Haynes International, Inc. Reports Third Quarter Fiscal 2024 Financial Results
Haynes International (NASDAQ: HAYN) reported its Q3 fiscal 2024 results, noting a net revenue increase to $153.9M from $152.5M in Q2 and $143.9M last year. Aerospace market sales reached a record $82.6M, accounting for nearly 54% of total revenue. However, gross profit decreased to $25.5M, with a 16.6% gross margin, down from 18.1% last year, affected by raw material headwinds.
Despite a reduction in net income to $8.1M ($0.63 per share) from $8.8M ($0.68 per share) the previous year, the company maintained strong operating cash flow of $52.5M, leading to a $24.2M credit facility paydown. The backlog decreased to $405.7M, a 13.3% decline year-over-year. Capital expenditures reached $17.2M in the first nine months, with a total of $22-26M expected for the year.
Haynes is also progressing with its merger with North American Stainless, expecting final clearances in Q4 2024. The board declared a regular quarterly dividend of $0.22 per share.
Haynes International (NASDAQ: HAYN) ha riportato i risultati del terzo trimestre fiscale 2024, evidenziando un aumento del fatturato netto a 153,9 milioni di dollari rispetto ai 152,5 milioni del secondo trimestre e ai 143,9 milioni dell'anno scorso. Le vendite nel mercato aerospaziale hanno raggiunto un record di 82,6 milioni di dollari, rappresentando quasi il 54% del fatturato totale. Tuttavia, il profitto lordo è diminuito a 25,5 milioni di dollari, con un margine lordo del 16,6%, in calo rispetto al 18,1% dello scorso anno, influenzato dalle difficoltà legate ai materiali grezzi.
Nonostante una riduzione dell'utile netto a 8,1 milioni di dollari (0,63 dollari per azione) rispetto agli 8,8 milioni di dollari (0,68 dollari per azione) dell'anno precedente, l'azienda ha mantenuto un forte flusso di cassa operativo di 52,5 milioni di dollari, portando a un rimborso del credito di 24,2 milioni di dollari. Il portafoglio ordini è diminuito a 405,7 milioni di dollari, con una flessione del 13,3% su base annua. Le spese in conto capitale hanno raggiunto 17,2 milioni di dollari nei primi nove mesi, con un totale previsto di 22-26 milioni di dollari per l'anno.
Haynes sta anche progredendo con la sua fusione con North American Stainless, aspettandosi le approvazioni finali nel quarto trimestre del 2024. Il consiglio di amministrazione ha dichiarato un dividendo trimestrale regolare di 0,22 dollari per azione.
Haynes International (NASDAQ: HAYN) reportó sus resultados del tercer trimestre fiscal 2024, señalando un aumento en los ingresos netos a 153.9 millones de dólares desde 152.5 millones en el segundo trimestre y 143.9 millones el año pasado. Las ventas en el mercado aeroespacial alcanzaron un récord de 82.6 millones de dólares, representando casi el 54% de los ingresos totales. Sin embargo, el beneficio bruto disminuyó a 25.5 millones de dólares, con un margen bruto del 16.6%, por debajo del 18.1% del año anterior, afectado por problemas con las materias primas.
A pesar de una reducción en el ingreso neto a 8.1 millones de dólares (0.63 dólares por acción) desde 8.8 millones de dólares (0.68 dólares por acción) del año anterior, la compañía mantuvo un sólido flujo de efectivo operativo de 52.5 millones de dólares, lo que llevó a un pago de deuda de 24.2 millones de dólares. El cartera de pedidos disminuyó a 405.7 millones de dólares, una baja del 13.3% interanual. Los gastos de capital alcanzaron los 17.2 millones de dólares en los primeros nueve meses, con un total de 22 a 26 millones de dólares esperado para el año.
Haynes también está avanzando en su fusión con North American Stainless, esperando aprobaciones finales en el cuarto trimestre de 2024. La junta declaró un dividendo trimestral regular de 0.22 dólares por acción.
Haynes International (NASDAQ: HAYN)는 2024 회계연도 3분기 실적을 발표하며 순수익 증가를 1억 5천393만 달러로 보고했습니다. 이는 2분기 1억 5천250만 달러와 지난해 1억 4천390만 달러에서 증가한 수치입니다. 항공 우주 시장 매출은 8천260만 달러에 도달하여 총 수익의 거의 54%를 차지합니다. 그러나 총 이익은 2천550만 달러로 감소하며, 16.6%의 총 이익률은 지난해의 18.1%에서 하락했습니다. 이는 원자재 관련 어려움 때문입니다.
순이익이 지난해 8.8백만 달러(주당 0.68달러)에서 8.1백만 달러(주당 0.63달러)로 감소했음에도 불구하고, 회사는 5천250만 달러의 강력한 운영 현금 흐름을 유지하여 2천420만 달러의 신용 시설 상환을 이끌어냈습니다. 백로그는 4억 5천570만 달러로 감소했으며, 이는 연간 13.3% 하락한 것입니다. 자본 지출은 처음 아홉 달 동안 1천720만 달러에 달하며, 연간 총 2천200만 달러에서 2천600만 달러를 예상하고 있습니다.
Haynes는 North American Stainless와의 합병을 진행하고 있으며, 2024년 4분기에 최종 승인을 기대하고 있습니다. 이사회는 주당 0.22달러의 정기 배당금을 선언했습니다.
Haynes International (NASDAQ: HAYN) a annoncé ses résultats du troisième trimestre de l'exercice 2024, notant une augmentation du chiffre d'affaires net à 153,9 millions de dollars contre 152,5 millions au deuxième trimestre et 143,9 millions l'année dernière. Les ventes sur le marché aérospatial ont atteint un record de 82,6 millions de dollars, représentant presque 54 % du chiffre d'affaires total. Cependant, le bénéfice brut a diminué à 25,5 millions de dollars, avec une marge brute de 16,6 %, en baisse par rapport à 18,1 % l'année dernière, affectée par des difficultés liées aux matières premières.
Bien qu'il y ait eu une réduction du bénéfice net à 8,1 millions de dollars (0,63 dollar par action) contre 8,8 millions de dollars (0,68 dollar par action) l'année précédente, l'entreprise a maintenu un flux de trésorerie opérationnel solide de 52,5 millions de dollars, ce qui a conduit à un remboursement de crédit de 24,2 millions de dollars. Le carnet de commandes a diminué à 405,7 millions de dollars, soit une baisse de 13,3 % d'une année sur l'autre. Les investissements en capital ont atteint 17,2 millions de dollars au cours des neuf premiers mois, avec un total attendu de 22 à 26 millions de dollars pour l'année.
Haynes progresse également dans sa fusion avec North American Stainless, s'attendant à des approbations finales au quatrième trimestre de 2024. Le conseil d'administration a déclaré un dividende trimestriel régulier de 0,22 dollar par action.
Haynes International (NASDAQ: HAYN) hat seine Ergebnisse für das dritte Quartal des Geschäftsjahres 2024 bekannt gegeben und verzeichnete einen Anstieg des Nettoumsatzes auf 153,9 Millionen Dollar, gegenüber 152,5 Millionen Dollar im zweiten Quartal und 143,9 Millionen Dollar im Vorjahr. Die Verkäufe im Luft- und Raumfahrtmarkt erreichten einen Rekordwert von 82,6 Millionen Dollar, was fast 54% des Gesamtumsatzes ausmacht. Der Bruttogewinn hingegen fiel auf 25,5 Millionen Dollar, mit einem Bruttomargen von 16,6%, was einen Rückgang von 18,1% im Vorjahr darstellt, beeinflusst durch Rohstoffengpässe.
Trotz eines Rückgangs des Nettogewinns auf 8,1 Millionen Dollar (0,63 Dollar pro Aktie) von 8,8 Millionen Dollar (0,68 Dollar pro Aktie) im Vorjahr, hielt das Unternehmen einen starken operativen Cashflow von 52,5 Millionen Dollar aufrecht, was zu einer Tilgung von 24,2 Millionen Dollar führte. Die Auftragslage sank auf 405,7 Millionen Dollar, ein Rückgang von 13,3% im Jahresvergleich. Die Investitionsausgaben beliefen sich in den ersten neun Monaten auf 17,2 Millionen Dollar, wobei für das Jahr insgesamt 22 bis 26 Millionen Dollar erwartet werden.
Haynes macht auch Fortschritte bei der Fusion mit North American Stainless, mit der Erwartung, dass die endgültigen Genehmigungen im vierten Quartal 2024 erteilt werden. Der Vorstand hat eine reguläre vierteljährliche Dividende von 0,22 Dollar pro Aktie erklärt.
- Net revenues increased to $153.9M in Q3 FY2024.
- Aerospace revenue hit a record $82.6M.
- Strong operating cash flow of $52.5M year-to-date.
- Credit facility paydown of $24.2M in the first nine months.
- Regular quarterly dividend of $0.22 per share declared.
- Gross margin decreased to 16.6% from 18.1% last year.
- Net income decreased to $8.1M from $8.8M the previous year.
- Backlog decreased by 13.3% year-over-year to $405.7M.
- Gross profit decreased by $0.5M year-over-year.
Insights
Haynes International's Q3 FY2024 results reveal a mixed financial picture. While revenue increased 7% year-over-year to
The company's focus on cash generation is noteworthy, with year-to-date operating cash flow of
However, the 13.3% year-over-year decline in backlog to
The aerospace market remains a bright spot, with record quarterly revenue of
Looking ahead, management expects Q4 performance to be similar to Q3, indicating continued headwinds in the near term. The pending merger with North American Stainless, expected to close in Q4 2024, could be a game-changer for the company's long-term prospects.
Haynes International's Q3 results underscore the company's strong position in the aerospace market, despite broader industry challenges. The record
The 6.7% year-over-year increase in aerospace revenue, driven by both volume (
However, the reduction in backlog and management's comments about lower order entry levels due to Boeing's build rate slowdown are cause for concern. This reflects the broader challenges facing the commercial aerospace supply chain, as OEMs adjust production rates in response to ongoing issues with certain aircraft models and a gradual recovery in air travel demand.
The temporary nature of this slowdown, as emphasized by management, aligns with industry projections of a strong long-term outlook for commercial aerospace. Haynes' focus on cash generation and inventory reduction during this period could position the company well for the eventual upturn in demand.
The pending merger with North American Stainless could potentially enhance Haynes' capabilities and market position in aerospace alloys, although the full implications remain to be seen pending the deal's closure and integration.
Haynes International's Q3 FY2024 results offer insights into broader market trends across several key industrial sectors. The company's performance reflects both opportunities and challenges in high-performance alloy markets.
In the aerospace sector, Haynes' record revenue suggests continued strong demand for advanced materials in aircraft manufacturing, despite well-publicized challenges faced by major OEMs. This could indicate that the aerospace supply chain is still in a growth phase, possibly driven by the need to replace aging fleets and meet increasing air travel demand in certain regions.
The chemical processing industry (CPI) segment shows a more complex picture. While volumes increased by
The industrial gas turbine (IGT) market shows promising growth, with a
The overall
Lastly, the company's focus on margin expansion and cash generation aligns with broader trends in the industrial sector, where companies are prioritizing operational efficiency and balance sheet strength in the face of economic uncertainties.
- Clearance obtained from the Committee on Foreign Investment in the United States (CFIUS) related to the planned merger with North American Stainless, Inc. Company expects that the remaining required clearances from the U.K. and Austria will be obtained for an expected transaction close in the fourth calendar quarter of 2024.
- Net revenues in the third quarter of fiscal 2024 increased to
$153.9 million as compared to$152.5 million in the second quarter this year and$143.9 million in last year’s cyber-impacted third quarter. Revenue shipped into the aerospace market in the third quarter was a Company record at$82.6 million , which was nearly54% of total revenue.
- Gross margin for the third quarter of
16.6% , unfavorably impacted by raw material headwinds of$3.4 million , which was lower than the second quarter’s$5.3 million , but higher than last year’s third quarter headwind of$1.5 million . Excluding this raw material headwind, adjusted gross margin was18.8% of revenue. After 8 consecutive quarters of raw material neutral margins (adjusted for the cyber-incident) of approximately21% , the third quarter was impacted by lower production volumes and reduced efficiency as a result of lower order entry levels and the Company’s inventory reduction and cash generation actions.
- Strong year to date operating cash flow of
$52.5 million resulted in a credit facility pay down of$24.2 million in the first nine months of fiscal 2024, which both are expected to continue in the fourth quarter.
- Third quarter net income of
$8.1 million or$0.63 diluted earnings per share, compared to last year’s third quarter net income of$8.8 million , or$0.68 diluted earnings per share. Reduction largely driven by change in raw material headwind and the lower mill production levels.
- Backlog of
$405.7 million as of June 30, 2024, down13.3% year-over-year due to slowing demand in the Company’s markets, which is believed to be temporary.
- Capital investment in the first nine months of fiscal 2024 of
$17.2 million . Total planned capital expenditures for fiscal 2024 estimated at$22 t o$26 million .
- U.S. Pension Plan achieved next funding milestone exceeding
97.0% estimated funded, prompting asset allocation change to92.5% fixed income and7.5% equity based on the customized liability driven investing strategy employed to protect the funding percentage.
- Regular quarterly cash dividend of
$0.22 per outstanding share of the Company’s common stock declared.
KOKOMO, Ind., Aug. 01, 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 third quarter ended June 30, 2024. In addition, the Company announced that its Board of Directors has authorized a regular quarterly cash dividend of
“Our third-quarter revenue grew
3rd 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 third quarter of fiscal 2024 of
Nonoperating retirement benefit income. Nonoperating retirement benefit 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 third quarter of fiscal 2024 was
Volumes and Pricing
Volume shipped in the third quarter of fiscal 2024 was 4.8 million pounds, which was
The Company has an ongoing strategy of expanding 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 allowed 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 third 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 nine months 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 nine months of fiscal 2024 was
Net cash used in investing activities was
Net cash used in financing activities was
Dividend Declared
On July 31, 2024, the Board of Directors declared a regular quarterly cash dividend of
Guidance
The Company expects fourth quarter revenue and earnings to be similar to the third quarter of fiscal 2024 as a result of the unfavorable impact of lower production volumes primarily due to two factors – the Boeing build rate slowdown, and the Company’s significant inventory reduction initiatives.
Proposed Merger Transaction with Acerinox S.A.
On February 5, 2024, Haynes International, Inc. (“Haynes’, “the Company”, “we”, “our”, or “us”) entered into a merger agreement with a subsidiary of Acerinox S.A. (the “Merger Agreement”), pursuant to which (and subject to the terms and conditions in the Merger Agreement) such subsidiary of Acerinox S.A. will acquire all of the outstanding shares of the Company’s common stock in a transaction structured as a merger of an indirect wholly-owned subsidiary of Acerinox S.A. with and into the Company, with the Company continuing as a surviving corporation (the “Merger”). Acerinox S.A. is providing a full performance guaranty with respect to its subsidiaries’ obligations under the Merger Agreement.
Under the terms of the Merger Agreement, at the effective time of the Merger (the “Effective Time”), each share of the Company's common stock that is issued and outstanding as of immediately prior to the Effective Time (other than shares of common stock (i) held by the Company as treasury stock as of immediately prior to the Effective Time, (ii) owned by such subsidiary of Acerinox S.A. or any of its subsidiaries as of immediately prior to the Effective Time or (iii) owned by stockholders who have properly exercised appraisal rights under Delaware law) will be automatically cancelled, extinguished and converted into the right to receive
As a result of the Merger, the Company will become an indirect wholly owned subsidiary of Acerinox S.A. The completion of the Merger is subject to certain customary closing conditions, including, among others, the adoption of the Merger Agreement by the Company's stockholders, which occurred on April 16, 2024, and the expiration or termination of the applicable waiting period under the HSR Act, which waiting period expired on March 18, 2024, and the clearance from the Committee on Foreign Investment in the United States (CFIUS), which was obtained on June 27, 2024. The Company expects that the final two regulatory approvals, from the United Kingdom and Austria, will be positively resolved and the required clearances will be obtained for an expected closing of the merger in the fourth calendar quarter of 2024.
Non-GAAP Financial Measures
This press release includes certain financial measures, including Adjusted EBITDA for the fiscal quarters ended June 30, 2023 and 2024 and Adjusted gross profit and Adjusted gross profit % – excluding the estimated impact of nickel and cobalt fluctuations for the fiscal quarters ended June 30, 2023 and 2024 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 June 30, | Nine Months Ended June 30, | ||||||||||||||
| 2023 | 2024 | 2023 | 2024 | ||||||||||||
| Net Revenues | $ | 143,901 | $ | 153,923 | $ | 429,360 | $ | 453,738 | |||||||
| Cost of Sales | 117,839 | 128,384 | 349,382 | 376,477 | |||||||||||
| Gross Profit | 26,062 | 25,539 | 79,978 | 77,261 | |||||||||||
| Selling, general and administrative expense | 11,832 | 12,749 | 35,486 | 38,581 | |||||||||||
| Research and technical expense | 1,008 | 1,081 | 3,028 | 3,281 | |||||||||||
| Operating income | 13,222 | 11,709 | 41,464 | 35,399 | |||||||||||
| Nonoperating retirement benefit income | (366 | ) | (497 | ) | (1,097 | ) | (1,493 | ) | |||||||
| Interest income | (17 | ) | (27 | ) | (33 | ) | (76 | ) | |||||||
| Interest expense | 2,156 | 1,713 | 5,522 | 5,960 | |||||||||||
| Income before income taxes | 11,449 | 10,520 | 37,072 | 31,008 | |||||||||||
| Provision for income taxes | 2,690 | 2,395 | 8,225 | 6,630 | |||||||||||
| Net Income | $ | 8,759 | $ | 8,125 | $ | 28,847 | $ | 24,378 | |||||||
| Net Income per share: | |||||||||||||||
| Basic | $ | 0.69 | $ | 0.64 | $ | 2.28 | $ | 1.91 | |||||||
| Diluted | $ | 0.68 | $ | 0.63 | $ | 2.24 | $ | 1.88 | |||||||
| Weighted Average Common Shares Outstanding | |||||||||||||||
| Basic | 12,611 | 12,661 | 12,552 | 12,654 | |||||||||||
| Diluted | 12,796 | 12,884 | 12,776 | 12,841 | |||||||||||
| Dividends declared per common share | $ | 0.22 | $ | 0.22 | $ | 0.66 | $ | 0.66 | |||||||
| Schedule 2 | |||||||
| HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (Unaudited) (in thousands, except share data) | |||||||
| September 30, | June 30, | ||||||
| 2023 | 2024 | ||||||
| ASSETS | |||||||
| Current assets: | |||||||
| Cash and cash equivalents | $ | 10,723 | $ | 11,770 | |||
| Accounts receivable, less allowance for credit losses of | 106,292 | 104,467 | |||||
| Inventories | 414,077 | 388,269 | |||||
| Income taxes receivable | 2,372 | 3,090 | |||||
| Other current assets | 5,702 | 6,304 | |||||
| Total current assets | 539,166 | 513,900 | |||||
| Property, plant and equipment, net | 142,540 | 146,446 | |||||
| Deferred income taxes | 3,608 | 4,074 | |||||
| Other assets | 10,523 | 11,190 | |||||
| Goodwill | 4,789 | 4,789 | |||||
| Other intangible assets, net | 5,655 | 5,358 | |||||
| Total assets | $ | 706,281 | $ | 685,757 | |||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||
| Current liabilities: | |||||||
| Accounts payable | $ | 52,812 | $ | 43,744 | |||
| Accrued expenses | 18,201 | 16,820 | |||||
| Income taxes payable | 336 | 377 | |||||
| Accrued pension and postretirement benefits | 2,940 | 2,940 | |||||
| Deferred revenue - current portion | 2,500 | 2,500 | |||||
| Total current liabilities | 76,789 | 66,381 | |||||
| Revolving credit facilities - Long-term | 114,843 | 90,631 | |||||
| Long-term obligations (less current portion) | 7,448 | 7,145 | |||||
| Deferred revenue (less current portion) | 5,329 | 3,454 | |||||
| Deferred income taxes | 3,686 | 3,763 | |||||
| Operating lease liabilities | 362 | 910 | |||||
| Accrued pension benefits (less current portion) | 14,019 | 10,437 | |||||
| Accrued postretirement benefits (less current portion) | 49,481 | 50,838 | |||||
| Total liabilities | 271,957 | 233,559 | |||||
| Commitments and contingencies | — | — | |||||
| Stockholders’ equity: | |||||||
| Common stock, | 13 | 13 | |||||
| Preferred stock, | — | — | |||||
| Additional paid-in capital | 277,713 | 280,675 | |||||
| Accumulated earnings | 165,825 | 181,718 | |||||
| Treasury stock, (392,740 and 425,415 shares at September 30, 2023 and June 30, 2024, respectively) | (15,600 | ) | (17,141 | ) | |||
| Accumulated other comprehensive income | 6,373 | 6,933 | |||||
| Total stockholders’ equity | 434,324 | 452,198 | |||||
| Total liabilities and stockholders’ equity | $ | 706,281 | $ | 685,757 | |||
| Schedule 3 | |||||||
| HAYNES INTERNATIONAL, INC. AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (in thousands) | |||||||
| Nine Months Ended June 30, | |||||||
| 2023 | 2024 | ||||||
| Cash flows from operating activities: | |||||||
| Net income | $ | 28,847 | $ | 24,378 | |||
| Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||||
| Depreciation | 13,480 | 12,866 | |||||
| Amortization | 479 | 297 | |||||
| Pension and post-retirement expense | 1,961 | 1,634 | |||||
| Change in long-term obligations | (50 | ) | (35 | ) | |||
| Stock compensation expense | 2,410 | 2,962 | |||||
| Deferred revenue | (1,875 | ) | (1,875 | ) | |||
| Deferred income taxes | (549 | ) | 138 | ||||
| Loss on disposition of property | 65 | 266 | |||||
| Change in assets and liabilities: | |||||||
| Accounts receivable | 10,955 | 2,657 | |||||
| Inventories | (47,167 | ) | 27,941 | ||||
| Other assets | (31 | ) | (696 | ) | |||
| Accounts payable and accrued expenses | (4,620 | ) | (11,115 | ) | |||
| Income taxes | (3,685 | ) | (646 | ) | |||
| Accrued pension and postretirement benefits | (6,285 | ) | (6,234 | ) | |||
| Net cash (used in) provided by operating activities | (6,065 | ) | 52,538 | ||||
| Cash flows from investing activities: | |||||||
| Additions to property, plant and equipment | (11,770 | ) | (17,207 | ) | |||
| Net cash used in investing activities | (11,770 | ) | (17,207 | ) | |||
| Cash flows from financing activities: | |||||||
| Revolving credit facility borrowings | 101,294 | 84,141 | |||||
| Revolving credit facility repayments | (77,350 | ) | (108,353 | ) | |||
| Long term debt borrowings | — | 520 | |||||
| Long-term debt repayments | — | (520 | ) | ||||
| Dividends paid | (8,397 | ) | (8,518 | ) | |||
| Proceeds from exercise of stock options | 8,228 | — | |||||
| Payment for purchase of treasury stock | (925 | ) | (1,541 | ) | |||
| Payment for debt issuance cost | (1,320 | ) | — | ||||
| Payments on long-term obligations | (211 | ) | (239 | ) | |||
| Net cash provided by (used in) financing activities | 21,319 | (34,510 | ) | ||||
| Effect of exchange rates on cash | 1,007 | 226 | |||||
| Increase in cash and cash equivalents: | 4,491 | 1,047 | |||||
| Cash and cash equivalents: | |||||||
| Beginning of period | 8,440 | 10,723 | |||||
| End of period | $ | 12,931 | $ | 11,770 | |||
Schedule 4
Quarterly Data
The unaudited quarterly results of operations of the Company for the most recent five quarters are as follows.
| Quarter Ended | ||||||||||||||||
| June 30, | September 30, | December 31, | March 31, | June 30, | ||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 2024 | 2024 | |||||||||||
| Net revenues | $ | 143,901 | $ | 160,596 | $ | 147,357 | $ | 152,458 | $ | 153,923 | ||||||
| Gross profit margin | 26,062 | 29,782 | 24,708 | 27,014 | 25,539 | |||||||||||
| Gross profit margin % | 18.1 | % | 18.5 | % | 16.8 | % | 17.7 | % | 16.6 | % | ||||||
| Adjusted gross profit margin(1) | 27,562 | 33,582 | 30,408 | 32,314 | 28,939 | |||||||||||
| Adjusted gross profit margin %(1) | 19.2 | % | 20.9 | % | 20.6 | % | 21.2 | % | 18.8 | % | ||||||
| Net income | 8,759 | 13,128 | 7,702 | 8,551 | 8,125 | |||||||||||
| Net income per share: | ||||||||||||||||
| Basic | $ | 0.69 | $ | 1.03 | $ | 0.60 | $ | 0.67 | $ | 0.64 | ||||||
| Diluted | $ | 0.68 | $ | 1.02 | $ | 0.60 | $ | 0.66 | $ | 0.63 | ||||||
| (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 | |||||||||||||||||||
| June 30, | September 30, | December 31, | March 31, | June 30, | |||||||||||||||
| 2023 | 2023 | 2023 | 2024 | 2024 | |||||||||||||||
| Net revenues (in thousands) | |||||||||||||||||||
| Aerospace | $ | 77,456 | $ | 81,805 | $ | 73,346 | $ | 77,140 | $ | 82,607 | |||||||||
| Chemical processing | 17,696 | 23,003 | 20,779 | 17,669 | 16,267 | ||||||||||||||
| Industrial gas turbines | 28,073 | 34,213 | 35,383 | 35,587 | 32,016 | ||||||||||||||
| Other markets | 13,416 | 14,599 | 11,507 | 13,687 | 14,932 | ||||||||||||||
| Total product revenue | 136,641 | 153,620 | 141,015 | 144,083 | 145,822 | ||||||||||||||
| Other revenue | 7,260 | 6,976 | 6,342 | 8,375 | 8,101 | ||||||||||||||
| Net revenues | $ | 143,901 | $ | 160,596 | $ | 147,357 | $ | 152,458 | $ | 153,923 | |||||||||
| Shipments by markets (in thousands of pounds) | |||||||||||||||||||
| Aerospace | 2,376 | 2,533 | 2,154 | 2,159 | 2,464 | ||||||||||||||
| Chemical processing | 462 | 653 | 670 | 492 | 524 | ||||||||||||||
| Industrial gas turbines | 1,311 | 1,412 | 1,693 | 1,709 | 1,413 | ||||||||||||||
| Other markets | 278 | 269 | 213 | 281 | 357 | ||||||||||||||
| Total shipments | 4,427 | 4,867 | 4,730 | 4,641 | 4,758 | ||||||||||||||
| Average selling price per pound | |||||||||||||||||||
| Aerospace | $ | 32.60 | $ | 32.30 | $ | 34.05 | $ | 35.73 | $ | 33.53 | |||||||||
| Chemical processing | 38.30 | 35.23 | 31.01 | 35.91 | 31.04 | ||||||||||||||
| Industrial gas turbines | 21.41 | 24.23 | 20.90 | 20.82 | 22.66 | ||||||||||||||
| Other markets | 48.26 | 54.27 | 54.02 | 48.71 | 41.83 | ||||||||||||||
| Total product (product only; excluding other revenue) | $ | 30.87 | $ | 31.56 | $ | 29.81 | $ | 31.05 | $ | 30.65 | |||||||||
| Total average selling price (including other revenue) | $ | 32.51 | $ | 33.00 | $ | 31.15 | $ | 32.85 | $ | 32.35 | |||||||||
| 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 June 30, | Nine Months Ended June 30, | |||||||||||
| 2023 | 2024 | 2023 | 2024 | |||||||||
| Operating income | $ | 13,222 | $ | 11,709 | $ | 41,464 | $ | 35,399 | ||||
| Depreciation | 4,548 | 4,359 | 13,480 | 12,866 | ||||||||
| Amortization (excluding debt issuance costs recorded in interest expense) | 32 | 31 | 97 | 95 | ||||||||
| Stock compensation expense | 869 | 976 | 2,410 | 2,962 | ||||||||
| Adjusted EBITDA | $ | 18,671 | $ | 17,075 | $ | 57,451 | $ | 51,322 | ||||
| Adjusted EBITDA as a percentage of Net revenues | 13.0 | % | 11.1 | % | 13.4 | % | 11.3 | % | ||||
| 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 | ||||||||||||||||
| June 30, | September 30, | December 31, | March 31, | June 30, | ||||||||||||
| (dollars in thousands) | 2023 | 2023 | 2023 | 2024 | 2024 | |||||||||||
| Gross profit margin | $ | 26,062 | $ | 29,782 | $ | 24,708 | $ | 27,014 | $ | 25,539 | ||||||
| Gross profit margin % | 18.1 | % | 18.5 | % | 16.8 | % | 17.7 | % | 16.6 | % | ||||||
| Estimated impact of nickel and cobalt fluctuations | 1,500 | 3,800 | 5,700 | 5,300 | 3,400 | |||||||||||
| Adjusted gross profit margin - excluding estimated impact of nickel and cobalt fluctuations | $ | 27,562 | $ | 33,582 | $ | 30,408 | $ | 32,314 | $ | 28,939 | ||||||
| Adjusted gross profit margin % - excluding estimated impact of nickel and cobalt fluctuations | 19.2 | % | 20.9 | % | 20.6 | % | 21.2 | % | 18.8 | % | ||||||
| Contact: | Daniel Maudlin |
| Vice President of Finance and Chief Financial Officer | |
| Haynes International, Inc. | |
| 765-456-6102 |
FAQ
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