Universal Stainless & Alloy Products Inc (USAP) saw its loss narrow to $1.58 million, or $0.22 a share for the quarter ended Dec. 31, 2016. In the previous year period, the company reported a loss of $3.40 million, or $0.48 a share. Revenue during the quarter grew 7.77 percent to $34.16 million from $31.70 million in the previous year period. Gross margin for the quarter period stood at positive 9.07 percent as compared to a negative 2.81 percent for the previous year period. Operating margin for the quarter stood at negative 4.24 percent as compared to a negative 17.11 percent for the previous year period.
Operating loss for the quarter was $1.45 million, compared with an operating loss of $5.42 million in the previous year period.
However, the adjusted EBITDA for the quarter stood at $3.60 million compared to negative $0.50 million in the prior year second quarter. At the same time, adjusted EBITDA margin stood at 10.53 percent for the quarter compared to negative 1.59 percent in the last year period.
chairman, president and chief executive officer Dennis Oates commented: “Despite the expected slow finish to 2016, we are pleased to see improving trends in bookings and backlog coupled with a more favorable domestic specialty steel demand outlook going forward. As previously noted, 2016 was a transition year and business evolved with modest improvements in market demand from the cycle lows. In the latter part of 2016, demand was tempered by uncertainty surrounding the outcome of the election and inventory reductions by several customers.
Operating cash flow drops significantly
Universal Stainless & Alloy Products Inc has generated cash of $8.41 million from operating activities during the year, down 56.15 percent or $10.76 million, when compared with the last year. The company has spent $2.80 million cash to meet investing activities during the year as against cash outgo of $9.33 million in the last year. It has incurred net capital expenditure of $2.81 million on net basis during the year, down 69.95 percent or $6.53 million from year ago.
The company has spent $5.64 million cash to carry out financing activities during the year as against cash outgo of $9.87 million in the last year period.
Cash and cash equivalents stood at $0.08 million as on Dec. 31, 2016, down 33.04 percent or $0.04 million from $0.11 million on Dec. 31, 2015.
Working capital remains almost stable
Universal Stainless & Alloy Products Inc has witnessed a decline in the working capital over the last year. It stood at $84.40 million as at Dec. 31, 2016, down 0.72 percent or $0.61 million from $85.01 million on Dec. 31, 2015. Current ratio was at 3.89 as on Dec. 31, 2016, down from 5.53 on Dec. 31, 2015.
Debt comes down marginally
Universal Stainless & Alloy Products Inc has recorded a decline in total debt over the last one year. It stood at $72.58 million as on Dec. 31, 2016, down 4.36 percent or $3.31 million from $75.88 million on Dec. 31, 2015. Total debt was 24.52 percent of total assets as on Dec. 31, 2016, compared with 25.42 percent on Dec. 31, 2015. Debt to equity ratio was almost stable at 0.40 as on Dec. 31, 2016, when compared with the last year.
Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
