EX-99.1 2 exh99-1_15334.htm PRESS RELEASE DATED JULY 30, 2007 WWW.EXFILE.COM -- NORTH AMERICAN GALVANIZING -- FORM 8-K -- EXHIBIT 99.1 -- 15334
EXHIBIT 99.1

 
NEWS RELEASE
 NORTH AMERICAN GALVANIZING & COATINGS, INC.
5314 South Yale Avenue, Suite 1000   Tulsa, OK 74135
(918) 494-0964    Fax: (918) 494-3999

FOR IMMEDIATE RELEASE  Contact: Beth B. Hood Phone: (918) 524-1512

North American Galvanizing & Coatings
Reports Record Second Quarter 2007 Earnings

   Tulsa, Oklahoma, July 30, 2007– North American Galvanizing & Coatings, Inc. (AMEX: NGA) announced today record earnings and sales for the first six months and the second quarter of 2007.  All per share data are reported on a fully-diluted basis and have been adjusted to reflect the effect of the June 8, 2007 three-for-two stock split effected by a stock dividend.

The Company’s net earnings for the first six months of 2007 were $4.5 million ($.36 per share), compared with $2.4 million ($.20 per share) in the first six months of 2006 which represents an 80% increase in earnings per share. Consolidated net earnings for the 2007 second quarter were $2.2 million ($.17 per share), compared with $1.4 million ($.12 per share) in the second quarter of 2006.

Commenting on the results of the second quarter 2007, Ronald J. Evans, president and chief executive officer, said “The strength of the U.S. economy continues to support hot-dip galvanizing demand at above historical levels.  Strong capital goods spending, including electrical distribution and highway projects which specify galvanized product, has resulted in improved industry utilization rates.”

The Company recently announced that its Board of Directors approved the decision to switch the listing of its common stock from the American Stock Exchange to the NASDAQ Stock Market LLC®.  The recent SEC decision to allow portability of stock symbols will allow the company to continue to trade under the symbol NGA.  Trading on the NASDAQ will become effective August 2, 2007.

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.

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Cautionary Statement. This press release may contain "forward-looking statements" as defined under U.S. securities laws, including, but not limited to, statements concerning the Company’s beliefs and expectations of future performance. 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 February 14, 2007.  The Company cannot be assured that continuing zinc price increases will continue to be absorbed by the market.  These forward-looking statements are made as of the date of this press release.  The Company assumes no obligation to update or revise these statements or to provide reasons why actual results may differ.

                   
                         
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
                    
THREE AND SIX MONTHS ENDED JUNE 30, 2007 AND 2006
                        
(In thousands, except per share amounts)
  
 
    
 
    
 
    
 
  
                         
   
Three Months Ended
    
Six Months Ended
  
   
June 30
    
June 30
  
   
2007
    
2006
    
2007
    
2006
  
                         
SALES
   $
23,121
     $
18,227
     $
46,620
     $
33,638
  
                                 
COSTS AND EXPENSES:
                                
  Cost of sales
    
16,152
      
12,706
      
32,364
      
23,702
  
  Selling, general and administrative expenses
    
2,441
      
2,246
      
4,805
      
4,087
  
  Depreciation and amortization
    
898
      
645
      
1,736
      
1,292
  
           Total costs and expenses
    
19,491
      
15,597
      
38,905
      
29,081
  
                                 
OPERATING INCOME
    
3,630
      
2,630
      
7,715
      
4,557
  
                                 
Interest expense
    
65
      
238
      
252
      
479
  
Interest income
     (36 )    
---
       (54 )    
---
  
                                 
INCOME BEFORE INCOME TAXES
    
3,601
      
2,392
      
7,517
      
4,078
  
                                 
INCOME TAX EXPENSE
    
1,395
      
949
      
2,965
      
1,653
  
                                 
NET INCOME
   $
2,206
     $
1,443
     $
4,552
     $
2,425
  
                                 
NET INCOME PER COMMON SHARE:
                                
  Net income
                                
    Basic
   $
0.18
     $
0.13
     $
0.37
     $
0.23
  
    Diluted
   $
0.17
     $
0.12
     $
0.36
     $
0.20
  
                                 
Note:  All per share data have been adjusted to reflect the effect of the June 8, 2007 three-for-two stock split effected by a stock dividend for all periods presented.