Loading...
•
Sep 30, 2020
Universal Stainless Q3 2020 Earnings Report
Reported a net loss for Q3 2020, impacted by decreased sales and operating activity due to COVID-19, but focused on working capital reduction and saw a shift in sales mix to premium alloys.
Key Takeaways
Universal Stainless reported a net loss of $7.0 million, or $0.79 per diluted share, for the third quarter of 2020. Sales totaled $37.4 million, a decrease of 33.8% compared to the third quarter of 2019. The company focused on working capital reduction, resulting in positive cash flow and reduced debt levels.
Q3 2020 sales totaled $37.4 million, with premium alloy sales up 13.9% from Q3 2019.
Net loss for Q3 2020 was $7.0 million, or $0.79 per diluted share.
EBITDA was a loss of $3.6 million in Q3 2020, while adjusted EBITDA totaled $0.6 million.
Managed working capital declined by $16.8 million, and total debt decreased by $11.9 million from Q2 2020.
Universal Stainless
Universal Stainless
Universal Stainless Revenue by Segment
Revenue by Segment
Service centers Revenue
CapyFin.comOriginal equipment manufacturers Revenue
CapyFin.comRerollers Revenue
CapyFin.comForgers Revenue
CapyFin.comConversion services and other sales Revenue
CapyFin.com Forward Guidance
Looking towards the balance of the year, the company will continue to execute its strategy to pursue market opportunities while adapting operations to current activity levels and maintaining focus on inventory and debt reduction. They look forward to an improved 2021.
Positive Outlook
- Pursuing market opportunities
- Adapting operations to current activity levels
- Maintaining focus on inventory reduction
- Maintaining focus on debt reduction
- Looking forward to an improved 2021
Challenges Ahead
- COVID-19 continues to impact demand, especially in the aerospace and oil & gas end markets.
- Third quarter margins were negatively impacted by lower activity levels
- Third quarter margins included fixed cost absorption direct charges in the quarter
- Uncertainty over the duration and severity of the economic and operational impacts of COVID-19
- The Company expects the effects of the pandemic and the related responses to continue to negatively impact its results of operations, cash flows and financial position
Revenue & Expenses
Visualization of income flow from segment revenue to net income