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TMS Confident as it Reports First Quarter Earnings
05/01/2013 - TMS International Corp., the parent company of Tube City IMS Corporation, a provider of outsourced industrial services to steel mills globally, said it continues to face a challenging industry environment as it reported its first quarter earnings results.
TMS International Corp., the parent company of Tube City IMS Corporation, a leading provider of outsourced industrial services to steel mills globally, announced results for its first quarter ended 31 March 2013.
2013 First Quarter Highlights
- Revenue After Raw Materials Costs in the quarter was US$155.8 million, compared toUS$155.9 million in the first quarter of 2012.
- Adjusted EBITDA for the quarter was US$38.3 million compared to US$36.8 million in the first quarter of 2012, a 4% increase.
- Successfully completed a repricing of its US$300 million term loan facility that is expected to reduce its cash interest costs by approximately US$3.0 million annually.
2013 First Quarter Financial Results
Revenue After Raw Materials Costs, the company's measurement of sales performance, was US$155.8 million, compared to US$155.9 million in the first quarter of 2012.
Revenue After Raw Materials Costs, the company's measurement of sales performance, was US$155.8 million, compared to US$155.9 million in the first quarter of 2012.
Adjusted EBITDA for the first quarter of 2013 was US$38.3 million compared to US$36.8 million of Adjusted EBITDA in the first quarter of 2012. Income before income taxes was US$12.3 million compared to US$0.2 million in the first quarter of 2012. Net income attributable to common stock was US$8.1 million for the first quarter compared with US$0.4 million in 2012.
The company's Adjusted EBITDA Margin for the first quarter of 2013 was 24.6% compared to 23.6% in the first quarter of 2012. Total Revenue for the first quarter was US$589.6 million compared toUS$747.0 million in the first quarter of 2012.
Discretionary cash flow, which the company uses to measure operating cash flow generation, was US$28.0 million for the first quarter of 2013 compared with US$29.1 million in the first quarter of 2012.
Commenting on the first quarter results, Raymond Kalouche, president and chief executive officer of TMS International Corp., said, "Our first quarter was consistent with our expectations given the challenging industry environment we continue to face. We are well positioned for future growth in our market and are confident in our ability to meet our outlook for the year."
New Raw Materials Brokerage Office
During the quarter, the company continued to expand its global procurement web with the opening of another Mexico trading office, this one in Mexico City. This expansion into Mexico City complements the company's office in Monterrey, Mexico, and its mill services operations in Mexico and the Caribbean.
Outlook
The company reaffirms its full-year guidance for 2013 adjusted EBITDA in a range of US$152 million to US$160 million, which represents a year-over-year growth rate of 5 to 10%.
The company reaffirms its full-year guidance for 2013 adjusted EBITDA in a range of US$152 million to US$160 million, which represents a year-over-year growth rate of 5 to 10%.
TMS International Corp., through its subsidiaries, including Tube City IMS Corporation, is the largest provider of outsourced industrial services to steel mills in North America as measured by revenue and has a substantial and growing international presence. The company provides mill services at 81 customer sites in 11 countries and operates 36 brokerage offices from which it buys and sells raw materials across five continents.
