SYNL - Earnings call transcript Q1 2020

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

Operator

Good morning, everyone, and welcome to the Synalloy Corporation's first quarter earnings conference call. [Operator Instructions]

During this call, management will be using certain non-GAAP financial measures. The company's earnings release and the Securities and Exchange Commission filings include information about these measures and the reconciliation to the most directly comparable GAAP financial measures.

Statements made during this call will include forward-looking statements and defined as Private Securities Litigation Reform Act of 1995. to reflected risks, -- give and that will options are those no and they to subject the prove expectations in in the statements assurance Management correct. be company can and described are earnings the the Those Exchange risks filings. in Commission release company's and Securities

company contain a definitive its of other with with read proxies. strongly be the proxy the entirety The proxies statement -- of SEC important all in company's they in and connection to of filed documents from XXXX definite with please and Annual Shareholders information. any participants Shareholders. connection directors the and company, carefully the filed such Further, encouraged and officers its in their SEC of such the statements with proxy Meeting solicitation advised certain that in are a executive has the solicitation shareholders as

regarding the Information or obtained participants free their with materials be or filed the interest direct These Investor company's of materials indirect in and found other company's or or be can company's the section through the in through titled identity website. SEC. the can statement Relations website proxy definitive holdings SEC's and security the the otherwise

Mr. be today's conference and President Officer; Chief Executive Dennis Bram, Hosting will Loughran, Chief Officer. Craig President Financial and and Vice Senior

ahead, Please I will now turn today's Mr. Bram sir. go call opening remarks. to for over

Craig Bram

Loughran, our comments then provide segments. everyone. Synalloy and on XXXX will Good call. Corporation's CFO, to business Welcome Dennis review quarter our morning, some QX of first a provide I'll financials, the conference

to open then call the will Dennis? We questions.

Dennis Loughran

everyone. Hello,

non-GAAP methods: release; net first, will in be results adjusted using adjusted measure in release. GAAP-based a a earnings and EBITDA, measure third, as second, EPS; earnings non-GAAP also defined the the different X the income, usual, financial defined As presented

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

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

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

inventory As million in totaled inventory pointed the customers represents earnings quarter. the a the out cost improvement in a release, of pretax change XXXX the year's quarter price income statement to of a in between impacted the of compared and compared quarter $X.X last million first basis passed in of losses invoiced XXXX. to balance $X.X surcharges million first $X loss first results, through pretax to This the the on

the the the status at quarter had revaluation due of XXXX, As months. three to impact declines of a five $X.X we approximately current note of nickel end level metal alloy with valuations, over regarding the today's to of metal at pricing nickel prior and million first downward in accumulated

to half book tube would XXXX. pass quarter approximately the of second through current expect million and order on total we metal inventories, fixed during $X.X approximately that pricing With losses as pricing of pipe of

differential quarter being The the was factors welded declines average compared combined quarter the price pricing X.X% first mentioned stainless compared to experienced level. of a in businesses primary the sales galvanized year's the operations prior year's the decline adjusted for in in above, the EBITDA prior and operating as first to X.X%, pipe percent inventory tube of change the

inventory $XX.X receivable. rigorous with as total borrowings of and figure million management to million been of has accounts XXXX. $XX.X that March outstanding had of company its XX, March XX, by Since The lender XXXX, reduced due

the year, with debt times our these efforts million, liquidity reduce improve reductions of changes to responsible on made of approximately inventory constraints tax $X recent redoubling through until and The March $XX capital spending was are normalized In we and of available further facility through our this of uncertain approximately million. XX, of million, is taxes calculated XXXX, approximately COVID-XX economy virus, the as estimated the swathed ABL $X by refunded available remaining approximately $X end million.

I back turn call the Craig. over will now to

Craig Bram

you, Thank Dennis.

The company. first Pricing weaker in impacted particularly pressure quarter the material for year-over-year the negatively saw demand, metals segment. margins entire

by the year. margin of pounds This Palmer, the declined Excluding million quarter from last shipped virtually was prior over material with first year. $X.XX unchanged

able support a excluding costs the to efforts Again quarters, providing our year-over-year. portion offset will our financial cost-cutting our over Palmer, margin by additional from to through of reduced $X.XX proactively this million initiative lost the next results. increase we our discussed We outlook. Savings were as year-end material during cost-cutting several

also our This pipe overview me business. welded ASTI. provide an and Let metals Bristol and of includes tube

steel For pipe quarter, We year. category. X.X American last the up X% the were almost stainless welded gained market first the of pounds over period same share in shipped points North

for demand pricing However, segment remained under weak this business alloys, the commodity our in particularly pressure. with of

demand pound an for the the prices last last $X.X basis. year down welded which absolute delivery line, for was over times, pipe in negatively on shipment. period dollar down the million XX% were and $X.XX reasonably segment year. same Material tube for product fell per our and While ornamental lead margin coal unexpected over ASTI's had by impacted suppliers was extension their Overall, same period an good available our pounds

down $XXX,XXX per major down and to solid prior our or structure Labor $XX,XXX. the every pound. category by year. improvement by $XXX,XXX continue Shipping from declined costs costs show fell We pound. $X.XXX per in benefits $X.XXX with or cost were by Manufacturing

or per SG&A welded down tube and $XXX,XXX were $X.XXX pipe total, costs In over per segment. pound $X.XXX down $XXX,XXX or the for pound. And was

this quarter a first saw Bookings we in That April. soften said, activity for were also the segment bit in strong. order

the is QX. in first good will strong base, at slowly at shape quarter, like excluding we sector, in likely is which ASTI's back than QX trail remains Munhall. Bristol but the see but backlog would medical sales to ramping Our facility lighter was customer the up,

business margin per $X.XX approximately carbon dollar decline shipped by pound prices $XXX,XXX roughly prior and the saw down year, down absolute seamless selling pounds while was basis. X% over on X%. an were down Our Material

were for down well. as line product this Costs

the basis, fell per and per a Over on SG&A year, on down were while pound basis, X% XX% pound pound and on a labor was basis. prior shipping costs per benefits down a X%

insurance $XXX,XXX was or $X.XX last $XX,XXX year total costs down per of over up the expense a Manufacturing total, quarter the higher due to year prior of depreciation. were and first In pound. greater over expenses

in of markets Order below was of market industrial showed as heavy energy the economy. April and activity stress signs first the the shutdown the quarter from

ceased our of Palmer facility. at reported, we have manufacturing Texas previously operations As

are signs have has employed fewer of fallen currently XX recovery. with in prices, operation. quick no We the this than at individuals Drilling WTI precipitously and there activity decline

evaluate we coming unit remaining sell we'll collect Permian weeks. industry receivables normalized the Similarly, Palmer expect in COVID-XX and accounts to Basin production of inventory, levels. and when to we from demand returns pricing oil this As million the over pandemic the in the extract at and several capital increasing gas dollars is and

the XX.X%. a however, last prices margin, instituted increase Material quarter Pounds X% Turning we of year-over-year. March portion $XXX,XXX shipped to up across Effective the Chemicals were down price a first X, declined by were year, our but X% of segment. products. over

for generated of also savings segment total $XXX,XXX savings cost manufacturing SG&A, in Chemicals The combining solid year-over-year. and shipping, expense

due a benefits to were large very claim. up and medical $XX,XXX labor However,

the $XXX,XXX, benefits in savings As were a labor. up result, in employee exceeding $XXX,XXX production-related

We continue hand ship tanker sanitizer. per several of to wagons week

for strong substantially product continue market this with we to While outbreak, has a will increased going forward the create COVID-XX believe hand line the hygiene practices sanitizers.

remain With the for hitting Index level and on XXXX, flow reduction ISM we lowest its April Manufacturing cash focused of April management. expense since

Dennis the mentioned, carry years. back net Act As to and them allow operating will CARES X utilize us losses

$X this X quarters. over generate estimated an in million tax refunds the to We expect next

will We additional an the have tax refund million estimated tax of XXXX year. also $X for

wall for press early cash and pursuing after property and of being or deductible, also in is QX should we're business settlement hit interruption a in The million QX. finalized, claim $X heavy excess which the

successful end at this we of in at remarketing insurance end casualty annually. so the changed address we that coverage. in the kick premiums properties The a our were of savings of the April, time. year, over property spring, $XXX,XXX saving coverages bound brokers last And and new will to are At after the higher

gases approximately in acceptable $X Metals Bristol At dispute our of welding the with industrial Bristol facility. supplier District over ongoing settlement, Munhall the lawsuit We overcharged of X had for an negotiate we've million filed years. Metals, an a Eastern Virginia. the have they to last that believe Unable we

a pursuing tax at Houston should result are property SPT's Finally, annually. savings of operation, $XXX,XXX review in valuation we which

order dictates, our quarters. As of accordingly headcount adjust the two course, over book will, our next we

now the to open We'll call questions.

Operator

line the [ph] your question Lewis you. Thank from Instructions] And first [Operator of James is

Unidentified Analyst

I about was profit. [ph] quarter's this wondering

Craig Bram

question. the hear didn't me? Excuse I

Unidentified Analyst

profit was I Bristol second and first I the as wondering as the, profit Metals division. what segment quarter far guess, was quarter

Craig Bram

out We don't break on that reasons. calls competitive the for

Unidentified Analyst

my to that I you Well, question. was said going and but everything, a revenue everything market just strong Okay. backlog. and had you listen was to

I have none came wait hear of so those listen, [ph] anything, didn't just So to numbers was well, when I that. - on you we'll or on

Craig Bram

Great.

Unidentified Analyst

that. Okay. problem sir. with No Thank you,

Operator

[Operator Instructions] And at further no are questions. there this time,

Craig Bram

All right.

you Thank appreciate very your we usual, As much. support.

Operator

This today's you. conclude meeting. does Thank

disconnect. now may You

Ascent Industries (ACNT) 10 May 202020 Q1 Earnings call transcript