EX-99.1 2 exhibit99-1_13317.txt PRESS RELEASE DATED FEBRUARY 25, 2005 EXHIBIT 99.1 ------------ NEWS RELEASE NORTH AMERICAN GALVANIZING & COATINGS, INC. 2250 EAST 73RD STREET - SUITE 300 - TULSA, OK 74136 (918)494-0964 - FAX: (918)494-3999 FOR IMMEDIATE RELEASE: Contact: Paul R. Chastain Phone: (918)524-1506 NORTH AMERICAN GALVANIZING & COATINGS ------------------------------------- ANNOUNCES 2004 FOURTH QUARTER AND ANNUAL RESULTS ------------------------------------------------ TULSA, OKLAHOMA, February 25, 2005 - North American Galvanizing & Coatings, Inc. (AMEX: NGA) announced today that sales increased 7.9% to $35,822,000 for the year ended December 31, 2004. Net earnings for 2004 were $403,000, or $.05 per share, compared to a net loss of $1,013,000, or $.15 per share, for 2003. "North American Galvanizing benefited from a modest upturn in activity from key customers serving power distribution, communications, highway and recreational markets," said the Company's President and CEO, Ronald J. Evans. "Volume for 2004 did not reflect the improvement in the economy that we expected. Based on this limited improvement in demand for galvanizing, our earnings from continuing operations rose to $403,000 for 2004 compared to a loss of $182,000 for 2003." In 2003, the Company took a charge to discontinued operations of $831,000 to write-off an abandoned plant. For the fourth quarter of 2004, sales increased 4.1% to $8,583,000 from $8,246,000 for the comparable quarter of 2003. A seasonal-related slowing of business activity in the final quarter of 2004, combined with increased legal expenses, resulted in a fourth quarter 2004 net loss of $142,000, or $.03 per share, compared to a net loss of $59,000, or $.01 per share for 2003. New Development. On Thursday, February 24, 2005 the Company announced a tentative agreement had been reached to acquire the hot-dip galvanizing assets of Gregory Galvanizing located in Canton, Ohio. Commenting on the transaction which is expected to be finalized before the end of this month, Mr. Evans said, "The Canton, Ohio multi-kettle facility will expand North American Galvanizing's service area into the northeast region of the United States. With annual sales of approximately $7,000,000, the purchase is expected to add significantly to North American Galvanizing's 2004 reported revenues of approximately $36,000,000." 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 coating business through a network of plants located in Denver, Hurst (Dallas/Forth 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 is: www.nagalv.com. CAUTIONARY STATEMENT. This press release contains statements, estimates, or projections that constitute "forward-looking statements" as defined under U.S. securities laws, including, but not limited to, statements made concerning the acquisition of assets from Gregory Galvanizing and the financial impacts thereof. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from such forward-looking statements and management's present expectations or projections. These risks and uncertainties include, but are not limited to, the ability of the Company to complete the acquisition and the impact of the acquisition on the Company's future sales, as well as the risk factors described in the Company's SEC filings including the Company's Annual Report on Form 10-K filed with the Securities and Exchange Commission on March 30, 2004. NORTH AMERICAN GALVANIZING & COATINGS, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME UNAUDITED
THREE MONTHS ENDED YEAR ENDED DECEMBER 31 DECEMBER 31 ---------------------------- ---------------------------- (Dollars in Thousands, Except per Share Amounts) 2004 2003 2004 2003 ------------------------------------------------ ------------ ------------ ------------ ------------ SALES $ 8,583 $ 8,246 $ 35,822 $ 33,200 Cost of sales 6,449 5,874 25,814 23,833 Selling, general & administrative expenses 1,530 1,529 5,917 5,992 Depreciation expense 633 692 2,701 2,880 ------------ ------------ ------------ ------------ TOTAL COSTS AND EXPENSES 8,612 8,095 34,432 32,705 ------------ ------------ ------------ ------------ OPERATING INCOME (LOSS) (29) 151 1,390 495 Other income -- -- (25) -- Interest expense, net 199 156 764 654 ------------ ------------ ------------ ------------ Income (loss) from Continuing Operations before income taxes (228) (5) 651 (159) Income tax expense (benefit) (86) 54 248 23 ------------ ------------ ------------ ------------ INCOME (LOSS) FROM CONTINUING OPERATIONS (142) (59) 403 (182) Discontinued Operations Loss -- -- -- (831) ------------ ------------ ------------ ------------ NET INCOME (LOSS) $ (142) ($ 59) $ 403 $ (1,013) ============ ============ ============ ============ OTHER COMPREHENSIVE INCOME (LOSS) Unrealized holding gain on investment gain -- -- 12 6 Reclassification adjustment for realized gain included in net income -- -- (16) -- ------------ ------------ ------------ ------------ Other Comprehensive Income (Loss) -- -- (4) 6 ------------ ------------ ------------ ------------ COMPREHENSIVE INCOME (LOSS) $ (142) $ (59) $ 399 $ (1,007) ============ ============ ============ ============ NET INCOME (LOSS) PER COMMON SHARE Continuing Operations Basic and Diluted $ (.03) $ (.01) $ 0.05 $ (.03) Discontinued Operations Basic and Diluted -- -- -- $ (.12) Net Income (Loss) ------------ ------------ ------------ ------------ Basic and Diluted $ (.03) $ (.01) $ 0.05 $ (.15) ============ ============ ============ ============