Steel Technologies Reports 1st Quarter Results
01/21/2004 -
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Steel Technologies
Reports
1st Quarter Results
Jan. 21, 2004 — Steel Technologies Inc. reported net income of $2.4 million on sales of $130.8 million for the first quarter of fiscal 2004, which ended December 31, 2003.
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Steel Technologies recently filed a registration statement with the Securities and Exchange Commission relating to a proposed public offering of 2,700,000 shares of its common stock. The company will issue and sell 2,500,000 shares and the selling shareholders named in the registration statement will sell 200,000 shares. CIBC World Markets, McDonald Investments Inc., SunTrust Robinson Humphrey, and BB&T Capital Markets will manage the offering. Steel Technologies has agreed to grant the underwriters an option to purchase up to 15% of the total number of shares to be sold in this offering to cover over-allotments. A registration statement relating to these securities has been filed with the Securities and Exchange Commission but has not yet become effective. NOTE: Securities may not be sold nor may offers to buy be accepted prior to the time the Registration Statement becomes effective. Steel Technologies cautions that the announcement shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state. |
Sales, a record $130.8 million, represent a 4% increase from $126.0 million for the same period a year ago. Net income, $2.4 million ($0.24 per diluted share) compares with net income of $3.8 million ($0.38 per diluted share) in the year-earlier quarter. Results for the first fiscal quarter of 2004 reflected the benefit of approximately $0.04 per share as a result of reductions in state property tax obligations and health insurance reserves.
"We achieved record sales for the quarter, reflecting continued market growth and the impact of a recovering economy," said Bradford T. Ray, Chairman and CEO. "Our tons shipped were up 7.5% over year-earlier levels and our operating income continued to improve sequentially from the previous two quarters. In addition, our Mi-Tech Steel joint venture's earnings increased on the strength of higher volumes through its strategically positioned locations.
"Looking ahead, our booking rate has improved across all regions of our business as a result of new business awarded for 2004, along with an improving economy," continued Mr. Ray. "Our strategic investments and operating efficiency gains over the past few years have us well positioned to manage this growth, and we are seeing increased opportunities as a result of a strong national presence across our broad North American platform of operations."
Steel Technologies processes flat-rolled steel to specific thickness, width, temper, finish and shape requirements for automotive, appliance, lawn and garden, office furniture, agriculture, railcar, construction, hardware, and consumer goods. The company operates 16 production facilities located throughout the United States and Mexico, including five at Mi-Tech Steel, Inc. For the fiscal year ended September 30, 2003, Steel Technologies reported sales of $512.7 million and net income of $9.2 million ($0.92 per diluted share).
