Haynes International, Inc. (NASDAQ:HAYN) Q2 2018 Earnings Conference Call - Preliminary Transcript

May 04, 2018 • 09:00 am ET

Previous

Haynes International, Inc. (NASDAQ:HAYN) Q2 2018 Earnings Conference Call - Preliminary Transcript

Share
Close

Loading Event

Loading Transcript

Presentation
Operator
Operator

Greetings and welcome to the Haynes International Second Quarter Fiscal 2018 Earnings Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. (Operator Instructions) As a reminder, this conference is being recorded.

I will now like to turn the conference over to your host, David Van Bibber, Controller and Chief Accounting Officer.

Executive
David Van Bibber

Thank you very much for joining us today. With me today are Mark Comerford, President and CEO of Haynes International; and Dan Maudlin, Vice President and Chief Financial Officer.

Before we get started, I would like to read a brief cautionary note regarding forward-looking statements. This conference call contains statements that are forward-looking within the meaning of the Private Securities Litigation Reform Act of 1995 and Section 21E of the Securities and Exchange Act of 1934. The words believe, anticipate, plan and similar expressions are intended to identify forward-looking statements.

Although we believe our plans, intentions and expectations regarding or suggested by such forward-looking statements are reasonable, such statements are subject to a number of risks and uncertainties, and we can provide no assurance that such plans, intentions or expectations will be achieved.

Many of these risks are discussed in detail in the company's filings with the Securities and Exchange Commission, in particular, Form 10-K, for the fiscal year ended September 30, 2017. The company undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

With that, let me turn the call over to Mark.

Executive
Mark Comerford

Thank you, Dave. Good morning, everyone, and thanks for joining us today. Hopefully, you've all seen the press release and had a chance to review it. We'll follow our standard agenda in today's call. I'll open with comments about the business and our end markets, and then Dan will give you greater detail on the financial results.

The momentum we talked about in our last call in February continue to strengthen this quarter. Sequentially, we move from just under $90 million in shipments to over $110 million in shipments in the quarter and on top of that, we saw the backlog for unfulfilled orders increase. As we mentioned last time, we're still invoicing some of the lower margin orders we took two or three quarters ago, so we have not yet seen the corresponding uplifting profitability.

We still have another quarter of lower margin products to work through, but as we mentioned in the press release, each month during the quarter got better, ending with March being our best month in about two years for transactional business, along with being our best order entry month in about that same timeframe. And if I'm not mistaken, I think our backlog is the highest it has been in probably two years -- might even be almost three years and with the IGT business being so soft, it's a very high quality backlog that we're looking there right now.

Returning to the second quarter, net