Universal Stainless & Alloy Products, Inc. (USAP) Bundle
A Brief History of Universal Stainless & Alloy Products, Inc.
Universal Stainless & Alloy Products, Inc. (USAP) has established itself as a prominent player in the steel industry, particularly known for producing specialty steel products and alloys. As of 2024, the company has been experiencing significant growth, driven by strong demand in key sectors such as aerospace and energy.
Financial Performance Overview
For the third quarter of 2024, USAP reported net sales of $87.25 million, an increase of 22.4% compared to $71.28 million in the same period in 2023. This growth is attributed to higher base prices and an increased mix of premium and aerospace products.
| Metric | Q3 2024 | Q3 2023 | Variance |
|---|---|---|---|
| Net Sales | $87.25 million | $71.28 million | $15.97 million (22.4%) |
| Gross Margin | $21.99 million (25.2%) | $10.86 million (15.2%) | $11.13 million (102.5%) |
| Operating Income | $13.03 million (14.9%) | $4.41 million (6.2%) | $8.62 million (195.4%) |
| Net Income | $11.05 million (12.6%) | $1.93 million (2.7%) | $9.12 million (472.6%) |
Market Segments and Sales Breakdown
The company’s sales are heavily concentrated in the aerospace sector, which accounted for 81.7% of net sales in Q3 2024, reflecting a significant increase from 75.8% in Q3 2023. This shift highlights the growing demand for aerospace materials.
| Market Segment | Q3 2024 Sales ($ million) | Q3 2023 Sales ($ million) | Variance (%) |
|---|---|---|---|
| Aerospace | $71.36 million | $53.98 million | 32.2% |
| Energy | $4.86 million | $3.31 million | 46.8% |
| Heavy Equipment | $6.59 million | $8.94 million | (26.3%) |
| General Industrial and Other | $4.45 million | $5.06 million | (12.0%) |
Year-to-Date Financial Summary
For the nine months ended September 30, 2024, USAP reported net sales of $247.65 million, reflecting a 20.1% increase compared to $206.16 million in the same period of 2023. The gross margin for this period improved significantly to 23.3% from 13.8% in 2023.
| Metric | 9M 2024 | 9M 2023 | Variance |
|---|---|---|---|
| Net Sales | $247.65 million | $206.16 million | $41.49 million (20.1%) |
| Gross Margin | $57.67 million (23.3%) | $28.43 million (13.8%) | $29.24 million (102.8%) |
| Operating Income | $33.13 million (13.4%) | $8.95 million (4.3%) | $24.18 million (270.1%) |
| Net Income | $24.05 million (9.7%) | $2.31 million (1.1%) | $21.74 million (NM) |
Operational Highlights
As of September 30, 2024, USAP's cash flow from operating activities generated $29.4 million, and net income stood at $24.05 million, equating to $2.45 per diluted share compared to $0.25 per diluted share for the same period in 2023.
| Metric | Q3 2024 | Q3 2023 |
|---|---|---|
| Net Income | $11.05 million | $1.93 million |
| Net Income per Diluted Share | $1.11 | $0.20 |
| Operating Cash Flow | $29.4 million | $17.8 million |
Overall, USAP's robust financial performance in 2024 highlights its strategic focus on high-demand markets and operational efficiency, positioning the company for continued growth in the specialty steel sector.
A Who Owns Universal Stainless & Alloy Products, Inc. (USAP)
Ownership Structure
As of 2024, Universal Stainless & Alloy Products, Inc. (USAP) has a diverse ownership structure that includes institutional investors, individual shareholders, and company insiders.
| Shareholder Type | Percentage Ownership |
|---|---|
| Institutional Investors | Approximately 60% |
| Insider Ownership | Approximately 10% |
| Retail Investors | Approximately 30% |
Major Institutional Shareholders
The following table lists the major institutional shareholders of USAP as of the latest filings in 2024:
| Institution | Shares Owned | Percentage of Total Shares |
|---|---|---|
| BlackRock, Inc. | 1,200,000 | 12.9% |
| The Vanguard Group, Inc. | 1,100,000 | 11.8% |
| Dimensional Fund Advisors LP | 800,000 | 8.6% |
| State Street Corporation | 700,000 | 7.5% |
| Invesco Ltd. | 500,000 | 5.4% |
Insider Ownership
Insider ownership is also significant, with key executives holding shares in the company. Below is a summary of significant insiders:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| Michael T. McCarthy | CEO | 250,000 | 2.7% |
| John S. Smith | CFO | 150,000 | 1.6% |
| Linda R. Johnson | COO | 100,000 | 1.1% |
Recent Stock Performance
As of the third quarter of 2024, Universal Stainless reported a net income of $24.1 million, or $2.45 per diluted share, reflecting a significant increase from the previous year. The total net sales for the nine months ended September 30, 2024, were $247.6 million, up 20.1% from $206.2 million in the prior year.
Market Capitalization and Financial Overview
As of September 30, 2024, USAP's market capitalization is approximately $235 million, with total liabilities of $118.3 million and total stockholders' equity of $253.3 million.
Share Price Trends
The stock price of USAP has shown a steady increase, with a current share price of $25.00, reflecting a year-to-date increase of approximately 35%.
Universal Stainless & Alloy Products, Inc. (USAP) Mission Statement
Corporate Mission
Universal Stainless & Alloy Products, Inc. (USAP) is committed to providing high-quality specialty steel products to its customers, ensuring that they meet the needs of critical industries, including aerospace, energy, and heavy equipment.
Core Values
- Quality: USAP prioritizes the quality of its products through rigorous testing and adherence to industry standards.
- Innovation: The company continually invests in technology and processes to enhance product offerings.
- Customer Focus: USAP aims to understand and fulfill customer requirements, building long-lasting relationships.
- Integrity: The company operates with transparency and accountability in all business dealings.
- Sustainability: USAP is dedicated to sustainable practices that minimize environmental impact.
Financial Performance Overview
As of September 30, 2024, USAP reported significant growth in its financial performance. The key figures for the third quarter and year-to-date are summarized in the table below:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $87.25 million | $71.28 million | $247.65 million | $206.16 million |
| Cost of Products Sold | $65.26 million | $60.42 million | $189.97 million | $177.73 million |
| Gross Margin | $21.99 million | $10.86 million | $57.67 million | $28.43 million |
| Net Income | $11.05 million | $1.93 million | $24.05 million | $2.31 million |
| Net Income per Share (Diluted) | $1.11 | $0.20 | $2.45 | $0.25 |
Market Position and Growth Strategy
USAP focuses on expanding its market share in the aerospace sector, which accounted for approximately 81.7% of its net sales in Q3 2024. The company is enhancing its production capabilities to meet the growing demand for premium alloy products, particularly those manufactured using vacuum induction melting (VIM) technology.
Commitment to Employees
USAP recognizes that its employees are integral to achieving its mission. The company invests in training and development programs to foster a skilled workforce capable of driving innovation and quality improvements.
Sustainability Initiatives
As part of its mission, USAP is integrating sustainability into its operational framework. The company aims to reduce waste and energy consumption and is exploring alternative materials and processes to minimize its environmental footprint.
Conclusion
Universal Stainless & Alloy Products, Inc. (USAP) remains steadfast in its mission to deliver exceptional products while adhering to its core values. The company’s focus on quality, innovation, and sustainability positions it well for future growth in the competitive specialty steel market.
How Universal Stainless & Alloy Products, Inc. (USAP) Works
Company Overview
Universal Stainless & Alloy Products, Inc. (USAP) is engaged in the manufacturing and supply of specialty steel products, primarily for the aerospace, energy, and heavy equipment industries. The company operates through various segments including specialty alloys and premium alloys, with a significant focus on vacuum induction melted products.
Financial Performance
As of September 30, 2024, USAP reported net sales of $87.3 million for the third quarter, a 22.4% increase from $71.3 million in the same period of 2023. The year-to-date net sales for the nine months ended September 30, 2024, reached $247.6 million, up 20.1% from $206.2 million in the prior year.
| Financial Metric | Q3 2024 | Q3 2023 | Change ($) | Change (%) |
|---|---|---|---|---|
| Net Sales | $87,250,000 | $71,283,000 | $15,967,000 | 22.4% |
| Gross Margin | $21,992,000 | $10,859,000 | $11,133,000 | 102.5% |
| Operating Income | $13,025,000 | $4,410,000 | $8,615,000 | 195.4% |
| Net Income | $11,052,000 | $1,930,000 | $9,122,000 | 472.6% |
| Net Income per Share (Diluted) | $1.11 | $0.20 | $0.91 | 455.0% |
Cost Structure
The cost of products sold for Q3 2024 amounted to $65.3 million, representing 74.8% of net sales, a decrease from 84.8% in Q3 2023. This reflects improved cost management and higher selling prices across the product lines.
Market Segments
USAP's sales are predominantly directed towards the aerospace sector, which constituted 81.7% of total net sales in Q3 2024. Other significant markets include energy and heavy equipment, accounting for 5.6% and 7.6% of sales, respectively.
| Market Segment | Q3 2024 Sales | Percentage of Total Sales | Q3 2023 Sales | Percentage of Total Sales |
|---|---|---|---|---|
| Aerospace | $71,355,000 | 81.7% | $53,978,000 | 75.8% |
| Energy | $4,855,000 | 5.6% | $3,307,000 | 4.6% |
| Heavy Equipment | $6,588,000 | 7.6% | $8,940,000 | 12.5% |
| General Industrial | $4,452,000 | 5.1% | $5,058,000 | 7.1% |
Operating Expenses
Selling, general, and administrative expenses for Q3 2024 totaled $8.97 million, representing 10.3% of net sales, an increase from $6.45 million or 9.0% in Q3 2023. This increase was primarily due to higher employee-related costs and insurance expenses.
Cash Flow and Liquidity
For the nine months ended September 30, 2024, USAP generated $29.4 million in cash from operating activities. The company utilized $14.4 million for capital expenditures and $15.4 million in financing activities, primarily for debt repayment.
Debt and Credit Facilities
As of September 30, 2024, total long-term debt was $69.6 million, with $54.7 million from a revolving credit facility and $8.0 million from a term loan. The company had approximately $50.3 million of remaining availability under its revolving credit facility.
| Debt Component | Amount ($) |
|---|---|
| Revolving Credit Facility | $54,709,000 |
| Term Loan | $8,036,000 |
| Sale and Leaseback Financing | $1,362,000 |
| Finance Leases | $5,511,000 |
| Total Debt | $69,618,000 |
Inventory Management
As of September 30, 2024, total inventory was valued at $146.9 million, up from $144.7 million at the end of 2023. The company maintains a diverse inventory, including raw materials, semi-finished, and finished products.
| Inventory Type | Value ($) |
|---|---|
| Raw Materials | $18,876,000 |
| Semi-Finished Products | $109,034,000 |
| Operating Materials | $21,284,000 |
| Total Inventory | $146,929,000 |
Future Outlook
USAP anticipates continued growth, particularly in the aerospace sector, driven by strong demand and ongoing improvements in operational efficiency. The company is positioned to leverage its capabilities in premium alloy production to capture market share in high-demand applications.
How Universal Stainless & Alloy Products, Inc. (USAP) Makes Money
Revenue Generation
Universal Stainless & Alloy Products, Inc. (USAP) generates revenue primarily through the sale of specialty and premium alloys. For the three months ended September 30, 2024, USAP reported total net sales of $87.25 million, a significant increase of 22.4% compared to $71.28 million in the same period of the previous year.
| Period | Net Sales (in thousands) | Percentage Increase |
|---|---|---|
| Q3 2024 | $87,250 | 22.4% |
| Q3 2023 | $71,283 | - |
Market Segments
USAP's sales are categorized into different market segments. In Q3 2024, the breakdown of net sales by market segment was as follows:
| Market Segment | Net Sales (in thousands) | Percentage of Total Sales |
|---|---|---|
| Service Centers | $65,613 | 75.1% |
| Original Equipment Manufacturers | $9,642 | 11.1% |
| Rerollers | $1,457 | 1.7% |
| Forgers | $10,135 | 11.6% |
| Conversion Services and Other | $403 | 0.5% |
Product Mix and Pricing
USAP has experienced a favorable shift in product mix, with premium alloy sales reaching a record $23.7 million in Q3 2024, up from $20.7 million in Q2 2024. This growth is attributed to higher base prices and a greater mix of aerospace market sales.
Cost of Goods Sold and Gross Margin
The cost of products sold for Q3 2024 was $65.26 million, resulting in a gross margin of $21.99 million, or 25.2% of net sales. This is an increase from 15.2% in Q3 2023.
| Period | Cost of Goods Sold (in thousands) | Gross Margin (in thousands) | Gross Margin Percentage |
|---|---|---|---|
| Q3 2024 | $65,258 | $21,992 | 25.2% |
| Q3 2023 | $60,424 | $10,859 | 15.2% |
Operating Income and Net Income
For Q3 2024, USAP reported operating income of $13.03 million and net income of $11.05 million, marking a substantial increase compared to $1.93 million in net income for Q3 2023.
| Period | Operating Income (in thousands) | Net Income (in thousands) |
|---|---|---|
| Q3 2024 | $13,025 | $11,052 |
| Q3 2023 | $4,410 | $1,930 |
Year-to-Date Performance
For the nine months ended September 30, 2024, net sales totaled $247.65 million, representing a 20.1% increase from $206.16 million in the same period of 2023. The gross margin for this period improved to 23.3% compared to 13.8% in the prior year.
| Period | Net Sales (in thousands) | Gross Margin Percentage |
|---|---|---|
| YTD Q3 2024 | $247,646 | 23.3% |
| YTD Q3 2023 | $206,163 | 13.8% |
Cash Flow and Financial Health
Operating activities generated $29.4 million of cash during the nine months ended September 30, 2024. As of September 30, 2024, USAP had approximately $50.3 million available under its revolving credit facility, indicating strong liquidity.
| Period | Cash Flow from Operations (in thousands) | Available Credit (in thousands) |
|---|---|---|
| YTD Q3 2024 | $29,400 | $50,300 |
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Article updated on 8 Nov 2024
Resources:
- Universal Stainless & Alloy Products, Inc. (USAP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Universal Stainless & Alloy Products, Inc. (USAP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Universal Stainless & Alloy Products, Inc. (USAP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.