ALJ Announces 2nd Quarter Earnings
05/17/2011 - ALJ, the parent company of Kentucky Electric Steel, reported net income of $2,289,928 on net sales of $40.29 million for the second quarter, and net income of $2,952,438 on net sales of $72.97 million for the six months ended March 31, 2011.
ALJ, the parent company of Kentucky Electric Steel, reported net income of $2,289,928 on net sales of $40.29 million for the second quarter, and net income of $2,952,438 on net sales of $72.97 million for the six months ended March 31, 2011.
The second quarter net income of $2,289,928 compares to net income of $878,865 for the year-ago second quarter. Six-month net income of $2,952,438 compares to net income of $725,759 for the six months ended March 31, 2010.
“Thus far, 2011 has been a solid recovery year with a strong second quarter built upon a solid first,” said John Scheel, ALJ’s Chief Executive Officer. “Mill bookings continue to pace at near-capacity levels notwithstanding the on-going weakness in non-residential construction markets.”
“John and his team have done an excellent job steering the company through the recession and positioning the Company to capitalize on the recovery. The Meltshop and the Mill are operating at their highest efficiency since our restart in 2004,” said Jess M. Ravich, ALJ’s Chairman of the Board.
Ravich further commented, “Due to the company’s lack of cash and the low trading price of our stock at the time of the KES acquisition (it was at 2 cents), we took on significant debt and preferred in order to acquire KES. The Board has undertaken to deleverage the company since that time. As of September, 2005, KES owed $75 million in subordinated debt and preferred. Today that number is down to less than $43 million. In addition, ALJ owed over $10 million in debt and preferred as of September 30, 2005 and that number is now down to $4 million.
“It is our intention to continue to deleverage our balance sheet for the benefit of our Common Shareholders,” concluded Ravich.
ALJ is the parent company of KES Acquisition Co., which does business as Kentucky Electric Steel, the owner and operator of a steel minimill near Ashland, Ky., producing both merchant bar quality (MBQ) flats, and special bar quality (SBQ) steel flats.
