Universal Stainless Announces Improved Third Quarter Results
Oct 19, 2000
Universal Stainless Announces Improved Third Quarter Results
Universal Stainless Announces Improved Third Quarter Results
The Company's growing earnings have resulted in an increase in itsestimated effective income tax rate from 35% to 37.5%, decreasing netincome for the quarter by approximately $148,000 or $0.02 per dilutedshare.
Mr. McAninch continued, "Looking ahead to the fourth quarter, we expectto see continued strong demand for our power generation, aerospace andpetrochemical products. However, the combination of increased importsand higher than normal inventory levels is resulting in a softening ofthe service center market. While this will have some impact on ourfourth quarter results, we are optimistic that we can sustain currentlevels of profitability."
Universal Stainless & Alloy Products, Inc. headquartered inBridgeville, Pa., manufactures and markets semi-finished and finishedspecialty steels, including stainless steel, tool steel and certainother alloyed steels. The Company's products are sold to rerollers,forgers, service centers and original equipment manufacturers, whichprimarily include the power generation and aerospace industries.
Except for historical information contained herein, the statements inthis release are forward-looking statements that are made pursuant tothe safe harbor provisions of the Private Securities Litigation ReformAct of 1995. Forward-looking statements involve known and unknown risksand uncertainties which may cause the Company's actual results infuture periods to differ materially from forecasted results. Thoserisks include, among others, risks associated with the receipt andtiming of future customer orders, risks associated with themanufacturing process and production yields, risks related to plant andequipment additions and maintenance. Certain of these risks and otherrisks are described in the Company's filings with the Securities andExchange Commission (SEC) over the last 12 months, copies of which areavailable from the SEC or may be obtained upon request from theCompany.
Universal Stainless Announces Improved Third Quarter Results
BRIDGEVILLE, Pa., October 19, 2000 -- Universal Stainless & AlloyProducts, Inc. (Nasdaq:USAP) today announced improved financial resultsfor the third quarter ended September 30, 2000.
Quarter Ended Nine Months Ended
Sept. 30, Sept. 30,
2000 1999 2000 1999
Net sales $20,809,000 $16,110,000 $57,910,000 $46,083,000
EBITDA $ 3,300,000 $ 1,433,000 $ 8,394,000 $ 3,533,000
Net income $ 1,438,000 $ 455,000 $ 3,700,000 $ 935,000
Earnings per
diluted share $ 0.24 $ 0.07 $ 0.61 $ 0.15
Mac McAninch, President and Chief Executive Officer of UniversalStainless, commented, "Our third quarter results continued the positivesales and earnings trend we have seen at the Company throughout 2000.During the quarter, our performance reflected improved demand from ourforging, OEM and service center customers, which resulted in rapidgrowth in sales. Demand for our power generation and aerospace productscontinues to be strong, and we have also experienced increased demandfrom the petrochemical market. Profitability improved as a result ofthe higher sales levels, the implementation of an alloy surchargemechanism, increased capacity utilization and careful cost management.Shipments of bar products increased as we continued to improve theoperating performance of our bar operations. In addition, our salesrevenue from Titusville special shape products increased by 19% and 42%for the three- and nine- month periods ended September 30, 2000, incomparison to year-ago periods." The Company's growing earnings have resulted in an increase in itsestimated effective income tax rate from 35% to 37.5%, decreasing netincome for the quarter by approximately $148,000 or $0.02 per dilutedshare.
Mr. McAninch continued, "Looking ahead to the fourth quarter, we expectto see continued strong demand for our power generation, aerospace andpetrochemical products. However, the combination of increased importsand higher than normal inventory levels is resulting in a softening ofthe service center market. While this will have some impact on ourfourth quarter results, we are optimistic that we can sustain currentlevels of profitability."
Universal Stainless & Alloy Products, Inc. headquartered inBridgeville, Pa., manufactures and markets semi-finished and finishedspecialty steels, including stainless steel, tool steel and certainother alloyed steels. The Company's products are sold to rerollers,forgers, service centers and original equipment manufacturers, whichprimarily include the power generation and aerospace industries.
Except for historical information contained herein, the statements inthis release are forward-looking statements that are made pursuant tothe safe harbor provisions of the Private Securities Litigation ReformAct of 1995. Forward-looking statements involve known and unknown risksand uncertainties which may cause the Company's actual results infuture periods to differ materially from forecasted results. Thoserisks include, among others, risks associated with the receipt andtiming of future customer orders, risks associated with themanufacturing process and production yields, risks related to plant andequipment additions and maintenance. Certain of these risks and otherrisks are described in the Company's filings with the Securities andExchange Commission (SEC) over the last 12 months, copies of which areavailable from the SEC or may be obtained upon request from theCompany.
UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands except per share information)
(Unaudited)
CONSOLIDATED STATEMENT OF OPERATIONS
For the Quarter Ended For the Nine Months Ended
September 30, September 30,
2000 1999 2000 1999
Net sales $20,809 $16,110 $57,910 $46,083
Cost of products sold 16,839 14,210 47,469 41,111
Selling and
administrative expenses 1,271 1,007 3,806 2,991
Operating income 2,699 893 6,635 1,981
Other income (expense) (259) (170) (715) (496)
Income before taxes 2,440 723 5,920 1,485
Income taxes 1,002 268 2,220 550
Net income $ 1,438 $ 455 $ 3,700 $ 935
Earnings per share:
Basic $ 0.24 $ 0.07 $ 0.61 $ 0.15
Diluted $ 0.24 $ 0.07 $ 0.61 $ 0.15
Weighted average shares of
Common Stock outstanding
Basic 6,076,839 6,097,417 6,073,973 6,121,336
Diluted 6,081,727 6,097,417 6,078,094 6,121,336
Tons shipped 11,561 10,594 32,110 32,108
EBITDA $ 3,300 $ 1,433 $ 8,394 $ 3,533
BALANCE SHEET DATA
September 30, December 31,
2000 1999
Current assets $35,785 $30,275
Net property, plant & equipment 38,383 36,989
Other assets 647 915
$74,815 $68,179
Current liabilities $12,110 $ 9,475
Long-term debt 9,374 10,005
Deferred taxes 5,953 5,046
Total Liabilities 27,437 24,526
Stockholders' equity 47,378 43,653
$74,815 $68,179
Contacts: Universal Stainless & Alloy Products, Inc. Clarence "Mac" McAninch President & CEO (412) 257-7600 Morgen-Walke Associates Gordon McCoun, Eric Boyriven Media contact: Steve DiMattia (212) 850-5600
