Steel Technologies Reports First Quarter Results
LOUISVILLE, Ky.--Jan. 24, 2006--Steel Technologies Inc. today reported results for the first fiscal quarter ended December 31, 2005. For the three months ended December 31, 2005, sales were $212.6 million, a 16% decline from the record $254.0 million reported for the same period a year ago. Net income for the quarter was $3.2 million or $0.25 per diluted share compared with a record $14.5 million or $1.11 per diluted share in the year-earlier period."In our first fiscal quarter of 2006, volume improved 6% sequentially from the previous quarter, along with quarter-to-quarter improvements in operating margins and net income," said Bradford T. Ray, Chairman and Chief Executive Officer. "Although shipments of approximately 270,000 tons were down 8% from year earlier levels, this was in line with expected shipments as indicated in an earlier release.
"Our Mi-Tech Steel joint venture experienced solid results during the quarter," Ray added. "Mi-Tech continues to play an important role in our North American platform."
Concluding, Ray said, "Looking ahead to the second quarter, our current demand is solid across all segments. We expect to realize ongoing sequential improvement in our operating margins, and are very confident that we will continue to expand the value we bring to the market."
A live broadcast of Steel Technologies' conference call will begin at 10:00 a.m. Eastern Time today. An online replay will be available approximately two hours following the conclusion of the live broadcast and will continue through February 24, 2006. A link to this event will be available at the Company's website.
Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, railcar, construction, hardware, and consumer goods. The Company has 20 facilities, including its joint-venture operations, located throughout the United States and Mexico. More information about the Company may be found on the World Wide Web at www.steeltechnologies.com.
STEEL TECHNOLOGIES INC.
Condensed Consolidated Balance Sheets
(In thousands)
Dec. 31 Sept. 30
2005 2005
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ASSETS
Current assets:
Cash and cash equivalents $ 17,524 $ 30,991
Trade accounts receivable, net 98,639 112,033
Inventories 154,662 121,423
Deferred income taxes 1,541 1,621
Prepaid expenses and other assets 6,488 6,289
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Total current assets 278,854 272,357
Property, plant and equipment, net 112,961 110,501
Investments in unconsolidated affiliates 26,031 25,182
Goodwill 18,148 18,148
Other assets 3,020 2,751
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$ 439,014 $ 428,939
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LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 67,574 $ 59,559
Accrued liabilities 11,545 13,394
Income taxes payable 2,267 1,244
Deferred income taxes 193 254
Long-term debt due within one year -- --
--------- ---------
Total current liabilities 81,579 74,451
Long-term debt 80,000 80,000
Deferred income taxes 15,477 15,972
Other long-term liabilities 4,234 3,757
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181,290 174,180
Commitments and contingencies
Shareholders' equity:
Preferred stock -- --
Common stock 70,808 70,662
Treasury stock (24,486) (24,475)
Additional paid-in capital 5,864 5,494
Retained earnings 208,409 207,116
Accumulated other comprehensive loss (2,871) (4,038)
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Total shareholders' equity 257,724 254,759
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$ 439,014 $ 428,939
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STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income
(In thousands, except per share results)
For the
Three Months Ended
December 31
----------------------
2005 2004
--------- ---------
Sales $ 212,554 $ 254,016
Cost of goods sold 199,367 221,570
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Gross profit 13,187 32,446
Selling, general and administrative expenses 8,756 10,121
Equity in net income of unconsolidated
affiliates 848 1,471
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Operating income 5,279 23,796
Interest expense, net 699 1,179
Loss on disposals/writeoffs of property,
plant and equipment 2 --
--------- ---------
Income before income taxes 4,578 22,617
Provision for income taxes 1,344 8,100
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Net income $ 3,234 $ 14,517
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Diluted weighted average number of common
shares outstanding 13,085 13,090
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Diluted earnings per common share $ 0.25 $ 1.11
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Basic weighted average number of common
shares outstanding 12,936 12,840
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Basic earnings per common share $ 0.25 $ 1.13
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Cash dividends per common share $ 0.15 $ 0.10
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