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Universal Stainless & Alloy Products (USAP) investor relations material

Universal Stainless & Alloy Products Q3 2024 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q3 2024 earnings summary30 Oct, 2024

Executive summary

  • Net sales for Q3 2024 reached a record $87.3 million, up 22% year-over-year and 5% sequentially, driven by strong aerospace and premium alloy sales.

  • Net income for Q3 2024 was $11.1 million ($1.11 per diluted share), up from $1.9 million in Q3 2023 and $8.9 million in Q2 2024.

  • Aerospace sales accounted for $71.4 million (82% of Q3 sales), up 32% year-over-year.

  • Premium alloy sales hit a record $23.7 million, up 44% from Q3 2023.

  • On October 17, 2024, a definitive merger agreement was announced for acquisition by Aperam S.A., expected to close in Q1 2025.

Financial highlights

  • Q3 2024 gross margin was $22.0 million (25.2% of sales), up from $10.9 million (15.2%) in Q3 2023.

  • Operating income for Q3 2024 was $13.0 million, nearly triple Q3 2023.

  • Adjusted EBITDA for Q3 was $19.3 million (22.1% of sales), double Q3 2023.

  • For the nine months ended September 30, 2024, net sales were $247.6 million, up 20% year-over-year.

  • Net cash from operations in Q3 was $11.9 million, used for capex and reducing net debt by $9.0 million sequentially.

Outlook and guidance

  • Premium alloy sales are expected to continue growing, supported by robust aerospace and defense demand.

  • Company backlog at September 30, 2024 was $260.1 million, indicating strong future sales.

  • Forward-looking statements highlight risks related to the pending merger with Aperam, regulatory approvals, and integration challenges.

  • No Q3 earnings call or webcast due to the pending transaction with Aperam.

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Frequently asked questions

Universal Stainless & Alloy Products Inc. manufactures semi-finished and finished specialty steel products. Its product range includes bars, rods, ingots, and plates used in the aerospace, power generation, oil and gas, and general industrial markets. The company sells to service centers, forgers, and original equipment manufacturers. It is headquartered in Bridgeville, Pennsylvania, and its shares are listed on the NASDAQ.

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