Metals USA Reports Profitable Fourth Quarter and 2003 Year End
18 February 2004 - 12:05AM
PR Newswire (US)
Metals USA Reports Profitable Fourth Quarter and 2003 Year End
HOUSTON, Feb. 17 /PRNewswire-FirstCall/ -- Metals USA, Inc. , a
leader in the metals processing and distribution industry, today
announced results for the three months and full year ended December
31, 2003. Net income for the fourth quarter of 2003 was $2.6
million, or $0.13 per share. For the full 2003 year, net income was
$7.5 million, or $0.37 per share. Net income and earnings per share
comparisons for the same periods last year have not been presented
due to the significance of that year's adjustments, primarily
fresh-start accounting, reorganization expenses and the
reorganization gain aggregating $52.6 million (pre-tax), which were
recognized upon the successor entity's emergence from chapter 11
proceedings on October 31, 2002. Sales for the fourth quarter of
2003 were $249.5 million, compared to a combined amount for the
successor and predecessor company of $229.2 million for the fourth
quarter of 2002. Operating incomefor the fourth quarter of 2003 was
$4.0 million, compared to a combined operating loss for the
successor and predecessor company of ($11.5) million for the fourth
quarter of 2002. Sales for the year ended December 31, 2003 were
$963.2 million, compared to a combined amount for the successor and
predecessor company of $962.0 million for 2002. Operating income
for the full year of 2003 was $16.4 million, compared to a combined
operating loss for the successor and predecessor company of ($3.5)
millionlast year. C. Lourenco Goncalves, President and CEO stated,
"I want to thank all Metals USA employees who have supported and
adopted our new ways to manage relationships and resources. Despite
challenging market conditions, our fourth quarter resultsrepresent
our third consecutive profitable quarter. At this point, I am
completely confident that the stage is set for continuing improved
performance going forward." Mr. Goncalves continued, "Metal prices
have been increasing dramatically over the last several months and
supplies are tight. In such circumstances our primary objective is
to keep our customers supplied with competitively priced material.
The relationships we have forged with our suppliers have been the
key to accomplishing just that. As far as our service center
business is concerned, we expect the recent growth in metal
consumption to continue its present pace. We are prepared to meet
the increased demand." On a final note, Mr. Goncalves stated, "The
Metals USA Building Products Group continues to distinguish itself
as a premier, value-added business. We have aggressive plans for
2004, with new product offerings as well as geographic expansion.
We look forward to growing this segment of our business." Metals
USA has scheduled a conference call for Wednesday, February 18,
2004 at 11:00 a.m. eastern standard time. A replay of the call will
be available approximately two hours after the live broadcast ends
and will be available until April 2, 2004. To access the replay,
dial (888) 203-1112 in the U.S. and 719-457-0820 for international
service and enter the pass code 283432. Investors, analysts and the
general public are invited to listen to the conference call over
the Internet by visiting the company's website at
http://www.metalsusa.com/ . To listen to the live call online,
please visit the website at least 15 minutes early to register,
download and install any necessary audio software. For those who
cannot listen to the live webcast, an archive will be available at
the Company's website shortly after the call. "Metals USA, Inc. is
a leading metals processor and distributor in North America. Metals
USA provides a wide range of products and services in the heavy
carbon steel, flat-rolled steel, specialty metals, and building
products markets. For more information, visit the company's website
at http://www.metalsusa.com/ . The information contained in this
release is limited and the Company encourages interested parties to
read the Company's Form 10-K and 10-Q's which are on file with the
Securities and Exchange Commission for more complete information.
Additionally, copies of the Company's filings with the Securities
and Exchange Commission together with press releases and other
information investors may find of benefit can be found at the
Company's website at http://www.metalsusa.com/ . This press release
contains certain forward-looking statements which involve known and
unknown risks, uncertainties or other factors not under the
Company's control which may cause the actual results, performance
or achievement of the Company to be materially different from the
results, performance or other expectations implied by these
forward-looking statements. These factors include, but are not
limited to, those disclosed in the Company's periodic filings with
the Securities and Exchange Commission. Metals USA, Inc.
Consolidated Statements of Operations (In millions, except per
share amounts and shipments) Three Months Ended Year Ended December
31, September 30, December 31, 2003 2002 2003 2003 2002 Successor
Combined Successor Successor Combined Company (Note 1) Company
Company (Note 1) (Unaudited) (Unaudited) (Unaudited) (Unaudited)
Revenues: Net sales $249.5 $229.2 $245.1 $963.2 $962.0 Cost of
sales 189.6 186.2 184.8 731.6 737.7 Gross profit 59.9 43.0 60.3
231.6 224.3 Operating cost and expenses: Operating and delivery
33.9 33.4 32.6 127.7 128.4 Selling, general and administrative 21.8
23.6 21.6 87.0 92.3 Depreciation and amortization 0.2 0.8 0.2 0.5
7.3 Asset impairments --- (3.3) --- --- (0.2) Operating income 4.0
(11.5) 5.9 16.4 (3.5) Other (income) expense: Interest expense 1.3
2.4 1.1 5.7 17.1 Other (income) expense, net (1.8) (0.5) 0.1 (2.0)
(1.0) Reorganization expense --- --- --- Income (loss) before
income taxes and discontinued operations 4.5 4.7 12.7 Provision
(benefit) for income taxes 1.9 1.9 5.1 Income (loss) before
discontinued operations 2.6 2.8 7.6 Discontinued operations, net of
taxes --- --- (0.1) Net income (loss) $2.6 $2.8 $7.5 Net income
(loss) per share - basic: Before discontinued operations $0.13
$0.14 $0.38 Discontinued operations --- --- (0.01) Total $0.13
$0.14 $0.37 Net income (loss) per share - diluted: Before
discontinued operations $0.13 $0.14 $0.37 Discontinued operations
--- --- --- Total $0.13 $0.14 $0.37 Shares used in earnings per
share calculations: Basic 20.2 20.2 20.2 Diluted 20.5 20.3 20.3 Non
GAAP Financial and Other Information Shipments (A) 337 302 324
1,288 1,297 (A) Expressed in thousands of tons (excludes Building
Products business). Note 1: The following schedule is presented as
support for the combined results shown above. The Combined results
are a non-GAAP measure of financial performance, accordingly they
are labeled as "Unaudited." Amounts shown are a summation of the
relevant periods. 2002 2002 2002 Successor Predecessor Predecessor
Company Company Company Two Months One Month Ten Months Ended Ended
Ended December 31 October 31 October 31 Company (Note 1) (Note 1)
(Unaudited) Revenues: Net sales $128.7 $100.5 $833.3 Cost of sales
98.7 87.5 639.0 Gross profit 30.0 13.0 194.3 Operating cost and
expenses: Operating and delivery 18.3 15.1 110.1 Selling, general
and administrative 12.6 11.0 79.7 Depreciation and amortization ---
0.8 7.3 Asset impairments --- (3.3) (0.2) Operating income (0.9)
(10.6) (2.6) Other (income) expense: Interest expense 1.3 1.1 15.8
Other (income) expense, net 0.1 (0.6) (1.1) Fresh-start adjustments
--- 109.7 109.7 Gain on reorganization --- (190.6) (190.6)
Reorganization expenses --- 8.5 28.3 Income (loss) before income
taxes and discontinued operations (2.3) 61.3 35.3 Provision
(benefit) for income taxes --- (7.8) (15.4) Income (loss) before
discontinued operations (2.3) 69.1 50.7 Discontinued operations,
net of taxes (1.0) 1.3 0.6 Net income (loss) $(3.3) $70.4 $51.3 Net
income (loss) per share - basic and diluted: Before discontinued
operations $(0.11) $1.89 $1.39 Discontinued operations (0.05) 0.04
0.02 Total $(0.16) $1.93 $1.41 Shares used in earnings per share
calculations: Basic and Diluted 20.2 36.5 36.5 Metals USA, Inc.
Consolidated Condensed Balance Sheets (In millions) December 31,
September 30, December 31, 2003 2003 2002 Successor Successor
Successor Company Company Company (Unaudited) Assets Current
assets: Cash $11.4 $10.4 $6.3 Accounts receivable, net of allowance
125.0 128.3 113.0 Inventories 240.0 198.2 226.5 Prepaid expenses
and other 8.4 4.3 23.0 Operations heldfor sale --- --- 5.4 Total
current assets 384.8 341.2 374.2 Property and equipment, net 17.6
9.0 0.5 Other assets, net 4.8 3.6 3.9 Total assets $407.2 $353.8
$378.6 Liabilities and Stockholders' Equity Current liabilities:
Accounts payable $48.9 $33.7 $24.5 Accrued liabilities 32.0 33.0
30.0 Current portion of long-term debt 0.5 0.4 1.3 Operations held
for sale --- --- 0.2 Total current liabilities 81.4 67.1 56.0
Long-term debt, less current portion 118.2 82.7 127.4 Other
long-term liabilities 7.0 7.3 6.2 Total liabilities 206.6 157.1
189.6 Commitments and contingencies Stockholders' equity: Preferred
stock, $0.1 par value, 5,000,000 shares authorized; none issued ---
--- --- Common stock. $.01 par value, 200,000,000 shares
authorized; 20,154,710shares issued 0.2 0.2 0.2 Additional paid-in
capital 196.2 194.9 192.1 Retained earnings (deficit) 4.2 1.6 (3.3)
Total stockholders' equity 200.6 196.7 189.0 Total liabilities and
stockholders' equity $407.2 $353.8 $378.6 Metals USA, Inc.
Consolidated Condensed Statements of Cash Flows (In millions) Year
Ended December 31, 2003 2002 Successor Combined Company Note 2
(Unaudited) Cash flows from operating activities: Net income (loss)
$7.5 $48.0 Adjustments to reconcile net income (loss) to net cash
provided by operating activities: Gain on reorganization ---
(190.6) Fresh start adjustments --- 109.7 Net (income) loss from
discontinued operations 0.1 0.4 Asset impairments and integration
--- (0.2) Gain on sale of property andequipment (0.3) (0.2)
Provision for bad debts 2.7 3.7 Depreciation and amortization 0.5
7.3 Changes in operating assets and liabilities, net of non-cash
transactions: Accounts receivable (14.7) 3.1 Inventories (13.5)
(23.0) Prepaid expenses and other 18.7 (2.0) Accountspayable and
accrued liabilities 26.2 10.6 Income taxes payable 1.0 10.5 Other
operating (1.1) 0.4 Net cash provided by (used in) continuing
operating activities 27.1 (22.3) Net cash provided by (used in)
discontinued operating activities 0.1 45.2 Net cash provided by
(used in) operations 27.2 22.9 Cash flows from investing
activities: Sale of assets 5.7 90.1 Purchase of assets (17.5) (3.5)
Net cash provided by (used in) investing activities (11.8) 86.6
Cash flows from financing activities: Net borrowings (repayments)
on credit facilities (7.4) (165.6) Net borrowings on DIP Financing
--- (7.5) Net repayments on long-term debt (2.6) --- Deferred
financing costs (0.3) (2.5) Net cash provided by (used in)
financing activities (10.3) (175.6) Net increase (decrease) in cash
5.1 (66.1) Cash, beginning of period 6.3 72.4 Cash, end of period
$11.4 $6.3 Note 2: The following schedule is presented as support
for the combined results shown above. The Combined results are a
non-GAAP measure of financial performance, accordingly they are
labeled as"Unaudited." Amounts shown are a summation of the
relevant periods. Two Months Ten Months Ended Ended December 31,
October 31, 2002 2002 Successor Predecessor Company Company Cash
flows from operating activities: Net income (loss) $(3.3) $51.3
Adjustments to reconcile net income (loss) to net cash provided by
operating activities: Gain on reorganization --- (190.6) Fresh
start adjustments --- 109.7 Net (income) loss from discontinued
operations 1.0 (0.6) Asset impairments and integration --- (0.2)
Gain on sale of property and equipment 0.2 (0.4) Provision for bad
debts 0.2 3.5 Depreciation and amortization --- 7.3 Changes in
operating assets and liabilities, net of non-cash transactions:
Accounts receivable 16.0 (12.9) Inventories 2.7 (25.7) Prepaid
expenses and other 4.2 (6.2) Accounts payable and accrued
liabilities (11.4) 22.0 Income taxes payable --- 10.5 Other
operating (0.6) 1.0 Net cash provided by (used in) continuing
operating activities 9.0 (31.3) Net cash provided by (used in)
discontinued operating activities 5.5 39.7 Net cash provided by
(used in) operations 14.5 8.4 Cash flows from investing activities:
Sale of assets 6.9 83.2 Purchase of assets (0.5) (3.0) Net cash
provided by (used in) investing activities 6.4 80.2 Cash flows from
financing activities: Net borrowings (repayments) on credit
facilities (33.0) (132.6) Net borrowings on DIP Financing (0.7)
(6.8) Net repayments on long-term debt --- --- Deferred financing
costs --- (2.5) Net cash provided by (used in) financing activities
(33.7) (141.9) Net increase (decrease) in cash (12.8) (53.3) Cash,
beginningof period 19.1 72.4 Cash, end of period $6.3 $19.1
DATASOURCE: Metals USA, Inc. CONTACT: Terry Freeman, SVP &
Chief Financial Officer of Metals USA, Inc., +1-713-965-0990 Web
site: http://www.metalsusa.com/
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