Universal Stainless & Alloy Products, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Tax Rate Guidance for 2018
January 24, 2018 at 05:22 pm IST
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Universal Stainless & Alloy Products, Inc. announced unaudited consolidated earnings results for the fourth quarter and year ended December 31, 2017. For the quarter, the company reported total net sales of $50,274,000 against $34,159,000 a year ago. Loss before income taxes was $24,000 against $2,462,000 a year ago. Net income was $7,860,000 or $1.06 per diluted share against net loss of $1,585,000 or $0.22 per diluted share a year ago. Capital expenditures increased to $3.3 million against $1.3 million in the fourth quarter of 2016 and included down payments on capital projects scheduled for 2018 in Dunkirk and Bridgeville. The company's EBITDA for the fourth quarter of 2017 was $5.8 million, an increase of 2.3% from the 2017 third quarter and an increase of 82.4% from the prior year fourth quarter. Adjusted EBITDA was $5,969,000 against $3,598,000 a year ago. Company achieved moderate improvement in gross margin in the fourth quarter, which totaled $6.2 million or 12.3% of sales compared with 10.7% of sales in the 2017 third quarter and 9.1% of sales in the fourth quarter last year.
For the year, the company reported total net sales of $202,643,000 against $154,434,000 a year ago. Income before income taxes was $9,000 against loss before income taxes of $8,873,000 a year ago. Net income was $7,610,000 or $1.03 per diluted share against net loss of $5,347,000 or $0.74 per basic and diluted share a year ago. Capital expenditures $7,996,000 against $4,376,000 a year ago. Net cash provided by operating activities $1,105,000 against $8,406,000 a year ago. For full year 2017, the company's EBITDA was $22.9 million, an increase of $9.5 million, or 71.6%, compared with full year 2016. Adjusted EBITDA was $24,418,000 against $15,492,000 a year ago.
For 2018, company estimating go-forward effective tax rate to be in the range of 20%. Capital spending budgets for 2018 is model around $15 million.
Universal Stainless & Alloy Products, Inc. is engaged in manufacturing and marketing semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other premium alloyed steels. Its manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. It produces a variety of specialty steel grades using several manufacturing processes including vacuum induction melting (VIM), vacuum-arc remelting (VAR), electro-slag remelting (ESR) and argon oxygen decarburization (AOD). Its products are sold to service centers, forgers, rerollers and original equipment manufacturers (OEMs). Its customers further process its products for use in a variety of industries, including the aerospace, power generation, oil and gas, heavy equipment and general industrial markets. It also performs conversion services on materials supplied by customers.
Universal Stainless & Alloy Products, Inc. Announces Unaudited Consolidated Earnings Results for the Fourth Quarter and Year Ended December 31, 2017; Provides Tax Rate Guidance for 2018