As the U.S. economy continues recovery from the COVID-19 pandemic, refiners and distributors of industrial materials have resumed more normal operating conditions. Supply chain disruptions appear to have been corrected. Haynes International produces nickel and cobalt-based alloys in various form factors for use in jet engines, gas turbine engines, industrial heating and other equipment. Nickel and cobalt are also important disposable materials for use in hazardous waste treatment, power plant emissions control and chemicals processing.
In the most recent fiscal year ending September 2022, Haynes reported $490.5 million in total sales, on which it earned $45.1 million in net income or $3.57 per share. Investment in inventories for future growth led to the net usage of $79.4 million in cash resources in the twelve-month period. Without the inventory build up, we estimate the Company would have generated more than $30 million in operating cash flow.
Haynes has begun the current 2023 fiscal year with a surge in growth at the top-line to $132.7 million in total sales in the first fiscal quarter ending December 2022. This compares to $99.4 million in the same period in the previous fiscal year. Earnings in the quarter soared to $0.61 per share versus $0.37 a year ago. While inventory build-up continues to bite into cash resources, we believe the investment will continue to drive growth as reported in the recent quarter.
Please register and subscribe to view more details in the full 6-page report dated March 27, 2023, including rating and price target.