Synalloy (SYNL) Reports Q1 Loss of $0.08

Synalloy (NASDAQ: SYNL) reported Q1 EPS of ($0.08), versus $0.07 reported last year.

“The first quarter of this year was a continuation of the soft manufacturing economy that we witnessed in the second half of last year,” said Craig C. Bram, President and CEO. “In spite of the difficult pricing environment, Adjusted EBITDA in the first quarter was marginally higher than the fourth quarter of 2019. Approximately $1.5 million of the more than $6.0 million in savings from the cost cutting initiative we implemented proactively, discussed during our year-end Outlook, began to kick in during the first quarter at both the Segment and corporate levels, which positions us to more quickly return to profitability once the markets stabilize.”

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

• Adjusted Net Loss for the first quarter of 2020 was $0.7 million, or $0.08 adjusted diluted loss per share, a decrease of $1.4 million from Adjusted Net Income of $0.6 million, or $0.07 adjusted diluted earnings per share for the first quarter of 2019.
• Adjusted EBITDA decreased $2.2 million for the first quarter of 2020 to $2.6 million (3.5% of sales), from $4.8 million (5.6% of sales) for the first quarter of 2019.

“Pricing was under pressure for all products in the Metals Segment. Product mix improvements in the welded stainless-steel pipe product line helped to offset declining commodity alloy prices. North American consumption of welded stainless-steel pipe in the first quarter was annualizing at only 173 million pounds, 7% less than the level achieved in the 2016 recession. While volumes for ornamental tube and seamless carbon mechanical tube were up marginally over the fourth quarter of last year, pricing was down mid-single digit percentages due to the weak demand. Product mix in the Chemicals Segment improved over the previous quarter, but volume was also down,” said Mr. Bram.

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

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