SYNL - Earnings call transcript Q1 2019

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

Operator

Good day, ladies and gentlemen, and thank you for standing by. Welcome to the Synalloy Corporation's First Quarter Earnings Conference Call. [Operator Instructions] I would now like to introduce your host for today's presentation, Mr. Craig Bram, President and CEO of Synalloy Corporation. Sir, please begin.

Craig Bram

everyone. morning, Good Corporation's Synalloy XXXX Call. Conference Welcome First to Quarter

on CFO, me of to positive today. As some QX always, XXXX. will trends call with follow our Loughran, comments provide so I'll review Dennis that Dennis we're and far the is provide that and up then questions. business opening seeing Dennis? our segments financials, in the the We'll a with

Dennis Loughran

everyone. Thanks, Craig. Hello,

results financial were presented different three the using methods. usual, As

measure in second, as and EPS; First, release. adjusted earnings a a non-GAAP in net release; defined GAAP-based third, non-GAAP income, the measure the EBITDA, adjusted also defined earnings

the quarter per quarter net diluted a loss of of income compared $X.XX as in or income with million $X.XX first First share or GAAP-based $X.X XXXX. of was million $X.X share per

adjusted the income per of income of million or non-GAAP as with per quarter $X.XX first in or $X.X net diluted adjusted $X.XX compared was share quarter $X.X net share diluted First XXXX. million

EBITDA or total First or sales. of of totaled quarter quarter XX% $X.X $X.X first sales non-GAAP X.X% compared the year's million adjusted million prior to of

quarter March the in gain total. in The in year's of million from $X.X first earnings related remaining million XXXX, represents of for primarily compared million. to The first of the sales inventory X.X% to the losses impacted is quarter. price $X.X out differential. decrease totaled our decreased was inventory the million December availability results pretax being $XX.X category. of total in calculated On pointed At primary in As $XX.X that outstanding quarter borrowings the facility the change adjusted percent compared was a XXXX against price as an capital, the basis first million, quarter of change operating $X.X of after-tax on a facility a release, difference XX, approximately our a first the between last working decline million the combined XX, first year's down $X.X XX.X%, quarter, as prior basis, to two ABL the quarters. EBITDA businesses the end the of ABL primarily inventory the factor XXXX The

balance the January the turn million to acquisition quarter of now term stood Craig. the the over to ASTI of at on loan X XXXX. $XX.X support I drawn at the addition, back In million the of end $XX first call will

Craig Bram

Thanks, a to in Dennis. great forecast performed in earnings. is of and The off exceeded first as for or our business with XXXX start revenue each the quarter units company line both

$XXX inventory our inventory $X.X May generate of expect price up. cumulative the the losses variances April manufacturing gains Increasing for release, in losses, the guidance EBITDA EBITDA adjusted in and surcharges multiple help Metals for surcharges the $X.X and continue will noted change we offset we price revenue million. earnings change on make to million. XXXX adjusted fronts. reaffirming significant QX million hold of In to assumes are As forecast progress segment, the totaling to assuming of continue million $XX The negative year and and

January They'll on team management providing integration sharing expectations, well. unit the our across very as of to units gone methods has completed timely be proceeding of generated has with each in X, Bristol was in acquisition and with the ASTI savings available are purchases best Metals same and business X, the with production we practice Combining raw well. ERP with ASTI company-wide the material units. of First, line information June on these our that's the system converted that

over have our prior a has to storage employee much two Texas. Throughput in and West business of Bottlenecks reduced the improved. XX% quarters. has at Turning in turnover unit increased been that from rate

and Chevron resources part greater including largest in large the with companies, acquisition Texas. acreage Occidental of Anadarko, pursuing of Exxon to this an and Chevron, committing of are the Some holder both E&P a Permian, of

drilling wall, Gulf Tube operation. to Specialty oil at WTI Brent, and carbon in landed activity our that sales We order the company. heavy the seamless of & both of Recently, expect tube directly the Pipe Mexico, prices, in Houston history higher jump-start largest benefit which the of will

be interesting We be the XX mechanical in manufacturing year. the Middle an will and some tubes while is Stainless attractive market of to or very The Pipe of be in Steel a to solar off order not next it size nonetheless. the steel on the will East. is order field months that our parabolic margins The the work carries pipe segment, the used so, in the over start stainless will of filled scale project welded

year, President foreign the for industry. in will to the of quarter last certain buying place was implementing those this last in first tariffs, time of Considerable manufacturers tariffs steel helping volume advance both and year. across was You recall, domestic the increase taking

early quota US the XXXX again and their January concentrated a this program, South shipments example, is in For they on in year. of and Korea into

XXX the of For about increase Bristol quarter market welded market year, was down volume in Metals XX% last points. steel down X%, North year. the pipe in stainless the resulting in over only American this of of first basis an was share volume first approximately quarter

not year, related lower year. simply the it While end we an volume last to of timing believe last is tariffs was but market down demand from indication do

several adding organic and MC. QX. of All some in several $X success CRI is with growth business segment alloy we've remainder biocide Chemicals inventory segment new in been the in sales our except to quarter, our and secured in post for there more in for losses, total mix blending was inventory the of The and positive like much first a to to all, stock on continued The quoting in have projects same very the at million buys change in than in higher and of price to expect of the was Metals capital April, special time. in the capacity QX, XXXX. revenue they've distributor earnings more. expand for upwards underway, had we at operation are Product percentage We sales totaling

comment call I questions, on interest want company. to acquiring the to the in opening Before Privet's

Friday, higher is shareholders As outlined inadequate. valuation in we to position. response company, they our Board's price. if a shareholders, are agree deserve letter last I've spoken Simply put, believes our the Board the several and with that our the sell largest Privet's with of

the We will updated open certainly should develop. now keep to new questions. anything you We'll call

Operator

comment or [Operator the have from question Capital. Hughes line We Instructions] a SGF Mike of from

Mike Hughes

comments you've questions. I I prepared maybe because apologize, I some your of on addressed these call, so missed another was

$XX being the that include backlog of one first million, of Galvanized Or a is that acquisition? the The from does number? kind like-for-like almost BRISMET

Dennis Loughran

It should BRISMET, of all include which Galvanized. includes

Mike Hughes

Okay.

you what Galvanized out strip if number, So backlog? the the was

Dennis Loughran

I'll dig have call. in I broken and after the not the answer that [indiscernible] have components, to into

Mike Hughes

Okay.

that the than call, a Was On $XX really at growth million. implies stood Galvanized if little March early excluding strong. which it acquisition? was March, last that think in less it, really, it Because was backlog the the I said number order you included

Dennis Loughran

Yes.

of So believe said, we'll pin that and it all I that. answer always like down included I have appropriate provide should BRISMET. the to

Mike Hughes

just April comment Okay. order for BRISMET? Can and on trends March you

Craig Bram

-- seen the most the orders we've Mike, recently. up Yes, pick

this that in the in ones buys other mentioned have month, As million we've We up got booked stock showed larger April. number quoting several prepared and remarks, a that of buys on. $X of I about got we've we're just stock

pickup a we've So activity. seen in

that well. look during were in over of Korea. share you we from If share actually, and period most picked market gained up January, imports, that share gained the at South as imports the market time we they strong domestics -- But market coming a very the of

Mike Hughes

Korea, that market to half the out now last they in Korea. Right. the second with were remember of back the the right? year market in And their the again. and they I the -- quota quarter I'm hit in how they're into of works market, they were until Is guess trying

Craig Bram

the exactly trend, or market X They X That's be and year in January. they'll June. out shipped by in in last the But very follow they months of same again they heavily shipped if heavily the right. probably first

Mike Hughes

of I'm December $X Or that to through you first at 'XX, and you quarter? the of would And assume did speaking an loss in the the that time? move EBITDA, Okay. guidance inventory is then the almost that as there adjustment be the that late million gave

Craig Bram

nickel forecast losses. or don't profits nickel We

if million of look XX So at at on any forecast EBITDA, adjusting inventory apples-to-apples XXXX, basis, an out we this and roughly are you year profits losses. the for million the profits, excluding inventory or XX was

Mike Hughes

you question, And that loss then always talk or number. Okay. the of play underlying about surcharge. if How does at know cost all? I the the number, about that into function What other the or steel? gain on inventory

Craig Bram

distribution of the this than in And -- masters inventory a master, buying of aggressive another there's that I'd had one product couple distributors among resulted they've towards more maybe the the because year. say of in speculatively the typically again, little pricing additional been got consolidation There so quarter end buying that more folks, been a in the had. year primarily was some you some some has last first master channel. of bit and also they've

steel on Bristol the was certainly is those the it time then So on this so year. year. is mix selling pricing aggressive Metals more welded a the down, that per total surcharges alloys. products stainless alloy offset a product, last price year the it more and a for was the we're the the little generally special market pricing the margin basis, the in product pipe aggressive XXX, couple last lower pound the lot are difference and than commodity with And than that quarter, commodity first this in on the on the more fact the has selling been XXX But

Mike Hughes

mix first you have the specialty quarter? Do perspective in pound a the from alloy

Craig Bram

basis, sales it about On quarter First XX%. a pounds about basis, was on was XX%. it a

Mike Hughes

Okay.

the that at in is have So I of first X.X%. last the from Is my year, up XX% significantly notes, quarter which, correct?

Craig Bram

right. That's

Mike Hughes

then to million. Palmer. The guess backlog And increased. just throughputs on Okay. $XX the to down I was moving

this, the addressed But I If did and how quarter? throughout back look rate can order you've already read the go it.

Craig Bram

We to been might cant in success done specifically the And of last level a employee some to and pay some adjustments we there paint our blast the recall, down made in job we much Order area. try there. of rates putting the second the better year and out turnover, some rate had good. guys of turnover bottlenecks, half just has through -- our tanks We've the you facility. eliminated

So will a throughout in record base revenue quarter. of the strong the first terms in -- storage storage the really business. a the And of in April, probably throughput has been set they tank

Mike Hughes

And Palmer it basis? the up profitability or Was how on year-over-year down? a look did at

Craig Bram

a It's up bit. quite

Mike Hughes

Chemicals that business I there new And year-over-year think moving was as revenue is in Okay. I And second was to down the ramped on half. believe then division. the the profitability.

just speak you can So that? to

Craig Bram

first the first -- fairly in The had of -- again we had Yes. we and up claim actually picked revenue we profits a you strip legal quarter are on last the when year. payment in the quarter, out growth organic up that a sizeable

out, generate which, blending that business, MC good strip need and CRI, you is over well. recall, volume you'll new the four see that's underway and an And if stuff bringing biocide was direct to side, that us more to where additional in some the some at So excess that The on coming you existing we we're online. had capacity. may in one got area customer. in response customers profit increase out project We've as

Mike Hughes

what's the year margin Chemicals And -- Okay. division? target margin for full the the target

Craig Bram

On margin? EBITDA that

Mike Hughes

or operating? Either EBITDA

Craig Bram

have to handy. later. XX% don't or The know fingers margin to the margin put if, get to in is EBITDA you your XX% can range. don't gross Dennis, numbers back we I target that on going can I the Mike be profit

Mike Hughes

last acquisition And expectations. your fine. performed That's then above Okay. question. ASTI I that the one saw

was there number? for an you in quarter. think correct? Two, Number is one, in mark-to-market probably the I inventory did the that that loss adjust EBITDA

Craig Bram

Yes.

You're charge about the big talking ASTI. at acquisition

adjusting million $X.X to the inventory, Dennis? a like it's think I related that's

Dennis Loughran

Yes.

our adjusted about number yes. total related inventory, that the EBITDA, million in So $X.XX includes to

Mike Hughes

Okay.

it for. was adjusted So

Okay.

Operator

no [Operator to remarks. to the any management additional at over turn questions closing in I'd time. Instructions] for I'm audio back this like conference showing the queue

Craig Bram

next information with and As appreciate much. over interest to the your more couple you very of always, forward months. Thanks look sharing we

Operator

for thank This conference. and in you participating gentlemen, the Ladies concludes program. today's

You a have may wonderful now disconnect. day. Everyone,

Ascent Industries (ACNT) 3 May 192019 Q1 Earnings call transcript