Metals USA Reports Q2 2010 Results
07/23/2010 - Metals USA Holdings Corp. reported sales revenues of $335.0 million for the second quarter of 2010 ended June 30, 2010. This compares favorably to sales revenues of $287.9 million for the first quarter of 2010 and $267.8 million for the same period a year ago.
Metals USA Holdings Corp. reported sales revenues of $335.0 million for the second quarter of 2010 ended June 30, 2010. This compares favorably to sales revenues of $287.9 million for the first quarter of 2010 and $267.8 million for the same period a year ago.
Metal shipments for the second quarter were 270,000 tons, which betters first quarter 2010 shipments of 249,000 tons and second quarter 2009 shipments of 228,000 tons. Operating income was $17.4 million, compared to $12.7 million for the previous quarter and an operating loss of $19.1 million for the year-ago second quarter.
Net income was $2.5 million, or $0.07 per share. The company incurred a non-recurring loss on the extinguishment of debt related to the redemption of the company's Senior Floating Toggle Notes due 2012 of $3.5 million in the second quarter of 2010 as well as a non-recurring charge of $3.3 million related to termination of its advisory agreement with Apollo upon the completion of the company's initial public offering (IPO). These non-recurring charges decreased second quarter 2010 net income by $4.2 million, or $0.12 per share.
Adjusted EBITDA was $25.7 million for the second quarter, which exceeds first quarter 2010 adjusted EBITDA of $18.2 million and second quarter 2009 adjusted EBITDA of negative $13.5 million. Interest expense for the second quarter of 2010 was $9.5 million, which included $1.4 million of interest on the Toggle Notes. The company also recognized depreciation and amortization expenses of $4.4 million.
"The second quarter was a decisive one for Metals USA. We executed our Initial Public Offering, significantly improved our balance sheet by paying off the Toggle Notes, and purchased a great addition to our company with J. Rubin," said Lourenco Goncalves, the company's Chairman, President, and CEO. "Our inventory, strong balance sheet, and correct attitude toward the business environment will continue to allow Metals USA to capitalize on new growth opportunities."
On April 9, 2010, the company completed its IPO of 11,426,315 shares of common stock at a price of $21.00 per share. On April 14, 2010, it announced the redemption of all of the Toggle Notes with the IPO proceeds. The redemption was completed on May 14, 2010.
Metals USA acquired J. Rubin & Co. on June 28, 2010. J. Rubin operates four locations servicing the Illinois, Wisconsin, and Minnesota markets. J. Rubin's product range consists of carbon steel bars, carbon plate, and laser-cut flat-rolled products.
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.
