RESC Roanoke Electric Steel (MM)

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/

Copyright