Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 30, 2023 | |
Document Information [Line Items] | ||
Entity Central Index Key | 0000931584 | |
Entity Registrant Name | UNIVERSAL STAINLESS & ALLOY PRODUCTS INC | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Period Focus | Q3 | |
Document Fiscal Year Focus | 2023 | |
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | 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 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 9,088,245 | |
Preferred Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Security Exchange Name | NASDAQ | |
No Trading Symbol Flag | true | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Trading Symbol | USAP | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net sales | $ 71,283 | $ 46,196 | $ 206,163 | $ 145,914 |
Cost of products sold | 60,424 | 43,218 | 177,732 | 134,144 |
Gross margin | 10,859 | 2,978 | 28,431 | 11,770 |
Selling, general and administrative expenses | 6,449 | 5,279 | 19,479 | 15,605 |
Operating income (loss) | 4,410 | (2,301) | 8,952 | (3,835) |
Interest expense and other financing costs | 2,138 | 1,221 | 6,215 | 2,800 |
Other expense (income), net | 42 | (599) | 5 | (625) |
Income (loss) before income taxes | 2,230 | (2,923) | 2,732 | (6,010) |
Income taxes | 300 | (1,626) | 419 | (1,661) |
Net income (loss) | $ 1,930 | $ (1,297) | $ 2,313 | $ (4,349) |
Net income (loss) per common share - Basic (in dollars per share) | $ 0.21 | $ (0.14) | $ 0.26 | $ (0.49) |
Net income (loss) per common share - Diluted (in dollars per share) | $ 0.2 | $ (0.14) | $ 0.25 | $ (0.49) |
Weighted average shares of common stock outstanding | ||||
Basic (in shares) | 9,087,465 | 8,975,331 | 9,069,926 | 8,960,830 |
Diluted (in shares) | 9,427,509 | 8,975,331 | 9,290,982 | 8,960,830 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income (loss) | $ 1,930 | $ (1,297) | $ 2,313 | $ (4,349) |
Other comprehensive income (loss), net of tax | ||||
Unrealized gain (loss) on derivatives | 109 | 159 | (161) | 455 |
Comprehensive income (loss) | $ 2,039 | $ (1,138) | $ 2,152 | $ (3,894) |
Consolidated Balance Sheets (Cu
Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash | $ 177 | $ 2,019 |
Accounts receivable (less expected credit losses of $34 and $201 in each period, respectively) | 36,984 | 30,960 |
Inventory | 150,751 | 154,193 |
Other current assets | 8,621 | 10,392 |
Total current assets | 196,533 | 197,564 |
Property, plant and equipment, net | 158,881 | 163,490 |
Deferred income tax assets | 0 | 143 |
Other long-term assets | 1,602 | 2,137 |
Total assets | 357,016 | 363,334 |
Current liabilities: | ||
Accounts payable | 35,095 | 38,179 |
Accrued employment costs | 5,119 | 2,790 |
Current portion of long-term debt | 3,697 | 3,419 |
Other current liabilities | 1,006 | 1,112 |
Total current liabilities | 44,917 | 45,500 |
Long-term debt, net | 85,832 | 95,015 |
Deferred income taxes | 219 | 0 |
Other long-term liabilities, net | 3,053 | 3,066 |
Total liabilities | 134,021 | 143,581 |
Commitments and contingencies (Note 9) | ||
Stockholders’ equity: | ||
Senior preferred stock, par value $0.001 per share; 1,980,000 shares authorized; zero shares issued and outstanding | 0 | 0 |
Common stock, par value $0.001 per share; 20,000,000 shares authorized; 9,088,245 and 9,049,748 shares issued, respectively | 9 | 9 |
Additional paid-in capital | 98,092 | 97,002 |
Accumulated other comprehensive (loss) income | (28) | 133 |
Retained earnings | 124,922 | 122,609 |
Total stockholders’ equity | 222,995 | 219,753 |
Total liabilities and stockholders’ equity | $ 357,016 | $ 363,334 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Allowance for credit losses | $ 34 | $ 201 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, authorized (in shares) | 1,980,000 | 1,980,000 |
Preferred stock, issued (in shares) | 0 | 0 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, issued (in shares) | 9,088,245 | 9,049,748 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities: | ||
Net income (loss) | $ 2,313 | $ (4,349) |
Adjustments for non-cash items: | ||
Depreciation and amortization | 14,331 | 14,351 |
Amortization of deferred debt financing costs | 194 | 169 |
Deferred income tax | 370 | (1,675) |
Share-based compensation expense | 1,008 | 1,001 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (6,024) | (1,938) |
Inventory | 2,159 | (19,342) |
Accounts payable | (743) | 7,255 |
Accrued employment costs | 2,329 | (335) |
Other assets and liabilities, net | 1,909 | (1,449) |
Net cash provided by (used in) operating activities | 17,846 | (6,312) |
Investing Activity: | ||
Payments for property, plant and equipment | (9,656) | (10,974) |
Net cash used in investing activity | (9,656) | (10,974) |
Financing Activities: | ||
Borrowings under revolving credit facility | 151,929 | 102,098 |
Payments on revolving credit facility | (159,383) | (83,260) |
Issuance of common stock under share-based plans | 82 | 62 |
Payments on term loan facility and finance leases | (2,660) | (1,666) |
Net cash (used in) provided by financing activities | (10,032) | 17,234 |
Net decrease in cash | (1,842) | (52) |
Cash at beginning of period | 2,019 | 118 |
Cash at end of period | 177 | 66 |
Supplemental Non-Cash Investing Activity: | ||
Capital expenditures in accounts payable | $ 1,386 | $ 3,013 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Balance (in shares) at Dec. 31, 2021 | 8,938,091 | ||||
Balance at Dec. 31, 2021 | $ 9 | $ 95,590 | $ 130,682 | $ 40 | |
Share-based compensation (in shares) | 19,362 | ||||
Share-based compensation | $ 0 | 409 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 135 | |
Net income (loss) | $ 0 | 0 | (1,615) | 0 | |
Balance (in shares) at Mar. 31, 2022 | 8,957,453 | ||||
Balance at Mar. 31, 2022 | $ 9 | 95,999 | 129,067 | 175 | |
Balance (in shares) at Dec. 31, 2021 | 8,938,091 | ||||
Balance at Dec. 31, 2021 | $ 9 | 95,590 | 130,682 | 40 | |
Net income (loss) | $ 0 | 0 | (1,437) | 0 | |
Balance (in shares) at Jun. 30, 2022 | 8,975,331 | ||||
Balance at Jun. 30, 2022 | $ 9 | 96,347 | 127,630 | 296 | |
Balance (in shares) at Dec. 31, 2021 | 8,938,091 | ||||
Balance at Dec. 31, 2021 | $ 9 | 95,590 | 130,682 | 40 | |
Other comprehensive income (loss), net of tax | $ 455 | ||||
Net income (loss) | $ (4,349) | ||||
Exercise of stock options (in shares) | 20,119 | ||||
Balance (in shares) at Sep. 30, 2022 | 8,975,331 | ||||
Balance at Sep. 30, 2022 | $ 9 | 96,653 | 126,333 | 455 | |
Balance (in shares) at Mar. 31, 2022 | 8,957,453 | ||||
Balance at Mar. 31, 2022 | $ 9 | 95,999 | 129,067 | 175 | |
Share-based compensation (in shares) | 8,008 | ||||
Share-based compensation | $ 0 | 286 | 0 | 0 | |
Other comprehensive income (loss), net of tax | $ 0 | 0 | 0 | 121 | |
Employee Stock Purchase Plan (in shares) | 9,870 | ||||
Employee Stock Purchase Plan | $ 0 | 62 | 0 | 0 | |
Balance (in shares) at Jun. 30, 2022 | 8,975,331 | ||||
Balance at Jun. 30, 2022 | $ 9 | 96,347 | 127,630 | 296 | |
Share-based compensation | 0 | 306 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 159 | $ 159 |
Net income (loss) | $ 0 | 0 | (1,297) | 0 | (1,297) |
Balance (in shares) at Sep. 30, 2022 | 8,975,331 | ||||
Balance at Sep. 30, 2022 | $ 9 | 96,653 | 126,333 | 455 | |
Balance (in shares) at Dec. 31, 2022 | 9,049,748 | ||||
Balance at Dec. 31, 2022 | $ 9 | 97,002 | 122,609 | 133 | 219,753 |
Share-based compensation (in shares) | 10,920 | ||||
Share-based compensation | $ 0 | 361 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (146) | |
Net income (loss) | $ 0 | 0 | (512) | 0 | |
Balance (in shares) at Mar. 31, 2023 | 9,060,668 | ||||
Balance at Mar. 31, 2023 | $ 9 | 97,363 | 122,097 | (13) | |
Balance (in shares) at Dec. 31, 2022 | 9,049,748 | ||||
Balance at Dec. 31, 2022 | $ 9 | 97,002 | 122,609 | 133 | 219,753 |
Other comprehensive income (loss), net of tax | (161) | ||||
Net income (loss) | $ 2,313 | ||||
Exercise of stock options (in shares) | 14,919 | ||||
Balance (in shares) at Sep. 30, 2023 | 9,088,245 | ||||
Balance at Sep. 30, 2023 | $ 9 | 98,092 | 124,922 | (28) | $ 222,995 |
Balance (in shares) at Mar. 31, 2023 | 9,060,668 | ||||
Balance at Mar. 31, 2023 | $ 9 | 97,363 | 122,097 | (13) | |
Share-based compensation (in shares) | 15,172 | ||||
Share-based compensation | $ 0 | 311 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (124) | |
Net income (loss) | $ 0 | 0 | 895 | 0 | |
Employee Stock Purchase Plan (in shares) | 10,280 | ||||
Employee Stock Purchase Plan | $ 0 | 64 | 0 | 0 | |
Exercise of stock options (in shares) | 1,250 | ||||
Exercise of stock options | $ 0 | 11 | 0 | 0 | |
Balance (in shares) at Jun. 30, 2023 | 9,087,370 | ||||
Balance at Jun. 30, 2023 | $ 9 | 97,749 | 122,992 | (137) | |
Share-based compensation | 0 | 336 | 0 | 0 | |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 109 | 109 |
Net income (loss) | $ 0 | 0 | 1,930 | 0 | 1,930 |
Exercise of stock options (in shares) | 875 | ||||
Exercise of stock options | $ 0 | 7 | 0 | 0 | |
Balance (in shares) at Sep. 30, 2023 | 9,088,245 | ||||
Balance at Sep. 30, 2023 | $ 9 | $ 98,092 | $ 124,922 | $ (28) | $ 222,995 |
Note 1 - Nature of Business and
Note 1 - Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1: Universal Stainless & Alloy Products, Inc., and its wholly-owned subsidiaries (collectively, “Universal,” “we,” “us,” “our,” or the “Company”), manufacture and market semi-finished and finished specialty steel products, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. Our manufacturing process involves melting, remelting, heat treating, hot and cold rolling, forging, machining and cold drawing of semi-finished and finished specialty steels. Our products are sold to service centers, forgers, rerollers, original equipment manufacturers and wire redrawers. Our customers further process our products for use in a variety of industries, including the aerospace, power generation, oil and gas, heavy equipment, and general industrial manufacturing industries. We also perform conversion services on materials supplied by customers. The accompanying unaudited consolidated statements include the accounts of Universal Stainless & Alloy Products, Inc. and its subsidiaries and are prepared in accordance with U.S. generally accepted accounting principles (“U.S. GAAP”) for interim financial reports and the instructions for Form 10 10 01 X. December 31, 2022 not not 10 not may When we obtain an economic interest in an entity, we evaluate the entity to determine if the entity is a VIE, and if we are deemed to be a primary beneficiary. As a part of our evaluation, we are required to qualitatively assess if we are the primary beneficiary of the VIE based on whether we hold the power to direct those matters that most significantly impacted the activities of the VIE and the obligation to absorb losses or the right to receive the benefits of the VIE that could potentially be significant. Refer to Note 7, Recently Adopted Accounting Pronouncements In June 2016, not January 1, 2023. not Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued ASUs not not |
Note 2 - Net Income (Loss) Per
Note 2 - Net Income (Loss) Per Common Share | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Earnings Per Share [Text Block] | Note 2: The following table sets forth the computation of basic and diluted net income (loss) per common share: Three months ended Nine months ended September 30, September 30, (dollars in thousands, except per share amounts) 2023 2022 2023 2022 Numerator: Net income (loss) $ 1,930 $ (1,297 ) $ 2,313 $ (4,349 ) Denominator: Weighted average number of shares of common stock outstanding 9,087,465 8,975,331 9,069,926 8,960,830 Weighted average effect of dilutive share-based compensation 340,044 - 221,056 - Diluted weighted average number of shares of common stock outstanding 9,427,509 8,975,331 9,290,982 8,960,830 Net income (loss) per common share: Net income (loss) per common share - Basic $ 0.21 $ (0.14 ) $ 0.26 $ (0.49 ) Net income (loss) per common share - Diluted $ 0.20 $ (0.14 ) $ 0.25 $ (0.49 ) We had options to purchase 419,550 and 719,875 shares of common stock outstanding at a weighted average price of $22.11 and $18.48 for the three September 30, 2023 2022 nine September 30, 2023 2022 not In addition, the calculation of diluted net loss per share for the three nine September 30, 2022 |
Note 3 - Revenue Recognition
Note 3 - Revenue Recognition | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Revenue from Contract with Customer [Text Block] | Note 3: The Company’s revenues primarily include 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 not 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 over-time revenue recognition, in advance of shipment, as there is no nine September 30, 2023 2022, The timing of revenue recognition, customer billings, and cash collections resulted in contract assets related to services performed and not September 30, 2023 December 31, 2022 We expect to satisfy all performance obligations related to revenue recognized in advance of shipment at September 30, 2023 12 The Company has elected the following practical expedients allowed under Accounting Standard Codification (“ASC”) 606, Revenue from Contracts with Customers 606" ● Shipping of products is not ● Performance obligations are satisfied within one The following summarizes our revenue by melt type: Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Net sales: Specialty alloys $ 53,092 $ 37,308 $ 155,588 $ 118,352 Premium alloys (A) 16,476 7,986 46,998 25,707 Conversion services and other sales 1,715 902 3,577 1,855 Total net sales $ 71,283 $ 46,196 $ 206,163 $ 145,914 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Note 4 - Inventory
Note 4 - Inventory | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Inventory Disclosure [Text Block] | Note 4: Our raw material and starting stock inventory is primarily comprised of ferrous and non-ferrous scrap metal and alloys such as nickel, chrome, molybdenum, cobalt, vanadium and copper. Our semi-finished and finished steel products are work-in-process in various stages of production or are finished products waiting to be shipped to our customers. Operating materials are primarily comprised of forge dies and production molds and rolls that are consumed over their useful lives. During the nine September 30, 2023 2022 Inventory is stated at the lower of cost or net realizable value with cost principally determined on a weighted average cost method. Such costs include the acquisition cost for raw materials and supplies, direct labor and applied manufacturing overhead. We assess market based upon actual and estimated transactions at or around the balance sheet date. Typically, 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 Company experienced a liquid metal spill at our Bridgeville plant during April 2022. nine September 30, 2022 Inventories consisted of the following: September 30, December 31, (in thousands) 2023 2022 Raw materials and starting stock $ 15,884 $ 14,890 Semi-finished and finished steel products 122,538 129,534 Operating materials 15,552 13,220 Gross inventory 153,974 157,644 Inventory reserves (3,223 ) (3,451 ) Total inventory $ 150,751 $ 154,193 |
Note 5 - Leases
Note 5 - Leases | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Operating And Finance Leases Disclosure [Text Block] | Note 5: The Company periodically enters into leases in its normal course of business. At September 30, 2023 December 31, 2022 not 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 six The Company entered into four first nine 2023 As of September 30, 2023 (in thousands) Operating Leases Finance Leases 2023 $ 55 $ 491 2024 170 1,953 2025 36 1,841 2026 21 1,714 2027 2 1,570 2028 - 1,114 Total minimum lease payments 284 8,683 Less amounts representing interest (7 ) (1,867 ) Present value of minimum lease payments 277 6,816 Less current obligations (161 ) (1,311 ) Total long-term lease obligations, net $ 116 $ 5,505 Weighted-average remaining lease term (in years) 1.7 4.5 Right-of-use assets recorded to the consolidated balance sheet at September 30, 2023 $0.3 million for operating leases and $7.0 million for finance leases. nine September 30, 2023 e amortization of finance lease assets was $0.3 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, 2022 , net of accumulated The unamortized portion of the $5.2 million lease component of our VAR expansion financing arrangement is included in the right-of-use asset total, while the $1.8 million sale and leaseback component of that agreement is excluded. The sale and leaseback component is accounted for as a loan secured by the related equipment, as it did not 842, Leases 842" December 2022 The Company applies the practical expedient allowed under ASC 842 12 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 revolving credit facility discussed in Note 6, first |
Note 6 - Long-term Debt
Note 6 - Long-term Debt | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Debt Disclosure [Text Block] | Note 6: Long-term debt consisted of the following: September 30, December 31, (in thousands) 2023 2022 Revolving credit facility $ 72,091 $ 79,545 Term loan 10,178 11,786 Sale and leaseback financing liability 1,605 1,804 Finance leases 6,816 6,663 Total debt 90,690 99,798 Less: current portion of long-term debt (3,697 ) (3,419 ) Less: deferred financing costs (1,161 ) (1,364 ) Long-term debt, net $ 85,832 $ 95,015 Credit Facility On March 17, 2021, not At September 30, 2023 nine September 30, 2023 2022 The Credit Agreement requires the Company to maintain compliance with all the applicable financial covenants throughout the term of the Credit Agreement. As of September 30, 2023 The Facilities, which expire on March 17, 2026 ( first no 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 1.0 two 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 pays quarterly installments of the principal of approximately $0.5 million, plus accrued and unpaid interest, on the first June 30, 2021. not Amounts outstanding under the Facilities, at the Company’s option, bear interest at either a base rate or the current LIBOR (prior to September 30, 2022) September 30, 2022) nine September 30, 2023 |
Note 7 - New Markets Tax Credit
Note 7 - New Markets Tax Credit Financing Transaction | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
New Market Tax Credit Financing Transaction [Text Block] | Note 7: On March 9, 2018, In connection with the NMTC financing program, the Company loaned $6.7 million aggregate principal amount (“Leverage Loan”) due in March 2048, The NMTC is subject to 100 percent recapture for a period of seven not not As of September 30, 2023 December 31, 2022 This transaction also includes a put/call provision whereby the Company may March 2025, Direct costs incurred in structuring this financing transaction totaled $0.7 million. These costs were deferred and 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 ● 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. |
Note 8 - Fair Value Measurement
Note 8 - Fair Value Measurement | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Fair Value Measurement and Measurement Inputs, Recurring and Nonrecurring [Text Block] | Note 8: The fair value hierarchy has three Level 1 Level 2 not Level 3 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 fair value of the Term Loan and Revolving Credit Facility at September 30, 2023 December 31, 2022 2 11, September 30, 2023 December 31, 2022 2 |
Note 9 - Commitments and Contin
Note 9 - Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Commitments and Contingencies Disclosure [Text Block] | Note 9: From time to time, various lawsuits and claims have been or may one may |
Note 10 - Income Taxes
Note 10 - Income Taxes | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Income Tax Disclosure [Text Block] | Note 10: Management estimates the annual effective income tax rate quarterly based on forecasted full year results. Items unrelated to current year ordinary income are recognized entirely in the period identified as a discrete item of tax. The quarterly income tax provision includes tax on ordinary income provided at the most recent estimated annual effective tax rate (“ETR”), increased or decreased for the tax effect of discrete items. For the nine September 30, 2023 2022 not Discrete items during the nine September 30, 2023 2022 |
Note 11 - Derivatives and Hedgi
Note 11 - Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 11: The Company invoices certain customers in foreign currencies. In order to mitigate the risks associated with fluctuations in exchange rates with the U.S. Dollar, the Company entered into foreign exchange forward contracts to mitigate the foreign currency risk related to a portion of these sales, and has designated these contracts as cash flow hedges. The notional value of contracts was $3.8 million and $4.3 million at September 30, 2023 December 31, 2022 The Company recorded an unrealized loss in accumulated other comprehensive income (loss) of less than $0.1 million at September 30, 2023 December 31, 2022 Additionally, the Company entered into a forward interest rate swap contract during 2020 January 1, 2021 June 30, 2023. December 31, 2022 first 2023 June 30, 2023. December 31, 2022 no September 30, 2023. |
Note 12 - Related Parties
Note 12 - Related Parties | 9 Months Ended |
Sep. 30, 2023 | |
Notes to Financial Statements | |
Related Party Transactions Disclosure [Text Block] | Note 12: During the nine September 30, 2023 2022, nine September 30, 2023 2022, 850, Related Party Disclosures nine September 30, 2023 2022, September 30, 2023 December 31, 2022, |
Significant Accounting Policies
Significant Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Accounting Policies [Abstract] | |
New Accounting Pronouncements, Policy [Policy Text Block] | Recently Adopted Accounting Pronouncements In June 2016, not January 1, 2023. not Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued ASUs not not |
Note 2 - Net Income (Loss) Pe_2
Note 2 - Net Income (Loss) Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Three months ended Nine months ended September 30, September 30, (dollars in thousands, except per share amounts) 2023 2022 2023 2022 Numerator: Net income (loss) $ 1,930 $ (1,297 ) $ 2,313 $ (4,349 ) Denominator: Weighted average number of shares of common stock outstanding 9,087,465 8,975,331 9,069,926 8,960,830 Weighted average effect of dilutive share-based compensation 340,044 - 221,056 - Diluted weighted average number of shares of common stock outstanding 9,427,509 8,975,331 9,290,982 8,960,830 Net income (loss) per common share: Net income (loss) per common share - Basic $ 0.21 $ (0.14 ) $ 0.26 $ (0.49 ) Net income (loss) per common share - Diluted $ 0.20 $ (0.14 ) $ 0.25 $ (0.49 ) |
Note 3 - Revenue Recognition (T
Note 3 - Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Disaggregation of Revenue [Table Text Block] | Three months ended September 30, Nine months ended September 30, (in thousands) 2023 2022 2023 2022 Net sales: Specialty alloys $ 53,092 $ 37,308 $ 155,588 $ 118,352 Premium alloys (A) 16,476 7,986 46,998 25,707 Conversion services and other sales 1,715 902 3,577 1,855 Total net sales $ 71,283 $ 46,196 $ 206,163 $ 145,914 |
Note 4 - Inventory (Tables)
Note 4 - Inventory (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Inventory, Current [Table Text Block] | September 30, December 31, (in thousands) 2023 2022 Raw materials and starting stock $ 15,884 $ 14,890 Semi-finished and finished steel products 122,538 129,534 Operating materials 15,552 13,220 Gross inventory 153,974 157,644 Inventory reserves (3,223 ) (3,451 ) Total inventory $ 150,751 $ 154,193 |
Note 5 - Leases (Tables)
Note 5 - Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Lease, Cost [Table Text Block] | (in thousands) Operating Leases Finance Leases 2023 $ 55 $ 491 2024 170 1,953 2025 36 1,841 2026 21 1,714 2027 2 1,570 2028 - 1,114 Total minimum lease payments 284 8,683 Less amounts representing interest (7 ) (1,867 ) Present value of minimum lease payments 277 6,816 Less current obligations (161 ) (1,311 ) Total long-term lease obligations, net $ 116 $ 5,505 Weighted-average remaining lease term (in years) 1.7 4.5 |
Note 6 - Long-term Debt (Tables
Note 6 - Long-term Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Notes Tables | |
Schedule of Debt [Table Text Block] | September 30, December 31, (in thousands) 2023 2022 Revolving credit facility $ 72,091 $ 79,545 Term loan 10,178 11,786 Sale and leaseback financing liability 1,605 1,804 Finance leases 6,816 6,663 Total debt 90,690 99,798 Less: current portion of long-term debt (3,697 ) (3,419 ) Less: deferred financing costs (1,161 ) (1,364 ) Long-term debt, net $ 85,832 $ 95,015 |
Note 2 - Net Income (Loss) Pe_3
Note 2 - Net Income (Loss) Per Common Share (Details Textual) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares) | 419,550 | 719,875 | 532,150 | 716,375 |
Antidilutive Securities Excluded from Computation of Earnings Per Share, Weighted Average Price (in dollars per share) | $ 22.11 | $ 18.48 | $ 19.92 | $ 18.55 |
Share-Based Compensation Arrangement by Share-Based Payment Award, Options, Exercises in Period (in shares) | 14,919 | 20,119 |
Note 2 - Net Income (Loss) Pe_4
Note 2 - Net Income (Loss) Per Common Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net income (loss) | $ 1,930 | $ (1,297) | $ 2,313 | $ (4,349) |
Basic (in shares) | 9,087,465 | 8,975,331 | 9,069,926 | 8,960,830 |
Weighted average effect of dilutive share-based compensation (in shares) | 340,044 | 0 | 221,056 | 0 |
Diluted weighted average number of shares of common stock outstanding (in shares) | 9,427,509 | 8,975,331 | 9,290,982 | 8,960,830 |
Net income (loss) per common share - Basic (in dollars per share) | $ 0.21 | $ (0.14) | $ 0.26 | $ (0.49) |
Net income (loss) per common share - Diluted (in dollars per share) | $ 0.2 | $ (0.14) | $ 0.25 | $ (0.49) |
Note 3 - Revenue Recognition (D
Note 3 - Revenue Recognition (Details Textual) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Accounts Receivable [Member] | |||
Contract with Customer, Asset, after Allowance for Credit Loss | $ 2.3 | $ 1.6 | |
Transferred over Time [Member] | |||
Revenue from Contract with Customer, Including Assessed Tax | $ 7.2 | $ 4 |
Note 3 - Revenue Recognition -
Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | ||
Net sales | $ 71,283 | $ 46,196 | $ 206,163 | $ 145,914 | |
Specialty Alloys [Member] | |||||
Net sales | 53,092 | 37,308 | 155,588 | 118,352 | |
Premium Alloys [Member] | |||||
Net sales | [1] | 16,476 | 7,986 | 46,998 | 25,707 |
Conversion Services and Other Sales [Member] | |||||
Net sales | $ 1,715 | $ 902 | $ 3,577 | $ 1,855 | |
[1]Premium alloys represent all vacuum induction melted (VIM) products. |
Note 4 - Inventory (Details Tex
Note 4 - Inventory (Details Textual) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Liquid Metal Spill [Member] | ||
Inventory Write-down | $ 3.6 | |
Cost, Overhead | 1.3 | |
Insurance Recoveries | 1.5 | |
Cost of Sales [Member] | ||
Inventory Amortization Expense | $ 1.3 | $ 1.2 |
Note 4 - Inventory - Schedule o
Note 4 - Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Raw materials and starting stock | $ 15,884 | $ 14,890 |
Semi-finished and finished steel products | 122,538 | 129,534 |
Operating materials | 15,552 | 13,220 |
Gross inventory | 153,974 | 157,644 |
Inventory reserves | (3,223) | (3,451) |
Total inventory | $ 150,751 | $ 154,193 |
Note 5 - Leases (Details Textua
Note 5 - Leases (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Dec. 31, 2022 | |
Lessee, Finance Lease, Term of Contract (Year) | 72 months | |
Operating Lease, Right-of-Use Asset | $ 300 | $ 500 |
Finance Lease, Right-of-Use Asset, after Accumulated Amortization | 7,000 | 6,700 |
Finance Lease, Right-of-Use Asset, Amortization | 300 | |
Finance Lease, Liability, Undiscounted Excess Amount | 1,867 | |
Sale Leaseback Transaction, Net Book Value | $ 1,800 | |
Finance Lease, Original Amount | $ 7,000 | |
Finance Lease, Implicit Interest Rate | 11.20% | |
Finance Lease, Weighted Average Discount Rate, Percent | 10% | |
Lease Component of VAR Expansion [Member] | ||
Finance Lease, Liability, Undiscounted Excess Amount | $ 5,200 | |
Maximum [Member] | ||
Lease Term (Month) | 72 months | |
Lessee, Finance Lease, Term of Contract (Year) | 6 years | |
Minimum [Member] | ||
Lessee, Finance Lease, Term of Contract (Year) | 3 years |
Note 5 - Leases - Lease Cost (D
Note 5 - Leases - Lease Cost (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating lease, 2023 | $ 55 | |
Finance lease, 2023 | 491 | |
Operating lease, 2024 | 170 | |
Finance lease, 2024 | 1,953 | |
Operating lease, 2025 | 36 | |
Finance lease, 2025 | 1,841 | |
Operating lease, 2026 | 21 | |
Finance lease, 2026 | 1,714 | |
Operating lease, 2027 | 2 | |
Finance lease, 2027 | 1,570 | |
Operating lease, 2028 | 0 | |
Finance lease, 2028 | 1,114 | |
Total minimum operating lease payments | 284 | |
Total minimum finance lease payments | 8,683 | |
Operating lease, less amounts representing interest | (7) | |
Finance lease, less amounts representing interest | (1,867) | |
Present value of minimum operating lease payments | 277 | |
Present value of minimum finance lease payments | 6,816 | $ 6,663 |
Less current operating lease obligations | (161) | |
Finance lease, less current obligations | (1,311) | |
Total long-term operating lease obligations, net | 116 | |
Total long-term finance lease obligations, net | $ 5,505 | |
Weighted-average remaining operating lease term (in years) (Year) | 1 year 8 months 12 days | |
Weighted-average remaining finance lease term (in years) (Year) | 4 years 6 months |
Note 6 - Long-term Debt (Detail
Note 6 - Long-term Debt (Details Textual) $ in Thousands | 9 Months Ended | |||
Mar. 17, 2021 USD ($) | Sep. 30, 2023 USD ($) | Sep. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | |
Debt Issuance Costs, Net | $ 1,161 | $ 1,364 | ||
Amortization of Debt Issuance Costs | 194 | $ 169 | ||
PNC Capital Markets LLC [Member] | ||||
Debt Issuance Costs, Net | 600 | |||
Amortization of Debt Issuance Costs | $ 200 | $ 200 | ||
PNC Capital Markets LLC [Member] | Term Loan [Member] | ||||
Debt Instrument, Face Amount | $ 15,000 | |||
Debt Instrument, Periodic Payment | 500 | |||
PNC Capital Markets LLC [Member] | Term Loan [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 8.40% | |||
Revolving Credit Facility [Member] | PNC Capital Markets LLC [Member] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | 105,000 | |||
Line of Credit Facility, Necessary Undrawn Availability | $ 11,000 | |||
Line of Credit Facility, Fixed Charge Coverage Ratio | 1.1 | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.25% | |||
Revolving Credit Facility [Member] | PNC Capital Markets LLC [Member] | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate [Member] | ||||
Debt Instrument, Interest Rate, Effective Percentage | 7.90% |
Note 6 - Long-term Debt - Sched
Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Sale and leaseback financing liability | $ 1,605 | $ 1,804 |
Present value of minimum finance lease payments | 6,816 | 6,663 |
Total debt | 90,690 | 99,798 |
Less: current portion of long-term debt | (3,697) | (3,419) |
Less: deferred financing costs | (1,161) | (1,364) |
Long-term debt, net | 85,832 | 95,015 |
Term Loan [Member] | ||
Debt, carrying amount | 10,178 | 11,786 |
Revolving Credit Facility [Member] | ||
Debt, carrying amount | $ 72,091 | $ 79,545 |
Note 7 - New Markets Tax Cred_2
Note 7 - New Markets Tax Credit Financing Transaction (Details Textual) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 09, 2018 | Sep. 30, 2023 | Dec. 31, 2022 | |
Other Liabilities, Noncurrent | $ 3,053 | $ 3,066 | |
Debt Issuance Costs, Net | 1,161 | 1,364 | |
New Markets Tax Credit Financing Program [Member] | |||
Financing Receivable, after Allowance for Credit Loss | $ 6,700 | ||
Recapture Percentage | 100% | ||
Recapture Period (Year) | 7 years | ||
Other Liabilities, Noncurrent | 2,800 | $ 2,800 | |
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax | $ 2,800 | ||
Debt Issuance Costs, Net | $ 700 | ||
New Markets Tax Credit Financing Program [Member] | PNC Capital Markets LLC [Member] | |||
Financing Receivable, after Allowance for Credit Loss | $ 3,500 |
Note 10 - Income Taxes (Details
Note 10 - Income Taxes (Details Textual) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Effective Income Tax Rate Reconciliation, Percent | 11.90% | 30.90% | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% | ||
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-Based Payment Arrangement, Amount | $ 0.1 | $ 0.2 | ||
Effective Income Tax Rate Reconciliation, Percent, Discrete Items | 15.30% | 27.80% |
Note 11 - Derivatives and Hed_2
Note 11 - Derivatives and Hedging (Details Textual) - USD ($) $ in Millions | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2023 | Dec. 31, 2022 | Jun. 30, 2023 | Jan. 01, 2021 | |
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | ||||
Derivative, Notional Amount | $ 3.8 | $ 4.3 | ||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax | $ 0.1 | |||
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member] | Maximum [Member] | ||||
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax | 0.1 | |||
Interest Rate Swap [Member] | Cash Flow Hedging [Member] | ||||
Derivative, Notional Amount | 10 | $ 5 | $ 16 | |
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax | $ 0.1 |
Note 12 - Related Parties (Deta
Note 12 - Related Parties (Details Textual) - Executive Management and Family [Member] - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Other Receivables, Net, Current | $ 8.3 | $ 8.2 |
Revenue Benchmark [Member] | Customer Concentration Risk [Member] | ||
Concentration Risk, Percentage | 17% | 20% |