Metals USA Holdings Corp. reported its results for the three and six month periods ended 30 June 2012.

Net sales for the second quarter of 2012 were $537.1 million, up 6% from net sales of $505.6 million for the second quarter of 2011. Net income for the second quarter of 2012 was $19.0 million, compared to net income of $21.5 million in the second quarter of 2011. Net sales improved 2% and net income improved 17% compared to the first quarter of 2012. Earnings per diluted share were $0.51 in the second quarter of 2012 compared to $0.57 in the second quarter of 2011.

Net sales for the first six months of 2012 were $1,062.4 million, up 13% from net sales of $937.9 million for the first six months of 2011. Net income for the first six months of 2012 was $35.3 million, compared to net income of $33.9 million for the first six months of 2011. Earnings per diluted share were $0.94 for the first six months of 2012, compared to $0.91 for the first six months of 2011.

Metal shipments were 413,660 tons for the second quarter of 2012, up 15% from metal shipments of 360,430 tons in the second quarter of 2011. Metal shipments for the first six months of 2012 were 816,452 tons, up 12% compared to metal shipments of 728,342 tons for the first six months of 2011. Toll processed tonnage was 52,470 tons during the second quarter of 2012, compared to 42,077 tons for the second quarter of 2011. Toll processed tonnage was 92,719 tons during the first six months of 2012, compared to 86,634 tons for the first six months of 2011.

Lourenco Goncalves, the company’s Chairman, President and CEO, stated, "We are very pleased to achieve yet another quarter of strong results. Despite a persistently weak pricing environment in the second quarter, Metals USA delivered sequential growth, generating more revenues and profit in Q2 than in the first quarter."

Mr. Goncalves concluded, "Several steel mills have announced price increases at the outset of Q3, but end users continue to be skeptical regarding the ultimate direction prices will go. We expect our customers’ purchasing behavior to be similar to their Q2 behavior, and have positioned our inventory accordingly. Consequently, we expect a decrease in both working capital and net debt during the third quarter."

Adjusted EBITDA, a non-GAAP financial measure used by Metals USA and its lenders to evaluate the performance of the business, was $45.2 million for the second quarter of 2012 compared to $50.0 million for the second quarter of 2011, and $41.0 million for the first quarter of 2012. Adjusted EBITDA was $86.2 million for the first six months of 2012 compared to $87.3 million for the first six months of 2011. As of June 30, 2012, the company’s trailing twelve month Pro Forma Adjusted EBITDA was $163.7 million.

Metals USA had $262.0 million drawn under its asset-based credit facility at June 30, 2012 with excess availability of $175.2 million, compared to excess availability of $163.8 million at December 31, 2011. Net debt, a non-GAAP measure defined as total outstanding debt less cash on hand, was $487.3 million as of June 30, 2012, an increase of $4.2 million from the first quarter of 2012. Net cash used in operating activities for the first six months of 2012 was $5.5 million. Capital expenditures were $4.0 million for the three months ended June 30, 2012 and $8.5 million for the first six months of 2012.