Ak Steel Holding Corp (NYSE:AKS) Q1 2018 Earnings Conference Call - Preliminary Transcript

Apr 30, 2018 • 11:00 am ET


Ak Steel Holding Corp (NYSE:AKS) Q1 2018 Earnings Conference Call - Preliminary Transcript


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Good morning, ladies and gentlemen, and welcome to AK Steel's First Quarter 2018 Financial Results Conference Call. At this time, all participants are in a listen-only mode. Later, we will conduct a question-and-answer session. (Operator Instructions) And as a reminder, this conference call is being recorded.

At this time, I'll turn the conference call over to Doug Mitterholzer, General Manager of Investor Relations and Assistant Treasurer. Please go ahead, sir.

Doug Mitterholzer

Thank you, Candice, and good morning, everyone. I also would like to welcome you to the AK Steel's conference call to review our first quarter 2018 financial and operating results. With us today are, Roger Newport, Chief Executive Officer; Kirk Reich, our President and Chief Operating Officer; and Jaime Vasquez, Vice President-Finance and Chief Financial Officer.

In a moment, Roger will offer his comments on our business and overall market conditions. Following Roger's remarks, Kirk will provide an update on our progress and some of the great projects and initiatives underway at AK Steel. Following Kirk's remarks, Jaime will review our first quarter 2018 financial results, and together, we will field your questions.

As noted on Slide 3, our comments today will include forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934. Included among those forward-looking statements will be any comments concerning our expectations as to items such as future shipments, product mix, prices, costs, operating profit, EBITDA, or liquidity. Please note that our actual results may differ materially from what is contained in the forward-looking statements provided during this call.

Information concerning factors that could cause such material differences in results is contained in our earnings release issued earlier today. Except as required by law, the Company disclaims any obligation to update any forward-looking statements to reflect future developments or events. To the extent that we refer to material information that includes non-GAAP financial measures, the reconciliation information required by Regulation G is available on the Company's website at www.aksteel.com.

With that, here is Roger with his comments. Roger?

Roger Newport

Thank you, Doug. Good morning and thanks for joining us on our call. I am pleased to report our solid earnings in the first quarter reflecting an overall good start to 2018. For the first quarter, we reported net income of $29 million and adjusted EBITDA of $119 million. This includes cost associated with the unplanned outage at our Middletown Works caster in January, which negatively impacted our 1Q results by $27 million.

Moving to Slide 5, throughout all that we do, the safety of our employees is our highest priority. Looking back at the full year of 2017, our safety performance was more than four times better than the industry average is and once again our team delivered strong results in this regard with three of our facilities working the entire first quarter without a single OSHA recordable case.

This continues to demonstrate that the ultimate goal of zero workplace accidents is indeed possible. I commend all of our employees for embracing safe work