Lakeside Announces Fiscal 2012 First Quarter Results
23 Septiembre 2011 - 6:20PM
PR Newswire (Canada)
WELLAND, ON, Sept. 23, 2011 /CNW/ - Lakeside Steel Inc. ("Lakeside"
or the "Company") today reported its financial results for its
fiscal 2012 first quarter ended June 30, 2011 ("Q1
2012"). Consistent with other TSX-V issuers, the
Company had an additional 30 days within which to file its first
interim financial statements after adoption of IFRS. For Q1
2012 the Company's revenue was $53,027,946 which represents a
decrease of $9,174,919 or 15% from revenue of $62,202,865 for the
fiscal 2011 first quarter ended June 30, 2010 ("Q1 2011"). The
Company's adjusted EBITDA was ($16,068) in Q1 2012, a decrease of
$584,862 from adjusted EBITDA of $568,794 in Q1 2011. For Q1 2012,
the Company's net loss was $1,093,059, an increase of $282,397 from
a net loss of $810,662 for Q1 2011. The Company generated losses of
$0.01 per share in both Q1 2012 and Q1 2011. Profitability margins
were negatively impacted by rapid increases in steel prices that
occurred during this purchasing cycle, resulting in higher input
costs. During Q1 2012, oil country tubular goods ("OCTG")
customer demand for plain end pipe decreased due to capacity
constraints among thermal and end-finishing processors. Given these
constraints, customer demand for finished OCTG products increased.
The quarter was also negatively impacted by an extended cyclical
slow-down that the Canadian OCTG market typically experiences each
spring. Ron Bedard, President and Chief Operating Officer,
commented: "The first quarter of this fiscal year has been both
challenging and disappointing for the Company. The higher cost of
steel, coupled with flat OCTG prices, resulted in margin erosion.
The shift in customer demand towards thermal treated products
demonstrates the need for the Company's thermal treatment
facilities. Furthermore, the continued presence of low-cost
overseas imports of plain end product led to a significant
constraint in thermal treatment and end-finishing capacity in the
market. The Company's vertical integration strategy is expected to
alleviate these constraints for Lakeside. The Company expects that
its near-term financial results will continue to be negatively
impacted until the Company reduces its inventory and realizes its
vertical integration strategy. Upon completion of the new
manufacturing mill and thermal and end-finishing facilities in
Alabama, the Company will be in a stronger position to return to
profitability". About Lakeside Steel Inc. Lakeside 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 has operating facilities located in Welland,
Ontario, and Corpus Christi, Texas, and three facilities currently
being constructed in Thomasville, Alabama. Lakeside is a
diversified steel pipe and tubing manufacturer with a focus on
manufacturing and upgrading Oil Country Tubular Goods. Lakeside'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 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. Lakeside Steel Inc. CONTACT: Ron
Bedard Ken Hunter President and Chief Operating Officer Chief
Financial OfficerLakeside Steel Inc. Lakeside Steel IncFAX:
(905)735-9069 FAX: (905)735-9069e-mail:
ron.bedard@lakesidesteelcorp.ca
e-mail:ken.hunter@lakesidesteelcorp.ca
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