HAYN - Earnings call transcript Q1 2022 | Haynes International Inc

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

00:02 Good morning ladies and gentlemen. Thank you for standing by. Welcome to the Haynes International Conference Call. At this time, all participants are in a listen-only mode. [Operator Instructions] 00:15 I would now like to turn the call over to Controller, and Chief Accounting Officer, David Van Bibber. ahead. go Please

David Van Bibber

Officer. in particular, September XXXX. to for statements let intentions, such in uncertainties risks turn such suggested information, new company otherwise. these very note plans, of such today With you the the Haynes Securities can forward-looking the are joining Form today. or call discussed read fiscal with Securities Chief we achieved. us be and I are get similar or company's XX:XX XX:XX like risks within XX, of statements, identify and anticipate, and the obligation revise and Litigation the contains Private and forward-looking would year and that, are and we regarding Although Mike much forward-looking number statements. the Mike. XXXX believe, Shor, are publicly to me the Reform statements. to our detail that and forward-looking Financial and of me statements a undertakes Section President, are expressions Maudlin, brief ended no Many Act any in plans, or to expectations of of XXE Before Securities of President, result XX:XX subject Exchange XX-K The update With call or words forward-looking to we Dan started, XXXX. cautionary Thank will Commission, a intentions, of Act as Vice Exchange whether reasonable, of expectations assurances a for meaning XX:XX XX:XX regarding and believe International; conference future no are CEO The filings intended by statements over events, and plan, This provide

Mike Shor

Dave. to Good had an you, Haynes year momentum morning, we continue throughout gain quarter will and XXXX. believe we everyone. that XX:XX fiscal excellent Thank

business. changes that significant our we’ve Our made to reflect fundamental a improved results

results business to across good sheet start follows. the our that performance key that believes additional continue. highlights financial and date safety, as balance a are will The and team Our of improvements business XX:XX aspects performance are all operational,

First, recordable class company-wide process below safety ongoing percentage to on in OSHA improvement Thanks margin with XX% to leadership, COVID. in the slice the we of have efforts rate year. efforts prior continued gross focus and the XX:XX and the become to finished be related Next, reality. our in our year best industry our approximately

million I to pounds gross sequentially quarters $X.X progress margin we last pounds we drive We've also X.X The installing mix. both, to Carolina. we’ve comparing the our ago a gross example basis achieved continuing and year-on-year. XXXX and improved following four are was in implemented QX apart. high sold And net approximately similar a I'm of should we XXXX on across we margin of pricing basis initiatives XX:XX continue providing our great yet We QX on, Continuing variable currently cost a XX improvement many XXXX, an The QX lower points impact more manufacturing. industry of volumes XX.X% fiscal as margin comparing X,XXX to availability offer. fiscal ESG based are points volume significantly possible. past these for quarters, X.X% the labor Our and and numerous value profitable products higher our exclude the fiscal of from Our that reduce of first To services by others on struggled our to as gross by driven note to change differentiated XX:XX the estimated and far the is at point, earnings, show solar in X As quarter. North sold million previously years numbers be in provide in Home, XX% of XX:XX volume has issue million which Wire income of million XX% tax been energy XX:XX in We've this three the improved net XX.X% QX adjustment sold installation, Mountain to just expected when our years breakeven income facility at quarter. by breakeven that three earned an based quarter an XXXX. year to of in results demand of fiscal the of $X.X point current sold. law on recent confirm represents lowered significant this similar periods. the the

staffed, recruit the fully employees increase nearly done all months, maintenance to manufacturing resource added now employees handle required work by incredible are We've in our over facilities XX:XX human our and bookings. seven new across past thanks to the XX the our facilities. to of However, production team the

raw focus pension improved our the quarters. support expecting material and we enable that but Next, to materials inventories sheet place. you surge inventory cash is growth is raw investment but grown growth This on our has managing We designed XX:XX is inventory finished to our accelerated work-in-process work-in-process in balance. balance line glide an that response as cash as improving backlog investment subsequent deployment bookings, our to in XX:XX turns. continue are and see and in top not in are path by Our we we requires cash carefully, the to realize the finished line that inventory. materially can in clean We've made increased have top revenue our

is million of of of at year the As XXXX. the carry beginning $XXX.X the the $XX pension our would U.S. million end fiscal liability $XX.X approximately quarter, the below was liability meaning net million, now

XX:XX the innovative conjunction users net these application success and some are on of of healthcare proprietary very activities C-XX, about and chemical well-known review the alloy this $XX Haynes in alloys development HASTELLOY and pharmaceutical, corrosion-resistance add Continuing invented other industries chemical significant and B-X, many you a alloys calls, has C-XXX, beginning among in is innovative UK where our industry our has Today, processing to the with products. market. I'll on, in for complex customers advantage. a number liability is and pension, work. decrease If core our provides end Each since to media others G-XX, million technical applications. for a of continue had addition, XX:XX sales the and talk HASTELLOY XX:XX alloy a the quarter the chemical, our our diverse and I corrosive of development agrochemical, believe year developed application culture of fiscal service, XXXX. retiree In industry. our Haynes a C-XXXX, of highly We is and tremendous in alloy corrosion-resistant and interest segment that true generate competitive innovation our strength, several required.

of One related production. alloys the use developer one our its of to is their provide like and by CPI, next to in comments help This a for generation the backlog XX:XX most on technology of and industry HASTELLOY using markets. and I'd to latest is catalysts. safety, for XX:XX of environmental stages used proprietary a technology impact proprietary increasing the refineries in applications transition fertilizer now corrosion-resistant efficiency, the Finally, continued being refinery HYBRID-BCX processing specified food noteworthy our agrochemical operations. and major of advanced process improve our is in expected

CPI CPI, up aerospace up up across XX%, up sequentially IGT, is backlog with and IGT XX%. and XX%, aerospace, Our

to CPI aerospace of during rate in QX Our the wear FGD, and share due our the build engine decline This XX% market million IGT, I $XX.X and year-over-year. were backlog XXXX. XX% our up technical the by noted projections XX% an This electronic levels the sequentially. Order up and XXXx, was QX become entry was are year-over-year. Aerospace and gains $XX markets uses into engine QX to two entry We waste and led our applications. market. QX sequentially. market strong for million turbine oil down Industrial category again ceramics, and revenue sequentially, year, shipments a the rebound up encouraged QX opportunities engaging XX:XX in Gas which million, during once chain believe continue gas, is year-over-year during XX% the expect million alloys. and up alloys and decreased team aerospace automotive, last the and also conditions backlog driven for was incineration of total and backlog was our We up for proprietary gas is entry Our strongest by beginning XX% and special of Desulphurization, XX:XX sequential also was in experienced processing timing was our sequentially XX% which to by leap the XX:XX QX our builds revenue FGD QX uptick order required Flue poised discovering aerospace, to $XX GEXX Order development dollars year-over-year some a sequentially XX:XX products improve XX%. markets. continue we and customers, million was XX% backlog sequentially but the backlog other As XX:XX at of record XX:XX shipments We're for was Chemical experts support business certain for applications contain will market the our aerospace energy, up that our marketing alloys. supply see $XX Our or the unique $XX CPI market. in renewable XXX% projects increase $XXX applications. of includes segment to XX% the and million, up QX for used believe quarter, XX% and balance demand. innovative sequentially million, We the was and shows XX:XX up is in where $XX XXX% actions revenue estimated to our year-over-year. of

continue and items, seeing was our a the but revenue our reduction have capacity $X.X done work. work Other team as and As to revenue fundamentals. up that various hard this utilize manufacturing million, higher we all value in comments, our changed by XX% products. mostly XX% FGD’s Other Haynes have that shipments year-over-year. we my XX:XX want sequentially again they to I at lower for contains thank our entire results improve quarter Their XX:XX business happen, on company. for conversion wrap accountability I to As are

cost products balance of and more our all manufacturing, impressive our call service provide profitability. I'll financial on With a transform which significantly that, a and differentiated getting growth value over a services variable innovative hand the potential both on product to pension provide helping of providing improved and to when provide value pursuing to for reducing improving with details provided, earnings continued relentlessly on have yields Dan liability, XX:XX lower for in solutions and focus resulted strong on that more high Our company results. and sheet, foundation and paid

Dan Maudlin

the for that calendar at managing million since be even quarter fiscal performance to year. sheets, the a financial aerospace solid breakeven point pricing their first profitable year, our we've profit and entry made working with profitable order in in mentioned lowered is a been revenue expectation a volume quarter this not start income would to The lower had definitely struggle that net pandemic is this strong XX:XX previously resulted It arise pounds cost the XX:XX pounds. has This $X.X a We the happened outages, maintenance XX% quarter before and us seasonally by when initiatives Mike. you, mix. customers Thank XX:XX notable holidays, that in calls, X balance and at way. sizable year. typically our enables our on but dip significant, In current with to would which in would We with and levels have calendar historically, at is and shipped million X.X also end be losses. the prior million we that and we of very well year

are $XX.X our to sequentially nearly to put above volume by enable million to quarter about were by above especially invest to percentage production increase to our increase and into the continue XX:XX quarter further Our enough and quarter levels, In we improved the reductions demand as process which cash increase, inventory And actions level expanded for addition, this levels. XX.X%, to As production year's aerospace was are both of high the with eliminate even XX:XX we last higher and remember realized revenue mill related continued reductions. to at last see charge. improvements million. margin cost expected begin staff production productivity, and mill benefits first that pricing This and able further $X.X products. to be last we production quarter yields, gross cost our to with direct these

avoid levels been a volume production as be of moderate through. pound margins was XX:XX We've half is And is our and in headcount million second seen charge issues behind significant the as that XX:XX too we recently, is costs with be pound sold, with to FY so cost to good and $X.X absorption charges costs. increases provided recent our likely action dropped was earnings has quarter is and across in raw to inventory. of Raw and costs, supply to we and well. this wide charged It high significant for beneficial now our direct elevated diligently mentioned, product quarter. we very remember Mike our per expense issues, FY continue directly these XX:XX costs cobalt as materials, have may have the This and tailwind industry through Regarding cost managed increasing increases you high XXXX inflation, quarter the to growth. a that As labor, And helped we believe favorable XXXX, eliminate capitalized pressures. to into see per market to roughly cost fixed inflationary these issue, drag increased challenges These manage not more freight nickel as as had last future volume which material on direct for similar chain we XX:XX this us. incurred. to price cost the next production supply to

or technical quoting protection. and spot you U.S. the consumer was last expand it this reduced a locked more customer or margin The the XXX.X means price gross have I escalators year, million can last million, the risk mill margin or XX:XX as profitability dollars. rate of gross quarterly aerospace XX:XX in pension favorable include and reduced continue secured UK income pension also If plan including was help this and in SG&A funding well. also extremely knocked degree of investment believe cover was fully due we with year-over-year quarter to mainly headcount XX.X% The expect funding million by As the to interest post healthcare year. million, result quarter the year's million and was million last in approximately XX.X sensitive cost pension, over million of us million. from longer this XX.X%, our been It expected XX goal down and the [ph] measures plan mentioned, our the X.X our resulting than significantly sales, implement favorable sheet, we reduces with first XX/XX/XXXX. year's first as such took on place which savings $X XX a retirement to million are price business was to $XX to in largest returns represents we at interest we to $X.XX XX.X% no XX:XX XXXX. interest increases liability which is XX:XX in rate index Further currently. XX:XX XX.X retirement compared where risk million salaries, down reduction. from [Below] asset by year's gain. is the etcetera, non-operating our business XXXX This fourth favorable research beginning benefit customized previously reduced for fees However, strong retiree board of balance type striving plan reductions, expense this that in to which the operating to is higher it quarter, was allowed pension expense executive as sequential rate our million. XX% furloughs, were fiscal and goes decrease which and contracts with the to increased which P&L and of reduced of X.X liability We the funded at in direct equity with by this largely compared place of SG&A $X.X which some FY movements, recovers, This the year. liability margin income to level last strategy, driven or leverage of net volumes expense increase XX:XX our quarter fiscal pandemic growing growth have significant the

with are We progress our strategy. happy the plan on pension

rate the XX.X% of the to tax full-year quarter effective in level first XXXX at tax year UK. increased XX:XX the in was currently reflecting rate Our rate projecting XXXX. fiscal the fiscal tax statutory be roughly We're for effective that

$X.X improvement. of quarter this sequential income an XX% net Our represents million

surging, per the share increase, the program. represents shares due backlog XX:XX us $X.XX, following $XX of fewer share XX% an is quarters. calendar than to Order at future cash plan invest a percentage approximately earnings our sequential that process Our and income outstanding While opportunities. of higher diluted the repurchase our slightly increase, share million. different net of repurchase effect the grow at this continually revenues plan, of increase the opportunity $X.X Our million at plan, in we we purchased a deployment allocation line drive the includes repurchase share cost With sequentially of year, enabled XXX,XXX XX:XX adoption into a entry backlog. to to repurchased the capital we in quarter inventory during the cost first total fiscal shares topic the expected We XX:XX quarter discontinued XXX,XXX XX% top to due evaluating Since the the of end an on shares cash growth backlog. and additional XXXX. the seize of which

markets entry million. December in the XX% We and order $XX.X X.X, entry. increased year-over-year to quarter other CPI by with for had other quarter XX, XXX.X and markets the Our X.X, with strength aerospace strong book-to-bill at book-to-bill Total quarter order entry product million was was $XXX Aerospace and ratio XX% million at backlog as over XX:XX driven core impressive. the of a for at X.X. well order is X.X, which IGT our in XXXX,

revenue, outlook XXXX. year. our throughout improve revenue approximately in quarter the next XX:XX fiscal the fiscal as first than higher far for We profitability As we the expect volume, be of quarter to anticipate will XX% that second quarter, and currently

We're increased believe XX.X XX:XX that of upon of was the to sequential planning XXXX. leverage million with rate X.X rate continued first to currently cost also be the the spend growth and along We growth improvements. would revenue, in last had anticipated spending as due based and level. profitability earnings approaching the on cash Capital and sheet quarter than pricing greater the million we grew fiscal backlog in XXXX the made investments at facility and working in fiscal borrowed Liquidity, December XXXX, year XX.X on XX, sizable balance production credit our a depreciation XX:XX from increase of X million increased. company's capital as result a levels of volumes million

over and volume the we below liquidity create Mike, XXX.X profitability recovery XXXX. growth this million gaining now our at levels quarter of strong increase, year. back pre-pandemic the the is improve volume entry aerospace, credit expect is This levels fiscal sold by the expect discussion be at the the it And of December with Mike strengthen at going with these with I average levels led end we that, XX.X% margin turn conclusion, largest our to will you. XX:XX yet order levels encouraging. solid available backlog leverage profitability and gross fiscal of by Our income quarter million net growth to forward. shipping level, at aerospace to aerospace pre-pandemic as is XX:XX to traction XX see XX:XX mentioned, XXXX. And exciting on as monthly levels In facility this as was market our XX,

Mike Shor

XX:XX Dan. Thank you,

continues the that, encouraged at company. want here With call interest and continued all our the to let’s progress your of of our XX:XX to the for I future team potential you open to in Kelly, thank entire be Our Haynes up business. by questions.

Operator

Your pose Instructions] first coming question [Operator at Certainly. from Hernandez Marisa question. & Company. Please is XX:XX Sidoti your

is live. line You

Marisa Hernandez

you morning. results. on Good Hi. congratulations XX:XX Thank the and

Mike Shor

XX:XX Thank you.

Dan Maudlin

Good morning. you. Thank XX:XX

Marisa Hernandez

clients the recovery latest it the potential impacting know in of playing how cases, at thinking you OEM? is are outlook. aerospace of How and your the out. in looks terms is risk the the expected about omicron that curious all order COVID-XX I like from So, am in search push-out variant XX:XX to

Mike Shor

XX:XX Sure.

First, we our out So, hear the going and Last XX:XX the Boeing to it I CEO when to continue to the was not the metal commit talk to about and point itself, of probably a we our and airframe committed said, I'll our you manufacturers engines XX:XX through to would It's chain. numbers commit paying talk is XX to deal and and are XX% employees of the we've months we going. engine that industry something with to doubling it's engine. interesting recently great we're the main between they the about sure completed had certainly he workforce XX:XX to not probably [indiscernible] from make it. a continuing that sure of have people following quarantine, we we customers to, any these of as employees. plus I'll the keep far leap reasons work or from attention or our COVID of between find whatsoever. and appropriate reason built out board the interesting about ahead minus and what lot, and worried leap hesitation move done because as and full our of TSA supply out. time all get people I and the into market. talked I’ve guidelines. making XX he's XXXX, aerospace we've drop make, we're And year one what and manufacturing facing he keep We would a they're And Now, make seen very have XX for wonderful before job a the typically it steam – but a have market, a a XXXX to to across days the hear we've it's engine what is it's from matter truly seen get backfill very, but manufacturers By about where not heard it this nine lead time peaked, going, long about, to we and

been at we something to issue see about but an don't at point. not carefully, all. point I talked customers It's So, issue an this time, the this we watched at something all

Marisa Hernandez

XX:XX great. that for you color. That's Thank

related on that wages, you those, cost you unions renegotiate I your are do those? for pretty the contracts Thank are we to and environment if when situation how the to and are the you've timeframe? contract have press playing is to so you're that understood business, that price now you. you I price hikes offset with see in year, we much that this see Moving the your any the a that cost the in pressures significant And you've January seen in very able or from so price have. to talk the release going view fluid out been far, you that need future. know about also to lot planning have increases could of that

Mike Shor

They real continue far no whatsoever. there the unions. employees, with term and have our is, As as long XX:XX agreements change we as

interesting As time. very far as it's pricing, a very,

we services. finished stock pricing, XX:XX and owned competitors, supply address service one got products supply in high value inventory employees yet and that we I obviously our have talk added we happening side, stop the Lead we've and our We the look in that that's there's our And differentiated volume competitors extending, customer coming. need in chain. in step on are centers the to these back times think to concern remains of industry. about when and about exist what's work take a

us. mind, in my environment a Marisa, All in good results of that for really pricing

the tubing We address only due. $XX increases. Kokomo due probably I price to rate contract what's over interested price also in and margins. transactional of raise but good based Our about in from were we that, line come X% to a had I find successful successful think on of of our keeping probably raw that LTAs, We our million freight material costs And half with know these to January, supply board not product the on on pricing. We inflation, up on LTAs come ways our we're raw to and side, really with side These not are rising job costs you're raising related point our XX% increases both in in January. doing improve prices continue cost is that. with a increases, happened we to and with that and product in I XX:XX bottom ranging to price and were the contract want just out This real top are across to material. involved. increases the product obviously

Marisa Hernandez

XX:XX effective So, is January, that Mike?

Mike Shor

effective be of would January correct. That’s That's as That XX:XX X. January.

the both inventory. to side the cut We that our continue have the LTA Again, do time continue all innovations. transactional push and the on different fact side because just We value centers. in we're to of We we can providing. we're can significant with for that service do pieces customers and

LTA transactional in the go interesting. mix, on the half side. are really continue the of So, mix. on to price after richer talked about I transactional the part It's past, top That's the XX:XX increases. yes, We – of our we increases our

we've after all been been going form successful. across and price now are and We our alloys across entire product increases have

Marisa Hernandez

XX:XX That's impressive. pretty

see, January? price see make And increases at to of the [breadth] look across understand, you just you [ph] you I your so, product if board sure effective

Mike Shor

XX:XX Yes.

the increase where again LTA the side we side For side. demand what side, can. inflation, LTA titanium and to about business, we materials, and coming on honest that's be the the we nickel in add] [does that And [ph] half transactional on of million on have the XX prices margins offset reacting raise to to offset in to raw by are to to continuing the

Dan Maudlin

any that year, those escalators semi-annually as in still And or maybe have place. index we price will in due come those And have cases consumer most that don't In change. quarterly CPI material XX:XX raw there a this factor LTAs adjust most well. for

came not the for ones that inflation all will LTAs, due general this January. well covered, just So, get as the

Marisa Hernandez

XX:XX Thank ask come one like that's capacity. And you. quick one I’ll to I and then into regarding queue. back

be from what right picks the at looking could CPI capacity are your [indiscernible] down constraint aerospace you is and your FGD now? product You up, road? that as volume expanding And

Mike Shor

less XX:XX need and it the in lead with an – when and capacity along. concerned for want volume we've honest excellent essence Yes, don't fills has We in we that more all FGD are it's us, but been times. constrained been very about product

product in probably The between our in go customers We're lead out we too don't new [payback] lower is high trained. a our why facilities in aerospace. are the them and XX%. desulfurization margin particular What product. for far, just employees like volume, tend and [ph] getting XX:XX have times to We want core gas running XX% our we which flu only is bringing

Dan Maudlin

XX:XX And if we few of you expanding back years lot Marisa, capital a ago, a with capacities. our spent recall

believe we've So, already headroom grow still some we we with made. to investments have overall, those

Marisa Hernandez

into XX:XX turn you. Great. queue. I’ll Thank back

Mike Shor

XX:XX you, Marisa. Okay. Thank

Operator

question Your KeyBanc XX:XX pose Leshock next question. Please from coming Markets. your Capital at Michael is

Your line live. is

Michael Leshock

Hey, and XX:XX good morning. Mike Dan,

Mike Shor

morning, Good XX:XX Michael.

Dan Maudlin

how Mike, Hi XX:XX are you?

Michael Leshock

Good. XX:XX

the First, XQ, quarter? in I as from would benefit to saw just Maybe look what I that did material raw relative least the we benefit you then you wanted to prior ask missed And into on in XQ? you this to benefit expect give approximate at magnitude quarter. it, that you the but pricing saw in be raw the

Mike Shor

and million we I to nickel and last Yes, mentioned pretty that's estimate X.X quarter, quarter, was which XX:XX benefit cobalt. rising similar our be both tailwind that this rising

both those X.X. part to of go up. of that So, nickel continue certainly, seen we've are driving And

estimate tailwind How either quarter. tailwind I into next sure. to slightly similar be, this had the that would So, less we that or I'm not we're quarter. expecting than will much maybe favorable some

Michael Leshock

driving take in ebb helpful. the I and with it. obviously, Got and market been on any That's to because price wanted you’re And wondering to seeing the dynamics there's so, profitability flow here nickel, like price any XX:XX of more will get reason one's think EV the path. pricing that movement new to but is stay, push it’s that there your your I'm if looks what's just sustainable other this than cycle

Dan Maudlin

EV because to dynamics of and back. going. supply capacity there happened market, will steel, is of same One they puzzle, too They're the sources wrong pieces more know with of were of are XX:XX the at Yes. of not what has the I'm are and there's but not come [ph]. interesting because nickel. nickel other mind. So, price XX% where usually demand is We estimate of [LME in of stainless to do XX:XX time, thing they ago. out long there also I Obviously, because what the all nickel There's because stocks] beginning

takeaway So, answer. I created started really nickel know. is, asked recently remember in I don't if away is is matte. an some really of matte and our going? iron similar a nickel the And up, to honest think I'm happening what iron was nickel ago, demand XX:XX market? sure, and days produced took and to when for you not when I maybe XX:XX well, know. And similar now the That's past, as nickel degree Really Nickel pig as where that customers got Nickel don't something was. that from that that's it sulfate. demand the will impact asked picking two being what pig

right? and it nobody goes where knows, So really we'll see

Michael Leshock

of gain? And one helpful. that of that any the share able competitors as That's at the it. Did to business up your Got what's a then result? able quarter. that Were impact new there if to you? strike in you did, maintain you And was pick you're XX:XX likelihood a

Mike Shor

business, December, on when business little impact LTA XX:XX at see really there's And look the the we're no IGT determine Our exact seeing in in CPI that numbers, we we as continue in last to our in our if expect we'll the still were an step is a the somewhere million strike there results because it where what not month capacity of QX. $X business. at And million and take in Our December of XX:XX ongoing. and back the Okay. as side, the It Certainly, no to view the a or the these it, to the impact, to $X this business, of is in quarter. best strike and science reduction is bookings. so impact of aero looking typically side continues, had and first to QX it. us of so demand increased came on been far It's commodity all, there range

us more our the bookings, a transactional business obviously us, side. for that prices to of but meaningful at part we want. So, That came would in small it's was

why it of continues if LTA the versus was the as quarter of that. yes, And CPI is but type So, that's XX:XX it reasons strong one so because as was more this in transactional business.

have month this at we'll time So, a take one next to time to us. just view and a quarter one what with happens

Michael Leshock

appreciate it. Thanks there. I guys. Got XX:XX the detail

Mike Shor

XX:XX Thank you.

Dan Maudlin

you. Thank XX:XX

Operator

Chris Instructions] pose your Olin next TierX [Operator Please coming at XX:XX Your question. from Research. is question

live. is line Your

Chris Olin

morning. good Hey, XX:XX

Mike Shor

morning, Good Chris. XX:XX

Dan Maudlin

Chris. XX:XX better quarter on Good another expected. see. Good morning, that’s to than Congratulations

Mike Shor

it. XX:XX Thank Appreciate Thank you. you.

Chris Olin

defense, already the going with [indiscernible] ask to like in hopefully, was It won’t and an stop feels me. [indiscernible]. XX:XX topic call But the So, in on so my don't about start that Cleveland. because I it I'm just snowing apology I'm with I addressed, bear

really it's fault. So, not my

Mike Shor

XX:XX we're Don't good. worry,

Chris Olin

XX:XX Okay.

want and of focus company, your been You if to on supply months relative purchases on related this sense the backlog have to strength moving a that. tenant few we've there? that is maybe past I demand you kind how is So, over that the much the and and related improvements strength seeing your of to out share environment competitive some could market sense from weird at

Mike Shor

the Sure. to the that [ph] say would aerospace on to and both I fill the aerospace side. environment, chain need the pull] [real side a through begin real supply on XX:XX engine airframe and is The

And were, XX% interesting in the So, or I plus quarter the as is can't XXXX. we average out, about – number still, demand what's below remember where real. XX.X% Dan minus really we're pointed

to long go. we way still So, have a

in they've quarter had down. quarters that though, that's We've pure have we just did XX:XX last our the obviously So been was As three a power opinion. up as far generation, brought our quarter the years. to year-on-year, have IGT many more in in we I and last in at which is than way the backlog like many, in look we over this,

So That's XX:XX that share back. the MRO come for repair XXX the beginning I'm to that's being – sorry, business gain, business our substituted older alloy some alloys.

everyone that's was oversupply there see a no for So, while you've where real to about heard we're ITG talk demand there and beginning gone.

So, we're seeing a real pull there.

on side. So, more these beginning will just special see on the turn the project inquiries orders are which good. to come side, we're special hopefully CPI, in in, same thing product

forward. the bottom seeing end talked of at lack that in as question, because we So, hit question, the happening I Mike's our of competitors of about I And with response going your XX:XX one good our of some currently of not CPI market, see things Chris? that Did of we're because supply, to the market.

Chris Olin

XX:XX Yeah.

I forward that seen? having and business, think you've already how if two on needed problems, competitors take there wondering and could I was was going much aerospace if you just

Mike Shor

got airframe XX:XX nickel But remember, your increase on to and for question. the money a between aerospace business, I've think titanium of XXXX our and significantly business. flat lot spent tubing company I this XXXX our cold-finished both

we've when So, the ago, to they start saying One me, going we things available. was find XX:XX aerospace X.X no go here, are to of got significant concerned if I got years capacity customers, somebody that to. else to

And expansion the money to we and was flats ways spend business. in only but so, core for our in to cold-finished find significant tubing protect expand our company, not our

Chris Olin

benefit started that the have wondering GEXX, I XX:XX program has you supply the Okay. That's to was to in yet? the if inventory? sourcing from chain And very helpful. Reference seen fill

Mike Shor

…? about Which you XX:XX the talking growth –

Chris Olin

The XX:XX Xx.

Mike Shor

a we're seeing read Xx. the which to read than news it’s You Haynes the product is seen for go know, in Xx us, the to seeing the We're more of Xx the into called related into activity we we've proprietary goes while XXX. interesting, one – alloys, for seeing you and good what we XXX the quite for XX:XX our are

to beginning signals positive we're there. So, see

Chris Olin

XX:XX Awesome. question. Last

guess in kind past that me tightening the market? down given what's plant tubing titanium inventory sense give quarter, over I moving, [going has can [ph] out] on there a you which Arcadia, Regarding way been of XX

Mike Shor

tubing and the that. airframe I that, in from talk getting in we nickel with Titanium. applications where involved months, we're significant the would say only of [finned-out] I a beyond demand [ph] tube And versus hydraulic to can what about for the talk really for refill airframe, seen really chain over about that us side last on a Titanium beginning for communication we've supply side, And have that's seen and demand increases to but couple even improvement is XX:XX the have lag titanium the inventory

Chris Olin

XXXX? XX:XX Okay. that [Indiscernible] in reflect

Mike Shor

tubing, And that's XX:XX yeah. demand in based on for the probably some XXX titanium

Chris Olin

Got it. it. [Indiscernible] Appreciate XX:XX Thanks.

Mike Shor

XX:XX Thanks, careful shoveling. Be Chris.

Okay?

Operator

XX:XX Sidoti You Hernandez have follow-up pose question. Please from a your & Company. at question Marisa

Your line live. is

Marisa Hernandez

taking Thank my follow-up. XX:XX you for

I build-up. working So, to about ask capital wanted the

is that on Whether that the year? And an profited? your be evolving and thoughts in obviously, see first rest you the needed cash investment So, the made to flow for quarter the you’ve do here. you. more of much Thank free will How year? how

Mike Shor

XX:XX Sure.

really once during comment state a had start cash last generation obviously believe most capability or me a Let with we usage We cash in significant has comment, I’ll the quarter, my start. steady significant our company business more me levels, achieve just important our going we the to forward.

get there, the don't number backlog I here. we before about with I've think the growing think the I talked that haven't been between most XX%. I backlogs XX:XX and we've is and while our bookings, increase. about since we've seen However, book-to-bill in you've what which telling X.X. XX% a seen are seen

our to high keep in. bring and that relatively to we've us satisfy customers, for cobalt invest times and got nickel in cost down lead So, to our and

to for on raw to inventory significantly we've wip Of to the increase get And here. inventory. important not with the is think I point, it. got customers focus finished an increasing about XX:XX way through course, an by are continue our increasing paying is, material. our product This increasing we

fact, goods decreased X%. In about quarter, during finished inventory our the actually

XX:XX need So, our continue some as we with the few necessary still quarters, to are inventory that'll shipping the backlogs low likely see, customer up a credit next that incremental of on that go through as we very in believe match what are time. the of line. for greater facility over borrowing to our but we We'll invest year, we this period to continue bookings than utilization

Marisa Hernandez

And thoughts it preliminary you. year? for the cash on means thoughts any flow Thank what or XX:XX free for

Dan Maudlin

working mean, require that investment top in we've QX, and significantly, that's as we're line with now. What cash going but to inventory cash. I expecting XX:XX in QX that capital already grows investment in maybe an in not still significant, this seen as

levels it of XXXX. year, expecting. going will will what probably that is full the look back fiscal then you at FY it we're to those cash be when a we'll forward, probably cash get in across some So, generate usage pre-pandemic And

Marisa Hernandez

you. Thank XX:XX

Dan Maudlin

Yeah. XX:XX

You're welcome.

Operator

at any in remarks. XX:XX queue further over I Shor to There appear closing floor to now time. no like for Mike this would to questions turn the be back

Mike Shor

for Thanks, Thank XX:XX and everyone you today time to your for everyone. Kelly. you talk you of thank in Haynes. Thanks, next support We'll your quarter. interest

Operator

gentlemen. ladies This conference does and conclude you, call. XX:XX Thank today's

you day. You may have at a Thank this and wonderful time, lines your for disconnect your phone participation.

Haynes International (HAYN) 28 Jan 222022 Q1 Earnings call transcript