FOR IMMEDIATE RELEASE OCTOBER 21, 2002
Contact:
Richard E. Leone
Manager - Investor Relations
330-544-7622
RTI INTERNATIONAL METALS ANNOUNCES THIRD QUARTER RESULTS
Niles, Ohio – RTI International Metals, Inc., (NYSE: RTI) released results today for the third quarter of 2002.
The Company reported third quarter net income of $3.0 million, or $0.14 per share, on sales of $68.1 million. The results for the comparable 2001 period were net income of $2.3 million, or $0.11 per share, on sales of $76.0 million.
Despite weak conditions in its largest
market, commercial aerospace, the Titanium Group earned operating income of
$2.8 million on sales of $31.5 million. Titanium mill product shipments during
the quarter totaled 2.2 million pounds at an average realized price of $14.35
per pound.
Operating income for the Fabrication & Distribution Group increased over
the prior and year ago quarters to $1.8 million on sales of $36.6 million.
Timothy G. Rupert, President and CEO, said, “Third quarter results were better than expected, particularly in the Titanium Group, where the large Goro Project order that we announced in July provided more efficient operating levels at RMI Titanium Company.
“Due to worsening conditions in commercial aerospace markets, the Titanium Group will likely experience a loss over the next three months which could result in a consolidated loss for RTI in the fourth quarter.”
This news release includes certain “forward-looking statements” within the meaning
of the Private Securities Litigation Reform Act of 1995. These statements are
based on management's current expectations and are subject to uncertainty and
changes in circumstances. Actual results may differ materially from these expectations
due to changes in global, political, economic, business, market, and regulatory
factors. Other risks and uncertainties have previously been included in the
Company's filings with the Securities and Exchange Commission, copies of which
are available from the SEC or from RTI Investor Relations Department.
RTI International Metals, headquartered in Niles, Ohio, through its various
subsidiaries, manufactures and distributes titanium and specialty metal mill
products and extruded shapes, as well as engineered systems for energy-related
markets and environmental engineering services. The Company’s products are used
for aerospace, defense, industrial, and consumer applications.
NOTE: RTI International Metals, Inc. has scheduled a conference call for Tuesday,
October 22, 2002, at 11:00 a.m., Eastern Time, to discuss this press release.
Timothy G. Rupert, President and CEO; John Odle, Executive Vice President; and
Lawrence W. Jacobs, Vice President and CFO, will represent RTI. To participate
in the call, please dial toll free 800-230-1085 (United States), or 612-288-0337
(International), a few minutes prior to the start time and specify the RTI International
Metals conference call. Replay of the call will be available until midnight,
Eastern Time, on Friday, October 25, 2002, by dialing 800-475-6701 (United States),
or 320-365-3844 (International), and Access Code 655000.
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENT OF INCOME (Unaudited)
(Dollars in thousands)
QUARTER ENDED NINE MONTHS ENDED
SEPTEMBER 30, SEPTEMBER 30,
---------------------- ----------------------
2002 2001 2002 2001
Sales $ 68,105 $ 76,047 $ 206,726 $ 217,154
Cost of sales 55,945 64,067 166,280 185,475
---------- ---------- ---------- ----------
Gross profit 12,160 11,980 40,446 31,679
Selling, general and
administrative expenses 7,266 7,674 24,796 24,363
Research, technical and
product development
expenses 288 454 997 1,354
---------- ---------- ---------- ----------
Operating income 4,606 3,852 14,653 5,962
Other income - net 122 85 9,207 5,966
Interest expense 185 174 473 497
---------- ---------- ---------- ----------
Income before income
taxes and cumulative
effect of change in
accounting principle 4,543 3,763 23,387 11,431
Provision for
income taxes 1,538 1,476 8,887 4,457
---------- ---------- ---------- ----------
Income before
cumulative effect of
change in accounting
principle 3,005 2,287 14,500 6,974
Cumulative effect of
change in accounting
principle - - - (191)
---------- ---------- ---------- ----------
Net income $ 3,005(1) $ 2,287 $ 14,500(1) $ 6,783
========== ========== ========== ==========
Net income
per common share:
Basic $ 0.14(1) $ 0.11 $ 0.70(1) $ 0.32
========== ========== ========== ==========
Diluted $ 0.14(1) $ 0.11 $ 0.69(1) $ 0.32
========== ========== ========== ==========
Weighted Average
Shares Outstanding (in
thousands):
Basic 20,767 20,879 20,772 20,888
Diluted 20,901 21,028 20,892 21,113
RTI INTERNATIONAL METALS, INC.
CONSOLIDATED BALANCE SHEET
(Dollars in thousands)
SEPTEMBER 30, DECEMBER 31,
2002 2001
------------- -------------
(Unaudited)
ASSETS:
Current assets
Cash and cash equivalents $ 25,662 $ 8,036
Accounts receivable 45,370 50,572
Inventories 160,728 158,561
Current deferred income tax assets 8,096 7,418
Other current assets 5,314 13,136
------------- -------------
Total current assets 245,170 237,723
Property, plant and equipment, net 93,119 98,375
Goodwill(1) 34,134 34,133
Other noncurrent assets 17,077 17,520
------------- -------------
Total assets $ 389,500 $ 387,751
============= =============
LIABILITIES AND STOCKHOLDERS' EQUITY:
Current liabilities
Accounts payable $ 10,882 $ 17,799
Accrued liabilities 20,269 18,667
------------- -------------
Total current liabilities 31,151 36,466
Long-term debt - -
Accrued pension cost 11,351 17,787
Accrued postretirement benefit cost 19,940 19,940
Deferred income taxes 1,296 1,296
Other noncurrent liabilities 5,205 5,287
------------- -------------
Total liabilities 68,943 80,776
Total shareholders' equity 320,557 306,975
Total liabilities and
shareholders' equity $ 389,500 $ 387,751
============= =============
RTI INTERNATIONAL METALS, INC.
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited)
(Dollars in thousands)
NINE MONTHS ENDED
SEPTEMBER 30,
----------------------------
2002 2001
Cash provided by operating activities
(including depreciation and
amortization of $9,345 and $9,942,
respectively)(1) $ 23,440 $ 26,529
Cash used in investing activities (4,746) (10,109)
Cash used in financing activities (1,068) (19,657)
------------- -------------
Increase/(decrease) in cash and
cash equivalents 17,626 (3,237)
Cash and cash equivalents
at end of period $ 25,662 $ 3,137
============= =============
(1) The Company adopted FAS 142, "Goodwill and Other Intangible Assets," on January 1, 2002, which had the effect of increasing net income approximately 1 cent per share in each of the quarters of 2002 compared to the comparable period in 2001. There was no effect on cash flow.