Universal Stainless Reports Correction to Previously Reported Third Quarter 2012 Results

Universal Stainless Reports Correction to Previously Reported Third Quarter
2012 Results

BRIDGEVILLE, Pa., Nov. 5, 2012 (GLOBE NEWSWIRE) -- Universal Stainless & Alloy
Products, Inc. (Nasdaq:USAP) reported today that it is correcting the results
for the third quarter of 2012 previously reported on October 24, 2012. This
was necessitated by the discovery of an incorrect customer invoice, for which
a credit memo has now been issued.

The effect of this correction is that previously reported sales for the third
quarter of 2012 were reduced by $0.9 million to $61.4 million from the $62.3
million originally reported. Accordingly, corrected operating income for the
third quarter of 2012 is $4.7 million and corrected net income is $2.7 million
or $0.38 per diluted share.

Related adjustments also have been made in the segment report for the
Company's Universal Stainless & Alloy Products segment as well as in accounts
receivable and other items on the balance sheet and cash flow statements.

The corrected financial tables for the third quarter of 2012 accompany this
announcement. Investors are also advised to refer to the Quarterly Report on
Form 10-Q for the period, which the Company expects to file on November 9,
2012.

Chairman, President and CEO Dennis Oates stated: "We are disappointed that
this adjustment was necessary and we have taken immediate action to prevent
this from happening again."

About Universal Stainless & Alloy Products, Inc.

Universal Stainless & Alloy Products, Inc., headquartered in Bridgeville, PA,
manufactures and markets semi-finished and finished specialty steels,
including stainless steel, tool steel and certain other alloyed steels. The
Company's products are used in a variety of industries, including aerospace,
power generation, petrochemical and heavy equipment manufacturing. Established
in 1994, the Company, with its experience, technical expertise, and dedicated
workforce, stands committed to providing the best quality, delivery, and
service possible. 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
concentrated nature of the Company's customer base to date and the Company's
dependence on its significant customers; the receipt, pricing and timing of
future customer orders; changes in product mix; the limited number of raw
material and energy suppliers and significant fluctuations that may occur in
raw material and energy prices; risks related to property, plant and
equipment, including the Company's reliance on the continuing operation of
critical manufacturing equipment; risks associated with labor matters; 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 and matters;
risks related to acquisitions that the Company may make; 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 Securities and Exchange
Commission (SEC) over the last 12 months, copies of which are available from
the SEC or may be obtained upon request from the Company.

                         - CORRECTED TABLES FOLLOW -

UNIVERSAL STAINLESS & ALLOY PRODUCTS, INC.
FINANCIAL HIGHLIGHTS
(Dollars in thousands, except per share information)
(Unaudited)

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
                                                          
                       For the Quarter Ended   For the Nine-MonthsEnded
                       September 30,           September 30,
                       2012        2011        2012          2011
Net Sales                                                  
Stainless steel        $48,432   $54,746   $160,844    $149,797
Tool steel             4,768      5,407      15,638       18,376
High-strength low alloy 4,880      4,440      16,959       13,925
steel
High-temperature alloy  1,930      1,579      6,099        5,037
steel
Conversion services    967        935        3,831        2,945
Scrap sales and other   383        192        469          348
Total net sales        61,360     67,299     203,840      190,428
Cost of products sold  52,023     54,725     168,658      154,884
Selling and
administrative          4,685      5,343      13,531       12,870
expenses
Operating income       4,652      7,231      21,651       22,674
Interest expense       (602)      (609)      (1,924)      (852)
Other income           28         45         89           188
Income before income    4,078      6,667      19,816       22,010
taxes
Income tax provision   1,333      2,774      6,280        8,144
Net income             $2,745    $3,893    $13,536     $13,866
                                                          
Earnings per common     $0.40     $0.57     $1.97       $2.03
share – Basic
Earnings per common     $0.38     $0.55     $1.86       $1.97
share – Diluted *
                                                          
Weighted average shares
of Common Stock                                            
outstanding
Basic                  6,877,915  6,831,048  6,863,564    6,821,944
Diluted                7,433,922  7,202,386  7,446,836    7,050,781
                                                          
MARKET SEGMENT INFORMATION
                                                          
                       For the Quarter Ended   For the Nine-MonthsEnded
                       September 30,           September 30,
                       2012        2011        2012          2011
Net Sales                                                  
Service centers        $36,631   $35,067   $120,091    $98,000
Forgers                8,056      12,997     30,924       36,792
Rerollers              10,429     12,506     31,851       35,983
Original equipment      4,148      4,518      12,693       12,844
manufacturers
Wire redrawers         746        1,084      3,981        3,516
Conversion services     967        935        3,831        2,945
Scrap sales and other   383        192        469          348
Total net sales        $61,360   $67,299   $203,840    $190,428
                                                          
Tons Shipped           11,614     12,813     38,925       38,345
                                                          
Consolidated results include the results of the North Jackson operation, which
was acquired on August 18, 2011.
                                                          
* Diluted earnings per common share have been adjusted for interest expense
on convertible notes, subsequent to the August 18, 2011 acquisition of the
North Jackson operation.
                                                          

BUSINESS SEGMENT RESULTS
                                                              
Universal Stainless& Alloy Products                            
Segment
                                                              
                            For the Quarter Ended   For the Nine-MonthsEnded
                            September 30,           September 30,
                            2012         2011       2012         2011
Net Sales                                                      
Stainless steel             $30,138    $34,803  $98,926    $94,037
Tool steel                  3,703       5,047     13,560      17,184
High-strength low alloy      1,106       662       5,093       1,816
steel
High-temperature alloy       637         623       2,125       2,050
steel
Conversion services          866         641       3,476       2,203
Scrap sales and other        267         230       365         359
                            36,717      42,006    123,545     117,649
Intersegment                16,556      18,554    51,803      58,512
                                                              
Total net sales             53,273      60,560    175,348     176,161
Material cost of sales      27,548      31,265    87,527      92,338
Operation cost of sales     21,534      20,511    67,730      58,811
Selling and administrative   2,996       4,004     8,648       8,872
expenses
                                                              
Operating income            $1,195     $4,780   $11,443    $16,140
                                                              
The Universal Stainless & Alloy Products segment includes the results of the
North Jackson operation from the August 18, 2011 acquisition date.
                                                              
Dunkirk Specialty Steel                                        
Segment
                                                              
                            For the Quarter Ended   For the Nine-MonthsEnded
                            September 30,           September 30,
                            2012         2011       2012         2011
Net Sales                                                      
Stainless steel             $18,294    $19,943  $61,918    $55,760
Tool steel                  1,065       360       2,078       1,192
High-strength low alloy      3,774       3,778     11,866      12,109
steel
High-temperature alloy       1,293       956       3,974       2,987
steel
Conversion services         101         294       355         742
Scrap sales and other        116         (38)      104         (11)
                            24,643      25,293    80,295      72,779
Intersegment                135         34        314         126
                                                              
Total net sales             24,778      25,327    80,609      72,905
Material cost of sales      14,269      15,847    47,130      44,864
Operation cost of sales     6,499       5,628     20,195      16,230
Selling and administrative   1,689       1,339     4,883       3,998
expenses
                                                              
Operating income            $2,321     $2,513   $8,401     $7,813
                                                              

CONDENSED CONSOLIDATED BALANCE SHEETS
                                                        
                                           September30, December31,
                                           2012          2011
Assets                                                   
                                                        
Cash                                        $250        $274
Accounts receivable, net                    33,716       34,554
Inventory, net                             101,580      85,088
Deferred income taxes                       19,622       28,438
Refundable income taxes                     1,597        4,844
Other current assets                       2,368        2,198
                                                        
Total current assets                       159,133      155,396
Property, plant and equipment, net         205,005      183,148
Goodwill                                    20,268       20,479
Other long-term assets                     2,563        2,649
                                                        
Total assets                               $386,969    $361,672
                                                        
Liabilities and Stockholders' Equity                     
                                                        
Accounts payable                           $18,473     $29,912
Accrued employment costs                   5,946        7,547
Current portion of long-term debt          750          3,000
Other current liabilities                  1,223        966
                                                        
Total current liabilities                  26,392       41,425
Long-term debt                             112,691      91,650
Deferred income taxes                      51,711       48,291
Other long-term liabilities                172          --
                                                        
Total liabilities                          190,966      181,366
Stockholders' equity                       196,003      180,306
                                                        
Total liabilities and stockholders' equity $386,969    $361,672
                                                        

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
                                                                 
                                                    For the Nine-MonthsEnded
                                                    September 30,
                                                    2012          2011
                                                    
Operating activities:                                             
Net income                                          $13,536     $13,866
Adjustments to reconcile net income to net cash                   
provided by (used in) operating activities:
Depreciation and amortization                       9,312        4,801
Loss on retirement of property, plant and equipment --          (20)
Deferred income taxes                                12,236       13,536
Share-based compensation expense, net               979          1,154
Changes in assets and liabilities:                               
Accounts receivable, net                            838          (10,262)
Inventory, net                                      (16,492)     (9,563)
Accounts payable                                    (14,661)     (6,657)
Accrued employment costs                            (1,601)      1,806
Income taxes                                        3,378        (10,244)
Other, net                                          571          (286)
                                                                 
Net cash provided by (used in) operating activities 8,096        (1,869)
                                                                 
Investing activities:                                             
Capital expenditures, net of amount included in      (27,517)     (4,855)
accounts payable
Business acquisition, net of convertible notes       --          (91,298)
assumed
Proceeds from sale of fixed assets                  --          20
                                                                 
Net cash used in investing activities               (27,517)     (96,133)
                                                                 
Financing activities:                                             
Borrowings under revolving credit facility           100,752      44,200
Payments on revolving credit facility                (61,961)     (8,600)
Payment on term loan facility                        (20,000)     --
Borrowings under term loan facility                  --          40,000
Debt repayments                                     --          (10,823)
Proceeds from the issuance of Common Stock          960          415
Payment of deferred financing costs                  (348)        (1,370)
Purchase of Treasury Stock                           (234)        --
Tax benefit from share-based payment arrangements   228          75
                                                                 
Net cash provided by financing activities           19,397       63,897
                                                                 
Net decrease in cash                                (24)         (34,105)
Cash at beginning of period                         274          34,400
                                                                 
Cash at end of period                               $250        $295
                                                                 
Supplemental Non-Cash Investing and Financing                     
Activities:
Capital expenditures included in accounts payable    $3,222      $2,998
Convertible notes issued as acquisition              $--        $20,000
consideration
                                                                 
Consolidated results include the results of the North Jackson      
operation, which was acquired on August 18, 2011.
                                                                 

CONTACT: Dennis Oates
         Chairman,
         President and CEO
         (412) 257-7609
        
         Douglas McSorley
         VP Finance, CFO
         and Treasurer
         (412) 257-7606
        
         June Filingeri
         President
         Comm-Partners LLC
         (203) 972-0186

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