Haynes International — Q2 FY2022 Earnings Presentation
16 slides from Haynes International's earnings presentation, May 2, 2022
Slide 1: Fiscal Year 2022 Second Quarter Results
Fiscal Year 2022 Second Quarter Results March 31, 2022 110 Years of Alloy, Process, and Product Innovation FY2022 1
Slide 2: Forward-looking statements
Forward-looking statements The information contained in this presentation, and in the oral statements made as part of the presentation, may include “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements relate to future events and exp
Slide 3: Our business continues to gain momentum
“Our business continues to gain momentum. Sequentially, our second quarter performance included a 17.7% revenue increase, a 210 basis point improvement in gross margin to 20%, and an 82% increase in net income to $8.5M, all with just 4.3 million pounds shipped.” Michael L. Shor, President and CEO of
Slide 4: More than a century of alloy innovation
More than a century of alloy innovation For 110 years, Haynes International has been a leading developer, manufacturer, and distributor of high‐performance nickel‐ and cobalt‐based alloys for use in high‐ temperature and corrosion applications. Our focus is on innovation, differentiation, and custom
Slide 5: More than 60% of our sales are from alloys we invented
More than 60% of our sales are from our HASTELLOY® and HAYNES® alloys we invented. Since 2003, our technical programs have yielded 9 new proprietary alloys. We currently have 22 published U.S. patents and applications. Alloy development is at the very heart of what we do. We don’t merely react to in
Slide 6: Our products are out of this world...literally
Our products are out of this world...literally. Our mission-critical alloys have flown on every Apollo and space shuttle flights, lowered the first Viking Mars Lander on August 20, 1975, and continue to be a part of historic space exploration missions. The Perseverance Rover Landed February 18, 2021
Slide 7: Haynes International- synonymous with high-performance alloys
Haynes International- synonymous with high-performance alloys. Our Manufacturing Facilities • Kokomo, Indiana: Melting and flat products • Arcadia, Louisiana: Tubular products • Mountain Home, North Carolina: Wire products Revenue by Product Forms Flat products (sheet, coil, plate, cut parts) 60% Tu
Slide 8: Key Markets Overview
Key Markets Overview Significant increase in order entry over the past quarter across each core market, including aerospace, which had $92.9 million in order entry and a 1.8 book-to-bill ratio. Backlog was $280.7 million at March 31, 2022, an increase of $63.2 million, or 29.1%, during the quarter.
Slide 9: Aerospace Market
Aerospace Market Aerospace is a core strength for us, and it is our largest market. This quarter showed continued recovery, with both revenue and backlog growth. We expect to be back to pre-pandemic monthly shipment levels in aerospace by the end of this fiscal year. Net revenue at $52.9 million, up
Slide 10: Chemical Processing Industry Market
Net revenue at $22.9 million, up 52% from last year and 31% sequentially. Backlog increased 19% sequentially. CPI accounted for 20% of our revenue this quarter. Volume is 870,000 lbs, up 28% from last year and 10% sequentially. Average selling price at $26.26/lb. Chemical Processing Industry Market
Slide 11: Industrial Gas Turbine Market
Net revenue at $24.8 million; up 51% from last year and 70% sequentially. Backlog increased 23% sequentially.. The industrial gas turbine market accounted for 21% of our revenue this quarter. Volume is 1,416,000 lbs, up 33% over last year and 77% sequentially. Average selling price is $17.51/lb. Ind
Slide 12: Other Markets and Other Revenue
Other Markets at $9.8 million, down (37)% from last year and (33)% sequentially. Other Revenue at $6.7 million, up 53% from last year and 52% sequentially. Other markets accounted for 8% of our revenue this quarter, and other revenue accounted for 6% of revenue. Volume in other markets is 244,000 lb
Slide 13: Gross margin recovery continues
FY 2019 FY2020 FY2021 FY22 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 kLbs Sold 4,330 5,165 5,121 5,424 4,222 4,326 3,171 2,947 2,792 3,522 3,730 3,966 3,877 4,338 Revenue $ (in millions) $107 $128 $126 $130 $109 $112 $81 $80 $72 $82 $88 $95 $99 $117 GM% 10.6% 11.5% 14.4% 16.4% 17.3% 17.3% 3.3% 4.9%
Slide 14: Our four foundational pillars create a compelling investment
Our four foundational pillars create a compelling investment Long-term relationships with blue-chip customer base Strategic capital investments position us to expand product and service capabilities and margins. Continuous improvements and focus on cost optimization Track record of returning capital
Slide 15: Reasons for optimism about the long-term future of Haynes
Reasons for optimism about the long-term future of Haynes Encouraging to see expanding profitability with the recovery of gross margin at 20.0%, now exceeding pre-pandemic levels. Further growth in volume and revenue are still ahead. This is driven by expected aerospace returning to pre-pandemic lev
Slide 16: Haynes International alloys developed and manufactured throughout our history
Haynes International alloys developed and manufactured throughout our history STELLITE® (1912) STELLITE® 6B (1913) HASTELLOY® A (1921) HASTELLOY® B (1923) HASTELLOY® C (1926) MULTIMET® (1949) HAYNES® 25 (1950) HASTELLOY® X (1952) HASTELLOY® C-276 (1968) HAYNES® 188 (1968) HASTELLOY® C-4 (1973) HASTE
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