Haynes International Inc. (HAYN, Financial) filed Annual Report for the period ended 2012-09-30.
Haynes International, Inc. has a market cap of $615.6 million; its shares were traded at around $46.96 with a P/E ratio of 12.7 and P/S ratio of 1.1. The dividend yield of Haynes International, Inc. stocks is 1.8%.
Controllable working capital, which includes accounts receivable, inventory, accounts payable and accrued expenses, increased from $304.1 million to $311.2 million from the end of the third quarter of fiscal 2012 to the end of the fourth quarter of fiscal 2012. This increase of $7.1 million, or 2.3%, in controllable working capital resulted from a higher accounts receivable balance and a reduction in accounts payable balance between periods, partially offset by a sharp reduction in inventory. The accounts receivable balance increased due to the increased amount of sales in the fourth quarter of fiscal 2012 compared to the previous quarter together with the shipment of a majority of the sales in the latter part of the quarter, including the majority of the oil and gas project order referenced above. The lower inventory level was a result of both the increased sales in the quarter and reduced melting during the fourth quarter due to utilization of material pre-melted and staged at the end of the third quarter to offset maintenance outages of melting equipment scheduled for the fourth fiscal quarter. Corresponding with the inventory reduction of $28.2 million, a reduction of 9.7% for the quarter, the accounts payable balance declined by $16.0 million, or 23.2%, due to reduced material purchases. Although net controllable working capital increased from quarter to quarter, working capital as a percentage of sales decreased in the fourth quarter of fiscal 2012, when compared to the third quarter, due to the increased level of sales and lower inventory during the quarter for the reasons noted above. It is anticipated that controllable working capital will decline through the first quarter of fiscal 2013 due to the collection of receivables, improving both the cash balance at the end of the first quarter of fiscal 2013 and also the working capital as a percentage of sales.
Selling, General and Administrative Expense. Selling, general and administrative expense was $40.7 million for fiscal 2012, a decrease of $0.6 million, or 1.3%, from $41.2 million in fiscal 2011 due to reduced international sales expenses, primarily from transition of the French service center into a sales office. Selling, general and administrative expenses as a percentage of net revenues decreased to 7.0% for fiscal 2012, compared to 7.6% for fiscal 2011, due to increased revenues and decreased expenses.
Selling, General and Administrative Expense. Selling, general and administrative expense was $41.2 million for fiscal 2011, an increase of $5.7 million, or 16.2%, from $35.5 million in fiscal 2010 due to higher headcount and personnel costs as well as higher business activity resulting in increased administrative and sales and marketing expenses. Selling, general and administrative expenses as a percentage of net revenues decreased to 7.6% for fiscal 2011, compared to 9.3% for fiscal 2010, due to increased revenues.
Income Taxes. Income tax expense was $18.3 million in fiscal 2011, an increase of $11.6 million from an expense of $6.7 million in fiscal 2010, due primarily to higher pretax income generated in fiscal 2011. The effective tax rate for fiscal 2011 was 37.0%, compared to 43.1% in fiscal 2010. During the third quarter of fiscal 2011, Indiana enacted a corporate income tax rate decrease from 8.5% to 6.5% to be phased in over a period of four years. Additional income tax expense of $0.7 million was recorded in the quarter reflecting our estimate of the decrease in the deferred tax asset, due to the lower state income tax rate. The prior year effective tax rate of 43.1% was primarily due to the impact of fixed permanent items on lower pretax earnings.
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Haynes International, Inc. has a market cap of $615.6 million; its shares were traded at around $46.96 with a P/E ratio of 12.7 and P/S ratio of 1.1. The dividend yield of Haynes International, Inc. stocks is 1.8%.
Highlight of Business Operations:
Other Comprehensive Loss account. The amount of this actuarial loss for the years ended September 30, 2009, 2010, 2011 and 2012 was $69,094, $27,148, $22,495 and $50,121, respectively, which has created a cumulative four year actuarial loss of $168,858. On a prospective basis, if interest rates were to rise, this would cause a decrease in the liability and accumulated other comprehensive loss. Prior to fiscal 2009, many actions were taken to reduce this liability such as: i) effective second quarter of fiscal 2007, capping the Company's contributions to the retiree health care costs at $5,000 annually (resulting in a $46,300 liability reduction), ii) effective first quarter of fiscal 2008, freezing the pension benefit accruals for all non-union employees in the U.S. (resulted in a $8,191 liability reduction), and iii) closing the pension plans to new entrants for both non-union employees (effective 12/31/2005) and union employees (effective 6/30/2007). (3)The Company defines backlog to include firm commitments from customers for delivery of product at established prices. Approximately 30% of the orders in the backlog at any given time include prices that are subject to adjustment based on changes in raw material costs. Historically, approximately 75% of the backlog orders have shipped within six months and approximately 90% have shipped within 12 months. The backlog figures do not typically reflect that portion of the business conducted at service and sales centers on a spot or "just-in-time" basis. (4)Represents the average price for a cash buyer as reported by the London Metals Exchange for the 30 days ending on the last day of the period presented.Controllable working capital, which includes accounts receivable, inventory, accounts payable and accrued expenses, increased from $304.1 million to $311.2 million from the end of the third quarter of fiscal 2012 to the end of the fourth quarter of fiscal 2012. This increase of $7.1 million, or 2.3%, in controllable working capital resulted from a higher accounts receivable balance and a reduction in accounts payable balance between periods, partially offset by a sharp reduction in inventory. The accounts receivable balance increased due to the increased amount of sales in the fourth quarter of fiscal 2012 compared to the previous quarter together with the shipment of a majority of the sales in the latter part of the quarter, including the majority of the oil and gas project order referenced above. The lower inventory level was a result of both the increased sales in the quarter and reduced melting during the fourth quarter due to utilization of material pre-melted and staged at the end of the third quarter to offset maintenance outages of melting equipment scheduled for the fourth fiscal quarter. Corresponding with the inventory reduction of $28.2 million, a reduction of 9.7% for the quarter, the accounts payable balance declined by $16.0 million, or 23.2%, due to reduced material purchases. Although net controllable working capital increased from quarter to quarter, working capital as a percentage of sales decreased in the fourth quarter of fiscal 2012, when compared to the third quarter, due to the increased level of sales and lower inventory during the quarter for the reasons noted above. It is anticipated that controllable working capital will decline through the first quarter of fiscal 2013 due to the collection of receivables, improving both the cash balance at the end of the first quarter of fiscal 2013 and also the working capital as a percentage of sales.
Selling, General and Administrative Expense. Selling, general and administrative expense was $40.7 million for fiscal 2012, a decrease of $0.6 million, or 1.3%, from $41.2 million in fiscal 2011 due to reduced international sales expenses, primarily from transition of the French service center into a sales office. Selling, general and administrative expenses as a percentage of net revenues decreased to 7.0% for fiscal 2012, compared to 7.6% for fiscal 2011, due to increased revenues and decreased expenses.
Selling, General and Administrative Expense. Selling, general and administrative expense was $41.2 million for fiscal 2011, an increase of $5.7 million, or 16.2%, from $35.5 million in fiscal 2010 due to higher headcount and personnel costs as well as higher business activity resulting in increased administrative and sales and marketing expenses. Selling, general and administrative expenses as a percentage of net revenues decreased to 7.6% for fiscal 2011, compared to 9.3% for fiscal 2010, due to increased revenues.
Income Taxes. Income tax expense was $18.3 million in fiscal 2011, an increase of $11.6 million from an expense of $6.7 million in fiscal 2010, due primarily to higher pretax income generated in fiscal 2011. The effective tax rate for fiscal 2011 was 37.0%, compared to 43.1% in fiscal 2010. During the third quarter of fiscal 2011, Indiana enacted a corporate income tax rate decrease from 8.5% to 6.5% to be phased in over a period of four years. Additional income tax expense of $0.7 million was recorded in the quarter reflecting our estimate of the decrease in the deferred tax asset, due to the lower state income tax rate. The prior year effective tax rate of 43.1% was primarily due to the impact of fixed permanent items on lower pretax earnings.
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