Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 01, 2023 | Jun. 30, 2022 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. | ||
Entity Central Index Key | 0000931584 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Interactive Data Current | Yes | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Public Float | $ 63,226,000 | ||
ICFR Auditor Attestation Flag | true | ||
Entity Common Stock, Shares Outstanding | 9,049,748 | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity File Number | 001-39467 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 25-1724540 | ||
Entity Address, Address Line One | 600 MAYER STREET | ||
Entity Address, City or Town | BRIDGEVILLE | ||
Entity Address, State or Province | PA | ||
Entity Address, Postal Zip Code | 15017 | ||
City Area Code | 412 | ||
Local Phone Number | 257-7600 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Auditor Name | Schneider Downs & Co., Inc | ||
Auditor Location | Pittsburgh, Pennsylvania | ||
Auditor Firm ID | 358 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Part III of this Form 10-K incorporates by reference portions of the Company’s definitive Proxy Statement for the 2023 Annual Meeting of Stockholders. | ||
Common Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Common Stock, par value $0.001 per share | ||
Trading Symbol | USAP | ||
Security Exchange Name | NASDAQ | ||
Preferred Stock | |||
Document Information [Line Items] | |||
Title of 12(b) Security | Preferred Stock Purchase Rights | ||
Security Exchange Name | NASDAQ | ||
No Trading Symbol Flag | true |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Statement [Abstract] | |||
Net sales | $ 202,114 | $ 155,934 | $ 179,731 |
Cost of products sold | 187,927 | 147,963 | 182,387 |
Gross margin | 14,187 | 7,971 | (2,656) |
Selling, general and administrative expenses | 21,180 | 20,243 | 19,752 |
Operating loss | (6,993) | (12,272) | (22,408) |
Interest expense | 4,388 | 2,214 | 3,009 |
Gain on extinguishment of debt | (10,000) | ||
Other income, net | (684) | (445) | (1,123) |
Loss before income taxes | (10,697) | (4,041) | (24,294) |
Benefit from income taxes | (2,624) | (3,283) | (5,247) |
Net loss | $ (8,073) | $ (758) | $ (19,047) |
Basic loss per share | $ (0.90) | $ (0.09) | $ (2.16) |
Diluted loss per share | $ (0.90) | $ (0.09) | $ (2.16) |
Weighted average shares of common stock outstanding | |||
Basic | 8,972,468 | 8,907,908 | 8,818,974 |
Diluted | 8,972,468 | 8,907,908 | 8,818,974 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Loss - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (8,073) | $ (758) | $ (19,047) |
Other comprehensive loss, net of tax: | |||
Unrealized gain (loss) on derivatives, net of tax | 93 | 85 | (14) |
Comprehensive (loss) income | $ (7,980) | $ (673) | $ (19,061) |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 2,019 | $ 118 |
Accounts receivable (less allowance for doubtful accounts of $201) | 30,960 | 21,192 |
Inventory, net | 154,193 | 140,684 |
Other current assets | 10,392 | 8,567 |
Total current assets | 197,564 | 170,561 |
Property, plant and equipment, net | 163,490 | 159,162 |
Deferred income tax assets | 143 | |
Other long-term assets | 2,137 | 909 |
Total assets | 363,334 | 330,632 |
Current liabilities: | ||
Accounts payable | 38,179 | 24,000 |
Accrued employment costs | 2,790 | 4,303 |
Current portion of long-term debt | 3,419 | 2,392 |
Other current liabilities | 1,112 | 943 |
Total current liabilities | 45,500 | 31,638 |
Long-term debt | 95,015 | 66,852 |
Deferred income tax liabilities | 2,461 | |
Other long-term liabilities | 3,066 | 3,360 |
Total liabilities | 143,581 | 104,311 |
Commitments and contingencies (Note 14) | ||
Stockholders’ equity: | ||
Senior preferred stock, par value $0.001 per share; 1,980,000 shares authorized; zero shares issued and outstanding | ||
Common stock, par value $0.001 per share; 20,000,000 shares authorized; 9,049,748 and 8,938,091 shares issued, respectively | 9 | 9 |
Additional paid-in capital | 97,002 | 95,590 |
Accumulated other comprehensive income | 133 | 40 |
Retained earnings | 122,609 | 130,682 |
Total stockholders’ equity | 219,753 | 226,321 |
Total liabilities and stockholders’ equity | $ 363,334 | $ 330,632 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 201 | $ 201 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,980,000 | 1,980,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 9,049,748 | 8,938,091 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Operating Activities: | |||
Net loss | $ (8,073) | $ (758) | $ (19,047) |
Adjustments for non-cash items: | |||
Depreciation and amortization | 19,378 | 19,300 | 19,449 |
Deferred income tax | (2,695) | (3,288) | (5,231) |
Gain on extinguishment of debt | (10,000) | ||
Share-based compensation expense | 1,289 | 1,121 | 1,455 |
Changes in assets and liabilities: | |||
Accounts receivable, net | (9,768) | (3,091) | 17,494 |
Inventory, net | (15,078) | (30,986) | 34,326 |
Accounts payable | 10,507 | 10,986 | (25,282) |
Accrued employment costs | (1,513) | 2,477 | (1,983) |
Income taxes | 3 | (3) | 243 |
Other, net | (2,986) | (3,727) | 2,387 |
Net cash (used in) provided by operating activities | (8,936) | (17,969) | 23,811 |
Investing Activities: | |||
Capital expenditures | (12,096) | (11,105) | (9,157) |
Net cash used in investing activity | (12,096) | (11,105) | (9,157) |
Financing Activities: | |||
Borrowings under revolving credit facility | 147,921 | 134,120 | 115,876 |
Payments on revolving credit facility | (124,373) | (96,602) | (136,877) |
Proceeds from term loan facility | 8,571 | ||
Proceeds from other financing transactions, net | 1,804 | ||
Proceeds from Paycheck Protection Program Note | 10,000 | ||
Payments on term loan facility, finance leases, and notes | (2,412) | (16,715) | (3,809) |
Payments of financing costs | (130) | (539) | |
Issuance of common stock under share-based plans | 123 | 193 | 150 |
Net cash provided by (used in) financing activities | 22,933 | 29,028 | (14,660) |
Net increase (decrease) in cash | 1,901 | (46) | (6) |
Cash at beginning of period | 118 | 164 | 170 |
Cash at end of period | 2,019 | 118 | 164 |
Supplemental Non-Cash Financing Activity: | |||
Financing lease liability from remelt expansion (Note 6) | 5,196 | ||
Supplemental Disclosure of Cash Flow Information: | |||
Interest paid | 3,985 | 1,980 | 2,885 |
Income taxes paid (refunded), net | $ 2 | $ 7 | $ (213) |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Beginning Balance at Dec. 31, 2019 | $ 9 | $ 94,982 | $ 150,487 | $ (31) | $ (2,311) | |
Beginning Balance (shares) at Dec. 31, 2019 | 8,799,436 | 294,279 | ||||
Common stock issuance under Employee Stock Purchase Plan | 150 | |||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 21,940 | |||||
Share-based compensation | 1,455 | |||||
Share-based compensation (shares) | 62,412 | |||||
Net gain (loss) on derivative instruments | (14) | |||||
Treasury Stock retirement | (2,311) | $ 2,311 | ||||
Treasury Stock shares retired | (294,279) | |||||
Net loss | $ (19,047) | (19,047) | ||||
Ending Balance at Dec. 31, 2020 | $ 9 | 94,276 | 131,440 | (45) | ||
Ending Balance (shares) at Dec. 31, 2020 | 8,883,788 | |||||
Common stock issuance under Employee Stock Purchase Plan | 146 | |||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 22,382 | |||||
Other Share-based plans | 47 | |||||
Other share-based plans (Shares) | 5,272 | |||||
Share-based compensation | 1,121 | |||||
Share-based compensation (shares) | 26,649 | |||||
Net gain (loss) on derivative instruments | 85 | |||||
Net loss | (758) | (758) | ||||
Ending Balance at Dec. 31, 2021 | 226,321 | $ 9 | 95,590 | 130,682 | 40 | |
Ending Balance (shares) at Dec. 31, 2021 | 8,938,091 | |||||
Common stock issuance under Employee Stock Purchase Plan | 123 | |||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 19,915 | |||||
Other Share-based plans | 101 | |||||
Other share-based plans (Shares) | 11,452 | |||||
Share-based compensation | 1,188 | |||||
Share-based compensation (shares) | 80,290 | |||||
Net gain (loss) on derivative instruments | 93 | |||||
Net loss | (8,073) | (8,073) | ||||
Ending Balance at Dec. 31, 2022 | $ 219,753 | $ 9 | $ 97,002 | $ 122,609 | $ 133 | |
Ending Balance (shares) at Dec. 31, 2022 | 9,049,748 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1: Significant Accounting Policies Basis of Consolidation . The consolidated financial statements include the accounts of Universal Stainless & Alloy Products, Inc. and its wholly-owned subsidiaries and variable interest entities (collectively, “we,” “us,” “our,” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. We have no interests in any unconsolidated entity. Use of Estimates . The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The estimates and assumptions used in these consolidated financial statements are based on known information available as of the balance sheet date. Actual results could differ from those estimates. Concentration of Credit Risk . We limit our credit risk on accounts receivable by performing ongoing credit evaluations and, when necessary, require letters of credit, guarantees or cash co llateral. Our largest customer accounted for approximately 21 %, 19 % and 23 % of our net sales for the years ended December 31, 2022, 2021 and 2020, respectively, and 12 %, 7 % and 8 % of our total accounts receivable balance at December 31, 2022, 2021 and 2020, respectively. Our second largest customer in each year accounted for approximately 18 %, 10 % and less than 10 % of our net sales for the years ended December 31, 2022, 2021 and 2020, respectively, and 25 %, 6 %, and less than 5 % of our total accounts receivable balance at December 31, 2022, 2021 and 2020, respectively. The higher percentage of accounts receivable made up by our second largest customer in 2022 is primarily due to timing, as sales to that customer during the year were highest in the fourth quarter. Accounts Receivable and Allowance for Doubtful Accounts . Accounts receivable are presented net of the allowance for doubtful accounts on our consolidated balance sheets. We market our products to a diverse customer base, primarily throughout the United States. International sales approximated 5 % of total net sales in 2022 and 7 % in both 2021 and 2020. The allowance for doubtful accounts includes specific reserves for the value of outstanding invoices issued to customers that are deemed potentially not collectible. Receivables are charged-off to the allowance when they are deemed to be uncollectible. There was no bad debt expense recorded for the years ended December 31, 2022, 2021 and 2020 . Inventories . Inventories are stated at the lower of cost or net realizable value with cost principally determined by the weighted average cost method. Such costs include the acquisition cost for raw materials and operating supplies, direct labor and applied manufacturing overhead within the guidelines of normal plant capacity. We reserve for slow-moving inventory and inventory that is being evaluated under our quality control process. The reserves are based upon management’s expected method of disposition. The net change in inventory reserves for the year ended December 31, 2022 was a decrease of $ 1.1 million. The net change for the year ended December 31, 2021 was an increase of $ 0.3 million, and the net change for the year ended December 31, 2020 was an increase of $ 1.1 million. Included in inventory are operating materials consisting of forge dies and production molds and rolls that are consumed over their useful lives. During the years ended December 31, 2022, 2021 and 2020 , we amortized these operating materials in the amount of $ 1.6 million, $ 1.7 million and $ 1.7 million, respectively. This expense is recorded as a component of cost of products sold on the consolidated statements of operations and included as a part of our total depreciation and amortization on the consolidated statements of cash flows. We experienced low activity levels at our production facilities during 2021 and 2020 caused primarily by the impacts of the COVID-19 pandemic. As a result, $ 6.1 million of fixed overhead costs were not absorbed into inventory and charged directly to expense during 2021, and $ 8.3 million of fixed overhead costs were not absorbed into inventory charged directly to expense during 2020. Government Assistance . We received an award under the Aviation Manufacturing Jobs Program during 2022 totaling approximately $ 3.6 million . The entire amount of the award was earned during 2022 and recorded as a reduction to costs of goods sold in the consolidated statement of operations. Approximately $ 1.8 million of cash was received during 2022 and the remaining cash is expected in 2023. Accordingly, a receivable of $ 1.8 million was recorded within Other current assets on the consolidated balance sheet. Property, Plant and Equipment . Property, plant and equipment is recorded at cost or its fair value at acquisition date. No depreciation is recognized on assets until they are placed in service. Assets which have been retired or disposed of are removed from cost and accumulated depreciation accounts, with the gain or loss generally reflected in cost of goods sold on the consolidated statements of operations. Major equipment maintenance costs are capitalized as incurred and included in other current assets and other long-term assets, as appropriate. These costs are amortized to cost of products sold within a 12 to 36 month period. Other maintenance costs are expensed as incurred. Costs of improvements and renewals are capitalized. Our maintenance expense for the years ended December 31, 2022, 2021 and 2020 was $ 21.6 million, $ 16.7 million and $ 15.9 million, respectively, which is included as a component of cost of products sold. Depreciation is computed using th e straight-line method based on the estimated useful lives of the related assets. The estimated useful lives of buildings and land improvements are between 10 and 40 years , and the estimated useful lives of machinery and equipment are between five and 39 years. Our total depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $ 17.4 million, $ 17.3 million and $ 17.5 million, respectively, of which $ 16.8 million, $ 16.8 million and $ 17.0 million, respectively, was included as a component of cost of products sold while the remainder was included in selling, general and administrative expense. Long-Lived Asset Impairment . Long-lived assets, including property, plant and equipment and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in relation to the operating performance and future undiscounted cash flows of the underlying assets. Adjustments are made if the sum of expected future cash flows is less than the book value. Based on management’s assessment of the carrying values of long-lived assets, no impairment reserve was necessary as of December 31, 2022, 2021 and 2020 . Deferred Financing Costs . Deferred financing costs are amortized up to the maturity date of the related financial instrument using the straight-line method, which approximates the effective interest method. Deferred financing cost amortization for each of the years ended December 31, 2022, 2021 and 2020 was $ 0.2 million and is included as a component of interest expense and other financing costs on the consolidated statements of operations and included as part of total depreciation and amortization on the consolidated statements of cash flows. At December 31, 2022 and 2021 , we had $ 1.4 million and $ 1.5 million, respectively, of unamortized deferred financing costs included on our consolidated balance sheets as a reduction of debt. Revenue Recognition . The Company’s revenues are primarily composed of sales of products. Revenue from the sale of products is recognized when the Company satisfies its performance obligations under a contract by transferring control of the promised product to its customer (“point-in-time”). Sales of certain specified product grades and shapes, and sales from conversion services, are recognized over-time. These sales qualify for over-time revenue recognition as the Company does not produce an asset with alternative use when completing its performance obligations with regard to these items, and maintains an enforceable right to payment in the event of contract termination. Invoiced shipping and handling costs are also accounted for as revenue. Customer claims, which are not material, are accounted for primarily as a reduction to gross sales after the matter has been researched and an acceptable resolution has been reached. Income Taxes . Deferred income taxes are provided for net operating losses, unused tax credits earned and the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. We use the liability method to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Valuation allowances are provided for a deferred tax asset when it is more likely than not that the asset will not be realized. Income tax penalties and interest are included in the provision for income tax expense. We evaluate the tax positions taken or expected to be taken in our tax returns. A tax position should only be recognized in the financial statements if we determine that it is more-likely-than-not that the tax position will be sustained upon examination by the tax authorities, based upon the technical merits of the position. For those tax positions that should be recognized, the measurement of a tax position is determined as being the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. We believe there are no material uncertain tax positions at December 31, 2022, 2021 and 2020. We recognize excess tax benefits as a result of the exercise of employee stock options within the consolidated statements of operations. Share-based Compensation Plans . We recognize compensation expense based on the grant-date fair value of the awards. The fair value of the stock option grants is estimated on the date of grant using the Black-Scholes option-pricing model, and is recognized ratably over the service/vesting period of the award. The fair value of time-based restricted stock grants and restricted stock units is calculated using the market value of the stock on the date of issuance, and is recognized ratably over the service/vesting period of the award. Net Loss per Common Share . Net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding plus all dilutive potential common shares outstanding during the period. Treasury Stock . We account for treasury stock under the cost method and include such shares as a reduction of total stockholders’ equity. During 2020, we retired all treasury stock previously acquired. Financial Instruments . Financial instruments held by us include cash, accounts receivable, and accounts payable and current and long-term debt. The carrying value of cash, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. Refer to Note 8 for fair value disclosures of our financial instruments. Segment Reporting . Our operating facilities are integrated, and therefore our chief operating decision maker (“CODM”) views the Company as one business unit. Our CODM sets performance goals, assesses performance and makes decisions about resource allocations on a consolidated basis. As a result of these factors, as well as the nature of the financial information available which is reviewed by our CODM, we maintain one reportable segment. Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments in this ASU also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. An entity is permitted to early adopt the guidance, and we early adopted ASU 2019-12 as of January 1, 2020. The adoption did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses applicable to trade receivables, other receivables, contract assets and most debt instruments. The model does not have a minimum threshold for recognition of impairment losses. The Company will adopt this guidance in 2023 and it is not expected to have a material impact to the consolidated financial statements. The Company considers the applicability and impact of all ASUs. Recently issued ASUs not listed were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Note 2: Revenue Recognition The Company’s revenues are primarily comprised of sales of products. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product. A performance obligation is a promise in a contract to transfer a distinct product to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes are excluded from revenues. Invoiced shipping and handling costs are included in revenue. The Company’s revenue is primarily from products transferred to customers at a point in time. The Company recognizes revenue at the point in time in which the customer obtains control of the product, which is generally when product title passes to the customer upon shipment. We have determined that there are certain customer agreements involving production of specified product grades and shapes that require revenue to be recognized over time, in advance of shipment, due to there being no alternative use for these grades and shapes without significant economic loss. Also, the Company maintains an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. Contract assets related to services performed, not yet billed of $ 1.6 million and $ 2.2 million are included in Accounts Receivable in the Consolidated Balance Sheets at December 31, 2022 and 2021, respectively. The Company has elected the following practical expedients allowed under ASC Topic 606: • Shipping activities are not considered to be separate performance obligations. • Performance obligations are satisfied within one year from a given reporting date, and consequently we omit disclosure of the transaction price apportioned to remaining performance obligations on open orders. The following summarizes our revenue by melt type: Twelve Months Ended December 31, 2022 2021 Net sales: Specialty alloys $ 160,352 127,885 Premium alloys (A) 39,225 26,423 Conversion services and other sales 2,537 1,626 Total net sales $ 202,114 $ 155,934 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Inventory
Inventory | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 3: Inventory The major classes of inventory are as follows: December 31, 2022 2021 (dollars in thousands) Raw materials and starting stock $ 14,890 $ 12,263 Semi-finished and finished steel products 129,534 122,396 Operating materials 13,220 10,620 Gross inventory 157,644 145,279 Inventory reserves ( 3,451 ) ( 4,595 ) Total inventory, net $ 154,193 $ 140,684 |
Property, Plant and Equipment
Property, Plant and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment | Note 4: Property, Plant and Equipment Property, plant and equipment consists of the following: December 31, 2022 2021 (dollars in thousands) Land and land improvements $ 8,090 $ 8,066 Buildings 53,334 52,866 Machinery and equipment 315,165 301,271 Construction in progress 12,602 5,138 Gross property, plant and equipment 389,191 367,341 Accumulated depreciation ( 225,701 ) ( 208,179 ) Property, plant and equipment, net $ 163,490 $ 159,162 |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 5: Long-Term Debt Long-term debt consists of the following: December 31, 2022 2021 (dollars in thousands) Term loan $ 11,786 $ 13,929 Revolving credit facility 79,545 55,997 Finance leases 6,663 783 Sale and leaseback financing liability 1,804 - 99,798 70,709 Less: current portion of long-term debt ( 3,419 ) ( 2,392 ) Less: deferred financing costs ( 1,364 ) ( 1,465 ) Long-term debt $ 95,015 $ 66,852 Credit Facility On March 17, 2021, we entered into the Second Amended and Restated Revolving Credit, Term Loan and Security Agreement (the “Credit Agreement”), with PNC Bank, National Association (“PNC Bank”), as administrative agent and co-collateral agent, Bank of America, N.A., as co-collateral agent, the Lenders (as defined in the Credit Agreement) party thereto from time to time and PNC Capital Markets LLC, as sole lead arranger and sole bookrunner. The Credit Agreement replaces our prior Credit Agreement, and provides for a senior secured revolving credit facility in an aggregate principal amount not to exceed $ 105.0 million (“Revolving Credit Facility”) and a senior secured term loan facility (“Term Loan”) in the amount $ 15.0 million (together with the Revolving Credit Facility, the “Facilities”). The Company was in compliance with all applicable covenants throughout 2022 and at December 31, 2022. The Facilities, which expire on March 17, 2026 (the “Expiration Date”), are collateralized by a first lien on substantially all of the assets of the Company and its subsidiaries, except that no real property is collateral under the Facilities other than Company’s real property in North Jackson, Ohio. Availability under the Credit Agreement is based on eligible accounts receivable and inventory. The Company must maintain undrawn availability under the Credit Agreement of at least $ 11.0 million. That requirement can be overcome if the Company maintains a fixed charge coverage ratio of not less than 1.10 to 1.0 measured on a rolling two-quarter basis and calculated in accordance with the terms of the Credit Agreement. The Company is required to pay a commitment fee of 0.25 % based on the daily unused portion of the Revolving Credit Facility. With respect to the Term Loan, the Company must pay quarterly installments of the principal of approximately $ 0.5 million, plus accrued and unpaid interest, on the first day of each fiscal quarter beginning on June 30, 2021. To the extent not previously paid, the Term Loan will become due and payable in full on the Expiration Date. Amounts outstanding under the Facilities, at the Company’s option, will bear interest at either a base rate or a LIBOR (prior to September 30, 2022) or a SOFR (after September 30, 2022) based rate, in either case calculated in accordance with the terms of the Credit Agreement. Interest under the Credit Agreement is payable monthly. We elected to use the LIBOR and SOFR based rate for the majority of the debt outstanding under the Facilities during 2022. At December 31, 2022 , the SOFR based rate was approximately 6.9 % on our Revolving Credit Facility and 7.4 % for the Term Loan. At December 31, 2022 and 2021 , we net had deferred financing costs related to the Credit Agreement of approximately $ 0.7 million and $ 0.9 million recorded to the consolidated balance sheet, respectively. We amortized $ 0.2 million of those costs during each of the years ended December 31, 2022 and 2021. The aggregate annual principal payments due under our Credit Agreement at December 31, 2022, are as follows: (dollars in thousands) 2023 $ 2,144 2024 2,144 2025 2,144 2026 84,899 $ 91,331 Paycheck Protection Program Term Note On April 16, 2020, the Company entered into a promissory note, dated April 15, 2020 , with PNC Bank, National Association, evidencing an unsecured loan with a principal amount of $ 10.0 million made to the Company pursuant to the Paycheck Protection Program (the “PPP Term Note”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Term Note is guaranteed by the United States Small Business Administration. Under the terms of the CARES Act, the Company was eligible for forgiveness for all or a portion of the PPP Term Note, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs and any payments of certain covered interest, lease and utility payments. The Company applied for forgiveness of the PPP Term Note during the third quarter of 2020. In July 2021, PNC Bank notified the Company that forgiveness of the note was granted by the United States Small Business Administration. Accordingly, the PPP Term Note was forgiven in its entirety, including all related accrued interest. In the third quarter of 2021, we recognized forgiveness of the PPP Term Note and recorded a corresponding gain on extinguishment of debt in the Consolidated Statement of Operations for the period. The PPP Term Note incurred interest at a fixed annual rate of 1.00 %, with the first six months of interest deferred. The Company did not make any principal or interest payments related to the PPP Term Note. Notes In connection with the acquisition of the North Jackson facility in 2011, we issued $ 20.0 million in Notes to the sellers of the facility as partial consideration in the transaction. On January 21, 2016, the Company entered into Amended and Restated Notes in the aggregate principal amount of $ 20.0 million (the “Notes”), each in favor of Gorbert Inc. (“Holder”). The Company’s obligations under the Notes were collateralized by a second lien on the same assets of the Company that collateralize the obligations of the Company under the Facilities. The Holder had the right to elect at any time on or prior to August 17, 2017 to convert all or any portion of the outstanding principal amount of the Notes. The Notes were originally scheduled to mature on March 17, 2019 . In 2019, the Company extended the maturity date to March 17, 2020 in accordance with the terms of the Notes. In 2020, the Company extended the maturity date to March 17, 2021 in accordance with the terms of the Notes. The Company made partial principal payments on the notes upon extension, and an aggregate principal amount of $ 15.0 million remained outstanding at the 2021 maturity date. On March 17, 2021, the Company paid the remaining principal balance and all applicable interest to settle the notes obligation. The Notes had an applicable interest at a rate of 6.0 % per year from August 17, 2017 until the time they were paid off. All accrued and unpaid interest was payable quarterly in arrears on September 18, December 18, March 18 and June 18 of each year. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | Note 6: Leases The Company periodically enters into leases in its normal course of business. At December 31, 2022 , the leases in effect were primarily related to mobile equipment and other production equipment. The term of our leases is generally 72 months or less, and the leases do not have significant restrictions, covenants, or other nonstandard terms. The Company entered into three new operating lease agreements and four new finance lease agreements during 2022 . This includes the $ 5.2 million lease component of our new VAR expansion financing arrangement, but excludes the $ 1.8 million sale and leaseback component of that agreement. The $ 1.8 million is accounted for as a loan secured by the related equipment, as it did not meet the criteria for sale accounting under Accounting Standards Codification section 842. The $ 1.8 million is excluded from the tables below, the current portion of which is approximately $ 0.2 million. The total $ 7.0 million principal amount of that financing arrangement has a term of 72 months and an implicit interest rate of approximately 11.2 %. The weighted average interest rate on all our financing leases is approximately 10.0 %. Right-of-use assets and lease liabilities are recorded at the present value of minimum lease payments. For our operating leases, the assets are included in Other long-term assets on the consolidated balance sheets and are amortized within operating income over the respective lease terms. The long-term component of the lease liability is included in Other long-term liabilities, net, and the current component is included in Other current liabilities. For our finance leases, the assets are included in Property, plant and equipment, net on the consolidated balance sheets and are depreciated over the respective lease terms which range from three to six years . The long-term component of the lease liability is included in Long-term debt and the current component is included in Current portion of long-term debt. As of December 31, 2022, future minimum lease payments applicable to operating and finance leases were as follows: Operating Leases Finance Leases 2023 $ 266 $ 1,696 2024 170 1,678 2025 36 1,566 2026 21 1,439 2027 2 1,392 2028 - 1,085 Total minimum lease payments $ 495 $ 8,856 Less amounts representing interest ( 15 ) ( 2,193 ) Present value of minimum lease payments $ 480 $ 6,663 Less current obligations ( 262 ) ( 1,045 ) Total long-term lease obligations, net $ 218 $ 5,618 Weighted-average remaining lease term 2.1 years 5.3 years Right-of-use assets recorded to the consolidated balance sheet at December 31, 2022 were $ 0.5 million for operating leases and $ 9.2 million for finance leases. For the twelve months ended December 31, 2022 , the amortization of finance lease assets was $ 0.2 million and was included in cost of products sold in the Consolidated Statements of Operations. Right-of-use assets recorded to the consolidated balance sheet at December 31, 2021 were $ 0.7 million for operating leases and $ 0.5 million for finance leases. For the twelve months ended December 31, 2021, the amortization of finance lease assets was $ 0.2 million and was included in cost of products sold in the Consolidated Statements of Operations. The Company elected the practical expedient allowed under Leases (Topic 842) to exclude leases with a term of 12 months or less from the calculation of our lease liabilities and right-of-use assets. In determining the lease liability and corresponding right-of-use asset for each lease, the Company calculated the present value of future lease payments using the interest rate implicit in the lease, when available, or the Company’s incremental borrowing rate. The incremental borrowing rate was determined with reference to the interest rate applicable under our senior secured revolving credit facility discussed in Note 5, as this facility is collateralized by a first lien on substantially all of the assets of the Company and its term is similar to the term of our leases. |
New Markets Tax Credit Financin
New Markets Tax Credit Financing Transaction | 12 Months Ended |
Dec. 31, 2022 | |
New Markets Tax Credit Financing Transaction Disclosure [Abstract] | |
New Markets Tax Credit Financing Transaction | Note 7: New Markets Tax Credit Financing Transaction On March 9, 2018, the Company entered into a New Markets Tax Credit financing program with PNC New Markets Investment Partners, LLC and Boston Community Capital, Inc. related to a new mid-size bar cell capital project at the Company’s Dunkirk, NY facility. PNC New Markets Investment Partners, LLC made a capital contribution and the Company made a loan to Dunkirk Investment Fund, LLC (“Investment Fund”) under the qualified NMTC financing program. Through this financing transaction, the Company secured low interest financing and the potential for other future benefits related to its mid-size bar cell capital project. In connection with the financing transaction, the Company loaned $ 6.7 million aggregate principal amount (“Leverage Loan”) due in March 2048 to the Investment Fund. Additionally, PNC New Markets Investment Partners, LLC contributed $ 3.5 million to the Investment Fund, and as such, PNC New Markets Investment Partners, LLC is entitled to substantially all tax and other benefits derived from the NMTC. The Investment Fund then contributed the proceeds to a community development entity (“CDE”). The CDE then loaned the funds, on similar terms, as the Leverage Loan to Dunkirk Specialty Steel, LLC, a wholly-owned subsidiary of the Company. The CDE loan proceeds are restricted for use on the mid-size bar cell capital project. The NMTC is subject to 100 percent recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to comply with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, require the Company to indemnify PNC New Markets Investment Partners, LLC for any loss or recapture of NMTCs related to the financing until the Company’s obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement. As of December 31, 2022 and 2021 , the Company recorded $ 2.8 million within Other long-term liabilities related to this transaction, which represents the funds contributed to the Investment Fund by PNC New Markets Investment Partners, LLC. This transaction also includes a put/call provision whereby the Company may be obligated or entitled to repurchase PNC New Markets Investment Partners, LLC’s interest in the Investment Fund. The Company believes that PNC New Markets Investment Partners, LLC will exercise the put option in March 2025, at the end of the recapture period, resulting in a gain of $ 2.8 million at that time. The value attributed to the put/call is negligible. Direct costs incurred in structuring this financing transaction totaled $ 0.7 million. These costs were deferred and are amortized over the term of the loans. The Company has determined that the Investment Fund and CDE are each a VIE, and that it is the primary beneficiary of each VIE. This conclusion was reached based on the following: • The ongoing activities of the VIE, collecting and remitting interest and fees, and NMTC compliance were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIE; • Contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investment Fund and CDE; • PNC New Markets Investment Partners, LLC lacks a material interest in the underlying economics of the project; and • The Company is obligated to absorb losses of the VIE. Because the Company is the primary beneficiary of each VIE, these entities have been included in the Company’s Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 8: Fair Value Measurements The fair value hierarchy has three levels based on the inputs used to determine fair value, which are as follows: Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The carrying amounts of our cash, accounts receivable and accounts payable approximated fair value at December 31, 2022 and 2021 due to their short-term nature (Level 1). The fair value of the Term Loan and Revolver at December 31, 2022 and 2021 approximated the carrying amount as the interest rate is based upon floating short-term interest rates (Level 2). |
Derivatives and Hedging
Derivatives and Hedging | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 9: Derivatives and Hedging The Company invoices certain customers in foreign currencies. In order to mitigate the risks associated with fluctuations in exchange rates with the US Dollar, the Company enters into foreign exchange forward contracts for a portion of these sales and has designated these contracts as cash flow hedges. The notional value of these contracts was $ 4.3 million at December 31, 2022 and $ 2.5 million at December 31, 2021. The Company recorded an unrealized gain in accumulated other comprehensive income of less than $ 0.1 million at December 31, 2022 and 2021 related to the contracts. Additionally, the Company entered into a forward i nterest rate swap contract during 2020 to fix the interest rate on a portion of its variable-rate debt from January 1, 2021 to June 30, 2023. The interest rate swap was designated as a cash flow hedge. The notional amount of the contract was $ 16 million at its inception and reduces throughout the term. The notional amount was $ 16 million at December 31, 2021 and $ 10 million at December 31, 2022 . The Company recorded an unrealized gain in accumulated other comprehensive income of $ 0.1 million at December 31, 2022 and of less than $ 0.1 million at December 31, 2021. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes The income tax benefit attributable to continuing operations during the years ended December 31, 2022, 2021 and 2020 is as follows: Components of the benefit from income taxes are as follows: For the years ended December 31, 2022 2021 2020 (dollars in thousands) Current provision (benefit) Federal $ ( 1 ) $ - $ ( 16 ) State 5 5 - Deferred benefit Federal ( 2,566 ) ( 3,376 ) ( 5,154 ) State ( 62 ) 88 ( 77 ) Benefit from income taxes $ ( 2,624 ) $ ( 3,283 ) $ ( 5,247 ) The income tax benefit reconciled to taxes computed at the statutory federal rate is as follows: For the years ended December 31, 2022 2021 2020 Tax benefit at statutory tax rate $ ( 2,246 ) $ ( 848 ) $ ( 5,102 ) State income taxes, net of federal tax benefit ( 53 ) ( 153 ) ( 129 ) Research and development tax credit ( 557 ) ( 814 ) ( 372 ) Valuation allowance ( 19 ) - - PPP loan forgiveness - ( 2,100 ) - Deferred tax adjustment for stock option forfeitures - 371 234 Other adjustments to deferred taxes 213 230 45 Other 38 31 77 Benefit from income taxes $ ( 2,624 ) $ ( 3,283 ) $ ( 5,247 ) We continue to record a full valuation allowance against our New York deferred tax assets due to the zero percent state income tax rate for qualified manufacturers. We continue to record a partial valuation allowance against our Pennsylvania net operating loss deferred tax asset due to annual usage limitations. We have determined that federal and other state deferred tax assets are expected to be realized and have not recorded any additional valuation allowances. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of our net deferred taxes related to continuing operations are as follows: December 31, 2022 2021 (dollars in thousands) Noncurrent deferred income taxes: Federal and state tax carryforwards $ 12,863 $ 13,358 Inventory 960 1,310 Share-based compensation 1,592 1,745 Receivables 43 51 Accrued liabilities 147 168 Other 1,930 4 Total deferred tax assets $ 17,535 $ 16,636 Deferred tax liabilities: Property, plant and equipment $ 16,852 $ 18,459 Other 540 638 Total deferred tax liabilities $ 17,392 $ 19,097 Total noncurrent deferred income taxes assets (liabilities) $ 143 $ ( 2,461 ) We file a U.S. federal income tax return and various state income tax returns. For federal income tax purposes, we had $ 25.8 million and $ 29.2 million of net operating loss carryforwards at December 31, 2022 and 2021, respectively. The net operating loss carryforwards begin to exp ire in 2035 . In addition, we have credit carryforwards associated with our research and development activities of $ 7.0 million and $ 6.4 million as of December 31, 2022 and 2021, respectively. The research and development credit carryforwards begin to expire in 2030 . We have state net operating loss carryforwards of $ 11.0 million at December 31, 2022 and $ 11.1 million at December 31, 2021, and the related valuation allowances were approximately $ 0.2 million at each date. We also have state credit carryforwards of $ 0.4 million at December 31, 2022 and December 31, 2021. The state net operating loss carryforwards begin to expire in 2031 . The state credit carryforwards begin to expire in 2027 . We are routinely under audit by federal or state authorities. Our federal tax returns are subject to examination by the IRS for tax years after 2018 . We are subject to examination by most state tax jurisdictions for tax years after 2018 . |
Net Loss Per Common Share
Net Loss Per Common Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Net Loss Per Common Share | Note 11: Net Loss Per Common Share The computation of basic and diluted net loss per common share for the years ended December 31, 2022, 2021 and 2020 is as follows: For the years ended December 31, 2022 2021 2020 (dollars in thousands, except per share amounts) Numerator: Net loss $ ( 8,073 ) $ ( 758 ) $ ( 19,047 ) Denominator: Weighted average number of shares of common stock outstanding 8,972,468 8,907,908 8,818,974 Weighted average effect of dilutive share-based compensation - - - Diluted weighted average number of shares of common stock outstanding 8,972,468 8,907,908 8,818,974 Net loss per common share: Basic earnings per share $ ( 0.90 ) $ ( 0.09 ) $ ( 2.16 ) Diluted earnings per share $ ( 0.90 ) $ ( 0.09 ) $ ( 2.16 ) There were 711,375 , 645,050 and 776,025 options to purchase shares of common stock, at an average price of $ 18.25 , $ 21.00 and $ 22.02 for the years ended December 31, 2022, 2021 and 2020, respectively, that were not included in the computation of diluted net loss per common share because their respective exercise prices were greater than the average market price of our common stock. In addition, the calculation of diluted net loss per common share for the years ended December 31, 2022 , 2021 and 2020, respectively, excluded 17,143 , 39,036 and 22,533 shares for the assumed exercise of stock options as a result of being in a net loss position. |
Share-Based Plans
Share-Based Plans | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Share-Based Plans | Note 12: Share-Based Plans At December 31, 2022, we had the following share-based compensation plans: Universal Stainless & Alloy Products, Inc. Amended and Restated 2017 Equity Incentive Plan We maintain the Universal Stainless & Alloy Products, Inc. amended and restated 2017 Equity Incentive Plan (the “2017 Plan”), which was approved by our stockholders in May 2017 and subsequently amended and restated and approved by our stockholders in May 2021 (the “Amended and Restated 2017 Plan”). The Amended and Restated 2017 Plan permits the issuance of stock options, restricted stock, restricted stock units, other share-based awards and performance awards to officers, employees, non-employee directors, and consultants and advisors to the Company. At its May 2017 inception, there were 568,357 shares authorized for issuance under the 2017 Plan. When initially adopted in May 2017, the 2017 Plan replaced the Omnibus Incentive Plan (“OIP”) which in turn replaced the 1994 Stock Incentive Plan (“SIP”). Any awards outstanding under the SIP and OIP will remain subject to and be paid under the SIP and OIP, respectively. No new awards will be granted under either the SIP or OIP. Any shares subject to outstanding awards under the OIP that cease to be subject to such issuance of stock after the adoption of the Amended and Restated 2017 Plan will increase the shares authorized under the Amended and Restated 2017 Plan. As of the adoption of the Amended and Restated 2017 Plan, any shares subject to outstanding award under the SIP that cease to be subject to such issuance of stock will increase the shares authorized under the Amended and Restated 2017 Plan. As of May 5, 2021, 400,000 additional shares were approved and authorized for issuance under the Amended and Restated 2017 Plan. As of May 4, 2022, 500,000 additional shares were approved and authorized for issuance under the Amended and Restated 2017 Plan. At December 31, 2022 , there were 676,977 shares available for grant under the Amended and Restated 2017 Plan. Omnibus Incentive Plan We maintain the OIP which was approved by our stockholders in May 2012. The OIP permitted the issuance of stock options, restricted stock, restricted stock units and other share-based awards to non-employee directors, other than those directors owning more than 5% of our outstanding common stock, consultants, officers and other key employees who were expected to contribute to our future growth and success. With the adoption of the 2017 Plan, no shares of common stock were available for grant at December 31, 2022 under the OIP. Stock Options The price for options granted under the both the 2017 Plan and OIP is equal to the fair market value of the common stock at the date of grant. Options granted to non-employee directors vest over a three-year period, and options granted to employees vest over a four-year period. All options under both the 2017 Plan and OIP will expire no later than ten years after the grant date. Forfeited options may be reissued and are included in the amount available for grants. A summary of stock option activity as of and for the year ended December 31, 2022 is presented below: Non-vested stock Stock options options outstanding outstanding Weighted- Weighted- Weighted- average average average Number grant-date Number exercise contractual of shares fair value of shares price term (years) Outstanding at December 31, 2021 237,844 $ 4.60 868,875 $ 17.65 Stock options granted 5,000 4.60 5,000 10.13 Stock options vested ( 91,160 ) 5.17 - - Stock options forfeited ( 10,475 ) 16.02 ( 58,150 ) 29.31 Outstanding at December 31, 2022 141,209 $ 4.17 815,725 $ 16.78 4.8 Exercisable at December 31, 2022 673,641 $ 18.36 4.1 Shares issued in connection with stock option exercises are issued from available authorized shares. There were no stock option exercises during 2022, 2021 or 2020. Based upon the closing stock price of $ 7.17 at December 31, 2022 , the aggregate intrinsic value of outstanding stock options was $ 0.1 million, of which less than half was related to options that were exercisable. Intrinsic value of stock options is calculated as the amount by which the market price of our common stock exceeds the exercise price of the options. The total fair value of stock options awards vested during the years ended December 31, 2022, 2021 and 2020, respectively, was approximately $ 0.2 million, $ 0.7 million and $ 0.8 million. Share-based compensation to employees and directors is recognized as compensation expense in the consolidated statements of operations based on the stock options fair value on the measurement date, which is the date of the grant. The fair value of the award is recognized as expense over the requisite service periods. The compensation expense recognized, and its related tax effects, are included in additional paid-in capital. Share-based compensation expense related to stock options totaled $ 0.5 million for the years ended December 31, 2022 and 2021. Share-based compensation expense related to stock options totaled $ 0.8 million for the year ended December 31, 2020. Share-b ased compensation expense is recognized ratably over the requisite service period for all stock option awards. Unrecognized share-based compensation expense related to non-vested stock option awards totaled $ 0.5 million at December 31, 2022 , and the weighted-average period over which this unrecognized expense was expected to be recognized was 2.1 years. The fair value of our stock options granted is estimated on the measurement date, which is the date of grant. We use the Black-Scholes option-pricing model. Our determination of fair value of stock option awards on the date of grant is affected by our stock price as well as assumptions regarding our expected stock price volatility over the term of the awards, and actual and projected stock option exercise behaviors. The weighted-average grant-date fair value of stock options granted during the years ended December 31, 2022 , 2021 and 2020 was $ 4.60 , $ 4.27 and $ 2.99 , respectively. The assumptions used to determine the fair value of stock options granted are detailed in the table below: 2022 2021 2020 Risk-free interest rate 1.75 % 0.89 % to 1.40 % 0.37 % to 0.94 % Dividend yield 0.0 % 0.0 % 0.0 % Expected market price volatility 46.8 % 47 % to 52 % 46 % to 51 % Weighted-average expected market price volatility 46.8 % 49.0 % 49.2 % Expected term 5.8 years 4.6 to 6.5 years 4.6 to 6.5 years The risk-free interest rate was developed using the U.S. Treasury yield curve for periods equal to the expected life of the stock options at the grant date. No dividend yield was assumed because we do not pay cash dividends on common stock and currently have no plans to pay a dividend. Expected volatility is based on the long-term historical volatility (estimated over a period equal to the expected term of the stock options) of our common stock. In estimating the fair value of stock options under the Black-Scholes option-pricing model, separate groups of employees that have similar historical exercise behavior are considered separately. The expected term of options granted represents the period of time that options granted are expected to be outstanding. Restricted Stock and Restricted Stock Units A summary of restricted stock activity for the years ended December 31, 2022 and 2021 is presented below: Weighted-average Number grant-date of shares fair value Balance, December 31, 2020 204,214 9.25 Restricted stock granted in May 6,492 10.75 Restricted stock vested in May ( 6,493 ) 14.81 Restricted stock granted in November 151,500 9.35 Restricted stock vested in October ( 2,622 ) 5.80 Restricted stock vested in November ( 6,500 ) 20.29 Restricted stock forfeited in 2021 ( 14,380 ) 8.37 Balance, December 31, 2021 332,211 $ 9.06 Restricted stock vested in February ( 9,530 ) 26.23 Restricted stock granted in April 5,000 8.68 Restricted stock granted in May 32,720 8.04 Restricted stock vested in May ( 6,388 ) 10.50 Restricted stock vested in October ( 2,622 ) 5.80 Restricted stock vested in November ( 61,750 ) 7.89 Restricted stock forfeited in 2022 ( 10,500 ) 9.35 Balance, December 31, 2022 279,141 $ 8.50 Share-based compensation expense related to restricted stock totaled $ 0.7 million for the year ended December 31, 2022 and $ 0.5 million for each of the years ended 2021 and 202 0. During the years ended December 31, 2022 and 2021, we granted 37,720 and 157,992 time-based restricted stock units, respectively, to certain employees and directors. The restricted stock units typically vest over four years for employees and three years for directors. The fair value of the non-vested time-based restricted common stock awards was calculated using the market value of the stock on the date of issuance. As of December 31, 2022 , total unrecognized compensation cost related to non-vested time-based restricted stock units was $ 1.7 million. That cost is expected to be recognized over a weighted-average period of 2.5 years. Employee Amended and Restated Stock Purchase Plan Under the Amended and Restated 1996 Employee Stock Purchase Plan, as amended (the “Plan”), the Company is authorized to issue up to 400,000 shares of common stock to its full-time employees, nearly all of whom are eligible to participate. Under the terms of the Plan, employees can choose as of January 1 and July 1 of each year to have up to 10 % of their total earnings withheld to purchase up to 100 shares of our common stock each six-month period. The purchase price of the stock is 85 % of the lower of its beginning-of-the-period or end-of-the-period market prices. At December 31, 2022 , we have issued 315,624 shares of common stock since the Plan’s inception. Tax Benefits Preservation Plan On August 24, 2020, the Company's Board of Directors (the “Board”) adopted the Tax Benefits Preservation Plan (“Rights Agreement”), which is a stockholder rights plan designed to reduce the risk that the Company’s ability to use its net operating loss carryforwards and certain other tax attributes to reduce potential future income tax obligations would become subject to limitation by reason of the Company experiencing an “ownership change,” as defined in Section 382 of the Internal Revenue Code of 1986. The Rights Agreement was ratified by the shareholders on an advisory, nonbinding basis at the May 2021 shareholder meeting. Under the Rights Agreement, the Board declared a dividend of one right (a “Right”) for each of the Company’s issued and outstanding shares of common stock, par value $ 0.001 per share (“Common Stock”). The dividend will be paid to the stockholders of record at the close of business on September 3, 2020 (the “Record Date”). Each Right entitles the registered holder, subject to the terms of the Rights Agreement (as defined below), to purchase from the Company one one-thousandth of a share of the Company’s Series A Junior Participating Preferred Stock , par value $ 0.001 per share (the “Series A Preferred Stock”), at a price of $ 35.00 (the “Exercise Price”), subject to certain adjustments. The fair value of the Rights was not significant. The Rights will not be exercisable until the earlier to occur of (i) the close of business on the tenth business day after a public announcement or filing that a person or group of affiliated or associated persons has become an “Acquiring Person,” which is defined as a person or group of affiliated or associated persons that, at any time after the date of the Rights Agreement, has acquired, or obtained the right to acquire, beneficial ownership of 4.95 % or more of the Company’s outstanding shares of Common Stock, subject to certain exceptions or (ii) the close of business on the tenth business day after the commencement of, or announcement of an intention to commence, a tender offer or exchange offer the consummation of which would result in any person becoming an Acquiring Person (the earlier of such dates being called the “Distribution Date”). The Rights, which are not exercisable until the Distribution Date, will expire at or prior to the earliest of (i) the close of business on August 24, 2023 ; (ii) the time at which the Rights are redeemed pursuant to the Rights Agreement; (iii) the time at which the Rights are exchanged pursuant to the Rights Agreement; (iv) the time at which the Rights are terminated upon the occurrence of certain mergers or other transactions approved in advance by the Board; and (v) the close of business on the date set by the Board following a determination by the Board that (x) the Rights Agreement is no longer necessary or desirable for the preservation of the Tax Benefits or (y) no Tax Benefits are available to be carried forward or are otherwise available. There were no issuances of Series A Preferred Stock during the twelve months ended December 31, 2022 or 2021. |
Retirement Plans
Retirement Plans | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Retirement Plans | Note 13: Retirement Plans We have a defined contribution retirement plan (“401(k) plan”) that covers substantially all employees. Pursuant to the 401(k) plan, participants may elect to make pre-tax and after-tax contributions, subject to certain limitations imposed under the Internal Revenue Code of 1986, as amended. In addition, we make periodic contributions to the 401(k) plan based on service for the North Jackson, Titusville and Dunkirk hourly employees. We make periodic contributions for the salaried employees at all locations based upon their service and their individual contribution to the 401(k) plan. We also participate in the Steelworkers Pension Trust (the “Trust”), a multi-employer defined-benefit pension plan that is open to all hourly and salary employees associated with the Bridgeville facility. We make periodic contributions to the Trust based on hours worked at a fixed rate for each hourly employee, as determined by the collective bargaining agreement, and a fixed monthly contribution on behalf of each salary employee. The trustees of the Trust have provided us with the latest data available for the Trust year ended December 31, 2021. As of that date, the Trust is not fully funded. We could be held liable to the Trust for our own obligations, as well as those of other employers, due to our participation in the Trust. Contribution rates could increase if the Trust is required to adopt a funding improvement plan or a rehabilitation plan, if the performance of the Trust assets do not meet expectations, or as a result of future collectively-bargained wage and benefit agreements. If we choose to stop participating in the Trust, we may be required to pay the Trust an amount based on the underfunded status of the Trust, referred to as a withdrawal liability. The Pension Protection Act (PPA) defines a zone status for each trust. Trusts in the green zone are at least 80% funded, trusts in the yellow zone are at least 65% funded, and trusts in the red zone are generally less than 65% funded. The Trust recertified its zone status after using the extended amortization provisions as allowed by law. The Trust has not implemented a funding improvement or rehabilitation plan, nor are such plans pending. Our contributions to the Trust have not exceeded more than 5% of the total contributions to the Trust. Trusts employer identification Funding plan Company contributions to the Trust Pension number / PPA zone status pending / (dollars in thousands) Surcharge fund plan number 2022 2021 implemented 2022 2021 2020 imposed Trust 23-6648508 / 499 Green Green No $ 691 $ 647 $ 711 No The total expense of all retirement plans for the years ended December 31, 2022 , 2021 and 2020 was $ 1.6 million, $ 1.5 million and $ 1.8 million, respectively. The Company does not sponsor or participate in any other post-retirement benefit plans. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 14: Commitments and Contingencies From time to time, various lawsuits and claims have been or may be asserted against us relating to the conduct of our business, including routine litigation relating to commercial and employment matters. The ultimate cost and outcome of any litigation or claim cannot be predicted with certainty. Management believes, based on information presently available, that the likelihood that the ultimate outcome of any such pending matter will have a material adverse effect on our financial condition, or liquidity or a material impact to our results of operations is remote, although the resolution of one or more of these matters may have a material adverse effect on our results of operations for the period in which the resolution occurs. We, as well as other specialty metal manufacturers, are subject to demanding environmental standards imposed by federal, state and local environmental laws and regulations. We are not aware of any environmental condition that currently exists at any of our facilities that would cause a material adverse effect on our financial condition, results of operations or liquidity in a particular future quarter or year. Our purchase obligations include the value of all open purchase orders with established quantities and purchase prices, as well as minimum purchase commitments, all made in the normal course of business. At December 31, 2022 , our total purchase obligations were approximately $ 39.8 million, of which approximately $ 36.4 million will be due in 2023. |
Schedule II - Valuation and Qua
Schedule II - Valuation and Qualifying Accounts | 12 Months Ended |
Dec. 31, 2021 | |
SEC Schedule, 12-09, Valuation and Qualifying Accounts [Abstract] | |
Valuation and Qualifying Accounts | Schedule II – Valuation and Qualifying Accounts Balance at Charged to Deductions/ beginning costs and net charge- Balance at For the Years Ended December 31, 2022, 2021 and 2020 of year expenses offs (A) end of year (dollars in thousands) Allowance for doubtful accounts: Year ended December 31, 2022 $ 201 - - $ 201 Year ended December 31, 2021 203 - ( 2 ) 201 Year ended December 31, 2020 295 - ( 92 ) 203 Valuation allowance for deferred income taxes: Year ended December 31, 2022 $ 412 - ( 19 ) $ 393 Year ended December 31, 2021 412 - - 412 Year ended December 31, 2020 2,105 - ( 1,693 ) 412 (A) Credits to the allowance for doubtful accounts represent the write-off of bad debts net of recoveries. Credits to the valuation allowance for deferred income taxes represent adjustments to existing valuation allowances. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Consolidation | Basis of Consolidation . The consolidated financial statements include the accounts of Universal Stainless & Alloy Products, Inc. and its wholly-owned subsidiaries and variable interest entities (collectively, “we,” “us,” “our,” or the “Company”). All intercompany accounts and transactions have been eliminated in consolidation. We have no interests in any unconsolidated entity. |
Use of Estimates | Use of Estimates . The preparation of financial statements in conformity with U.S. Generally Accepted Accounting Principles requires management to make estimates and assumptions that affect the amounts reported in the consolidated financial statements. The estimates and assumptions used in these consolidated financial statements are based on known information available as of the balance sheet date. Actual results could differ from those estimates. |
Concentration of Credit Risk | Concentration of Credit Risk . We limit our credit risk on accounts receivable by performing ongoing credit evaluations and, when necessary, require letters of credit, guarantees or cash co llateral. Our largest customer accounted for approximately 21 %, 19 % and 23 % of our net sales for the years ended December 31, 2022, 2021 and 2020, respectively, and 12 %, 7 % and 8 % of our total accounts receivable balance at December 31, 2022, 2021 and 2020, respectively. Our second largest customer in each year accounted for approximately 18 %, 10 % and less than 10 % of our net sales for the years ended December 31, 2022, 2021 and 2020, respectively, and 25 %, 6 %, and less than 5 % of our total accounts receivable balance at December 31, 2022, 2021 and 2020, respectively. The higher percentage of accounts receivable made up by our second largest customer in 2022 is primarily due to timing, as sales to that customer during the year were highest in the fourth quarter. |
Accounts Receivable and Allowance for Doubtful Accounts | Accounts Receivable and Allowance for Doubtful Accounts . Accounts receivable are presented net of the allowance for doubtful accounts on our consolidated balance sheets. We market our products to a diverse customer base, primarily throughout the United States. International sales approximated 5 % of total net sales in 2022 and 7 % in both 2021 and 2020. The allowance for doubtful accounts includes specific reserves for the value of outstanding invoices issued to customers that are deemed potentially not collectible. Receivables are charged-off to the allowance when they are deemed to be uncollectible. There was no bad debt expense recorded for the years ended December 31, 2022, 2021 and 2020 . |
Inventories | Inventories . Inventories are stated at the lower of cost or net realizable value with cost principally determined by the weighted average cost method. Such costs include the acquisition cost for raw materials and operating supplies, direct labor and applied manufacturing overhead within the guidelines of normal plant capacity. We reserve for slow-moving inventory and inventory that is being evaluated under our quality control process. The reserves are based upon management’s expected method of disposition. The net change in inventory reserves for the year ended December 31, 2022 was a decrease of $ 1.1 million. The net change for the year ended December 31, 2021 was an increase of $ 0.3 million, and the net change for the year ended December 31, 2020 was an increase of $ 1.1 million. Included in inventory are operating materials consisting of forge dies and production molds and rolls that are consumed over their useful lives. During the years ended December 31, 2022, 2021 and 2020 , we amortized these operating materials in the amount of $ 1.6 million, $ 1.7 million and $ 1.7 million, respectively. This expense is recorded as a component of cost of products sold on the consolidated statements of operations and included as a part of our total depreciation and amortization on the consolidated statements of cash flows. We experienced low activity levels at our production facilities during 2021 and 2020 caused primarily by the impacts of the COVID-19 pandemic. As a result, $ 6.1 million of fixed overhead costs were not absorbed into inventory and charged directly to expense during 2021, and $ 8.3 million of fixed overhead costs were not absorbed into inventory charged directly to expense during 2020. |
Government Assistance | Government Assistance . We received an award under the Aviation Manufacturing Jobs Program during 2022 totaling approximately $ 3.6 million . The entire amount of the award was earned during 2022 and recorded as a reduction to costs of goods sold in the consolidated statement of operations. Approximately $ 1.8 million of cash was received during 2022 and the remaining cash is expected in 2023. Accordingly, a receivable of $ 1.8 million was recorded within Other current assets on the consolidated balance sheet. |
Property, Plant and Equipment | Property, Plant and Equipment . Property, plant and equipment is recorded at cost or its fair value at acquisition date. No depreciation is recognized on assets until they are placed in service. Assets which have been retired or disposed of are removed from cost and accumulated depreciation accounts, with the gain or loss generally reflected in cost of goods sold on the consolidated statements of operations. Major equipment maintenance costs are capitalized as incurred and included in other current assets and other long-term assets, as appropriate. These costs are amortized to cost of products sold within a 12 to 36 month period. Other maintenance costs are expensed as incurred. Costs of improvements and renewals are capitalized. Our maintenance expense for the years ended December 31, 2022, 2021 and 2020 was $ 21.6 million, $ 16.7 million and $ 15.9 million, respectively, which is included as a component of cost of products sold. Depreciation is computed using th e straight-line method based on the estimated useful lives of the related assets. The estimated useful lives of buildings and land improvements are between 10 and 40 years , and the estimated useful lives of machinery and equipment are between five and 39 years. Our total depreciation expense for the years ended December 31, 2022, 2021 and 2020 was $ 17.4 million, $ 17.3 million and $ 17.5 million, respectively, of which $ 16.8 million, $ 16.8 million and $ 17.0 million, respectively, was included as a component of cost of products sold while the remainder was included in selling, general and administrative expense. |
Long-Lived Asset Impairment | Long-Lived Asset Impairment . Long-lived assets, including property, plant and equipment and intangible assets are evaluated for impairment whenever events or changes in circumstances indicate that the carrying amount of an asset may not be recoverable in relation to the operating performance and future undiscounted cash flows of the underlying assets. Adjustments are made if the sum of expected future cash flows is less than the book value. Based on management’s assessment of the carrying values of long-lived assets, no impairment reserve was necessary as of December 31, 2022, 2021 and 2020 . |
Deferred Financing Costs | Deferred Financing Costs . Deferred financing costs are amortized up to the maturity date of the related financial instrument using the straight-line method, which approximates the effective interest method. Deferred financing cost amortization for each of the years ended December 31, 2022, 2021 and 2020 was $ 0.2 million and is included as a component of interest expense and other financing costs on the consolidated statements of operations and included as part of total depreciation and amortization on the consolidated statements of cash flows. At December 31, 2022 and 2021 , we had $ 1.4 million and $ 1.5 million, respectively, of unamortized deferred financing costs included on our consolidated balance sheets as a reduction of debt. |
Revenue Recognition | Revenue Recognition . The Company’s revenues are primarily composed of sales of products. Revenue from the sale of products is recognized when the Company satisfies its performance obligations under a contract by transferring control of the promised product to its customer (“point-in-time”). Sales of certain specified product grades and shapes, and sales from conversion services, are recognized over-time. These sales qualify for over-time revenue recognition as the Company does not produce an asset with alternative use when completing its performance obligations with regard to these items, and maintains an enforceable right to payment in the event of contract termination. Invoiced shipping and handling costs are also accounted for as revenue. Customer claims, which are not material, are accounted for primarily as a reduction to gross sales after the matter has been researched and an acceptable resolution has been reached. |
Income Taxes | Income Taxes . Deferred income taxes are provided for net operating losses, unused tax credits earned and the tax effect of temporary differences between the tax basis of assets and liabilities and their reported amounts in the consolidated financial statements. We use the liability method to account for income taxes, which requires deferred taxes to be recorded at the statutory rate expected to be in effect when the taxes are paid. Valuation allowances are provided for a deferred tax asset when it is more likely than not that the asset will not be realized. Income tax penalties and interest are included in the provision for income tax expense. We evaluate the tax positions taken or expected to be taken in our tax returns. A tax position should only be recognized in the financial statements if we determine that it is more-likely-than-not that the tax position will be sustained upon examination by the tax authorities, based upon the technical merits of the position. For those tax positions that should be recognized, the measurement of a tax position is determined as being the largest amount of benefit that is greater than fifty percent likely of being realized upon ultimate settlement. We believe there are no material uncertain tax positions at December 31, 2022, 2021 and 2020. We recognize excess tax benefits as a result of the exercise of employee stock options within the consolidated statements of operations. |
Share-based Compensation Plans | Share-based Compensation Plans . We recognize compensation expense based on the grant-date fair value of the awards. The fair value of the stock option grants is estimated on the date of grant using the Black-Scholes option-pricing model, and is recognized ratably over the service/vesting period of the award. The fair value of time-based restricted stock grants and restricted stock units is calculated using the market value of the stock on the date of issuance, and is recognized ratably over the service/vesting period of the award. |
Net Loss per Common Share | Net Loss per Common Share . Net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding during the period. Diluted net loss per common share is computed by dividing net loss by the weighted-average number of common shares outstanding plus all dilutive potential common shares outstanding during the period. |
Treasury Stock | Treasury Stock . We account for treasury stock under the cost method and include such shares as a reduction of total stockholders’ equity. During 2020, we retired all treasury stock previously acquired. |
Financial Instruments | Financial Instruments . Financial instruments held by us include cash, accounts receivable, and accounts payable and current and long-term debt. The carrying value of cash, accounts receivable and accounts payable is considered to be representative of fair value because of the short maturity of these instruments. Refer to Note 8 for fair value disclosures of our financial instruments. |
Segment Reporting | Segment Reporting . Our operating facilities are integrated, and therefore our chief operating decision maker (“CODM”) views the Company as one business unit. Our CODM sets performance goals, assesses performance and makes decisions about resource allocations on a consolidated basis. As a result of these factors, as well as the nature of the financial information available which is reviewed by our CODM, we maintain one reportable segment. |
New Accounting Pronouncement | Recently Adopted Accounting Pronouncements In December 2019, the FASB issued ASU 2019-12, “Income Taxes - Simplifying the Accounting for Income Taxes (Topic 740),” which simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments in this ASU also improve consistency and simplify other areas of Topic 740 by clarifying and amending existing guidance. The amendments in this ASU will be applied using different approaches depending on what the specific amendment relates to and, for public entities, are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2020. An entity is permitted to early adopt the guidance, and we early adopted ASU 2019-12 as of January 1, 2020. The adoption did not have a material impact on our consolidated financial statements. Recently Issued Accounting Pronouncements In June 2016, the FASB added a new impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes as an allowance its estimate of expected credit losses applicable to trade receivables, other receivables, contract assets and most debt instruments. The model does not have a minimum threshold for recognition of impairment losses. The Company will adopt this guidance in 2023 and it is not expected to have a material impact to the consolidated financial statements. The Company considers the applicability and impact of all ASUs. Recently issued ASUs not listed were assessed and determined to be either not applicable or are expected to have minimal impact on our consolidated financial statements. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Revenue | The following summarizes our revenue by melt type: Twelve Months Ended December 31, 2022 2021 Net sales: Specialty alloys $ 160,352 127,885 Premium alloys (A) 39,225 26,423 Conversion services and other sales 2,537 1,626 Total net sales $ 202,114 $ 155,934 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Inventory (Tables)
Inventory (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventory | The major classes of inventory are as follows: December 31, 2022 2021 (dollars in thousands) Raw materials and starting stock $ 14,890 $ 12,263 Semi-finished and finished steel products 129,534 122,396 Operating materials 13,220 10,620 Gross inventory 157,644 145,279 Inventory reserves ( 3,451 ) ( 4,595 ) Total inventory, net $ 154,193 $ 140,684 |
Property, Plant and Equipment (
Property, Plant and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | Property, plant and equipment consists of the following: December 31, 2022 2021 (dollars in thousands) Land and land improvements $ 8,090 $ 8,066 Buildings 53,334 52,866 Machinery and equipment 315,165 301,271 Construction in progress 12,602 5,138 Gross property, plant and equipment 389,191 367,341 Accumulated depreciation ( 225,701 ) ( 208,179 ) Property, plant and equipment, net $ 163,490 $ 159,162 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consists of the following: December 31, 2022 2021 (dollars in thousands) Term loan $ 11,786 $ 13,929 Revolving credit facility 79,545 55,997 Finance leases 6,663 783 Sale and leaseback financing liability 1,804 - 99,798 70,709 Less: current portion of long-term debt ( 3,419 ) ( 2,392 ) Less: deferred financing costs ( 1,364 ) ( 1,465 ) Long-term debt $ 95,015 $ 66,852 |
Schedule of Maturities of Long-term Debt | The aggregate annual principal payments due under our Credit Agreement at December 31, 2022, are as follows: (dollars in thousands) 2023 $ 2,144 2024 2,144 2025 2,144 2026 84,899 $ 91,331 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Future Minimum Lease Payments Applicable to Operating and Finance Leases | As of December 31, 2022, future minimum lease payments applicable to operating and finance leases were as follows: Operating Leases Finance Leases 2023 $ 266 $ 1,696 2024 170 1,678 2025 36 1,566 2026 21 1,439 2027 2 1,392 2028 - 1,085 Total minimum lease payments $ 495 $ 8,856 Less amounts representing interest ( 15 ) ( 2,193 ) Present value of minimum lease payments $ 480 $ 6,663 Less current obligations ( 262 ) ( 1,045 ) Total long-term lease obligations, net $ 218 $ 5,618 Weighted-average remaining lease term 2.1 years 5.3 years |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Benefit from Income Taxes | For the years ended December 31, 2022 2021 2020 (dollars in thousands) Current provision (benefit) Federal $ ( 1 ) $ - $ ( 16 ) State 5 5 - Deferred benefit Federal ( 2,566 ) ( 3,376 ) ( 5,154 ) State ( 62 ) 88 ( 77 ) Benefit from income taxes $ ( 2,624 ) $ ( 3,283 ) $ ( 5,247 ) |
Schedule of Effective Income Tax Rate Reconciliation | For the years ended December 31, 2022 2021 2020 Tax benefit at statutory tax rate $ ( 2,246 ) $ ( 848 ) $ ( 5,102 ) State income taxes, net of federal tax benefit ( 53 ) ( 153 ) ( 129 ) Research and development tax credit ( 557 ) ( 814 ) ( 372 ) Valuation allowance ( 19 ) - - PPP loan forgiveness - ( 2,100 ) - Deferred tax adjustment for stock option forfeitures - 371 234 Other adjustments to deferred taxes 213 230 45 Other 38 31 77 Benefit from income taxes $ ( 2,624 ) $ ( 3,283 ) $ ( 5,247 ) |
Schedule of Deferred Tax Assets and Liabilities | December 31, 2022 2021 (dollars in thousands) Noncurrent deferred income taxes: Federal and state tax carryforwards $ 12,863 $ 13,358 Inventory 960 1,310 Share-based compensation 1,592 1,745 Receivables 43 51 Accrued liabilities 147 168 Other 1,930 4 Total deferred tax assets $ 17,535 $ 16,636 Deferred tax liabilities: Property, plant and equipment $ 16,852 $ 18,459 Other 540 638 Total deferred tax liabilities $ 17,392 $ 19,097 Total noncurrent deferred income taxes assets (liabilities) $ 143 $ ( 2,461 ) |
Net Loss Per Common Share (Tabl
Net Loss Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Loss Per Common Share | The computation of basic and diluted net loss per common share for the years ended December 31, 2022, 2021 and 2020 is as follows: For the years ended December 31, 2022 2021 2020 (dollars in thousands, except per share amounts) Numerator: Net loss $ ( 8,073 ) $ ( 758 ) $ ( 19,047 ) Denominator: Weighted average number of shares of common stock outstanding 8,972,468 8,907,908 8,818,974 Weighted average effect of dilutive share-based compensation - - - Diluted weighted average number of shares of common stock outstanding 8,972,468 8,907,908 8,818,974 Net loss per common share: Basic earnings per share $ ( 0.90 ) $ ( 0.09 ) $ ( 2.16 ) Diluted earnings per share $ ( 0.90 ) $ ( 0.09 ) $ ( 2.16 ) |
Share-Based Plans (Tables)
Share-Based Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Stock Option Activity | A summary of stock option activity as of and for the year ended December 31, 2022 is presented below: Non-vested stock Stock options options outstanding outstanding Weighted- Weighted- Weighted- average average average Number grant-date Number exercise contractual of shares fair value of shares price term (years) Outstanding at December 31, 2021 237,844 $ 4.60 868,875 $ 17.65 Stock options granted 5,000 4.60 5,000 10.13 Stock options vested ( 91,160 ) 5.17 - - Stock options forfeited ( 10,475 ) 16.02 ( 58,150 ) 29.31 Outstanding at December 31, 2022 141,209 $ 4.17 815,725 $ 16.78 4.8 Exercisable at December 31, 2022 673,641 $ 18.36 4.1 |
Schedule of Assumptions Used to Determine Fair Value of Stock Options Granted | The assumptions used to determine the fair value of stock options granted are detailed in the table below: 2022 2021 2020 Risk-free interest rate 1.75 % 0.89 % to 1.40 % 0.37 % to 0.94 % Dividend yield 0.0 % 0.0 % 0.0 % Expected market price volatility 46.8 % 47 % to 52 % 46 % to 51 % Weighted-average expected market price volatility 46.8 % 49.0 % 49.2 % Expected term 5.8 years 4.6 to 6.5 years 4.6 to 6.5 years |
Summary of Restricted Stock Activity | A summary of restricted stock activity for the years ended December 31, 2022 and 2021 is presented below: Weighted-average Number grant-date of shares fair value Balance, December 31, 2020 204,214 9.25 Restricted stock granted in May 6,492 10.75 Restricted stock vested in May ( 6,493 ) 14.81 Restricted stock granted in November 151,500 9.35 Restricted stock vested in October ( 2,622 ) 5.80 Restricted stock vested in November ( 6,500 ) 20.29 Restricted stock forfeited in 2021 ( 14,380 ) 8.37 Balance, December 31, 2021 332,211 $ 9.06 Restricted stock vested in February ( 9,530 ) 26.23 Restricted stock granted in April 5,000 8.68 Restricted stock granted in May 32,720 8.04 Restricted stock vested in May ( 6,388 ) 10.50 Restricted stock vested in October ( 2,622 ) 5.80 Restricted stock vested in November ( 61,750 ) 7.89 Restricted stock forfeited in 2022 ( 10,500 ) 9.35 Balance, December 31, 2022 279,141 $ 8.50 |
Retirement Plans (Tables)
Retirement Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Multiemployer Plans | Trusts employer identification Funding plan Company contributions to the Trust Pension number / PPA zone status pending / (dollars in thousands) Surcharge fund plan number 2022 2021 implemented 2022 2021 2020 imposed Trust 23-6648508 / 499 Green Green No $ 691 $ 647 $ 711 No |
Significant Accounting Polici_3
Significant Accounting Policies (Concentration of Credit Risk, Accounts Receivable, and Allowance for Doubtful Accounts) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Concentration Risk [Line Items] | |||
Bad debt expense | $ 0 | $ 0 | $ 0 |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 21% | 19% | 23% |
Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | Customer Second [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 18% | 10% | 10% |
Sales Revenue, Net [Member] | Geographic Concentration Risk [Member] | International Sales [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 5% | 7% | 7% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer One [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 12% | 7% | 8% |
Accounts Receivable [Member] | Customer Concentration Risk [Member] | Customer Second [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk, percentage | 25% | 6% | 5% |
Significant Accounting Polici_4
Significant Accounting Policies (Inventories) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Net change in inventory reserves | $ (1.1) | $ 0.3 | $ 1.1 |
Amortization included in cost of products sold | 1.6 | 1.7 | 1.7 |
Fixed Production Overhead To Cost of Inventory | $ 6.1 | $ 8.3 | $ 8.3 |
Significant Accounting Polici_5
Significant Accounting Policies (Government Assistance) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Government Assistance [Line Items] | |||
Government Assistance, Statement of Income or Comprehensive Income [Extensible Enumeration] | Government assistance award amount | ||
Government assistance award amount | $ 187,927 | $ 147,963 | $ 182,387 |
Aviation Manufacturing Jobs Program 2022 | |||
Government Assistance [Line Items] | |||
Government assistance award amount | 3,600 | ||
Procceds from grants in cash | 1,800 | ||
Aviation Manufacturing Jobs Program 2022 | Other Current Assets | |||
Government Assistance [Line Items] | |||
Grants receivable current | $ 1,800 |
Significant Accounting Polici_6
Significant Accounting Policies (Property, Plant and Equipment) (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Property, Plant and Equipment [Line Items] | |||
Cost of property repairs and maintenance | $ 21.6 | $ 16.7 | $ 15.9 |
Depreciation | 17.4 | 17.3 | 17.5 |
Product [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Cost of goods sold, depreciation | $ 16.8 | $ 16.8 | $ 17 |
Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized maintenance cost, amortization period | 12 months | ||
Minimum [Member] | Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 10 years | ||
Minimum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 5 years | ||
Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Capitalized maintenance cost, amortization period | 36 months | ||
Maximum [Member] | Land and Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 40 years | ||
Maximum [Member] | Machinery and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Property, plant and equipment, useful life | 39 years |
Significant Accounting Polici_7
Significant Accounting Policies (Long-Lived Asset Impairment) (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Asset Impairment Charges [Abstract] | |||
Impairment reserve | $ 0 | $ 0 | $ 0 |
Significant Accounting Polici_8
Significant Accounting Policies (Deferred Financing Costs) (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Accounting Policies [Abstract] | |||
Amortization of deferred financing costs | $ 200 | $ 200 | $ 200 |
Unamortized debt issuance expense | 1,400 | 1,500 | |
Deferred financing costs | $ 1,364 | $ 1,465 |
Significant Accounting Polici_9
Significant Accounting Policies (Income Taxes) (Narrative) (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounting Policies [Abstract] | |||
Unrecognized tax positions | $ 0 | $ 0 | $ 0 |
Significant Accounting Polic_10
Significant Accounting Policies (Segment Reporting) (Narrative) (Details) | 12 Months Ended |
Dec. 31, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 1 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
ASU 2014-09 [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue practical expedient remaining performance obligation [true/false] | true | |
Accounts Receivable [Member] | ||
Revenue Recognition [Line Items] | ||
Contract assets | $ 1.6 | $ 2.2 |
Revenue Recognition (Summary of
Revenue Recognition (Summary of Revenue) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 202,114 | $ 155,934 | $ 179,731 |
Specialty Alloys [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 160,352 | 127,885 | |
Premium Alloys [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | 39,225 | 26,423 | |
Conversion Services and Other Sales [Member] | |||
Disaggregation Of Revenue [Line Items] | |||
Net sales | $ 2,537 | $ 1,626 |
Inventory (Major Classes of Inv
Inventory (Major Classes of Inventory) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and starting stock | $ 14,890 | $ 12,263 |
Semi-finished and finished steel products | 129,534 | 122,396 |
Operating materials | 13,220 | 10,620 |
Gross inventory | 157,644 | 145,279 |
Inventory reserves | (3,451) | (4,595) |
Total inventory, net | $ 154,193 | $ 140,684 |
Property, Plant and Equipment_2
Property, Plant and Equipment (Schedule of Property, Plant and Equipment) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 389,191 | $ 367,341 |
Accumulated depreciation | (225,701) | (208,179) |
Property, plant and equipment, net | 163,490 | 159,162 |
Land and Land Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 8,090 | 8,066 |
Buildings [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 53,334 | 52,866 |
Machinery and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | 315,165 | 301,271 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Gross property, plant and equipment | $ 12,602 | $ 5,138 |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 99,798 | $ 70,709 |
Less: current portion of long-term debt | (3,419) | (2,392) |
Less: deferred financing costs | (1,364) | (1,465) |
Long-term debt | 95,015 | 66,852 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 79,545 | 55,997 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 11,786 | 13,929 |
Sale and Leaseback financing liability Member | ||
Debt Instrument [Line Items] | ||
Sale and leaseback financing liability | 1,804 | |
Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 6,663 | $ 783 |
Long-Term Debt (Credit Facility
Long-Term Debt (Credit Facility) (Narrative) (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | Mar. 17, 2021 | |
Line of Credit Facility [Line Items] | ||||
Minimum secured borrowing capacity | $ 11,000,000 | |||
Minimum fixed charge coverage ratio | 110% | |||
Net deferred financing fees | $ 1,364,000 | $ 1,465,000 | ||
Amortization of deferred financing costs | $ 200,000 | 200,000 | $ 200,000 | |
Amended and Restated Prior Credit Agreement [Member] | PNC Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, expiration date | Mar. 17, 2026 | |||
Revolving Credit Facility [Member] | PNC Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 105,000,000 | |||
Commitment fee on the daily unused portion of the Revolver | 0.25% | |||
Net deferred financing fees | $ 700,000 | $ 900,000 | ||
Revolving Credit Facility [Member] | PNC Bank [Member] | SOFR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, effective interest rate | 6.90% | |||
Term Loan [Member] | PNC Bank [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Maximum secured borrowing capacity | $ 15,000,000 | |||
Debt Instrument, Frequency of Periodic Payment | quarterly | |||
Quarterly term loan payments | $ 500,000 | |||
Term Loan [Member] | PNC Bank [Member] | SOFR [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Debt instrument, effective interest rate | 7.40% |
Long-Term Debt (Schedule of Mat
Long-Term Debt (Schedule of Maturities of Long-term Debt) (Detail) $ in Thousands | Dec. 31, 2022 USD ($) |
Debt Disclosure [Abstract] | |
2023 | $ 2,144 |
2024 | 2,144 |
2025 | 2,144 |
2026 | 84,899 |
Total debt | $ 91,331 |
Long-Term Debt (Notes) (Narrati
Long-Term Debt (Notes) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jan. 21, 2016 | Apr. 16, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2022 | Mar. 17, 2021 | Dec. 31, 2011 | |
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 7,000,000 | ||||||
Debt instrument interest rate | 11.20% | ||||||
Unsecured Debt | PNC Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 10,000,000 | ||||||
Promissory note, Issuance Date | Apr. 15, 2020 | ||||||
Paycheck Protection Program Note [Member] | PNC Bank [Member] | CARES Act [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 1% | ||||||
Notes [Member] | North Jackson Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 20,000,000 | ||||||
Notes [Member] | Gorbert Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 20,000,000 | $ 15,000,000 | |||||
Debt instrument, maturity date | Mar. 17, 2019 | Mar. 17, 2021 | Mar. 17, 2020 | ||||
Notes [Member] | Gorbert Inc. [Member] | Since August 17, 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 6% |
Leases (Narrative) (Details)
Leases (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Lessee Lease Description [Line Items] | ||
Value of the lease agreement | $ 5,196 | |
Sale and leaseback component | 1,800 | |
Sale and lease component current | 200 | |
Operating leases, right-of-use assets | $ 500 | $ 700 |
Operating Lease Right Of Use Asset Statement Of Financial Position Extensible List | Other long-term assets | Other long-term assets |
Finance leases, right-of-use assets | $ 9,200 | $ 500 |
Finance Lease Right Of Use Asset Statement Of Financial Position Extensible List | Other long-term assets | Other long-term assets |
Amortization of finance lease assets | $ 200 | $ 200 |
Lease practical expedient (true/false) | true | |
Principal amount of financing instrument | $ 7,000 | |
Financing instrument term | 72 months | |
Financing instrument interest rate | 11.20% | |
Weighted average interest rate on financing leases | 10% | |
VAR expansion | ||
Lessee Lease Description [Line Items] | ||
Value of the lease agreement | $ 5,200 | |
Maximum [Member] | ||
Lessee Lease Description [Line Items] | ||
Operating and finance lease, lease terms | 72 months | |
Finance lease term applicable to depreciate right-of-use assets and lease liabilities | 6 years | |
Minimum [Member] | ||
Lessee Lease Description [Line Items] | ||
Finance lease term applicable to depreciate right-of-use assets and lease liabilities | 3 years |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Applicable to Operating and Finance Leases) (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Operating Leases | |
2023 | $ 266 |
2024 | 170 |
2025 | 36 |
2026 | 21 |
2027 | 2 |
Total minimum lease payments | 495 |
Less amounts representing interest | (15) |
Present value of minimum lease payments | $ 480 |
Operating Lease, Liability | us-gaap:OtherLiabilities |
Less current obligations | $ (262) |
Operating Lease, Liability, Current | Other current liabilities |
Total long-term lease obligations, net | $ 218 |
Operating Lease, Liability, Noncurrent | Other long-term liabilities |
Weighted-average remaining lease term | 2 years 1 month 6 days |
Finance Leases | |
2023 | $ 1,696 |
2024 | 1,678 |
2025 | 1,566 |
2026 | 1,439 |
2027 | 1,392 |
2028 | 1,085 |
Total minimum lease payments | 8,856 |
Less amounts representing interest | (2,193) |
Present value of minimum lease payments | $ 6,663 |
Finance Lease, Liability | us-gaap:OtherLiabilities |
Less current obligations | $ (1,045) |
Finance Lease, Liability, Current | Current portion of long-term debt |
Total long-term lease obligations, net | $ 5,618 |
Operating Lease, Liability, Noncurrent | Long-term debt |
Weighted-average remaining lease term | 5 years 3 months 18 days |
New Markets Tax Credit Financ_2
New Markets Tax Credit Financing Transaction (Narrative) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Mar. 09, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
New Markets Tax Credit Financing Transaction [Line Items] | |||
New market tax credits recapture percentage | 100% | ||
New market tax credits period of recapture | 7 years | ||
Other long-term liabilities | $ 3,066 | $ 3,360 | |
Gain (Loss) on Sale of Derivatives | 2,800 | ||
Deferred financing costs | 1,364 | 1,465 | |
New Markets Tax Credit (NMTC) Program [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Aggregate principal amount of leverage loan loaned to investment fund | $ 6,700 | ||
Leverage loan, due date | 2048-03 | ||
Other long-term liabilities | $ 2,800 | $ 2,800 | |
Deferred financing costs | $ 700 | ||
New Markets Tax Credit (NMTC) Program [Member] | PNC New Markets Investment Partners, LLC [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Capital contributions to investment fund | $ 3,500 |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Jan. 01, 2021 | |
Maximum [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Accumulated unrealized loss on foreign currency contracts , net of tax | $ 100,000 | $ 100,000 | |
Derivative Instrument, Gain (Loss) Reclassified from AOCI into Income, Effective Portion, Statement of Income or Comprehensive Income [Extensible Enumeration] | Unrealized Gain (Loss) on Derivatives | Unrealized Gain (Loss) on Derivatives | |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional value of derivative contracts | $ 4,300,000 | $ 2,500,000 | |
Interest Rate Swap [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Notional value of derivative contracts | 10,000,000 | 16,000,000 | $ 16,000,000 |
Accumulated unrealized loss on foreign currency contracts , net of tax | $ 100,000 | ||
Interest Rate Swap [Member] | Maximum [Member] | |||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | |||
Accumulated unrealized loss on foreign currency contracts , net of tax | $ 100,000 |
Income Taxes (Schedule of Compo
Income Taxes (Schedule of Components of Benefit from Income Taxes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Current provision (benefit), Federal | $ (1) | $ (16) | |
Current provision (benefit), State | 5 | $ 5 | |
Deferred provision (benefit), Federal | (2,566) | (3,376) | (5,154) |
Deferred provision (benefit), State | (62) | 88 | (77) |
Benefit from income taxes | $ (2,624) | $ (3,283) | $ (5,247) |
Income Taxes (Schedule of Effec
Income Taxes (Schedule of Effective Income Tax Rate Reconciliation) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||
Tax benefit at statutory tax rate | $ (2,246) | $ (848) | $ (5,102) |
State income taxes, net of federal tax benefit | (53) | (153) | (129) |
Research and development tax credit | (557) | (814) | (372) |
Valuation allowance | (19) | ||
PPP loan forgiveness | (2,100) | ||
Deferred tax adjustment for stock option forfeitures | 371 | 234 | |
Other adjustments to deferred taxes | 213 | 230 | 45 |
Other | 38 | 31 | 77 |
Benefit from income taxes | $ (2,624) | $ (3,283) | $ (5,247) |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 25.8 | $ 29.2 |
Net operating loss carryforwards expiration year | 2035 | |
Net operating loss carryforwards, valuation allowance | $ 0.2 | 0.2 |
Income tax examination description | We are routinely under audit by federal or state authorities. Our federal tax returns are subject to examination by the IRS for tax years after 2018. We are subject to examination by most state tax jurisdictions for tax years after 2018. | |
Research Tax Credit Carryforward [Member] | ||
Income Taxes [Line Items] | ||
Tax credit carryforward amount | $ 7 | 6.4 |
Tax credit carryforward expiration year | 2030 | |
State and Local Jurisdiction [Member] | ||
Income Taxes [Line Items] | ||
Net operating loss carryforwards | $ 11 | 11.1 |
Net operating loss carryforwards expiration year | 2031 | |
Tax credit carryforward amount | $ 0.4 | $ 0.4 |
Tax credit carryforward expiration year | 2027 | |
Income tax examination year | 2018 | |
State and Local Jurisdiction [Member] | NEW YORK [Member] | ||
Income Taxes [Line Items] | ||
Effective income tax rate continuing operations | 0% | |
Federal [Member] | IRS [Member] | ||
Income Taxes [Line Items] | ||
Income tax examination year | 2018 |
Income Taxes (Schedule of Defer
Income Taxes (Schedule of Deferred Tax Assets and Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Tax Disclosure [Abstract] | ||
Federal and state tax carryforwards | $ 12,863 | $ 13,358 |
Inventory | 960 | 1,310 |
Share-based compensation | 1,592 | 1,745 |
Receivables | 43 | 51 |
Accrued liabilities | 147 | 168 |
Other | 1,930 | 4 |
Total deferred tax assets | 17,535 | 16,636 |
Property, plant and equipment | 16,852 | 18,459 |
Other | 540 | 638 |
Total deferred tax liabilities | 17,392 | 19,097 |
Total noncurrent deferred income taxes assets | $ 143 | |
Total noncurrent deferred income taxes (liabilities) | $ (2,461) |
Net Loss Per Common Share (Narr
Net Loss Per Common Share (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Exercise of stock options (shares) | 0 | 0 | 0 |
Stock Compensation Plan [Member] | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Antidilutive securities excluded from computation of earnings per share, amount | 711,375 | 645,050 | 776,025 |
Weighted average price of anti-dilutive options outstanding | $ 18.25 | $ 21 | $ 22.02 |
Exercise of stock options (shares) | 17,143 | 39,036 | 22,533 |
Net Loss Per Common Share (Comp
Net Loss Per Common Share (Computation of Basic and Diluted Net Loss Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Numerator: | |||
Net loss | $ (8,073) | $ (758) | $ (19,047) |
Denominator: | |||
Weighted average number of shares of common stock outstanding | 8,972,468 | 8,907,908 | 8,818,974 |
Diluted weighted average number of shares of common stock outstanding | 8,972,468 | 8,907,908 | 8,818,974 |
Net (loss) income per common share: | |||
Basic loss per share | $ (0.90) | $ (0.09) | $ (2.16) |
Diluted loss per share | $ (0.90) | $ (0.09) | $ (2.16) |
Share-Based Plans (Stock Option
Share-Based Plans (Stock Options) (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | May 04, 2022 | May 05, 2021 | May 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Weighted-average grant-date fair value of stock options granted | $ 4.60 | |||||
Exercise of stock options (shares) | 0 | 0 | 0 | |||
Director [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 3 years | |||||
Employee Stock Option [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Award vesting period | 4 years | |||||
Award expiration period | 10 years | |||||
Closing stock price | $ 7.17 | |||||
Aggregate intrinsic value of outstanding stock options | $ 0.1 | |||||
Total fair value of stock option awards vested | 0.2 | $ 0.7 | $ 0.8 | |||
Share-based compensation expense | 0.5 | $ 0.5 | $ 0.8 | |||
Unrecognized share-based compensation expense | $ 0.5 | |||||
Unrecognized share-based compensation expense, weighted-average period of recognition | 2 years 1 month 6 days | |||||
Weighted-average grant-date fair value of stock options granted | $ 4.60 | $ 4.27 | $ 2.99 | |||
Amended and Restated 2017 Equity Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares authorized | 500,000 | 400,000 | 568,357 | |||
Number of shares available for grant | 676,977 | |||||
Omnibus Incentive Plan [Member] | ||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||
Number of shares available for grant | 0 |
Share-Based Plans (Summary of S
Share-Based Plans (Summary of Stock Option Activity) (Details) | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Non-vested stock options outstanding, Number of shares | |
Non-vested stock options outstanding, beginning balance | shares | 237,844 |
Stock options granted | shares | 5,000 |
Stock options vested | shares | (91,160) |
Stock options forfeited | shares | (10,475) |
Non-vested stock options outstanding, ending balance | shares | 141,209 |
Non-vested stock options outstanding, Weighted-average grant-date fair value | |
Non-vested stock options outstanding, Weighted-average grant-date fair value, beginning balance | $ / shares | $ 4.60 |
Stock options granted | $ / shares | 4.60 |
Stock options vested | $ / shares | 5.17 |
Stock options forfeited | $ / shares | 16.02 |
Non-vested stock options outstanding, Weighted-average grant-date fair value, ending balance | $ / shares | $ 4.17 |
Stock options outstanding, Number of shares | |
Stock options outstanding, beginning balance | shares | 868,875 |
Stock options granted | shares | 5,000 |
Stock options forfeited | shares | (58,150) |
Stock options outstanding, ending balance | shares | 815,725 |
Stock options outstanding, Weighted-average exercise price | |
Stock options outstanding, weighted-average exercise price, beginning balance | $ / shares | $ 17.65 |
Stock options granted | $ / shares | 10.13 |
Stock options forfeited | $ / shares | 29.31 |
Stock options outstanding, weighted-average exercise price, ending balance | $ / shares | $ 16.78 |
Stock options outstanding, weighted-average remaining contractual life | 4 years 9 months 18 days |
Stock options exercisable at end of period | shares | 673,641 |
Stock options exercisable, weighted-average exercise price at end of period | $ / shares | $ 18.36 |
Stock options exercisable, weighted-average remaining contractual life | 4 years 1 month 6 days |
Share-Based Plans (Schedule of
Share-Based Plans (Schedule of Assumptions Used to Determine Fair Value of Stock Options Granted) (Details) - Employee Stock Option [Member] | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate | 1.75% | ||
Dividend yield | 0% | 0% | 0% |
Expected market price volatility | 46.80% | ||
Weighted-average expected market price volatility | 46.80% | 49% | 49.20% |
Expected term | 5 years 9 months 18 days | ||
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, minimum | 0.89% | 0.37% | |
Expected market price volatility, minimum | 47% | 46% | |
Expected term | 4 years 7 months 6 days | 4 years 7 months 6 days | |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate, maximum | 1.40% | 0.94% | |
Expected market price volatility, maximum | 52% | 51% | |
Expected term | 6 years 6 months | 6 years 6 months |
Share-Based Plans (Summary of R
Share-Based Plans (Summary of Restricted Stock Activity) (Details) - Restricted Stock Units [Member] - $ / shares | 1 Months Ended | 12 Months Ended | ||||||||
Nov. 30, 2022 | Oct. 31, 2022 | May 31, 2022 | Apr. 30, 2022 | Feb. 28, 2022 | Nov. 30, 2021 | Oct. 31, 2021 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Number of shares | ||||||||||
Beginning balance | 332,211 | 204,214 | ||||||||
Restricted stock granted | 32,720 | 5,000 | 151,500 | 6,492 | 37,720 | 157,992 | ||||
Restricted stock vested | (61,750) | (2,622) | (6,388) | (9,530) | (6,500) | (2,622) | (6,493) | |||
Restricted stock forfeited | (10,500) | (14,380) | ||||||||
Ending balance | 279,141 | 332,211 | ||||||||
Weighted-average grant-date fair value | ||||||||||
Beginning balance | $ 9.06 | $ 9.25 | ||||||||
Restricted stock granted | $ 8.04 | $ 8.68 | $ 9.35 | $ 10.75 | ||||||
Restricted stock vested | $ 7.89 | $ 5.80 | $ 10.50 | $ 26.23 | $ 20.29 | $ 5.80 | $ 14.81 | |||
Restricted stock forfeited | 9.35 | 8.37 | ||||||||
Ending balance | $ 8.50 | $ 9.06 |
Share-Based Plans (Restricted S
Share-Based Plans (Restricted Stock and Restricted Stock Units) (Narrative) (Details) - USD ($) $ in Millions | 1 Months Ended | 12 Months Ended | |||||
May 31, 2022 | Apr. 30, 2022 | Nov. 30, 2021 | May 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years | ||||||
Restricted Stock [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Share-based compensation expense | $ 0.7 | $ 0.5 | $ 0.5 | ||||
Restricted Stock Units [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Granted, time-based shares | 32,720 | 5,000 | 151,500 | 6,492 | 37,720 | 157,992 | |
Unrecognized compensation cost | $ 1.7 | ||||||
Unrecognized compensation cost, weighted-average period of recognition | 2 years 6 months | ||||||
Restricted Stock Units [Member] | Employees [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 4 years | ||||||
Restricted Stock Units [Member] | Director [Member] | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||
Award vesting period | 3 years |
Share-Based Plans (Employee Ame
Share-Based Plans (Employee Amended and Restated Stock Purchase Plan) (Narrative) (Details) - Stock Compensation Plan [Member] | 12 Months Ended |
Dec. 31, 2022 shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of shares authorized | 400,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Employee Subscription Rate | 10% |
Share-based Compensation Arrangement by Share-based Payment Award, Maximum Number of Shares Per Employee | 100 |
Share-based Compensation Arrangement by Share-based Payment Award, Purchase Price of Common Stock, Percent | 85% |
Share-based Compensation Arrangement by Share-based Payment Award, Cumulative Shares Issued under Plan | 315,624 |
Share-Based Plans (Tax Benefits
Share-Based Plans (Tax Benefits Preservation Plan) (Narrative) (Details) - $ / shares | 12 Months Ended | ||
Aug. 24, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, par value | $ 0.001 | $ 0.001 | |
Preferred stock, shares issued | 0 | 0 | |
Ownership Under Rights Agreement [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Acquired beneficial ownership | 4.95% | ||
Stock Compensation Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock, par value | $ 0.001 | ||
Dividends payable, date of record | Sep. 03, 2020 | ||
Common stock, terms of conversion | Each Right entitles the registered holder, subject to the terms of the Rights Agreement (as defined below), to purchase from the Company one one-thousandth of a share of the Company’s Series A Junior Participating Preferred Stock | ||
Business divestiture closing date | Aug. 24, 2023 | ||
Stock Compensation Plan [Member] | Series A Preferred Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Preferred stock, par value | $ 0.001 | ||
Exercise price per share | $ 35 | ||
Preferred stock, shares issued | 0 | 0 |
Retirement Plans (Schedule of M
Retirement Plans (Schedule of Multiemployer Plans) (Details) - Steelworkers Pension Trust [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Multiemployer Plans [Line Items] | |||
Plan number | 499 | ||
PPA zone status | Green | Green | |
Funding plan pending / implemented | No | ||
Company contributions to the Trust | $ 691 | $ 647 | $ 711 |
Surcharge imposed | No |
Retirement Plans (Narrative) (D
Retirement Plans (Narrative) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |||
Retirement plan expense | $ 1.6 | $ 1.5 | $ 1.8 |
Commitments and Contingencies (
Commitments and Contingencies (Narrative) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase obligations | $ 39.8 |
Purchase obligations due in 2022 | $ 36.4 |
Schedule II - Valuation and Q_2
Schedule II - Valuation and Qualifying Accounts (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |||
Allowance for Doubtful Accounts [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of year | $ 201 | $ 203 | $ 295 | ||
Charged to costs and expenses | 0 | 0 | 0 | ||
Deductions/ net charge-offs | [1] | 0 | (2) | (92) | |
Balance at end of year | 201 | 201 | 203 | ||
Valuation Allowance for Deferred Income Taxes [Member] | |||||
Valuation and Qualifying Accounts Disclosure [Line Items] | |||||
Balance at beginning of year | 412 | 412 | 2,105 | ||
Charged to costs and expenses | 0 | ||||
Deductions/ net charge-offs | (19) | 0 | [1] | (1,693) | |
Balance at end of year | $ 393 | $ 412 | $ 412 | ||
[1] Credits to the allowance for doubtful accounts represent the write-off of bad debts net of recoveries. Credits to the valuation allowance for deferred income taxes represent adjustments to existing valuation allowances. |