The following is a summary of the Universal Stainless & Alloy Products, Inc. (USAP) Q1 2024 Earnings Call Transcript:

Financial Performance:

• Universal Stainless & Alloy Products, Inc. reported a Q1 2024 gross margin of 18.9%, the highest in 12 years.

• The company achieved an operating income of $7.3 million, a 51% increase over the previous year. Net income rose nearly 60% to $4.1 million.

• Sales for Q1 totalled $77.6 million, marking the second strongest quarter in company history. Record quarterly sales are anticipated for the rest of the year due to strong aerospace market demand.

• The company reduced their total debt by $4.3 million in the first quarter of 2024 and plans further reductions throughout the year.

Business Progress:

• The company's strategic focus on premium alloys has yielded a broader customer base, richer product mix, and increased earnings power. Notably, an 18-ton VIM furnace and a new box furnace were ordered in Q1 to expand premium alloy capabilities.

• Robust aerospace industry sales, which comprise the company's largest market, totaled $60.2 million in Q1 2024, indicating strong demand despite production issues faced by major customer, Boeing.

• The defense segment, 15-20% of aerospace sales, is gaining importance due to increased defense spending. Also, there is perceived growth in the semiconductor market especially in the second half of 2024.

• The company is striving to reduce its net debt in 2024 through capital management and positive cash flow. Further investment in their facilities is planned throughout the year.

More details: Universal Stainless & Alloy Products IR

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