EX-99.1 2 exh99-1_13554.txt PRESS RELEASE 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 FIRST QUARTER RESULTS TULSA, OKLAHOMA, May 10, 2005 - North American Galvanizing & Coatings, Inc. (AMEX: NGA) announced today that sales for the first quarter ended March 31, 2005 were $9,280,000, up 8.4% from sales of $8,558,000 for the first quarter a year ago. The Company reported first-quarter 2005 net earnings of $97,000, or $.01 per share fully diluted, compared to net earnings of $210,000, or $.03 per share fully diluted, for the first quarter of 2004. Commenting on the results for the first quarter, Ronald J. Evans, president and chief executive officer, said, "Higher sales for this first quarter reflect a one-month contribution from the Canton, Ohio galvanizing facility that was purchased February 28, 2005. Additionally, in March we began to experience the anticipated increase in business projected by our customers, resulting in a 5.2% same plant volume improvement over the same month a year ago. Earnings for the first quarter of 2005 were lower than the same period a year ago, reflecting sharply lower volume in January and February, higher raw material and energy costs, and increased interest expense associated with the Canton facility purchase." The Company recently released its 2004 Annual Report and announced its Annual Meeting of Stockholders would be held on May 26, 2005. 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 Canton, Ohio; 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 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 April 14, 2005. - MORE - NORTH AMERICAN GALVANIZING & COATINGS, INC. AND SUBSIDIARY CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (UNAUDITED) THREE MONTHS ENDED MARCH 31 ------------------------------- (DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 2005 2004 ------------------------------------------------------------------------------- SALES $ 9,280 $ 8,558 Cost of sales 6,842 6,005 Selling, general & administrative expenses 1,448 1,395 Depreciation expense 619 684 ------------ ------------ TOTAL COSTS AND EXPENSES 8,909 8,084 ------------ ------------ OPERATING INCOME (LOSS) 371 474 Interest expense, net 225 161 Other income -- (25) ------------ ------------ Income (Loss) before income taxes 146 338 Income tax expense (benefit) 49 128 ------------ ------------ NET INCOME (LOSS) $ 97 $ 210 ------------ ------------ OTHER COMPREHENSIVE INCOME (LOSS) Unrealized holding gain on investment -- 19 Less: reclassification adjustment for realized gain included in net income -- (25) ------------ ------------ OTHER COMPREHENSIVE INCOME (LOSS) $ -- $ (6) ------------ ------------ COMPREHENSIVE INCOME (LOSS) $ 97 $ 204 ------------ ------------ NET INCOME (LOSS) PER COMMON SHARE Continuing Operations: Basic $ 0.01 $ 0.03 Diluted $ 0.01 $ 0.03 Net Income (Loss): Basic $ 0.01 $ 0.03 Diluted $ 0.01 $ 0.03