Net Sales Increase 16% from 2013 Fourth Quarter to $46.7 Million
First Quarter Backlog Is Up 26%
Gross Margin Improves to 13% of Sales; Operating Income is $1.4 Million
Net Loss of $0.07 per Diluted Share Includes $0.12 of Tax Charges
BRIDGEVILLE, Pa., May 1, 2014 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy Products, Inc. (Nasdaq:USAP) today reported net sales for the first quarter of 2014 of $46.7 million, an increase of 16% from the fourth quarter of 2013. Compared with the fourth quarter of 2013, tons shipped to the aerospace market increased 8%, power generation shipments were up 7%, and shipments to the oil and gas market rose 11%, while heavy equipment market shipments were lower by 10%. Backlog (before surcharges) increased 26% sequentially in the first quarter of 2014 to $58.8 million, the highest level since the third quarter of 2012. The Company's gross margin for the first quarter of 2014 was $6.1 million, or 13.0% of sales, compared with $1.5 million, or 3.7% of sales, in the fourth quarter of 2013, and $4.6 million, or 9.5% of sales, in the first quarter of 2013. The strong improvement was due to higher shipments and production levels as compared with the fourth quarter of 2013, in addition to a better matching of surcharges to raw material costs with the rise in nickel pricing compared to the second half of 2013. Included in the Company's first quarter 2014 results were expenses related to severe weather conditions that approximated $0.6 million pre-tax. Operating income in the first quarter of 2014 rose to $1.4 million, compared with an operating loss of $2.6 million in the fourth quarter of 2013, and operating income of $0.2 million in the first quarter of 2013.