EX-99.1 11 j1823001exv99w1.htm EX-99.1 EX-99.1
 

Exhibit 99.1
March 16, 2006
RTI ANNOUNCES 2005 RESULTS
Niles, Ohio — RTI International Metals, Inc. (NYSE: RTI) released results today for the fourth quarter and year of 2005.
The Company reported net income for the year of $38.9 million, or $1.75 per share, on sales of $346.9 million. Net income from continuing operations in 2005 was $37.3 million, or $1.68 per share. Results for the year 2004 were a net loss of $3.0 million, or $0.14 per share, on sales of $209.6 million. Net loss from continuing operations in 2004 was $2.3 million, or $0.11 share.
The fourth quarter of 2005 generated net income of $11.3 million, or $0.50 per share, on sales of $99.9 million. Net income from continuing operations in the fourth quarter was $9.8 million, or $0.43 per share. The same period in 2004 resulted in a net loss of $4.0 million, or $0.18 per share, on sales of $60.2 million. Net loss from continuing operations in the fourth quarter of 2004 was $3.1 million, or $0.14 per share.
During the fourth quarter of 2005, RTI reached agreement with the U.S. Department of Energy (“DOE”) on all open matters relating to the completion of the remediation of the Company’s former extrusion facility in Ashtabula, Ohio. RTI had been performing the cleanup under a contract from the DOE which was terminated in December, 2003. Results for the fourth quarter and year 2005 include a $1.5 million net income gain in connection with the settlement and discontinuance of RTI’s remediation operations.
Mill product shipments for the fourth quarter were 3.1 million pounds at an average realized price of $16.92 per pound versus 1.7 million pounds in the year earlier period at an average realized price of $13.76 per pound. As a result, the Titanium Group posted operating profit in the fourth quarter of 2005 of $11.2 million on sales of $96.9 million, including intercompany sales of $59.7 million. Fourth quarter 2004 results were a loss of $3.9 million on sales of $42.9 million, including intercompany sales of $28.9 million.
Full year 2005 mill product shipments rose to 11.1 million pounds as compared to 5.4 million in 2004. Average realized prices in 2005 were $15.37 versus $14.59 in 2004.
The combination of increased volume and price, coupled with ongoing manufacturing cost reductions, resulted in a $40.8 million operating profit for the Titanium Group in 2005. Sales for the Group were $334.8 million, including inter-company sales of $204.6 million. In 2004, the Group had an operating loss of $11.0 million on sales of $147.7 million, including intercompany sales of $99.1 million.
The Company’s Fabrication & Distribution Group posted a $3.4 million operating profit in the fourth quarter of 2005 on sales of $62.6 million. The Group had an operating loss of $2.6 million during the same period in 2004 on net sales of $46.2 million.

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For the full year 2005, Fabrication & Distribution generated an operating profit of $15.3 million on net sales of $216.7 million. The Group had an operating loss of $3.5 million in 2004 on net sales of $161.0 million.
Commenting on the Company’s results, Timothy G. Rupert, President and CEO, said, “RTI achieved substantial revenue and earnings growth in 2005. Sales, which grew 66%, were strong in all of our major markets — commercial aerospace, defense and industrial. Demand from commercial aerospace, particularly for titanium, is as strong as it has ever been and continues to grow, as requirements for new aircraft designs are defined and worldwide air travel increases. At year end there were 3986 large commercial jets on order, representing over five years production at Airbus and Boeing. As a result, we believe demand for our products will continue to grow and expect RTI’s financial performance to improve further this year and beyond.
“Our order backlog at the end of the year stood at $450 million. We expect RTI’s 2006 sales to grow 30-40% over 2005. Operating income is expected to increase by 60-90%.”
The statements in this release relating to matters that are not historical facts are forward-looking statements that may involve risks and uncertainties. These include, but are not limited to, the impact of global events on the commercial aerospace industry, military spending, global economic conditions, the competitive nature of the markets for specialty metals, the ability of the Company to obtain an adequate supply of raw materials, the design and effectiveness of the Company’s internal control over financial reporting, and other risks and uncertainties included in the Company’s filings with the Securities and Exchange Commission. 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.
     RTI International Metals®, headquartered in Niles, Ohio, is one of the world’s largest producers of titanium. Through its various subsidiaries, RTI manufactures and distributes titanium and specialty metal mill products, extruded shapes, formed parts and engineered systems for aerospace, industrial, defense, energy, chemical and consumer applications for customers around the world. To learn more about RTI International Metals, Inc., visit our website at www.rtiintl.com.
     NOTE: RTI International Metals, Inc. has scheduled a conference call for Friday, March 17 at 11:00 a.m., Eastern Time, to discuss this press release. To participate in the call, please dial toll free (USA/Canada) 800-938-0653 or (International) 973-935-2408 a few minutes prior to the start time and specify the RTI International Metals Conference Call. Replay of the call will be available until 11:59 p.m., Eastern Time, on Friday, March 24, 2006, by dialing (USA/Canada) 877-519-4471 or (International) 973-341-3080 and Digital Pin Code 7155340.
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March 16, 2006
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except for per share amounts)
(Unaudited)
                                 
    QUARTER ENDED     YEAR ENDED  
    DECEMBER 31,     DECEMBER 31,  
    2005   2004     2005   2004  
 
                                
Sales
   $ 99,850     $ 60,210     $ 346,906     $ 209,643  
Cost of sales
     70,065       52,987       240,314       184,592  
 
                        
Gross profit
     29,785       7,223       106,592       25,051  
Selling, general and administrative expenses
     14,713       13,410       48,816       38,974  
Research, technical and product development expenses
     467       316       1,642       1,181  
Other operating (income) — net
     —       (21 )     —       (538 )
 
                        
Operating income (loss)
     14,605       (6,482 )     56,134       (14,566 )
Other (expense) income — net
     (130 )     56       369       9,432  
Interest income
     250       46       909       138  
 
                        
Income (loss) before income taxes
     14,725       (6,380 )     57,412       (4,996 )
Provision (benefit) for income taxes
     4,935       (3,259 )     20,068       (2,677 )
 
                        
Income (loss) from continuing operations
     9,790       (3,121 )     37,344       (2,319 )
Income (loss) from discontinued operations, net of tax
     1,504       (877 )     1,591       (638 )
 
                        
Net income (loss)
   $ 11,294     $ (3,998 )   $ 38,935     $ (2,957 )
 
                        
 
                                
Basis earnings (loss) per common share
                                
Continuing operations
   $ 0.43     $ (0.14 )   $ 1.68     $ (0.11 )
Discontinued operations
   $ 0.07     $ (0.04 )   $ 0.07     $ (0.03 )
 
                        
Net income (loss)
   $ 0.50     $ (0.18 )   $ 1.75     $ (0.14 )
 
                        
 
                                
Diluted earnings (loss) per common share
                                
Continuing operations
   $ 0.43     $ (0.14 )   $ 1.66     $ (0.11 )
Discontinued operations
   $ 0.07     $ (0.04 )   $ 0.07     $ (0.03 )
 
                        
Net income (loss)
   $ 0.50     $ (0.18 )   $ 1.73     $ (0.14 )
 
                        
 
                                
Weighted average shares
                                
outstanding (in thousands):
                                
Basic
     22,506       21,706       22,187       21,310  
 
                                
Diluted
     22,808       21,706       22,526       21,310  
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March 16, 2006
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
                 
    DECEMBER 31,     DECEMBER 31,  
    2005     2004  
ASSETS:
                
Current assets
                
Cash and cash equivalents
   $ 53,353     $ 62,701  
Investments
     2,410       —  
Accounts receivable
     54,212       44,490  
Inventories
     223,394       133,512  
Current deferred income tax assets
     3,778       1,145  
Other current assets
     7,407       6,918  
 
            
Total current assets
     344,554       248,766  
Property, plant and equipment, net
     80,056       82,593  
Goodwill
     48,646       46,618  
Other intangible assets, net
     16,581       16,040  
Noncurrent deferred income tax assets
     5,451       8,930  
Other noncurrent assets
     6,463       6,464  
 
            
Total assets
   $ 501,751     $ 409,411  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY:
                
Current liabilities
                
Accounts payable
   $ 25,620     $ 14,253  
Accrued wages and other employee costs
     10,953       4,863  
Billings in excess of costs and estimated earnings
     13,352       4,708  
Accrued liabilities
     11,959       6,498  
 
            
Total current liabilities
     61,884       30,322  
Long-term debt
     —       —  
Accrued postretirement benefit cost
     21,070       20,811  
Accrued pension cost
     25,595       21,090  
Deferred income taxes
     6,516       5,918  
Other noncurrent liabilities
     7,034       7,312  
 
            
Total liabilities
     122,099       85,453  
Total shareholders’ equity
     379,652       323,958  
 
            
Total liabilities and shareholders’ equity
   $ 501,751     $ 409,411  
 
            
RTI INTERNATIONAL METALS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
                 
    FOR THE YEAR ENDED  
    DECEMBER 31,     DECEMBER 31,  
    2005     2004  
Cash (used) provided by operating activities
                
(including depreciation and amortization of $13,263 and $12,448
                
respectively)
   $ (10,709 )   $ 20,682  
Cash used in investing activities
     (12,150 )     (29,401 )
Cash provided by financing activities
     13,328       3,450  
Effect of exchange rate changes on cash and cash equivalents
     183       —  
 
            
Decrease in cash and cash equivalents
   $ (9,348 )   $ (5,269 )
Cash and cash equivalents at beginning of period
     62,701       67,970  
 
            
Cash and cash equivalents at end of period
   $ 53,353     $ 62,701  
 
            

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March 16, 2006
RTI INTERNATIONAL METALS, INC.
SELECT OPERATING SEGMENT INFORMATION
(Dollars in thousands)
(Unaudited)
                                 
    QUARTER ENDED     YEAR ENDED  
    DECEMBER 31,     DECEMBER 31,  
    2005   2004     2005   2004  
Total sales
                                
Titanium Group
   $ 96,922     $ 42,886     $ 334,765     $ 147,719  
Fabrication and Distribution Group
     79,780       55,406       274,095       191,763  
 
                        
 
   $ 176,702     $ 98,292     $ 608,860     $ 339,482  
 
                                
Inter and intra segment sales
                                
Titanium Group
   $ 59,720     $ 28,930       204,585       99,050  
Fabrication and Distribution Group
     17,132       9,152       57,369       30,789  
 
                        
 
   $ 76,852     $ 38,082     $ 261,954     $ 129,839  
 
                                
Total sales to external customers
                                
Titanium Group
   $ 37,202     $ 13,956     $ 130,180     $ 48,669  
Fabrication and Distribution Group
     62,648       46,254       216,726       160,974  
 
                        
 
   $ 99,850     $ 60,210     $ 346,906     $ 209,643  
 
                        
 
                                
Operating income/(loss)
                                
Titanium Group
   $ 11,158       ($3,837 )   $ 40,834     $ (11,044 )
Fabrication and Distribution Group
     3,447       (2,645 )     15,300       (3,522 )
 
                        
 
   $ 14,605     $ (6,482 )   $ 56,134     $ (14,566 )
 
                        

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