Roanoke Electric Steel Corporation Reports Quarterly Profit and
Improved Fiscal 2003 Results ROANOKE, Va., Dec. 4
/PRNewswire-FirstCall/ -- Roanoke Electric Steel Corporation
reported a profit of $700,735 for the fourth quarter ended October
31, 2003, compared to a loss of $315,374 for the same period last
year. The results for the quarter represented the first quarterly
profit since July 2001, following eight consecutive quarterly
losses. Basic earnings per share were $.06, compared to basic loss
per share of $.03 last year. Sales for the quarter were
$91,600,033, a 27.3% increase from sales of $71,935,383 reported
for the 2002 fourth quarter. For the year ended October 31, 2003,
the Company reported a loss of $3,224,953, compared to a loss of
$6,008,897 for the 2002 fiscal year, or an improvement of 46.3%.
Basic loss per share for the year was $.29, compared to basic loss
per share of $.55 last year. The 2003 results included a $228,410
charge for the cumulative effect of a change in accounting
principle, which amounted to $.02 per share. Sales for fiscal 2003
were $312,090,956, up 18.3% from $263,773,709 reported last year.
Donald G. Smith, Chairman and Chief Executive Officer, stated:
"Roanoke Electric Steel achieved significantly improved results in
a very challenging year, realizing quarterly improvements
throughout the 2003 fiscal year. A general upturn in our overall
markets led to an increase in the number of tons both produced and
shipped during the year, resulting in a sales increase of 18.3% in
2003 over 2002. Selling prices for our products increased initially
due to rising scrap costs, which prompted several industry-wide
price increases. Recently, demand has improved, further augmenting
the rise of selling prices. In fact, selling prices during the year
for merchant bar products increased 18.8%, for specialty steel
products increased 8.8% and for billets increased 11.3%. In
addition, mill operating rates, productivity and efficiencies
improved throughout the year. "As we begin fiscal 2004, business
conditions appear to be improving in certain markets, as many of
our customers are busier than they have been in the recent past.
Prices continue to increase, with two additional increases
effective in November and December 2003 for many of the products we
produce. We are hopeful that the positive momentum established in
2003 continues in 2004." Consolidated Statements of Earnings (Loss)
Three Months Ended Year Ended October 31, October 31, 2003 2002
2003 2002 SALES $91,600,033 $71,935,383 $312,090,956 $263,773,709
COST OF SALES 81,115,675 65,984,871 288,000,605 246,172,654 GROSS
EARNINGS 10,484,358 5,950,512 24,090,351 17,601,055 OTHER OPERATING
EXPENSES (INCOME) Administrative 6,967,014 5,643,267 23,285,533
22,543,027 Interest, net 1,249,174 1,323,420 5,001,906 5,497,761
Profit sharing 1,078,691 581,781 1,309,091 658,699 Antitrust
litigation settlement --- --- (520,960) --- Officer life insurance
proceeds --- (630,000) --- (630,000) Total 9,294,879 6,918,468
29,075,570 28,069,487 EARNINGS (LOSS) BEFORE INCOME TAXES AND
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 1,189,479
(967,956) (4,985,219) (10,468,432) INCOME TAX EXPENSE (BENEFIT)
488,744 (652,582) (1,988,676) (4,459,535) EARNINGS (LOSS) BEFORE
CUMULATIVE EFFECT OF CHANGE IN ACCOUNTING PRINCIPLE 700,735
(315,374) (2,996,543) (6,008,897) CUMULATIVE EFFECT OF CHANGE IN
ACCOUNTING PRINCIPLE --- --- (228,410) --- NET EARNINGS (LOSS)
$700,735 $(315,374) $(3,224,953) $(6,008,897) Net earnings (loss)
per share (basic and diluted) of common stock: Earnings (loss)
before cumulative effect of change in accounting principle $0.06
$(0.03) $(0.27) $(0.55) Cumulative effect of change in accounting
principle --- --- (0.02) --- Net earnings (loss) per share of
common stock $0.06 $(0.03) $(0.29) $(0.55) Cash dividends per share
of common stock $0.05 $0.05 $0.20 $0.35 Weighted average number of
common shares outstanding: Basic 10,932,813 10,942,813 10,938,999
10,934,380 Diluted 10,946,104 10,958,412 10,945,346 10,967,904 This
release contains various forward-looking statements which represent
the Company's expectations or beliefs concerning future events. In
accordance with the safe harbor provisions of the securities laws
regarding such forward- looking statements, the Company notes that
a variety of factors could cause actual results and experience to
differ materially from those expressed in the forward-looking
statements. The risks and uncertainties that may affect the
operations, performance, development and results of the Company's
business include economic and industry conditions, timing of the
recovery within our steel markets, availability and prices of
utilities, supplies and raw materials, prices of steel products,
foreign and domestic competition, foreign trade polices affecting
imports and exports, governmental regulations, interest rates,
inflation, labor relations, environmental concerns and compliance
issues and others. Roanoke Electric Steel Corporation has steel
manufacturing facilities in Roanoke, Virginia and Huntington, West
Virginia, producing angles, rounds, flats, channels, beams, special
sections and billets, which are sold to steel service centers,
fabricators, original equipment manufacturers and other steel
producers. Four subsidiaries are involved in various steel-related
activities, consisting of scrap processing, bar joist fabrication
and reinforcing bar fabrication. DATASOURCE: Roanoke Electric Steel
Corporation CONTACT: T. Joe Crawford of Roanoke Electric Steel
Corporation, +1-540-342-1831 Web site: http://www.roanokesteel.com/
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