Metals USA Reports First Quarter 2012 Results
04/20/2012 - Metals USA Holdings Corp. reported net sales for the first quarter of 2012, ended March 31, of $525.3 million, up 22% from net sales of $432.3 million recorded for the first quarter of 2011. Net income was $16.3 million, compared to first quarter 2011 net income of $12.4 million.
Metals USA Holdings Corp. reported net sales for the first quarter of 2012, ended March 31, of $525.3 million, up 22% from net sales of $432.3 million recorded for the first quarter of 2011. Net income for the first quarter of 2012 was $16.3 million, compared to first quarter 2011 net income of $12.4 million. Earnings per diluted share (EPS) were $0.44 in the first quarter of 2012, 33% higher than EPS of $0.33 recorded for the first quarter 2011.
Metal shipments were 403,000 tons for the first quarter of 2012, up 10% from 368,000 tons in the first quarter of 2011. Toll processed tonnage was 40,000 tons during the first quarter of 2012 compared to 45,000 tons for the prior year’s first quarter.
Lourenco Goncalves, the company's Chairman, President and CEO, said: "As we expected and stated on our last quarterly conference call, Q1 2012 was indeed more profitable than Q4 2011. Sequentially from the previous quarter, shipments increased 23%, revenues increased 15%, and net income increased 16%. Our performance is a clear indication that Metals USA's cost-efficient, customer-focused business model is not only benefiting from, but outperforming, the current economic recovery."
Goncalves concluded, "Demand improved in Q1 across most sectors we serve, in particular automotive, aerospace, and oil & gas field services. Based on our current order book and committed business, we expect this trend to continue in the second quarter."
Adjusted EBITDA, a non-GAAP financial measure used by Metals USA and its lenders to evaluate the performance of the business, was $41.0 million for the first quarter of 2012, up 10% from the company's adjusted EBITDA of $37.3 million for the first quarter of 2011. At March 31, 2012, the company's trailing twelve-month pro forma adjusted EBITDA was $169.3 million.
Metals USA had $257.5 million drawn under its ABL Facility at March 31, 2012, with excess availability of $182.1 million, compared to $163.8 million at December 31, 2011. Net debt, a non-GAAP measure defined as total outstanding debt less cash on hand, increased by $26.6 million during the quarter, and was $483.1 million as of March 31, 2012. The change in net debt was due primarily to the recent acquisition of Gregor Technologies and increased accounts receivable resulting from increased sales. Net cash used in operating activities for the first quarter of 2012 was $5.0 million. Capital expenditures were $4.5 million for the three months ended March 31, 2012.
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.
