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EMJ Reports Fiscal 2004 Results
05/27/2004 -
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EMJ Reports Fiscal 2004 Results
May 27, 2004 — The Earle M. Jorgensen Co. reported net income of $10.0 million on revenues of $322.1 million for the fourth fiscal quarter of 2004 and net income of $15.3 million on revenues of $919.9 million for the fiscal year ended March 31, 2004.
EMJ announced that the proposed restructuring of the combined capital structure of EMJ with Earle M. Jorgensen Holding Co., Inc., its parent company, has been delayed. Because of the delay, additional negotiations among Earle M. Jorgensen Holding Co.'s security holders and changes to the structure of the transaction are required before it can proceed. As EMJ noted in January, the transaction would not have affected its day-to-day operations, and likewise, the delay will not affect its customers, suppliers and employees, who will continue to deal with the Earle M. Jorgensen Co. |
Fourth Quarter Results—Net income, $10.0 million, compares to $8.0 million for the same period in fiscal 2003. Financial results include a charge to record inventory on a last in first out basis (LIFO) of $13.8 million. Revenues increased 30.9% to $322.1 million and operating income increased 16.7% to $24.5 million, when compared to $246.0 million and $21.0 million, respectively, for the same period in fiscal 2003. The company had record revenues for the quarter, with tonnage shipped up approximately 22% from the prior-year quarter.
Full Year Results—Net income, $15.3 million, compares to $2.4 million for the same period in fiscal 2003. Results included a gain of $1.2 million from the sale of surplus property, $4.9 million of pre-tax income for redemption of life insurance policies and a charge related to LIFO of $14.3 million. Revenues increased 13.1% to $1,040.4 million when compared to $919.9 million for fiscal 2003. Operating income increased 36.0% to $69.5 million as compared to $51.1 million for fiscal 2003. Fiscal 2003 included a loss of $12.3 million resulting from early termination of debt.
Comments—Maurice S. Nelson Jr., EMJ's President and CEO stated, "We are very pleased with our record fourth quarter results. We were well positioned to respond to the recent dramatic changes in the industrial metals market. Our goal is to maintain a consistent source of metals to our customers who depend on EMJ for their materials supplies."
"Nearly all of the industries that we serve have shown dramatic growth in demand, and most of our locations shipped record volumes in the fourth quarter."
EMJ is one of the largest independent distributors of metal products in North America with 36 service and processing centers. EMJ inventories more than 25,000 different bar, tubing, plate, and various other metal products, specializing in cold finished carbon and alloy bars, mechanical tubing, stainless bars and shapes, aluminum bars, shapes and tubes, and hot-rolled carbon and alloy bars.
