• Fourth Quarter Backlog Is Up over 17% from Third Quarter on Stronger Fourth Quarter Bookings
• Full Year Positive Cash Flow of $28.6 Million; Debt Reduced by $16.9 Million in 2013

BRIDGEVILLE, Pa., Feb. 5, 2014 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today reported net sales of $40.3 million for the fourth quarter of 2013 and a net loss of $2.9 million, or $0.41 per diluted share, including a write-down of a deferred state tax asset of approximately $1.0 million, or $0.14 per diluted share. In the fourth quarter of 2012, net sales were $47.2 million and net income was $1.1 million, or $0.16 per diluted share.

Compared with the fourth quarter of 2012, tons shipped to the aerospace market increased 6% and power generation shipments were up 8%, while shipments to the oil and gas market were down 51% and heavy equipment market shipments were down 2%. However, backlog (before surcharges) in the fourth quarter increased by 17.2% to $46.8 million from the third quarter of 2013 as a result of stronger fourth quarter 2013 bookings.   

The Company's gross margin for the fourth quarter of 2013 was $1.5 million, or 3.7% of sales, compared with a gross margin as a percentage of sales of 12.7% in the fourth quarter of 2012. The decrease was primarily the result of lower shipments and operating activity, product mix and the misalignment of surcharges to raw material costs.  As a result, the Company incurred an operating loss of $2.6 million in the fourth quarter of 2013 compared to operating income of $1.8 million in the fourth quarter of 2012.

For full year 2013, the Company's net sales were $180.8 million and the net loss was $4.1 million, or $0.58 per diluted share. That compares with net sales of $251.0 million and net income of $14.6 million, or $2.02 per diluted share, for 2012.

The Company continued to generate positive cash from operations, which totaled $7.5 million in the fourth quarter of 2013 and $28.6 million for the full year of 2013.  In turn, the Company repaid $4.8 million of its debt during the fourth quarter and $16.9 million for all of 2013, primarily as a result of lowering inventory levels by $11.7 million. Capital expenditures in 2013 totaled $11.8 million compared to $35.1 million for 2012.     

Chairman, President and CEO Dennis Oates commented: "Our fourth quarter sales level was in line with our expectations, although the mix remained weighted towards lower margin semi-finished products. 

"In contrast to most of the past year, we saw a substantial improvement in our order entry in the fourth quarter, which increased 26% sequentially and 42% from the fourth quarter of 2012. 

"We also continued to achieve strong cash flow from operations in the quarter through our continued focus on managing inventories, controlling capital spending and reducing debt.

"The renewed pick-up in order entry started in October 2013 and has continued thus far in the first quarter, with our North Jackson facility strongly participating in the improvement. While we expect shipments for those orders to build progressively as we go through 2014, the improvement supports a more positive view about the current year, especially the second half, based on current market expectations. 

"In the meantime, we will continue to execute our strategic plan to further realize the benefits of North Jackson and build upon the substantial progress in customer approvals, industry certifications achieved in 2013 and our continued new product development."

Webcast

The Company has scheduled a conference call for today, February 5, at 10:00 a.m. (Eastern) to discuss fourth quarter and full year 2013 results. A simultaneous webcast will be available on the Company's website at www.univstainless.com, and thereafter archived on the website through the end of the first quarter of 2014.  

About Universal Stainless & Alloy Products, Inc.

Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, PA, manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company's products are used in a variety of industries, including aerospace, power generation, oil and gas, and heavy equipment manufacturing. Established in 1994, the Company, with its experience, technical expertise, and dedicated workforce, stands committed to providing the best quality, delivery, and service possible. More information is available at www.univstainless.com.

Forward-Looking Information Safe Harbor

Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to differ materially from forecasted results. Those risks include, among others, the concentrated nature of the Company's customer base to date and the Company's dependence on its significant customers; the receipt, pricing and timing of future customer orders; changes in product mix; the limited number of raw material and energy suppliers and significant fluctuations that may occur in raw material and energy prices; risks related to property, plant and equipment,  including the Company's reliance on the continuing operation of critical manufacturing equipment; risks associated with labor matters; the Company's ongoing requirement for continued compliance with laws and regulations, including applicable safety and environmental regulations; the ultimate outcome of the Company's current and future litigation and matters; risks related to acquisitions that the Company may make; and the impact of various economic, credit and market risk uncertainties. Many of these factors are not within the Company's control and involve known and unknown risks and uncertainties that may cause the Company's actual results in future periods to be materially different from any future performance suggested herein. Any unfavorable change in the foregoing or other factors could have a material adverse effect on the Company's business, financial condition and results of operations. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company's control. Certain of these risks and other risks are described in the Company's filings with the Securities and Exchange Commission (SEC) over the last 12 months, copies of which are available from the SEC or may be obtained upon request from the Company. 

- TABLES FOLLOW -

CONTACT: Dennis M. Oates

         Chairman,

         President and CEO

         (412) 257-7609

         

         Michael D. Bornak

         VP Finance, CFO

         and Treasurer

         (412) 257-7606

         

         June Filingeri

         President

         Comm-Partners LLC

         (203) 972-0186