Net Sales Increase 58.3%
HOUSTON, July 19 /PRNewswire-FirstCall/ -- Metals USA, Inc.
(Nasdaq: MUSA), a leader in the metals processing and distribution industry,
today announced results for the three and six months ended June 30, 2004. Net
income in the second quarter of 2004 was $33.7 million, or $1.63 per share,
compared to $2.3 million, or a $0.11 per share for the second quarter of 2003.
The second quarter results were an improvement over the net income of $18.5
million or $0.91 per share reported in the first quarter of 2004. The primary
driving force behind the record numbers achieved during the second quarter
this year were an average increased sales price of 39.7%, coupled with a 21.4%
combined increase in shipped tonnage by the Flat Rolled and Plates and Shapes
Divisions when compared to the same period last year.
Net sales for the second quarter of 2004 were $383.6 million, compared to
sales of $242.3 million reported for the second quarter of 2003, and above
sales of $319.2 million reported in the first quarter of 2004. Operating
income for the second quarter of 2004 was $56.5 million, compared to operating
income of $5.0 million reported in the second quarter of 2003, and better than
the operating income of $31.7 million reported in the first quarter of 2004.
Sales for the first six months of 2004 were $702.8 million, compared to
sales of $468.6 million reported for the first six months of 2003. Net income
in the first six months of 2004 was $52.2 million, or $2.52 per share,
compared to $2.1 million or $0.10 per share for the first six months of 2003.
C. Lourenco Goncalves, President and CEO stated, "We are pleased to
announce Metals USA's record quarterly results. I want to express my sincere
appreciation to each employee of our Company as the record results are truly a
reflection of their commitment to the improvement of our relationships with
both suppliers and customers. Mr. Goncalves continued: "It is clear that our
business has changed. As far as Metals USA is concerned, we are now a
world-class company prepared to successfully compete and make profits. At
this point, we are confident that we will accomplish strong results in the
second half of the year."
Metals USA has scheduled a conference call for Monday, July 19, 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 August 20, 2004. To access the replay, dial (888) 203-1112 and enter
the pass code 717065.
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-Qs 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.
Unaudited Consolidated Statements of Operations
(In millions, except per share amounts and shipments)
Three Months Ended Six Months Ended
June 30, March 31, June 30,
2004 2003 2004 2004 2003
Revenues:
Net sales $383.6 $242.3 $319.2 $702.8 $468.6
Cost of sales 264.3 183.5 225.3 489.6 357.2
Gross profit 119.3 58.8 93.9 213.2 111.4
Operating cost and expenses:
Operating and delivery 36.1 31.3 37.0 73.1 61.2
Selling, general and
administrative 26.3 22.4 24.9 51.2 43.6
Depreciation and
amortization 0.4 0.1 0.3 0.7 0.1
Operating income 56.5 5.0 31.7 88.2 6.5
Other (income) expense:
Interest expense 2.0 1.6 1.7 3.7 3.3
Other (income) expense, net - (0.2) (0.4) (0.4) (0.3)
Income before income taxes and
discontinued operations 54.5 3.6 30.4 84.9 3.5
Provision for income taxes 20.8 1.3 11.9 32.7 1.3
Income before discontinued
operations 33.7 2.3 18.5 52.2 2.2
Discontinued operations,
net of taxes - - - - (0.1)
Net income $ 33.7 $ 2.3 $ 18.5 $ 52.2 $ 2.1
Net income (loss) per share -
basic:
Before discontinued
operations $ 1.67 $ 0.11 $ 0.92 $ 2.58 $ 0.11
Discontinued operations - - - - (0.01)
Total $ 1.67 $ 0.11 $ 0.92 $ 2.58 $ 0.10
Net income (loss) per share -
diluted:
Before discontinued
operations $ 1.63 $ 0.11 $ 0.91 $ 2.52 $ 0.11
Discontinued operations - - - - (0.01)
Total $ 1.63 $ 0.11 $ 0.91 $ 2.52 $ 0.10
Number of common shares used
in the per share calculations:
Basic 20.2 20.2 20.2 20.2 20.2
Diluted 20.7 20.3 20.4 20.7 20.3
Non GAAP Financial and other
information:
Shipments (in thousands of
tons) 392 323 408 800 627
Reconciliation of EBITDA:
Operating income $ 56.5 $ 5.0 $ 31.7 $ 88.2 $ 6.5
Depreciation and
amortization expense 0.4 0.1 0.3 0.7 0.1
EBITDA $ 56.9 $ 5.1 $ 32.0 $ 88.9 $ 6.6
We believe that EBITDA is commonly used as a measure of performance for
companies in our industry and is frequently used by analysts, investors,
lenders and other interested parties to evaluate a company's financial
performance and its ability to incur and service debt. EBITDA should not
be considered as a measure of financial performance under accounting
principles generally accepted in the United States. The items excluded
from EBITDA are significant components in understanding and assessing
financial performance. EBITDA should not be considered in isolation or as
an alternative to net income, cash flows generated by operating,
investing or financing activities or other financial statement data
presented in the consolidated financial statements as an indicator of
operating performance or as a measure of liquidity.
Metals USA, Inc.
Unaudited Consolidated Condensed Balance Sheets
(In millions)
June 30, March 31, December 31,
2004 2004 2003
Assets
Current assets:
Cash $13.9 $12.9 $11.4
Accounts receivable,
net of allowance of $8.2 and
$6.9 respectively 184.9 169.3 125.0
Inventories 299.0 270.6 240.0
Prepaid expenses and other 5.9 7.9 8.4
Total current assets 503.7 460.7 384.8
Property and equipment, net 30.1 22.1 17.6
Other assets, net 5.0 5.5 4.8
Total assets $538.8 $488.3 $407.2
Liabilities and Stockholders' Equity
Current liabilities:
Accounts payable $57.8 $50.6 $48.9
Accrued liabilities 38.1 32.9 31.0
Income taxes payable 15.7 10.8 1.0
Current portion of long-term debt 3.7 0.5 0.5
Total current liabilities 115.3 94.8 81.4
Long-term debt, less current
portion 161.6 166.4 118.2
Other long-term liabilities 7.0 6.9 7.0
Total liabilities 283.9 268.1 206.6
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; 0.0 0.0 0.0
20,173,910 shares issued and
outstanding at June 30, 2004 and
20,154,710 shares issued and
outstanding at December 31, 2003 0.2 0.2 0.2
Additional paid-in capital 198.3 197.3 196.2
Retained earnings 56.4 22.7 4.2
Total stockholders' equity 254.9 220.2 200.6
Total liabilities and
stockholders' equity $538.8 $488.3 $407.2
Metals USA, Inc.
Unaudited Consolidated Condensed Statements of Cash Flows
(In millions)
Six Months Ended
June 30,
2004 2003
Cash flows from operating activities:
Net income $ 52.2 $ 2.1
Adjustments to reconcile net income to net
cash provided by operating activities:
Net income from discontinued operations - 0.1
Provision for bad debts 2.3 1.6
Depreciation and amortization 0.7 0.1
Changes in operating assets and
liabilities:
Accounts receivable (62.2) (14.3)
Inventories (59.0) 35.3
Prepaid expenses and other 2.4 14.2
Accounts payable and accrued
liabilities 16.0 8.4
Income taxes payable 14.7 1.3
Other operating 2.0 2.0
Net cash provided by (used in)
continuing operating
activities (30.9) 50.8
Net cash provided by (used in) discontinued
operating activities - (0.3)
Net cash provided by (used in)
operations (30.9) 50.5
Cash flows from investing activities:
Sale of assets 0.5 5.5
Purchase of assets (10.1) (4.2)
Net cash provided by
(used in) investing
activities (9.6) 1.3
Cash flows from financing activities:
Net borrowings (repayments) on credit
facilities 43.4 (45.9)
Borrowings of long-term debt 0.4 -
Repayments of long-term debt (0.2) (2.4)
Deferred financing costs (0.8) -
Issuance of common stock 0.2 -
Net cash provided by
(used in) financing
activities 43.0 (48.3)
Net increase (decrease) in cash 2.5 3.5
Cash, beginning of period 11.4 6.3
Cash, end of period $ 13.9 $ 9.8
SOURCE Metals USA, Inc.
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Related links:
http://www.metalsusa.com
CONTACT:
Terry L. Freeman, Sr. Vice President, CFO of
Metals USA, Inc., +1-713-965-0990
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