BRIDGEVILLE, Pa., Oct. 30, 2024 (GLOBE NEWSWIRE) — Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) today reported record net sales of $87.3 million for the third quarter of 2024, an increase of 5% from the second quarter of 2024, and up 22% from the third quarter of 2023. Year-to-date net sales of $247.6 million were up 20% from the same period in 2023.
Third quarter premium alloy sales were a record $23.7 million, or 27.1% of sales, up 14% from the 2024 second quarter and up 44% from the third quarter of 2023. Year-to-date premium alloy sales increased 37% to $64.5 million, or 26.0% of sales.
Aerospace is the Company’s largest market for premium alloy products. Third quarter aerospace sales reached a record $71.4 million, or 81.8% of sales, an increase of 4% from the second quarter of 2024, and up 32% from the third quarter of 2023. Year-to-date aerospace sales rose 30% compared to the same period in 2023 to $200.2 million, or 80.8% of sales.
Profitability remained strong in the third quarter of 2024 with gross margin rising sequentially to $22.0 million, or 25.2% of sales. That compares with a $21.0 million, or 25.4% of sales, in the 2024 second quarter, and $10.9 million, or 15.2% of sales, in the third quarter of 2023.
Third quarter 2024 operating income was $13.0 million, an increase from the 2024 second quarter and nearly triple the third quarter of 2023.
Third quarter net income increased to a record $11.1 million, or $1.11 per diluted share, from $8.9 million, or $0.90 per diluted share, in the 2024 second quarter, and $1.9 million, or $0.20 per diluted share, in the 2023 third quarter. Year-to-date net income reached $24.1 million, or $2.45 per diluted share.
The third quarter included approximately $0.6 million of costs within selling, general and administrative expenses related to the previously announced pending transaction with Aperam, and a net $2.2 million pre-tax gain associated with the milestone reached under the Company’s New Markets Tax Credit investment. The net impact of these nonrecurring items on EBITDA and pretax income was approximately $1.7 million. After tax, the impact on net income was approximately $1.4 million, or $0.14 per diluted share.
Adjusted EBITDA increased to $19.3 million, or 22.1% of sales, in the 2024 third quarter, from $18.5 million, or 22.3% of sales, in the 2024 second quarter, and was double the $9.5 million, or 13.4% of sales, reported in the third quarter of 2023. Year-to-date adjusted EBITDA reached $50.4 million, or 20.4% of sales.
Net cash generated by operating activities totaled $11.9 million in the third quarter, which the Company used to fund capital expenditures and reduce its net debt, which declined by $9.0 million sequentially and by $20.3 from the end of the 2023 third quarter.
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.
