EPS is $0.64 on Sales of $59.8 Million
Backlog of $92 Million is Up 33% from End of 4Q10
BRIDGEVILLE, Pa., April 27, 2011 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) reported today that sales for the first quarter of 2011 were $59.8 million, an increase of 72% from the first quarter of 2010 and up 16% from the 2010 fourth quarter.
Net income for the first quarter of 2011 was $4.4 million, or $0.64 per diluted share, which was more than triple the level of the first quarter of 2010 and up 25% from the fourth quarter of 2010. Business development expenses of $0.4 million pre-tax, equivalent to $0.04 per fully diluted share, were included in the first quarter 2011 results.
The Company recorded negative cash flow from operations of $1.7 million due to continuing investment in managed working capital to support increased sales activity and backlog. Capital expenditures for the first quarter of 2011 were $2.2 million. At March 31, 2011, the Company had cash of $30.5 million and total debt of $10.1 million.
The Company noted that total shipment volume for the first quarter of 2011 increased 54% from the first quarter of 2010 and 15% from the fourth quarter of 2010. Compared with the fourth quarter of 2010, volume shipped to the aerospace market increased 26%, service center plate shipments increased 71% and petrochemical volume rose 7%, while shipments to the power generation market were 6% lower than the record level in the fourth quarter.
Chairman, President and CEO Dennis Oates commented: "Robust business activity across all end markets led to strong first quarter growth including record consolidated bookings and record Dunkirk segment shipments. Activity levels reflected increasing confidence and higher build rates in aerospace, continued strong repair and maintenance spending in power generation, additional oil and gas exploration, and recovery in supply channel demand for tool steel. Our focus remains on driving profitable growth through further operational improvement and seizing market opportunities."
For the first quarter of 2011, the Universal Stainless & Alloy Products segment had sales of $55.2 million and operating income of $4.9 million, yielding an operating margin of 8.9% of sales. This compares with sales of $31.2 million and operating income of $1.9 million, or 6.2% of sales, in the first quarter of 2010. In the fourth quarter of 2010, sales were $46.1 million and operating income was $4.2 million, or 9.2% of sales.
Segment sales rose 77% from the first quarter of 2010 on a 65% increase in tons shipped mainly due to higher shipments to rerollers, destined mostly for the aerospace market. Segment sales rose 20% from the fourth quarter of 2010 on a 20% increase in tons shipped due to higher shipments to service centers and forgers.
Sales for the Dunkirk Specialty Steel segment reached a record $22.0 million for the first quarter of 2011 and operating income was $2.3 million, yielding an operating margin of 10.6% of sales. This compares with sales in the first quarter of 2010 of $10.1 million and operating income of $0.3 million, or 3.2% of sales. In the fourth quarter of 2010, sales were $17.1 million and operating income was $1.3 million, or 7.8% of sales.
Dunkirk's sales increased 118% from the first quarter of 2010 on a 96% increase in tons shipped mainly due to a more than doubling of shipments to service centers. Dunkirk's sales increased 28% from the fourth quarter of 2010 on a 30% increase in tons shipped, also mainly due to higher shipments to service centers.
A simultaneous webcast of the Company's conference call discussing the first quarter of 2011, scheduled at 10:00 a.m. (Eastern) today, will be available on the Company's website at , and thereafter archived on the website through the end of the second quarter of 2011.
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, tool steel and certain other alloyed steels. The Company's products are used in a variety of industries, including aerospace, power generation, petrochemical and heavy equipment manufacturing. Established in 1994, our experience, technical expertise, and dedicated workforce stand 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, risks associated with the receipt, pricing and timing of future customer orders, risks associated with significant fluctuations that may occur in raw material and energy prices, risks associated with the manufacturing process, labor and production yields, risks related to property, plant and equipment, and risks related to the ultimate outcome of the Company's current and future litigation and regulatory matters. The Company's actual results in future periods also may be impacted by various economic and market risk and uncertainties, many of which are 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.
CONTACT: Dennis Oates Chairman, President and CEO (412) 257-7609 Douglas McSorley VP Finance, CFO and Treasurer (412) 257-7606 June Filingeri President Comm-Partners LLC (203) 972-0186