Kaiser Aluminum Corporation Announces First Quarter 2025 Earnings Release, Conference Call, and Change in Inventory Accounting Methodology
FRANKLIN, Tenn.--(BUSINESS WIRE)--April 02, 2025--
Kaiser Aluminum Corporation $(KALU)$ ("Kaiser" or the "Company") today announced that it plans to release its first quarter 2025 financial and operating results on Wednesday, April 23, 2025, after the market closes. The Company will host its quarterly conference call on Thursday, April 24, 2025, at 10:00 a.m. Eastern Time.
The conference call can be directly accessed from the U.S. and Canada at (877) 423-9813 and accessed internationally at (201) 689-8573. The conference call ID number is 13752771. A live webcast and related presentation slides will be available through the Investors portion of the Company's website at https://investors.kaiseraluminum.com. An audio archive will be available on the Company's website following the call.
In addition, the Company announced that it has changed its method of accounting for inventories from last-in, first-out ("LIFO") to weighted average cost ("WAC") effective January 1, 2025. The Company believes that this change improves the comparability of the Company's operational results between periods by removing LIFO income or charge in a period resulting from LIFO valuation and changes to historical LIFO layers. Additionally, the Company believes that the new methodology better reflects the physical flow of goods and simplifies the financial close process by utilizing the WAC methodology for all internal and external reporting purposes.
The inventory accounting methodology change resulted in an increase to Inventory and Retained earnings (net of tax) of $46.8 million and $35.6 million, respectively, both as of January 1, 2023. Financial statements for the full year 2023 and the quarters and full year 2024 were adjusted to reflect the impact of the methodology change as follows:
As Previously Effect of WAC As Adjusted
Reported Change (unaudited)
----------------- --------------- ------------
(In millions of dollars, except per share amounts)
Statements of
Consolidated
Income (Loss)
for the year
ended
December 31,
2023
Cost of
products
sold,
excluding
depreciation
and
amortization $ 2,754.9 $ (26.7) $ 2,728.2
Operating
income 95.8 26.7 122.5
Income tax
provision (9.1) (6.1) (15.2)
Net income 47.2 20.6 67.8
Net income
per common
share:
Basic $ 2.95 $ 1.30 $ 4.25
Diluted $ 2.92 $ 1.29 $ 4.21
Consolidated
Balance Sheet
as of
December 31,
2023
Receivables,
other $ 12.4 $ 0.1 $ 12.5
Inventories 477.2 73.5 550.7
Deferred tax
assets, net 6.0 (2.6) 3.4
Deferred tax
liabilities 13.9 14.8 28.7
Retained
earnings 10.1 56.2 66.3
Statements of
Consolidated
Cash Flows
for the year
ended
December 31,
2023
Net income $ 47.2 $ 20.6 $ 67.8
Deferred
income taxes 7.5 6.1 13.6
LIFO valuation
inventory
expense 1.0 (1.0) --
Inventories 47.2 (25.7) 21.5
Net cash
provided by
operating
activities 211.9 -- 211.9
As Previously Effect of WAC As Adjusted
Reported Change (unaudited)
----------------- --------------- ------------
(In millions of dollars, except per share amounts)
Statements of
Consolidated
Income (Loss)
for the year
ended
December 31,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 2,691.1 $ (24.5) $ 2,666.6
Operating
income 87.7 24.5 112.2
Income tax
provision (16.7) (5.6) (22.3)
Net income 46.8 18.9 65.7
Net income
per common
share:
Basic $ 2.91 $ 1.17 $ 4.08
Diluted $ 2.87 $ 1.15 $ 4.02
Consolidated
Balance Sheet
as of
December 31,
2024
Receivables,
other $ 22.0 $ 0.2 $ 22.2
Inventories 503.9 98.0 601.9
Deferred tax
assets, net 7.2 (3.2) 4.0
Other accrued
liabilities 79.4 (0.1) 79.3
Deferred tax
liabilities 24.1 20.0 44.1
Retained
earnings 6.2 75.1 81.3
Statements of
Consolidated
Cash Flows
for the year
ended
December 31,
2024
Net income $ 46.8 $ 18.9 $ 65.7
Deferred
income taxes 6.8 5.8 12.6
LIFO valuation
inventory
expense 3.5 (3.5) --
Trade and
other
receivables (4.4) (0.1) (4.5)
Inventories (29.4) (21.0) (50.4)
Accrued
liabilities 10.0 (0.1) 9.9
Net cash
provided by
operating
activities 167.1 -- 167.1
As Previously Effect of WAC As Adjusted
Reported Change (unaudited)
------------------ -------------- --------------
(In millions of dollars, except per share amounts)
Statements of
Consolidated
Income (Loss)
for the
quarter ended
March 31,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 642.9 $ 8.4 $ 651.3
Operating
income 32.7 (8.4) 24.3
Income tax
provision (7.5) 2.0 (5.5)
Net income 24.6 (6.4) 18.2
Net income
per common
share:
Basic $ 1.53 $ (0.40) $ 1.13
Diluted $ 1.51 $ (0.39) $ 1.12
Consolidated
Balance Sheet
as of March
31, 2024
Receivables,
other $ 11.2 $ 0.1 $ 11.3
Inventories 471.3 65.1 536.4
Deferred tax
assets, net 5.4 (2.3) 3.1
Deferred tax
liabilities 19.5 13.1 32.6
Retained
earnings 22.1 49.8 71.9
Statements of
Consolidated
Cash Flows
for the
quarter ended
March 31,
2024
Net income $ 24.6 $ (6.4) $ 18.2
Deferred
income taxes 6.8 (2.0) 4.8
Inventories 4.4 8.4 12.8
Net cash
provided by
operating
activities 63.3 -- 63.3
As Previously Effect of WAC As Adjusted
Reported Change (unaudited)
----------------- --------------- ------------
(In millions of dollars, except per share amounts)
Statements of
Consolidated
Income (Loss)
for the
quarter ended
June 30,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 690.5 $ (20.7) $ 669.8
Operating
income 15.5 20.7 36.2
Income tax
provision (0.8) (4.9) (5.7)
Net income 3.1 15.8 18.9
Net income
per common
share:
Basic $ 0.19 $ 0.99 $ 1.18
Diluted $ 0.19 $ 0.96 $ 1.15
Consolidated
Balance Sheet
as of June
30, 2024
Receivables,
other $ 13.4 $ 0.1 $ 13.5
Inventories 446.9 85.8 532.7
Deferred tax
assets, net 6.0 (2.8) 3.2
Deferred tax
liabilities 20.6 17.5 38.1
Retained
earnings 12.5 65.6 78.1
Statements of
Consolidated
Income (Loss)
for the six
months ended
June 30,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 1,333.4 $ (12.3) $ 1,321.1
Operating
income 48.2 12.3 60.5
Income tax
provision (8.3) (2.9) (11.2)
Net income 27.7 9.4 37.1
Net income
per common
share:
Basic $ 1.72 $ 0.59 $ 2.31
Diluted $ 1.69 $ 0.58 $ 2.27
Statements of
Consolidated
Cash Flows
for the six
months ended
June 30,
2024
Net income $ 27.7 $ 9.4 $ 37.1
Deferred
income taxes 6.4 2.9 9.3
LIFO valuation
inventory
expense 4.5 (4.5) --
Inventories 22.6 (7.8) 14.8
Net cash
provided by
operating
activities 89.6 -- 89.6
As Previously Effect of WAC As Adjusted
Reported Change (unaudited)
----------------- --------------- ------------
(In millions of dollars, except per share amounts)
Statements of
Consolidated
Income (Loss)
for the
quarter ended
September 30,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 671.8 $ 4.2 $ 676.0
Operating
income 17.4 (4.2) 13.2
Income tax
provision (3.4) 1.0 (2.4)
Net income 12.0 (3.2) 8.8
Net income
per common
share:
Basic $ 0.75 $ (0.21) $ 0.54
Diluted $ 0.74 $ (0.20) $ 0.54
Consolidated
Balance Sheet
as of
September 30,
2024
Receivables,
other $ 0.9 $ 0.1 $ 1.0
Inventories 473.9 81.6 555.5
Deferred tax
assets, net 6.3 (2.7) 3.6
Deferred tax
liabilities 23.7 16.6 40.3
Retained
earnings 11.8 62.4 74.2
Statements of
Consolidated
Income (Loss)
for the nine
months ended
September 30,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 2,005.2 $ (8.1) $ 1,997.1
Operating
income 65.6 8.1 73.7
Income tax
provision (11.7) (1.9) (13.6)
Net income 39.7 6.2 45.9
Net income
per common
share:
Basic $ 2.47 $ 0.38 $ 2.85
Diluted $ 2.44 $ 0.37 $ 2.81
Statements of
Consolidated
Cash Flows
for the nine
months ended
September 30,
2024
Net income $ 39.7 $ 6.2 $ 45.9
Deferred
income taxes 8.5 1.9 10.4
LIFO valuation
inventory
expense 8.8 (8.8) --
Inventories (8.7) 0.7 (8.0)
Net cash
provided by
operating
activities 123.7 -- 123.7
Statements of
Consolidated
Income (Loss)
for the
quarter ended
December 31,
2024
Cost of
products
sold,
excluding
depreciation
and
amortization $ 685.9 $ (16.4) $ 669.5
Operating
income 22.1 16.4 38.5
Income tax
provision (5.0) (3.7) (8.7)
Net income 7.1 12.7 19.8
Net income
per common
share:
Basic $ 0.44 $ 0.79 $ 1.23
Diluted $ 0.43 $ 0.78 $ 1.21
Reconciliation of Non-GAAP Measures - Consolidated
As Adjusted (Unaudited)
(In millions of dollars)
For the Year Ended For the Quarter Ended
---------------------- -------------------------------------
March June December
December December 31, 30, September 31,
31, 2023 31, 2024 2024 2024 30, 2024 2024
--------- ---------- ------ ----- ---------- --------
GAAP net income $ 67.8 $ 65.7 $ 18.2 $18.9 $ 8.8 $ 19.8
Interest
expense 46.9 43.7 11.5 11.1 10.7 10.4
Other (income)
expense, net (7.4) (19.5) (10.9) 0.5 (8.7) (0.4)
Income tax
provision 15.2 22.3 5.5 5.7 2.4 8.7
-------- ------ ----- ---- --------- -------
GAAP operating
income 122.5 112.2 24.3 36.2 13.2 38.5
Mark-to-market
loss (gain) -- -- -- 2.2 -- (2.2)
Restructuring
costs 5.0 7.6 0.1 6.8 0.7 --
Non-cash asset
impairment
charge -- 0.4 0.4 -- -- --
Other operating
NRR(1) loss 0.2 4.4 0.4 -- 3.3 0.7
-------- ------ ----- ---- --------- -------
Operating
income,
excluding
operating
NRR(1) items 127.7 124.6 25.2 45.2 17.2 37.0
Depreciation
and
amortization 108.6 116.4 28.8 29.0 29.0 29.6
-------- ------ ----- ---- --------- -------
Adjusted
EBITDA(2) $ 236.3 $ 241.0 $ 54.0 $74.2 $ 46.2 $ 66.6
======== ====== ===== ==== ========= =======
Adjusted
EBITDA(2) as
previously
reported $ 209.6 $ 216.5 $ 62.4 $53.5 $ 50.4 $ 50.2
Effect of
inventory
methodology
change $ 26.7 $ 24.5 $ (8.4) $20.7 $ (4.2) $ 16.4
(1.) NRR is an abbreviation for non-run-rate; NRR items are pre-tax.
(2.) Adjusted EBITDA represents consolidated operating income, excluding
operating non-run-rate items, plus Depreciation and amortization.
About Kaiser Aluminum Corporation
Kaiser Aluminum Corporation, headquartered in Franklin, Tenn., is a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly engineered solutions for aerospace and high-strength, packaging, general engineering, custom automotive and other industrial applications. The Company's North American facilities produce value-added plate, sheet, coil, extrusions, rod, bar, tube and wire products, adhering to traditions of quality, innovation and service that have been key components of its culture since the Company was founded in 1946. The Company's stock is included in the Russell 2000$(R)$ index and the S&P Small Cap 600(R) index.
Available Information
For more information, please visit the Company's web site at www.kaiseraluminum.com. The web site includes a section for investor relations under which the Company provides notifications of news or announcements regarding its financial performance, including Securities and Exchange Commission $(SEC.UK)$ filings, investor events, and earnings and other press releases. In addition, all Company filings submitted to the SEC are available through a link to the section of the SEC's web site at www.sec.gov which includes: Annual Reports on Form 10-K, Quarterly Reports on Form 10-Q, Current Reports on Form 8-K and Proxy Statements for the Company's annual stockholders' meetings and other information statements as filed with the SEC. In addition, the Company provides a webcast of its quarterly earnings calls and certain events in which management participates or hosts with members of the investment community.
Non-GAAP Financial Measures
This earnings release contains certain non-GAAP financial measures. A "non-GAAP financial measure" is defined as a numerical measure of a company's financial performance that excludes or includes amounts so as to be different than the most directly comparable measure calculated and presented in accordance with GAAP in the statements of income, balance sheets, or statements of cash flow of the Company. Pursuant to the requirements of Regulation G, the Company has provided a reconciliation of non-GAAP financial measures to the most directly comparable financial measure in the accompanying tables.
The non-GAAP financial measure used within this earnings release include adjusted EBITDA. As more fully described in these reports, "non-run-rate" items are items that, while they may occur from period to period, are particularly material to results, impact costs primarily as a result of external market factors and may not occur in future periods if the same level of underlying performance were to occur. This measure is presented because management uses this information to monitor and evaluate financial results and trends and believes this information to also be useful for investors. Reconciliations of certain forward looking non-GAAP financial measures to comparable GAAP measures are not provided because certain items required for such reconciliations are outside of the Company's control and/or cannot be reasonably predicted or provided without unreasonable effort.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250402289960/en/
CONTACT: Addo Investor Relations
Investors@KaiserAluminum.com
(949) 614-1769
(END) Dow Jones Newswires
April 02, 2025 16:44 ET (20:44 GMT)
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