Haynes International reports $7.7 million Q1 profit

Tyler Juranovich, Kokomo Tribune, Ind.
·3 min read

Feb. 3—Following a strong fiscal year 2022, Kokomo-based Haynes International has started the first quarter of fiscal year 2023 with yet another profit but missed estimates on earnings per share.

The alloy products maker on Friday reported first quarter net income of $7.7 million, and earning per share of $0.61, on net revenues of $132.7 million. Analyst estimates were $0.66 per share, according to Zacks Consensus Estimate. Both the first quarter net income and net revenues, however, were higher year-over-year by 50% and 33.45, respectively.

Increased revenues and profits were largely attributed to strong sales in the aerospace and the industrial gas turbine markets and increased margins due to higher prices. The company's backlog, which it defines as "firm commitments from customers for delivery of product at established price," is currently at a company record high of $408.2 million.

As a result, the company is forecasting even higher second quarter revenue and profits and "sustained growth and earnings" over the next three years and operating cash flow to turn positive beginning mid-fiscal year 2023.

"My point of emphasis here is that, yes, our team has accomplished a great deal, but also that we believe based on the markets we serve and the actions our team continues to take, that the best is yet to come for us," Michael Shor, president and CEO of Haynes International, said during the company's Friday morning earnings call.

In addition, the company announced a quarterly cash dividend of $0.22 per share to be paid March 15 to stockholders of record at the close of business on March 1. Its stock, as of closing Friday, was $55.25 per share, down more than 3% for the day. Over the last year, though, the stock has performed phenomenally well and is up nearly 50%.

Notably, Shor said during the earnings call Q&A section that the company is "nearly fully staffed" at its Kokomo manufacturing facility, 2000 W. Defenbaugh St., having hired over 100 people in the last several months, with 12 more starting Monday.

"So we feel great in our largest operation in Kokomo where we are," Shor said. "It's just from a safety perspective and from a quality perspective, making sure that people are fully trained on their operation before we let them loose."

EXECUTIVE SALARIES

Last month, Haynes International filed with the SEC its fiscal 2022 executive compensation.

Here are what the company's top executives earned in fiscal 2022:

Shor:

* Base salary, $694,643

* Stock awards, $959,654

* Options, $268,107

* Non-equity incentive plan compensation, $804,000

* Other (dividends, 401k match, life insurance, disability insurance) $79,663

* Total: $2,806,067

Daniel Maudlin, VP of finance and CFO:

* Base salary, $342,069

* Stock awards, $265,928

* Options, $74,349

* Non-equity incentive plan compensation, $321,750

* Other $36,989

* Total: $1,041,085

David Stroble, VP of manufacturing:

* Base salary, $321,404

* Stock awards, $194,454

* Options, $54,372

* Non-equity incentive plan compensation, $279,000

* Other $32,889

* Total: $882,119

Marlin Losch, VP of sales and distribution:

* Base salary, $321,058

* Stock awards, $194,454

* Options, $194,454

* Non-equity incentive plan compensation, $279,000

* Other $33,688

* Total: $882,572

Scott Pinkham, VP of tube and wire products:

* Base salary, $306,070

* Stock awards, $184,994

* Options, $51,669

* Non-equity incentive plan compensation, $265,500

* Other $31,559

* Total: $839,792

Tyler Juranovich can be reached at 765-454-8577, by email at tyler.juranovich@kokomotribune.com or on Twitter at @tylerjuranovich.