Universal Stainless Reports Record Sales and Net Income in Third Quarter of 2024
Universal Stainless & Alloy Products (USAP) reported record Q3 2024 results with net sales of $87.3 million, up 5% from Q2 2024 and 22% from Q3 2023. Net income reached a record $11.1 million, or $1.11 per diluted share. Aerospace sales, the company's largest market, hit a record $71.4 million, representing 81.8% of total sales. Premium alloy sales reached $23.7 million, or 27.1% of sales. Gross margin remained strong at 25.2%, while Adjusted EBITDA increased to $19.3 million. The company reduced its net debt by $9.0 million during the quarter.
Universal Stainless & Alloy Products (USAP) ha riportato risultati record per il terzo trimestre del 2024, con vendite nette di 87,3 milioni di dollari, in aumento del 5% rispetto al secondo trimestre del 2024 e del 22% rispetto al terzo trimestre del 2023. Il reddito netto ha raggiunto un livello record di 11,1 milioni di dollari, ovvero 1,11 dollari per azione diluita. Le vendite nel settore aerospaziale, il mercato più grande dell'azienda, hanno toccato un record di 71,4 milioni di dollari, rappresentando l'81,8% delle vendite totali. Le vendite di leghe premium hanno raggiunto 23,7 milioni di dollari, pari al 27,1% delle vendite. Il margine lordo è rimasto solido al 25,2%, mentre l'EBITDA rettificato è aumentato a 19,3 milioni di dollari. L'azienda ha ridotto il suo debito netto di 9,0 milioni di dollari durante il trimestre.
Universal Stainless & Alloy Products (USAP) informó resultados récord para el tercer trimestre de 2024, con ventas netas de 87,3 millones de dólares, un aumento del 5% respecto al segundo trimestre de 2024 y del 22% en comparación con el tercer trimestre de 2023. El ingreso neto alcanzó un récord de 11,1 millones de dólares, o 1,11 dólares por acción diluida. Las ventas en el sector aeroespacial, el mercado más grande de la empresa, alcanzaron un récord de 71,4 millones de dólares, representando el 81,8% de las ventas totales. Las ventas de aleaciones premium alcanzaron 23,7 millones de dólares, o el 27,1% de las ventas. El margen bruto se mantuvo sólido en un 25,2%, mientras que el EBITDA ajustado aumentó a 19,3 millones de dólares. La empresa redujo su deuda neta en 9,0 millones de dólares durante el trimestre.
유니버설 스테인리스 & 합금 제품 (USAP)가 2024년 3분기 기록적인 실적을 발표했습니다. 순매출은 8730만 달러로, 2024년 2분기 대비 5%, 2023년 3분기 대비 22% 증가했습니다. 순이익은 기록적인 1110만 달러, 즉 주당 1.11 달러에 도달했습니다. 항공우주 매출은 회사의 최대 시장으로 기록적인 7140만 달러에 도달하며 전체 매출의 81.8%를 차지했습니다. 프리미엄 합금 매출은 2370만 달러로, 매출의 27.1%를 차지했습니다. 총 마진은 25.2%로 견고하게 유지되었고, 조정 EBITDA는 1930만 달러로 증가했습니다. 이 회사는 분기 동안 순부채를 900만 달러 줄였습니다.
Universal Stainless & Alloy Products (USAP) a annoncé des résultats record pour le troisième trimestre 2024, avec un chiffre d'affaires net de 87,3 millions de dollars, en hausse de 5 % par rapport au deuxième trimestre 2024 et de 22 % par rapport au troisième trimestre 2023. Le bénéfice net a atteint un niveau record de 11,1 millions de dollars, soit 1,11 dollar par action diluée. Les ventes dans le secteur aérospatial, le plus grand marché de l'entreprise, ont atteint un record de 71,4 millions de dollars, représentant 81,8 % des ventes totales. Les ventes d'alliages premium ont atteint 23,7 millions de dollars, soit 27,1 % des ventes. La marge brute est restée solide à 25,2 %, tandis que l'EBITDA ajusté a augmenté à 19,3 millions de dollars. L'entreprise a réduit sa dette nette de 9,0 millions de dollars au cours du trimestre.
Universal Stainless & Alloy Products (USAP) berichtete über Rekordzahlen für das 3. Quartal 2024 mit Nettoumsätzen von 87,3 Millionen Dollar, was einem Anstieg von 5% im Vergleich zum 2. Quartal 2024 und 22% im Vergleich zum 3. Quartal 2023 entspricht. Der Nettogewinn erreichte einen Rekordwert von 11,1 Millionen Dollar, bzw. 1,11 Dollar pro verwässerter Aktie. Die Verkäufe im Luft- und Raumfahrtsektor, dem größten Markt des Unternehmens, erreichten einen Rekordwert von 71,4 Millionen Dollar, was 81,8% des Gesamtumsatzes ausmacht. Die Verkäufe von Premiumlegierungen beliefen sich auf 23,7 Millionen Dollar, bzw. 27,1% des Umsatzes. Die Bruttomarge blieb stark bei 25,2%, während das bereinigte EBITDA auf 19,3 Millionen Dollar anstieg. Das Unternehmen reduzierte seine Nettoverschuldung im Quartal um 9,0 Millionen Dollar.
- Record Q3 net sales of $87.3 million, up 22% YoY
- Record net income of $11.1 million, up from $1.9 million in Q3 2023
- Record aerospace sales of $71.4 million, up 32% YoY
- Strong gross margin of 25.2%
- Net debt reduced by $9.0 million in Q3
- Operating income nearly tripled compared to Q3 2023
- Gross margin slightly decreased from 25.4% in Q2 2024 to 25.2% in Q3 2024
- $0.6 million in transaction-related costs for pending Aperam deal
Insights
Universal Stainless delivered an outstanding Q3 2024 with multiple record-breaking metrics. Net sales reached a record
Key financial highlights include record net income of
This marks six consecutive quarters of profitable growth, demonstrating sustainable operational excellence and strong market positioning in the aerospace sector. The pending Aperam transaction could further strengthen the company's market position.
- Q3 2024 Net Sales are a record
$87.3 million ; Aerospace sales top$200 million YTD - Q3 2024 Net Income increased to record
$11.1 million , or$1.11 per diluted share - Gross Margin remained strong at
25.2% of sales
BRIDGEVILLE, Pa., Oct. 30, 2024 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) today reported record net sales of
Third quarter premium alloy sales were a record
Aerospace is the Company's largest market for premium alloy products. Third quarter aerospace sales reached a record
Profitability remained strong in the third quarter of 2024 with gross margin rising sequentially to
Third quarter 2024 operating income was
Third quarter net income increased to a record
The third quarter included approximately
Adjusted EBITDA increased to
Net cash generated by operating activities totaled
Christopher M. Zimmer, President and CEO, commented: “Our record performance in the third quarter continued to be driven by aerospace, with commercial aircraft engine demand especially strong.
“This is the sixth consecutive quarter that we have achieved profitable growth, which would not have been possible without the individual talents, efforts and commitment of every member of our team.”
PLEASE NOTE: Due to the pending transaction with Aperam, Universal will not hold a third quarter earnings conference call or webcast.
About Universal Stainless & Alloy Products, Inc.
Universal Stainless & Alloy Products, Inc., established in 1994 and 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, energy, and heavy equipment manufacturing. More information is available at www.univstainless.com.
Additional Information & Where to Find It
In connection with the transactions contemplated by the Merger Agreement, dated October 16, 2024 (the “Merger Agreement”), by and among Universal, Aperam US Holdco LLC, a Delaware limited liability company, and Aperam US Absolute LLC, a Delaware limited liability company (the “Transactions”), Universal intends to file with the Securities and Exchange Commission (the “SEC”) a proxy statement on Schedule 14A (the “Proxy Statement”) in preliminary and definitive form and other relevant documents. The definitive Proxy Statement will be mailed to Universal’s stockholders as of a record date to be established for voting on the Merger Agreement and will contain important information about the Transactions, the Merger Agreement and other related matters. This document is not a substitute for the Proxy Statement or any other relevant document which Universal may file with the SEC. BEFORE MAKING ANY VOTING DECISION, INVESTORS AND STOCKHOLDERS OF UNIVERSAL ARE URGED TO READ THE DEFINITIVE PROXY STATEMENT, ANY AMENDMENTS OR SUPPLEMENTS THERETO, ANY OTHER SOLICITING MATERIALS AND ANY OTHER DOCUMENTS TO BE FILED WITH THE SEC IN CONNECTION WITH THE CONTEMPLATED TRANSACTIONS OR INCORPORATED BY REFERENCE IN THE PROXY STATEMENT WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT UNIVERSAL, Aperam AND THE CONTEMPLATED TRANSACTIONS. Investors may obtain free copies of these materials (when they are available) and other documents filed by Universal with the SEC at the SEC’s website at www.sec.gov or from Universal at its website at investors.univstainless.com.
Participants in the Solicitation
Universal and its directors and executive officers may be deemed to be participants in the solicitation of proxies in respect of the Transactions. Information about the directors and executive officers of Universal, including a description of their direct or indirect interests, by security holdings or otherwise, is set forth in the Company’s proxy statement for its 2024 Annual Meeting of Stockholders, which was filed with the SEC on April 10, 2024, including under the headings “The Board of Directors,” “Security Ownership of Certain Beneficial Owners and Management,” “Executive Compensation,” and “Related Party Transactions.” To the extent holdings of Company Common Stock by the directors and executive officers of Universal have changed from the amounts of Company Common Stock held by such persons as reflected therein, such changes have been or will be reflected on Initial Statement of Beneficial Ownership of Securities on Form 3, Statement of Changes in Beneficial Ownership on Form 4, or Annual Statement of Changes in Beneficial Ownership on Form 5 filed with the SEC. These documents (when available) are available free of charge as described in the preceding section. Other information regarding the persons who may, under the rules of the SEC, be considered to be participants in the solicitation of proxies in connection with the Transactions will be set forth in Universal’s definitive Proxy Statement for its stockholder meeting at which the Merger Agreement will be submitted for approval by Universal’s stockholders.
Cautionary Note Regarding Forward-Looking Statements
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements can be identified by words like “may,” “will,” “likely,” “should,” “expect,” “anticipate,” “future,” “plan,” “believe,” “intend,” “goal,” “seek,” “estimate,” “project,” “target,” “continue,” or variations of such words and similar expressions. These forward-looking statements are not guarantees of future performance and involve risks, assumptions, and uncertainties, including, but not limited to, risks related to the ability of the parties to consummate the Transactions in a timely manner or at all; the satisfaction or waiver of the conditions to the closing the Transactions, including the failure to obtain antitrust or other regulatory approvals and clearances or approval of Universal’s stockholders; potential delays in consummating the Transactions; the occurrence of any event, change or other circumstance or condition that could give rise to termination of the Merger Agreement; the possibility that competing offers or acquisition proposals for Universal will be made; Aperam’s ability to realize the anticipated benefits of the Transactions and integrate Universal’s business; the effect of the announcement or pendency of the Transactions on Universal’s and Aperam’s business relationships, operating results and business generally; significant transaction costs and unknown liabilities; and litigation or regulatory actions related to the Transactions. In addition, the risks to which Universal’s business is subject, including those risks set forth in Part I, Item 1A of the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, filed with the SEC on March 29, 2024, and in Universal’s subsequent filings with the SEC, could adversely affect the Transactions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those indicated or anticipated by these forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. The forward-looking statements included in this communication are made only as of the date of this communication, and except as otherwise required by federal securities law, Universal does not assume any obligation nor does it intend to publicly update or revise any forward-looking statements to reflect new information, changed circumstances or unanticipated events.
Non-GAAP Financial Measures
This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These measures include earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and adjusted EBITDA. We include these measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings (loss), is a relevant indicator of trends relating to cash generating activity of our operations. adjusted EBITDA excludes the effect of share-based compensation expense and noted special items such as impairments and costs or income related to special events such as periods of low activity or insurance claims. We believe that excluding these costs provides a consistent comparison of the cash generating activity of our operations. We believe that EBITDA and adjusted EBITDA are useful to investors as they facilitate a comparison of our operating performance to other companies who also use EBITDA and adjusted EBITDA as supplemental operating measures. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measures. These non-GAAP measures may not be entirely comparable to similarly titled measures used by other companies due to potential differences among calculation methodologies. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP is included in the tables that follow.
| [TABLE FOLLOWS] | |
| UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA | ||||||||||||||||
| (Dollars in thousands; unaudited) | Three months ended September 30, | Nine months ended September 30, | ||||||||||||||
| 2024 | 2023 | 2024 | 2023 | |||||||||||||
| Net income | $ | 11,052 | $ | 1,930 | $ | 24,054 | $ | 2,313 | ||||||||
| Interest expense | 1,724 | 2,073 | 5,545 | 6,020 | ||||||||||||
| Income taxes | 2,426 | 300 | 5,544 | 419 | ||||||||||||
| Depreciation and amortization | 5,265 | 4,882 | 15,445 | 14,525 | ||||||||||||
| EBITDA | 20,467 | 9,185 | 50,588 | 23,277 | ||||||||||||
| Share-based compensation expense | 577 | 336 | 1,551 | 1,008 | ||||||||||||
| NMTC gain | (2,292 | ) | - | (2,292 | ) | - | ||||||||||
| Acquisition costs | 572 | - | 572 | - | ||||||||||||
| Adjusted EBITDA | $ | 19,324 | $ | 9,521 | $ | 50,419 | $ | 24,285 | ||||||||
| CONTACTS: | Christopher M. Zimmer | June Filingeri |
| President and | President | |
| Chief Executive Officer | Comm-Partners LLC | |
| (412) 257-7604 | (203) 972-0186 |
FAQ
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