LS Lakeside Steel Inc.

WELLAND, ON, June 13, 2011 /CNW/ -- WELLAND, ON, June 13, 2011 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today reported its financial results for its fiscal year ended March 31, 2011 ("FY 2011"). For FY 2011 the Company's revenue was $240,304,770, which is an increase of $135,866,937 or 130% compared to revenue of $104,437,833 for the fiscal year ended March 31, 2010. For FY 2011, the Company achieved record setting performances in both revenue and tons produced. The Company's adjusted EBITDA was $8,264,707 in FY 2011, an increase of $23,425,443 from adjusted EBITDA of ($15,160,736) for the prior fiscal year. For FY 2011, the Company's net income was $3,344,501, an increase of $17,296,527 compared to a net loss of $13,952,026 for the year ended March 31, 2010. The Company had earnings per share of $0.03 in FY 2011 compared to a loss per share of $0.23 for the fiscal year ended March 31, 2010. The Company's revenue for the three months ended March 31, 2011, was $57,795,799, an improvement of $14,209,806 or 32% from the three months ended March 31, 2010, and an improvement of $3,975,552 or 7% from the three months ended December 31, 2010. The Company's adjusted EBITDA was $1,759,029 for the three months ended March 31, 2011, an increase of $3,551,786 from adjusted EBITDA of ($1,792,757) for the three months ended March 31, 2010. The Company's net income for the three months ended March 31, 2011, was $1,301,421, an increase of $5,486,668 from a net loss of $4,185,247 for the three months ended March 31, 2010, and an increase of $1,085,594 compared to the previous quarter ended December 31, 2010. Ron Bedard, President and COO, commented: "The Company is pleased with the turnaround at our Welland, Ontario operations. Despite steel price volatility and a challenging market, the Company was able to remain profitable and grow its operation. The Company's employees continue to demonstrate a strong commitment to improving the performance of the business. During the year ended March 31, 2011, the Company also completed the $6.9 million remediation of the onsite PCB storage facility in Welland, as well as extensive upgrades to the Welland end finishing facilities. Our stated goal is to structure Welland to be consistently profitable for long-term viability. The Company's construction of three new facilities in the U.S. is continuing on schedule and on budget. Once completed, the Company will have some of the most modern production facilities in North America capable of producing top quality OCTG and line pipe products." The Company also announced that, subject to receipt of required regulatory approvals, it granted stock options under its 10 per cent rolling Stock Option Plan to certain directors, officers and employees of the Company and its subsidiaries to purchase in the aggregate up to 1,700,000 common shares (the "Stock Options") in the capital of the Company. The exercise price of the Stock Options is $0.52 per share. The Stock Options expire June 12, 2021. Ten percent of the Stock Options vest immediately with the balance vesting as to fifteen percent every six months thereafter, subject to the terms and conditions of the Company's Stock Option Plan. About Lakeside Steel Inc. Lakeside Steel is a 2011 TSX Venture Exchange 50 company and the parent company of Lakeside Steel Corporation, Lakeside Steel Alabama Inc. and Lakeside Steel Texas Inc. Lakeside Steel has operating facilities located in Welland, Ontario, and Corpus Christi, Texas, and three facilities currently being constructed in Thomasville, Alabama. Lakeside Steel is a diversified steel pipe and tubing manufacturer with a focus on manufacturing and upgrading Oil Country Tubular Goods. Lakeside Steel's list of customers includes large oil and gas end users as well as distributors across North America. Lakeside Steel Alabama will be a diversified steel pipe manufacturer with end-finishing and heat treat capabilities strategically situated in the southern United States on successful completion of construction of the new facilities in Thomasville, Alabama. Construction of the Alabama facilities is currently underway. This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion, and Analysis, Annual Information Form and Filing Statement of the Company which are available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements. Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. Lakeside Steel was recognized as a TSX Venture 50® company in 2010 and 2011. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license. To view this news release in HTML formatting, please use the following URL: http://www.newswire.ca/en/releases/archive/June2011/13/c5202.html table tr valign="top" td align="left" bRon Bedard /bbr/ President and Chief Operating Officer                          br/ Lakeside Steel Inc.br/ FAX:  (905)735-9069br/ e-mail: a href="mailto:ron.bedard@lakesidesteelcorp.ca"ron.bedard@lakesidesteelcorp.ca/a /td td align="left" valign="top" bKen Hunter /bbr/ Chief Financial Officerbr/ Lakeside Steel Incbr/ FAX:  (905)735-9069br/ e-mail: a href="mailto:ken.hunter@lakesidesteelcorp.ca"ken.hunter@lakesidesteelcorp.ca/a /td /tr /table p   /p

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