AMG Critical Materials' revenue in the first quarter increased by $20.1 million, or 10%, to $228.6 million, driven by improved average vanadium and chrome prices during the quarter, and higher sales volumes of lithium concentrate and antimony products.
Gross profit in the first quarter decreased by $6.4 million, or 14%, to $37.6 million. The reduction in gross profit was driven by a non-cash expense related to a vanadium inventory adjustment, additional ramp-up costs associated with lithium in Brazil, lower sales volumes in graphite's heat insulation business and a decrease in silicon metal prices. This reduction was partially offset by higher chrome metal prices and improved antimony sales volumes.
SG&A expenses in the first quarter of 2019 increased by $1.7 million, or 9%, compared to the same period in the prior year, primarily due to higher professional fees.
First quarter 2019 EBITDA margin was 14%, relatively consistent with prior year.
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AMG Technologies
Q1 '19 Q1 '18 Change
Revenue $117,932 $99,923 18%
Gross profit
Gross profit excluding
exceptional items 29,482
31,278 26,100
26,203 13%
19%
Operating profit 13,604 10,275 32%
EBITDA 19,271 13,721 40%
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Despite a 7% decrease versus December 31, 2018, order backlog maintained its historically high level of $224.1 million as of March 31, 2019 and the Company signed $56.2 million in new orders during the first quarter of 2019. This represents a 0.82x book to bill ratio, driven by strong orders of heat treatment furnaces for the automotive market and induction and remelting furnaces for the aerospace market.
AMG Technologies' first quarter 2019 revenue increased $18.0 million, or 18%, to $117.9 million, due to higher titanium master alloy prices and higher revenue generated by the delivery of turbine blade coating, casting and nuclear waste recycling furnaces.
First quarter 2019 gross profit increased by $3.4 million, or 13%, to $29.5 million and gross margin was relatively consistent at 25% compared to 26% in the first quarter 2018.
SG&A expenses remained consistent at $15.9 million in the first quarter, compared to the same period in 2018.
AMG Technologies' first quarter EBITDA increased by 40%, or $5.6 million, to $19.3 million from $13.7 million in the first quarter of 2018, largely due to higher levels of gross profit.