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ALJ Reports Third Quarter Results
08/16/2011 - ALJ Regional Holdings, the parent company of Kentucky Electric Steel, reported net income of $2.5 million on revenue of $43.2 million for the third quarter and net income of $5.5 million on revenue of $116.1 million for the nine months ended June 30, 2011.
ALJ Regional Holdings, Inc., the parent company of Kentucky Electric Steel, reported net income of $2.5 million on revenue of $43.2 million for the third quarter and net income of $5.5 million on revenue of $116.1 million for the nine months ended June 30, 2011.
The third quarter net income of $2.5 million compares to net income of $4.5 million for the year-ago third quarter. Last year’s results included an approximately $4.0 million one-time gain related to the discounted repurchase of debt associated with refinancing the company’s working capital line of credit in May, 2010.
The third quarter revenue, $43.2 million, compares to revenue of $31.0 million for the same period last year.
Nine-month net income, $5.5 million, compares to net income of $5.2 million for the comparable year-ago period. Nine-month revenue of $116.1 million compares to revenue of $80.5 million for the same period last year.
“A year ago, we expected that 2011 would be a recovery year after two tough, but profitable, recession years,” said John Scheel, ALJ’s Chief Executive Officer. “The latest results once again confirm our expectations.
“We performed according to plan during the third quarter, increasing shipments by 23% over last year’s third quarter. Near-record operating profit of $10.3 million boosted net income, which grew five-fold over last year, after adjusting for the one-time gain of approximately $4.0 million we recorded last year,” said Scheel. “Overall, we had an excellent quarter.”
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.
