ALJ Regional Holdings, Inc. (Pink Sheets: ALJJ) today announced that for the fiscal year ended September 30, 2011, it posted net income of $11,417,131 as compared to net income of $5,688,400 for the fiscal year ended September 30, 2010. ALJ is the parent of Kentucky Electric Steel ("KES"), a steel mini-mill near Ashland, Kentucky. KES produces steel bar as both merchant bar quality flats (MBQ Bar Flats) and special bar quality flats (SBQ Bar Flats).

For the 4th quarter ending September 30, 2011, ALJ's net income was $5.919 million as compared to a net income of $0.472 million for the 4th quarter ending September 30, 2010.

 

ALJ Regional Holdings, Inc.

(in thousands except per share )

 
Year ended Sept. 30     2011     2010
Net Sales $162,021 $112,828
Net Income 11,417 5,688
Per Share 0.21 0.11
4th qtr ended Sept. 30     2011     2010
Net Sales $45,890 $32,375
Net Income 5,919 472
Per Share 0.11 0.01

According to John Scheel, ALJ's Chief Executive Officer, "ALJ rewrote almost all of its records this year. While our revenue was only 87% of our record 2008 revenue, our operating income, net income and earnings per share were all records. That we achieved this level of profitability despite a lower capacity utilization rate is testament to the progress we have made regarding the cost control of our operations and the improvements by our personnel and their practices at KES.

Our strong 2011 performance allowed ALJ to take several steps to improve our future outlook. First, we retired all of the outstanding debt and preferred at the parent level. This will allow ALJ more flexibility in the future.

Second, we refinanced our Credit Facility and replaced it with a larger, lower cost facility which enabled us to pay down significant debt at the KES level. Not only have we reduced our interest rate but, in connection with the refinancing, we were able to repurchase 3.66% of KES' Series B Common Stock, thereby increasing our ownership percentage of KES to 83.87%.

Third, our consistent annual profitability has enabled us to not only utilize the NOL's at the parent but, beginning in 2011, we were able to monetize some of the NOL and add that amount to the balance sheet.

We are very proud of what our employees have accomplished since we have restarted the operations at KES. From 2005 to 2011, the Shareholder's Equity has grown by over $53 million, even with a major recession thrown in."

This press release contains forward-looking statements. Such statements include information regarding the Company's expectations, goals or intentions regarding the future, including but not limited to statements regarding our future outlook and our ability to continue our efforts to retire corporate debt. Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statements. Among the factors that could cause actual results to differ materially are changes in the Company's stock price, liquidity needs or market fluctuations. Additional factors that could cause actual results to differ are discussed in the Company's Annual Report for the fiscal year ended September 30, 2011 and in its other periodic reports issued through the Pink Sheets News Service and available at www.pinksheets.com. All forward-looking statements in this release are made as of the date hereof and the Company assumes no obligation to update any forward-looking statement.

ALJ Regional Holdings, Inc.
Jess Ravich, 310-789-5741