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Actionable news in HAYN: Haynes International, Inc.,

Haynes: Vice President Of Finance And Chief Financial Officer Haynes International, Inc.

The following excerpt is from the company's SEC filing.

765-456-6102

HAYNES INTERNATIONAL, INC. REPORTS

FOURTH QUARTER AND FISCAL 2015 FINANCIAL RESULTS

Fourth quarter net revenues of $

million and net income of $

million, or $0.

per diluted share, for the three months ended September 30, 201

, compared to net revenues of $

$0.51

per diluted share, for the same period of fiscal 201

Net revenues of $487.6 million and net income of $

per diluted share, for fiscal 201

Backlog of $185.8 million at September 30, 2015, a decrease of 3.

< br>Capital

spending and acquisitions for fiscal 2015 of $33.1

million. Capital investment of approximately $35.0 million expected in fiscal 2016.

Regular quarterly cash dividend of $0.22 per outstanding share of the Company’s common stock declared.

KOKOMO, IN

November

– Haynes International, Inc. (NASDAQ GM: HAYN) (the “Company”), a leading developer, manufacturer and marketer of technologically advanced high-performance alloys, today reported financial results for the fourth quarter and fiscal year ended September 30, 201

. In addition, the Company announced that its Board of Directors has authorized a quarterly cash dividend of $0.22 per outstanding share.

“Over the fourth quarter of fiscal 2015, business conditions

became increasing

challenging with nickel prices dropping another 23%

during the quarter

and our business in the

hemical

rocess

ing market and in

Asia-Pacific

region

remaining soft.

However,

ontinued shipments of high-value specialty application projects

with attractive margins

mitigated these headwinds

supported our margins,” said Mark Comerford, President and Chief Executive Officer. “Our shipments to the

erospace market also held up well

reflecting a better flow of inventory in the aerospace supply chain. Our aerospace sheet

tubing

products are booked well into the second half of fiscal 2016. We are targeting our capital spending in fiscal 2016 to removing bottlenecks and enhancing our delivery reliability

especially given the expected growth of the new aerospace engine platforms in the coming years.”

Quarter Results

Net Revenues.

Net revenues were $117.0 million in the fourth quarter of fiscal 2015, a decrease of 2.6% from $120.1 million in the same period of fiscal 2014. Volume was 5.0 million pounds in the fourth quarter of fiscal 2015, a decrease of 10.3% from 5.6 million pounds in the same period of fiscal 2014. The decrease in volume, which is most pronounced in the chemical processing and land-based gas turbines market

, is primarily due to customers holding off orders because of the decline in the market price of nickel and lower base-business demand. The product

average selling price was $21.96 per pound in the fourth quarter of fiscal 2015, an increase of 5.9% from $20.73 per pound in the same period of fiscal 2014. The

product

average selling price increased as a result of several factors, including the following: change in product mix, representing approximately $2.56 of the increase, along with increased pricing, representing approximately $1.19 of

the increase, partially offset by lower raw material market prices, which represented approximately $2.52 per pound of a decrease.

Cost of Sales.

Cost of sales was $95.6 million, or 81.7% of net revenues, in the fourth quarter of fiscal 2015 compared to $101.1 million, or 84.2% of net revenues, in the same period of fiscal 2014. Cost of sales in the fourth quarter of fiscal 2015 decreased by $5.5 million as compared to the same period of fiscal 2014 due to lower volumes and lower raw material costs relative to the same period of fiscal 2014, partially offset by higher manufacturing costs due to the higher-cost mix.

Gross Profit.

As a result of the above factors, gross profit was $21.4 million for the fourth quarter of fiscal 2015, an increase of $2.5 million from the same period of fiscal 2014. Gross margin as a percentage of net revenue increased to 18.3% in the fourth quarter of fiscal 2015 as compared to 15.8% in the same period of fiscal 2014.

The increase in gross margin as a percentage of net revenue is primarily attributable to a more profitable mix of products sold in fiscal 2015.

Selling, General and Administrative Expense.

Selling, general and administrative expense was $10.8 million for the fourth quarter of fiscal 2015, an increase of $1.6 million from the same period of fiscal 2014. The increase in expense was primarily driven by lower foreign exchange gains and higher incentive compensation as compared to the fourth quarter of fiscal 2014. Selling, general and administrative expense as a percentage of net revenues increased to 9.2% for the fourth quarter of fiscal 2015 compared to 7.6% for the same period of fiscal 2014.

Research and Technical Expense.

Research and technical expense was $0.9 million, or 0.8% of revenue, for the fourth quarter of fiscal 2015, compared to $0.9 million, or 0.8% of revenue, in the same period of fiscal 2014.

Operating Income/(Loss).

As a result of the above factors, operating income in the fourth quarter of fiscal 2015 was $9.7 million compared to $8.8 million in the same period of fiscal 2014.

Income Taxes.

Income tax expense was $3.6 million in the fourth quarter of fiscal 2015, an increase of $1.1 million from $2.5 million in the fourth quarter of fiscal 2014. The effective tax rate for the fourth quarter of fiscal 2015 was 38.3%, compared to 27.9% in the same period of fiscal 2014.

The Company’s effective tax rate was higher in the fourth quarter of fiscal 2015 primarily due to a lower proportion of taxable earnings in foreign jurisdictions as compared to the fourth quarter of fiscal 2014

Net Income/(Loss).

As a result of the above factors, net income in the fourth quarter of fiscal 2015 was $5.8 million, a decrease of $0.6 million from $6.4 million in the same period of fiscal 2014.

Fiscal 2015 Results

Net revenues were $487.6 million in fiscal 2015, an increase of 7.1% from $455.4 million in fiscal 2014, due to an increase in average selling price per pound partially offset by a decrease in volume. The product average selling price was $22.75 per pound in fiscal 2015, an increase of 12.1%, or $2.45, from $20.30 per pound in fiscal 2014. Volume was 20.3 million pounds in fiscal 2015, a decrease of 6.5% from 21.7 million pounds in fiscal 2014 with reductions primarily in the chemical processing and land-based gas turbines markets. Product average selling price increased due to a combination of the following factors: a change to a higher-value product mix, which represented approximately $2.79 per pound of an increase; increased customer demand due to the end of supply chain destocking, representing approximately $0.49 per pound of an increase, partially offset by lower raw material market prices, which represented a decrease of approximately $0.83 per pound.

Cost of sales was $394.0 million, or 80.8% of net revenues, in fiscal 2015 compared to $408.1 million, or 89.6% of net revenues, in fiscal 2014. Cost of sales in fiscal 2015 decreased by $14.1 million as compared to fiscal 2014 primarily due to lower volume, partially offset by a higher-value product mix sold.

As a result of the above factors, gross margin was $93.7 million for fiscal 2015, an increase of $46.4 million from $47.3 million in fiscal 2014. Gross margin as a percentage of net revenue increased to 19.2% in fiscal 2015 as compared to 10.4% in fiscal 2014. The increase in gross profit as a percentage of net revenue is primarily attributable to increased average selling prices and increased volumes of higher-value products, including proprietary and specialty alloy products related to specialty application projects in fiscal 2015.

Selling, general and administrative expense was $42.6 million for fiscal 2015, an increase of $3.9 million, or 10.0%, from $38.7 million in fiscal 2014. Selling, general and administrative expenses

as a percentage of net revenues increased to 8.7% for fiscal 2015, compared to 8.5% for fiscal 2014. Higher incentive compensation and commissions as compared to the prior year were partially offset by foreign currency gains.

Research and technical expense was $3.6 million, or 0.7% of revenue, for fiscal 2015, compared to $3.6 million, or 0.8% of net revenue, in fiscal 2014.

Operating Income.

As a result of the above factors, operating income in fiscal 2015 was $47.5 million, compared to operating income of $5.0 million in fiscal 2014.

Income tax expense was $16.7 million in fiscal 2015, an increase of $15.3 million from $1.4 million in fiscal 2014, due...


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