Roanoke Electric Steel Corporation Reports Record First Quarter Results
08 March 2005 - 9:41AM
PR Newswire (US)
Roanoke Electric Steel Corporation Reports Record First Quarter
Results ROANOKE, Va., March 7 /PRNewswire-FirstCall/ -- Roanoke
Electric Steel Corporation (NASDAQ:RESC) today reported record
first quarter net earnings of $9,185,874 for the period ended
January 31, 2005, compared to net earnings of $1,533,676 for the
same period last year. Basic earnings per share for the quarter
were $.83 ($.82 diluted), compared to basic earnings per share of
$.14 ($.14 diluted) in the first quarter of 2004. Sales for the
quarter were $131,309,983, also a first quarter record and up 54.2%
from sales of $85,173,685 for the same period last year. Donald G.
Smith, Chairman and CEO, and T. Joe Crawford, President and COO,
stated: "We are very pleased to report that earnings for the first
quarter of fiscal 2005 were the highest first quarter earnings in
the history of our company. While the first quarter has
historically been the most challenging for our company, due to the
holidays and weather issues, to begin fiscal 2005 by establishing a
new earnings record for the quarter is extremely gratifying. The
improved performance for the quarter was, primarily, due to
increased margins for mill products, as demand continued to be
strong. The improved margins were attributable to increased selling
prices. The cost of scrap metal, our principal raw material,
appears to have stabilized, although it remains near historical
highs. "The performance from continuing operations for the first
quarter of 2005 over 2004 was even stronger when taking into
account two unusual items. First, included in the 2005 quarter is
the charge associated with the sale of the assets of RESCO Steel
Products Corporation, a reinforcing bar fabrication operation which
was no longer a good strategic fit for the Company. Second, in the
1st quarter of 2004, we had the benefit of approximately $1,400,000
of additional earnings associated with the graphite electrode class
action settlement, which was not present in 2005. In the absence of
these two items, the improvement in earnings from continuing
operations was over $9,600,000. "Looking forward to the balance of
fiscal 2005, we anticipate that the forces driving our markets will
continue to present healthy price levels and demand for our
products. The nonresidential construction market which began to
show improvements in the second quarter of last year continues to
improve, and we are optimistic that the trend will continue."
(Unaudited) Three Months Ended January 31, 2005 2004 SALES
$131,309,983 $85,173,685 COST OF SALES 102,714,466 76,501,378 GROSS
EARNINGS 28,595,517 8,672,307 OTHER OPERATING EXPENSES (INCOME)
Administrative 7,844,436 6,965,793 Interest expense 851,203
1,122,938 Profit sharing 3,551,807 999,391 Interest income (21,982)
(75,256) Antitrust litigation settlement --- (3,061,820) Total
12,225,464 5,951,046 EARNINGS FROM CONTINUING OPERATIONS BEFORE
INCOME TAXES 16,370,053 2,721,261 INCOME TAX EXPENSE 6,506,538
1,084,617 EARNINGS FROM CONTINUING OPERATIONS 9,863,515 1,636,644
DISCONTINUED OPERATIONS LOSS FROM OPERATIONS OF DISCONTINUED
OPERATIONS (INCLUDING LOSS ON SALE) (1,118,263) (171,613) INCOME
TAX BENEFIT (440,622) (68,645) LOSS ON DISCONTINUED OPERATIONS
(677,641) (102,968) NET EARNINGS $9,185,874 $1,533,676 Earnings
(loss) per share of common stock: Earnings from continuing
operations: Basic $0.89 $0.15 Diluted $0.88 $0.15 Loss on
discontinued operations: Basic (0.06) (0.01) Diluted (0.06) (0.01)
Net earnings per share of common stock: Basic $0.83 $0.14 Diluted
$0.82 $0.14 Cash dividends per share of common stock $0.11 $0.05
Weighted average number of common shares outstanding: Basic
11,038,710 10,932,813 Diluted 11,177,438 10,970,133 This release
contains various forward-looking statements which represent the
Company's expectations or beliefs concerning future events. In
accordance with the safe harbor provisions of the securities laws
regarding such statements, the Company notes that a variety of
factors, including economic and industry conditions, availability
and prices of utilities, supplies and raw materials, prices of
steel products, foreign and domestic competition, trade policies
affecting imports and exports, governmental regulations, interest
rates, inflation, labor relations, environmental concerns and
compliance issues and other matters, could cause actual results and
experience to differ materially from those expressed in the
forward-looking statements. Roanoke Electric Steel Corporation has
steel manufacturing facilities in Roanoke, Virginia and Huntington,
West Virginia, producing angles, rounds, flats, channels, beams,
special sections and billets, which are sold to steel service
centers, fabricators, original equipment manufacturers and other
steel producers. Four subsidiaries are involved in various
steel-related activities, consisting of scrap processing and bar
joists and truck trailer beam fabrication. DATASOURCE: Roanoke
Electric Steel Corporation CONTACT: Mark G. Meikle, or William M.
Watson, Jr., of Roanoke Electric Steel Corporation, +1-504-342-1831
Web site: http://www.roanokesteel.com/
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