.19   $ 0.07   $ 0.54   $ 0.22  
Diluted $ 0.19   $ 0.07   $ 0.54   $ 0.22  
 
Weighted-average shares outstanding:
Basic   30,137,187     30,025,607     30,117,204     30,013,464  
Diluted   30,247,372     30,251,411     30,232,304    

30,278,456

 
 

 
 

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share and per share amounts)

               
 
September 30, December 31,

ASSETS

2012 2011
Current assets:
Cash and cash equivalents $ 73,389 $ 156,842
Short-term investments 3,998 164,255
Receivables, less allowance for doubtful accounts of $946 and $872 109,273 89,359
Inventories, net 378,218 275,059
Deferred income taxes 19,644 18,674
Other current assets   10,725     9,932  
Total current assets 595,247 714,121
Property, plant, and equipment, net 367,818 289,434
Marketable securities - 12,683
Goodwill 138,247 55,864
Other intangible assets, net 57,664 22,576
Deferred income taxes 32,197 27,424
Other noncurrent assets   5,113     5,173  
Total assets $ 1,196,286   $ 1,127,275  
 

LIABILITIES AND SHAREHOLDERS' EQUITY

Current liabilities:
Accounts payable $ 70,079 $ 59,591
Accrued wages and other employee costs 29,730 27,260
Unearned revenues 30,451 26,027
Other accrued liabilities   27,458     20,085  
Total current liabilities 157,718 132,963
Long-term debt 196,079 186,981
Liability for post-retirement benefits 42,220 41,388
Liability for pension benefits 2,555 20,830
Deferred income taxes 38,731 13,606
Other noncurrent liabilities   8,908     8,755  
Total liabilities   446,211     404,523  
Commitments and Contingencies
Shareholders’ equity:
Common stock, $0.01 par value; 50,000,000 shares authorized; 31,106,934 and
30,948,209 shares issued; 30,324,359 and 30,198,780 shares outstanding 311 309
Additional paid-in capital 483,156 479,245
Treasury stock, at cost; 782,575 and 749,429 shares (18,399 ) (17,657 )
Accumulated other comprehensive loss (31,472 ) (39,211 )
Retained earnings   316,479     300,066  
Total shareholders’ equity   750,075     722,752  
Total liabilities and shareholders’ equity $ 1,196,286   $ 1,127,275  
 

 
 

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)

             
 
Nine Months Ended
September 30,
2012     2011
Cash used in operating activities (including depreciation and
amortization of $29,405 and $16,697) $ (26,273 ) $ (13,507 )
 
Cash used in investing activities (1) (57,918 ) (173,346 )
 
Cash provided by (used in) financing activities   (850 )   207  
 
Effect of exchange rate changes on cash and cash equivalents   1,588     (564 )
 
Decrease in cash and cash equivalents (83,453 ) (187,210 )
Cash and cash equivalents at beginning of period   156,842     376,951  
Cash and cash equivalents at end of period $ 73,389   $ 189,741  
 

(1)

   

Includes cash used for the purchase of RTI Remmele Engineering, Inc. of $182,555 and net cash provided by the sale of available-for-sale investments of $172,772 in the current year compared to net purchases of investments of $147,392 in the prior year.

 

 
 

RTI INTERNATIONAL METALS, INC. AND SUBSIDIARIES

Selected Operating Segment Information

(Unaudited)

(In thousands)

                   
 
Three Months Ended Nine Months Ended
September 30, September 30,
2012   2011 2012   2011
Net sales:
Titanium Group $ 42,806 $ 45,028 $ 120,034 $ 116,983
Intersegment sales   42,968     42,709     141,340     114,677  
Total Titanium Group sales 85,774 87,737 261,374 231,660
 
Fabrication Group 87,931 40,220 234,002 110,474
Intersegment sales   20,144     13,916     62,539     42,470  
Total Fabrication Group sales 108,075 54,136 296,541 152,944
 
Distribution Group 58,338 58,423 188,166 160,277
Intersegment sales   972     255     2,704     1,056  
Total Distribution Group sales 59,310 58,678 190,870 161,333
 
Eliminations   64,084     56,880     206,583     158,203  
Total consolidated net sales $ 189,075   $ 143,671   $ 542,202   $ 387,734  
 
Operating income (loss):
Titanium Group before corporate allocations $ 4,632 $ 7,366 $ 25,057 $ 30,475
Corporate allocations   (2,669 )   (2,428 )   (9,111 )   (7,616 )
Total Titanium Group operating income 1,963 4,938 15,946 22,859
 
Fabrication Group before corporate allocations 9,696 1,647 18,988 1,841
Corporate allocations   (3,619 )   (3,146 )   (10,543 )   (9,870 )
Total Fabrication Group operating income (loss) 6,077 (1,499 ) 8,445 (8,029 )
 
Distribution Group before corporate allocations 6,645 6,139 19,441 14,273
Corporate allocations   (1,801 )   (1,885 )   (5,996 )   (5,913 )
Total Distribution Group operating income   4,844     4,254     13,445     8,360  
 
Total consolidated operating income $ 12,884   $ 7,693   $ 37,836   $ 23,190  
 




Stock quotes in this article: RTI 

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