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Sep 30, 2021
Universal Stainless Q3 2021 Earnings Report
Universal Stainless reported third quarter results with increased backlog and improved gross margin.
Key Takeaways
Universal Stainless & Alloy Products reported Q3 2021 net sales of $37.2 million. The company's net income was $7.9 million, or $0.87 per diluted share, which includes a $10 million gain on PPP loan forgiveness. The backlog increased 26.5% to $125.1 million.
Quarter-end Backlog increases 26.5% to $125.1 million versus $98.9 million at end of Q2 2021
Q3 2021 Sales are $37.2 million; Premium alloy sales are 16.0% of sales
Q3 2021 Gross margin improves to 6.2% of sales from 5.6% in Q2 2021
Q3 2021 Net income of $7.9 million, or $0.87 per diluted share, includes $10 million gain on PPP loan forgiveness.
Universal Stainless
Universal Stainless
Universal Stainless Revenue by Segment
Universal Stainless Revenue by Geographic Location
Revenue by Segment
Service centers Revenue
CapyFin.comOriginal equipment manufacturers Revenue
CapyFin.comRerollers Revenue
CapyFin.comForgers Revenue
CapyFin.comRevenue by Geographic Location
Aerospace Revenue
CapyFin.comPower generation Revenue
CapyFin.comHeavy equipment Revenue
CapyFin.com Forward Guidance
The company expects to make further progress in the fourth quarter and take full advantage of recovering markets, especially aerospace, as we move into 2022.
Positive Outlook
- Recovery in the aerospace market continued on pace.
- Third quarter aerospace sales increased 4.4% sequentially and represented 60% of total sales.
- Delivery of aerospace products is scheduled to begin in the fourth quarter and continue into the first half of 2022 and beyond.
- Sales to the oil & gas market also increased from the second quarter, rising 2.6%, and represented 11% of sales.
- Profitability continued to improve as measured by an expanding gross margin.
Challenges Ahead
- Like many industrial businesses, we were faced with supply chain challenges and labor shortages which moderated sales growth during the quarter.
- Growth in aerospace and oil and gas sales was offset by lower sales in the balance of our end markets versus the second quarter.
- Heavy equipment market sales were off 18% sequentially
- Sales to the power generation and general industrial markets also were lower following strong sequential improvement in the second quarter.
- Current supply chain challenges will likely persist.
Revenue & Expenses
Visualization of income flow from segment revenue to net income