Synalloy Corp. (SYNL, Financial) filed Quarterly Report for the period ended 2012-03-31.
Synalloy Corp has a market cap of $83.1 million; its shares were traded at around $12 with a P/E ratio of 18 and P/S ratio of 0.5. The dividend yield of Synalloy Corp stocks is 1.9%.
Sales for the Metals Segment in the first quarter of 2012 totaled $36,022,000, an increase of 15 percent over the same quarter last year. Operating income was $1,571,000 and $3,955,000 for the first quarters of 2012 and 2011, respectively. The sales increase resulted from a 19 percent increase in unit volumes partially offset by a four percent decrease in average selling prices. The Segment experienced a favorable product mix for the first quarter of 2012 with higher priced non-commodity unit volume increasing 48 percent while commodity unit volume increased five percent. The volume growth was due to continued strength in special alloys and non-commodity stainless steel pipe as projects and distributor restocking remain strong. The Metals Segment is also focusing on international sales efforts, which continue to show year over year sales growth. Operating income for the first quarter declined from the same period last year due to two factors. Declining nickel prices resulted in inventory losses in the first quarter of 2012 of approximately $907,000. For the same period last year, rising nickel prices produced inventory profits of $308,000. The impact to reported earnings was a negative swing of approximately $0.12 per share. In addition, operating income in the first quarter of the prior year for our fabrication unit was favorably affected by higher unit selling prices as a result of the completion of several large scale lump-sum jobs. Demand for our manufactured pipe remains relatively strong, while the fabrication unit continues to deal with excess industry capacity and margin compression.
The Company s cash balance increased from $110,000 at the end of 2011 to $115,000 as of March 31, 2012. As a result of the higher Metals Segment sales activity during the first quarter of 2012, compared to the fourth quarter of the prior year, with a significant portion of the increase occurring in the last half of the quarter, accounts receivable at March 31, 2012 increased by $6,039,000. Even though inventory for the first quarter increased $765,000, raw material purchases increased significantly in March 2012 in support of projected 2012 sales requirements. This resulted in accounts payable increasing by $5,011,000 at the end of the first quarter of 2012 compared to the prior year-end balance. Capital expenditures for the first quarter of 2012 were $525,000 and the Company received life insurance proceeds of $734,000 related to the death of a former officer of the Company. These items contributed to the Company having $6,683,000 of bank debt outstanding as of March 31, 2012.
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Synalloy Corp has a market cap of $83.1 million; its shares were traded at around $12 with a P/E ratio of 18 and P/S ratio of 0.5. The dividend yield of Synalloy Corp stocks is 1.9%.
Highlight of Business Operations:
Consolidated sales for the first quarter of 2012 increased eleven percent to $47,372,000 compared to $42,742,000 for the same period one year ago. The Company showed net earnings of $1,337,000 or $0.21 per share for the first quarter of 2012 compared to $2,500,000 or $0.39 per share for the first quarter of 2011.Sales for the Metals Segment in the first quarter of 2012 totaled $36,022,000, an increase of 15 percent over the same quarter last year. Operating income was $1,571,000 and $3,955,000 for the first quarters of 2012 and 2011, respectively. The sales increase resulted from a 19 percent increase in unit volumes partially offset by a four percent decrease in average selling prices. The Segment experienced a favorable product mix for the first quarter of 2012 with higher priced non-commodity unit volume increasing 48 percent while commodity unit volume increased five percent. The volume growth was due to continued strength in special alloys and non-commodity stainless steel pipe as projects and distributor restocking remain strong. The Metals Segment is also focusing on international sales efforts, which continue to show year over year sales growth. Operating income for the first quarter declined from the same period last year due to two factors. Declining nickel prices resulted in inventory losses in the first quarter of 2012 of approximately $907,000. For the same period last year, rising nickel prices produced inventory profits of $308,000. The impact to reported earnings was a negative swing of approximately $0.12 per share. In addition, operating income in the first quarter of the prior year for our fabrication unit was favorably affected by higher unit selling prices as a result of the completion of several large scale lump-sum jobs. Demand for our manufactured pipe remains relatively strong, while the fabrication unit continues to deal with excess industry capacity and margin compression.
The Company s cash balance increased from $110,000 at the end of 2011 to $115,000 as of March 31, 2012. As a result of the higher Metals Segment sales activity during the first quarter of 2012, compared to the fourth quarter of the prior year, with a significant portion of the increase occurring in the last half of the quarter, accounts receivable at March 31, 2012 increased by $6,039,000. Even though inventory for the first quarter increased $765,000, raw material purchases increased significantly in March 2012 in support of projected 2012 sales requirements. This resulted in accounts payable increasing by $5,011,000 at the end of the first quarter of 2012 compared to the prior year-end balance. Capital expenditures for the first quarter of 2012 were $525,000 and the Company received life insurance proceeds of $734,000 related to the death of a former officer of the Company. These items contributed to the Company having $6,683,000 of bank debt outstanding as of March 31, 2012.
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