Good morning, everyone, and welcome to the Synalloy Corporation's first quarter earnings conference call. [Operator Instructions] During this call, management will be using certain non-GAAP financial measures. The company's earnings release and the Securities and Exchange Commission filings include information about these measures and the reconciliation to the most directly comparable GAAP financial measures. Statements made during this call will include forward-looking statements and defined as Private Securities Litigation Reform Act of 1995. Management expectations and options reflected in the -- in those statements are subject to risks, and the company can give no assurance that they will prove to be correct. Those risks are described in the company's earnings release and the Securities and Exchange Commission filings. Further, please be advised that the company, its directors and certain of its executive officers and participants in the solicitation of proxies from the company's shareholders in connection with the 2020 Annual Meeting of Shareholders. The company has filed a definite -- a definitive proxy statement with the SEC in connection with any such solicitation of proxies. Shareholders are strongly encouraged to read such proxy statements and all other documents filed with the SEC carefully and in their entirety as they contain important information. Information regarding the identity of the company's participants and their direct or indirect interest or security holdings or otherwise can be found in the company's definitive proxy statement and other materials filed with the SEC. These materials can be obtained free through the company's website in the section titled Investor Relations or through the SEC's website. Hosting today's conference will be Mr. Craig Bram, President and Chief Executive Officer; and Dennis Loughran, Senior Vice President and Chief Financial Officer. I will now turn today's call over to Mr. Bram for opening remarks. Please go ahead, sir.

Good morning, everyone. Welcome to Synalloy Corporation's first quarter 2020 conference call. Dennis Loughran, our CFO, will provide a review of the Q1 financials, and then I'll provide some comments on our business segments. We will then open the call to questions. Dennis?

Hello, everyone. As usual, the financial results will be presented using 3 different methods: first, GAAP-based EPS; second, adjusted net income, a non-GAAP measure as defined in the earnings release; and third, adjusted EBITDA, a non-GAAP measure also defined in the earnings release. First quarter GAAP-based income was a net loss of $1.2 million or $0.13 diluted loss per share as compared with a net loss of $0.9 million or $0.10 diluted loss per share in the first quarter of 2019. First quarter non-GAAP adjusted net loss was $0.7 million or $0.08 adjusted diluted loss per share as compared with adjusted net income of $0.6 million or $0.07 adjusted diluted earnings per share in the first quarter of 2019. First quarter non-GAAP adjusted EBITDA totaled $2.6 million or 3.5% of sales compared to the prior year's first quarter total of $4.8 million or 5.6% of sales. As pointed out in the earnings release, inventory price change losses impacted results, totaled on a pretax basis $0.4 million in the first quarter of 2020 compared to a pretax loss of $3.4 million in last year's first quarter. This represents a $3 million improvement in the balance between the surcharges invoiced to customers and the cost of inventory passed through the income statement compared to the first quarter of 2019. As a note regarding the current status of nickel and metal valuations, with nickel at today's level at the end of the first quarter of 2020, we had approximately $4.8 million of accumulated downward revaluation impact due to declines in alloy metal pricing over the prior three to five months. With order book pricing fixed on approximately half of current pipe and tube inventories, we would expect approximately $2.4 million of that total to pass through as metal pricing losses during the second quarter of 2020. The combined adjusted EBITDA as a percent of sales for the operating businesses in the first quarter was 5.7% compared to the prior year's first quarter of 7.6%, the primary factors in the decline being the inventory price change differential mentioned above, the average pricing declines experienced in welded stainless pipe and galvanized tube operations compared to prior year's level. The company had $77.8 million of total borrowings outstanding with its lender as of March 31, 2020. Since March 31, 2019, that figure has been reduced by $13.6 million due to rigorous management of inventory and accounts receivable. In these uncertain times swathed by the COVID-19 virus, we are redoubling our efforts to improve our liquidity and reduce debt through the end of this year, with further inventory reductions of approximately $7 million, estimated refunded taxes made available through recent tax changes of approximately $2 million, and responsible constraints on capital spending until the economy is normalized of approximately $2 million. The calculated ABL facility remaining available as of March 31, 2020, was approximately $19 million. I will now turn the call back over to Craig.

Thank you, Dennis. The first quarter saw weaker year-over-year demand, particularly in the metals segment. Pricing pressure negatively impacted material margins for the entire company. Excluding Palmer, material margin declined by $3.85 million over the first quarter of last year. This was with pounds shipped virtually unchanged from the prior year. We were able to proactively offset a portion of this lost material margin through our cost-cutting efforts as discussed during our year-end outlook. Again excluding Palmer, we reduced our costs by $1.54 million year-over-year. Savings from the cost-cutting initiative will increase over the next several quarters, providing additional financial support to our results. Let me also provide an overview of our welded pipe and tube business. This includes Bristol metals and ASTI. For the first quarter, pounds shipped were up almost 6% over the same period last year. We gained 3.4 points of North American market share in the welded stainless steel pipe category. However, with weak demand particularly in the commodity alloys, pricing for this segment of our business remained under pressure. While demand was reasonably good for our ornamental product line, our coal suppliers had an unexpected extension in their delivery lead times, which negatively impacted ASTI's pounds available for shipment. Overall, prices were down 10% for the welded pipe and tube segment over the same period last year. Material margin fell by $0.14 per pound over the same period last year and was down $2.9 million on an absolute dollar basis. We continue to show solid improvement in our cost structure with every major category down from the prior year. Labor and benefits declined by $413,000 or $0.028 per pound. Shipping costs fell by $57,000. Manufacturing costs were down by $102,000 or $0.017 per pound. And SG&A was down $360,000 or $0.015 per pound. In total,…

Thank you. [Operator Instructions] And your first question is from the line of James Lewis [ph]

I was wondering about [ph] this quarter's profit.

Excuse me? I didn't hear the question.

I was wondering what the, I guess, second quarter profit was and the first quarter profit as far as Bristol Metals segment division.

We don't break that out on the calls for competitive reasons.

Okay. Well, that was my question. I was going to listen to everything, but you said you just had a strong market and everything and revenue backlog. So I was just - well, listen, when you came on [ph] I didn't hear none of those numbers or anything, so we'll have to wait on that.

Great.

Okay. No problem with that. Thank you, sir.

[Operator Instructions] And at this time, there are no further questions.

All right. As usual, we appreciate your support. Thank you very much.

Thank you. This does conclude today's meeting. You may now disconnect.