Synalloy (SYNL) Reports Q1 EPS of $0.07 on Revenues of $84.8M

Synalloy (NASDAQ: SYNL) reported Q1 EPS of $0.07, versus $0.43 reported last year. Revenue for the quarter came in at $84.8 million, versus $58.5 million reported last year.

The Company also reports its performance utilizing two non-GAAP financial measures: Adjusted Net Income and Adjusted EBITDA. The Company's performance, as calculated under the two measures, is as follows:

• Adjusted Net Income for the first quarter of 2019 was $0.6 million, or $0.07 adjusted diluted earnings per share, a decrease of $3.1 million from Adjusted Net Income of $3.7 million, or $0.43 adjusted diluted earnings per share for the first quarter of 2018.
• Adjusted EBITDA decreased $2.9 million for the first quarter of 2019 to $4.8 million (5.6% of sales), from $7.6 million (13.0% of sales) for the first quarter of 2018.

“We are very pleased with the Company’s performance in the first quarter, with all business units performing in-line or exceeding the 2019 forecast for revenue and earnings,” said Craig C. Bram, President and CEO. “The ASTI acquisition exceeded our expectations in the first quarter, both in terms of sales and profits. The markets for high-end ornamental stainless steel tubing remain robust and we are excited about what this new business can contribute going forward. As previously noted, metal price adjustments in the commodity welded stainless steel pipe and tube product line swung from a profit of $2.5 million in the first quarter of 2018 to a loss of $3.4 million in the first quarter of this year. Stainless steel surcharges in the first quarter of this year averaged about 25% less than at the end of the third quarter of last year, generating inventory losses over the past five months. However, assuming surcharges hold at current levels, we anticipate metal price adjustments to reverse and begin to generate profits starting in April. The Chemicals Segment continued to show organic growth in revenue and profit in the first quarter and the pipeline of new products is encouraging,” said Bram.

For earnings history and earnings-related data on Synalloy (SYNL) click here.

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