EX-99.1 3 exhibit99-1_12322.txt PRESS RELEASE DATED NOVEMBER 5, 2003 EXHIBIT 99.1 ------------ NORTH AMERICAN GALVANIZING & COATINGS ANNOUNCES THIRD QUARTER RESULTS TULSA, OKLAHOMA, November 5, 2003 - North American Galvanizing & Coatings (AMEX-NGA) announced today sales of $8,516,000 for the third quarter of 2003 compared to sales of $9,915,000 for the third quarter of 2002. For the third quarter of 2003, the Company reported net income of $90,000, or $.01 per share, compared to net income of $338,000, or $.05 per share for the third quarter of 2002. The Company amended its bank credit agreement, as a part of its routine treasury management, during the third quarter of 2003. Debt maturities were extended to January 1, 2005. Additionally, the Company received an interest refund of $311,000 associated with its tax-deferred debt for the first nine months of 2003. The variable interest rate for a sinking fund associated with the tax-deferred debt was adjusted to be in line with current market rates. Ronald J. Evans, president and chief executive officer, said, "The gradual improvement in order volume experienced in the second quarter held into the Company's third quarter ended September 30, 2003. As a direct result of cost-cutting measures implemented earlier in the year, the Company maintained profitability under adverse economic conditions. A continuation of downward pressure on selling prices due to the weak market and competitive conditions negatively impacted our galvanizing and coatings operations for the first nine months of 2003." Mr. Evans added, "We are still experiencing significantly lower market demand for galvanizing compared to last year, a reflection of the depressed conditions in the capital goods sector." North American Galvanizing is a leading provider of hot dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coatings business through a network of plants located in Denver, Hurst (Dallas/Fort Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area. Hot dip galvanizing provides metals corrosion protection for many product applications used in commercial, construction and industrial markets. Our home page on the internet is: www.nagalv.com. Cautionary Statement. Statements in this news release that are not strictly historical may be "forward looking" statements, which involve risks and uncertainties. These include economic and regulatory conditions, issues with suppliers, market demand, pricing and competitive factors, among others, which are set forth in the Company's Securities and Exchange filings.
NORTH AMERICAN GALVANIZING & COATINGS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS UNAUDITED THREE MONTHS ENDED NINE MONTHS ENDED SEPTEMBER 30 SEPTEMBER 30 ----------------------- ----------------------- (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002 ----------------------------------------------- ---------- ---------- ---------- ---------- SALES $ 8,516 $ 9,915 $ 24,954 $ 29,235 Cost of sales 6,122 6,805 17,959 20,021 Selling, general & administrative expenses 1,597 1,456 4,463 4,329 Depreciation expense 717 765 2,188 2,264 ---------- ---------- ---------- ---------- TOTAL COSTS AND EXPENSES 8,436 9,026 24,610 26,614 ---------- ---------- ---------- ---------- OPERATING INCOME 80 889 344 2,621 Interest (income) expense, net (109) 270 498 836 Income (loss) from Continuing Operations before income taxes 189 619 (154) 1,785 Income tax expense (benefit) 99 227 (31) 678 ---------- ---------- ---------- ---------- INCOME (LOSS) FROM CONTINUING OPERATIONS 90 392 (123) 1,107 Discontinued Operations: Loss on discontinued operations, net --- (54) (77) (153) Loss on write-off of assets of discontinued operations, net --- --- (754) --- ---------- ---------- ---------- ---------- NET INCOME (LOSS) $ 90 $ 338 $ (954) $ 954 ========== ========== ========== ========== NET INCOME (LOSS) PER COMMON SHARE Continuing Operations: Basic $ 0.01 $ 0.06 $ (0.02) $ 0.16 Diluted $ 0.01 $ 0.05 $ (0.02) $ 0.15 Discontinued Operations: Basic $ --- $ (0.01) $ (0.12) $ (0.02) Diluted $ --- $ (0.01) $ (0.12) $ (0.02) Net Income (Loss): Basic $ 0.01 $ 0.05 $ (0.14) $ 0.14 Diluted $ 0.01 $ 0.05 $ (0.14) $ 0.13
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