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Argentina creates external debt unit, economy bill moves to Senate – Financial Post

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BUENOS AIRES — Argentina appointed a government team to kick off talks with creditors to renegotiate about $100 billion in sovereign debt as the new center-left administration of President Alberto Fernandez postponed payments on some of its short-term debt.

The “external debt sustainability management unit” was created in the context of the government’s sweeping economic bill, expected to be passed by the Senate later on Friday, according to a statement by the Secretariat of Finance.

The secretariat said it was inviting financial institutions and advisers to be part of a process that would allow “the recovery of external public debt sustainability.”

Fernandez, inaugurated Dec. 10, inherits an economic crisis, including annual inflation of more than 50% and an economy that is expected to contract for a third straight year in 2020. In addition to trying to get the economy back on track, the government must steer debt revamp talks with bondholders and other creditors, including the International Monetary Fund.

Earlier on Friday, after 20 hours of debate, Argentina’s lower House approved the government’s economic plan, which includes an array of tax increases on grains exports, personal property and foreign assets held abroad.

The Senate was expected to pass the measure, dubbed the “Social Solidarity and Production Reactivation,” Friday night.

The cornerstone of Fernandez’s program, the law aims to maintain fiscal balance to guarantee the future payment of public debt and, at the same time, expand social spending to boost the economy as Argentina struggles with higher poverty and increased unemployment.

Also on Friday, the government said it would postpone payments on some short-term notes known as “Letes” until Aug. 31, 2020. About $9 billion in such payments due to expire from Friday would be affected, according to a government source.

The postponement did not come as a surprise, according to Nikhil Sanghani, a London-based economist at Capital Economics, but longer-term concerns still linger for investors.

“The government has merely kicked the can down the road and maturity extensions alone will not be enough to resolve the debt problem. We think that it will have to pursue a large debt write-down next year,” Sanghani said.

Fitch downgraded Argentina to ‘RD,’ or “Restricted Default,” a credit rating applied to borrowers that have defaulted on one or more of its commitments while to continuing to meet others.

(Reporting by Walter Bianchi, Cassandra Garrison, Hugh Bronstein, Eliana Raszewski and Nicolas Misculin; additional reporting by Rodrigo Campos in New York; Editing by Alison Williams, Steve Orlofsky, Dan Grebler and Richard Chang)

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Gold's rally to slow, not stop, as global economy recovers: poll – The Globe and Mail

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Analysts and traders have downgraded their forecasts for gold but still expect prices to recover from current levels and many see it achieving record highs this year, a Reuters poll showed on Wednesday.

Traditionally seen as a safe place to store wealth, gold surged to a record level of $2,072.50 an ounce last summer as the coronavirus swept the globe.

But prices have since dipped to around $1,850 as the rollout of vaccines encourages investors to channel more money into assets such as equities that benefit from economic growth.

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Gold will average $1,900 an ounce during the January-March quarter, $1,925 an ounce for the full year and $1,908 in 2022, according to the median forecasts returned by a survey of 40 analysts and traders.

That is lower than the prediction from a similar poll three months ago that gold would average $1,965 in 2021.

“We expect gold to perform well in 2021, although at a slightly more subdued rate compared to 2020,” said Ross Norman, an independent analyst.

“We expect gold to score a fresh all-time high in 2021.”

“Financial markets remain vulnerable and we think investors will continue to see gold as the near perfect antidote,” he said.

Gold has benefited from action by central banks to slash interest rates and pump cash into the economy, which raises the threat of inflation and reduces returns on bonds, a competing asset class.

But while global economic recovery may weaken the dollar, helping gold by making it cheaper for buyers outside the United States, it also is likely to raise bond yields, making gold less attractive, said Julius Baer analyst Carsten Menke.

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Silver behaved in a similar way to gold last year, surging to $29.84 an ounce in the summer, its highest since 2013, before falling to around $25.

The poll returned median forecasts for prices to average $25.86 this year, a little lower than the prediction of $26.00 returned by the poll three months ago, and $25.30 in 2022.

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Economy

Gold's rally to slow, not stop, as global economy recovers: poll – The Globe and Mail

Published

 on


Analysts and traders have downgraded their forecasts for gold but still expect prices to recover from current levels and many see it achieving record highs this year, a Reuters poll showed on Wednesday.

Traditionally seen as a safe place to store wealth, gold surged to a record level of $2,072.50 an ounce last summer as the coronavirus swept the globe.

But prices have since dipped to around $1,850 as the rollout of vaccines encourages investors to channel more money into assets such as equities that benefit from economic growth.

Story continues below advertisement

Gold will average $1,900 an ounce during the January-March quarter, $1,925 an ounce for the full year and $1,908 in 2022, according to the median forecasts returned by a survey of 40 analysts and traders.

That is lower than the prediction from a similar poll three months ago that gold would average $1,965 in 2021.

“We expect gold to perform well in 2021, although at a slightly more subdued rate compared to 2020,” said Ross Norman, an independent analyst.

“We expect gold to score a fresh all-time high in 2021.”

“Financial markets remain vulnerable and we think investors will continue to see gold as the near perfect antidote,” he said.

Gold has benefited from action by central banks to slash interest rates and pump cash into the economy, which raises the threat of inflation and reduces returns on bonds, a competing asset class.

But while global economic recovery may weaken the dollar, helping gold by making it cheaper for buyers outside the United States, it also is likely to raise bond yields, making gold less attractive, said Julius Baer analyst Carsten Menke.

Story continues below advertisement

Silver behaved in a similar way to gold last year, surging to $29.84 an ounce in the summer, its highest since 2013, before falling to around $25.

The poll returned median forecasts for prices to average $25.86 this year, a little lower than the prediction of $26.00 returned by the poll three months ago, and $25.30 in 2022.

Be smart with your money. Get the latest investing insights delivered right to your inbox three times a week, with the Globe Investor newsletter. Sign up today.

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Economy

European Economy Lags China and U.S. on Pandemic Recovery – Yahoo Canada Finance

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GlobeNewswire

Universal Stainless Reports Fourth Quarter 2020 Results

Total debt reduced by $10.4 million and managed working capital declined by $19.2 million from Q3 2020 Q4 2020 Sales total $31.3 million; Premium alloy sales represent 19.1% of total Q4 salesQ4 2020 Net Loss of $7.3 million, or $0.83 per diluted share; Net loss is $4.6 million, or $0.52 per diluted share, excluding $3.8 million (pre-tax) of fixed cost absorption charges, a $0.3 million (pre-tax) loss on the sale of excess scrap and $0.7 million (pre-tax) gain on insurance proceedsEBITDA is a loss of $3.9 million in Q4 2020; Adjusted EBITDA is a loss of $0.2 million Quarter-end Backlog of $48.0 million versus $54.8 million at end of Q3 2020 BRIDGEVILLE, Pa., Jan. 27, 2021 (GLOBE NEWSWIRE) — Universal Stainless & Alloy Products, Inc. (Nasdaq: USAP) today reported net sales for the fourth quarter of 2020 of $31.3 million, a decrease of 16.3% from $37.4 million in the third quarter of 2020, and 43.2% lower than $55.2 million in the fourth quarter of 2019. Sales of premium alloys in the fourth quarter of 2020 were $6.0 million, or 19.1% of sales, compared with $9.2 million, or 24.5% of sales, in the third quarter of 2020, and $7.4 million, or 13.4% of sales, in the fourth quarter of 2019. Chairman, President and CEO Dennis Oates commented: “The fourth quarter was a challenging quarter as expected, and we continued to operate at low activity levels, which negatively impacted profitability. Our focus on liquidity continued, with positive results, as we achieved our cash targets and reduced debt by more than $10 million. While our revenues were down from the third quarter, our bookings activity improved. “Despite the challenging environment, we continue to see positive results within areas of our control, including increased efficiency of our operations as well as our quality programs. These favorable activities will allow for increased facility capacity and provide benefit as volumes increase. Most importantly, our safety performance, as measured by our OSHA recordable rate, marked a record low in 2020. “The pandemic continued to limit air travel worldwide and airlines reduced new plane orders, ultimately depressing aerospace product demand. We did see a bright spot with the return to service of the Boeing 737-MAX, which should begin to benefit new aircraft production into 2022 and 2023. Within the oil and gas markets, customers remain reluctant to place orders even with the rise in oil prices and rig counts. “Demand in the Heavy Equipment market was strong in the fourth quarter, especially for our products used in auto production and metals fabrication. Plate bookings have also remained strong. Growth in our General Industrial end market was especially strong in the quarter, led by semiconductor demand. In fact, sales to that end market for the quarter were at a near record level, and that strength is expected to continue in the coming months. “We saw positive signs in our order entry in the fourth quarter, which has increased each quarter from its 2020 low point in the second quarter. Cancellations further slowed and were at their lowest level in 2020. Fourth quarter premium alloy bookings also improved and were at the highest levels since the 2020 first quarter, with ongoing demand for defense and specialty applications. “Fourth quarter margins continued to be negatively impacted by lower activity levels and included fixed cost absorption direct charges. Margins were also negatively impacted by a $0.3 million loss on the sale of excess scrap, although that generated cash receipts of $0.7 million. Product mix was less favorable in the quarter due to lower shipments of premium alloys. “Our continued focus on working capital reduction in the fourth quarter resulted in continued reductions in inventory and debt levels. Both inventory and debt further declined from the third quarter, with inventory reduced by $9.6 million, and debt reduced by $10.4 million. For the full year, inventory has been reduced by $36.0 million and total debt is down $24.2 million, excluding PPP funds. We also tightly controlled our fourth quarter capital spend, limiting expenditures to $0.7 million. “Looking forward in 2021, we continue to expect measured improvement in activity levels as we move through the year, starting slowly in the first quarter. We will be focused on our strategic growth initiatives, which include strategic capital investment in our premium alloy production assets, including adding a vacuum arc remelt furnace and an 18-ton crucible to expand our capabilities and reduce costs.” Mr. Oates concluded: “Once again I want to commend our team for their efforts and the results they achieved during a prolonged period of difficult challenges. With the support of our customers and our commitment to producing the critical products required by our markets, we are fully focused on making tangible progress in 2021.” COVID-19 Response Summary Each of the Company’s facilities is an essential operation and continues to remain operational in accordance with the laws of the states in which the facilities are located.The Company continues to monitor the pandemic’s impact on the markets the Company serves, including the aerospace and oil & gas markets. The Company’s sales to the aerospace market have declined due to the reduction in air travel caused by the COVID-19 pandemic, as well as a sharp decline in aftermarket sales due to the significant reduction in air travel. The Company also has experienced extreme pressure in demand from the oil & gas market.On April 15, 2020, the Company entered into a $10.0 million term note pursuant to the Paycheck Protection Program (PPP) under the Coronavirus Aid, Relief, and Economic Security Act. The Company applied for full forgiveness of the PPP term note in the 2020 third quarter, and the PPP loan forgiveness process is currently underway.While the Company expects the effects of the pandemic and the related responses to continue to negatively impact its results of operations, cash flows and financial position, the uncertainty over the duration and severity of the economic and operational impacts of COVID-19 means the Company cannot reasonably estimate the related future impacts at this time.The Company continues to adapt its operations due to lower activity levels. As a result, the Company’s measures to align its cost structure with current forecasted revenue and operating levels are ongoing. Quarterly and Full Year Results of Operations For full year 2020, net sales totaled $179.7 million, compared with $243.0 million in full year 2019. Premium alloy sales in 2020 were $35.2 million, or 19.6% of sales, compared with $37.6 million, or 15.5% of sales, in 2019. The Company’s gross margin for the fourth quarter of 2020 was a loss of $5.1 million, or (16.2%) of sales, compared with a loss of $4.4 million, or (11.8%) of sales, in the third quarter of 2020, and a gross margin of $5.9 million, or 10.6% of sales, in the fourth quarter of 2019. Fourth quarter gross margin included $3.8 million of fixed cost absorption charges incurred due to reduced production levels, and $0.3 million loss on excess scrap sales. Excluding these charges, fourth quarter 2020 gross margin was a loss of $1.0 million, or (3.1%) of sales. Selling, general and administrative expenses were $4.2 million, or 13.4% of sales, in the fourth quarter of 2020, compared with $4.2 million, or 11.1% of sales, in the third quarter of 2020, and $5.3 million, or 9.5% of sales, in the fourth quarter of 2019. The net loss for the fourth quarter of 2020 was $7.3 million, or $0.83 per diluted share, compared with a net loss of $7.0 million, or $0.79 per diluted share, in the third quarter of 2020, and net income of $0.2 million, or $0.02 per diluted share, in the fourth quarter of 2019. The fourth quarter 2020 net loss, excluding $3.8 million (pre-tax) of fixed cost absorption charges, a $0.3 million (pre-tax) excess scrap sale loss, and gains of $0.7 million (pre-tax) from insurance proceeds, totaled $4.6 million, or $0.52 per diluted share. For full year 2020, the net loss was $19.0 million, or $2.16 per diluted share, compared with net income of $4.3 million, or $0.48 per diluted share, for 2019. Full year 2020 net loss, excluding $8.3 million (pre-tax) of fixed cost absorption charges, $0.7 million (pre-tax) of losses on excess scrap sales, $0.6 million (pre-tax) of employee severance costs and $1.0 million (pre-tax) of gains on insurance proceeds, totaled $12.4 million, or $1.40 per diluted share. The Company’s EBITDA for the fourth quarter of 2020 was a loss of $3.9 million, compared with a loss of $3.6 million in the third quarter of 2020, and positive EBITDA of $5.5 million in the fourth quarter of 2019. Fourth quarter 2020 adjusted EBITDA, excluding the fixed cost absorption charges, excess scrap sale losses, and insurance gain, was a loss of $0.2 million. Managed working capital was $114.1 million at December 31, 2020, compared with $133.3 million at September 30, 2020, and $141.3 million at the end of the fourth quarter of 2019. The 14.4% sequential decrease in managed working capital compared to the 2020 third quarter was due mainly to reduced inventory and accounts receivable levels. Inventory totaled $111.4 million at the end of the fourth quarter of 2020, a decrease of $9.6 million, or 7.9%, from $120.9 million at the end of the third quarter of 2020. Inventories have been reduced by $36.0 million, or 24.4%, since year-end 2019. Backlog (before surcharges) at December 31, 2020 was $48.0 million, compared with $54.8 million at September 30, 2020, and $119.1 million at the end of the 2019 fourth quarter. The Company’s total debt at December 31, 2020 was $50.2 million, a decrease of $10.4 million, or 17.1%, from September 30, 2020, and a decrease of $14.2 million, or 22.0%, from the end of 2019. Total debt at December 31, 2020 includes a $10.0 million term note, issued on April 15, 2020, pursuant to PPP. The Company has applied for full PPP loan forgiveness, and the forgiveness process is currently underway. Capital expenditures for the fourth quarter of 2020 totaled $0.7 million, compared with $1.3 million for the third quarter of 2020, and $4.0 million in the fourth quarter of 2019. Full year 2020 capital expenditures totaled $9.2 million. The Company expects capital expenditures in 2021 to approximate $11.0 million to support its strategic growth initiatives. Conference Call and Webcast The Company has scheduled a conference call for today, January 27th, at 10:00 a.m. (Eastern) to discuss fourth quarter 2020 results. Those wishing to listen to the live conference call via telephone should dial 706-679-0668, passcode 9091458. A simultaneous webcast will be available on the Company’s website at www.univstainless.com, and thereafter archived on the website through the end of the first quarter of 2021. About Universal Stainless & Alloy Products, Inc. Universal Stainless & Alloy Products, Inc., established in 1994 and headquartered in Bridgeville, PA, manufactures and markets semi-finished and finished specialty steels, including stainless steel, nickel alloys, tool steel and certain other alloyed steels. The Company’s products are used in a variety of industries, including aerospace, power generation, oil and gas, and heavy equipment manufacturing. More information is available at www.univstainless.com. Forward-Looking Information Safe Harbor Except for historical information contained herein, the statements in this release are forward-looking statements that are made pursuant to the “safe harbor” provision of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to differ materially from forecasted results. Those risks include, among others, the Company’s ability to maintain its relationships with its significant customers and market segments; the Company’s response to competitive factors in its industry that may adversely affect the market for finished products manufactured by the Company or its customers; uncertainty regarding the progress of the return to service of the Boeing 737 MAX aircraft; the Company’s ability to compete successfully with domestic and foreign producers of specialty steel products and products fashioned from alternative materials; changes in overall demand for the Company’s products and the prices at which the Company is able to sell its products in the aerospace industry, from which a substantial amount of our sales is derived; the Company’s ability to develop, commercialize, market and sell new applications and new products; the receipt, pricing and timing of future customer orders; the impact of changes in the Company’s product mix on the Company’s profitability; the Company’s ability to maintain the availability of raw materials and operating supplies with acceptable pricing; the availability and pricing of electricity, natural gas and other sources of energy that the Company needs for the manufacturing of its products; risks related to property, plant and equipment, including the Company’s reliance on the continuing operation of critical manufacturing equipment; the Company’s success in timely concluding collective bargaining agreements and avoiding strikes or work stoppages; the Company’s ability to attract and retain key personnel; the Company’s ongoing requirement for continued compliance with laws and regulations, including applicable safety and environmental regulations; the ultimate outcome of the Company’s current and future litigation matters; the Company’s ability to meet its debt service requirements and to comply with applicable financial covenants; the ultimate outcome of the Company’s PPP loan forgiveness application; risks associated with conducting business with suppliers and customers in foreign countries; public health issues, including COVID-19 and its uncertain impact on our facilities and operations and our customers and suppliers and the effectiveness of the Company’s actions taken in response to these risks; risks related to acquisitions that the Company may make; the Company’s ability to protect its information technology infrastructure against service interruptions, data corruption, cyber-based attacks or network security breaches; the impact on the Company’s effective tax rates from changes in tax rules, regulations and interpretations in the United States and other countries where it does business; and the impact of various economic, credit and market risk uncertainties. Many of these factors are not within the Company’s control and involve known and unknown risks and uncertainties that may cause the Company’s actual results in future periods to be materially different from any future performance suggested herein. Any unfavorable change in the foregoing or other factors could have a material adverse effect on the Company’s business, financial condition and results of operations. Further, the Company operates in an industry sector where securities values may be volatile and may be influenced by economic and other factors beyond the Company’s control. Certain of these risks and other risks are described in the Company’s filings with the SEC, including the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 and the subsequent Quarterly Reports on Form 10-Q for the quarters ended March 31, 2020, June 30, 2020 and September 30, 2020, copies of which are available from the SEC or may be obtained upon request from the Company. Non-GAAP Financial Measures This press release includes discussions of financial measures that have not been determined in accordance with U.S. Generally Accepted Accounting Principles (GAAP). These measures include earnings (loss) before interest, income taxes, depreciation and amortization (EBITDA) and Adjusted EBITDA. We include these measurements to enhance the understanding of our operating performance. We believe that EBITDA, considered along with net earnings (loss), is a relevant indicator of trends relating to cash generating activity of our operations. Adjusted EBITDA excludes the effect of share-based compensation expense and noted special items such as impairments and costs or income related to special events such as periods of low activity or insurance claims. We believe that excluding these costs provides a consistent comparison of the cash generating activity of our operations. We believe that EBITDA and Adjusted EBITDA are useful to investors as they facilitate a comparison of our operating performance to other companies who also use EBITDA and Adjusted EBITDA as supplemental operating measures. These non-GAAP financial measures supplement our GAAP disclosures and should not be considered an alternative to the GAAP measures. These non-GAAP measures may not be entirely comparable to similarly titled measures used by other companies due to potential differences among calculation methodologies. A reconciliation of these non-GAAP financial measures to their most directly comparable financial measure prepared in accordance with GAAP is included in the tables that follow. [TABLES FOLLOW]UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.FINANCIAL HIGHLIGHTS(Dollars in Thousands, Except Per Share Information)(Unaudited) CONSOLIDATED STATEMENTS OF OPERATIONS Three Months Ended Year Ended December 31, December 31, 2020 2019 2020 2019 Total net sales 31,324 55,171 179,731 243,007 Cost of products sold 36,399 49,317 182,387 215,369 Gross margin (5,075) 5,854 (2,656) 27,638 Selling, general and administrative expenses 4,203 5,252 19,752 20,347 Operating (loss) income (9,278) 602 (22,408) 7,291 Interest expense 552 956 2,784 3,765 Deferred financing amortization 56 56 225 227 Other (income), net (730) (53) (1,123) (474) (Loss) income before income taxes (9,156) (357) (24,294) 3,773 (Benefit) from income taxes (1,851) (557) (5,247) (502) Net (loss) income $(7,305) $200 $(19,047) $4,275 Net (loss) income per common share – Basic $(0.83) $0.02 $(2.16) $0.49 Net (loss) income per common share – Diluted $(0.83) $0.02 $(2.16) $0.48 Weighted average shares of common stock outstanding Basic 8,834,146 8,788,380 8,818,974 8,778,753 Diluted 8,834,146 8,867,040 8,818,974 8,873,719 MARKET SEGMENT INFORMATION Three Months Ended Year ended December 31, December 31, 2020 2019 2020 2019 Net Sales Service centers $22,245 $36,331 $126,122 $166,327 Original equipment manufacturers 4,159 5,413 20,783 24,731 Rerollers 2,316 7,220 15,928 27,236 Forgers 2,217 5,036 14,244 20,444 Conversion services and other sales 387 1,171 2,654 4,269 Total net sales $31,324 $55,171 $179,731 $243,007 Tons shipped 5,669 9,805 30,821 41,462 MELT TYPE INFORMATION Three Months Ended Year ended December 31, December 31, 2020 2019 2020 2019 Net Sales Specialty alloys $24,969 $46,609 $141,838 $201,120 Premium alloys * 5,968 7,391 35,239 37,618 Conversion services and other sales 387 1,171 2,654 4,269 Total net sales $31,324 $55,171 $179,731 $243,007 END MARKET INFORMATION ** Three Months Ended Year ended December 31, December 31, 2020 2019 2020 2019 Net Sales Aerospace $17,214 $37,627 $121,900 $170,445 Power generation 956 2,942 6,879 11,530 Oil & gas 2,287 6,256 13,065 25,023 Heavy equipment 6,036 4,752 22,400 22,725 General industrial, conversion services and other sales 4,831 3,594 15,487 13,284 Total net sales $31,324 $55,171 $179,731 $243,007 * Premium alloys represent all vacuum induction melted (VIM) products. ** The majority of our products are sold to service centers rather than the ultimate end market customer. The end market information in this press release is our estimate based upon our knowledge of our customers and the grade of material sold to them, which they will in-turn sell to the ultimate end market customer. CONDENSED CONSOLIDATED BALANCE SHEETS December 31, 2020 2019 Assets Cash $164 $170 Accounts receivable, net 18,101 35,595 Inventory, net 111,380 147,402 Other current assets 7,471 8,300 Total current assets 137,116 191,467 Property, plant and equipment, net 164,983 176,061 Other long-term assets 947 871 Total assets $303,046 $368,399 Liabilities and Stockholders’ Equity Accounts payable $12,632 $40,912 Accrued employment costs 1,826 4,449 Current portion of long-term debt 16,713 3,934 Other current liabilities 2,722 830 Total current liabilities 33,893 50,125 Long-term debt, net 33,471 60,411 Deferred income taxes 5,725 10,962 Other long-term liabilities, net 4,277 3,765 Total liabilities 77,366 125,263 Stockholders’ equity 225,680 243,136 Total liabilities and stockholders’ equity $303,046 $368,399 CONSOLIDATED STATEMENTS OF CASH FLOW Year Ended December 31, 2020 2019 Operating activities: Net (loss) income $(19,047) $4,275 Adjustments to reconcile net (loss) income to net cash (used in) provided by operating activities: Depreciation and amortization 19,449 19,133 Deferred income tax (5,231) (517)Share-based compensation expense 1,455 1,390 Changes in assets and liabilities: Accounts receivable, net 17,494 (2,977)Inventory, net 34,326 (14,965)Accounts payable (25,282) (1,412)Accrued employment costs (1,983) (3,490)Income taxes 243 84 Other, net 2,387 (5,930) Net cash provided by (used in) operating activities 23,811 (4,409) Investing activity: Capital expenditures (9,157) (17,354)Net cash used in investing activity (9,157) (17,354) Financing activities: Borrowings under revolving credit facility 115,876 174,907 Payments on revolving credit facility (136,877) (153,632)Proceeds from Paycheck Protection Program Note 10,000 – Payments on term loan facility, capital leases, and notes (3,809) (3,904)Issuance of common stock under share-based plans 150 471 Net cash (used in) provided by financing activities (14,660) 17,842 Net increase in cash and restricted cash (6) (3,921)Cash and restricted cash at beginning of period 170 4,091 Cash and restricted cash at end of period $164 $170 RECONCILIATION OF NET INCOME TO EBITDA AND ADJUSTED EBITDA Three Months ended Twelve Months Ended December 31, December 31, 2020 2019 2020 2019 Net (loss) income $(7,305) $200 $(19,047) $4,275 Interest expense 552 956 2,784 3,765 Benefit from income taxes (1,851) (557) (5,247) (502)Depreciation and amortization 4,728 4,898 19,449 19,133 EBITDA (3,876) 5,497 (2,061) 26,671 Share-based compensation expense 326 290 1,455 1,390 Loss on sale of excess scrap 300 – 654 – Fixed cost absorption direct charge 3,819 – 8,284 – Employee severance costs – – 620 – Insurance-related (benefit) expense (740) – (1,047) – Adjusted EBITDA $(171) $5,787 $7,905 $28,061 CONTACTS:Dennis M. OatesChristopher T. ScanlonJune Filingeri Chairman,VP Finance, CFOPresident President and CEOand TreasurerComm-Partners LLC (412) 257-7609(412) 257-7662(203) 972-0186

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