TimkenSteel Corporation (NYSE:TMST) Q3 2023 Earnings Call Transcript

Mike Williams: For next year, John, we’re in the planning process right now. And we’ll do that through probably mid-December, and then we’ll have a discussion with the Board. So at this time, I don’t want to make that public. It would only be a guess at this time anyways. But at the year-end, we’ll be able to give much more clarity on the CapEx for 2024. I don’t — I would say this, though. I don’t think there’s anything in the planning right now that would significantly increase it.

John Franzreb: Okay. And regarding the tax rate, it’s kind of been volatile for the past couple of quarters. Any thoughts on how you’re going to finish the year, full-year or fourth quarter, either one would be helpful?

Mike Williams: Kris, do you want to take that one?

Kris Westbrooks: Sure, yes. Thanks, John. Looking at that year-to-date rate around 27% is where we’d be targeting for the end of the year. The things that are driving the rate higher are some of these non-deductible costs that we experienced earlier in the year. So as we get into the next year, I think it should moderate absent those non-deductible items.

John Franzreb: Thank you, Chris. And just lastly on capital allocation. You’ve been buying back shares rather aggressively. Do you expect to continue to do so in the fourth quarter? Can you just talk a little bit about excess cash and plans forward? Especially in light potentially being more aggressive in M&A, so maybe contextualize at all?

Kris Westbrooks: So we put in the queue in the month of October, we bought back around 94,000 shares, I believe, about $2 million of buybacks in the month of October. And we’re just putting a new plan in place now they’ll go out through our next filing date. So I’m not going to speak specifically to that. But more to come as we reported in February, but we’re definitely thinking about the future, adequately managing our cash as we approach year-end, managing working capital like we always do and being prudent in all those areas.

John Franzreb: Okay. Thank you for taking my follow-ups.

Mike Williams: Thanks, John.

Operator: [Operator Instructions] We have no further questions in queue. I’d like to turn the call back over to Jennifer Beeman for closing remarks.

Jennifer Beeman: Thank you all for joining us today, and that concludes our call.

Operator: This concludes today’s conference call. Thank you for your participation. You may now disconnect.