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RICHMOND, Va.--(BUSINESS WIRE)--Synalloy 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.

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, Synalloys President and CEO. I am proud of how the Company has performed so far this year.

For 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:

For 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:

The Company also reports its performance utilizing two non-GAAP financial measures: Adjusted Net (Loss) Income and Adjusted EBITDA. The Company's performance, as calculated under the two measures, is as follows:

Both the Adjusted Net Income and Adjusted EBITDA metrics for the first nine months of 2020 include add-backs of the non-cash goodwill impairment of $10.7 million, $6.1 million in non-cash asset impairment charges for the Palmer operation, $3.1 million in costs associated with the Company's proxy contest as noted above and $0.7 million in costs associated with the hotline investigation regarding the accounting for Palmer and other matters, found within acquisition costs and other. These costs were added back due to the nature of the charges as one-time charges unrelated to the ongoing operations of the Company.

The Company's results are periodically impacted by factors that are not included as adjustments to our non-GAAP measures, but which represent items that help explain differences in period to period results. As mentioned above, operating losses at Palmer totaled $0.9 million and $3.6 million for the third quarter and first nine months of 2020, respectively. Additionally results were negatively impacted by inventory price change losses which, on a pre-tax basis, totaled $1.6 million and $5.5 million for the third quarter and first nine months of 2020, respectively.

The third quarter certainly had its challenges, but looking at the core operations of the Company, there was solid improvement over the third quarter of last year. First, we had to overcome a sales decline of $9.4 million from the third quarter of last year, excluding the Palmer business. Inventory price change losses in the third quarter were up $1.0 million over last year, with most of the losses occurring in July 2020. As expected, inventory price change results in September were break-even. With current surcharges, we expect to post inventory price change profits in the fourth quarter. Expenses associated with the proxy contest and the hotline investigation regarding the accounting for Palmer and other matters combined to lower pre-tax results in the third quarter of this year by $0.9 million. In last years third quarter, we realized a gain from adjusting the earn-out of $1.2 million, as compared with a gain of $0.1 million in the third quarter of this year. Also in this year's third quarter, we took a $10.7 million non-cash goodwill impairment charge. Excluding the Palmer operations and taking into account the aforementioned items, we showed a $1.9 million improvement in pre-tax income over the third quarter of last year. Achieving this on a sales decline of $9.4 million, speaks to the Companys cost cutting efforts over the past twelve months, said Mr. Bram.

Metals Segment

The Metals Segment's net sales for the third quarter of 2020 totaled $47.1 million, a decrease of $13.0 million or 21.7% from the third quarter of 2019. Excluding the Palmer business, net sales for the third quarter of 2020 totaled $46.5 million, a decrease of $8.0 million, or 14.7%, from the same quarter last year.

Net sales for the first nine months of 2020 totaled $159.8 million, a decrease of $36.0 million, or 18.4%, from the first nine months of 2019. Excluding the Palmer business, net sales for the first nine months of 2020 totaled $154.8 million, a decrease of $15.3 million, or 9.0%, from the first nine months of 2019.

Sales of heavy wall seamless carbon pipe and tube were down 31.7% from last years third quarter, while pounds were down 26.1%, primarily due to decreased demand in the oil and gas sector. On a year to date basis, this product line contributed $2.8 million in Adjusted EBITDA, before corporate allocations. This was after inventory price change losses of $1.4 million.

Sales of welded pipe and tube in the third quarter of this year were down 11.8% over the third quarter of last year, while pounds were down 17.6%, primarily due to decreased levels of North American consumption of stainless steel welded pipe and tube impacting the Bristol Metals subsidiary. On a year to date basis, welded pipe and tube contributed $7.5 million in Adjusted EBITDA, before corporate allocations. This was after inventory price change losses of $4.1 million.

The backlog for our subsidiary, Bristol Metals, LLC, as of September 30, 2020, was $24.1 million, a decrease of 18.3% when compared to the same period in 2019.

For our largest subsidiary Bristol Metals, 2020 has definitely been a trough year in the business cycle. Data from the Metals Service Center Institute (MSCI) shows that North American consumption of welded stainless-steel pipe is running at an annual pace of just over 93,000 tons in 2020, down about 5% from 2019. This volume is consistent with North American consumption during the previous trough of 2015-2016. During trough years, pricing gets very aggressive as manufacturers fight for critical volume. Bristol Metals has been successful so far this year in taking market share, with an increase of 210 basis points and shipments up about 3% over last year. Profitability between peak and trough years for welded stainless steel pipe is highly volatile. In the peak year of 2018, Bristol Metals contributed Adjusted EBITDA, before corporate overhead allocations, totaling $25.1 million. This was after inventory price change gains of $3.5 million. In the current trough year, Bristol Metals has contributed Adjusted EBITDA for the same nine-month period, before corporate overhead allocations, of $3.7 million. This is after inventory price change losses of $4.5 million, said Mr. Bram.

The Metals Segment's reported operating losses of $11.6 million for the third quarter of 2020 compared to operating income of $0.4 million for the third quarter of 2019. Excluding the Palmer business, operating losses for the third quarter of 2020 were $10.7 million as compared to operating income of $0.9 million for the same quarter last year.

For the first nine months of 2020, the Metals Segment reported operating losses of $19.8 million compared to operating income of $3.1 million for the same period of 2019. Excluding the Palmer business, operating losses were $16.2 million for the first nine months of 2020 as compared to operating income of $3.5 million for the same period of 2019.

Current quarter operating results were affected by nickel prices and resulting surcharges for 304 and 316 alloys. The third quarter of 2020 proved to be a more unfavorable environment than the third quarter of 2019, with net metal pricing losses of $1.6 million, compared to last year's $0.6 million in metal pricing losses. Net metal pricing losses for the first nine months of 2020 totaled $5.5 million, compared to $5.7 million in metal pricing losses for the same period of 2019.

In light of the decrease in the Company's market capitalization as of September 30, 2020, we concluded that a triggering event had occurred potentially indicating the fair value of certain reporting units was less than their carrying value as of September 30, 2020. Therefore, we performed a quantitative goodwill assessment as of September 30, 2020 that resulted in a non-cash goodwill impairment charge of $10.7 million in our Metals Segment.

"As some of our Metals peer group companies begin reporting their financial results for the September 30th ending quarter, it is apparent that the end markets that we serve have been challenging for everyone. Year over year sales for the quarter were down an average of 29% for our customers and down 33% for our suppliers," said Mr. Bram.

Specialty Chemicals Segment

Net sales for the Specialty Chemicals Segment in the third quarter of 2020 totaled $12.2 million, representing a $1.3 million or 9.9% decrease from the third quarter of 2019. Net sales for the first nine months of 2020 totaled $40.3 million, representing a $1.2 million, or 2.8%, decrease from the same period in 2019.

Operating income for the Specialty Chemicals Segment for the third quarter of 2020 was $1.1 million, an increase of $0.2 million from the same quarter of 2019. Operating income for the first nine months of 2020 totaled $3.5 million, an increase of $1.1 million over the same period of 2019. On a year to date basis, the Specialty Chemicals Segment contributed $5.5 million in Adjusted EBITDA, before corporate overhead allocations.

The U.S. specialty chemical industry continues to face significant downturns in demand due to weak industrial and manufacturing activities related to the COVID-19 pandemic. However, during the first nine months of 2020, the Specialty Chemicals Segment was able to demonstrate relative strength in sales by increasing production of hand sanitizer and cleaning aids to offset reduced production for the oil and gas industry. Additionally, the Specialty Chemicals Segments cost cutting efforts have generated a decrease in selling, general and administrative costs of $0.2 million and $0.6 million for the third quarter and first nine months of 2020, respectively. These cost cutting measures have allowed the Specialty Chemicals Segment to generate increased profits on lower sales volume.

Other Items

Unallocated corporate expenses for the third quarter of 2020 decreased $0.9 million or 35.6% to $1.5 million (2.6% of sales) compared to $2.4 million (3.2% of sales) for the same period in the prior year. The third quarter decrease resulted primarily from lower professional fees, incentive bonuses, and travel expenses in the period.

Interest expense was $0.5 million and $0.9 million for the third quarter of 2020 and 2019, respectively. The decrease was related to lower average debt outstanding in the third quarter of 2020 compared to the third quarter of 2019.

The effective tax rate was 19.4% and 10.6% for the three months ended September 30, 2020 and September 30, 2019, respectively, resulting in a tax benefit of $2.5 million and $0.1 million, respectively. The September 30, 2020 effective tax rate was approximately equal to the U.S. statutory rate of 21.0%.

The effective tax rate was 24.4% and 23.6% for the nine months ended September 30, 2020 and 2019, respectively, resulting in a tax benefit of $6.0 million and $0.7 million, respectively. The effective tax rate for the first nine months of 2020 was higher than the statutory rate of 21.0% due to the discrete treatment of costs attributable to our proxy contest, and tax benefits on our stock compensation plan and estimated tax benefits associated with the Coronavirus Aid, Relief and Economic Security Act (CARES Act) which was signed into law on March 27, 2020. The CARES Act includes various income and payroll tax provisions, notably enabling us to carry back net operating losses and recover taxes paid in prior years.

The Company's cash balance decreased $0.4 million to $0.2 million as of September 30, 2020 compared to $0.6 million at December 31, 2019. Fluctuations affecting cash flows during the nine months ended September 30, 2020 were comprised of the following:

a)

Net inventories decreased $9.2 million at September 30, 2020 when compared to December 31, 2019, mainly due to efforts to balance inventory with projected business levels and the write-down of inventory related to the Palmer business in the second quarter of 2020. Inventory turns increased from 1.62 turns at December 31, 2019, calculated on a three-month average basis, to 1.73 turns at September 30, 2020;

b)

Accounts payable decreased $1.6 million as of September 30, 2020 as compared to December 31, 2019, primarily due to the reduction of payables at the curtailed Palmer operations. Accounts payable days outstanding, calculated using a nine-month average basis, were approximately 30 days at September 30, 2020 and, also calculated using a nine-month average basis, approximately 36 days at December 31, 2019. Accounts payable days outstanding calculated using a three-month average basis was approximately 38 days at September 30, 2020;

c)

Net accounts receivable decreased $1.9 million at September 30, 2020 as compared to December 31, 2019, due primarily to the reduction of receivables at the curtailed Palmer operations. Days sales outstanding, calculated using a nine-month average basis, was 47 days outstanding at September 30, 2020 and, also using a nine-month average basis, 51 days at December 31, 2019. Days sales outstanding, calculated using a three-month average basis, was approximately 54 days outstanding at September 30, 2020;

d)

Capital expenditures for the first nine months of 2020 were $2.8 million; and

e)

The Company paid $3.2 million during the first nine months of 2020 related to the earn-out liabilities from the 2019 American Stainless, 2018 MUSA-Galvanized and 2017 MUSA-Stainless acquisitions.

The Company had $71.3 million of total borrowings outstanding with its lender as of September 30, 2020. The total is down $4.2 million from the balance at December 31, 2019. As of September 30, 2020, the Company had $7.5 million of remaining available capacity under its line of credit.

Pursuant to the Credit Agreement, the Company is subject to certain covenants including maintaining a minimum fixed charge coverage ratio of not less than 1.25, maintaining a minimum tangible net worth of not less than $60.0 million, and a limitation on the Companys maximum amount of capital expenditures per year, which is in line with currently projected needs.

The Company notified its bank of a technical default of the fixed charge coverage ratio in its Credit Agreement at the quarter ended September 30, 2020. To address the technical default, the Company entered into an amendment to its Credit Agreement with its bank subsequent to the end of the third quarter. On October 23, 2020, the Company entered into the Fifth Amendment to the Third Amended and Restated Loan Agreement (the "Fifth Amendment") with its bank. The Fifth Amendment amended the definition of the fixed charge coverage ratio to include in the numerator (i) the calculation of losses from the suspended operations of Palmer in the amount of $1,560,000, which is effective for the quarter ended June 30, 2020 and for the directly following three quarters after June 30, 2020, (ii) the calculation of losses from the suspended operations of Palmer in the amount of $740,000, which is effective for the quarter ended September 30, 2020 and for the directly following three quarters after September 30, 2020, and (iii) the extraordinary expenses related to the investigation of a whistleblower complaint in the amount of $636,000, which is effective for the quarter ended September 30, 2020 and for the directly following three quarters after September 30, 2020.

At September 30, 2020, the Company had a minimum fixed charge coverage ratio of 1.47 and a minimum tangible net worth of $67.7 million.

Outlook

The manufacturing sector will continue to face challenges over the next several quarters. As a result of the uncertainty related to the COVID-19 pandemic, we have suspended all Fiscal 2020 guidance and are not providing guidance at this time. With a restart of the economy pending, we cannot predict the impact on our various businesses. We remain diligent and thoughtful in managing profitability and liquidity while navigating these unprecedented times and continuing to execute our strategy.

Synalloy Corporation (Nasdaq: SYNL) is a growth-oriented company that engages in a number of diverse business activities including the production of stainless steel and galvanized pipe and tube, the master distribution of seamless carbon pipe and tube, and the production of specialty chemicals. For more information about Synalloy Corporation, please visit our web site at http://www.synalloy.com.

Forward-Looking Statements

This earnings release includes and incorporates by reference "forward-looking statements" within the meaning of the federal securities laws. All statements that are not historical facts are "forward-looking statements." The words "estimate," "project," "intend," "expect," "believe," "should," "anticipate," "hope," "optimistic," "plan," "outlook," "should," "could," "may" and similar expressions identify forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, including without limitation those identified below, which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements. The following factors could cause actual results to differ materially from historical results or those anticipated: adverse economic conditions; the impact of competitive products and pricing; product demand and acceptance risks; raw material and other increased costs; raw materials availability; employee relations; ability to maintain workforce by hiring trained employees; labor efficiencies; customer delays or difficulties in the production of products; new fracking regulations; a prolonged decrease in nickel and oil prices; unforeseen delays in completing the integrations of acquisitions; risks associated with mergers, acquisitions, dispositions and other expansion activities; financial stability of our customers; environmental issues; negative or unexpected results from tax law changes; unavailability of debt financing on acceptable terms and exposure to increased market interest rate risk; inability to comply with covenants and ratios required by our debt financing arrangements; ability to weather an economic downturn; loss of consumer or investor confidence, risks relating to the impact and spread of COVID-19 and other risks detailed from time-to-time in the Company's Securities and Exchange Commission filings. The Company assumes no obligation to update the information included in this release.

Non-GAAP Financial Information

Financial statement information included in this earnings release includes non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures.

Adjusted Net (Loss) Income and Adjusted Diluted (Loss) Earnings per Share are non-GAAP measures and exclude discontinued operations, goodwill impairment, asset impairment, gain on lease modification, stock option / grant costs, non-cash lease costs, acquisition costs and other fees, proxy contest costs, shelf registration costs, earn-out adjustments, gain on excess death benefit, realized and unrealized (gains) and losses on investments in equity securities, casualty insurance gain, all (gains) losses associated with a Sale-Leaseback, and retention costs from net income. They also utilize a constant effective tax rate to reflect tax neutral results.

Adjusted EBITDA is a non-GAAP measure and excludes discontinued operations, goodwill impairment, asset impairment, gain on lease modification, interest expense (including change in fair value of interest rate swap), income taxes, depreciation, amortization, stock option / grant costs, non-cash lease cost, acquisition costs and other fees, proxy contest costs, shelf registration costs, earn-out adjustments, gain on excess death benefit, realized and unrealized (gains) and losses on investments in equity securities, casualty insurance gain, all (gains) losses associated with a Sale-Leaseback and retention costs from net income.

Management believes that these non-GAAP measures provide additional useful information to allow readers to compare the financial results between periods. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.

Synalloy Corporation Comparative Analysis

Condensed Consolidated Statement of Operations

(Amounts in thousands, except per share data)

Three Months EndedSeptember 30,

Nine Months EndedSeptember 30,

(unaudited)

2020

2019

2020

2019

Net sales

Metals Segment

47,079

60,121

159,761

195,728

Specialty Chemicals Segment

12,187

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Synalloy Reports Third Quarter 2020 Results - Business Wire

Are you getting tired of all the political TV ads? There is one reason these ads are on TV, the Citizens United decision by the Supreme Court. This decision has created a legal form of bribery and corruption. Citizens United gave corporations and political action committees the right to give millions to political candidates.

The U.S. Constitution gives the right to vote to citizens; corporations and PACs cannot vote. The Supreme Court has in the past denied corporations and PACs rights reserved for citizens. People are taxed and regulated differently than corporations. People enjoy the right in the Fifth Amendment against self-incrimination in criminal investigations, while corporations do not.

Personally I do not like the idea of an out-of-state corporation or PAC trying to influence the votes of Iowans. I do not like the idea these organizations giving large amounts of cash to candidates who are supposed to represent Iowans and thereby trying to corrupt or bribe an Iowa candidate. Even citizens should not be able to donate to a candidate they cannot actually vote for or against, and the amount of a donation should be limited. Just because a person has millions, it does not make their vote worth more than any other persons vote.

I would love to see a political campaign based on a candidates record, what they plan to do or their goals for the people they represent. Here is a unique idea: How about a campaign based on honesty and the truth, rather than lies and deception?

If candidates were required to give their opponents the same amount they spend on a negative ad so the opponents can respond, there would be far fewer negative ads.

During this election cycle, Republicans are using Citizens United money to prevent people voting by challenging absentee voting, eliminating polling locations and making people travel extended distances and stand in line during a pandemic to cast their vote. Following the election, Republicans undoubtedly will spend millions of Citizens United dollars to challenge the results of the election. This is just another method of taking your vote away.

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Searl Letter to the Editor 10/23/20 | Opinion | carrollspaper.com - Carroll Daily Times Herald

Published: 10/23/2020 10:10:19 PM

Modified: 10/23/2020 10:10:09 PM

She lost me at sexual preference. I refer to Supreme Court nominee Amy Coney Barrett, whose qualifications fall far short of supreme.

During her hearing before the Senate Judiciary Committee she may as well have invoked the Fifth Amendment, given the number of reasonable questions she dodged.

As to sexual preference, she used that phrase as naturally as a Proud Boy might drop the n word. Among the factors I find disqualifying, this semantic slip is glaringly revealing. Sexual preference is laden with homophobic bigotry and legal peril. It not merely implies that gay and lesbian citizens choose their sexuality, but it denies the biological realities of sexual and gender identity.

Particularly at the time Barrett was coming of age, choosing to be gay would be a mighty masochistic choice unless one enjoyed humiliation from peers, scorn from family members, secrecy, risk of physical harm and, too often, terrible loneliness. Now, despite magnificent legal progress and a more accepting society, gay students and teachers are denied enrollment and employment at schools Barretts religion supports. Gays and lesbians are beaten by marauding gangs of thugs in areas of major cities and benighted rural towns.

Society and the law more easily shortchange gay and lesbian citizens when they claim (inaccurately) the infallibility of scripture and the notion that homosexuality is a choice too often accompanied by haughty language about conversion or psychiatric intervention.

Too many people are intimidated by religion and fail to speak up. The National Association of Independent Schools has a diversity standard requiring no discrimination on the basis of sexual identity yet accredits religious schools that exclude gay students and teachers. Hypocritical much? I confronted the association, but the board and president wiggled uncomfortably and sided with explicit bigotry, inaccurately citing the so-called ministerial exception accompanied by some convoluted babbling about a big tent. I dont want homophobes in my tent even especially in splendid ecclesiastic garb.

More as to Barrett: She was unwilling to affirm that climate change is at least partially due to human behavior. She couldnt go out on a limb and say tobacco causes cancer. She merely acknowledged that cigarette packages have warning labels. She wouldnt deny the president the power to unilaterally delay an election. She couldnt state whether voter intimidation was illegal. Fortunately no one asked her about up or down, black or white.

Although it may have been strategically wise, it was absurd that no Democrat examined her religious views. The idea that there can be no religious test for public office is a joke. As an enthusiastic atheist, Ive long recognized that I am unelectable. We will have a gay or Muslim president long before we inaugurate a non-believer, and I wouldnt bet the ranch on gay or Muslim.

Even among those claiming a more popular religious affiliation, oughtnt there be some inquiry about how far a candidates or nominees beliefs stray from the rational and empirical bases of our laws and secular social contract? Barretts written record, life choices, and confirmation hearing stonewalling suggest a woman who will be unable to divorce her lifelong indoctrination from her judicial contemplation.

This is not meant as an insult. Many things about her and her life are admirable, but she is ill-suited to sit on the nations highest secular court.

Finally, a word or two about Barretts (and others) originalism or textualism.

Originalism is the judicial approach that limits constitutional consideration to the text of the Constitution as written by the founders and by interpreting what they meant in the 18th century. It is cited as a judicial philosophy. It is not. It is a political philosophy masquerading as a judicial philosophy. It is no coincidence that the conservative justices march in lockstep. They are conservative. By limiting the scope of argument to the bare text, they may reject arguments of petitioners and respondents because the original text makes no mention of the redress they seek. Any legal scholar will tell you that this is done selectively, nearly always in support of a conservative political position. Pure originalism would have precluded nearly every social advance in American history womens rights, reproductive rights, voting rights, civil rights, gay rights, union rights, to name a few.

Barrett will almost certainly be confirmed and, in many ways, our rights and social contract will be rolled back to an era when Barrett and her conservative colleagues will be more comfortable, exclusive religious beliefs included.

Steve Nelson lives in Boulder, Colo., and Sharon. He can be reached at stevehutnelson@gmail.com.

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Column: Barrett confirmation will roll back social progress - Valley News

A North Adams man was convicted on multiple counts of domestic assault stemming from incidents that occurred in March and July.

The Berkshire District Attorneys Office secured a conviction in a serious domestic violence case on Monday despite the unavailability of the victim to testify.

Judge Laurie Macleod found Michael Lavigne, 49, of North Adams guilty on two counts of assault and battery on a household member after a bench trial in Northern Berkshire District Court. The Commonwealth proved that Lavigne assaulted the victim on March 7 and again on July 11.

Judge Macleod sentenced him to 18 months at the House of Correction.

It is our responsibility to hold violent offenders accountable for their actions. Mr. Lavigne demonstrated his willingness to use mental and physical abuse to control the victim. This sentence will prevent him from continuing that behavior, District Attorney Andrea Harrington said.

We do not turn a blind eye to domestic violence and this outcome is a reflection of the priority our office and our partners in law enforcement place on these crimes. I thank the North Adams Police Department and the Sheriffs Office for their dedicated investigation.

The Berkshire District Attorneys Office utilized evidence-based prosecution to secure the conviction after the victim asserted the Fifth Amendment. The Commonwealth successfully argued that Mr. Lavigne coerced the victim not to testify through a series of phone calls from the House of Correction.

The Berkshire District Attorneys Office prosecuted the cased based on previous statements, the recorded phone calls, and other evidence Police gathered to prove Mr. Lavigne committed the assaults.

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Berkshire County Man Convicted on Counts of Domestic Assault - Live 95.9

A Brooklyn teacher invoked the Fifth Amendment against self-incrimination when asked by city school investigators about his relationship with a female student, records show.

David Lado, who taught physics at Medgar Evers Preparatory School in Crown Heights, engaged in an inappropriate relationship with a female student, the Special Commissioner of Investigation for city schools alleges.

The SCI began a probe after a school official reported receiving an anonymous complaint in an email on June 23, 2019, that Lado, 29, was engaged in sexual activities with a student.

In the presence of her father, the girl denied having a sexual relationship with Lado, saying she spoke with him only during school hours.

The girl also claimed her younger sister, who was mentioned in the anonymous email, denied telling anyone about the allegation. But the father would not let investigators question the sister, the report says.

SCI subpoenaed Google to determine who sent the anonymous email. The records show the account was opened on June 23, the date of the anonymous message. Possibly for the sole purpose of sending the email, the report stated. The person who opened the account did not provide a name or address.

SCI subpoenaed phone records showing that Lado and the girl were in phone contact 129 times. Lado placed 38 calls to her, she called him 88 times, and three text messages were exchanged. The calls were between May 1 and July 1 in 2019, continuing amid the investigation.

Through his lawyer, Lado declined to be interviewed by SCI,invoking the Fifth Amendment privilege against self-incrimination, the SCI states.

The SCI sent Chancellor Richard Carranza its findings on July 9 eight days after the Department of Education fired Lado for letting his state teaching license expire.

Because Lado was already terminated, the DOE could not file misconduct charges against him, a DOE spokeswoman said.

But Lado, who had taught at Medgar Evers since September 2015, is ineligible to work for city schools again, officials said.

This extremely disturbing alleged conduct has absolutely no place in our schools, said DOE spokeswoman Danielle Filson.

According to his LinkedIn page, Lado is currently an MBA candidate at the Zicklin School of Business at Baruch College. He could not be reached for comment.

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NYC teacher suspected of sexual relationship with student invokes Fifth Amendment - New York Post