Earnings call transcript Q1 2023

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Operator

Good morning ladies and gentlemen, thank you for standing by. Welcome to the Universal Stainless First Quarter 2023 Conference Call and Webcast. At this time, all participants are in a listen-only mode. After the speakers presentation, there will be a question-and-answer session. [Operator Instructions]. today's is that recorded. advised be conference being call Please

to the host, I hand over your ahead. will now go conference speaker Please June Filingeri.

June Filingeri

CommPartners, Universal Stainless Good June call and like Lydia. This conference welcome and of to the you, also I to Thank you webcast. would morning. Filingeri is

XXXX are We quarter to morning. this the discuss reported here first company's results

Arminas, General President With Officer; Chris Executive and us and and Operating Vice Chief President, Chief Chief President from and management Financial Chairman, are Vice Officer; DiTommaso, Steve Officer. John Executive Counsel; Denny Vice President Oates, and Zimmer,

management, Before has me I turn will will the call remarks, at formal on review over take management to that After you questions. Lydia let instruct procedures. we your quickly made procedures time.

morning's under release today's forward-looking this statements, Act to with the will Also, which remind Securities Litigation like Reform related more that call, the in the XXXX. Securities of fully please Exchange statements press I would company's Commission. you these and filings and are of in to in make Private risks management the note described

now With to to formalities begin. would are to like Denny, I complete, over turn the ready Denny Oates. the call we

Denny Oates

premium and morning and solid finished quarter The prices We us for activity Thanks off to and bar were robust our selling got drivers main products, plan base surcharges, favorable a Thanks joining of performance a levels. Good start June. mix and everyone. XXXX expectations. increased in today. first higher exceeded demand, aerospace

over to remains balance with the pointing year. continued The double-digits increasing of and improving strong, Progress quarter. profitability growth the [ph] and of to has business of each made our improvement sales gross returning profitability the margin an tempo month exceptionally

increase. highlights activity. million, order starting the was sequential and high March at $XXX XX a business XX% look Let's a record backlog with

$XXX company up order XX% and quarter totaled entry of QX record. XXXX First over million, another

up highest $XX since were sales million, marks the a XX% level increase pre-pandemic volume on and XXXX. quarter sequentially First XX%

virtually first quarterly a of XX% last the the doubled record of a sales alloy and $XX.X sales. or That's year. from quarter increase quarter XX% reached Premium million fourth

sales alloy aerospace driven by premium Our be continue to demand.

quarter a strategy XX% of First is our of in represented sales sales. our key products our and roughly The I growth margin part record sequentially higher should premium note XX% long-term XX% aerospace products. accelerating contains and backlog premium that nearly increased

Let's take a at look profitability.

were activity our sales, First for higher double-digit of mix, the and quarter improved Higher margin to time richer surcharges, prices sales XXXX. XX.X% returning since planned contributors gross levels profitability. to levels, improved increased first all shipment volume to the selling base and

we of bar XXXX, will into In and a price price six year, in we through total, announced increases which XXXX will the sales on to X% products of increase and into XX% additional March In XXXX rest which of base this XXXX. layered lead-times. our announced impact an into current are increase, roll backlog given

levels generating better fixed XX% activity substantial Planned operating cost leverage. increased and absorption of

Additionally, we per approximately variable process by to X% sequentially. cost were pound reduce able

operations. to are challenge. train new as we integrate a availability Labor into productivity remains and output employees continuing Nevertheless, and increase

to environment. each very employees the appreciation personal report express work pleased X compliments to we record in of for we a quarter, all in rate recordable as achieved in to also other to their maintain my the I'm for that of OSHA want safe I out low looking efforts our company. a strive an for

diluted turned we at net income first positive or $X.XX $X.X million reported in per of quarter share. $X.X operating -- the $XXX,XXX a loss Although million,

do to confident work more in sequential for our much and have remain quarterly improvement. outlook We

$X.X level million EBITDA respectively. and totaling adjusted $X.X EBITDA and reached the XXXX, since highest million

capital on million at $XXX.X was position. year XXXX. our on March Just XX a Managed end comments with financial working compared million $XXX.X few

the million our fourth versus reduce inventory levels to which announced to continue turnover, while end plans $XXX.X operating sales of totaled quarter, higher. driving million reflecting and the We inventory, $XXX.X improve at

relatively year remaining March $XX with million from unchanged was XXXX's debt end XX at Total on availability $XX million.

Jackson, First the mainly two expenditures which arc of addition consists North quarter our totaled for remelt of an capital investment addition -- in vacuum $X.X furnaces. million,

is The for beginning with equipment has completion the been operations quarter delivered, on XXXX. year, in integration installation full track this first of

Our objective enhancing cost margin technologically-advanced product expand is products, our more and to portfolio thereby prospects. premium structure, capabilities, higher growth with our

strategy, capitalize to we our opportunities and Chief management chain team marketing, and manufacturing, month. his takes future purchasing, Zimmer and Chris responsibilities and current Chris changes fusion in Operating long-term our to in abundant our the leadership quality announced earlier named Vice To Officer. on this accelerate of on technology, for and supply development. President two was addition Executive growth in sales,

XX-year a Chris to Vice Operating is Universal been elevates and over in Executive that of Officer company. recently most his served Officer building veteran Chief Chief and Commercial XX promotion new years of a a to and partnership past partner Universal President as He's level. key the the

recently to Kane Brian promoted and is of Marketing. Universal Additionally, also Vice served of Sales Manager veteran Field President as most XX-year Sales. and a Brian was

Chris, your it review I'll turn over of to operations. for you

Chris Zimmer

mainly Denny, everyone. I'm equipment outages pleased facilities that caused key by as difficult weather Thank morning, to issues operating good as report our December. quarter, impacted in in fourth the and at several conditions which substantial you, improvement well were unplanned

XXXX. today Bridgeville they up but performance are end the the December, rebounded have our declined March. In end XX% with at mill the hot contrast of sequentially, by XX% situation and hours at operating by of me the Let

lost year. forge North monthly after warm year the the The of had Jackson operating lowest we hours December in a

forge However, and operating operating up pre-COVID are levels. back to at XX% sequentially the hours

issues there manufacturing quarter. the no significant In equipment first unexpected fact, or downtime company-wide, were in

labor challenge shortage. face the continue nationwide is to we major A

retention results. improving. are continuing continue, lead-times are situation parts labor produce and improving, we chain our Fortunately, bottlenecks in increase see a extended particularly continuing to for and the onboarding to training tangible steady Supply employee is but repair is count,

at continued March, New have of including volatile Year nickel in than slower macroeconomic demand of to and be down prices market pressure in commodities the the XX% end Nickel The factors US quarter. commodities. dollar China a following prices. to Lunar on turning return the first Now, sequentially put expected stronger were

the be from expecting time, same the XX% and Based lower current we December. are modestly to quarter. on iron surcharges XX% end of up was was in moly prices, At commodity second up the

with Let's largest market. turn markets to end aerospace, beginning our

$XX.X We XX% and quarter and continued revenue quarter quarter XX% growth first XXXX. aerospace in up that's the $XX the fourth totaled million up in of of in of first the XXXX, million our sales XXXX of from from represented in XX% which sales,

ramping supply Universal chain inventories increased and the a robust lean premium said On drivers record build rates, throughout we multi-year sales, our aircraft strong call, last activity, as that deliveries, realized expansion. backlog. aerospace today alloy the indicated Those and chain. has a record pace by aerospace sales, we supply demand evident of order have continue

is for analyst are capacity airlines clamoring put meet aircraft to and struggles back travel one existing it, as as new fleet Air demand.

Let's look at and developments Boeing Airbus. at

travel widebody first That MAX as combined and airplanes of nearly also Ryanair, quarter MAX year XX planes was airplanes XXX XXX It total deliveries in XX XXX For Southwest, to XXX Boeing United international of planes analyst airplanes. the from rose included XX% ago estimates total where resumes. XXX. XX receiving XXXX, a XXX is demand included of the with recovering which above the quarter,

of aisle in Airbus, first XXX aircraft including quarter AXXXs. single jets, and five AXXX AXXXneo the including XX XX totaled XXX airplanes, widebody small the delivery At aircraft

following Airbus British Airlines guiding of an of was has There Airlines. the new their reinstatement Delta Airways. reported and XXX total and deliveries the in to AXXXs. by their aircraft orders settlement deals been with included net XXXX AXXXs, XX its first to That dispute orders in Qatar legal Lufthansa also with expand fleet agreement XXX were XX with quarter. Among

and in of XXXX. week At XXst, there that per to aircraft beyond, aircraft XXXX rate production delays XX media confirmed targets reached but and in March of reaffirmed the a at unspecified for aircraft. response to Last namely deliveries, rate a of by X,XXX Airbus' month end be management a would stood XX in be Airbus XXXX backlog report, XXXX

XX quarter first was including XXX a out beating win the first Boeing important with orders AXXXneo. ever Airbus the MAX booked, orders MAX JAL's order for total XXX an the from Airlines. planes, Meanwhile, reported these gross for aircraft for Boeing with largest XXX of strong XX Japan

Taipei-based unrivaled efficiency widebodies, XXX's as additional five performance, ordered and Air EVA Dreamliners In XXX line airline the they describe to carbon with what strategy. in leverage growth neutral

aircrafts. order in total by and And quarter books, to also their what announced Arabian a history. commercial while is not XXX up in X,XXX fifth largest to carriers with purchase Dreamliners the will that of to airlines reported Arabian value net Boeing be purchase XXXs. Boeing's intend Saudi the order XX backlog in set XXX Saudi ended Boeing Boeing that

in rates approximately closely deliveries told jets XXXX. is MAX the to expects of Boeing Street XXX Wall in monitoring MAX to XXXX. Boeing production XXX to investors of deliver the previously and expect XXX XXX

an of that story In unidentified its the XXXX rate of intended said on to Boeing from sources a learned MAX XXXX. XXth, XX by exclusive production XXX that April to restore of it month Reuters January

in this to The will year. XXXX. by to by the of production June of XX XXXX, output month Boeing MAX planes monthly With of then declined Boeing XX June middle rates increase general reaching that has comment. been of expectation XX per year, XX January by MAX this

record report, advanced carefully. that Delta macroeconomic recent Airlines busy for risks bookings especially the United their international reported entering being summer they watching although the and demand strong reported are are record travel Airlines travel remains exceptionally quarter revenues also Airlines months. strong. internationally, with quarterly the In first

climbed They Recent XX% period, XXXX by statistics improving with in markets prior travel traffic all recording trend. versus worldwide in from strong international demand led travel the XX% growth from a February region. carriers the total reflect Asia-Pacific XXXX of February year increase domestic XX% in and report XXXX, IATA that reflecting an travel of February rose

and -- XX% is XX level traffic excuse now at of international global the travel February XX% of levels. that February of with level XXXX at with February XXXX domestic Total XX% XXXX travel me,

of daily with X.X defense million conflicts billion during the and Pentagon's surprisingly, Meanwhile, passengers the year, three remains first million of defense X.X $XXX months during strong the budget. experienced average globe of same XXXX. the months the market passengers three around TSA first screened of an given Not this in line average

XXX of the its of modification rotorcraft the AH-XXE with are first few US worth Army noting. $X.X US Apache supply attack under the and allies contract helicopters a Army's billion in Boeing enhancing terms fleet. A deals will quarter

Army's news our US Helicopter, Bell in customer to aircraft the helicopter. replace the for upheld GAL Blackhawk Bell positive the decision to the choose And tiltrotor V-XXX

means in aftermarket. active very demand our from and meet customers customers all inventories Universal to to and anxious for this continued order a restock rates ramping What is depleted robust build

of XX% sales. largest equipment XXXX is from sequentially of heavy our lower market with market quarter up quarter remained XX% sales This first XX% first representing The the the of $X.X of and XXXX. second in million,

fabrication Metal we equipment the began the applications. in demand downward drives for replenishing strong sales once sales trending market, saw a especially XXXX, to pickup heavy again quarter our customers first inventories. as After in automotive

to the XXXX to well which New demand car increase from and are XX by toolmakers in our months. in model new in XX% XXXX launches XXXX XXXX, launches model as generally forecasted USA lead XX for bodes

balance demand sales the The inventory is service remains positive customers' as to the closely for levels conditions. outlook for to linked our center despite general our heavy economic cautious equipment approach year of

XXXX, the The the gas representing from quarter largest of This sales. sales fourth X% XXXX. up in of quarter XXXX our quarter third the with down million, of and is $X.X of of market X% XX% from first oil was but end first

and lower which demand Hughes, though started Baker That sales, of strong the is and off reported first for better in for energy in oil even quarter. has services the revenues XXXX The volatility. results some earnings macro quarter gas. than been sequential company the optimistic remains Despite with expected of our reflected outlook

the several growth bullish activity supply to continuing revenue and Schlumberger about rest for years, inventories. At global provide year-over-year reported current through the additional the expect and over year. optimistic outlook oil the given of stronger and chain the Universal, next gas sentiment we opportunities are

in a market is This with quarter the down XXXX, million, general of market sales. quarter but X% sales up fourth quarter of of our XXXX first from representing X% was the first The largest ago. year industrial X% from fourth $X.X the

January XXXX the global of cyclicality industry and context, reflecting XXXX, headwinds. market XXXX reported of Semiconductor Industry short-term February of X% sales February Association XX% For and from that macroeconomic from in declined semiconductor

led across have and But market market's but macroeconomic SIA remain sales, long-term short-term concluded cyclicality the prospects headwinds end and bright, a to of markets. thanks to growing cooling range medium demand

for and as our customers We continue the a to long-term. view positive these Universal for over trends

to sales growth solid the industrial long-term during capitalize prospects. year remain our to expect we are the the and We general balance on of poised

an million, quarter in representing the X% markets lower XXXX. of XX% totaled of sales fourth first over prior XXXX, in quarter the than of first generation XXXX, the but X% of of $X.X Power period quarter the increase

of industrial electricity sales generation generation to last power of builds maintenance much our for not we gas Demand for new said of of continues time, there account has turbines and most for turbines. about been late gas as news

energy supplied share by total their XX%. that EIA about generation the this outlook, projected short-term will at the same In natural of year gas electricity remain

generation We adding continue increases we for will builds turbine capacity. are benefit XXXX in expect well-positioned new pace that and gas to activity market from when sales to returns maintenance our power to long-term the

financials. me turn over let the his to our Now, Steve on for report call

Steve DiTommaso

morning everyone. and Chris you, Thank good

on volume rising $XX.X for Our topline to prices. million selling increased shipment stronger and the sales sequentially quarter

The approximately $X.X the and was product marks consecutive of sales, prices, $X.X was as came to higher to the production record our we due XXXX of the to backlog. greater was fourth in up on which the due mix versus second in increase $X.X deliver volume gross quarter selling million the This volume. total of million shipment order continue premium XX% quarter double-digit million growth remainder shipment from ramp and increase

stronger or primarily higher quarter quarterly volume of cost shipment expansion than an gross X% of the half prices, of sales, million base the absorption, The First since first percentage more achieved and margin sequentially XXXX. and of production totaled result XX.X% margin gross higher is $X.X margin a volume. and highest increase

raw selling price of quarter. material cost addition, per of our misalignment and some reversed surcharges within In the the pound our materials sales current in

XXXX. QX, $X.X experienced of sales in reminder, surcharges of we misalignment and rose third as quarter the a of million with negative compared materials fell As cost

the versus our increased. rise cost million measured in of with Now, even and the raw quarter. our playing regard brings results when of to but and of with material misalignment material balance between XXXX, some, to quarter the materials the much negative year raw QX costs. an that our misalignment sequentially last our burdened close continued first us $X.X prior sales This offset middle helped positive And of to surcharges surcharges was the field

year by benefit in XXXX AMJP grant the fully our throughout not end of benefit and any gross was does Additionally, that was the in provide QX recorded results. margin last such the year the

sales $X.X selling, Moving but compared million fourth general, QX and percent decreased as to XX% to current in administrative SG&A in in the $X.X quarter totaled onto costs. approximately the X.X% of million XXXX, quarter from of a now.

We to quarter the second in in SG&A the $X well. land million low expect as

we growing $X.X in plant operating million as the levels. earned to higher a quarter first the fourth gross margin loss income XXXX, compared We during higher of of and $X.X reflecting our quarter benefit of prices from million activity

production and see step will XXXX. activity we of to increase quarter continue each through prices We as

in back million to last $X.X pay $XXX,XXX the or compared revolver rates, million which expense increase quarter year attributed XXXX loan and first The borrowings to $X.X interest $X our with variable prior on higher are quarter the million of in rates of the is first reflected under majority market our to year. first comparing the credit However, rose the of quarter in facility. we the interest term fourth

this quarter year X% total to also average the higher to revolver same on on in total average about balance the first outstanding the our during prior compared quarter. XXXX The increased was from quarter more increased about in quarter and debt prior rates year. our X% Those than the XX% balance

of in effective a an about for of benefit rate of quarter and expense, about about income pre-tax the resulting $XXX,XXX an interest tax X%. recorded $XX,XXX, tax After loss we

of rate Our estimated less for XX%, which of development due impact to XXXX our the annual the effective is research XX% is credits. statutory rate and tax than federal beneficial

narrow due Discrete the X% less loss items to QX $XXX,XXX, quarter on than had an first rate during but were the position. about the impact

quarter share. or Our for net the was loss per $X.XX $XXX,XXX

from highest quarter of the million EBITDA XXXX its quarter reached of million $X.X and XXXX million, year same fourth XXXX. the $X.X versus quarter the in since quarter. a up and level the in million totaled and significantly the million quarter totaled million of $X.X $X.X second first $X.X fourth Adjusted ago $X.X EBITDA XXXX in in

items add and non-cash EBITDA release. backs our our period. EBITDA unique results reported and Our tables adjusted the includes other for impacting in compensation in adjusted are press for share EBITDA the calculations for The provided

Now, cash and I'll flow our debt. highlight the driving key elements

we by quarter, The increase receivable sales and a million a working from $X.X million driven by higher decrease in $X cash of accounts despite capital capital growing working first from the in million. $X our managed During growth our our $X payable. generated million accounts was operations

quarter hand, $X an and The result a blended and increase decrease process Meanwhile, mix the by decreased the value planning toward in inventory. and reduction in of partly reflects inventory effective pound premium during product work a as execution. inventory million in shift per production a of melted overall on offset pounds

increased the arc half of Our to Ohio quarter, remelt expansion plant. facility our capital spending million to which related was at our $X.X North the strategic vacuum for of Jackson,

result, the $X.X total net while $XX cash our compared remained credit our debt flat increased facility -- by borrowings net revolving under end available about of million. a our As to million XXXX, including at our

I turn back That the you. concludes my Denny, financial report. call to

Denny Oates

Steve. you. Okay, Thank

Let me summarize.

our we're quarter and first on move positive building as Our momentum the expectations through on we focused results exceeded year.

the backlog largely that products escalation. last were quarter. first There containing $XXX and unplanned few manufacturing substantial have of issues us over The in million We unexpected quarter issues alloy base resolved. premium equipment a hit been price record XX% have downtime operational or

training contribution traction. and retention is return is Planned and to gaining Employee a operating is up, double-digit to margins. a count leverage activity major levels strong up, increased, making

electrical maintenance issue, on a particularly chain project very management bottlenecks which remain makes Supply and equipment, significant capital challenging. basic

Inflation moderated to increases rate to also continues of compared put year. generally the last

arc Jackson furnaces meet record our North of the our steels. needs production is capabilities on operational track two and quarter the of expand first be had capital and premium, Our in project to at XXXX backlog additional remelt vacuum remelted will in

remains The of over into sales and points tempo growth the improvement of and year continued and strong, balance our XXXX. XXXX exceptionally well which to profitability business

Universal continues both Chris Officer organization Kane Brian of President and with Chief veterans. the of and Operating Sales seasoned appointments Zimmer as Vice Development of as Marketing,

here at and in have team of They have the challenges dedicated, few exceptionally do We talented as strategic years. pursuit our in the each face resilient They significant an Board, of goals, Universal. our their relentless our stockholders. gratitude customers, and remain my over sincere past

our formal remarks. we're concludes questions. take some Lydia, ready to That

Operator

Instructions] question the Leshock our [Operator coming Certainly. of from KeyBanc. Michael And first line with

open. line Your is

Michael Leshock

guys. morning. Hey, Good

Denny Oates

Mike, you doing? how

Michael Leshock

percentage to start does and wanted I any of MRO level OEM of sales? you're And what between your into level have business. Good. seeing as MRO split the visibility a you of businesses Do you're asking to in what normalized about that compare how near-term?

Chris Zimmer

I'll Chris. not buckets. an There into very comments on quantify able new of have is of how both. on really is feedback the it's very into those by good to of But us hard it's when is of a for through to us MRO that of the activity The base. Because is, that. driven is strong, that we majority beat stab answer much been get our flowing chain this some get how the goes take forgers, up either build we're MRO even product being I'm is sometimes versus side. prime, much hard bullish one selling at The know So, centers for that ours to revenue that that. supply a and service of demand a

Michael Leshock

directionally? declining margin picking important the about the And is what labor for Aero the while for and Maybe that some think then is order still if ramp productivity about you're second given charges improving. up and quarter, the quarter second momentum takes are spare thinking at puts we least should there of

Denny Oates

improvements expect sales. Directionally, some see to we in modest would

be to year, unchanged. expect think lastly, expect down see paying accelerating inventory through, we capital through move would of growth the debt sales quarter improved year. fourth expect the they're of to quarter the relatively Steve year, We and and of With guess the each but to turnover expand the each the during margins And we I estimates, I already year. third as our we quarters went

Michael Leshock

supply you here? very And just That's me, Great. would that is helpful. you peak to Are build for need lastly from there levels inventory. we mentioned to some any strains? some and chain working -- a at Or buffer perspective, reason capital, mitigate

Denny Oates

plan At improve to plan to our our time turnover. and continue up our We the level. shipment same ramp activity

in course of balance dollars we the reduction to in expect some of next sheet, absolute would terms the So inventory. over two on quarters the see

characterize if know So I your I this peak. not this is so would I a a, don't understood as question.

Michael Leshock

No, helpful. that's Thanks, guys.

Denny Oates

welcome. You're

Operator

question. our our for next next the moment Robotti from Advisors. of One question up Weber line you. Thank And with Alan coming

is line Your open.

Alan Weber

you Good you good XXXX. about talk morning. about, and know, as Can you talk know, towards kind operating a XXXX, think margin of goals gross are look about, you spot you the you margins? what When in how you're out into

Denny Oates

while Well, time you at basic add we've a significantly a traditional basis long-term working by terms products at prices our underlying portfolio, in take products about carry talked all is than higher several of our more business, margins business product our legacy advanced same higher of the strategy our strategy our into to points. look which technologically and lot, to if improve

mean So High record what that teens, We up does market to What like now. we're an quantitatively? margins. mean? that XX-ish? does looking In see would expect

Alan Weber

And that's gross margins.

Denny Oates

margins talking Gross yes. about, I'm

Alan Weber

Right. think SG&A? how about do And in that scenario, you

Denny Oates

to SG&A a quarter. is $X million going to $X.X be around

matter, really As to our you we look or don't for you're the really current our long-term, throughout add company. talking headcount people at of need if significant SG&A today, numbers that through organization,

have place. organization we basically the infrastructure in and the So

the see sales increase. would So as top grows, expect line to you leverage as significant

Alan Weber

historically did I you, gross now, forgot high-teen, margins? you, Yeah. had you have Have

Denny Oates

quarter got the back second it of XX.X% We was, up in XXXX-XXXX, XXXX to XXXX. I guess

before. there been we've yes, So

XX, five in we've there. range. back or go in company's earlier last up before the been the been Jackson, XX% yes, six the you we've in North But history, years, If

Alan Weber

Great. great. you. Thank was That Okay. really

Denny Oates

You're welcome.

Operator

Instructions] Thank [Operator you.

the Capital. coming question next Bob Sales of our with And from line LMK

Your line open. is

Bob Sales

well. guys. Hi. Two Doing Nice quarter, questions.

bit some First Can in acting little talked forward your you the plan reduction you down be terms what ability driving opportunity cash you on when are to means look through you be there's the of what you've a opportunity bit perhaps going as generation, little is, question debt and cash about generation, inventory expand – a of year. of to more that inventory? and identified is, quantify about And reduce think if to you the would helpful. what any

Denny Oates

Well, in we But what to you balance typically, what prepared the through velocity at our each I'm not of give be at turnover guidance will we're looking plant. inventory terms the directionally, is of end inventory quarter. and doing

So the have material level, have operation think through the hours people board and accelerate of plant, we bring moves faster through and a if the of activity velocity programs kind the can we of plant. number you increase on we series the that to equipment, about run as we we

times. the can with velocity, One we'll higher will the up two our in we'll times, grow. help our We is in end at which cycle That's reduce And what essentially we're doing. have things. amount same at time, inventory. pull And we'll shorter sales lead

Bob Sales

of there on basis? any to question Got product sort of Is to then business it. gross return where as that? the the at the you look line on you cost a I capital, business inventory increases working of your ubiquitously And had, you capital know, allow by it. rates, de-emphasize line higher with your growth and that opportunity identify it's a look when do not better or you at the invested second expand what's so metrics product that identify Got easy cost to products drive

Denny Oates

And deal Our are gets here, our there of product look today, have we exited. Bob. elements we're if which product you basically at great a attention around at portfolio where of portfolio

volume pruned up of you relatively portfolio they're because certain of steel, or of ends have where some out shape contribution their it our low product with some our art inventory. look very if that slow because So of at grades margin and we moving business,

doing plan. understand concept I of So expressing We've long-term and that. that's the you're been part our

So of if don't you product wire lines. much and things rod, sell anymore. we at really look like that

Our most it smaller to than we stuff most anymore. be. do used don't shaped the is in but of much semiconductor business in which the goes some melt XXX melt part basically cases, XXX product, series We

suggesting. long So do term we've a been what March try to and you're on exactly

Bob Sales

Got it. looks improvements. yes, Well, have you looks like huge guys Got made it It great. it. operational

for of So year. rest the good luck the

Denny Oates

Thank you, Bob.

Operator

Thank you. [Operator Instructions]

right. And in at further any I time. remarks. questions turn All Mr. to closing I now see for no will Oates call over this back the queue

Denny Oates

us Thanks, again, Once thanks this for joining morning. everyone Lydia.

backlog reinforce Our for July. year updating first in stay forward in and our look beyond. quarter next performance our and on to In bookings record the optimism rest our the call stay of on We'll the you meantime, progress well, safe.

Operator

Thank you participation. Ladies and gentlemen, for for that does conference today. your conclude our

disconnect. now may You

Universal Stainless & Alloy Products (USAP) 26 Apr 232023 Q1 Earnings call transcript