Haynes International, Inc. (NASDAQ:HAYN) Q2 2022 Earnings Conference Call April 29, 2022 9:00 AM ET

Company Participants

David Van Bibber - Controller & CAO

Michael Shor - President, CEO & Director

Daniel Maudlin - VP, Finance, Treasurer & CFO

Conference Call Participants

Michael Leshock - KeyBanc Capital Markets

Operator

Good morning, ladies and gentlemen. Thank you for standing by. Welcome to the Haynes International, Inc. Second Quarter Fiscal 2022 Financial Results. [Operator Instructions].

I would now like to turn the call over to your host, Controller and Chief Accounting Officer, David Van Bibber. Please go ahead.

David Van Bibber

Thank you very much for joining us today. With me today are Mike Shor, 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 and 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 assurances 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, 2021. 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 Mike.

Michael Shor

Thank you, Dave. Good morning, everyone. Haynes had an excellent quarter. Our team continues to take the actions required to position the company for the future. Revenue was $117.1 million, up 17.7% sequentially and 42.6% year-on-year. Our gross margin continued its climb with this quarter at 20%, up 210 basis points sequentially and 980 basis points year-on-year. Our net income was $8.5 million, sequentially improving by 3.8 and $12.1 million year-on-year.

These improvements were the result of each of the following: our team working together to ramp up production volumes and navigate supply chain challenges; our ongoing excellent work on our innovative alloy and application development; our strategy regarding the high-value differentiated products and services that we provide; our continued relentless pursuit of variable cost reductions, along with increasing raw material prices and improving demand across our key markets. In addition, our safety performance also continues to be an area of significant focus for all of us. I'm thrilled with the management intensity, leadership and ongoing communication that is the why behind our improving performance.