-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, TfYT4d2gzbNc/CYAAo0M7XMSuFjykyAzD+sYAqS311xsi8JJmLLRm0KKkAqS08NH +CMuJHSayEVHDHOvkOZtPQ== 0000898431-04-000053.txt : 20040421 0000898431-04-000053.hdr.sgml : 20040421 20040421120426 ACCESSION NUMBER: 0000898431-04-000053 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 1 CONFORMED PERIOD OF REPORT: 20040421 ITEM INFORMATION: FILED AS OF DATE: 20040421 FILER: COMPANY DATA: COMPANY CONFORMED NAME: UNIVERSAL STAINLESS & ALLOY PRODUCTS INC CENTRAL INDEX KEY: 0000931584 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 251724540 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-25032 FILM NUMBER: 04744644 BUSINESS ADDRESS: STREET 1: 600 MAYER ST CITY: BRIDGEVILLE STATE: PA ZIP: 15017 BUSINESS PHONE: 4122577600 MAIL ADDRESS: STREET 1: 600 MAYER ST CITY: BRIDGEVILLE STATE: PA ZIP: 15017 8-K 1 form8k.txt FORM 8-K SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ---------------- FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): April 21, 2004 Universal Stainless & Alloy Products, Inc. ------------------------------------------------------ (Exact name of registrant as specified in its charter) Delaware 000-25032 25-1724540 ---------------------------- -------------- ------------------- (State or other jurisdiction (Commission (IRS Employer of incorporation) File Number) Identification No.) 600 Mayer Street, Bridgeville, Pennsylvania 15017 --------------------------------------------------------- ------------- (Address of principal executive offices) (Zip code) Registrant's telephone number, including area code: (412) 257-7600 Item 12. Results of Operations and Financial Condition On April 21, 2004, Universal Stainless and Alloy Products, Inc. issued a press release regarding its earnings for the first quarter ended March 31, 2004. A copy of the press release is attached hereto. The information in this Current Report on Form 8-K, including the attached press release, shall not be deemed "filed" for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, except as shall be expressly set forth by specific reference in such a filing. SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. By: /s/ Richard M. Ubinger ------------------------------------- Vice President of Finance, Chief Financial Officer and Treasurer Dated: April 21, 2004 [GRAPHIC OMITTED][GRAPHIC OMITTED] Universal Stainless & Alloy Products, Inc. 600 Mayer Street o Bridgeville, Pennsylvania 15017 CONTACTS: Richard M. Ubinger Vice President of Finance, Chief Financial Officer and Treasurer (412) 257-7606 FOR IMMEDIATE RELEASE Comm-Partners LLC June Filingeri (203) 972-0186 UNIVERSAL STAINLESS REPORTS EPS OF $0.04 FOR 2004 FIRST QUARTER - Dunkirk turns profitable and Company reports improved business outlook - BRIDGEVILLE, PA, April 21, 2004 -- Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) today reported first quarter 2004 sales of $21.3 million and net income of $227,000, or $0.04 per diluted share. Revenues for the current quarter are at the highest level since 2002. The 2004 first quarter results represent a 45% increase over first quarter 2003 sales of $14.7 million and a strong turnaround from the net loss of $584,000, or $0.09 per diluted share, reported in the year ago period. Commenting on the results, President and CEO Mac McAninch stated: "Our first quarter results clearly indicate that we are on the road to recovery. This was our strongest quarter in the last six, and we returned to profitability company-wide. Most importantly, we are pleased to report that Dunkirk has broken through the profitability barrier." Mr. McAninch continued: "Our total sales to forgers, OEMs and service centers increased 132%, 84% and 43%, respectively, over the first quarter of 2003, and 41%, 51% and 45% over the previous quarter. In fact, we saw strong growth in nearly every customer category compared to those prior periods. The significant growth in the 2004 first quarter was mainly driven by strong shipments of aerospace, power generation and tool steel products." Mr. McAninch concluded: "We are entering the second quarter with a large backlog, driven by the growing momentum of economic recovery in the U.S. This momentum, combined with raw material surcharges and our recent price increases, has enhanced our ability to offer a wider range of cost-competitive products at Dunkirk Specialty Steel and will allow us to achieve further profitable growth company-wide in coming quarters." USAP REPORTS PROFITABLE 2004 FIRST QUARTER - Page 2 - Segment Review - -------------- In the first quarter of 2004, the Universal Stainless & Alloy Products segment had sales of $18.8 million and operating income of $401,000. This compares with sales of $12.4 million and an operating loss of $774,000 reported in the first quarter of 2003. The improvement reflected substantial increases in sales to forgers, service centers, OEMs and of reroll product to Dunkirk both sequentially and year over year. The Dunkirk Specialty Steel segment reported record sales of $6.7 million and operating income of $34,000. This compares with sales of $4.8 million and an operating loss of $599,000 in the same period of 2003. Dunkirk's turnaround reflected an increase in profitable sales to wire redrawers, service centers and OEMs. Business Outlook - ---------------- The following statements are based on the Company's current expectations. These statements are forward-looking, and actual results may differ materially. The Company estimates that second quarter 2004 sales will range from $25 to $29 million and that diluted EPS will range from $0.15 to $0.20. In the second quarter of 2003, sales were $16.8 million and the Company incurred a net loss per diluted share of $0.07. The following factors were considered in developing these estimates: o The Company's total backlog at March 31, 2004 approximated $37 million compared to $21 million at December 31, 2003, reflecting strength in all of the Company's niche markets. o The second quarter results will benefit from enhancements to the raw material surcharge mechanism and other price increases implemented at various times during the 2004 first quarter. o Sales from the Dunkirk Specialty Steel segment are expected to approximate $8 million. This sales level will allow further reductions in the manufacturing cost of products sold. Webcast - ------- A simultaneous Webcast of the Company's conference call discussing the 2004 first quarter and the second quarter 2004 outlook, scheduled at 10:00 a.m. (Eastern) today, will be available on the Company's website at www.univstainless.com, and thereafter archived on the website. A telephone replay of the conference call will be available beginning at 12:00 noon (Eastern) today, continuing through April 28th. It can be accessed by dialing 706-645-9291, passcode 6459231. This is a toll call. USAP REPORTS PROFITABLE 2004 FIRST QUARTER - Page 3 - About Universal Stainless & Alloy Products, Inc. - ------------------------------------------------ Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, Pa., manufactures and markets a broad line of semi-finished and finished specialty steels, including stainless steel, tool steel and certain other alloyed steels. The Company's products are sold to original equipment manufacturers, service centers, forgers, rerollers and wire redrawers. 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 limited operating history of Dunkirk Specialty Steel LLC, 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 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 matters. 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. - FINANCIAL TABLES FOLLOW - UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. FINANCIAL HIGHLIGHTS (Dollars in thousands, except per share information) (Unaudited) CONSOLIDATED STATEMENT OF OPERATIONS For the Quarter Ended March 31, 2004 2003 ---- ---- Net Sales Stainless steel $ 16,168 $ 11,196 Tool steel 3,165 1,900 High-strength low alloy steel 861 671 High-temperature alloy steel 710 517 Conversion services 332 333 Other 71 83 --------- -------- Total net sales 21,307 14,700 Cost of products sold 19,344 14,680 Selling and administrative expenses 1,528 1,393 --------- -------- Operating income (loss) 435 (1,373) Interest expense (88) (95) Other income 8 27 --------- -------- Income (loss) before taxes 355 (1,441) Income tax provision (benefit) 128 (858) --------- --------- Net income (loss) $ 227 $ (583) ========= ========= Earnings (loss) per share - Basic $ 0.04 $ (0.09) ========= ========= Earnings (loss) per share - Diluted $ 0.04 $ (0.09) ========= ========= Weighted average shares of Common Stock outstanding Basic 6,296,053 6,284,638 Diluted 6,336,034 6,284,638 - -------------------------------------------------------------------------------- MARKET SEGMENT INFORMATION For the Quarter Ended March 31, 2004 2003 ---- ---- Net Sales Service centers $ 9,906 $ 6,950 Rerollers 4,070 3,799 Forgers 3,816 1,647 Original equipment manufacturers 1,934 1,049 Wire redrawers 1,196 880 Conversion services 332 333 Other 53 42 --------- ---------- Total net sales $ 21,307 $ 14,700 ========= ========= Tons shipped 9,087 7,413 ========= ========= BUSINESS SEGMENT RESULTS Universal Stainless & Alloy Products Segment For the Quarter Ended March 31, 2004 2003 ---- ---- Net Sales Stainless steel $ 10,720 $ 7,070 Tool steel 3,079 1,766 High-strength low alloy steel 413 407 High-temperature alloy steel 550 478 Conversion services 249 310 Other 46 75 --------- --------- 15,057 10,106 Intersegment 3,788 2,295 --------- --------- Total net sales 18,845 12,401 Material cost of sales 7,602 4,396 Operation cost of sales 9,811 7,859 Selling and administrative expenses 1,031 920 --------- --------- Operating income (loss) $ 401 $ (774) ======== ========= Dunkirk Specialty Steel Segment For the Quarter Ended March 31, 2004 2003 ---- ---- Net Sales Stainless steel $ 5,448 $ 4,126 Tool steel 86 134 High-strength low alloy steel 448 264 High-temperature alloy steel 160 39 Conversion services 83 23 Other 25 8 --------- ------- 6,250 4,594 Intersegment 495 190 --------- ------- Total net sales 6,745 4,784 Material cost of sales 3,477 2,612 Operation cost of sales 2,737 2,298 Selling and administrative expenses 497 473 --------- ------- Operating income (loss) $ 34 $ (599) ========= ======= CONSOLIDATED BALANCE SHEET (Dollars in thousands) March 31, December 31, 2004 2003 ---- ---- Assets Cash $ 512 $ 4,735 Accounts receivable, net 15,225 12,690 Inventory 28,560 22,281 Deferred taxes 1,222 1,222 Other current assets 3,006 3,063 ----------- ---------- Total current assets 48,525 43,991 Property, plant & equipment, net 39,566 40,176 Other assets 747 758 ----------- ---------- Total assets $ 88,838 $ 84,925 =========== ========== Liabilities and Stockholders' Equity Accounts payable $ 9,450 $ 6,792 Bank overdrafts 541 813 Accrued employment costs 1,536 833 Current portion of long-term debt 1,931 1,944 Other current liabilities 556 195 ------------ ---------- Total current liabilities 14,014 10,577 Bank revolver 668 - Long-term debt 5,114 5,599 Deferred taxes 9,334 9,313 ----------- ---------- Total liabilities 29,130 25,489 Stockholders' equity 59,708 59,436 ----------- ---------- Total liabilities and stockholders' equity $ 88,838 $ 84,925 =========== ========== - -------------------------------------------------------------------------------- CONSOLIDATED STATEMENT OF CASH FLOW DATA For the Quarter Ended March 31, 2004 2003 ---- ---- Cash flow from (due to) operating activities $ (3,989) $ 2,962 Cash flow due to investing activities (174) (79) Cash flow due to financing activities (60) (156) ----------- ----------- Net cash flow $ (4,223) $ 3,039 =========== =========== -----END PRIVACY-ENHANCED MESSAGE-----