ALJ Announces Results for Fiscal Year 2011
01/03/2012 - ALJ Regional Holdings, the parent company of Kentucky Electric Steel, posted net income of $5.919 million on net sales of $45.89 million for the fourth quarter, and net income of $11.417 million on net sales of $162.01 million for the year ended September 30, 2010.
ALJ Regional Holdings, Inc., the parent company of Kentucky Electric Steel, posted net income of $5.919 million on net sales of $45.89 million for the fourth quarter, and net income of $11.417 million on net sales of $162.01 million for the year ended September 30, 2010.
The $5.919 million 4th quarter net income ($0.11 per share) compares to net income of $0.472 million ($0.01 per share) for the year-ago fourth quarter. Net sales of $45.89 million compares to net sales of $0.472 million for the year-ago fourth quarter.
The fiscal year net income of $11,417,131 ($0.21 per share) compares to net income of $5,688,400 ($0.11 per share) for the fiscal year ended September 30, 2010. Net sales of $162,021 compare to net sales of $112,828 for the previous fiscal year.
Management Comments — “ALJ rewrote almost all of its records this year,” commented John Scheel, ALJ’s Chief Executive Officer. “While our revenue was only 87% of our record 2008 revenue, our operating income, net income and earnings per share were all records. That we achieved this level of profitability despite a lower capacity utilization rate is testament to the progress we have made regarding the cost control of our operations and the improvements by our personnel and their practices at KES.
“Our strong 2011 performance allowed ALJ to take several steps to improve our future outlook. First, we retired all of the outstanding debt and preferred at the parent level. This will allow ALJ more flexibility in the future.
“Second, we refinanced our Credit Facility and replaced it with a larger, lower-cost facility, which enabled us to pay down significant debt at the KES level. Not only have we reduced our interest rate but, in connection with the refinancing, we were able to repurchase 3.66% of KES’ Series B Common Stock, thereby increasing our ownership percentage of KES to 83.87%.
“Third, our consistent annual profitability has enabled us to not only utilize the NOL’s at the parent but, beginning in 2011, we were able to monetize some of the NOL and add that amount to the balance sheet.
We are very proud of what our employees have accomplished since we have restarted the operations at KES,” concluded Scheel. “From 2005 to 2011, the Shareholder’s Equity has grown by over $53 million, even with a major recession thrown in.”
ALJ is the parent of Kentucky Electric Steel, a steel mini-mill near Ashland, Ky. Kentucky Electric produces steel bar as both merchant bar quality flats (MBQ Bar Flats) and special bar quality flats (SBQ Bar Flats).
