Ternium S.A. (NYSE:TX) Q3 2022 Earnings Conference Call November 3, 2022 8:00 AM ET

Company Participants

Sebastian Marti - Global Investor Relations & Compliance Senior Director

Maximo Vedoya - Chief Executive Officer

Pablo Brizzio - Chief Financial Officer

Conference Call Participants

Caio Greiner - BTG Pactual

Jon Brandt - HSBC

Carlos De Alba - Morgan Stanley

Thiago Lofiego - Bradesco

Alfonso Salazar - Scotiabank

Timna Tanners - Wolf Research

Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Ternium Third Quarter 2022 Earnings Call. [Operator Instructions] Thank you. Sebastian Marti, you may begin your conference.

Sebastian Marti

Good morning. Thank you for joining us today. My name is Sebastian Marti, and I am Ternium's Global Investor Relations and Compliance Senior Director. Ternium released today its financial results for the third quarter and first nine months of 2022. This call is complementary to that presentation. Joining me today are Ternium's Chief Executive Officer, Maximo Vedoya; and the company's Chief Financial Office0072, Pablo Brizzio, who will discuss Ternium's business environment and performance. At the conclusion of our prepared remarks, there will be a Q&A session.

Before we begin, I would like to remind you that this conference call contains forward-looking information and that actual results may vary from those expressed or implied. Factors that could affect results are contained in our filings with the Securities and Exchange Commission and on Page two in today's webcast presentation. You will also find any reference to non-IFRS financial measures reconciled to the most directly comparable IFRS measures in the press release issued this morning.

With that, I'll turn the call over to Mr. Vedoya.

Maximo Vedoya

Thank you, Sebastian. Good morning, and thank you all for participating in our conference call today. Ternium reported a good set of results for the third quarter with adjusted EBITDA of $679 million on a margin of more than $200 per ton. This is equivalent to adjusted EBITDA margin of 16% of sales, a level that is within Ternium's historical margin range. On top of this, we had a very strong cash generation in the quarter. Cash from operations was more than $1 billion, aided by a significant working capital release.

Last year, we transitioned from an annual payment schedule to a twice [indiscernible] payment with an advance in November and a final payment in May. I believe this change in our dividend payment schedule was a positive development that underscores our long-term commitment to the return to our shareholders. In this line, Ternium's Board of Directors announced today an interim dividend payment of $0.90 per ADS, equivalent to $177 million that will be paid on November 17. This represents an increase of $0.10 per ADS compared to last year interim dividend payment.