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Kaiser Aluminum (KALU)

Kaiser Aluminum Corporation, headquartered in Foothill Ranch, Calif., is a leading producer of semi-fabricated specialty aluminum products, serving customers worldwide with highly-engineered solutions for aerospace and high-strength, packaging, custom automotive, general engineering, and other industrial applications. The Company's North American facilities produce value-added sheet, plate, extrusions, rod, bar, tube, and wire products, adhering to traditions of quality, innovation, and service that have been key components of the culture since the Company was founded in 1946. The Company's stock is included in the Russell 2000® index and the S&P Small Cap 600® index.

Company profile

Ticker
KALU
Exchange
CEO
Keith A. Harvey
Employees
Incorporated
Location
Fiscal year end
SEC CIK
Subsidiaries
Kaiser Aluminum Investments Company • Kaiser Aluminum Fabricated Products, LLC • Kaiser Aluminum Washington, LLC • Kaiser Aluminum Warrick, LLC • Principal Domestic Operations • Principal Worldwide • Canada – Kaiser Aluminum Canada Limited • China – Kaiser Aluminum Beijing Trading Company ...
IRS number
943030279

KALU stock data

Calendar

27 Jul 22
20 Aug 22
31 Dec 22
Quarter (USD) Jun 22 Mar 22 Dec 21 Sep 21
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Annual (USD) Dec 21 Dec 20 Dec 19 Dec 18
Revenue
Cost of revenue
Operating income
Operating margin
Net income
Net profit margin
Cash on hand
Change in cash
Diluted EPS
Cash burn rate (est.) Burn method: Change in cash Burn method: Operating income Burn method: FCF (opex + capex)
Last Q Avg 4Q Last Q Avg 4Q Last Q Avg 4Q
Cash on hand (at last report) 249.4M 249.4M 249.4M 249.4M 249.4M 249.4M
Cash burn (monthly) 8.6M 3.96M 5.97M (no burn) (no burn) (no burn)
Cash used (since last report) 14.5M 6.67M 10.06M n/a n/a n/a
Cash remaining 234.9M 242.73M 239.34M n/a n/a n/a
Runway (months of cash) 27.3 61.3 40.1 n/a n/a n/a

Beta Read what these cash burn values mean

Date Owner Security Transaction Code Indirect 10b5-1 $Price #Shares $Value #Remaining
10 Aug 22 West Neal E Common Stock, par value $0.01 per share Sell Dispose S Yes Yes 73.38 400 29.35K 2,580
15 Jul 22 Harvey Keith Common Stock, par value $0.01 per share Payment of exercise Dispose F No No 74.79 11,805 882.9K 59,345
11 Jul 22 West Neal E Common Stock, par value $0.01 per share Sell Dispose S Yes Yes 73.52 400 29.41K 2,980
10 Jun 22 West Neal E Common Stock, par value $0.01 per share Sell Dispose S Yes Yes 92.56 400 37.02K 3,380
7 Jun 22 Weaver Brant Common Stock, par value $0.01 per share Sell Dispose S No No 102.1479 282 28.81K 5,811
99.3% owned by funds/institutions
13F holders Current Prev Q Change
Total holders 173 186 -7.0%
Opened positions 19 23 -17.4%
Closed positions 32 25 +28.0%
Increased positions 49 63 -22.2%
Reduced positions 78 68 +14.7%
13F shares Current Prev Q Change
Total value 1.25B 1.47B -14.7%
Total shares 15.83M 15.61M +1.4%
Total puts 35.4K 103.7K -65.9%
Total calls 28.2K 29.9K -5.7%
Total put/call ratio 1.3 3.5 -63.8%
Largest owners Shares Value Change
BLK Blackrock 2.65M $209.96M +1.4%
Vanguard 1.86M $147.22M -1.2%
Victory Capital Management 965.72K $76.38M -4.3%
STT State Street 919.08K $72.69M -18.8%
MCQEF Macquarie 912.61K $72.18M +0.1%
Dimensional Fund Advisors 773.83K $61.2M -0.1%
Barrow Hanley Mewhinney & Strauss 565.98K $44.76M NEW
IVZ Invesco 399.41K $31.59M +2.1%
William Blair Investment Management 382.9K $30.28M -2.6%
SLFPY Standard Life Aberdeen 363.11K $28.72M -27.7%
Largest transactions Shares Bought/sold Change
Barrow Hanley Mewhinney & Strauss 565.98K +565.98K NEW
STT State Street 919.08K -213.2K -18.8%
SLFPY Standard Life Aberdeen 363.11K -139.43K -27.7%
Deprince Race & Zollo 111.18K +80.72K +265.1%
American Century Companies 72.02K +67.27K +1413.7%
MS Morgan Stanley 161.28K +65.63K +68.6%
Renaissance Technologies 70.6K +65.6K +1312.0%
Parametric Portfolio Associates 0 -62.7K EXIT
Russell Investments 67.49K +58.89K +684.9%
Amundi 157.81K -52.45K -24.9%

Financial report summary

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Competition
Howmet AerospaceNovelisAlerisConstellium SEBESTArconic
Risks
  • The COVID-19 pandemic has impacted and could in the future materially and adversely affect our business.
  • The COVID-19 pandemic caused downturns in the commercial aerospace industry and other commercial disruptions, which have adversely affected our business, and could cause additional downturns in the automotive and ground transportation industries, which would further adversely affect our business.
  • We operate in a highly competitive industry.
  • Reductions in demand for our products may be more severe than, and may occur prior to, reductions in demand for our customers’ products.
  • Our customers may reduce their demand for aluminum products in favor of alternative materials.
  • Our customers may reduce their demand for our products if the government relaxes fuel efficiency standards or if oil prices remain low for a protracted period of time.
  • The commercial aerospace industry is cyclical and downturns in the commercial aerospace industry could adversely affect our business.
  • Downturns in the automotive and ground transportation industries could adversely affect our business.
  • Changes in consumer demand for particular motor vehicles could adversely affect our business.
  • Aluminum beverage and food packaging products are subject to competition from substitute products and decreases in demand, which could result in lower profits and reduced cash flows.
  • We depend on a core group of significant customers.
  • We are exposed to risks related to our receivables supply chain financing arrangements.
  • Our industry is very sensitive to foreign economic, regulatory and political factors that may adversely affect our business.
  • We may experience difficulties in the launch or production ramp-up of new products which could adversely affect our business.
  • Unplanned events may interrupt our production operations, which may adversely affect our business.
  • We may face challenges to our intellectual property rights which could adversely affect our reputation, business and competitive position.
  • We may not be able to successfully implement our productivity enhancement and cost reduction initiatives that are necessary to offset competitive price pressure.
  • Our investment and other expansion projects may not be completed, start up as scheduled or deliver the expected capacity and other benefits.
  • We may not realize the benefits of the Warrick rolling mill acquisition.
  • We are dependent upon Alcoa Corporation (“Alcoa”) for certain resources essential to the day-to-day operation of our business at Warrick.
  • Our business could be adversely affected by pricing and availability of primary aluminum.
  • Our business could be adversely affected by the pricing and availability of recycled scrap aluminum.
  • Our business could be adversely affected by the pricing and availability of alloying metals.
  • Reduced pricing for aluminum can reduce our borrowing availability and cause our liquidity to decline.
  • Our hedging programs have been and could continue to be adversely impacted by fluctuations as a result of the impacts of the COVID-19 pandemic.
  • Our hedging programs may limit the income and cash flows we would otherwise expect to receive if our hedging program were not in place and may otherwise affect our business.
  • Covenants and events of default in our debt instruments could limit our ability to undertake certain types of transactions and adversely affect our liquidity.
  • Restrictive covenants in our debt instruments contain significant qualifications and exceptions.
  • Servicing our debt requires a significant amount of cash and we may not have sufficient cash flow from our business to pay our debt.
  • The interest rate used in certain of our debt agreements and our customers’ supply chain financing arrangements are priced using LIBOR and are subject to risks associated with the transition from LIBOR to an alternative reference rate.
  • We are a holding company and depend on our subsidiaries for cash to meet our obligations and pay any dividends.
  • Our failure to maintain satisfactory labor relations could adversely affect our business.
  • An adverse decline in the liability discount rate, lower-than-expected investment return on pension assets and other factors could affect our business, financial condition, results of operations or amount of pension funding contributions in future periods.
  • The USW has director nomination rights through which it may influence us, and interests of the USW may not align with our interests or the interests of our stockholders, debt holders and other stakeholders.
  • Environmental compliance, cleanup and damage claims may decrease our cash flow and adversely affect our business.
  • We are subject to risks relating to our information technology systems.
  • We may not be able to utilize all of our net operating loss carryforwards.
  • We could engage in or approve transactions involving our common shares that impair the use of our federal income tax attributes.
  • Payment of dividends may not continue in the future and our payment of dividends and stock repurchases are subject to restrictions.
  • Delaware law and our governing documents may impede or discourage a takeover, which could adversely affect the value of our common stock.
Management Discussion
  • Net Sales. We reported Net sales for 2021 of $2,622.0 million, compared to $1,172.7 million for 2020. The increase in Net sales during 2021 compared to 2020 reflected a 619.2 million pound (123%) increase in shipment volume and a $0.01/lb increase in average realized sales price per pound. The shipment volume increase reflected: (i) a 541.7 million pound addition in Packaging due to our Warrick acquisition; (ii) a 62.6 million pound (27%) increase in GE products reflecting the reshoring of supply lines in North America and strong demand for our semi-conductor plate; (iii) a 16.7 million pound (178%) increase in our other industrial end market application (“Other products”) reflecting an increase of non-strategic rolled products acquired with the Warrick acquisition; and (iv) a 9.9 million pound (12%) increase in Automotive Extrusions primarily reflecting the recovery from the COVID‑19 pandemic related automotive supply chain shutdowns that occurred during the quarter ended June 30, 2020, partially offset by demand impact due to the ongoing semiconductor chip shortage in the automotive industry, which continues to hamper the return to full production and new program launches. The shipment volume increase was partially offset by an 11.7 million pound (7%) decrease in Aero/HS products reflecting lower demand for our commercial aerospace products as a result of the COVID-19 pandemic. The increase in average realized sales price per pound reflected a $0.41/lb (44%) increase in average Hedged Cost of Alloyed Metal prices per pound, partially offset by a $0.40 (29%) decrease in VAR per pound due primarily to the introduction of lower VAR per pound Packaging products, as well as approximately $14.8 million of additional net sales recognized in 2020 within Aero/HS products related to modifications to the 2020 customer declarations under multi-year contracts. See the table in “Selected Operational and Financial Information” below for further details.

Content analysis

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