Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended September 30, 2023 (412) 257-7600 (Registrant's telephone number, including area code) Securities registered pursuant to Section 12(b) of the Exchange Act: Title of Each Class Trading Symbol Common Stock, par value $0.001 per share Preferred Stock Purchase Rights OR ☐ TRANSITION REPORT PURSUA ...

Financial Data and Key Metrics Changes - Total sales reached $71.3 million, the second highest quarterly sales on record, with premium alloy sales growing 28% sequentially [15][41] - Gross margin expanded to 15.2%, the highest since Q2 2018, despite commodity headwinds [16][43] - Net income doubled sequentially to $1.9 million or $0.20 per diluted share [16][45] - Adjusted EBITDA increased to $9.5 million, up 20% from Q2 and 1.5 times greater than Q3 last year [16][46] - Debt was reduced by $3.8 million to $89.5 million, while liquidity improved to $31 million [17][49] Business Line Data and Key Metrics Changes - Premium alloy sales accounted for 28% of revenue in Q3, with expectations to range between 25% to 30% in Q4 [24][81] - Aerospace sales increased 5% to a record $54 million, representing 76% of total sales [26][41] - Sales to the oil and gas market totaled $2.6 million, a decrease of 15% from Q2 and 30% lower than Q3 2022 [32] - Heavy equipment market sales were $8.9 million, level with Q2 and 44% higher than Q3 2022 [38] - General industrial market sales increased 50% year-over-year to $3.3 million [39] Market Data and Key Metrics Changes - Boeing delivered 105 airplanes in Q3, while Airbus delivered 172 aircraft [27][28] - U.S. airlines reported record revenues, with Delta Airlines seeing a 35% increase in international travel [29] - The defense industry remains strong, with Lockheed Martin reporting better-than-expected results and a record backlog [37] Company Strategy and Development Direction - The company is focused on expanding its premium alloy portfolio and increasing production capacity, particularly at the North Jackson plant [20][23] - A leadership transition is underway, with Chris Zimmer appointed as the new President and CEO, effective November 1 [20][21] - The company aims to continue improving its product mix towards higher-margin products and capture base price increases embedded in its backlog [53] Management Comments on Operating Environment and Future Outlook - Management expressed optimism for Q4 and 2024, citing a near-record backlog of $345 million and improving operational trends [51][53] - The company anticipates continued strong demand in aerospace and defense markets, with expectations for sequential growth [30][31] - Management noted that commodity prices appear to be stabilizing, which should reduce negative misalignment experienced in previous quarters [54] Other Important Information - The company generated $6.7 million in cash from operations during Q3, with a total of $17.8 million year-to-date [47] - Capital expenditures for the year are expected to be between $14 million and $16 million, with half allocated to growth projects [48][65] Q&A Session Summary Question: On gross margin and commodity price misalignment - Management expects easing of misalignment in Q4, but not to the degree seen in Q3 [63] Question: On capital expenditures - The capital expenditure outlook for 2023 remains around $15 million, with similar levels expected in 2024 [64][65] Question: On labor situation and headcount - Labor stability is improving, with expectations to add a few more employees as conditions continue to stabilize [66][67] Question: On inventory management - The company aims to keep inventory dollars flat despite a higher mix of premium alloys [74] Question: On new business with jet engine manufacturers - The company is excited about new business opportunities and expects to fulfill potential growth in 2024 [76][77]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 (Exact name of Registrant as specified in its charter) DELAWARE 25-1724540 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended June 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 001-39467 UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. (State or other ju ...

Financial Data and Key Metrics Changes - Gross profit margin improved to 14.3% of sales, up from 11.7% in the first quarter, despite a drop in commodity metal prices leading to a negative surcharge misalignment of approximately $0.5 million [4][22] - Net income reached $900,000 or $0.10 per diluted share, marking a significant turnaround from a loss in the previous year [4][25] - Adjusted EBITDA was nearly $8 million, the highest since Q2 2019, reflecting a 17% increase from the previous quarter [5][22] Business Line Data and Key Metrics Changes - Net sales for the second quarter were $69 million, a 5% sequential increase and a 32% year-over-year increase, the highest level since Q2 2019 [5][28] - Premium alloy sales totaled $12.9 million, down 27% sequentially but up 46% year-over-year, representing 23% of total sales year-to-date [5][29] - Aerospace sales reached a record $51 million, up 5% sequentially and 44% year-over-year, driven by increased demand in commercial aerospace [6][12] Market Data and Key Metrics Changes - The total order backlog was $355 million, down $11 million from the previous quarter but up 6% for orders scheduled to ship within the next 12 months [7] - The heavy equipment market saw sales of $8.9 million, up 29% from Q1 2023 and 24% year-over-year, driven by metal fabrication demand [18] - The oil and gas market sales decreased to $3.1 million, impacted by market softness in North America [20] Company Strategy and Development Direction - The company is focused on expanding its product portfolio with technologically advanced, higher-margin premium products, particularly in aerospace applications [8][29] - Capital expenditures for the year are expected to be around $16 million, with significant investment in remelt capacity at the North Jackson facility [8][29] - The company aims to improve its operational efficiency and reduce lead times while managing inventory tightly to meet customer demand [17][19] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued demand for premium alloys, particularly in the aerospace sector, despite potential challenges from declining surcharges [6][30] - The company anticipates sequential sales growth in the second half of the year, supported by a solid backlog and increasing base prices [29] - Management highlighted the importance of maintaining strong relationships with key customers, such as Rolls-Royce, to capitalize on growth opportunities [11][12] Other Important Information - The company appointed Rick Secola as Vice President of Supply Chain and Purchasing, enhancing its management team [8] - Baker Tilly has been engaged as the new auditor, replacing Schneider Downs after over 20 years [9] - Ongoing negotiations for a new labor agreement with the union representing hourly employees at the Bridgeville facility are in progress [9] Q&A Session Summary Question: What was the surcharge misalignment in Q2 and expectations for Q3? - Management indicated that the negative surcharge misalignment in Q2 was about $500,000 and expected similar amounts for Q3 due to declining commodities [31][32] Question: What is the current liquidity position? - The company reported liquidity of approximately $24 million and plans for debt paydown in the upcoming quarters [33] Question: What should be expected for the tax rate in the second half? - The tax rate is expected to normalize to around 20% to 25% in the second half of the year [34] Question: Are there gains in market share with new products? - Management confirmed that the company is gaining market share, particularly with new VIM products, and expects this momentum to continue [38] Question: Is the North Jackson complex richer in product mix? - The North Jackson plant is generally richer in aerospace-driven products compared to other facilities [39]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q ☑ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Quarterly Period Ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number 001-39467 UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC. (Exact name of Registrant as specified in its charter) DELAWARE 25-1724540 (State or other j ...

Financial Data and Key Metrics Changes - First quarter sales reached $66 million, a 17% sequential increase and the highest level since pre-pandemic 2019 [4][23] - Gross margin improved to 11.7% of sales, returning to double-digit levels for the first time since 2019 [4][24] - Net loss for the quarter was $0.5 million or $0.06 per diluted share, despite positive operating income of $1.4 million [6][27] - EBITDA and adjusted EBITDA reached $6.5 million and $6.8 million respectively, the highest levels since 2019 [6][28] Business Line Data and Key Metrics Changes - Premium alloy sales reached a quarterly record of $17.7 million, accounting for 27% of total sales, a 31% increase from Q4 2022 [4][23] - Aerospace sales increased 22% sequentially to $49 million, representing nearly 75% of total sales [12][23] - Heavy equipment market sales were $6.9 million, up 23% sequentially but down 14% year-over-year [18] - Oil and gas market sales totaled $4.8 million, down 10% sequentially but up 9% year-over-year [19] Market Data and Key Metrics Changes - Boeing deliveries rose nearly 40% to 130 planes in Q1 2023, exceeding analyst estimates [13] - Airbus delivered 127 aircraft in Q1 2023, with a backlog of 7,254 aircraft [14] - Global air travel demand is recovering, with TSA screening an average of 2.1 million passengers daily, consistent with pre-pandemic levels [17] Company Strategy and Development Direction - The company aims to expand its product portfolio with technologically advanced higher-margin premium products [7][31] - Leadership changes were made to enhance operational efficiency, with Chris Zimmer promoted to COO and Brian Kane to VP of Sales and Marketing [8][31] - The company plans to improve inventory turnover while ramping up production and shipment levels [30] Management Comments on Operating Environment and Future Outlook - Management expressed confidence in continued sales growth and profitability improvement throughout 2023 and into 2024 and 2025 [3][31] - Labor availability remains a challenge, but productivity and output are increasing as new employees are trained [5][11] - Supply chain bottlenecks persist, particularly for electrical equipment, impacting maintenance and capital project management [30] Other Important Information - The company achieved an OSHA recordable rate of 1, a record low for safety [5] - Capital expenditures for Q1 totaled $4.5 million, primarily for the addition of two vacuum arc remelt furnaces [7][29] Q&A Session Summary Question: Visibility into OEM and MRO business split - Management indicated difficulty in quantifying the split between new build and MRO activities due to the flow of products through service centers [32] Question: Margin expectations for Q2 - Management expects modest improvements in sales and margin expansion throughout the year, with a focus on debt reduction and improved inventory turnover [33] Question: Inventory reduction plans - Management plans to improve inventory turnover and velocity through the plant, expecting a reduction in inventory over the next two quarters [34][38] Question: Cost of working capital and product focus - Management is actively pruning low-margin products from the portfolio to enhance returns on invested capital [39][40]

Sales and Revenue - For the year ended December 31, 2022, approximately 60-70% of the company's net sales were derived from stainless steel products[12]. - Total net sales for 2022 were $202.1 million, a 29.6% increase from $155.9 million in 2021[103]. - Net sales for the year ended December 31, 2022 increased by $46.2 million, or 29.6%, compared to 2021, primarily due to an increase in average selling prices[107]. - Specialty alloys accounted for $160.4 million, or 79.3% of total net sales in 2022, while premium alloys contributed $39.2 million, or 19.4%[105]. - Aerospace sales increased to $137.5 million, representing 68.0% of total net sales in 2022, up from 58.7% in 2021[106]. - Approximately 68% of the company's sales in 2022 were derived from the aerospace market[57]. Financial Performance - The net loss for 2022 was $8.07 million, a significant increase of 965% from a net loss of $0.76 million in 2021[103]. - Operating loss decreased to $6.99 million in 2022 from $12.27 million in 2021, marking a 43% improvement[103]. - The gross margin improved to 7.0% of net sales in 2022, up from 5.1% in 2021, despite a $5.4 million impact from a liquid metal spill[99]. - The company reported a net loss of $8.1 million in 2022, compared to a net loss of $0.8 million in 2021, with the prior year benefiting from a $10.0 million gain on debt forgiveness[114]. - The gross margin for 2022 was 7.0% of net sales, improved from 5.1% in 2021, attributed to higher activity levels and better operating leverage[108]. - Interest expense increased by 109.3% to $4.16 million in 2022 compared to $1.99 million in 2021[103]. Costs and Expenses - The cost of raw materials represented approximately 35%-40% of the cost of products sold for each of the years 2022, 2021, and 2020[19]. - The average price of major raw materials increased for 2021 compared to 2020 and also increased for 2022 compared to 2021, but generally decreased in the second half of 2022[19]. - Selling, general and administrative expenses increased by $0.9 million in 2022, primarily due to higher business insurance costs[109]. - Interest expense rose to $4.4 million in 2022 from $2.0 million in 2021, driven by higher interest rates and increased average debt balances[110]. - The company invested $15 million to grow inventory in 2022 due to higher raw material prices and carrying costs[100]. Order Backlog and Customer Concentration - The backlog of orders as of December 31, 2022, was approximately $287.9 million, compared to $134.5 million at December 31, 2021[22]. - The company's five largest customers accounted for approximately 58% of net sales for the year ended December 31, 2022[53]. - The largest customer accounted for approximately 21% of net sales in 2022, while another customer accounted for approximately 18%[21]. Employment and Labor - The company had 622 employees as of December 31, 2022, compared to 558 in 2021[27]. - The company faces challenges in attracting and retaining skilled personnel due to a tight labor market[68]. - The company had 475 employees covered under collective bargaining agreements, which may lead to strikes or work stoppages if agreements are not successfully concluded[70]. International Sales - International sales approximated 5% of annual sales in 2022, down from 7% in 2021 and 2020[21]. - International sales approximated 5% of total net sales in 2022, compared to 7% in both 2021 and 2020[199]. Capital and Financing - The company has a $105.0 million senior secured revolving credit facility and a $15.0 million senior secured term loan facility[65]. - The company maintained approximately $24 million of remaining availability under its revolving credit facility as of December 31, 2022[127]. - Financing activities provided $22.9 million in cash during 2022, mainly through net borrowings on the revolving credit facility[132]. Inventory and Reserves - The company’s net inventory totaled approximately $154 million as of December 31, 2022, and is stated at the lower of cost or net realizable value[182]. - The net change in inventory reserves for the year ended December 31, 2022, was a decrease of $1.1 million, while the changes for 2021 and 2020 were increases of $0.3 million and $1.1 million, respectively[200]. - The company maintains an inventory reserve for slow-moving inventory and inventory under quality control evaluation[158]. Regulatory and Market Risks - The company continues to experience adverse impacts from COVID-19, including lower productivity and global supply chain disruptions[49]. - The company is subject to risks associated with global economic and market factors, which may affect performance and demand[51]. - The company’s operations are subject to stringent environmental regulations, which may result in significant liabilities and costs[73]. Internal Controls and Management - The effectiveness of internal control over financial reporting was assessed as effective as of December 31, 2022[170]. - Management regularly monitors the ability to collect unpaid sales invoices, indicating a proactive approach to credit risk management[157].

Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) Q4 2022 Earnings Conference Call January 25, 2023 10:00 AM ET Company Participants June Filingeri - CommPartners, IR Denny Oates - Chairman, President and CEO Steve DiTommaso - VP and CFO Conference Call Participants Phil Gibbs - KeyBanc John Deysher - Pinnacle Douglas Dethy - D.C. Capital Operator Good day, and thank you for standing by. Welcome to the Universal Stainless Fourth Quarter 2022 Conference Call and Webcast. At this time participants are ...

Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) Q3 2022 Earnings Conference Call October 26, 2022 10:00 AM ET Company Participants June Filingeri - CommPartners, Investor Relations Denny Oates - Chairman, President and CEO Chris Zimmer - Executive Vice President and CCO John Arminas - Vice President and General Counsel Steve DiTommaso - Vice President and CFO Conference Call Participants Phil Gibbs - KeyBanc Bob Sales - LMK Capital Markets Operator Good day, ladies and gentlemen, and thank you for ...

Financial Data and Key Metrics Changes - The company reported a record order backlog of $222.7 million, with sales increasing by 10% sequentially and 36% year-over-year [6][11] - Gross margin expanded to 12.6% of sales, excluding a $1.8 million grant and $3.6 million charges from a liquid metal spill [7][46] - The net loss narrowed to $1.4 million or $0.16 per diluted share, with adjusted EBITDA reaching $6.4 million or 12.4% of sales [7][9][52] Business Line Data and Key Metrics Changes - Aerospace sales increased by 19% to $36 million, representing 68% of total sales, and up 67% from the previous year [28] - Premium alloy sales remained stable compared to the first quarter but were up 49% year-over-year [14] - Heavy equipment sales decreased by 11% from the first quarter and 24% from the second quarter of 2021 [33] Market Data and Key Metrics Changes - The oil and gas market saw sales of $4.7 million, a 19% increase year-over-year, marking the highest sales since 2019 [35] - The power generation market experienced a 72% sequential increase in sales, totaling $2.2 million [39] - General industrial market sales declined by 45% from the first quarter and 18% year-over-year [41] Company Strategy and Development Direction - The company is focused on expanding its remelting capabilities and has broken ground on a $15 million vacuum arc remelt facility [9][25] - The management emphasized the importance of addressing supply chain challenges and labor availability to meet production commitments [70][71] - The company aims to leverage its record backlog and new product development to increase sales and gross margins through 2023 [56][59] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the aerospace and defense market demand, despite ongoing supply chain challenges [32][59] - The company anticipates higher activity levels in the second half of the year, which should positively impact gross profit margins [17][64] - Management acknowledged the complexities of the current labor market and the strategies implemented to attract and retain employees [70][72] Other Important Information - The company faced a liquid metal spill that caused a 7-week unplanned outage, but operations have since resumed [8][15] - Total debt increased to $84 million, primarily due to working capital needs, while liquidity remained adequate at $26 million [21][54] - The company was recognized by Rolls-Royce as a high-performing supplier, highlighting its quality and service [10][59] Q&A Session Summary Question: Outlook on margins and absorption issues from the spill - Management expects margins to improve, with higher shipments and sales dollars, despite a projected 10% decrease in surcharges [63][64] Question: Capital expenditures and working capital outlook - Capital spending is estimated to be around $18 million for the year, with expectations of $10 million to $13 million in the second half [66][67] Question: Labor availability challenges - Management discussed the global labor issue and the strategies implemented to overcome these challenges, including increased use of contractors and aggressive recruiting efforts [70][71]