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ALJ Announces 2nd Quarter Earnings

05/21/2012 - ALJ, the parent company of Kentucky Electric Steel, reported net income of $3.107 million on net sales of $44.384 million for the second quarter, and net income of $4.831 million on net sales of $83.279 million for the six months ended March 31, 2012.

ALJ, the parent company of Kentucky Electric Steel, reported net income of $3.107 million on net sales of $44.384 million for the second quarter, and net income of $4,831 million on net sales of $83.279 million for the six months ended March 31, 2012. 
Second Quarter Results — The $3.107 million net income for the second quarter compares to net income of $2.290 million for the year-ago second quarter. The $44.384 million net sales for the second quarter compares to net sales of $40.292 million for the year-ago second quarter. 
Six Month Results — The $4,831 million net income for the six months ended March 31, 2012 compare to net income of $2,952 million for the comparable six months of 2011. Net sales of $83.279 million for the six months ended March 31, 2012 compare to net sales of $72.967 million for the comparable year-ago period. 
“Thus far, fiscal 2012 has been a solid year with a strong second quarter built upon a solid first,” said John Scheel, ALJ’s Chief Executive Officer. “Quarterly results show revenue, operating income, and net income up 10%, 17%, and 36%, respectively, over the same quarter last year. The first half was even better compared to last year’s first half with results up 14%, 32% and 64%, respectively.
 
“The gains made last quarter were mostly due to volume,” added Scheel. “The first quarter of this fiscal year had pricing gains as well, which is why the half was up so strongly.”
 
Jess Ravich, Chairman of the Board, commented, “John and his team have continued their excellent job at the company. KES remained profitable through the recession and is now capitalizing on the recovery. As we have done in the past, we intend to continue to deleverage our balance sheet as the opportunity arises for the benefit of our Common Shareholders.”
 
The company also reported that it has received a request from a shareholder that it re-list its common stock onto a national securities exchange. ALJ intends to include such proposal, including a related proposal to bring about a reverse stock split, in its proxy statement for the 2012 Annual Meeting of Shareholders that is expected to be made available to its shareholders by late June. Assuming its shareholders approve these proposals, ALJ intends to seek a listing of its common stock on a national securities exchange by the end of Calendar 2012. 
 
ALJ is the parent company of KES Acquisition Company, which does business as Kentucky Electric Steel, the owner and operator of a steel minimill near Ashland, Ky., producing both merchant bar quality (MBQ Bar) flats, and special bar quality (SBQ Bar) steel flats.