Allegheny Technologies Incorporated (NYSE:ATI) Q1 2022 Earnings Conference Call May 4, 2022 10:30 AM ET

Company Participants

Adam Pechart - IR

Robert Wetherbee - Chairman, President & CEO

Don Newman - EVP, Finance & CFO

Conference Call Participants

Seth Seifman - JPMorgan

Richard Safran - Seaport Global

Phil Gibbs - KeyBanc Capital

Gautam Khanna - Cowen

Josh Sullivan - The Benchmark Company

Josh Corn - Barclays

Paretosh Misra - Berenberg

Timna Tanners - Wolfe Research

Operator

Hello, everyone and welcome to the ATI's First Quarter 2022 Results Call. My name is Charlie, and I'll be the coordinator for today's call. You'll have the opportunity to ask a question at the end of the presentation. [Operator Instructions]

I will now hand over to your host Adam Pechart to begin. Adam, please go ahead.

Adam Pechart

Thank you. Good morning, and welcome to ATI's first quarter 2022 earnings call. This is Adam Pechart filling in for Scott Minder, ATI's VP of Investor Relations and Treasurer, who is not with us today due to illness. Today's discussion is being broadcast on our website.

Participating in today's call are Bob Wetherbee, Board Chair, President and CEO; and Don Newman, Executive Vice President and CFO. Bob and Don will focus on our first quarter highlights and key messages. A supplemental presentation is available on our website. It provides additional color and details on our results and outlook. After our prepared remarks, we'll open the line for questions.

As a reminder, our forward-looking statements are subject to various assumptions and caveats. These are noted in the earnings release and in the slide presentation.

Now, I'll turn the call over to Bob.

Robert Wetherbee

Thanks, Adam. Good morning and thanks for joining us. What we accomplished this quarter builds additional momentum for what we anticipate will be a very strong year for ATI. Our team is performing well, continuing to execute operationally and strategically. Our market conditions are improving. Customer demand accelerated in the latter part of the quarter. These all enhanced our topline growth rate and added to our earnings.

I'll use my time today to tell you about three things that really stand out for me about our performance. First, we delivered overall Q1 EBITDA margins of 15%. That's an increase of 430 basis points versus full year 2019. This margin level was achieved despite sales that were nearly 20% lower than 2019 on a run rate basis. Comparisons to 2020 and 2021 are even more favorable. We have fundamentally transformed our business over the past two years. Our results increasingly reflect the value of the actions we've taken.