Gerdau Ameristeel Revises Financial Information Related to Subsidiary Guarantors
10/10/2007 - Gerdau Ameristeel announces revision of the footnote presentation of historical financial information related to its subsidiary guarantors.
Gerdau Ameristeel Corp. announced the revision of the footnote presentation of historical financial information related to its subsidiary guarantors. The revisions do not affect the company's consolidated financial position or consolidated results of operations for any of the affected periods, nor do the revisions adversely impact its compliance with debt covenants or ratios.
The revisions are in the condensed consolidating financial information regarding the company, GUSAP Partners, the combined guarantors and the combined non-guarantors of the company's senior notes presented in the footnotes to the financial statements. U.S. securities laws require that these data be presented in the notes to the company's financial statements for as long as the senior notes are outstanding.
Previously reported financial information did not reflect the investment in subsidiaries under the equity method. Additionally, a subsidiary which was a guarantor subsidiary was incorrectly classified as a non-guarantor subsidiary. The company is concurrently filing financial statements giving effect to the change as at and for the years ended December 31, 2006, and 2005; as of March 31, 2007; and for the three months ended March 31, 2007 and 2006.
Revisions for the three and six months ended June 30, 2007 were reflected in the company's financial statements for the six months ended June 30, 2007, filed previously. The financial statements being filed revise the note as at and for the years ended December 31, 2006 and 2005; as at March 31, 2007; and for the three months ended March 31, 2007, and 2006.
The company notes that it has discussed these matters with Deloitte & Touche LLP, its independent registered public accounting firm, and PriceWaterhouseCoopers LLP, its former independent registered public accounting firm.
Gerdau Ameristeel is the second-largest mini-mill steel producer in North America with annual manufacturing capacity of approximately 12 million tons of mill finished steel products. Through its vertically integrated network of 19 minimills (including one 50% owned joint venture minimill), 19 scrap recycling facilities and 62 downstream operations, Gerdau Ameristeel serves customers throughout North America. The Company's products are generally sold to steel service centers, to steel fabricators, or directly to original equipment manufactures for use in a variety of industries.
