Metals USA reports results for Q2 2010

Wednesday, 21 July 2010 01:52:41 (GMT+3)   |  
       

US Florida-based Metals USA Holdings Corp. Tuesday reported its results for the three months ended June 30, 2010. Sales revenues for the second quarter of 2010 were $335.0 million compared to sales revenues of $287.9 million for the first quarter of 2010 and $267.8 million for the second quarter of 2009.  Metal shipments for the second quarter of 2010 were 270,000 tons, sequentially improved from first quarter 2010 shipments of 249,000 tons and also better than 228,000 tons for second quarter 2009. Operating income for the second quarter of 2010 was $17.4 million, compared to $12.7 million for the first quarter of 2010 and an operating loss of $19.1 million recorded for the three months ended June 30, 2009.  

Net income for the three months ended June 30, 2010 was $2.5 million. The Company incurred a non-recurring loss on the extinguishment of debt related to the redemption of the Company's Senior Floating Toggle Notes due 2012 of $3.5 million in the second quarter of 2010 as well as a non-recurring charge of $3.3 million related to termination of the Company's advisory agreement with Apollo upon the completion of the Company's initial public offering ("IPO").  The impact of these non-recurring charges was to decrease second quarter 2010 net income by $4.2 million.

Lourenco Goncalves, the Company's Chairman, Presient and C.E.O., stated: "The second quarter was a decisive one for Metals USA.  We executed our Initial Public Offering, significantly improved our balance sheet by paying off the Toggle Notes, and purchased a great addition to our Company with J. Rubin."  

On April 9, 2010 the Company completed its IPO of 11,426,315 shares of common stock at a price of $21.00 per share.  The Company's stock began trading that day on the New York Stock Exchange under the ticker symbol MUSA.  On April 14, 2010 the Company announced the redemption of all of the Toggle Notes with the IPO proceeds. The redemption was completed on May 14, 2010.

On June 28, 2010 the Company acquired J. Rubin & Co. ("J. Rubin").  J. Rubin operates four locations servicing the Illinois, Wisconsin and Minnesota markets.  J. Rubin's product range consists of carbon steel bars, carbon plate and laser-cut flat-rolled products.

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