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[February 11, 2013]
Metals USA Posts 2012 Net Sales Results
Feb 11, 2013 (Close-Up Media via COMTEX) -- Metals USA Holdings Corp. reported its results for the three and twelve month periods ended December 31.
In a release on February 5, the Company noted that net sales for the fourth quarter of 2012 were $437.5 million, compared to net sales of $455.7 million for the fourth quarter of 2011. Fourth quarter 2012 shipments of 353,000 tons were 8 percent higher than the 327,000 tons shipped during the fourth quarter of 2011 and better than the 3.1 percent decline for the industry as reported by the Metals Service Center Institute. Earnings per diluted share were $0.10 in the fourth quarter of 2012. Fourth quarter 2012 results included non-recurring pre-tax expense of $6.3 million on debt extinguishment in connection with the Company's senior secured note refinancing, $0.6 million of non-cash pretax annual pension expense, and $0.2 million of pre-tax expense attributable to secondary offering costs. These discrete items negatively impacted EPS by $0.13 per share in the fourth quarter of 2012. Excluding these discrete items, fourth quarter 2012 diluted EPS was $0.23 per share. Fourth quarter 2011 diluted EPS was $0.37 per share.
Net sales for fiscal year 2012 were $1,983.6 million, compared to net sales of $1,885.9 million for fiscal year 2011. Shipments for fiscal year 2012 totaled 1,550,000 tons, 11.0 percent higher than the 1,396,000 tons shipped during fiscal year 2011. Fiscal year 2012 earnings per diluted share were $1.41 per share. Excluding the non-recurring discrete items recorded during fiscal 2012 and discussed above, diluted EPS was $1.55 per share for fiscal year 2012. Fiscal year 2011 diluted EPS was $1.73.
Lourenco Goncalves, the Company's Chairman, President and C.E.O., stated: "During the fourth quarter the market continued to be impacted by too much steel chasing too few orders. A prevailing weak business environment, compounded with typical seasonality around the holidays, forced us to choose between preserving margin or sales volumes, and we chose to maintain margin. As a consequence, our Q4 gross margin of 23.2 percent was consistent with margins achieved throughout 2012." Goncalves concluded: "During the fourth quarter, we also refinanced our long term debt, thereby extending its maturity and dramatically reducing our annual interest expense. We expect the refinancing to improve our free cash flow by approximately $10 million per year. We believe the demand weakness experienced in late 2012 is now behind us and we have begun 2013 with well positioned inventory and our usual attitude to profitably win market share through execution and customer service." On December 31, Metals USA had $216.3 million drawn under its asset-based credit facility with excess availability of $194.3 million, compared to excess availability of $163.8 million on December 31, 2011. Net debt, a non-GAAP measure defined as total outstanding debt less cash on hand, was $436.3 million as of December 31.
Net cash provided by operating activities for fiscal year 2012 was $67.2 million. Capital expenditures were $6.8 million for the three months ended December 31, and $20.1 million for fiscal year 2012.
On February 5, 2013, the Company's Board of Directors declared a regular quarterly cash dividend of $0.06 per share. The dividend will be paid on March 12, 2013 to stockholders of record as of the close of business on February 26, 2013, the record date for the dividend.
The declaration and payment of any future dividends will be at the discretion of the Board of Directors, subject to the Company's financial results, cash requirements, and other factors deemed relevant by the Board of Directors. Investors are cautioned that the Company's dividend policy is not a guarantee that a dividend will be declared or paid in any particular period in the future.
Metals USA provides a range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets.
More information: www.metalsusa.com ((Comments on this story may be sent to email@example.com))
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