Universal Stainless & Alloy Products, Inc. (NASDAQ: USAP) explored its earning in Quarter Four

On DAY, Shares of Universal Stainless & Alloy Products, Inc. (NASDAQ: USAP) price closed at $17.01 in the trading session. After opening the first trading session at $16.91 , it registered a day’s high of $17.08 and touched a day’s low of $16.43. The last trade was registered at price of $16.92 and volume was 41,186 as compared to it’s an average volume of 39,690 .

Universal Stainless & Alloy Products, Inc. (NASDAQ: USAP) recently stated that net sales for the fourth quarter of 2018 were $57.1M, a raise of 13.5% from $50.3M in the fourth quarter of 2017, although below 2018 third quarter revenues of $69.1M. Fourth quarter 2018 aerospace sales totaled $35.1M, up 23.7% from the fourth quarter of 2017.

Sales of premium alloys in the fourth quarter of 2018 totaled $8.1M, or 14.2% of sales, contrast with $7.3M, or 14.6% of sales, in the fourth quarter of 2017, and $9.2M, or 13.3% of sales, in the third quarter of 2018.

Full year 2018 sales increased 26.3% to a record $255.9M from $202.6M in 2017. Sales of premium alloys were also at a record level for full year 2018 increasing 50.7% to $41.1M, or 16.1% of sales. 2017 premium alloy sales were $27.3M or 13.5% of sales.

The Company’s gross margin for the fourth quarter was 11.3% of sales, contrast with 12.3% of sales in the fourth quarter of 2017, and 15.1% of sales in the third quarter of 2018. Margins were negatively influenced by continued cost increases in supply items, especially electrodes, coupled with misalignment of consumer surcharges.

Selling, general and administrative expenses were $5.6M, or 9.7% of sales, for the fourth quarter of 2018, contrast with $5.1M, or 10.2% of sales, in the fourth quarter of 2017, and $5.1M, or 7.4% of sales, for the third quarter of 2018.

Net income for the fourth quarter of 2018 totaled $0.6M, or $0.07 per diluted share, (which includes an additional 1.4M weighted average shares outstanding Because of the second quarter 2018 equity issuance), contrast with net income of $7.9M, or $1.06 per diluted share, in the fourth quarter of 2017, which included a net tax benefit of $1.06 per diluted share primarily attributable to the new federal tax legislation. Net income in the 2018 third quarter totaled $3.9M, or $0.44 per diluted share.

The Company’s EBITDA for the fourth quarter of 2018 was $5.4M, contrast with $5.8M in the fourth quarter of 2017, and $10.1M in the third quarter of 2018. Full year 2018 EBITDA increased 55.6% to $35.6M from $22.9M in 2017.

Managed working capital at December 31, 2018 totaled $123.0M contrast with $136.9M at September 30, 2018.

Backlog (before surcharges) at December 31, 2018 was a record $126.2M, a raise of 13.3% from September 30, 2018, and 62.5% higher than at the end of the 2017 fourth quarter.

Fourth quarter operating cash flow improved from the previous quarter and resulted in a debt reduction of $15.8M in the quarter. The Company’s total debt at December 31, 2018 declined to $46.7M, contrast with $62.5M at the end of the third quarter of 2018 and $79.7M at the end of the fourth quarter of 2017.

Capital expenditures for the fourth quarter of 2018 totaled $2.2M contrast to $6.6M for the third quarter of 2018 and $3.3M in the fourth quarter of 2017. Fourth quarter capital expenditures were driven by the Company’s mid-size bar cell project at its Dunkirk, NY facility, which began the commissioning process late in the fourth quarter. Benefits related to this project are predictable to include both cost and inventory reductions, as well as quality and cycle time improvements.

Leave a Reply

Your email address will not be published. Required fields are marked *