Universal Stainless & Alloy Products (USAP) 10-Q 30 Oct 24 2024 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2024	Oct. 21, 2024
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	2024
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2024
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		9,310,069
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

Condensed Consolidated Statemen

Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net sales	$ 87,250	$ 71,283	$ 247,646	$ 206,163
Cost of products sold	65,258	60,424	189,974	177,732
Gross margin	21,992	10,859	57,672	28,431
Selling, general and administrative expenses	8,967	6,449	24,540	19,479
Operating income	13,025	4,410	33,132	8,952
Interest expense and other financing costs	1,789	2,138	5,740	6,215
Other (income) expense, net	(2,242)	42	(2,206)	5
Income before income taxes	13,478	2,230	29,598	2,732
Income taxes	2,426	300	5,544	419
Net income	$ 11,052	$ 1,930	$ 24,054	$ 2,313
Net income per common share - Basic (in dollars per share)	$ 1.19	$ 0.21	$ 2.61	$ 0.26
Net income per common share - Diluted (in dollars per share)	$ 1.11	$ 0.2	$ 2.45	$ 0.25
Weighted average shares of common stock outstanding
Basic (in shares)	9,269,811	9,087,465	9,224,176	9,069,926
Diluted (in shares)	9,942,602	9,427,509	9,808,426	9,290,982

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 11,052	$ 1,930	$ 24,054	$ 2,313
Other comprehensive income (loss), net of tax
Unrealized (loss) gain on derivatives	(109)	109	(62)	(161)
Comprehensive income	$ 10,943	$ 2,039	$ 23,992	$ 2,152

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Current assets:
Cash	$ 1	$ 394
Accounts receivable (less expected credit losses of $34 as of the end of the period)	53,301	39,034
Inventory	146,929	144,700
Other current assets	11,893	11,693
Total current assets	212,124	195,821
Property, plant and equipment, net	157,548	159,636
Other long-term assets	1,836	1,233
Total assets	371,508	356,690
Current liabilities:
Accounts payable	35,038	34,855
Accrued employment costs	7,863	6,492
Current portion of long-term debt	3,795	3,733
Other current liabilities	1,755	829
Total current liabilities	48,451	45,909
Long-term debt, net	65,467	81,846
Deferred income taxes	4,309	2
Other long-term liabilities, net	28	2,891
Total liabilities	118,255	130,648
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; 9,307,550 and 9,185,307 shares issued, respectively	9	9
Additional paid-in capital	101,856	98,637
Accumulated other comprehensive loss	(185)	(123)
Retained earnings	151,573	127,519
Total stockholders’ equity	253,253	226,042
Total liabilities and stockholders’ equity	$ 371,508	$ 356,690

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Allowance for credit losses	$ 34	$ 34
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)	9,307,550	9,185,307

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Cash Flow (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023
Operating Activities:
Net income	$ 24,054	$ 2,313
Adjustments for non-cash items:
Depreciation and amortization	15,445	14,331
New Markets Tax Credit gain, net	(2,292)	0
Deferred income tax	4,331	564
Share-based compensation expense	1,551	1,008
Changes in assets and liabilities:
Accounts receivable, net	(14,267)	(6,024)
Inventory, net	(3,673)	2,159
Accounts payable	1,906	(743)
Accrued employment costs	1,371	2,329
Other, net	979	1,909
Net cash provided by operating activities	29,405	17,846
Investing Activity:
Payments for property, plant and equipment	(14,410)	(9,656)
Net cash used in investing activity	(14,410)	(9,656)
Financing Activities:
Net repayment of borrowings under revolving credit facility	(14,275)	(7,454)
Proceeds from stock issued under share-based plans	1,668	82
Repayments of term loan facility and finance leases	(2,781)	(2,660)
Net cash used in financing activities	(15,388)	(10,032)
Net decrease in cash	(393)	(1,842)
Cash at beginning of period	394	2,019
Cash at end of period	$ 1	$ 177

Condensed Consolidated Statem_4

Condensed 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, 2022	9,049,748
Balance at Dec. 31, 2022	$ 9	$ 97,002	$ 122,609	$ 133	$ 219,753
Share-based compensation	0	361	0	0	361
Unrealized (loss) gain on derivatives	0	0	0	(146)	(146)
Net income	$ 0	0	(512)	0	(512)
Share-based compensation (in shares)	10,920
Balance (in shares) at Mar. 31, 2023	9,060,668
Balance at Mar. 31, 2023	$ 9	97,363	122,097	(13)	219,456
Balance (in shares) at Dec. 31, 2022	9,049,748
Balance at Dec. 31, 2022	$ 9	97,002	122,609	133	219,753
Unrealized (loss) gain on derivatives					(161)
Net income					2,313
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)	219,456
Exercise of stock options (in shares)	1,250
Exercise of stock options	$ 0	11	0	0	11
Share-based compensation	0	311	0	0	311
Unrealized (loss) gain on derivatives	0	0	0	(124)	(124)
Net income	$ 0	0	895	0	895
Employee Stock Purchase Plan (in shares)	10,280
Employee Stock Purchase Plan	$ 0	64	0	0	64
Share-based compensation (in shares)	15,172
Balance (in shares) at Jun. 30, 2023	9,087,370
Balance at Jun. 30, 2023	$ 9	97,749	122,992	(137)	220,613
Exercise of stock options (in shares)	875
Exercise of stock options	$ 0	7	0	0	7
Share-based compensation	0	336	0	0	336
Unrealized (loss) gain on derivatives	0	0	0	109	109
Net income	$ 0	0	1,930	0	1,930
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 Dec. 31, 2023	9,185,307
Balance at Dec. 31, 2023	$ 9	98,637	127,519	(123)	226,042
Exercise of stock options (in shares)	4,500
Exercise of stock options	$ 0	66	0	0	66
Share-based compensation	0	454	0	0	454
Unrealized (loss) gain on derivatives	0	0	0	31	31
Net income	$ 0	0	4,137	0	4,137
Balance (in shares) at Mar. 31, 2024	9,189,807
Balance at Mar. 31, 2024	$ 9	99,157	131,656	(92)	230,730
Balance (in shares) at Dec. 31, 2023	9,185,307
Balance at Dec. 31, 2023	$ 9	98,637	127,519	(123)	226,042
Unrealized (loss) gain on derivatives					(62)
Net income					24,054
Balance (in shares) at Sep. 30, 2024	9,307,550
Balance at Sep. 30, 2024	$ 9	101,856	151,573	(185)	253,253
Balance (in shares) at Mar. 31, 2024	9,189,807
Balance at Mar. 31, 2024	$ 9	99,157	131,656	(92)	230,730
Exercise of stock options (in shares)	10,677
Exercise of stock options	$ 0	99	0	0	99
Share-based compensation	0	520	0	0	520
Unrealized (loss) gain on derivatives	0	0	0	16	16
Net income	$ 0	0	8,865	0	8,865
Employee Stock Purchase Plan (in shares)	15,572
Employee Stock Purchase Plan	$ 0	255	0	0	255
Share-based compensation (in shares)	21,897
Balance (in shares) at Jun. 30, 2024	9,237,953
Balance at Jun. 30, 2024	$ 9	100,031	140,521	(76)	240,485
Exercise of stock options (in shares)	69,597
Exercise of stock options	$ 0	1,248	0	0	1,248
Share-based compensation	0	577	0	0	577
Unrealized (loss) gain on derivatives	0	0	0	(109)	(109)
Net income	$ 0	0	11,052	0	11,052
Share-based compensation (in shares)	0
Balance (in shares) at Sep. 30, 2024	9,307,550
Balance at Sep. 30, 2024	$ 9	$ 101,856	$ 151,573	$ (185)	$ 253,253

Note 1 - Nature of Business and

Note 1 - Nature of Business and Basis of Presentation	9 Months Ended
	Sep. 30, 2024
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 condensed 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, 2023 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, On October 17, 2024 first 2025, three September 30, 2024 Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements In November 2023, 2023 09, December 15, 2023, December 15, 2024. not The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued ASUs not not

Note 2 - Net Income Per Common

Note 2 - Net Income Per Common Share	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Earnings Per Share [Text Block]	Note 2: The following table sets forth the computation of basic and diluted net income per common share: Three months ended Nine months ended September 30, September 30, (dollars in thousands, except per share amounts) 2024 2023 2024 2023 Numerator: Net income $ 11,052 $ 1,930 $ 24,054 $ 2,313 Denominator: Weighted average number of shares of common stock outstanding 9,269,811 9,087,465 9,224,176 9,069,926 Weighted average effect of dilutive share-based compensation 672,791 340,044 584,250 221,056 Diluted weighted average number of shares of common stock outstanding 9,942,602 9,427,509 9,808,426 9,290,982 Net income per common share: Net income per common share - Basic $ 1.19 $ 0.21 $ 2.61 $ 0.26 Net income per common share - Diluted $ 1.11 $ 0.20 $ 2.45 $ 0.25 The weighted average effect of dilutive share-based compensation was determined using the treasury stock method in all periods, and includes 364,215 shares for the effect of stock options outstanding and 308,576 shares for the effect of unvested restricted stock outstanding for the three September 30, 2024 nine September 30, 2024, The three September 30, 2023 nine September 30, 2024 There were options outstanding to purchase 5,000 and 532,150 shares of common stock at a weighted average price of $29.74 and $19.92, respectively, which were excluded from the computation of diluted net income per common share for the nine September 30, 2024 2023, three September 30, 2023.

Note 3 - Revenue Recognition

Note 3 - Revenue Recognition	9 Months Ended
	Sep. 30, 2024
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, 2024 2023 , respectively, and $3.4 million and $3.2 million during the three September 30, 2024 2023, The timing of revenue recognition, customer billings, and cash collections resulted in contract assets related to services performed and not September 30, 2024 and December 31, 2023 , respectively. The Company recorded these contract assets within Accounts Receivable in the Condensed Consolidated Balance Sheets at each date. We expect to satisfy all performance obligations related to revenue recognized in advance of shipment at September 30, 2024 within the next 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) 2024 2023 2024 2023 Net sales: Specialty alloys $ 63,165 $ 53,092 $ 181,003 $ 155,588 Premium alloys (A) 23,682 16,476 64,490 46,998 Conversion services and other sales 403 1,715 2,153 3,577 Total net sales $ 87,250 $ 71,283 $ 247,646 $ 206,163 (A) Premium alloys represent all vacuum induction melted (VIM) products.

Note 4 - Inventory

Note 4 - Inventory	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Inventory Disclosure [Text Block]	Note 4: Our raw material and starting stock inventory primarily includes ferrous and non-ferrous scrap metal and alloys such as nickel, chromium, 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 awaiting shipment to our customers. Operating materials primarily include forge dies, production molds and machine rolls that are consumed over their useful lives. During the nine September 30, 2024 2023 , we amortized these operating materials in the amount of $1.4 million and $1.3 million, respectively, and during the three September 30, 2024 2023, 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. Inventory consisted of the following: September 30, December 31, (in thousands) 2024 2023 Raw materials and starting stock $ 18,876 $ 15,124 Semi-finished and finished steel products 109,034 117,039 Operating materials 21,284 15,967 Gross inventory 149,194 148,130 Inventory reserves (2,265 ) (3,430 ) Total inventory $ 146,929 $ 144,700

Note 5 - Leases

Note 5 - Leases	9 Months Ended
	Sep. 30, 2024
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, 2024 December 31, 2023 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 condensed 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 condensed consolidated balance sheets and are depreciated as a component of cost of goods sold over the respective lease terms, which range from three six The Company entered into one first nine months of 2024 and one first nine 2023. As of September 30, 2024 , future minimum lease payments applicable to operating and finance leases were as follows: (in thousands) Operating Leases Finance Leases Remainder of 2024 $ 19 $ 488 2025 29 1,841 2026 21 1,714 2027 2 1,570 2028 - 1,114 Total minimum lease payments 71 6,727 Less amounts representing interest (1 ) (1,216 ) Present value of minimum lease payments 70 5,511 Less current obligations (41 ) (1,385 ) Total long-term lease obligations, net $ 29 $ 4,126 Weighted-average remaining lease term (in years) 1.8 3.5 Right-of-use assets recorded to the condensed consolidated balance sheet at September 30, 2024 , net of accumulated amortization, were $0.1 million for operating leases and $5.5 million for finance leases. For the three nine September 30, 2024 , the amortization of finance lease assets was $0.2 million and $0.6 million respectively. Right-of-use assets recorded to the condensed consolidated balance sheet at December 31, 2023 , net of accumulated amortization, were $0.2 million for operating leases and $6.5 million for finance leases. 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 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, 2024
Notes to Financial Statements
Debt Disclosure [Text Block]	Note 6: Long-term debt consisted of the following: September 30, December 31, (in thousands) 2024 2023 Revolving credit facility $ 54,709 $ 68,984 Term loan 8,036 9,643 Sale and leaseback financing liability 1,362 1,539 Finance leases 5,511 6,508 Total debt 69,618 86,674 Less: current portion of long-term debt (3,795 ) (3,733 ) Less: deferred financing costs (356 ) (1,095 ) Long-term debt, net $ 65,467 $ 81,846 Credit Facility On March 17, 2021, not September 30, 2024, At September 30, 2024 , we had total Credit Agreement related net deferred financing costs of approximately $0.4 million. For the nine September 30, 2024 2023 , we amortized approximately $0.2 million of deferred financing costs, and for the three September 30, 2024 2023, 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, 2024 , we are in compliance with all applicable financial covenants. 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 until it maintains a fixed charge coverage ratio ("FCCR") of not 1.0 two second 1.1 December 31, 2023 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 A mounts outstanding under the Facilities, at the Company’s option, bear interest at the current SOFR rate plus a spread, calculated in accordance with the terms of the Credit Agreement. Interest under the Credit Agreement is payable monthly. We elected to use the SOFR based rate for the majority of the debt outstanding under the Facilities for the nine September 30, 2024 , which approximated 7.0% for commitments under our Revolving Credit Facility and 7.5% for the Term Loan.

Note 7 - New Markets Tax Credit

Note 7 - New Markets Tax Credit Financing Transaction	9 Months Ended
	Sep. 30, 2024
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 Direct costs incurred in structuring this financing transaction totaled $0.7 million. Those costs were deferred and amortized over the term of the loans. As of December 31, 2023 , 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. The transaction included a put provision whereby the Company could be obligated to repurchase PNC New Markets Investment Partners, LLC’s interest in the Investment Fund for $1,000. PNC New Markets Investment Partners, LLC exercised the put option in September 2024, third From inception of the NMTC until the exercise of the put option on September 30, 2024, ● 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. Upon exercise of the put option, the Company gained control of both the Investment Fund and CDE and they ceased to be VIEs. Because the Company was the primary beneficiary of each entity, and as of September 30, 2024 no

Note 8 - Fair Value Measurement

Note 8 - Fair Value Measurement	9 Months Ended
	Sep. 30, 2024
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, 2024 December 31, 2023 2 2 11

Note 9 - Commitments and Contin

Note 9 - Commitments and Contingencies	9 Months Ended
	Sep. 30, 2024
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, 2024
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, 2024 2023 , our estimated annual effective tax rates applied to ordinary income were 19.9% and 11.9%, respectively. In each period, the projected annual ETR differs from the federal statutory rate of 21.0% primarily due to the impact of research and development credits. State taxes are not Discrete items during the nine September 30, 2024 2023 were related to share-based compensation items and totaled approximately $0.3 million of a benefit and $0.1 million of expense, respectively. The ETR for each period was 18.7% and 15.3%, respectively. Discrete items during the three September 30, 2024 not three September 30, 2023,

Note 11 - Derivatives and Hedgi

Note 11 - Derivatives and Hedging	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Derivative Instruments and Hedging Activities Disclosure [Text Block]	Note 11: T he 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 $4.7 million and $4.8 million at September 30, 2024 and December 31, 2023 , respectively. The Company recorded an unrealized loss in accumulated other comprehensive income (loss) of approximately $0.2 million and $0.1 million at September 30, 2024 and December 31, 2023 respectively related to the contracts. The Company entered into a forward interest rate swap contract during 2020 January 1, 2021 June 30, 2023. first 2023 June 30, 2023.

Note 12 - Related Parties

Note 12 - Related Parties	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Related Party Transactions Disclosure [Text Block]	Note 12: None.

Note 13 - Subsequent Events

Note 13 - Subsequent Events	9 Months Ended
	Sep. 30, 2024
Notes to Financial Statements
Subsequent Events [Text Block]	Note 13: On October 17, 2024 first 2025, three September 30, 2024

Insider Trading Arrangements

Insider Trading Arrangements	3 Months Ended	9 Months Ended
	Sep. 30, 2024	Sep. 30, 2024
Insider Trading Arr Line Items
Material Terms of Trading Arrangement [Text Block]		5. OTHER INFORMATION Not
Rule 10b5-1 Arrangement Terminated [Flag]	false
Rule 10b5-1 Arrangement Adopted [Flag]	false
Non-Rule 10b5-1 Arrangement Terminated [Flag]	false
Non-Rule 10b5-1 Arrangement Adopted [Flag]	false

Significant Accounting Policies

Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2024
Accounting Policies [Abstract]
New Accounting Pronouncements, Policy [Policy Text Block]	Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements In November 2023, 2023 09, December 15, 2023, December 15, 2024. not The Company considers the applicability and impact of all Accounting Standards Updates ("ASUs"). Recently issued ASUs not not

Note 2 - Net Income Per Commo_2

Note 2 - Net Income Per Common Share (Tables)	9 Months Ended
	Sep. 30, 2024
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) 2024 2023 2024 2023 Numerator: Net income $ 11,052 $ 1,930 $ 24,054 $ 2,313 Denominator: Weighted average number of shares of common stock outstanding 9,269,811 9,087,465 9,224,176 9,069,926 Weighted average effect of dilutive share-based compensation 672,791 340,044 584,250 221,056 Diluted weighted average number of shares of common stock outstanding 9,942,602 9,427,509 9,808,426 9,290,982 Net income per common share: Net income per common share - Basic $ 1.19 $ 0.21 $ 2.61 $ 0.26 Net income per common share - Diluted $ 1.11 $ 0.20 $ 2.45 $ 0.25

Note 3 - Revenue Recognition (T

Note 3 - Revenue Recognition (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Disaggregation of Revenue [Table Text Block]	Three months ended September 30, Nine months ended September 30, (in thousands) 2024 2023 2024 2023 Net sales: Specialty alloys $ 63,165 $ 53,092 $ 181,003 $ 155,588 Premium alloys (A) 23,682 16,476 64,490 46,998 Conversion services and other sales 403 1,715 2,153 3,577 Total net sales $ 87,250 $ 71,283 $ 247,646 $ 206,163

Note 4 - Inventory (Tables)

Note 4 - Inventory (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Inventory, Current [Table Text Block]	September 30, December 31, (in thousands) 2024 2023 Raw materials and starting stock $ 18,876 $ 15,124 Semi-finished and finished steel products 109,034 117,039 Operating materials 21,284 15,967 Gross inventory 149,194 148,130 Inventory reserves (2,265 ) (3,430 ) Total inventory $ 146,929 $ 144,700

Note 5 - Leases (Tables)

Note 5 - Leases (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Lease, Cost [Table Text Block]	(in thousands) Operating Leases Finance Leases Remainder of 2024 $ 19 $ 488 2025 29 1,841 2026 21 1,714 2027 2 1,570 2028 - 1,114 Total minimum lease payments 71 6,727 Less amounts representing interest (1 ) (1,216 ) Present value of minimum lease payments 70 5,511 Less current obligations (41 ) (1,385 ) Total long-term lease obligations, net $ 29 $ 4,126 Weighted-average remaining lease term (in years) 1.8 3.5

Note 6 - Long-term Debt (Tables

Note 6 - Long-term Debt (Tables)	9 Months Ended
	Sep. 30, 2024
Notes Tables
Schedule of Debt [Table Text Block]	September 30, December 31, (in thousands) 2024 2023 Revolving credit facility $ 54,709 $ 68,984 Term loan 8,036 9,643 Sale and leaseback financing liability 1,362 1,539 Finance leases 5,511 6,508 Total debt 69,618 86,674 Less: current portion of long-term debt (3,795 ) (3,733 ) Less: deferred financing costs (356 ) (1,095 ) Long-term debt, net $ 65,467 $ 81,846

Note 1 - Nature of Business a_2

Note 1 - Nature of Business and Basis of Presentation (Details Textual) $ in Millions	Oct. 17, 2024 USD ($)
Merger Agreement [Member] | Subsequent Event [Member]
Business Acquisition, Transaction Costs	$ 0.6

Note 2 - Net Income Per Commo_3

Note 2 - Net Income Per Common Share (Details Textual) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements (in shares)	672,791	340,044	584,250	221,056
Share-Based Payment Arrangement, Option [Member]
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements (in shares)	364,215	118,370	305,080	58,986
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount (in shares)		419,550	5,000	532,150
Antidilutive Securities Excluded from Computation of Earnings Per Share, Weighted Average Price (in dollars per share)		$ 22.11	$ 29.74	$ 19.92
Restricted Stock [Member]
Incremental Common Shares Attributable to Dilutive Effect of Share-Based Payment Arrangements (in shares)	308,576	221,674	279,170	162,070

Note 2 - Net Income (Loss) Per

Note 2 - Net Income (Loss) Per Common Share - Schedule of Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended
	Sep. 30, 2024	Jun. 30, 2024	Mar. 31, 2024	Sep. 30, 2023	Jun. 30, 2023	Mar. 31, 2023	Sep. 30, 2024	Sep. 30, 2023
Net income	$ 11,052	$ 8,865	$ 4,137	$ 1,930	$ 895	$ (512)	$ 24,054	$ 2,313
Basic (in shares)	9,269,811			9,087,465			9,224,176	9,069,926
Weighted average effect of dilutive share-based compensation (in shares)	672,791			340,044			584,250	221,056
Diluted weighted average number of shares of common stock outstanding (in shares)	9,942,602			9,427,509			9,808,426	9,290,982
Net income per common share:
Net income per common share - Basic (in dollars per share)	$ 1.19			$ 0.21			$ 2.61	$ 0.26
Net income per common share - Diluted (in dollars per share)	$ 1.11			$ 0.2			$ 2.45	$ 0.25

Note 3 - Revenue Recognition (D

Note 3 - Revenue Recognition (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023	Dec. 31, 2023
Accounts Receivable [Member]
Contract with Customer, Asset, after Allowance for Credit Loss	$ 3.8		$ 3.8		$ 2
Transferred over Time [Member]
Revenue from Contract with Customer, Including Assessed Tax	$ 3.4	$ 3.2	$ 8.5	$ 7.3

Note 3 - Revenue Recognition -

Note 3 - Revenue Recognition - Disaggregation of Revenue (Details) - USD ($) $ in Thousands		3 Months Ended		9 Months Ended
		Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Net sales		$ 87,250	$ 71,283	$ 247,646	$ 206,163
Specialty Alloys [Member]
Net sales		63,165	53,092	181,003	155,588
Premium Alloys [Member]
Net sales	[1]	23,682	16,476	64,490	46,998
Conversion Services and Other Sales [Member]
Net sales		$ 403	$ 1,715	$ 2,153	$ 3,577
[1]Premium alloys represent all vacuum induction melted (VIM) products.

Note 4 - Inventory (Details Tex

Note 4 - Inventory (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Inventory Amortization Expense	$ 0.5	$ 0.4	$ 1.4	$ 1.3

Note 4 - Inventory - Schedule o

Note 4 - Inventory - Schedule of Inventory (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Raw materials and starting stock	$ 18,876	$ 15,124
Semi-finished and finished steel products	109,034	117,039
Operating materials	21,284	15,967
Gross inventory	149,194	148,130
Inventory reserves	(2,265)	(3,430)
Total inventory	$ 146,929	$ 144,700

Note 5 - Leases (Details Textua

Note 5 - Leases (Details Textual) $ in Thousands	3 Months Ended	9 Months Ended
	Sep. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023	Jun. 30, 2024	Dec. 31, 2023 USD ($)	Dec. 31, 2022 USD ($)
Lessee, Finance Lease, Term of Contract (Year)						72 months
Number of New Finance Leases		1	1
Operating Lease, Right-of-Use Asset	$ 100	$ 100			$ 200
Finance Lease, Right-of-Use Asset, after Accumulated Amortization	5,500	5,500			$ 6,500
Finance Lease, Right-of-Use Asset, Amortization	200	600
Finance Lease, Liability, Undiscounted Excess Amount	$ 1,216	$ 1,216
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	6 years
Minimum [Member]
Lessee, Finance Lease, Term of Contract (Year)	3 years	3 years

Note 5 - Leases - Future Minimu

Note 5 - Leases - Future Minimum Lease Payments (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Remainder of 2024, operating leases	$ 19
Remainder of 2024, finance leases	488
2025, operating leases	29
2025, finance leases	1,841
2026, operating leases	21
2026, finance leases	1,714
2027, operating leases	2
2027, finance leases	1,570
2028, operating leases	0
2028, finance leases	1,114
Total minimum lease payments, operating leases	71
Total minimum lease payments, finance leases	6,727
Less amounts representing interest, operating leases	(1)
Less amounts representing interest, finance leases	(1,216)
Present value of minimum lease payments, operating leases	70
Present value of minimum lease payments, finance leases	5,511	$ 6,508
Less current obligations, operating leases	(41)
Less current obligations, finance leases	(1,385)
Total long-term lease obligations, net, operating leases	29
Total long-term lease obligations, net, finance leases	$ 4,126
Weighted-average remaining lease term (in years), operating leases (Year)	1 year 9 months 18 days
Weighted-average remaining lease term (in years), finance leases (Year)	3 years 6 months

Note 6 - Long-term Debt (Detail

Note 6 - Long-term Debt (Details Textual) $ in Thousands		3 Months Ended	9 Months Ended
	Mar. 17, 2021 USD ($)	Jun. 30, 2024 USD ($)	Sep. 30, 2024 USD ($)	Sep. 30, 2023 USD ($)	Dec. 31, 2023 USD ($)
Debt Issuance Costs, Net			$ 356		$ 1,095
PNC Capital Markets LLC [Member]
Debt Issuance Costs, Net			400
Amortization of Debt Issuance Costs		$ 100	$ 200	$ 200
PNC Capital Markets LLC [Member] | Term Loan [Member]
Debt Instrument, Face Amount	$ 15,000
Debt Instrument, Periodic Payment	500
Debt Instrument, Interest Rate, Effective Percentage			7.50%
Revolving Credit Facility [Member] | PNC Capital Markets LLC [Member]
Line of Credit Facility, Maximum Borrowing Capacity	105,000
Line of Credit Facility, Remaining Borrowing Capacity			$ 50,300
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%
Debt Instrument, Interest Rate, Effective Percentage			7%

Note 6 - Long-term Debt - Sched

Note 6 - Long-term Debt - Schedule of Long-term Debt (Details) - USD ($) $ in Thousands	Sep. 30, 2024	Dec. 31, 2023
Sale and leaseback financing liability	$ 1,362	$ 1,539
Present value of minimum lease payments, finance leases	5,511	6,508
Total debt	69,618	86,674
Less: current portion of long-term debt	(3,795)	(3,733)
Less: deferred financing costs	(356)	(1,095)
Long-term debt, net	65,467	81,846
Term Loan [Member]
Debt, carrying amount	8,036	9,643
Revolving Credit Facility [Member]
Debt, carrying amount	$ 54,709	$ 68,984

Note 7 - New Markets Tax Cred_2

Note 7 - New Markets Tax Credit Financing Transaction (Details Textual) - USD ($)		1 Months Ended
	Mar. 09, 2018	Sep. 30, 2024	Dec. 31, 2023
Debt Issuance Costs, Net		$ 356,000	$ 1,095,000
Other Liabilities, Noncurrent		28,000	$ 2,891,000
New Markets Tax Credit Financing Program [Member]
Financing Receivable, after Allowance for Credit Loss	$ 6,700,000
Recapture Percentage	100%
Recapture Period (Year)	7 years
Debt Issuance Costs, Net		700,000
Other Liabilities, Noncurrent		2,800,000
Repurchase of Interest		1,000
Gain (Loss) on Extinguishment of Debt		$ 2,800,000
New Markets Tax Credit Financing Program [Member] | PNC Capital Markets LLC [Member]
Financing Receivable, after Allowance for Credit Loss	$ 3,500,000

Note 10 - Income Taxes (Details

Note 10 - Income Taxes (Details Textual) - USD ($) $ in Millions	3 Months Ended		9 Months Ended
	Sep. 30, 2024	Sep. 30, 2023	Sep. 30, 2024	Sep. 30, 2023
Effective Income Tax Rate Reconciliation, Percent			19.90%	11.90%
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent			21%
Effective Income Tax Rate Reconciliation, Nondeductible Expense, Share-Based Payment Arrangement, Amount	$ 0.2		$ 0.3	$ 0.1
Effective Income Tax Rate Reconciliation, Percent, Discrete Items	18%	13.50%	18.70%	15.30%

Note 11 - Derivatives and Hed_2

Note 11 - Derivatives and Hedging (Details Textual) - USD ($) $ in Millions	9 Months Ended	12 Months Ended
	Sep. 30, 2024	Dec. 31, 2023	Mar. 31, 2023
Foreign Exchange Forward [Member] | Designated as Hedging Instrument [Member]
Derivative, Notional Amount	$ 4.7	$ 4.8
Other Comprehensive Income (Loss), Derivative, Excluded Component, Increase (Decrease), after Adjustments and Tax	$ 0.2	$ 0.1
Interest Rate Swap [Member] | Cash Flow Hedging [Member]
Derivative, Notional Amount			$ 5

Note 13 - Subsequent Events (De

Note 13 - Subsequent Events (Details Textual) $ in Millions	Oct. 17, 2024 USD ($)
Merger Agreement [Member] | Subsequent Event [Member]
Business Acquisition, Transaction Costs	$ 0.6