Second Quarter 2022 Highlights:

• Internet Gross sales $954 Million; Worth Added Income $376 Million

• Internet Loss $14 Million; Internet Loss per Diluted Share $0.87

• Adjusted Internet Loss $1 Million; Adjusted Loss per Diluted Share $0.03

• Adjusted EBITDA $41 Million; Adjusted EBITDA Margin 10.9%

• Robust Demand for Common Engineering and Packaging; Aerospace Restoration Continues As Anticipated

• Improved Pricing Largely Mitigating Inflationary and Commodity Prices

• Continued Enhance in Inflationary Prices Stays Difficult

• Incremental Prices of ~$17 Million Primarily Associated to Metallic and Magnesium Provide Chain Points

First Half 2022 Highlights:

• Internet Gross sales $1.9 Billion; Worth Added Income $747 Million

• Internet Loss $6 Million; Internet Loss per Diluted Share $0.36

• Adjusted Internet Earnings $10 Million; Adjusted Earnings per Diluted Share $0.63

• Adjusted EBITDA $96 Million; Adjusted EBITDA Margin 12.9%

• Incremental Prices of ~$30 Million Primarily Associated to Provide Chain and Transportation Points

FRANKLIN, Tenn., July 25, 2022 (GLOBE NEWSWIRE) — Kaiser Aluminum Company (NASDAQ:KALU), a number one producer of semi-fabricated specialty aluminum merchandise serving clients worldwide with highly-engineered options for aerospace and high-strength, packaging, basic engineering, customized automotive and different industrial purposes, right now introduced second quarter and first half 2022 outcomes.

Second Quarter 2022 Administration Abstract

Outcomes for the second quarter 2022 mirrored a really difficult surroundings as steel and magnesium provide chain points, predominately associated to the Firm’s Warrick rolling mill, continued to negatively impression outcomes. General, adjusted EBITDA within the second quarter mirrored incremental prices of roughly $17 million primarily associated to those provide chain points.

Whereas working efficiency has been difficult, finish market demand stays optimistic. Demand for the Firm’s basic engineering and packaging purposes stays sturdy. Bettering demand for the Firm’s industrial aerospace purposes is progressing as anticipated and demand for enterprise jet and protection associated purposes stays sturdy. The Firm’s automotive enterprise stays muted because of the continued scarcity of semiconductor chips which have restricted North American car manufacturing.

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Though inflationary price challenges proceed, the Firm has been profitable in passing by means of the vast majority of these extra prices in its transactional enterprise by means of worth will increase and to its contract clients by means of provisions included within the provide agreements. Worth added income within the second quarter displays the advantage of the upper pricing and commodity and freight surcharges, which have largely mitigated the impression of inflationary and commodity prices. Nonetheless, the Firm continues to incur inflation pushed increased vitality, manufacturing and worker associated prices that weren’t absolutely recovered by means of these pricing initiatives.

Outlook

“Though our Warrick rolling mill’s provide chain points stay difficult, we proceed to aggressively handle these points as we rework Warrick right into a extremely environment friendly and unbiased operation, whereas executing on our strategic plans for additional progress,” mentioned Keith A. Harvey, President and Chief Govt Officer.

“As now we have beforehand mentioned, Warrick has confronted particular challenges with the September 2021 pressure majeure declaration of its major magnesium provider US Magnesium, LLC, (“US Magazine”), which resulted in a major discount in deliveries, whereas we have been additionally being impacted by the operational challenges Alcoa Company (“Alcoa”) was experiencing at its adjoining smelter, which provides major aluminum to Warrick. In June, US Magazine deliveries unexpectedly stopped whereas efficiency of the Alcoa smelter additionally quickly deteriorated, negatively impacting Warrick’s working effectivity and monetary efficiency,” acknowledged Mr. Harvey.

“However these near-term challenges, longer-term, our technique stays unchanged. We stay properly positioned for continued long-term progress with a diversified portfolio and robust secular progress traits in every of our served finish markets. The basics of our aerospace, packaging, automotive and basic engineering finish markets are strong and as we proceed to execute on our strategic initiatives, we are going to proceed to ship long-term worth to all of our stakeholders,” concluded Mr. Harvey.

(In thousands and thousands of {dollars}, besides shipments, realized worth and per share quantities)

* Please discuss with GAAP monetary statements.

Totals could not sum as a consequence of rounding.

Second Quarter 2022

Internet gross sales for the second quarter 2022 elevated to $954 million in comparison with $741 million within the prior 12 months interval, reflecting a 0.5% lower in shipments and a 30% improve in common promoting worth per pound. The rise in common promoting worth mirrored a 19% improve in worth added income per pound and a 37% improve in underlying contained steel prices.

Worth added income for the second quarter 2022 elevated 18% to $376 million from $318 million within the prior 12 months primarily on account of increased pricing to mitigate inflationary prices. Worth added income for the Firm’s aerospace/excessive energy purposes elevated roughly 21% to $97 million on an 18% improve in shipments reflecting sturdy demand for protection and enterprise jet purposes and a seamless restoration in demand for industrial aerospace purposes. Worth added income for packaging elevated roughly 17% to $154 million on a 3% lower in shipments reflecting improved contract pricing and elevated surcharges to offset increased inflationary and commodity prices. Worth added income for basic engineering purposes elevated roughly 25% to $96 million on a 0.4% improve in shipments as sturdy demand continued to help worth will increase and alloy restoration. Worth added income for automotive extrusions elevated 6% to $26 million on a modest 2% improve in shipments primarily reflecting increased contract pricing and blend.

Reported working loss for the second quarter 2022 was $2 million. Adjusting for roughly $16 million of non-run-rate fees, working earnings for the second quarter 2022 was roughly $14 million, in comparison with working earnings of $33 million within the prior 12 months interval, primarily reflecting the change in adjusted EBITDA as mentioned beneath. As well as, adjusted working earnings within the second quarter 2022 mirrored a further $1 million of depreciation and amortization expense.

Reported web loss for the second quarter 2022 was $14 million, or $0.87 loss per diluted share, in comparison with web loss and loss per diluted share of $22 million and $1.42, respectively, for the prior 12 months interval. Excluding the impression of non-run-rate gadgets, adjusted web loss was $1 million for the second quarter 2022, in comparison with web earnings of $16 million within the prior 12 months interval. Adjusted loss per diluted share was $0.03 for the second quarter 2022, in comparison with adjusted earnings per diluted share of $1.00 for the second quarter 2021.

Adjusted EBITDA of $41 million within the second quarter 2022 decreased $18 million in comparison with the prior 12 months interval reflecting the impression of beforehand famous provide chain points, increased main upkeep expense and different increased alloy, vitality and freight price which have been partially offset by improved pricing and commodity and freight surcharges. Adjusted EBITDA as a proportion of worth added income was 10.9% within the second quarter 2022, in comparison with 18.5% within the prior 12 months interval.

First Half 2022 In comparison with Second Half 2021

Internet gross sales for the primary half 2022 have been $1.9 billion in comparison with $1.6 billion within the second half 2021, reflecting a 3% improve in shipments and an 18% improve in common promoting worth per pound. The rise in common promoting worth mirrored an roughly 16% improve in worth added income per pound and a 20% improve in underlying contained steel prices.

Worth added income for the primary half 2022 elevated 20% to $747 million from $622 million within the second half 2021, reflecting increased pricing as beforehand famous and bettering demand for the Firm’s aerospace and basic engineering purposes. Worth added income for the Firm’s aerospace/excessive energy purposes elevated 17% to $192 million on an roughly 11% improve in shipments in comparison with the second half 2021. Worth added income for the Firm’s packaging enterprise elevated 17% to $300 million on comparatively flat shipments in comparison with the second half 2021, reflecting improved contract pricing and elevated surcharges to offset increased inflationary and commodity prices. Worth added income for basic engineering purposes elevated roughly 34% to $198 million on a 14% improve in shipments in comparison with the second half 2021 reflecting sturdy underlying semiconductor plate, industrial and machine device demand, along with the improved pricing and alloy restoration. Worth added income for automotive extrusions elevated 13% to $50 million on a 9% improve in shipments reflecting improved pricing and demand.

Reported working earnings for the primary half 2022 was roughly $23 million. Adjusting for roughly $18 million of non-run-rate fees, working earnings for the primary half 2022 was roughly $42 million, in comparison with working earnings of $44 million within the second half 2021. As well as, adjusted working earnings within the first half 2022 mirrored a further $2 million of depreciation and amortization expense.

Reported web loss for the primary half 2022 was $6 million, or $0.36 loss per diluted share, in comparison with web loss and loss per diluted share of $1 million and $0.04, respectively, for the second half 2021. Excluding the impression of non-run-rate gadgets, adjusted web earnings was $10 million, for the primary half 2022, in comparison with web earnings of $12 million for the second half 2021. Adjusted earnings per diluted share was $0.63 for the primary half 2022, in comparison with adjusted earnings per diluted share of $0.76 for the second half 2021.

Adjusted EBITDA of $96 million within the first half 2022 was flat in comparison with the second half 2021. The primary half of 2022 mirrored increased worth added income partially offset by roughly $30 million of incremental prices related to magnesium and steel provide chain points and better transportation prices. The second half of 2021 mirrored incremental prices of roughly $12 million associated to magnesium and steel provide chain points. Adjusted EBITDA as a proportion of worth added income was roughly 12.9% within the first half 2022, in comparison with 15.5% within the second half 2021.

Money Move and Liquidity

Adjusted EBITDA of $96 million reported within the first half 2022 funded roughly $46 million of capital investments, $23 million of curiosity funds and $25 million of money returned to shareholders by means of quarterly dividends.

As of June 30, 2022, the Firm had money and money equivalents of roughly $235 million and borrowing availability underneath the Firm’s revolving credit score facility of roughly $551 million offering whole liquidity of $787 million. There have been no borrowings underneath the revolving credit score facility in the course of the quarter and the power stays undrawn.

Convention Name

Kaiser Aluminum Company will host a convention name on Tuesday, July 26, 2022, at 10:00am (Pacific Time); 12:00pm (Central Time); 1:00pm (Jap Time), to debate second quarter and first half 2022 outcomes. To take part, the convention name may be immediately accessed from the U.S. and Canada at (866) 374-5140, and accessed internationally at (404) 400-0571. The convention name ID quantity is 10059580. A hyperlink to the simultaneous webcast may be accessed on the Firm’s web site at http://traders.kaiseraluminum.com/occasions.cfm. A replica of a presentation might be out there for obtain previous to the decision and an audio archive might be out there on the Firm’s web site following the decision.

Firm Description

Kaiser Aluminum Company, headquartered in Franklin, Tenn., is a number one producer of semi-fabricated specialty aluminum merchandise, serving clients worldwide with highly-engineered options for aerospace and high-strength, packaging, basic engineering, customized automotive, and different industrial purposes. The Firm’s North American amenities produce value-added plate, sheet, coil, extrusions, rod, bar, tube, and wire merchandise, adhering to traditions of high quality, innovation, and repair which have been key parts of the tradition because the Firm was based in 1946. The Firm’s inventory is included within the Russell 2000® index and the S&P Small Cap 600® index.

Obtainable Data

For extra data, please go to the Firm’s web site at www.kaiseraluminum.com. The web site features a part for investor relations underneath which the Firm gives notifications of stories or bulletins concerning its monetary efficiency, together with Securities and Trade Fee (SEC) filings, investor occasions, and earnings and different press releases. As well as, all Firm filings submitted to the SEC can be found by means of a hyperlink to the part of the SEC’s web site at www.sec.gov, which incorporates: Annual Experiences on Kind 10-Ok, Quarterly Experiences on Kind 10-Q, Present Experiences on Kind 8-Ok and Proxy Statements for the Firm’s annual stockholders’ conferences, and different data statements as filed with the SEC. As well as, the Firm gives a webcast of its quarterly earnings calls and sure occasions through which administration participates or hosts with members of the funding neighborhood.

Non-GAAP Monetary Measures

This earnings launch accommodates sure non-GAAP monetary measures. A “non-GAAP monetary measure” is outlined as a numerical measure of an organization’s monetary efficiency that excludes or contains quantities in order to be totally different than probably the most immediately comparable measure calculated and introduced in accordance with GAAP within the statements of earnings, stability sheets, or statements of money circulate of the Firm. Pursuant to the necessities of Regulation G, the Firm has offered a reconciliation of non-GAAP monetary measures to probably the most immediately comparable monetary measure within the accompanying tables.

The non-GAAP monetary measures used inside this earnings launch are worth added income, adjusted working earnings, adjusted EBITDA, adjusted web earnings, and adjusted earnings per diluted share which exclude non-run-rate gadgets and ratios associated thereto. As extra absolutely described in these experiences, “non-run-rate” gadgets are gadgets that, whereas they might happen from interval to interval, are notably materials to outcomes, impression prices primarily on account of exterior market elements and will not happen in future intervals if the identical degree of underlying efficiency have been to happen. These measures are introduced as a result of administration makes use of this data to watch and consider monetary outcomes and traits and believes this data to even be helpful for traders. Reconciliations of sure ahead trying non-GAAP monetary measures to comparable GAAP measures aren’t offered as a result of sure gadgets required for such reconciliations are outdoors of our management and/or can’t be fairly predicted or offered with out unreasonable effort.

Ahead-Wanting Statements

This press launch accommodates statements which represent “forward-looking statements” inside the which means of the Non-public Securities Litigation Reform Act of 1995. These statements are primarily based on the beliefs and assumptions of administration primarily based on data out there to it on the time such statements are made. Kaiser Aluminum cautions that any forward-looking statements aren’t ensures of future efficiency and contain vital dangers and uncertainties, and that precise outcomes could fluctuate materially from these within the forward-looking statements on account of numerous elements. These elements embody: (a) the effectiveness of administration’s methods and selections, together with strategic investments, capital spending methods processes and countermeasures applied to handle operational and provide chain challenges, and the execution of these methods; (b) basic financial and enterprise circumstances, together with the impression of the worldwide outbreak of Coronavirus Illness 2019 and governmental and different actions taken in response, cyclicality, reshoring, provide interruptions, together with the newest disruptions ensuing from the provision demand imbalances within the magnesium and silicon markets, and different circumstances that impression demand drivers within the aerospace/excessive energy, automotive, basic engineering, packaging and different finish markets the Firm serves; (c) the Firm’s capacity to take part in mature and anticipated new automotive applications anticipated to launch sooner or later and efficiently launch new automotive applications; (d) modifications or shifts in protection spending as a consequence of competing nationwide priorities; (e) pricing, market circumstances and the Firm’s capacity to successfully execute its industrial and labor methods, go by means of price will increase, together with the establishment of surcharges, and flex prices in response to altering financial circumstances and inflation; (f) developments in expertise; (g) the impression of the Firm’s future earnings, money flows, monetary situation, capital necessities and different elements on its monetary energy and suppleness; (h) new or modified statutory or regulatory necessities; (i) the profitable integration of the acquired operations and applied sciences proceed to drive revolutionary options and additional advance its capabilities and (j) different danger elements summarized within the Firm’s experiences filed with the Securities and Trade Fee, together with the Firm’s Kind 10-Ok for the 12 months ended December 31, 2021. The Firm undertakes no responsibility to replace any forward-looking assertion to adapt the assertion to precise outcomes or modifications within the Firm’s expectations.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

STATEMENTS OF CONSOLIDATED LOSS (UNAUDITED) ⁽¹⁾

¹   Please discuss with the Firm’s Kind 10-Q for the quarter ended June 30, 2022 for element concerning the gadgets within the desk.
²   Diluted shares for EPS are calculated utilizing the treasury inventory methodology and have been excluded from the computation of web loss per share for all intervals introduced as their inclusion would have been anti-dilutive.

KAISER ALUMINUM CORPORATION AND SUBSIDIARY COMPANIES

CONSOLIDATED BALANCE SHEETS (UNAUDITED) ⁽¹⁾

¹   Please discuss with the Firm’s Kind 10-Q for the quarter ended June 30, 2022 for element concerning the gadgets within the desk.

Reconciliation of Non-GAAP Measures – Consolidated
(Unaudited)

(In thousands and thousands of {dollars}, besides share and per share quantities)