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 fourth quarter ended September 30, 2023. In addition, the
Company announced that its Board of Directors has authorized a
regular quarterly cash dividend of $0.22 per outstanding share.
“We are proud of everything we accomplished in
2023, both in our 4th quarter and for the fiscal year. Revenue in
the fourth quarter exceeded $160 million, and increased over 20%
for the fiscal year, driven by company record revenues in both the
aerospace and industrial gas turbine markets. In addition, for the
fiscal year, our backlog increased 23.2%, and, when removing the
impact of the raw material headwinds, our EBITDA run rate
approached $100 million,” said Michael L. Shor, President and Chief
Executive Officer. “Looking forward to fiscal 2024, we expect
continued top line growth, combined with incremental improvements
in gross margin. In addition, we believe that we have the
backlog, people, inventory, and lead times in place to begin to
generate cash throughout fiscal year 2024.”
4th
Quarter Results
Net Revenues. Net revenues were $160.6
million in the fourth quarter of fiscal 2023, an increase of 11.7%
from the same period of fiscal 2022 due to an increase in product
average selling price per pound of $3.24 or 11.4%. The increase in
product average selling price per pound largely reflected price
increases and other sales factors, which increased the product
average selling price per pound by approximately $2.63 and a
favorable product mix, which increased the product average selling
price per pound by approximately $0.91. Partially offsetting these
increases were lower market prices of raw materials, which
decreased product average selling price per pound by approximately
$0.30. Pounds sold during the quarter were adversely impacted by an
unplanned outage of a critical piece of equipment in the Kokomo
manufacturing facility, however the Company shipped 4.9 million
pounds during the fourth quarter which was approximately the same
as the fourth quarter of fiscal 2022.
Cost of Sales. Cost of sales was $130.8 million,
or 81.4% of net revenues, in the fourth quarter of fiscal 2023
compared to $111.9 million, or 77.8% of net revenues, in the same
period of fiscal 2022. Cost of sales as a percentage of revenues in
the fourth quarter of fiscal 2023 was higher than fourth quarter of
fiscal 2022 due to higher raw material prices included in cost of
sales relative to the impact of raw material price adjustors in
selling prices.
Gross Profit. Gross profit was $29.8
million for the fourth quarter of fiscal 2023, a decrease of $2.1
million from the same period of fiscal 2022. Gross profit was
adversely impacted by higher raw material prices included in cost
of sales relative to the impact of raw material price adjustors in
selling prices, which decreased gross profit. In the fourth quarter
of fiscal 2022, gross profit benefited from lower raw material
prices included in cost of sales relative to the impact of raw
material price adjustors in selling prices, which increased gross
profit.
Selling, General and Administrative
Expense. Selling, general and administrative expense was $12.5
million for the fourth quarter of fiscal 2023, an increase of $0.4
million from the same period of fiscal 2022. The increase in
expense from the fourth quarter of fiscal 2022 was driven by a loss
on the disposal of some aged equipment that reached the end of its
useful life. Selling, general and administrative expense as a
percent of net revenues decreased from 8.4% in the fourth quarter
of fiscal 2022 to 7.8% in the fourth quarter of fiscal 2023,
largely driven by the higher net revenues in the fourth quarter of
fiscal 2023.
Research and Technical Expense. Research and
technical expense was $1.1 million, or 0.7% of net revenue, for the
fourth quarter of fiscal 2023, compared to $1.0 million, or 0.7% of
net revenue, in the same period of fiscal 2022.
Operating Income. The above factors,
including the impacts from raw material prices in selling prices
differing from raw material prices included in cost of sales, led
to a decrease in operating income to $16.1 million in the fourth
quarter of fiscal 2023 compared to $18.8 million in the same period
of fiscal 2022.
Nonoperating retirement benefit expense
(income). Nonoperating retirement benefit expense (income) was
a benefit of $0.7 million in the fourth quarter of fiscal 2023
compared to a benefit of $1.4 million in the same period of fiscal
2022. The lower income recorded in nonoperating retirement benefit
expense (income) in the fourth quarter of fiscal 2023 was primarily
driven by an increase in the discount rate used in the actuarial
valuation of the U.S. pension plan liability as of September 30,
2022 which resulted in a higher interest cost component of
nonoperating retirement benefit expense (income) in the fourth
quarter of fiscal 2023 when compared to the fourth quarter of
fiscal 2022. Partially offsetting the higher interest cost was the
amortization of the actuarial gains of the U.S. pension plan
liability in the fourth quarter of fiscal 2023.
Interest expense. Interest expense was $2.1 million
in the fourth quarter of fiscal 2023 compared to $0.9 million in
the same period of fiscal 2022 primarily driven by higher
borrowings against the revolving line of credit and higher interest
rates.
Income Taxes. Income tax expense was $1.7
million during the fourth quarter of fiscal 2023, a decrease of
$1.2 million from expense of $2.9 million in the same period of
fiscal 2022, driven primarily by a difference in income before
income taxes of $4.5 million. Income tax expense in the fourth
quarter of fiscal 2023 as a percentage of income before income
taxes was 11.5% as compared to 15.3% in the fourth quarter of
fiscal 2022. The decrease was largely driven by lower tax expense
on foreign sourced income in the fourth quarter of fiscal 2023 as
compared to the same period of fiscal 2022.
Net Income. As a result of the above factors,
net income in the fourth quarter of fiscal 2023 was $13.1 million,
compared to $16.3 million in the same period of fiscal 2022.
Volumes and Pricing
Solid increases in volume and average selling
price per pound were achieved in aerospace and industrial gas
turbines in fiscal 2023. Fiscal 2023 aerospace volume increased
10.5% along with a 14.3% increase in aerospace average selling
price, resulting in a 26.3%, or $60.4 million, aerospace revenue
increase compared to the prior year. This increase was primarily
driven by the single-aisle commercial aircraft recovery, with the
double-aisle aircraft recovery just beginning. Industrial gas
turbine (IGT) volumes were up 19.7% along with a 9.8% increase in
the IGT average selling price, resulting in a 31.4%, or $28.9
million, IGT revenue increase compared to the prior year due to
market share gains along with higher usage of a Haynes proprietary
alloy in a maintenance repair and overhaul application for a
certain turbine. Fiscal 2023 volumes in the chemical processing
industry (CPI) decreased (20.8)% compared to the prior year;
however, the CPI average selling price per pound increased 26.7%,
resulting in flat revenue compared to the prior year. The Company
focused on higher-value alloys and applications, with less focus on
the commodity lower-value segment of the CPI market. Similarly,
volumes in other markets decreased (11.5)% compared to the prior
year; however, the other markets’ average selling price per pound
increased 26.8%, resulting in a 12.3% increase compared to the
prior year as a result of similar mix management strategies.
The product average selling price per pound in
fiscal 2023 was $30.43, which was a 14.9% increase over prior
fiscal year. The product average selling price per pound for the
fourth quarter of fiscal 2023 was $31.56, which was an increase of
11.5% from the same period last year. This increase was driven by
raw material costs, price increases, and product
mix.
Gross Profit Margin Trend
Performance
A significant strategic effort to improve gross
margins has occurred over the past few years involving both pricing
actions and cost improvements. This effort was beginning to gain
traction with gross profit as a percent of revenue hitting
approximately 18% in the months preceding the pandemic. As a result
of this strategy, the Company reduced the volume breakeven point by
over 25%. The Company previously struggled to be profitable at
roughly 5.0 million pounds. Now, with the current product mix, the
Company can generate profits at lower volumes as first demonstrated
in the third quarter of fiscal 2021, producing a positive net
income at only 3.7 million pounds shipped. As volume continued to
rise during fiscal 2022 and fiscal 2023, incremental profitability
leverage helped improve gross margins significantly when
considering neutral raw material impact.
Rising or falling raw material costs can impact
gross margins significantly. Rising raw material market prices
helped expand gross margins in fiscal 2022 especially in the third
quarter. Falling raw material market prices compress gross margins
which occurred during fiscal 2023 especially in the first and
fourth quarters. Neutral of this estimated impact of raw material
fluctuations (as well as the fiscal 2023 third quarter
cyber-incident), gross margins remained near 21% or higher in the
last six quarters.
Backlog
Backlog has significantly increased due to
strong demand. In response, the Company added production headcount
and invested in inventory in order to increase shipping levels and
net revenue. The backlog peaked in the third quarter of fiscal 2023
at $468.1 million, then declined $7.8 million as fourth quarter
revenue increased to $160.6 million; the highest quarterly revenue
of fiscal 2023. The Company’s backlog dollars at September 30, 2023
increased compared September 30, 2022 by 23.2% due to a 14.4%
increase in backlog pounds combined with a 7.7% increase in backlog
average selling price. The increase in backlog was primarily driven
by sales order increases in the industrial gas turbine market and
the aerospace market.
Capital Spending
Capital investment in fiscal 2023 was
$16.4 million, and the capital spending in fiscal 2024 is
planned to be between $25.0 million and $35.0 million.
Working Capital
Controllable working capital, which includes
accounts receivable, inventory, accounts payable and accrued
expenses, was $449.4 million at September 30, 2023, an
increase of $71.1 million or 18.8% from $378.3 million at
September 30, 2022. The increase resulted primarily from
inventory increasing by $56.5 million during fiscal 2023, accounts
receivable increasing by $11.4 million during the same period, and
accounts payable and accrued expenses decreasing by $3.2 million
during the same period.
Liquidity
The Company had cash and cash equivalents of
$10.7 million as of September 30, 2023 compared to $8.4 million as
of September 30, 2022. Additionally, the Company had $114.8
million of borrowings against the $200.0 million line of credit
outstanding with remaining capacity available of $85.2 million as
of September 30, 2023, putting total liquidity at $95.9
million.
Net cash used in operating activities during
fiscal 2023 was $16.7 million compared to net cash used in
operating activities of $79.5 million in fiscal 2022. The decrease
in cash used in operating activities during fiscal 2023 was driven
by an increase in inventory of $50.4 million as compared to an
increase of $116.8 million during fiscal 2022 and an increase in
accounts receivable of $8.2 million as compared to an increase of
$42.7 million in fiscal 2022. This was partially offset by a
decrease in accounts payable and accrued expenses of $8.5 million
during fiscal 2023 as compared to an increase of $10.7 million in
fiscal 2022, a difference of $19.2 million.
Net cash used in investing activities was $16.4
million during fiscal 2023, which was higher than net cash used in
investing activities of $15.1 million during in fiscal 2022 due to
higher additions to property, plant and equipment.
Net cash provided by financing activities was
$34.6 million during fiscal 2023, a decrease of $22.0 million from
cash provided by financing activities of $56.6 million in fiscal
2022. This difference was primarily driven by a net borrowing of
$40.1 million against the revolving line of credit during fiscal
2023 compared to a net borrowing of $74.7 million in fiscal 2022.
This was partially offset with proceeds from the exercise of stock
options of $8.2 million during fiscal 2023 as compared to proceeds
from the exercise of stock options of $0.5 million in fiscal 2022
and lower share repurchases of $0.9 million in fiscal 2023 as
compared to $7.2 million during the same period of fiscal 2022.
Dividends paid of $11.2 million during fiscal 2023 were higher than
dividends paid of $11.1 million in fiscal 2022.
Dividend Declared
On November 16, 2023, the Company announced that
the Board of Directors declared a regular quarterly cash dividend
of $0.22 per outstanding share of the Company’s common stock. The
dividend is payable December 15, 2023 to stockholders of record at
the close of business on December 1, 2023. Any future
dividends will be at the discretion of the Board of Directors.
Guidance
For the full fiscal year 2024, we expect
continued volume and revenue growth, incremental improvements in
gross margin, and positive cash flow from operations. The Company
expects the revolver balance to decline in fiscal year 2024,
gaining momentum as we progress through the fiscal year. Revenue
and earnings in the first quarter of fiscal 2024 are expected to be
higher compared to the first quarter of fiscal 2023, but lower than
the fourth quarter of fiscal 2023. First quarter results are
typically lower due to the impact of holidays, planned equipment
maintenance outages and customers managing their calendar year-end
balance sheets. In addition, the Company is planning a three week
upgrade to the Kokomo Anneal and Kolene line in the quarter, which
may impact efficiency and the mix of products sold in the first
quarter of fiscal 2024.
Earnings Conference Call
The Company will host a conference call on
Friday, November 17, 2023 to discuss its results for the fourth
quarter of fiscal 2023. Michael Shor, President and Chief Executive
Officer, and Daniel Maudlin, Vice President of Finance and Chief
Financial Officer, will host the call and be available to answer
questions.
To participate, please dial the teleconferencing
number shown below five minutes prior to the scheduled conference
time.
Date: |
Friday, November 17, 2023 |
Dial-In Numbers: |
888-506-0062 (Domestic) |
Time: |
9:00 a.m. Eastern Time |
|
973-528-0011 (International) |
|
|
Access Code: |
174395 |
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|
A live Webcast of the conference call will be
available at www.haynesintl.com.
For those unable to participate, a
teleconference replay will be available from Friday, November 17th
at 11:00 a.m. ET, through 11:59 p.m. ET on Sunday, December 17,
2023. To listen to the replay, please dial:
Replay: |
877-481-4010 (Domestic) |
|
919-882-2331 (International) |
Replay Passcode: |
49391 |
|
|
A replay of the Webcast will also be available
for one year at www.haynesintl.com.
Non-GAAP Financial Measures
This press release includes certain financial
measures, including Adjusted EBITDA for the fiscal quarters ended
September 30, 2022 and 2023, Adjusted gross profit and Adjusted
gross profit % – excluding the estimated impact of nickel and
cobalt fluctuations for the fiscal quarters ended September 30,
2022 and 2023 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 and dividends. 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
SUBSIDIARIESCONSOLIDATED STATEMENTS OF
OPERATIONS(Unaudited)(in
thousands, except per share data) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
Three Months Ended September 30, |
|
Year Ended September 30, |
|
|
2022 |
|
|
|
2023 |
|
|
|
2022 |
|
|
|
2023 |
|
Net revenues |
$ |
143,810 |
|
|
$ |
160,596 |
|
|
$ |
490,461 |
|
|
$ |
589,956 |
|
Cost of sales |
|
111,889 |
|
|
|
130,814 |
|
|
|
384,128 |
|
|
|
480,196 |
|
Gross profit |
|
31,921 |
|
|
|
29,782 |
|
|
|
106,333 |
|
|
|
109,760 |
|
Selling, general and administrative expense |
|
12,098 |
|
|
|
12,542 |
|
|
|
47,089 |
|
|
|
48,028 |
|
Research and technical expense |
|
1,016 |
|
|
|
1,098 |
|
|
|
3,822 |
|
|
|
4,126 |
|
Operating income |
|
18,807 |
|
|
|
16,142 |
|
|
|
55,422 |
|
|
|
57,606 |
|
Nonoperating retirement benefit expense (income) |
|
(1,391 |
) |
|
|
(737 |
) |
|
|
(4,655 |
) |
|
|
(1,834 |
) |
Interest income |
|
(3 |
) |
|
|
(23 |
) |
|
|
(18 |
) |
|
|
(56 |
) |
Interest expense |
|
917 |
|
|
|
2,072 |
|
|
|
2,481 |
|
|
|
7,594 |
|
Income before income taxes |
|
19,284 |
|
|
|
14,830 |
|
|
|
57,614 |
|
|
|
51,902 |
|
Provision for income taxes |
|
2,948 |
|
|
|
1,702 |
|
|
|
12,527 |
|
|
|
9,927 |
|
Net income |
$ |
16,336 |
|
|
$ |
13,128 |
|
|
$ |
45,087 |
|
|
$ |
41,975 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
1.31 |
|
|
$ |
1.03 |
|
|
$ |
3.62 |
|
|
$ |
3.31 |
|
Diluted |
$ |
1.30 |
|
|
$ |
1.02 |
|
|
$ |
3.57 |
|
|
$ |
3.26 |
|
Weighted Average Common Shares Outstanding |
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
12,345 |
|
|
|
12,611 |
|
|
|
12,346 |
|
|
|
12,567 |
|
Diluted |
|
12,497 |
|
|
|
12,798 |
|
|
|
12,506 |
|
|
|
12,780 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Dividends declared per common share |
$ |
0.22 |
|
|
$ |
0.22 |
|
|
$ |
0.88 |
|
|
$ |
0.88 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 2
HAYNES INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED BALANCE
SHEETS(Unaudited)(in thousands,
except share data) |
|
|
|
|
|
|
|
September 30, |
|
September 30, |
|
|
2022 |
|
|
|
2023 |
|
ASSETS |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
$ |
8,440 |
|
|
$ |
10,723 |
|
Accounts receivable, less allowance for credit losses of $428 and
$459 at September 30, 2022 and September 30, 2023,
respectively |
|
94,912 |
|
|
|
106,292 |
|
Inventories |
|
357,556 |
|
|
|
414,077 |
|
Income taxes receivable |
|
— |
|
|
|
2,372 |
|
Other current assets |
|
3,514 |
|
|
|
5,702 |
|
Total current assets |
|
464,422 |
|
|
|
539,166 |
|
Property, plant and equipment, net |
|
142,772 |
|
|
|
142,540 |
|
Deferred income taxes |
|
5,680 |
|
|
|
3,608 |
|
Other assets |
|
9,723 |
|
|
|
10,523 |
|
Goodwill |
|
4,789 |
|
|
|
4,789 |
|
Other intangible assets, net |
|
4,909 |
|
|
|
5,655 |
|
Total assets |
$ |
632,295 |
|
|
$ |
706,281 |
|
LIABILITIES AND STOCKHOLDERS’ EQUITY |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Accounts payable |
$ |
54,886 |
|
|
$ |
52,812 |
|
Accrued expenses |
|
19,294 |
|
|
|
18,201 |
|
Income taxes payable |
|
828 |
|
|
|
336 |
|
Accrued pension and postretirement benefits |
|
3,371 |
|
|
|
2,940 |
|
Deferred revenue—current portion |
|
2,500 |
|
|
|
2,500 |
|
Total current liabilities |
|
80,879 |
|
|
|
76,789 |
|
Revolving credit facilities - Long-term |
|
74,721 |
|
|
|
114,843 |
|
Long-term obligations (less current portion) |
|
7,848 |
|
|
|
7,448 |
|
Deferred revenue (less current portion) |
|
7,829 |
|
|
|
5,329 |
|
Deferred income taxes |
|
3,103 |
|
|
|
3,686 |
|
Operating lease liabilities |
|
576 |
|
|
|
362 |
|
Accrued pension benefits (less current portion) |
|
21,090 |
|
|
|
14,019 |
|
Accrued postretirement benefits (less current portion) |
|
60,761 |
|
|
|
49,481 |
|
Total liabilities |
|
256,807 |
|
|
|
271,957 |
|
Commitments and contingencies |
|
— |
|
|
|
— |
|
Stockholders’ equity: |
|
|
|
|
|
Common stock, $0.001 par value (40,000,000 shares authorized,
12,854,773 and 13,124,401 shares issued and 12,479,741 and
12,731,661 shares outstanding at September 30, 2022 and
September 30, 2023, respectively) |
|
13 |
|
|
|
13 |
|
Preferred stock, $0.001 par value (20,000,000 shares authorized, 0
shares issued and outstanding) |
|
— |
|
|
|
— |
|
Additional paid-in capital |
|
266,193 |
|
|
|
277,713 |
|
Accumulated earnings |
|
135,040 |
|
|
|
165,825 |
|
Treasury stock, 375,032 shares at September 30, 2022 and
392,740 shares at September 30, 2023 |
|
(14,666 |
) |
|
|
(15,600 |
) |
Accumulated other comprehensive income (loss) |
|
(11,092 |
) |
|
|
6,373 |
|
Total stockholders’ equity |
|
375,488 |
|
|
|
434,324 |
|
Total liabilities and stockholders’ equity |
$ |
632,295 |
|
|
$ |
706,281 |
|
|
|
|
|
|
|
|
|
Schedule 3
HAYNES INTERNATIONAL, INC. AND
SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH
FLOWS(Unaudited)(in
thousands) |
|
|
|
|
|
Year Ended September 30, |
|
|
2022 |
|
|
|
2023 |
|
Cash flows from operating activities: |
|
|
|
|
|
Net income |
$ |
45,087 |
|
|
$ |
41,975 |
|
Adjustments to reconcile net income (loss) to net cash provided by
(used in) operating activities: |
|
|
|
|
|
Depreciation |
|
18,289 |
|
|
|
17,996 |
|
Amortization |
|
780 |
|
|
|
579 |
|
Pension and post-retirement expense - U.S. and U.K. |
|
1,898 |
|
|
|
2,243 |
|
Change in long-term obligations |
|
(136 |
) |
|
|
(108 |
) |
Stock compensation expense |
|
3,599 |
|
|
|
3,290 |
|
Deferred revenue |
|
(2,500 |
) |
|
|
(2,500 |
) |
Deferred income taxes |
|
6,442 |
|
|
|
(608 |
) |
Loss on disposition of property |
|
18 |
|
|
|
498 |
|
Change in assets and liabilities: |
|
|
|
|
|
Accounts receivable |
|
(42,710 |
) |
|
|
(8,159 |
) |
Inventories |
|
(116,780 |
) |
|
|
(50,440 |
) |
Other assets |
|
3,464 |
|
|
|
(3,106 |
) |
Accounts payable and accrued expenses |
|
10,696 |
|
|
|
(8,465 |
) |
Income taxes |
|
1,780 |
|
|
|
(2,848 |
) |
Accrued pension and postretirement benefits |
|
(9,408 |
) |
|
|
(7,064 |
) |
Net cash used in operating activities |
|
(79,481 |
) |
|
|
(16,717 |
) |
Cash flows from investing activities: |
|
|
|
|
|
Additions to property, plant and equipment |
|
(15,114 |
) |
|
|
(16,397 |
) |
Net cash used in investing activities |
|
(15,114 |
) |
|
|
(16,397 |
) |
Cash flows from financing activities: |
|
|
|
|
|
Revolving credit facility borrowings |
|
115,528 |
|
|
|
156,856 |
|
Revolving credit facility repayments |
|
(40,807 |
) |
|
|
(116,734 |
) |
Dividends paid |
|
(11,072 |
) |
|
|
(11,192 |
) |
Proceeds from exercise of stock options |
|
537 |
|
|
|
8,230 |
|
Payment for purchase of treasury stock |
|
(7,243 |
) |
|
|
(934 |
) |
Payment for debt issuance cost |
|
(103 |
) |
|
|
(1,325 |
) |
Payments on long-term obligations |
|
(278 |
) |
|
|
(315 |
) |
Net cash provided by financing activities |
|
56,562 |
|
|
|
34,586 |
|
Effect of exchange rates on cash |
|
(1,253 |
) |
|
|
811 |
|
Increase (decrease) in cash and cash equivalents: |
|
(39,286 |
) |
|
|
2,283 |
|
Cash and cash equivalents: |
|
|
|
|
|
Beginning of period |
|
47,726 |
|
|
|
8,440 |
|
End of period |
$ |
8,440 |
|
|
$ |
10,723 |
|
|
|
|
|
|
|
|
|
Schedule 4
Quarterly Data
The unaudited quarterly results of operations of
the Company for the most recent eight quarters are as follows.
|
Fiscal 2022 |
|
Quarter Ended |
|
December 31 |
|
|
March 31 |
|
|
June 30 |
|
|
September 30 |
Net revenues |
$ |
99,430 |
|
|
$ |
117,056 |
|
|
$ |
130,165 |
|
|
$ |
143,810 |
|
Gross profit |
|
17,777 |
|
|
|
23,413 |
|
|
|
33,222 |
|
|
|
31,921 |
|
Gross profit % |
|
17.9 |
% |
|
|
20.0 |
% |
|
|
25.5 |
% |
|
|
22.2 |
|
Adjusted gross profit(1) |
|
16,077 |
|
|
|
20,813 |
|
|
|
29,122 |
|
|
|
30,921 |
|
Adjusted gross profit %(1) |
|
16.2 |
% |
|
|
17.8 |
% |
|
|
22.4 |
% |
|
|
21.5 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
4,659 |
|
|
|
8,484 |
|
|
|
15,608 |
|
|
|
16,336 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
|
$ |
0.68 |
|
|
$ |
1.25 |
|
|
$ |
1.31 |
|
Diluted |
$ |
0.37 |
|
|
$ |
0.67 |
|
|
$ |
1.24 |
|
|
$ |
1.30 |
|
|
Fiscal 2023 |
|
Quarter Ended |
|
December 31 |
|
|
March 31 |
|
|
June 30 |
|
|
September 30 |
Net revenues |
$ |
132,673 |
|
|
$ |
152,786 |
|
|
$ |
143,901 |
|
|
$ |
160,596 |
|
Gross profit |
|
23,038 |
|
|
|
30,878 |
|
|
|
26,062 |
|
|
|
29,782 |
|
Gross profit % |
|
17.4 |
% |
|
|
20.2 |
% |
|
|
18.1 |
% |
|
|
18.5 |
|
Adjusted gross profit(1) |
|
28,638 |
|
|
|
32,578 |
|
|
|
27,562 |
|
|
|
33,582 |
|
Adjusted gross profit %(1) |
|
21.6 |
% |
|
|
21.3 |
% |
|
|
19.2 |
% |
|
|
20.9 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
7,739 |
|
|
|
12,349 |
|
|
|
8,759 |
|
|
|
13,128 |
|
Net income per share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.62 |
|
|
$ |
0.98 |
|
|
$ |
0.69 |
|
|
$ |
1.03 |
|
Diluted |
$ |
0.61 |
|
|
$ |
0.96 |
|
|
$ |
0.68 |
|
|
$ |
1.02 |
|
(1) Adjusted gross profit
margin and adjusted gross profit margin percentage exclude
estimated impact of nickel and cobalt fluctuations (See Schedule 6
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 |
|
September 30, |
|
December 31, |
|
March 31, |
|
June 30, |
|
September 30, |
|
2022 |
|
2022 |
|
2023 |
|
2023 |
|
2023 |
Net revenues(in thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace |
$ |
67,647 |
|
|
$ |
64,518 |
|
|
$ |
66,612 |
|
|
$ |
77,456 |
|
|
$ |
81,805 |
|
Chemical processing |
|
27,185 |
|
|
|
22,715 |
|
|
|
28,605 |
|
|
|
17,696 |
|
|
|
23,003 |
|
Industrial gas turbines |
|
28,501 |
|
|
|
26,025 |
|
|
|
32,420 |
|
|
|
28,073 |
|
|
|
34,213 |
|
Other markets |
|
14,946 |
|
|
|
14,722 |
|
|
|
17,550 |
|
|
|
13,416 |
|
|
|
14,599 |
|
Total product revenue |
|
138,279 |
|
|
|
127,980 |
|
|
|
145,187 |
|
|
|
136,641 |
|
|
|
153,620 |
|
Other revenue |
|
5,531 |
|
|
|
4,693 |
|
|
|
7,599 |
|
|
|
7,260 |
|
|
|
6,976 |
|
Net revenues |
$ |
143,810 |
|
|
$ |
132,673 |
|
|
$ |
152,786 |
|
|
$ |
143,901 |
|
|
$ |
160,596 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shipments by markets(in thousands of pounds) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace |
|
2,402 |
|
|
|
2,187 |
|
|
|
1,982 |
|
|
|
2,376 |
|
|
|
2,533 |
|
Chemical processing |
|
921 |
|
|
|
786 |
|
|
|
845 |
|
|
|
462 |
|
|
|
653 |
|
Industrial gas turbines |
|
1,242 |
|
|
|
1,289 |
|
|
|
1,430 |
|
|
|
1,311 |
|
|
|
1,412 |
|
Other markets |
|
318 |
|
|
|
290 |
|
|
|
410 |
|
|
|
278 |
|
|
|
269 |
|
Total shipments |
|
4,883 |
|
|
|
4,552 |
|
|
|
4,667 |
|
|
|
4,427 |
|
|
|
4,867 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average selling price per pound |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Aerospace |
$ |
28.16 |
|
|
$ |
29.50 |
|
|
$ |
33.61 |
|
|
$ |
32.60 |
|
|
$ |
32.30 |
|
Chemical processing |
|
29.52 |
|
|
|
28.90 |
|
|
|
33.85 |
|
|
|
38.30 |
|
|
|
35.23 |
|
Industrial gas turbines |
|
22.95 |
|
|
|
20.19 |
|
|
|
22.67 |
|
|
|
21.41 |
|
|
|
24.23 |
|
Other markets |
|
47.00 |
|
|
|
50.77 |
|
|
|
42.80 |
|
|
|
48.26 |
|
|
|
54.27 |
|
Total product(product only; excluding other
revenue) |
$ |
28.32 |
|
|
$ |
28.12 |
|
|
$ |
31.11 |
|
|
$ |
30.87 |
|
|
$ |
31.56 |
|
Total average selling price(including other
revenue) |
$ |
29.45 |
|
|
$ |
29.15 |
|
|
$ |
32.74 |
|
|
$ |
32.51 |
|
|
$ |
33.00 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 6
HAYNES INTERNATIONAL, INC. AND
SUBSIDIARIESNON-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 September 30, |
|
|
Year Ended September 30, |
|
|
2022 |
|
|
2023 |
|
|
2022 |
|
|
2023 |
|
Operating income |
$ |
18,807 |
|
|
$ |
16,142 |
|
|
$ |
55,422 |
|
|
$ |
57,606 |
|
Depreciation |
|
4,479 |
|
|
|
4,516 |
|
|
|
18,289 |
|
|
|
17,996 |
|
Amortization (excluding debt issuance costs recorded in interest
expense) |
|
33 |
|
|
|
32 |
|
|
|
133 |
|
|
|
129 |
|
Stock compensation expense |
|
849 |
|
|
|
880 |
|
|
|
3,599 |
|
|
|
3,290 |
|
Adjusted EBITDA |
$ |
24,168 |
|
|
$ |
21,570 |
|
|
$ |
77,443 |
|
|
$ |
79,021 |
|
Adjusted EBITDA as a percentage of Net revenues |
|
16.8 |
% |
|
|
13.4 |
% |
|
|
15.8 |
% |
|
|
13.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Schedule 7
HAYNES INTERNATIONAL, INC. AND
SUBSIDIARIESNON-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.
|
Fiscal 2022 |
|
Quarter Ended |
|
Year Ended |
|
December 31 |
|
March 31 |
|
June 30 |
|
September 30 |
|
September 30 |
Gross profit |
$ |
17,777 |
|
|
$ |
23,413 |
|
|
$ |
33,222 |
|
|
$ |
31,921 |
|
|
$ |
106,333 |
|
Gross profit % |
|
17.9 |
% |
|
|
20.0 |
% |
|
|
25.5 |
% |
|
|
22.2 |
% |
|
|
21.7 |
% |
Estimated impact of nickel and cobalt fluctuations |
|
(1,700 |
) |
|
|
(2,600 |
) |
|
|
(4,100 |
) |
|
|
(1,000 |
) |
|
|
(9,400 |
) |
Adjusted gross profit - excluding the estimated impact of nickel
and cobalt fluctuations |
$ |
16,077 |
|
|
|
20,813 |
|
|
|
29,122 |
|
|
|
30,921 |
|
|
|
96,933 |
|
Adjusted gross profit % - excluding the estimated impact of nickel
and cobalt fluctuations |
|
16.2 |
% |
|
|
17.8 |
% |
|
|
22.4 |
% |
|
|
21.5 |
% |
|
|
19.8 |
% |
|
Fiscal 2023 |
|
|
Quarter Ended |
|
|
Year Ended |
|
|
December 31 |
|
|
March 31 |
|
|
June 30 |
|
|
September 30 |
|
|
September 30 |
|
Gross profit |
$ |
23,038 |
|
|
$ |
30,878 |
|
|
$ |
26,062 |
|
|
$ |
29,782 |
|
|
$ |
109,760 |
|
Gross profit % |
|
17.4 |
% |
|
|
20.2 |
% |
|
|
18.1 |
% |
|
|
18.5 |
|
|
|
18.6 |
% |
Estimated impact of nickel and cobalt fluctuations |
|
5,600 |
|
|
|
1,700 |
|
|
|
1,500 |
|
|
|
3,800 |
|
|
|
12,600 |
|
Adjusted gross profit - excluding the estimated impact of nickel
and cobalt fluctuations |
|
28,638 |
|
|
|
32,578 |
|
|
|
27,562 |
|
|
|
33,582 |
|
|
|
122,360 |
|
Adjusted gross profit % - excluding the estimated impact of nickel
and cobalt fluctuations |
|
21.6 |
% |
|
|
21.3 |
% |
|
|
19.2 |
% |
|
|
20.9 |
% |
|
|
20.7 |
% |
|
|
|
Contact: |
|
Daniel Maudlin |
|
|
Vice President of Finance and Chief Financial Officer |
|
|
Haynes International, Inc. |
|
|
765-456-6102 |
Haynes (NASDAQ:HAYN)
과거 데이터 주식 차트
부터 4월(4) 2024 으로 5월(5) 2024
Haynes (NASDAQ:HAYN)
과거 데이터 주식 차트
부터 5월(5) 2023 으로 5월(5) 2024