Metals USA reports 4th Quarter, Fiscal 2011 Results
01/31/2012 - Metals USA Holdings reported net income of $14.0 million on net sales of $455.7 million for the fourth quarter and net income of $64.6 million on net sales of $1.9 billion for the year ended December 31, 2011.
Metals USA Holdings Corp. reported net income of $14.0 million on net sales of $455.7 million for the fourth quarter and net income of $64.6 million on net sales of $1.9 billion for the year ended December 31, 2011.
Fourth Quarter Results — Net income of $14.0 million compares to net income of $3.1 million for the year-ago fourth quarter. Net sales of $455.7 million reflect an increase of 40.7% over net sales of $323.9 million for the year-ago fourth quarter. Earnings per diluted share (EPS) were $0.37, which compares to EPS of $0.08 for the year-ago fourth quarter.
Metal shipments were 327,000 tons, an increase of 23.1% over metal shipments of 267,000 tons for the year-ago fourth quarter. Toll processed tonnage was 33,000 tons, compared to 15,000 tons for the fourth quarter of 2010.
Full-Year Results — Net income of $64.6 million compares to net income of $11.5 million for the fiscal year 2010, while net sales of $1.9 billion reflect an increase of 46.0% over net sales of $1.3 billion for fiscal year 2010. Fiscal year 2011 EPS was $1.73 compared to $0.34 for fiscal year 2010.
Metal shipments were 1,396,000 tons, up 32.0% compared to metal shipments of 1,059,000 tons for fiscal year 2010. Toll processed tonnage was 156,000 tons compared to 51,000 tons for fiscal year 2010.
Management Comments — "Our 2011 results are a clear demonstration that Metals USA is able to consistently generate strong profits even under less than ideal business conditions,” stated Lourenco Goncalves, the company's Chairman, President and CEO. “The fourth quarter was no different, and Metals USA delivered the great results we planned and diligently worked for. In an environment best characterized by slow economic recovery and inconsistent metal price direction, Metals USA strengthened our business with established customers, developed relationships with new customers, and expanded our market reach.
"First quarter demand looks solid, and current price trends are favorable. We believe 2012 domestic steel consumption growth will outpace GDP growth," concluded Goncalves.
Financial Results — Adjusted EBITDA was $34.5 million for the fourth quarter of 2011, an increase of $17.7 million compared to the company's Adjusted EBITDA of $16.8 million for the year-ago fourth quarter. For the fiscal year 2011, the company recorded Adjusted EBITDA of $163.1 million, compared to $85.0 million for fiscal year 2010.
The company had $227.7 million drawn under its asset-based credit facility at December 31, 2011, with excess availability of $163.8 million. Net debt (defined as total outstanding debt minus cash) decreased by $14.7 million during the quarter to $456.5 million as of December 31, 2011. Net cash used in operating activities for 2011 was $12.3 million. Capital expenditures during 2011 were $21.8 million.
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.
