Universal Stainless & Alloy Products (USAP) 10-Q 6 Nov 23 2023 Q3 Quarterly report Financial data

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%