- Sales of approximately
$116.0 million - Earnings from operations of approximately
$6.2 million - Net earnings of approximately
$1.2 million - 11% increase in sales volume over prior year quarter volume
- Working capital balance at quarter-end of approximately
$116.3 million
“We experienced higher hot-rolled coil (“HRC”) pricing during the third quarter which increased our physical margins, particularly during the second half of the quarter,” said
For the quarter ended
The table below provides our unaudited statements of operations for the three- and nine-month periods ended
SUMMARY OF OPERATIONS (unaudited) | |||||||||||||||
(In thousands, except for per share data) | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
$ | 115,973 | $ | 111,860 | $ | 384,019 | $ | 423,356 | ||||||||
Cost of products sold | 105,531 | 105,730 | 351,427 | 393,876 | |||||||||||
Selling, general and administrative expenses | 4,269 | 4,701 | 15,007 | 15,662 | |||||||||||
Earnings from operations | 6,173 | 1,429 | 17,585 | 13,818 | |||||||||||
Gain (loss) on economic hedges of risk | (4,126 | ) | 822 | 706 | 7,326 | ||||||||||
Interest expense | (790 | ) | (448 | ) | (2,135 | ) | (1,498 | ) | |||||||
Other income | 1 | 4 | 17 | 24 | |||||||||||
Earnings before income taxes | 1,258 | 1,807 | 16,173 | 19,670 | |||||||||||
Income tax expense | 74 | 431 | 3,786 | 4,639 | |||||||||||
Net earnings | $ | 1,184 | $ | 1,376 | $ | 12,387 | $ | 15,031 | |||||||
Net earnings per share: | |||||||||||||||
Basic | $ | 0.16 | $ | 0.19 | $ | 1.69 | $ | 2.06 | |||||||
Diluted | $ | 0.16 | $ | 0.19 | $ | 1.69 | $ | 2.06 | |||||||
The table below provides summarized unaudited balance sheets as of
SUMMARIZED BALANCE SHEETS (unaudited) | |||||
(In thousands) | |||||
ASSETS: | |||||
Current Assets | 170,897 | 143,656 | |||
Noncurrent Assets | 58,058 | 55,656 | |||
Total Assets | 228,955 | 199,312 | |||
LIABILITIES AND STOCKHOLDERS' EQUITY: | |||||
Current Liabilities | 54,601 | 45,088 | |||
Noncurrent Liabilities | 51,611 | 38,792 | |||
Total Liabilities | 106,212 | 83,880 | |||
Total Stockholders' Equity | 122,743 | 115,432 | |||
Total Liabilities and Stockholders' Equity | 228,955 | 199,312 | |||
FLAT-ROLL SEGMENT OPERATIONS (previously referred to as the “coil segment”)
Flat-roll product segment sales for the 2023 quarter totaled approximately
TUBULAR SEGMENT OPERATIONS
Tubular product segment sales for the 2023 quarter totaled approximately
HEDGING ACTIVITIES
We utilize HRC futures to manage price risk on unsold inventory and longer-term fixed price sales agreements. We typically account for our hedging activities under mark-to-market (“MTM”) accounting treatment and all hedging decisions are intended to protect the value of our inventory and produce more consistent financial results over price cycles. With MTM accounting treatment it is possible that hedging related gains or losses might be recognized in a different fiscal quarter than the corresponding improvement or contraction in our physical margins. For the third quarter, we recognized a loss on hedging activities of approximately
OUTLOOK
The Company expects to conclude fiscal year 2024 with a strong fourth quarter characterized by solid margins associated with a substantial increase in HRC price entering the fourth quarter. Sales volume for the fourth quarter of fiscal 2024 is expected to be slightly higher than the third quarter volume.
ABOUT
CAUTIONARY NOTE REGARDING FORWARD-LOOKING STATEMENTS
This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act and Section 21E of the Exchange Act, and such statements involve risk and uncertainty. Forward-looking statements include those preceded by, followed by or including the words “will,” “expect,” “intended,” “anticipated,” “believe,” “project,” “forecast,” “propose,” “plan,” “estimate,” “enable,” and similar expressions, including, for example, statements about our business strategy, our industry, our future profitability, growth in the industry sectors we serve, our expectations, beliefs, plans, strategies, objectives, prospects and assumptions, future production capacity, product quality and estimates and projections of future activity and trends in the oil and natural gas industry. These forward-looking statements may include, but are not limited to, everything under the header “Outlook” above, including sales volumes, margins, hedging results, and potential price increases, expectations as to financial results during the Company’s upcoming fiscal quarters, future changes in the Company’s financial condition or results of operations, future production capacity, product quality and proposed expansion plans. Forward-looking statements may be made by management orally or in writing including, but not limited to, this news release.
Forward-looking statements are not guarantees of future performance. These statements are based on management’s expectations that involve a number of business risks and uncertainties, any of which could cause actual results to differ materially from those expressed in or implied by the forward-looking statements. Although forward-looking statements reflect our current beliefs, reliance should not be placed on forward-looking statements because they involve known and unknown risks, uncertainties and other factors, which may cause our actual results, performance or achievements to differ materially from anticipated future results, performance or achievements expressed or implied by such forward-looking statements.
Actual results and trends in the future may differ materially depending on a variety of factors including, but not limited to, changes in the demand for and prices of the Company’s products, changes in government policy regarding steel, changes in the demand for steel and steel products in general and the Company’s success in executing its internal operating plans, changes in and availability of raw materials, our ability to satisfy our take or pay obligations under certain supply agreements, unplanned shutdowns of our production facilities due to equipment failures or other issues, increased competition from alternative materials and risks concerning innovation, new technologies, products and increasing customer requirements. Accordingly, undue reliance should not be placed on our forward-looking statements. Such risks and uncertainty are also addressed in our Management’s Discussion and Analysis of Financial Condition and Results of Operations and other sections of the Company’s filings with the
For further information, please refer to the Company's Form 10-Q as filed with the
Source:
2024 GlobeNewswire, Inc., source