Universal Stainless & Alloy Products, Inc. (NASDAQ:USAP) Q1 2024 Earnings Call Transcript

Chris Zimmer: It’s hard for us to quantify simply because of the majority of our product that flows through service centers and forgers. It’s hard to know where that metal is going to for new builds or MRO. But that is definitely a positive balance when we look at a slower build rate happening at Boeing. And again, that’s not impacting us yet. But the carriers had a plan to retire their legacy planes and get these new fuel-efficient planes into service. They’re having to continue the life of these legacy planes, which I know is increasing their maintenance side of operation and is helping us from an MRO standpoint. I know that, that’s happening, but it’s hard for us to quantify just how much of that shows up and it is impacted in our numbers.

Michael Leshock: Then lastly for me, just a clarification. You had mentioned you expect record quarterly sales and increased profitability for the rest of the year. Just want to make sure I understand that’s implying sequential increases each quarter.

Chris Zimmer: That’s right. And a lot of that is predicated upon the continued march that we have to ramp production. We’re taking a number of targeted initiatives to modernize our plant, really giving assistance to the labor force that we have and the leadership throughout the plants to enable us to continue that march ramping volume. And then from that, we continue to expect sequential improvement as we move through the year.

Michael Leshock: Great. Thank you. I appreciate all the color.

Chris Zimmer: No problem. Thanks, Mike. Have a good day.

Operator: [Operator Instructions] Okay. I’m showing no further questions at this time. I would now like to turn it back to Chris Zimmer for closing remarks.

Chris Zimmer: Thank you again for joining us this morning. 2024 got off to a strong start, and we expect increasing traction in our growth plan during the rest of the year. We look forward to updating you on our progress on our second quarter call. Have a good day.

Operator: Thank you for your participation in today’s conference. This does conclude the program. You may now disconnect.