Haynes International, Inc. Reports First Quarter Fiscal 2011 Financial Results
- Net revenues of $106.4 million and net income of $5.3 million, or $0.43 per diluted share, for the three months ended December 31, 2010, compared to net revenues of $81.0 million and net loss of $(1.3) million, or $(0.11) per diluted share, for the same period of fiscal 2010.
- Backlog dollars were $167.0 million at December 31, 2010, an increase of 12.8% from $148.0 million at September 30, 2010.
- Regular quarterly cash dividend of $0.20 per outstanding share of the Company's common stock declared.
KOKOMO, Ind., Feb. 3, 2011 (GLOBE NEWSWIRE) -- Haynes International, Inc. (Nasdaq:HAYN) a leading developer, manufacturer and marketer of technologically advanced high-performance alloys, today reported financial results for the first quarter of fiscal 2011. The Company also announced that its Board of Directors declared a quarterly cash dividend of $0.20 per outstanding share payable March 15, 2011 to stockholders of record as of March 1, 2011.
"Business conditions continue to strengthen as evidenced by our increase in backlog pounds and dollars," said Mark Comerford, President and Chief Executive Officer. "Order entry in the aerospace business continues to improve, and we're starting to see increased demand in our chemical processing and land-based gas turbine businesses as well. Our product development initiatives in oil and gas and solar are also resulting in better-than-expected order activity. We've adjusted production schedules and re-deployed working capital to meet the increased requirements of our customers. As a result, we expect higher net revenues and income as we progress through the balance of the fiscal year."
Quarterly ResultsNet Revenues. Net revenues were $106.4 million in the first quarter of fiscal 2011, an increase of 31.3% from $81.0 million in the same period of fiscal 2010. Volume was 4.4 million pounds in the first quarter of fiscal 2011, an increase of 12.3% from 3.9 million pounds in the same period of fiscal 2010. The aggregate average selling price was $24.11 per pound in the first quarter of fiscal 2011, an increase of 16.9% from $20.63 per pound in the same period of fiscal 2010. Cost of Sales. Cost of sales was $88.5 million, or 83.2% of net revenues, in the first quarter of fiscal 2011 compared to $74.2 million, or 91.6% of net revenues, in the same period of fiscal 2010. Cost of sales in the first quarter of fiscal 2011 increased by $14.3 million as compared to the same period of fiscal 2010 due to higher volume, higher raw material costs and increased production staffing to meet increased product demand. This increase was partially offset by increased absorption of fixed manufacturing costs caused by higher production volumes, particularly that of sheet product. Selling, General and Administrative Expense. Selling, general and administrative expense was $9.1 million for the first quarter of fiscal 2011, an increase of $0.9 million, or 11.4%, from $8.2 million in the same period of fiscal 2010 due to increased headcount and higher marketing costs as business improved plus the return to full salaries in the second quarter of fiscal 2010. Selling, general and administrative expenses as a percentage of net revenues decreased to 8.6% for the first quarter of fiscal 2011 compared to 10.1% for the same period of fiscal 2010 due primarily to increased revenues. Research and Technical Expense. Research and technical expense was $0.8 million, or 0.7% of revenue, for the first quarter of fiscal 2011, an increase of $0.1 million from $0.7 million, or 0.8% of net revenues, in the same period of fiscal 2010. Operating Income (Loss). As a result of the above factors, operating income in the first quarter of fiscal 2011 was $8.0 million compared to operating loss of $(2.0) million in the same period of fiscal 2010. Income Taxes. Income taxes were an expense of $2.8 million in the first quarter of fiscal 2011, an increase of $3.5 million from a benefit of $0.7 million in the same period of fiscal 2010, due to pretax income generated in fiscal 2011. The effective tax rate for the first quarter of fiscal 2011 was 34.7%, compared to 35.5% in the same period of fiscal 2010. Net Income (Loss). As a result of the above factors, net income in the first quarter of fiscal 2011 was $5.3 million, an increase of $6.6 million from a net loss of $(1.3) million in the same period of fiscal 2010. Gross Profit Margin Performance Gross profit margins and gross profit margin percentages have improved in the first quarter of fiscal 2011 compared to the first quarter of fiscal 2010 due to a combination of rising volume, an improved product mix, an improved cost structure and an improving market environment. Service center transactional business volumes and prices have also improved, particularly in the aerospace market, due to the end of inventory destocking by the Company's customers and an increase in the rate of airplane builds.
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