Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2022 | Oct. 24, 2022 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2022 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q3 | |
Entity Registrant Name | UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. | |
Entity Central Index Key | 0000931584 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 8,977,953 | |
Entity Shell Company | false | |
Entity File Number | 001-39467 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 25-1724540 | |
Entity Address, Address Line One | 600 Mayer Street | |
Entity Address, City or Town | Bridgeville | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 15017 | |
City Area Code | 412 | |
Local Phone Number | 257-7600 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock | ||
Document Information [Line Items] | ||
Trading Symbol | USAP | |
Title of 12(b) Security | Common Stock, par value $0.001 per share | |
Security Exchange Name | NASDAQ | |
Preferrerd Stock | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Preferred Stock Purchase Rights | |
Security Exchange Name | NASDAQ | |
No Trading Symbol Flag | true |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Income Statement [Abstract] | ||||
Net sales | $ 46,196 | $ 37,169 | $ 145,914 | $ 112,709 |
Cost of products sold | 43,218 | 34,862 | 134,144 | 108,486 |
Gross margin | 2,978 | 2,307 | 11,770 | 4,223 |
Selling, general and administrative expenses | 5,279 | 5,010 | 15,605 | 15,392 |
Operating loss | (2,301) | (2,703) | (3,835) | (11,169) |
Interest expense and other financing costs | 1,221 | 539 | 2,800 | 1,581 |
Gain on extinguishment of debt | (10,000) | (10,000) | ||
Other (income) expense, net | (599) | 9 | (625) | 32 |
(Loss) income before income taxes | (2,923) | 6,749 | (6,010) | (2,782) |
Income taxes | (1,626) | (1,141) | (1,661) | (3,650) |
Net (loss) income | $ (1,297) | $ 7,890 | $ (4,349) | $ 868 |
Net (loss) income per common share - Basic | $ (0.14) | $ 0.88 | $ (0.49) | $ 0.10 |
Net (loss) income per common share - Diluted | $ (0.14) | $ 0.87 | $ (0.49) | $ 0.10 |
Weighted average shares of common stock outstanding | ||||
Basic | 8,975,331 | 8,917,858 | 8,960,830 | 8,902,484 |
Diluted | 8,975,331 | 9,082,371 | 8,960,830 | 9,050,847 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (1,297) | $ 7,890 | $ (4,349) | $ 868 |
Other comprehensive income, net of tax | ||||
Unrealized gain on derivatives | 159 | 26 | 455 | 46 |
Comprehensive (loss) income | $ (1,138) | $ 7,916 | $ (3,894) | $ 914 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Current assets: | ||
Cash | $ 66 | $ 118 |
Accounts receivable (less allowance for doubtful accounts of $201 and $201, respectively) | 23,130 | 21,192 |
Inventory, net | 158,867 | 140,684 |
Other current assets | 10,231 | 8,567 |
Total current assets | 192,294 | 170,561 |
Property, plant and equipment, net | 159,519 | 159,162 |
Other long-term assets | 860 | 909 |
Total assets | 352,673 | 330,632 |
Current liabilities: | ||
Accounts payable | 33,334 | 24,000 |
Accrued employment costs | 3,968 | 4,303 |
Current portion of long-term debt | 2,392 | 2,392 |
Other current liabilities | 1,219 | 943 |
Total current liabilities | 40,913 | 31,638 |
Long-term debt, net | 84,193 | 66,852 |
Deferred income taxes | 911 | 2,461 |
Other long-term liabilities, net | 3,206 | 3,360 |
Total liabilities | 129,223 | 104,311 |
Stockholders’ equity: | ||
Senior preferred stock, par value $0.001 per share; 1,980,000 shares authorized; zero shares issued and outstanding | ||
Common stock, par value $0.001 per share; 20,000,000 shares authorized; 8,975,331 and 8,938,091 shares issued, respectively | 9 | 9 |
Additional paid-in capital | 96,653 | 95,590 |
Accumulated other comprehensive income | 455 | 40 |
Retained earnings | 126,333 | 130,682 |
Total stockholders’ equity | 223,450 | 226,321 |
Total liabilities and stockholders’ equity | $ 352,673 | $ 330,632 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Statement Of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 201 | $ 201 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 1,980,000 | 1,980,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 8,975,331 | 8,938,091 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flow - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Operating Activities: | ||
Net (loss) income | $ (4,349) | $ 868 |
Adjustments for non-cash items: | ||
Depreciation and amortization | 14,520 | 14,419 |
Gain on extinguishment of debt | (10,000) | |
Deferred income tax | (1,675) | (3,646) |
Share-based compensation expense | 1,001 | 833 |
Changes in assets and liabilities: | ||
Accounts receivable, net | (1,938) | (1,611) |
Inventory, net | (19,342) | (25,500) |
Accounts payable | 7,255 | 16,525 |
Accrued employment costs | (335) | 2,955 |
Income taxes | 21 | 5 |
Other | (1,470) | 281 |
Net cash used in operating activities | (6,312) | (4,871) |
Investing Activity: | ||
Capital expenditures | (10,974) | (6,514) |
Net cash used in investing activity | (10,974) | (6,514) |
Financing Activities: | ||
Borrowings under revolving credit facility | 102,098 | 89,070 |
Payments on revolving credit facility | (83,260) | (69,804) |
Proceeds from term loan facility | 8,571 | |
Payments on term loan facility, finance leases, and notes | (1,666) | (16,116) |
Issuance of common stock under share-based plans | 62 | 118 |
Payments of financing costs | (539) | |
Net cash provided by financing activities | 17,234 | 11,300 |
Net decrease in cash | (52) | (85) |
Cash at beginning of period | 118 | 164 |
Cash at end of period | $ 66 | $ 79 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income(Loss) [Member] |
Beginning Balance at Dec. 31, 2020 | $ 9 | $ 94,276 | $ 131,440 | $ (45) | |
Beginning Balance (shares) at Dec. 31, 2020 | 8,883,788 | ||||
Share-based compensation | 309 | ||||
Share-based compensation (shares) | 11,034 | ||||
Net gain on derivative instruments | 15 | ||||
Net (loss) income | (4,529) | ||||
Ending Balance at Mar. 31, 2021 | $ 9 | 94,585 | 126,911 | (30) | |
Ending Balance (shares) at Mar. 31, 2021 | 8,894,822 | ||||
Beginning Balance at Dec. 31, 2020 | $ 9 | 94,276 | 131,440 | (45) | |
Beginning Balance (shares) at Dec. 31, 2020 | 8,883,788 | ||||
Net (loss) income | $ 868 | ||||
Ending Balance at Sep. 30, 2021 | $ 9 | 95,227 | 132,308 | 1 | |
Ending Balance (shares) at Sep. 30, 2021 | 8,917,858 | ||||
Beginning Balance at Mar. 31, 2021 | $ 9 | 94,585 | 126,911 | (30) | |
Beginning Balance (shares) at Mar. 31, 2021 | 8,894,822 | ||||
Common stock issuance under Employee Stock Purchase Plan | 71 | ||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 11,271 | ||||
Other share-based plans | 47 | ||||
Other share-based plans (Shares) | 5,272 | ||||
Share-based compensation | 272 | ||||
Share-based compensation (shares) | 6,493 | ||||
Net gain on derivative instruments | 5 | ||||
Net (loss) income | (2,493) | ||||
Ending Balance at Jun. 30, 2021 | $ 9 | 94,975 | 124,418 | (25) | |
Ending Balance (shares) at Jun. 30, 2021 | 8,917,858 | ||||
Share-based compensation | 252 | ||||
Net gain on derivative instruments | 26 | ||||
Net (loss) income | 7,890 | 7,890 | |||
Ending Balance at Sep. 30, 2021 | $ 9 | 95,227 | 132,308 | 1 | |
Ending Balance (shares) at Sep. 30, 2021 | 8,917,858 | ||||
Beginning Balance at Dec. 31, 2021 | 226,321 | $ 9 | 95,590 | 130,682 | 40 |
Beginning Balance (shares) at Dec. 31, 2021 | 8,938,091 | ||||
Share-based compensation | 409 | ||||
Share-based compensation (shares) | 19,362 | ||||
Net gain on derivative instruments | 135 | ||||
Net (loss) income | (1,615) | ||||
Ending Balance at Mar. 31, 2022 | $ 9 | 95,999 | 129,067 | 175 | |
Ending Balance (shares) at Mar. 31, 2022 | 8,957,453 | ||||
Beginning Balance at Dec. 31, 2021 | 226,321 | $ 9 | 95,590 | 130,682 | 40 |
Beginning Balance (shares) at Dec. 31, 2021 | 8,938,091 | ||||
Net (loss) income | (4,349) | ||||
Ending Balance at Sep. 30, 2022 | 223,450 | $ 9 | 96,653 | 126,333 | 455 |
Ending Balance (shares) at Sep. 30, 2022 | 8,975,331 | ||||
Beginning Balance at Mar. 31, 2022 | $ 9 | 95,999 | 129,067 | 175 | |
Beginning Balance (shares) at Mar. 31, 2022 | 8,957,453 | ||||
Common stock issuance under Employee Stock Purchase Plan | 62 | ||||
Common stock issuance under Employee Stock Purchase Plan (shares) | 9,870 | ||||
Share-based compensation | 286 | ||||
Share-based compensation (shares) | 8,008 | ||||
Net gain on derivative instruments | 121 | ||||
Net (loss) income | (1,437) | ||||
Ending Balance at Jun. 30, 2022 | $ 9 | 96,347 | 127,630 | 296 | |
Ending Balance (shares) at Jun. 30, 2022 | 8,975,331 | ||||
Share-based compensation | 306 | ||||
Net gain on derivative instruments | 159 | ||||
Net (loss) income | (1,297) | (1,297) | |||
Ending Balance at Sep. 30, 2022 | $ 223,450 | $ 9 | $ 96,653 | $ 126,333 | $ 455 |
Ending Balance (shares) at Sep. 30, 2022 | 8,975,331 |
Nature of Business and Basis of
Nature of Business and Basis of Presentation | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Nature of Business and Basis of Presentation | Note 1: Nature of Business and Basis of Presentation 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-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. GAAP have been condensed or omitted pursuant to such regulations. Although the December 31, 2021 consolidated balance sheet data was derived from the audited financial statements, it does not include all disclosures required by U.S. GAAP. However, we believe that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our most recently audited financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary to present a fair presentation of the consolidated financial statements for the periods shown. Interim results are not necessarily indicative of the operating results for the full fiscal year or any future period. The preparation of these financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results may differ from our estimates. The consolidated financial statements include our accounts and the accounts of our wholly–owned subsidiaries. We also consolidate, regardless of our ownership percentage, variable interest entities (each a “VIE”) for which we are deemed to have a controlling financial interest. All intercompany transactions and balances have been eliminated. 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, New Markets Tax Credit Financing Transaction, for a description of the VIEs included in our consolidated financial statements. Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (ASUs.) Recently issued ASUs not listed were assessed and were determined not applicable, or are expected to have minimal impact on our consolidated financial statements . |
Net (Loss) Income Per Common Sh
Net (Loss) Income Per Common Share | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Net (Loss) Income Per Common Share | Note 2: Net (loss) income per Common Share The following table sets forth the computation of basic and diluted net (loss) income per common share: Three months ended Nine months ended September 30, September 30, (dollars in thousands, except per share amounts) 2022 2021 2022 2021 Numerator: Net (loss) income $ (1,297 ) $ 7,890 $ (4,349 ) $ 868 Denominator: Weighted average number of shares of common stock outstanding 8,975,331 8,917,858 8,960,830 8,902,484 Weighted average effect of dilutive share-based compensation - 164,513 - 148,363 Diluted weighted average number of shares of common stock outstanding 8,975,331 9,082,371 8,960,830 9,050,847 Net loss per common share: Net (loss) income per common share - Basic $ (0.14 ) $ 0.88 $ (0.49 ) $ 0.10 Net (loss) income per common share - Diluted $ (0.14 ) $ 0.87 $ (0.49 ) $ 0.10 We had options to purchase 719,875 and 680,550 shares of common stock outstanding at a weighted average price of $18.48 and $22.15 for the three months ended September 30, 2022 and 2021, respectively, which were excluded in the computation of diluted net (loss) income per common share. We had options to purchase 716,375 In addition, the calculation of diluted net loss per share for the three and nine months ended September 30, 2022, respectively, excluded 14,919 and 20,119 shares for the assumed exercise of stock options as a result of being in a net loss position. |
Revenue Recognition
Revenue Recognition | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | Note 3: Revenue Recognition The Company’s revenues are primarily comprised of sales of products. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product. A performance obligation is a promise in a contract to transfer a distinct product to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes are excluded from revenues. Invoiced shipping and handling costs are included in revenue. The Company’s revenue is primarily from products transferred to customers at a point in time. The Company recognizes revenue at the point in time in which the customer obtains control of the product, which is generally when product title passes to the customer upon shipment. We have determined that there are certain customer agreements involving production of specified product grades and shapes that require revenue to be recognized over time, in advance of shipment, due to there being no alternative use for these grades and shapes without significant economic loss. Also, the Company maintains an enforceable right to payment including a normal profit margin from the customer in the event of contract termination. Contract assets related to services performed and not yet billed of $1.7 million and $2.2 million are included in Accounts Receivable in the Consolidated Balance Sheets at September 30, 2022 and December 31, 2021, respectively. The Company has elected the following practical expedients allowed under Accounting Standard Codification (“ASC”) 606: • Shipping costs are not considered to be separate performance obligations. • Performance obligations are satisfied within one year from a given reporting date; consequently, we omit disclosure of the transaction price apportioned to remaining performance obligations on open orders. The following summarizes our revenue by melt type: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net sales: Specialty alloys $ 37,308 $ 30,973 $ 118,352 $ 92,359 Premium alloys (A) 7,986 5,936 25,707 19,383 Conversion services and other sales 902 260 1,855 967 Total net sales $ 46,196 37,169 $ 145,914 112,709 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Inventory
Inventory | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Inventory | Note 4: Inventory 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 months ended September 30, 2022 and 2021, we amortized these operating materials in the amount of $1.2 million and $1.3 million, respectively. This expense is recorded as a component of cost of products sold on the consolidated statements of operations and included as a part of our total depreciation and amortization on the consolidated statements of cash flows. 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. Due to low activity levels at our production facilities caused by the COVID-19 pandemic, management revised its accounting estimates for the absorption of costs into inventory during 2020. As a result, $1.5 million of fixed overhead costs were not absorbed into inventory and were charged directly to expense and $1.5 million of negative operating efficiency variances were incurred during the three months ended September 30, 2021. There has not been any charge in the current year related to overall activity levels; however, the Company experienced a liquid metal spill at our Bridgeville plant during April 2022. The consolidated statement of operations for the three months ended June 30, 2022 included $3.6 million of net expense related to the liquid metal spill, of which $1.3 million represents fixed overhead costs charged directly to expense due to the impact of the spill on our activity levels. The $3.6 million of expense is net of a $1.5 million insurance recovery received during the period. There were no direct charges of fixed overheads to the consolidated statement of operations for the three months ended March 31, 2022 or September 30, 2022. Inventories consisted of the following: September 30, December 31, (in thousands) 2022 2021 Raw materials and starting stock $ 18,888 $ 12,263 Semi-finished and finished steel products 129,733 122,396 Operating materials 13,660 10,620 Gross inventory 162,281 145,279 Inventory reserves (3,414) (4,595) Total inventory, net $ 158,867 $ 140,684 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Leases | Note 5: Leases The Company periodically enters into leases in its normal course of business. At September 30, 2022, the leases in effect were primarily related to mobile and other production equipment. The term of our leases is generally 60 months or less, and the leases do not have significant restrictions, covenants, or other nonstandard terms. Right-of-use assets and lease liabilities are recorded at the present value of minimum lease payments. For our operating leases, the assets are included in Other long-term assets on the consolidated balance sheets and are amortized within operating income over the respective lease terms. The long-term component of the lease liability is included in Other long-term liabilities, net, and the current component is included in Other current liabilities. For our finance leases, the assets are included in Property, plant and equipment, net on the consolidated balance sheets and are depreciated over the respective lease terms which range from three to five years. The long-term component of the lease liability is included in Long-term debt and the current component is included in Current portion of long-term debt. The Company entered into one new operating lease and one new finance lease agreement during the third quarter of 2022. As of September 30, 2022, future minimum lease payments applicable to operating and finance leases were as follows: Operating Leases Finance Leases 2022 $ 87 $ 78 2023 266 280 2024 170 265 2025 36 155 2026 & 2027 23 20 Total minimum lease payments 582 798 Less amounts representing interest (18) (73) Present value of minimum lease payments 564 725 Less current obligations (294) (250) Total long-term lease obligations, net $ 270 $ 475 Weighted-average remaining lease term 2.3 years 2.7 years Right-of-use assets recorded to the consolidated balance sheet at September 30, 2022 were $0.6 million for operating leases and $0.8 million for finance leases. For the nine months ended September 30, 2022, the amortization of finance lease assets was $0.2 million and was included in cost of products sold in the Consolidated Statements of Operations. The Company applies the practical expedient allowed under Leases (Topic 842) to exclude leases with a term of 12 months or less from the calculation of our lease liabilities and right-of-use assets. In determining the lease liability and corresponding right-of-use asset for each lease, the Company calculated the present value of future lease payments using the interest rate implicit in the lease, when available, or the Company’s incremental borrowing rate. The incremental borrowing rate was determined with reference to the interest rate applicable under revolving credit facility discussed in Note 6, Long-Term Debt, as this facility is collateralized by a first lien on substantially all of the assets of the Company and its term is similar to the term of our leases. |
Long-Term Debt
Long-Term Debt | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 6: Long-Term Debt Long-term debt consisted of the following: September 30, December 31, (in thousands) 2022 2021 Revolving credit facility $ 74,835 $ 55,997 Term loan 12,321 13,929 Finance leases 725 783 Total debt 87,881 70,709 Less: current portion of long-term debt (2,392) (2,392) Less: deferred financing costs (1,296) (1,465) Long-term debt, net $ 84,193 $ 66,852 Credit Facility On March 17, 2021, we entered into the Second Amended and Restated Revolving Credit, Term Loan and Security Agreement (the “Credit Agreement”), with PNC Bank, National Association, as administrative agent and co-collateral agent (the “Agent”), Bank of America, N.A., as co-collateral agent (“Bank of America”), the Lenders (as defined in the Credit Agreement) party thereto from time to time and PNC Capital Markets LLC, as sole lead arranger and sole bookrunner. The Credit Agreement provides for a senior secured revolving credit facility in an aggregate principal amount not to exceed $105.0 million (“Revolving Credit Facility”) and a senior secured term loan facility (“Term Loan”) in the amount of $15.0 million (together with the Revolving Credit Facility, the “Facilities”). The Company was in compliance with all the applicable financial covenants on December 31, 2021 and September 30, 2022. The Facilities, which expire on March 17, 2026 (the ‘Expiration Date”), are collateralized by a first lien on substantially all of the assets of the company and its subsidiaries, except that no real property is collateral under the Facilities other than Company’s real property in North Jackson, Ohio. Availability under the Credit Agreement is based on eligible accounts receivable and inventory. The Company must maintain undrawn availability under the Credit Agreement of at least $11.0 million. That requirement can be overcome if the Company maintains a fixed charge coverage ratio of not less than 1.10 to 1.0 measured on a rolling two-quarter basis and calculated in accordance with the terms of the Credit Agreement. The Company is required to pay a commitment fee of 0.25 % based on the daily unused portion of the Revolving Credit Facility . With respect to the Term Loan, the Company pays quarterly installments of the principal of approximately $0.5 million, plus accrued and unpaid interest, on the first day of each fiscal quarter beginning after June 30, 2021. To the extent not previously paid, the Term Loan will become due and payable in full on the Expiration Date. As of September 30, 2022, amounts outstanding under the Facilities, at the Company’s option, bore interest at either a base rate or a LIBOR based rate, in either case calculated in accordance with the terms of the Credit Agreement. Interest under the Credit Agreement is payable monthly. We elected to use the LIBOR based rate for the majority of the debt outstanding under the Facilities for the nine months ended September 30, 2022, which ranged between 5.00% and 7.75% for our Revolving Credit Facility and was 5.69% for the Term Loan. We incurred $0.5 million in additional financing costs in conjunction with the execution of the Credit Agreement, which were recorded to the consolidated balance sheet at June 30, 2021 and will be amortized to interest expense over the life of the Credit Agreement. At September 30, 2022, we had total Credit Agreement related net deferred financing costs of approximately $1.3 million. For the nine months ended September 30, 2022, we amortized $0.2 million of those deferred financing costs. Paycheck Protection Program Term Note On April 16, 2020, the Company entered into a promissory note, dated April 15, 2020, with PNC Bank, National Association, evidencing an unsecured loan with a principal amount of $10.0 million made to the Company pursuant to the Paycheck Protection Program (the “PPP Term Note”) under the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”). The PPP Term Note is guaranteed by the United States Small Business Administration. The proceeds could be used to maintain payroll or make certain covered interest payments, lease payments and utility payments. Under the terms of the CARES Act, the Company was eligible for forgiveness for all or a portion of loan granted under the PPP, with such forgiveness to be determined, subject to limitations, based on the use of the loan proceeds for payment of payroll costs and any payments of certain covered interest, lease and utility payments. The PPP Term Note incurred interest at a fixed annual rate of 1.00%, with the first six months of interest deferred. According to the terms of the PPP Term Note, the Company would begin to make 18 equal monthly payments of principal and interest in November 2020 with the final payment due in April 2022. The Company did not make any principal or interest payments related to the PPP Term Note. The Company applied for forgiveness of the PPP Term Note during the third quarter of 2020. In July 2021, PNC Bank notified the Company that forgiveness of the note was granted by the United States Small Business Administration. Accordingly, the PPP Term Note was forgiven in its entirety, including all related accrued interest. In the third quarter of 2021, we recognized forgiveness of the PPP Term Note and recorded a corresponding gain on extinguishment of debt in the Consolidated Statement of Operations for the period. Notes In connection with the acquisition of the North Jackson facility in 2011, we issued $20.0 million in convertible notes to the sellers of the facility as partial consideration in the transaction, which were retired in 2021. On January 21, 2016, the Company entered into the amended and restated notes in the aggregate principal amount of $20.0 million (the “Notes”), each in favor of Gorbert Inc. (“Holder”). The Company’s obligations under the Notes were collateralized by a second lien on the same assets of the Company that collateralize the obligations of the Company under the Facilities. The Holder had the right to elect at any time on or prior to August 17, 2017 to convert all or any portion of the outstanding principal amount of the Notes. The Notes were originally scheduled to mature on March 17, 2019. In 2019, the Company extended the maturity date to March 17, 2020 in accordance with the terms of the Notes. In 2020, the Company extended the maturity date to March 17, 2021 in accordance with the terms of the Notes. The Company made partial principal payments on the notes upon extension, and an aggregate principal amount of $15.0 million remained outstanding at the 2021 maturity date. On March 17, 2021, the Company paid the remaining principal balance and all applicable interest to settle the notes obligation. The Notes had an applicable interest at a rate of 6.0% per year from August 17, 2017 until the time they were paid off. All accrued and unpaid interest was payable quarterly in arrears on September 18, December 18, March 18 and June 18 of each year. |
New Markets Tax Credit Financin
New Markets Tax Credit Financing Transaction | 9 Months Ended |
Sep. 30, 2022 | |
New Markets Tax Credit Financing Transaction Disclosure [Abstract] | |
New Markets Tax Credit Financing Transaction | Note 7: New Markets Tax Credit Financing Transaction On March 9, 2018, the Company entered into a qualified New Markets Tax Credit (“NMTC”) financing program with PNC New Markets Investment Partners, LLC and Boston Community Capital, Inc. related to a new mid-size bar cell capital project at the Company’s Dunkirk, NY facility. PNC New Markets Investment Partners, LLC made a capital contribution and the Company made a loan to Dunkirk Investment Fund, LLC (“Investment Fund”) under the qualified NMTC program. Through this financing transaction, the Company secured low interest financing and the potential for other future benefits related to its mid-size bar cell capital project. In connection with the NMTC financing program, the Company loaned $6.7 million aggregate principal amount (“Leverage Loan”) due in March 2048, to the Investment Fund. Additionally, PNC New Markets Investment Partners, LLC contributed $3.5 million to the Investment Fund, and as such, PNC New Markets Investment Partners, LLC is entitled to substantially all tax and other benefits derived from the NMTC. The Investment Fund then contributed the proceeds to a community development entity (“CDE”). The CDE then loaned the funds, on similar terms, as the Leverage Loan to Dunkirk Specialty Steel, LLC, a wholly-owned subsidiary of the Company. The CDE loan proceeds are restricted for use on the mid-size bar cell capital project. The NMTC is subject to 100 percent recapture for a period of seven years as provided in the Internal Revenue Code. The Company is required to comply with various regulations and contractual provisions that apply to the NMTC arrangement. Non-compliance with applicable requirements could result in projected tax benefits not being realized and, therefore, require the Company to indemnify PNC New Markets Investment Partners, LLC for any loss or recapture of NMTCs related to the financing until the Company’s obligation to deliver tax benefits is relieved. The Company does not anticipate any credit recaptures will be required in connection with this arrangement . As of September 30, 2022 and December 31, 2021, the Company recorded $2.8 million within Other long-term liabilities related to this transaction, which represents the funds contributed to the Investment Fund by PNC New Markets Investment Partners, LLC. This transaction also includes a put/call provision whereby the Company may be obligated or entitled to repurchase PNC New Markets Investment Partners, LLC’s interest in the Investment Fund. The Company believes that PNC New Markets Investment Partners, LLC will exercise the put option in March 2025, at the end of the recapture period, resulting in a gain of $2.8 million at that time. The value attributed to the put/call is negligible. Direct costs incurred in structuring this financing transaction totaled $0.7 million. These costs were deferred and are amortized over the term of the loans. The Company has determined that the Investment Fund and CDE are each a variable interest entity (“VIE”), and that it is the primary beneficiary of each VIE. This conclusion was reached based on the following: • The ongoing activities of the VIE, collecting and remitting interest and fees, and NMTC compliance were all considered in the initial design and are not expected to significantly affect economic performance throughout the life of the VIE; • Contractual arrangements obligate the Company to comply with NMTC rules and regulations and provide various other guarantees to the Investment Fund and CDE; • PNC New Markets Investment Partners, LLC lacks a material interest in the underlying economics of the project; and • The Company is obligated to absorb losses of the VIE. Because the Company is the primary beneficiary of each VIE, these entities have been included in the Company’s consolidated financial statements. |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 8: Fair Value Measurement The fair value hierarchy has three levels based on the inputs used to determine fair value, which are as follows: Level 1 — Unadjusted quoted prices available in active markets for the identical assets or liabilities at the measurement date. Level 2 — Unadjusted quoted prices in active markets for similar assets or liabilities, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. Level 3 — Unobservable inputs that cannot be corroborated by observable market data and reflect the use of significant management judgment. These values are generally determined using pricing models for which the assumptions utilize management’s estimates of market participant assumptions. The fair value hierarchy requires the use of observable market data when available. In instances where the inputs used to measure fair value fall into different levels of the fair value hierarchy, the fair value measurement has been determined based on the lowest level input significant to the fair value measurement in its entirety. Our assessment of the significance of a particular item to the fair value measurement in its entirety requires judgment, including the consideration of inputs specific to the asset or liability. The carrying amounts of our cash, accounts receivable and accounts payable approximated fair value at September 30, 2022 and December 31, 2021 due to their short-term maturities (Level 1). The fair value of the Term Loan and Revolving Credit Facility at September 30, 2022 and December 31, 2021 approximated the carrying amount as the interest rate is based upon floating short-term interest rates (Level 2). |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2022 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 9: Commitments and Contingencies From time to time, various lawsuits and claims have been or may be asserted against us relating to the conduct of our business, including routine litigation relating to commercial and employment matters. The ultimate cost and outcome of any litigation or claim cannot be predicted with certainty. Management believes, based on information presently available, that the likelihood that the ultimate outcome of any such pending matter will have a material adverse effect on our financial condition, or liquidity or a material impact on our results of operations is remote, although the resolution of one or more of these matters may have a material adverse effect on our results of operations for the period in which the resolution occurs. |
Income Taxes
Income Taxes | 9 Months Ended |
Sep. 30, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 10: Income Taxes Management estimates the annual effective income tax rate quarterly, based on current annual forecasted 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 months ended September 30, 2022 and 2021, our estimated annual effective tax rates applied to ordinary income were 30.9% and 136.9%, respectively. The difference between the federal statutory rate of 21.0% and the projected annual ETR in the current year is primarily due to research and development credits. The difference between the federal statutory rate and the estimated annual effective tax rate in 2021 is primarily due to the non-taxable gain on extinguishment of debt recorded in 2021 based on forgiveness of the PPP loan. Discrete items during the nine months ended September 30, 2022 totaled approximately $0.2 million of expense primarily from the expiration of stock options, and the ETR for the first nine months of the year was 27.8 |
Derivatives and Hedging
Derivatives and Hedging | 9 Months Ended |
Sep. 30, 2022 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Hedging | Note 11: Derivatives and Hedging The Company invoices certain customers in foreign currencies. In order to mitigate the risks associated with fluctuations in exchange rates with the 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 $3.7 million and $2.5 million at September 30, 2022 and December 31, 2021, respectively, and a related unrealized gain of $0.2 million was recorded in accumulated other comprehensive income at each date. Additionally, the Company entered into a forward interest rate swap contract during 2020 to fix the interest rate on a portion of its variable-rate debt from January 1, 2021 to June 30, 2023. The forward interest rate swap was designated as a cash flow hedge. The notional amount of the contract at its inception and December 31, 2021 was $16 million and steps down throughout the term. The notional amount of the contract at September 30, |
Nature of Business and Basis _2
Nature of Business and Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | 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-Q and Rule 10-01 of Regulation S-X. Accordingly, certain information and footnote disclosures normally included in financial statements prepared under U.S. GAAP have been condensed or omitted pursuant to such regulations. Although the December 31, 2021 consolidated balance sheet data was derived from the audited financial statements, it does not include all disclosures required by U.S. GAAP. However, we believe that the disclosures are adequate to make the information presented not misleading. These consolidated financial statements should be read in conjunction with our most recently audited financial statements and the notes thereto included in our Annual Report on Form 10-K as filed with the Securities and Exchange Commission. In the opinion of management, the accompanying financial statements include all adjustments necessary to present a fair presentation of the consolidated financial statements for the periods shown. Interim results are not necessarily indicative of the operating results for the full fiscal year or any future period. The preparation of these financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenues and expenses, and disclosure of contingent assets and liabilities. Actual results may differ from our estimates. The consolidated financial statements include our accounts and the accounts of our wholly–owned subsidiaries. We also consolidate, regardless of our ownership percentage, variable interest entities (each a “VIE”) for which we are deemed to have a controlling financial interest. All intercompany transactions and balances have been eliminated. 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, New Markets Tax Credit Financing Transaction, for a description of the VIEs included in our consolidated financial statements. |
New Accounting Pronouncement | Recently Adopted Accounting Pronouncements None. Recently Issued Accounting Pronouncements The Company considers the applicability and impact of all Accounting Standards Updates (ASUs.) Recently issued ASUs not listed were assessed and were determined not applicable, or are expected to have minimal impact on our consolidated financial statements . |
Revenue Recognition (Policies)
Revenue Recognition (Policies) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Revenue Recognition | The Company’s revenues are primarily comprised of sales of products. Revenue is recognized when the Company satisfies its performance obligation under the contract by transferring the promised product to its customer that obtains control of the product. A performance obligation is a promise in a contract to transfer a distinct product to a customer. Most of the Company’s contracts have a single performance obligation, as the promise to transfer products or services is not separately identifiable from other promises in the contract and, therefore, not distinct. Revenue is measured as the amount of consideration the Company expects to receive in exchange for transferring products. As such, revenue is recorded net of returns, allowances, customer discounts, and incentives. Sales and other taxes are excluded from revenues. Invoiced shipping and handling costs are included in revenue. The Company’s revenue is primarily from products transferred to customers at a point in time. The Company recognizes revenue at the point in time in which the customer obtains control of the product, which is generally when product title passes to the customer upon shipment. |
Net (Loss) Income Per Common _2
Net (Loss) Income Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net (Loss) Income Per Common Share | The following table sets forth the computation of basic and diluted net (loss) income per common share: Three months ended Nine months ended September 30, September 30, (dollars in thousands, except per share amounts) 2022 2021 2022 2021 Numerator: Net (loss) income $ (1,297 ) $ 7,890 $ (4,349 ) $ 868 Denominator: Weighted average number of shares of common stock outstanding 8,975,331 8,917,858 8,960,830 8,902,484 Weighted average effect of dilutive share-based compensation - 164,513 - 148,363 Diluted weighted average number of shares of common stock outstanding 8,975,331 9,082,371 8,960,830 9,050,847 Net loss per common share: Net (loss) income per common share - Basic $ (0.14 ) $ 0.88 $ (0.49 ) $ 0.10 Net (loss) income per common share - Diluted $ (0.14 ) $ 0.87 $ (0.49 ) $ 0.10 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Revenue From Contract With Customer [Abstract] | |
Summary of Revenue | The following summarizes our revenue by melt type: Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net sales: Specialty alloys $ 37,308 $ 30,973 $ 118,352 $ 92,359 Premium alloys (A) 7,986 5,936 25,707 19,383 Conversion services and other sales 902 260 1,855 967 Total net sales $ 46,196 37,169 $ 145,914 112,709 (A) Premium alloys represent all vacuum induction melted (VIM) products. |
Inventory (Tables)
Inventory (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Inventory Disclosure [Abstract] | |
Major Classes of Inventory | Inventories consisted of the following: September 30, December 31, (in thousands) 2022 2021 Raw materials and starting stock $ 18,888 $ 12,263 Semi-finished and finished steel products 129,733 122,396 Operating materials 13,660 10,620 Gross inventory 162,281 145,279 Inventory reserves (3,414) (4,595) Total inventory, net $ 158,867 $ 140,684 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Leases [Abstract] | |
Future Minimum Lease Payments Applicable to Operating and Finance Leases | As of September 30, 2022, future minimum lease payments applicable to operating and finance leases were as follows: Operating Leases Finance Leases 2022 $ 87 $ 78 2023 266 280 2024 170 265 2025 36 155 2026 & 2027 23 20 Total minimum lease payments 582 798 Less amounts representing interest (18) (73) Present value of minimum lease payments 564 725 Less current obligations (294) (250) Total long-term lease obligations, net $ 270 $ 475 Weighted-average remaining lease term 2.3 years 2.7 years |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 9 Months Ended |
Sep. 30, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Long-Term Debt | Long-term debt consisted of the following: September 30, December 31, (in thousands) 2022 2021 Revolving credit facility $ 74,835 $ 55,997 Term loan 12,321 13,929 Finance leases 725 783 Total debt 87,881 70,709 Less: current portion of long-term debt (2,392) (2,392) Less: deferred financing costs (1,296) (1,465) Long-term debt, net $ 84,193 $ 66,852 |
Net (Loss) Income Per Common _3
Net (Loss) Income Per Common Share (Computation of Basic and Diluted Net (Loss) Income Per Common Share) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Numerator: | ||||
Net (loss) income | $ (1,297) | $ 7,890 | $ (4,349) | $ 868 |
Denominator: | ||||
Weighted average number of shares of common stock outstanding | 8,975,331 | 8,917,858 | 8,960,830 | 8,902,484 |
Weighted average effect of dilutive share-based compensation | 164,513 | 148,363 | ||
Diluted weighted average number of shares of common stock outstanding | 8,975,331 | 9,082,371 | 8,960,830 | 9,050,847 |
Net loss per common share: | ||||
Net (loss) income per common share - Basic | $ (0.14) | $ 0.88 | $ (0.49) | $ 0.10 |
Net (loss) income per common share - Diluted | $ (0.14) | $ 0.87 | $ (0.49) | $ 0.10 |
Net (Loss) Income Per Common _4
Net (Loss) Income Per Common Share (Narrative) (Details) - Stock Compensation Plan [Member] - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | ||||
Antidilutive securities excluded from computation of earnings per share, amount | 719,875 | 680,550 | 716,375 | 700,550 |
Weighted average price of anti-dilutive options outstanding | $ 18.48 | $ 22.15 | $ 18.55 | $ 21.83 |
Exercise of stock options excluded | 14,919 | 20,119 |
Revenue Recognition (Narrative)
Revenue Recognition (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Dec. 31, 2021 | |
ASU 2014-09 [Member] | ||
Revenue Recognition [Line Items] | ||
Revenue practical expedient remaining performance obligation [true/false] | true | |
Accounts Receivable [Member] | ||
Revenue Recognition [Line Items] | ||
Contract assets | $ 1.7 | $ 2.2 |
Revenue Recognition (Summary of
Revenue Recognition (Summary of Revenue) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 46,196 | $ 37,169 | $ 145,914 | $ 112,709 |
Specialty Alloys [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 37,308 | 30,973 | 118,352 | 92,359 |
Premium Alloys [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | 7,986 | 5,936 | 25,707 | 19,383 |
Conversion Services and Other Sales [Member] | ||||
Disaggregation Of Revenue [Line Items] | ||||
Net sales | $ 902 | $ 260 | $ 1,855 | $ 967 |
Inventory (Narrative) (Details)
Inventory (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | |
Inventory Disclosure [Abstract] | ||||||
Cost of goods sold, amortization of operating materials | $ 1.2 | $ 1.3 | ||||
Fixed production overhead to cost of inventory | $ 0 | $ 1.3 | $ 0 | $ 1.5 | ||
Net expense related to the liquid metal spill | 3.6 | |||||
Insurance recovery received during the period | $ 1.5 | |||||
Negative operating efficiency variances | $ 1.5 |
Inventory (Major Classes of Inv
Inventory (Major Classes of Inventory) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Inventory Disclosure [Abstract] | ||
Raw materials and starting stock | $ 18,888 | $ 12,263 |
Semi-finished and finished steel products | 129,733 | 122,396 |
Operating materials | 13,660 | 10,620 |
Gross inventory | 162,281 | 145,279 |
Inventory reserves | (3,414) | (4,595) |
Total inventory, net | $ 158,867 | $ 140,684 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) $ in Millions | 9 Months Ended |
Sep. 30, 2022 USD ($) | |
Lessee Lease Description [Line Items] | |
Operating leases, right-of-use assets | $ 0.6 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other long-term assets |
Finance leases, right-of-use assets | $ 0.8 |
Finance Lease Right Of Use Asset Statement Of Financial Position Extensible List | Other long-term assets |
Amortization of finance lease assets | $ 0.2 |
Lease practical expedient (true/false) | true |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Operating and finance lease, lease terms | 60 months |
Finance lease term applicable to depreciate right-of-use assets and lease liabilities | 5 years |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Finance lease term applicable to depreciate right-of-use assets and lease liabilities | 3 years |
Leases (Future Minimum Lease Pa
Leases (Future Minimum Lease Payments Applicable to Operating and Finance Leases) (Details) $ in Thousands | Sep. 30, 2022 USD ($) |
Operating Leases | |
2022 | $ 87 |
2023 | 266 |
2024 | 170 |
2025 | 36 |
2026 & 2027 | 23 |
Total minimum lease payments | 582 |
Less amounts representing interest | (18) |
Present value of minimum lease payments | $ 564 |
Operating Lease Liability Statement Of Financial Position Extensible List | us-gaap:OtherLiabilities |
Less current obligations | $ (294) |
Operating Lease Liability Current Statement Of Financial Position Extensible List | Other current liabilities |
Total long-term lease obligations, net | $ 270 |
Operating Lease Liability Noncurrent Statement Of Financial Position Extensible List | Other long-term liabilities, net |
Weighted-average remaining lease term | 2 years 3 months 18 days |
Finance Leases | |
2022 | $ 78 |
2023 | 280 |
2024 | 265 |
2025 | 155 |
2026 & 2027 | 20 |
Total minimum lease payments | 798 |
Less amounts representing interest | (73) |
Present value of minimum lease payments | $ 725 |
Finance Lease Liability Statement Of Financial Position Extensible List | us-gaap:OtherLiabilities |
Less current obligations | $ (250) |
Finance Lease Liability Current Statement Of Financial Position Extensible List | Current portion of long-term debt |
Total long-term lease obligations, net | $ 475 |
Finance Lease Liability Noncurrent Statement Of Financial Position Extensible List | Long-term debt, net |
Weighted-average remaining lease term | 2 years 8 months 12 days |
Long-Term Debt (Schedule of Lon
Long-Term Debt (Schedule of Long-Term Debt) (Details) - USD ($) $ in Thousands | Sep. 30, 2022 | Dec. 31, 2021 |
Debt Instrument [Line Items] | ||
Total debt | $ 87,881 | $ 70,709 |
Less: current portion of long-term debt | (2,392) | (2,392) |
Less: deferred financing costs | (1,296) | (1,465) |
Long-term debt, net | 84,193 | 66,852 |
Revolving Credit Facility [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 74,835 | 55,997 |
Term Loan [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | 12,321 | 13,929 |
Finance Leases [Member] | ||
Debt Instrument [Line Items] | ||
Total debt | $ 725 | $ 783 |
Long-Term Debt (Credit Facility
Long-Term Debt (Credit Facility) (Narrative) (Details) - USD ($) | 6 Months Ended | 9 Months Ended | |||
Jun. 30, 2021 | Sep. 30, 2022 | Sep. 30, 2021 | Dec. 31, 2021 | Mar. 17, 2021 | |
Line of Credit Facility [Line Items] | |||||
Minimum secured borrowing capacity | $ 11,000,000 | ||||
Minimum fixed charge coverage ratio | 110% | ||||
Payments of financing costs | $ 500,000 | $ 539,000 | |||
Net deferred financing fees | $ 1,296,000 | $ 1,465,000 | |||
Amortization of deferred financing costs | $ 200,000 | ||||
PNC Bank [Member] | Amended And Restated Revolving Credit [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, expiration date | Mar. 17, 2026 | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 105,000,000 | ||||
Commitment fee on the daily unused portion of the Revolver | 0.25% | ||||
Net deferred financing fees | $ 1,300,000 | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | LIBOR [Member] | Minimum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, effective interest rate | 5% | ||||
Revolving Credit Facility [Member] | PNC Bank [Member] | LIBOR [Member] | Maximum [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, effective interest rate | 7.75% | ||||
Term Loan [Member] | PNC Bank [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Maximum secured borrowing capacity | $ 15,000,000 | ||||
Debt Instrument, Frequency of Periodic Payment | quarterly | ||||
Quarterly term loan payments | $ 500,000 | ||||
Term Loan [Member] | PNC Bank [Member] | LIBOR [Member] | |||||
Line of Credit Facility [Line Items] | |||||
Debt instrument, effective interest rate | 5.69% |
Long-Term Debt (Notes) (Narrati
Long-Term Debt (Notes) (Narrative) (Details) - USD ($) | 1 Months Ended | 12 Months Ended | |||||
Jan. 21, 2016 | Apr. 16, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2022 | Mar. 17, 2021 | Dec. 31, 2011 | |
Unsecured Debt [Member] | PNC Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 10,000,000 | ||||||
Promissory note, Issuance Date | Apr. 15, 2020 | ||||||
Paycheck Protection Program Note [Member] | PNC Bank [Member] | CARES Act [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 1% | ||||||
Notes [Member] | North Jackson Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 20,000,000 | ||||||
Notes [Member] | Gorbert Inc. [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, aggregate principal amount | $ 20,000,000 | $ 15,000,000 | |||||
Debt instrument, maturity date | Mar. 17, 2019 | Mar. 17, 2020 | Mar. 17, 2021 | ||||
Notes [Member] | Gorbert Inc. [Member] | Since August 17, 2017 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument interest rate | 6% |
New Markets Tax Credit Financ_2
New Markets Tax Credit Financing Transaction (Narrative) (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Mar. 09, 2018 | Sep. 30, 2022 | Dec. 31, 2021 | |
New Markets Tax Credit Financing Transaction [Line Items] | |||
New market tax credits recapture percentage | 100% | ||
New market tax credits period of recapture | 7 years | ||
Other long-term liabilities | $ 3,206 | $ 3,360 | |
Gain (Loss) on Sale of Derivatives | 2,800 | ||
Direct costs incurred in structuring financing transaction | 1,296 | 1,465 | |
New Markets Tax Credit (NMTC) Program [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Aggregate principal amount of leverage loan loaned to investment fund | $ 6,700 | ||
Leverage loan, due date | 2048-03 | ||
Other long-term liabilities | $ 2,800 | $ 2,800 | |
Direct costs incurred in structuring financing transaction | $ 700 | ||
New Markets Tax Credit (NMTC) Program [Member] | PNC New Markets Investment Partners, LLC [Member] | |||
New Markets Tax Credit Financing Transaction [Line Items] | |||
Capital contributions to investment fund | $ 3,500 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2022 | Sep. 30, 2021 | |
Income Taxes [Line Items] | ||
Estimated annual effective tax rate | 30.90% | 136.90% |
Effective income tax rate continuing operations | 27.80% | 131.20% |
Expense primarily from expiration of stock options | $ 0.2 | |
Research and Development [Member] | ||
Income Taxes [Line Items] | ||
Effective income tax rate, federal statutory rate | 21% |
Derivatives and Hedging (Narrat
Derivatives and Hedging (Narrative) (Details) - USD ($) | 9 Months Ended | 12 Months Ended |
Sep. 30, 2022 | Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Accumulated unrealized gain on foreign currency contracts , net of tax | $ 200,000 | $ 200,000 |
Foreign Exchange Forward Contracts [Member] | Designated as Hedging Instrument [Member] | Cash Flow Hedges [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional value of derivative contracts | 3,700,000 | 2,500,000 |
Interest Rate Swap [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Notional value of derivative contracts | 10,000,000 | 16,000,000 |
Accumulated unrealized gain on foreign currency contracts , net of tax | $ 200,000 | |
Interest Rate Swap [Member] | Maximum [Member] | ||
Derivative Instruments And Hedging Activities Disclosures [Line Items] | ||
Accumulated unrealized gain on foreign currency contracts , net of tax | $ 100,000 |