Haynes International, Inc. Reports First Quarter Fiscal 2024 Financial Results
- Record first quarter net revenues despite the unplanned outage
- 9.9% increase in backlog year-over-year
- Regular quarterly cash dividend declared
- Gross margin decrease to 16.8% from last year's 17.4%
- Decline in backlog sequentially
- Decrease in revolver balance by $5.9 million during the first quarter
Insights
The reported first quarter net revenues of $147.4 million, surpassing the previous year's figure of $132.7 million, indicates a robust year-on-year growth for the company, despite operational challenges. This growth trajectory, especially when considering the adverse effects of the Kokomo plant outage, may be seen by investors as a testament to the company's resilience and potential to recover from production setbacks. The 9.9% year-over-year increase in backlog, primarily driven by the aerospace and industrial gas turbine sectors, potentially signals sustained demand, which could translate into future revenue stability and growth.
However, the slight dip in gross margin from 17.4% to 16.8% suggests that the company's profitability is under pressure, likely due to the mentioned raw material headwinds and production outages. The adjusted gross margin figures serve to normalize these impacts, providing a clearer picture of underlying performance. The nuanced understanding of these figures is critical for stakeholders to assess the health and efficiency of the company's operations.
Furthermore, the decrease in revolver balance coupled with the strong liquidity position afforded by the $200 million credit facility suggests prudent financial management. The planned capital expenditures of $25 to $35 million reflect a commitment to long-term growth through investment, which could be a positive indicator for future competitiveness.
The record first quarter revenue in the context of an unplanned outage underscores the robust market demand for the company's high-performance alloys, particularly in the aerospace and industrial gas turbine markets. These sectors are known for their stringent material requirements and the company's ability to secure a growing backlog suggests a competitive edge and a strong market position. The mention of strength in these markets may indicate broader sectoral trends, such as increased investment in aerospace technology or infrastructure, which could have implications for other companies in the supply chain.
It is important to note the sequential decline in backlog, attributed to lower quoted lead times, which can affect ordering patterns. This could imply a shift in market dynamics or customer procurement strategies, which stakeholders should monitor for potential impacts on future sales cycles and revenue recognition.
Additionally, the declaration of a regular quarterly cash dividend signals confidence in the company's financial stability and a commitment to shareholder returns, which can be an attractive proposition for investors seeking both growth and income.
The reference to 'raw material headwinds' from falling nickel prices reflects broader economic conditions affecting the company's cost structure. Nickel is a key input for high-performance alloys and its price volatility can significantly impact margins. The company's ability to navigate these headwinds while still achieving record revenues is noteworthy and speaks to the management's strategic pricing and cost control measures.
In the larger economic context, the performance of a company like this can be seen as a bellwether for industrial demand and economic activity, particularly in high-tech and infrastructure-intensive sectors. The capital investment plans suggest a positive outlook on economic conditions and a willingness to bolster production capacity in anticipation of future demand.
However, stakeholders should remain cognizant of the potential for continued volatility in raw material costs and its implications for the company's cost of goods sold (COGS) and overall profitability. The balance between managing these costs and maintaining competitive pricing will be critical for the company's financial health in the coming quarters.
- First quarter net revenues of
$147.4 million representing a first quarter revenue Company record, despite being unfavorably impacted by a three week unplanned outage at the 4-high hot rolling mill in the Kokomo plant, which delayed production and shipments. This compares to$132.7 million in last year’s first quarter. - Gross margin for the first quarter of
16.8% of revenue compared to last year’s17.4% . Excluding the raw material headwind of$5.7 million , adjusted gross margin was an outage impacted20.6% of revenue compared to last year’s$5.6 million headwind and21.6% adjusted gross margin. - First quarter net income of
$7.7 million , or$0.60 per diluted earnings per share, compared to last year’s first quarter of$7.7 million , or$0.61 per diluted earnings per share with both periods having similar raw material headwind amounts. - Backlog of
$448.8 million as of December 31, 2023, up9.9% year-over-year, led by strength in aerospace and industrial gas turbine demand. Sequentially backlog declined$(11.6) million due to lower quoted lead times on certain products which can impact ordering patterns. Aerospace had a slight sequential increase in backlog. - Revolver balance of
$108.9 million , a decrease of$5.9 million during the first quarter of fiscal 2024. Credit facility of$200 million provides strong liquidity moving forward. - Capital investment in first quarter of fiscal year 2024 of
$4.3 million . Total planned capital expenditures for fiscal 2024 estimated at$25 t o$35 million . - Regular quarterly cash dividend of
$0.22 per outstanding share of the Company’s common stock declared.
KOKOMO, Ind., Feb. 05, 2024 (GLOBE NEWSWIRE) -- Haynes International, Inc. (NASDAQ GS: HAYN) (the “Company”), a leading developer, manufacturer and marketer of technologically advanced high-performance alloys, today reported financial results for the first quarter ended December 31, 2023. In addition, the Company announced that its Board of Directors has authorized a regular quarterly cash dividend of
“The continued strength of our aerospace and industrial gas turbine markets resulted in record first quarter revenue. In addition, we are proud of our team’s actions in the quarter to minimize the revenue impact of an unplanned three-week outage at our Kokomo hot rolling mill,” said Michael L. Shor, President and Chief Executive Officer. “While the continuing raw material headwinds from falling nickel prices will impact the second quarter, we continue to focus on what has and will continue to differentiate us, and we remain optimistic about continued strong demand and improving operational momentum through the balance of the year.”
1st Quarter Results
Net Revenues. Net revenues were
Cost of Sales. Cost of sales was
Gross Profit. Gross profit was
Selling, General and Administrative Expense. Selling, general and administrative expense was
Research and Technical Expense. Research and technical expense was
Operating Income. The above factors resulted in operating income in the first quarter of fiscal 2024 of
Nonoperating retirement benefit expense (income). Nonoperating retirement benefit expense (income) was a benefit of
Interest expense. Interest expense was
Income Taxes. Income tax expense was
Net Income. As a result of the above factors, net income in the first quarter of fiscal 2024 was
Volumes and Pricing
Volume shipped in the first quarter of fiscal 2024 was 4.7 million pounds, which was
Aerospace volume decreased by
The Company has an ongoing strategy of increasing margins. This has been achieved by reducing processing costs as well as increasing pricing for the high-value, differentiated products and services it offers. The Company implemented multiple price increases for its contract and non-contract business as market conditions improved and in response to higher inflation. Customer long-term agreements typically have adjustors for specific raw material prices and for changes in the producer price index to help cover general inflationary items. The product average selling price per pound in the first quarter of fiscal 2024 was
Gross Profit Margin Trend Performance
The Company has made a significant strategic effort to improve gross margins over the past few years. As a result of this strategy, the Company reduced the volume breakeven point by over
Gross profit margin was
Backlog
Backlog was
Capital Spending
Capital investment in the first quarter of fiscal 2024 was
Working Capital
Controllable working capital, which includes accounts receivable, inventory, accounts payable and accrued expenses, was
Liquidity
The Company had cash and cash equivalents of
Net cash provided by operating activities in the first three months of fiscal 2024 was
Net cash used in investing activities was
Net cash used in financing activities was
Dividend Declared
On February 5, 2024, the Company announced that the Board of Directors declared a regular quarterly cash dividend of
Guidance
Based on the continued projected growth in both our aerospace and industrial gas turbine markets, the Company believes that revenue and earnings are expected to be higher in the second quarter compared to the first quarter of fiscal 2024, despite the continued raw material headwinds resulting from falling nickel prices.
Earnings Conference Call
In light of the proposed transaction with North American Stainless, Inc. announced earlier today, the Company has cancelled the conference call, previously scheduled for Friday, February 9, 2024, to discuss its results for the first quarter of fiscal 2024.
Non-GAAP Financial Measures
This press release includes certain financial measures, including Adjusted EBITDA for the fiscal quarters ended December 31, 2022 and 2023, Adjusted gross profit and Adjusted gross profit % – excluding the estimated impact of nickel and cobalt fluctuations for the fiscal quarters ended December 31, 2022 and 2023 that have not been calculated in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
The Company believes that these non-GAAP measures provide useful information to investors. Among other things, they may help investors evaluate the Company’s ongoing operations. They can assist in making meaningful period-over-period comparisons and in identifying operating trends that would otherwise be masked or distorted by the items subject to adjustments. Management uses these non-GAAP measures internally to evaluate the performance of the business, including to allocate resources. Investors should consider these non-GAAP measures as supplemental and in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP.
Management has chosen to provide this supplemental information to investors, analysts, and other interested parties to enable them to perform additional analyses of our results and to illustrate our results giving effect to the non-GAAP adjustments. Management strongly encourages investors to review the Company's consolidated financial statements and publicly filed reports in their entirety and cautions investors that the non-GAAP measures used by the Company may differ from similar measures used by other companies, even when similar terms are used to identify such measures.
Reconciliations of Adjusted EBITDA, Adjusted gross profit and Adjusted gross profit % – excluding estimated impacts of nickel and cobalt fluctuations to their most directly comparable financial measure prepared in accordance with GAAP, accompanied by reasons why the Company believes the non-GAAP measures are important, are included in Schedules 6 and 7.
About Haynes International
Haynes International, Inc. is a leading developer, manufacturer and marketer of technologically advanced, high performance alloys, primarily for use in the aerospace, industrial gas turbine and chemical processing industries.
Cautionary Note Regarding Forward-Looking Statements
This press release contains statements that constitute "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, each as amended. All statements other than statements of historical fact, including statements regarding market and industry trends and prospects and future results of operations or financial position, made in this press release are forward-looking. In many cases, you can identify forward-looking statements by terminology, such as “may”, “should”, “expects”, “intends”, “plans”, “anticipates”, “believes”, “estimates”, “predicts”, “potential” or “continue” or the negative of such terms and other comparable terminology. The forward-looking information may include, among other information, statements concerning the Company’s guidance and outlook for fiscal 2024 and beyond, overall volume and pricing trends, cost reduction strategies and their anticipated impact on our results, gross margin and gross margin trends, capital expenditures, demand for our products and operations, expected borrowings under the Company’s revolving credit facility, dividends, the benefits of the proposed acquisition of the Company by a subsidiary of Acerinox S.A. and the associated integration plans, capital expenditure commitments, anticipated future operating performance and results of the Company, the expected management and governance of the Company following the acquisition and expected timing of the closing of the proposed acquisition and other transactions contemplated by the merger agreement governing the proposed acquisition (the “Merger Agreement”). There may also be other statements of expectations, beliefs, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. Readers are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties. Actual results may differ materially from those in the forward-looking statements as a result of various factors, many of which are beyond the Company’s control.
The Company has based these forward-looking statements on its current expectations and projections about future events. Although the Company believes that the assumptions on which the forward-looking statements contained herein are based are reasonable, any of those assumptions could prove to be inaccurate. As a result, the forward-looking statements based upon those assumptions also could be incorrect. Risks and uncertainties may affect the accuracy of forward-looking statements. Some, but not all, of these risks are described in Item 1A. of Part 1 of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2023.
The Company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Schedule 1
| HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited) (in thousands, except per share data) | ||||||||
| Three Months Ended December 31, | ||||||||
| 2022 | 2023 | |||||||
| Net Revenues | $ | 132,673 | $ | 147,357 | ||||
| Cost of Sales | 109,635 | 122,649 | ||||||
| Gross Profit | 23,038 | 24,708 | ||||||
| Selling, general and administrative expense | 10,952 | 12,471 | ||||||
| Research and technical expense | 973 | 1,102 | ||||||
| Operating income | 11,113 | 11,135 | ||||||
| Nonoperating retirement benefit income | (366 | ) | (498 | ) | ||||
| Interest income | (6 | ) | (23 | ) | ||||
| Interest expense | 1,501 | 2,239 | ||||||
| Income before income taxes | 9,984 | 9,417 | ||||||
| Provision for income taxes | 2,245 | 1,715 | ||||||
| Net Income | $ | 7,739 | $ | 7,702 | ||||
| Net Income per share: | ||||||||
| Basic | $ | 0.62 | $ | 0.60 | ||||
| Diluted | $ | 0.61 | $ | 0.60 | ||||
| Weighted Average Common Shares Outstanding | ||||||||
| Basic | 12,455 | 12,642 | ||||||
| Diluted | 12,699 | 12,800 | ||||||
| Dividends declared per common share | $ | 0.22 | $ | 0.22 | ||||
Schedule 2
| HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) | ||||||||
| September 30, | December 31, | |||||||
| 2023 | 2023 | |||||||
| ASSETS | ||||||||
| Current assets: | ||||||||
| Cash and cash equivalents | $ | 10,723 | $ | 14,023 | ||||
| Accounts receivable, less allowance for credit losses of | 106,292 | 96,111 | ||||||
| Inventories | 414,077 | 415,227 | ||||||
| Income taxes receivable | 2,372 | 1,609 | ||||||
| Other current assets | 5,702 | 6,285 | ||||||
| Total current assets | 539,166 | 533,255 | ||||||
| Property, plant and equipment, net | 142,540 | 142,790 | ||||||
| Deferred income taxes | 3,608 | 3,417 | ||||||
| Other assets | 10,523 | 10,876 | ||||||
| Goodwill | 4,789 | 4,789 | ||||||
| Other intangible assets, net | 5,655 | 5,555 | ||||||
| Total assets | $ | 706,281 | $ | 700,682 | ||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||
| Current liabilities: | ||||||||
| Accounts payable | $ | 52,812 | $ | 46,830 | ||||
| Accrued expenses | 18,201 | 17,437 | ||||||
| Income taxes payable | 336 | 301 | ||||||
| Accrued pension and postretirement benefits | 2,940 | 2,940 | ||||||
| Deferred revenue - current portion | 2,500 | 2,500 | ||||||
| Total current liabilities | 76,789 | 70,008 | ||||||
| Revolving credit facilities - Long-term | 114,843 | 108,943 | ||||||
| Long term debt | — | 520 | ||||||
| Long-term obligations (less current portion) | 7,448 | 7,248 | ||||||
| Deferred revenue (less current portion) | 5,329 | 4,704 | ||||||
| Deferred income taxes | 3,686 | 3,818 | ||||||
| Operating lease liabilities | 362 | 678 | ||||||
| Accrued pension benefits (less current portion) | 14,019 | 12,825 | ||||||
| Accrued postretirement benefits (less current portion) | 49,481 | 49,882 | ||||||
| Total liabilities | 271,957 | 258,626 | ||||||
| Commitments and contingencies | — | — | ||||||
| Stockholders’ equity: | ||||||||
| Common stock, | 13 | 13 | ||||||
| Preferred stock, | — | — | ||||||
| Additional paid-in capital | 277,713 | 278,591 | ||||||
| Accumulated earnings | 165,825 | 170,730 | ||||||
| Treasury stock, (392,740 and 425,415 shares at September 30, 2023 and December 31, 2023, respectively) | (15,600 | ) | (17,141 | ) | ||||
| Accumulated other comprehensive income | 6,373 | 9,863 | ||||||
| Total stockholders’ equity | 434,324 | 442,056 | ||||||
| Total liabilities and stockholders’ equity | $ | 706,281 | $ | 700,682 | ||||
Schedule 3
| HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | ||||||||
| Three Months Ended December 31, | ||||||||
| 2022 | 2023 | |||||||
| Cash flows from operating activities: | ||||||||
| Net income | $ | 7,739 | $ | 7,702 | ||||
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
| Depreciation | 4,447 | 4,188 | ||||||
| Amortization | 126 | 100 | ||||||
| Pension and post-retirement expense | 653 | 544 | ||||||
| Change in long-term obligations | (28 | ) | (32 | ) | ||||
| Stock compensation expense | 770 | 878 | ||||||
| Deferred revenue | (625 | ) | (625 | ) | ||||
| Deferred income taxes | 322 | 462 | ||||||
| Loss on disposition of property | 34 | — | ||||||
| Change in assets and liabilities: | ||||||||
| Accounts receivable | 5,223 | 11,589 | ||||||
| Inventories | (29,202 | ) | 2,149 | |||||
| Other assets | (596 | ) | (530 | ) | ||||
| Accounts payable and accrued expenses | 4,585 | (7,994 | ) | |||||
| Income taxes | 1,568 | 716 | ||||||
| Accrued pension and postretirement benefits | (2,115 | ) | (2,129 | ) | ||||
| Net cash provided by (used in) operating activities | (7,099 | ) | 17,018 | |||||
| Cash flows from investing activities: | ||||||||
| Additions to property, plant and equipment | (3,320 | ) | (4,348 | ) | ||||
| Net cash used in investing activities | (3,320 | ) | (4,348 | ) | ||||
| Cash flows from financing activities: | ||||||||
| Revolving credit facility borrowings | 39,674 | 33,800 | ||||||
| Revolving credit facility repayments | (26,370 | ) | (39,700 | ) | ||||
| Long term debt borrowings | — | 520 | ||||||
| Dividends paid | (2,796 | ) | (2,909 | ) | ||||
| Proceeds from exercise of stock options | 3,377 | — | ||||||
| Payment for purchase of treasury stock | (838 | ) | (1,541 | ) | ||||
| Payment for debt issuance cost | (245 | ) | — | |||||
| Payments on long-term obligations | (67 | ) | (77 | ) | ||||
| Net cash provided by (used in) financing activities | 12,735 | (9,907 | ) | |||||
| Effect of exchange rates on cash | 771 | 537 | ||||||
| Increase in cash and cash equivalents: | 3,087 | 3,300 | ||||||
| Cash and cash equivalents: | ||||||||
| Beginning of period | 8,440 | 10,723 | ||||||
| End of period | $ | 11,527 | $ | 14,023 | ||||
Schedule 4
Quarterly Data
The unaudited quarterly results of operations of the Company for the most recent eight quarters are as follows.
| Quarter Ended | |||||||||||||||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | |||||||||||||||||
| (dollars in thousands) | 2022 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Net revenues | $ | 132,673 | $ | 152,786 | $ | 143,901 | $ | 160,596 | $ | 147,357 | |||||||||||
| Gross profit margin | 23,038 | 30,878 | 26,062 | 29,782 | 24,708 | ||||||||||||||||
| Gross profit margin % | 17.4 | % | 20.2 | % | 18.1 | % | 18.5 | % | 16.8 | % | |||||||||||
| Adjusted gross profit margin(1) | 28,638 | 32,578 | 27,562 | 33,582 | 30,408 | ||||||||||||||||
| Adjusted gross profit margin %(1) | 21.6 | % | 21.3 | % | 19.2 | % | 20.9 | % | 20.6 | % | |||||||||||
| Net income | 7,739 | 12,349 | 8,759 | 13,128 | 7,702 | ||||||||||||||||
| Net income per share: | |||||||||||||||||||||
| Basic | $ | 0.62 | $ | 0.98 | $ | 0.69 | $ | 1.03 | $ | 0.60 | |||||||||||
| Diluted | $ | 0.61 | $ | 0.96 | $ | 0.68 | $ | 1.02 | $ | 0.60 | |||||||||||
(1) Adjusted gross profit margin and adjusted gross profit margin percentage exclude estimated impact of nickel and cobalt fluctuations (See Schedule 7 for reconciliation to Gross profit margin).
Schedule 5
Sales by Market
The unaudited revenues, pounds shipped and average selling price per pound of the Company for the most recent five quarters are as follows.
| Quarter Ended | ||||||||||||||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||||||
| 2022 | 2023 | 2023 | 2023 | 2023 | ||||||||||||||||
| Net revenues (in thousands) | ||||||||||||||||||||
| Aerospace | $ | 64,518 | $ | 66,612 | $ | 77,456 | $ | 81,805 | $ | 73,346 | ||||||||||
| Chemical processing | 22,715 | 28,605 | 17,696 | 23,003 | 20,779 | |||||||||||||||
| Industrial gas turbines | 26,025 | 32,420 | 28,073 | 34,213 | 35,383 | |||||||||||||||
| Other markets | 14,722 | 17,550 | 13,416 | 14,599 | 11,507 | |||||||||||||||
| Total product revenue | 127,980 | 145,187 | 136,641 | 153,620 | 141,015 | |||||||||||||||
| Other revenue | 4,693 | 7,599 | 7,260 | 6,976 | 6,342 | |||||||||||||||
| Net revenues | $ | 132,673 | $ | 152,786 | $ | 143,901 | $ | 160,596 | $ | 147,357 | ||||||||||
| Shipments by markets (in thousands of pounds) | ||||||||||||||||||||
| Aerospace | 2,187 | 1,982 | 2,376 | 2,533 | 2,154 | |||||||||||||||
| Chemical processing | 786 | 845 | 462 | 653 | 670 | |||||||||||||||
| Industrial gas turbines | 1,289 | 1,430 | 1,311 | 1,412 | 1,693 | |||||||||||||||
| Other markets | 290 | 410 | 278 | 269 | 213 | |||||||||||||||
| Total shipments | 4,552 | 4,667 | 4,427 | 4,867 | 4,730 | |||||||||||||||
| Average selling price per pound | ||||||||||||||||||||
| Aerospace | $ | 29.50 | $ | 33.61 | $ | 32.60 | $ | 32.30 | $ | 34.05 | ||||||||||
| Chemical processing | 28.90 | 33.85 | 38.30 | 35.23 | 31.01 | |||||||||||||||
| Industrial gas turbines | 20.19 | 22.67 | 21.41 | 24.23 | 20.90 | |||||||||||||||
| Other markets | 50.77 | 42.80 | 48.26 | 54.27 | 54.02 | |||||||||||||||
| Total product (product only; excluding other revenue) | $ | 28.12 | $ | 31.11 | $ | 30.87 | $ | 31.56 | $ | 29.81 | ||||||||||
| Total average selling price (including other revenue) | $ | 29.15 | $ | 32.74 | $ | 32.51 | $ | 33.00 | $ | 31.15 | ||||||||||
Schedule 6
HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE - ADJUSTED EBITDA ADJUSTED EBITDA AS A PERCENTAGE OF NET REVENUES
(Unaudited)
(in thousands, except share data)
Adjusted EBITDA and Adjusted EBITDA as a Percentage of Net Revenues
Adjusted EBITDA as reported herein refers to a financial measure that excludes from consolidated operating income (loss) non-cash charges for depreciation, amortization and stock compensation expense. Management believes that Adjusted EBITDA and Adjusted EBITDA as a percentage of net revenues provides a relevant indicator of the Company’s value by eliminating the impact of financing and other non-cash impacts of past investments. Management uses its results excluding these non-cash amounts to evaluate its operating performance.
| Three Months Ended December 31, | |||||||
| 2022 | 2023 | ||||||
| Operating income | $ | 11,113 | $ | 11,135 | |||
| Depreciation | 4,447 | 4,188 | |||||
| Amortization (excluding debt issuance costs recorded in interest expense) | 33 | 33 | |||||
| Stock compensation expense | 770 | 878 | |||||
| Adjusted EBITDA | $ | 16,363 | $ | 16,234 | |||
| Adjusted EBITDA as a percentage of Net revenues | 12.3 | % | 11.0 | % | |||
Schedule 7
HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES
NON-GAAP FINANCIAL MEASURE - ADJUSTED GROSS PROFIT MARGIN – EXCLUDING THE ESTIMATED IMPACTS OF NICKEL AND COBALT FLUCTUATIONS
(Unaudited)
(in thousands, except share data)
Adjusted Gross Profit and Adjusted Gross Profit % – Excluding the estimated impact of nickel and cobalt fluctuations
Management believes that Adjusted Gross profit margin and Adjusted Gross profit % – Excluding the estimated impact of nickel and cobalt fluctuations provide relevant indicator of the Company’s profitability by eliminating the impact of fluctuating impacts of nickel and cobalt prices which can compress or expand gross profit margin. The estimated gross profit and gross profit % impact from nickel and cobalt price fluctuations is derived from a model developed by the Company to measure how the price changes flow through net revenues and cost of sales. This model incorporates flow across each different type of pricing mechanism and the timing of how the cost of nickel and cobalt flows to cost of sales including the impacts of the commodity price exposure of the Company’s scrap cycle. Management uses its results excluding these nickel and cobalt price impacts to evaluate its operating performance.
| Quarter Ended | ||||||||||||||||
| December 31, | March 31, | June 30, | September 30, | December 31, | ||||||||||||
| (dollars in thousands) | 2022 | 2023 | 2023 | 2023 | 2023 | |||||||||||
| Gross profit margin | $ | 23,038 | $ | 30,878 | $ | 26,062 | $ | 29,782 | $ | 24,708 | ||||||
| Gross profit margin % | 17.4 | % | 20.2 | % | 18.1 | % | 18.5 | % | 16.8 | % | ||||||
| Estimated impact of nickel and cobalt fluctuations | 5,600 | 1,700 | 1,500 | 3,800 | 5,700 | |||||||||||
| Adjusted gross profit margin - excluding estimated impact of nickel and cobalt fluctuations | $ | 28,638 | $ | 32,578 | $ | 27,562 | $ | 33,582 | $ | 30,408 | ||||||
| Adjusted gross profit margin % - excluding estimated impact of nickel and cobalt fluctuations | 21.6 | % | 21.3 | % | 19.2 | % | 20.9 | % | 20.6 | % | ||||||
| Contact: | Daniel Maudlin | |
| Vice President of Finance and Chief Financial Officer | ||
| Haynes International, Inc. | ||
| 765-456-6102 |
FAQ
What were the first quarter net revenues reported by Haynes International, Inc. (HAYN)?
What was the gross margin for the first quarter and how does it compare to last year?
What was the first quarter net income and diluted earnings per share for Haynes International, Inc.?
What was the backlog as of December 31, 2023, for Haynes International, Inc. (HAYN)?
What dividend was declared by Haynes International, Inc. (HAYN) for the first quarter?
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