Business
Synalloy Reports Third Quarter 2020 Results
RICHMOND, Va.--(BUSINESS WIRE)-- Synalloy Corporation (Nasdaq: SYNL), today announced its results for the third quarter of 2020. Net sales for the third
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[{"type":"text","content":" RICHMOND, Va.--(BUSINESS WIRE)--\nSynalloy Corporation (Nasdaq: SYNL), today announced its results for the third quarter of 2020. Net sales for the third quarter of 2020 totaled $59.3 million. This represents a decrease of $14.4 million or 19.5% when compared to net sales for the third quarter of 2019. Net sales for the first nine months of 2020 were $200.1 million, a decrease of $37.1 million or 15.6% from net sales for the first nine months of 2019. Excluding the curtailed Palmer operations, sales in the third quarter were $58.7 million, down 13.7% from the third quarter of 2019 and net sales for the first nine months of 2020 were $195.1 million, down 7.8% from the previous year periods.\n\n“The team has done a good job managing the factors that are within our control given the challenges presented by the COVID-19 pandemic, the proxy contest, and a business cycle trough year for our largest subsidiary, Bristol Metals,” said Craig Bram, Synalloy’s President and CEO. “I am proud of how the Company has performed so far this year.”\n\nFor the third quarter of 2020, the Company recorded a net loss of $10.5 million, or $1.16 diluted loss per share, compared to a net loss of $1.0 million, or $0.11 diluted loss per share for the third quarter of 2019. The third quarter of 2020 was negatively impacted by:\n\n\nNon-cash goodwill impairment in our Metals Segment of $10.7 million;\n\n\nOperating losses at Palmer totaling $0.9 million;\n\n\nInventory price change losses which, on a pre-tax basis, totaled $1.6 million;\n\n\nProxy contest costs of $0.2 million related to the Company's proxy contest and election of directors at the 2020 Annual Meeting of Shareholders; and\n\n\nCosts related to the hotline investigation regarding the accounting for Palmer and other matters of $0.7 million, found within acquisition costs and other.\n\n\nFor the first nine months of 2020, the Company reported a net loss of $18.7 million, or $2.06 diluted loss per share. This compares to a net loss of $2.1 million, or $0.24 diluted loss per share for the first nine months of 2019. The first nine months of 2020 were negatively impacted by:\n\n\nNon-cash goodwill impairment in our Metals Segment of $10.7 million;\n\n\nOperating losses at Palmer totaling $3.6 million and $6.1 million in non-cash, pre-tax asset impairment charges;\n\n\nInventory price change losses,...