-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, U+8Y4VQEmD5mLOEadB2O2enavtj2zSQlTOor32spCLRi8zDu52F4xAtO2RZGnP8N m9D5elaBETD6HjCTvrys5A== 0000830260-97-000015.txt : 19970813 0000830260-97-000015.hdr.sgml : 19970813 ACCESSION NUMBER: 0000830260-97-000015 CONFORMED SUBMISSION TYPE: 10-Q PUBLIC DOCUMENT COUNT: 3 CONFORMED PERIOD OF REPORT: 19970630 FILED AS OF DATE: 19970812 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: OREGON STEEL MILLS INC CENTRAL INDEX KEY: 0000830260 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 940506370 STATE OF INCORPORATION: DE FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 10-Q SEC ACT: 1934 Act SEC FILE NUMBER: 001-09887 FILM NUMBER: 97656428 BUSINESS ADDRESS: STREET 1: 1000 BROADWAY BLDG STREET 2: 1000 S W BROADWAY, STE 2200 CITY: PORTLAND STATE: OR ZIP: 97205 BUSINESS PHONE: 5032239228 10-Q 1 UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON DC 20549 FORM 10-Q /X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 1997 ----------------------------------------------- OR / / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to ---------------------------- --------------- Commission File Number 1-9887 ------------------ OREGON STEEL MILLS, INC. (Exact name of registrant as specified in its charter) Delaware 94-0506370 - ------------------------------------------------------------------------------ (State or other jurisdiction of (IRS Employer incorporation or organization) Identification No.) 1000 Broadway Building, Suite 2200, Portland, Oregon 97205 - ------------------------------------------------------------------------------ (Address of principal executive offices) (Zip Code) (503)223-9228 - ------------------------------------------------------------------------------ (Registrant's telephone number, including area code) - ------------------------------------------------------------------------------ (Former name, former address and former fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes X No ----- ----- APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer's classes of common stock, as of the latest practicable date. Common Stock, $.01 Par Value 25,693,471 ---------------------------- ---------------------------- Class Number of Shares Outstanding (as of July 31, 1997) OREGON STEEL MILLS, INC. INDEX Page ---- PART I. FINANCIAL INFORMATION Item 1. Financial Statements Consolidated Balance Sheets June 30, 1997 (unaudited) and December 31, 1996..................................2 Consolidated Statements of Income (unaudited) Three months and six months ended June 30, 1997 and 1996 ..............................................3 Consolidated Statements of Cash Flows (unaudited) Six months ended June 30, 1997 and 1996 ..............................................4 Notes to Consolidated Financial Statements (unaudited).............................5 - 6 Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations.............7 - 10 PART II. OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K.........................11 SIGNATURES..................................................................11 1 OREGON STEEL MILLS, INC. CONSOLIDATED BALANCE SHEETS (In thousands)
June 30, 1997 December 31, (Unaudited) 1996 ----------- ------------ ASSETS Current assets: Cash and cash equivalents $ 9,191 $ 739 Trade accounts receivable, net 77,692 91,480 Inventories 130,022 120,636 Deferred tax asset 17,084 17,084 Other 7,325 5,786 --------- --------- Total current assets 241,314 235,725 --------- --------- Property, plant and equipment: Land and improvements 29,785 29,577 Buildings 47,105 37,617 Machinery and equipment 419,582 426,912 Construction in progress 296,888 255,558 --------- --------- 793,360 749,664 Accumulated depreciation (157,976) (145,096) --------- --------- 635,384 604,568 --------- --------- Excess of cost over net assets acquired 37,132 37,398 Other assets 33,465 35,664 --------- --------- $ 947,295 $ 913,355 ========= ========= LIABILITIES Current liabilities: Current portion of long-term debt $ 6,964 $ 6,574 Accounts payable 87,190 75,428 Accrued expenses 38,892 32,727 --------- --------- Total current liabilities 133,046 114,729 Long-term debt 337,013 330,993 Deferred employee benefits 18,906 18,262 Environmental liability 34,801 35,103 Deferred income taxes 26,287 24,365 --------- --------- 550,053 523,452 --------- --------- Minority interests 36,385 36,862 --------- --------- Commitments and contingencies (Notes 4 and 5) STOCKHOLDERS' EQUITY Common stock 257 257 Additional paid-in capital 226,085 226,085 Retained earnings 138,571 130,417 Cumulative foreign currency translation adjustment (4,056) (3,718) --------- --------- 360,857 353,041 --------- --------- $ 947,295 $ 913,355 ========= ========= The accompanying notes are an integral part of the consolidated financial statements. 2
OREGON STEEL MILLS, INC. CONSOLIDATED STATEMENTS OF INCOME (In thousands, except tonnage and per share amounts) (Unaudited)
Three Months Ended Six Months Ended June 30, June 30, ---------------------- --------------------- 1997 1996 1997 1996 ---------- --------- --------- ---------- Sales $ 204,419 $ 174,058 $ 411,083 $ 379,547 Costs and expenses: Cost of sales 173,886 151,291 351,079 328,196 Selling, general and administrative expenses 12,356 11,091 24,851 22,505 Profit participation 1,601 1,730 2,808 3,599 --------- --------- --------- --------- Operating income 16,576 9,946 32,345 25,247 Other income (expense): Interest and dividend income 115 121 194 232 Interest expense (2,504) (2,799) (5,307) (6,671) Loss on termination of interest rate swap agreements -- (1,233) -- (1,233) Minority interests (1,235) (110) (3,007) (899) Other, net 351 648 354 562 --------- --------- --------- --------- Income before income taxes 13,303 6,573 24,579 17,238 Income tax expense (5,077) (2,450) (9,231) (6,597) --------- --------- --------- --------- Net income $ 8,226 $ 4,123 $ 15,348 $ 10,641 ========= ========= ========= ========= Primary and fully diluted net income per common and common equivalent share $.31 $.20 $.58 $.52 Dividends declared per common share $.14 $.14 $.28 $.28 Weighted average common shares and common share equivalents outstanding 26,292 20,753 26,292 20,387 Tonnage sold 402,400 342,100 801,700 749,900 The accompanying notes are an integral part of the consolidated financial statements. 3
OREGON STEEL MILLS, INC. CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited)
Six Months Ended June 30, -------------------------- 1997 1996 ------------- ---------- Cash flows from operating activities: Net income $ 15,348 $ 10,641 Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 14,396 14,294 Deferred income tax provision 1,922 6,814 Minority interests' share of income 3,007 933 Other, net (261) (266) Changes in current assets and liabilities 8,261 27,089 --------- --------- NET CASH PROVIDED BY OPERATING ACTIVITIES 42,673 59,505 --------- --------- Cash flows from investing activities: Additions to property, plant and equipment (35,771) (78,733) Proceeds from sale of property, plant and equipment 5,760 606 Other, net 135 (844) --------- --------- NET CASH USED BY INVESTING ACTIVITIES (29,876) (78,971) --------- --------- Cash flows from financing activities: Net payments under Canadian bank revolving loan facility (3,592) (3,583) Proceeds from long-term bank debt 185,578 26,603 Payments on long-term debt (175,576) (283,181) Net proceeds from issuance of 11% First Mortgage Notes -- 227,149 Net proceeds from issuance of common stock -- 71,992 Dividends paid (7,194) (5,438) Minority portion of subsidiary's distribution (3,484) -- Other, net (3) (68) --------- --------- NET CASH PROVIDED BY FINANCING ACTIVITIES (4,271) 33,474 --------- --------- Effects of foreign currency exchange rate changes on cash (74) 2 --------- --------- Net increase in cash and cash equivalents 8,452 14,010 Cash and cash equivalents at beginning of period 739 644 --------- --------- Cash and cash equivalents at end of period $ 9,191 $ 14,654 ========= ========= Supplemental disclosures of cash flow information: Cash paid for: Interest $ 17,424 $ 15,610 Income taxes $ 5,028 $ 2,060 NON-CASH OPERATING, INVESTING AND FINANCING ACTIVITIES: At June 30, 1997 and 1996, the Company had financed property, plant and equipment with accounts payable of $21.0 million and $16.3 million, respectively. The accompanying notes are an integral part of the consolidated financial statements. 4
OREGON STEEL MILLS, INC. NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 1. Basis of Presentation --------------------- The consolidated financial statements include the accounts of Oregon Steel Mills, Inc. and its subsidiaries ("Company"). All significant intercompany balances and transactions have been eliminated. The unaudited financial statements include all adjustments (consisting of normal recurring accruals) which, in the opinion of management, are necessary for a fair presentation of the interim periods. Results for an interim period are not necessarily indicative of results for a full year. Reference should be made to the Company's 1996 Annual Report on Form 10-K for additional disclosures including a summary of significant accounting policies. 2. Inventories ----------- Inventories consist of: June 30, December 31, 1997 1996 --------- ------------ (In thousands) Raw materials $ 29,552 $ 24,916 Semifinished product 42,826 45,767 Finished product 29,359 25,046 Stores and operating supplies 28,285 24,907 -------- -------- Total inventory $130,022 $120,636 ======== ======== 3. Common Stock ------------ On July 31, 1997, the Board of Directors declared a quarterly cash dividend of 14 cents per share to be paid August 29, 1997, to stockholders of record as of August 15, 1997. 4. Contingencies ------------- ENVIRONMENTAL. The Company's 87 percent owned New CF&I, Inc. subsidiary owns a 95.2 percent interest in CF&I Steel, L.P. ("CF&I") which owns the Pueblo, Colorado steel mill. In connection with CF&I's acquisition of certain assets from CF&I Steel Corporation in 1993, CF&I established a reserve of $36.7 million for environmental remediation. The Colorado Department of Public Health and Environment issued a 10-year, post-closure permit with two ten-year renewals to CF&I which became effective on October 30, 1995. The permit contains a schedule for corrective actions to be completed which is substantially reflective of a straight-line rate of expenditure over 30 years. At June 30, 1997, CF&I had a reserve of $35.1 million related to this remediation, of which $32.9 million is classified as non-current in the consolidated balance sheet. CONSTRUCTION CLAIMS. There are a number of claims arising out of the Company's contract with the former Prime Contractor ("Prime Contractor") on the Steckel combination rolling mill ("Combination Mill") which is being constructed at the Company's steel mill in Portland, Oregon. The Company's position is that the Prime Contractor failed to perform. As a result, the Company terminated the contract and made arrangements with other contractors to complete the project. The Prime Contractor filed an arbitration claim against the Company and the Company has counterclaimed. While it is difficult to determine at this stage the amount claimed by the Prime Contractor, the Prime Contractor initially filed a claim in the approximate amount of $16.5 million against the Company. The Prime Contractor has claimed certain other unspecified damages. However, the Company believes that the claim amount includes amounts that were subsequently paid by the Company to certain subcontractors and suppliers of the Prime Contractor in the amount of approximately $7.7 million. As a result, management believes that the net amount claimed by the Prime Contractor in the arbitration would be approximately $8.8 million plus unspecified damages. 5 The Company has filed a counterclaim against the Prime Contractor in the arbitration. The amount of this counterclaim cannot be finalized until the Combination Mill project is complete. However, it is expected that the amount of the counterclaim will exceed the amount of the Prime Contractor's claim. On the same project, five liens have been filed by subcontractors and/or suppliers of the Prime Contractor. These liens total approximately $6 million. The Company believes these claims are included in the amount of the claim filed by the Prime Contractor. The Company denies liability on all of the claims of the Prime Contractor and its subcontractors and suppliers and, as stated above, believes it is entitled to recover from the Prime Contractor all damages incurred. To the extent that the Company owes any amounts to the Prime Contractor or any of its subcontractors or suppliers, the Company may have claims for reimbursement against certain of its other engineers, vendors or consultants on the project. Management believes that the ultimate resolution of these claims will not have a material effect on the financial position of the Company. 5. Commitments ----------- At June 30, 1997, the Company had commitments for expenditures of approximately $34.0 million for completion of the Combination Mill. 6. Proceeds from Insurance Settlement ---------------------------------- Sales for the first six months of 1997 include approximately $2.5 million of insurance proceeds as reimbursement of lost profits resulting from lost production during the third and fourth quarters of 1996 related to the failure of one of the power transformers servicing CF&I. In total, the Company received $7 million in insurance proceeds from this claim of which $4.5 million was recorded in the fourth quarter of 1996. 6 OREGON STEEL MILLS, INC. Item 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS General - ------- The following information contains forward-looking statements which are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements are subject to risks and uncertainties and actual results could differ materially from those projected. Such risks and uncertainties include, but are not limited to, competitive products and pricing, as well as fluctuations in demand; potential equipment malfunction, plant construction and start-up difficulties, repair delays and general business and economic conditions. The consolidated financial statements include the accounts of Oregon Steel Mills, Inc. and its subsidiaries ("Company"), wholly-owned Camrose Pipe Corporation ("CPC") which owns a 60 percent interest in Camrose Pipe Company ("Camrose"), 87 percent owned New CF&I, Inc. ("New CF&I") which owns a 95.2 percent interest in CF&I Steel, L.P. ("CF&I"), and certain other insignificant subsidiaries. The Company is organized into two business units known as the Oregon Steel Division and the CF&I Steel Division. The Oregon Steel Division is centered on the Company's steel plate minimill in Portland, Oregon. It includes the Company's large diameter pipe finishing facility in Napa, California and the large diameter and electric resistance welded pipe facility in Camrose, Alberta. The CF&I Steel Division consists of the steelmaking and finishing facilities of CF&I located in Pueblo, Colorado, as well as certain related operations. Results of Operations - --------------------- The following table sets forth, by division, tonnage sold, sales and average selling price per ton:
Three Months Ended Six Months Ended June 30, June 30, ------------------- ---------------------- 1997 1996 1997 1996 -------- -------- -------- -------- Total tonnage sold: Oregon Steel Division: Plate 51,200 69,400 119,900 151,200 Welded pipe 76,600 59,000 159,300 129,400 -------- -------- -------- -------- Total Oregon Steel Division 127,800 128,400 279,200 280,600 -------- -------- -------- -------- CF&I Steel Division: Rail 104,300 61,600 199,000 156,800 Rod/Bar/Wire 123,500 104,100 236,000 216,800 Seamless Pipe 34,700 34,000 67,900 74,600 Semifinished 12,100 14,000 19,600 21,100 -------- -------- -------- -------- Total CF&I Steel Division 274,600 213,700 522,500 469,300 -------- -------- -------- -------- Total 402,400 342,100 801,700 749,900 ======== ======== ======== ======== Sales (in thousands): Oregon Steel Division $ 84,870 $ 81,800 $180,314 $174,646 CF&I Steel Division 119,549 92,258 230,769 (FN1) 204,901 -------- -------- -------- -------- Total $204,419 $174,058 $411,083 $379,547 ======== ======== ======== ======== Average selling price per ton: Oregon Steel Division $664 $637 $646 $622 CF&I Steel Division $435 $432 $437 (FN2) $437 Average $508 $509 $510 (FN2) $506 (FN1) Includes insurance proceeds of approximately $2.5 million as reimbursement of lost profits resulting from lost production during the third and fourth quarters of 1996 related to the failure of one of the power transformers servicing CF&I. (FN2) Excludes insurance proceeds referred to in Note (1) above.
7 OREGON STEEL MILLS, INC. Sales increased 17.5 percent to $204.4 million in the second quarter of 1997 and increased 8.3 percent to $411.1 million for the first six months of 1997, compared to the corresponding 1996 periods. Shipments increased 17.6 percent to 402,400 tons in the second quarter of 1997 and increased 6.9 percent to 801,700 tons in the first six months of 1997, compared to the corresponding 1996 periods. The increase in sales and shipments was primarily due to increased shipments of rail and rod and bar products manufactured by the CF&I Steel Division and welded pipe products by the Oregon Steel Division, offset in part by a decline in shipments of plate products by the Oregon Steel Division. Average selling prices decreased $1 to $508 per ton for the second quarter of 1997 and increased $4 to $510 per ton for the first six months of 1997, compared to the corresponding 1996 periods. The changes in average selling price were due to several factors including increased shipments of welded pipe products which generally have the highest selling prices of any of Company's products and higher seamless pipe product prices, offset by increased rod and bar shipments which have generally the lowest selling prices of any of the Company's finished products. Of the $30.4 million sales increase in the second quarter of 1997, $30.7 million was the result of volume increases offset by $300,000 from lower average selling prices. Of the $31.5 million sales increase for the first six months of 1997, $2.8 million was the result of higher average selling prices, $26.2 million was the result of volume increases, and $2.5 million from the proceeds of an insurance settlement. The Oregon Steel Division shipped 127,800 and 279,200 tons of product at an average selling price of $664 and $646 per ton for the three month and six month periods ended June 30, 1997, respectively, compared to 128,400 and 280,600 tons of product at an average selling price of $637 and $622 per ton during the corresponding 1996 periods. The increase in average selling price was primarily due to the increase in welded pipe shipments during 1997. Welded pipe shipments from the Napa and Camrose pipe mills were 76,600 and 159,300 tons in the three month and six month periods ended June 30, 1997, respectively, compared to 59,000 and 129,400 tons in the corresponding 1996 periods. The CF&I Steel Division shipped 274,600 and 522,500 tons of product at an average selling price of $435 and $437 per ton during the three month and six month periods ended June 30, 1997, respectively, compared to 213,700 and 469,300 tons of product at an average selling price of $432 and $437 per ton during the corresponding 1996 periods. The increased shipment level was due to increased shipments of rail and rod and bar during 1997. Rail shipments were 104,300 and 199,000 tons in the three and six month periods ended June 30, 1997, respectively, compared to 61,600 and 156,800 tons in the corresponding 1996 periods. Rod and bar shipments were 112,100 and 212,300 tons for the three and six month periods ended June 30, 1997, respectively, compared to 89,200 and 186,300 tons for the corresponding 1996 periods. Selling prices increased in the three and six month periods ended June 30, 1997 due to increased rail shipments and higher seamless pipe product prices. These increases were offset by increased shipments of the lower priced rod and bar products in the first six months of 1997 and lower shipments of seamless pipe products in the second quarter of 1997. Gross profit margin for the three month and six month periods ended June 30, 1997 was 14.9 and 14.1 percent (excluding insurance proceeds), respectively, compared to 13.1 and 13.5 percent for the corresponding 1996 periods. The gross profit improvement in 1997 compared to 1996 was due to increased rail shipments, products on which the Company generally realizes a higher gross margin per ton and higher seamless pipe product prices at the CF&I Steel Division. Gross profit was also positively impacted by lower costs at CF&I due to increased steel production and improved operating efficiencies. In addition, second quarter 1996 gross profit was negatively impacted by approximately $1.6 million due to higher costs and reduced shipments as a result of the outage of the ladle refining furnace at CF&I. Selling, general and administrative expenses for the three and six month periodsended June 30, 1997 increased $1.3 million and $2.3 million, respectively, from the corresponding 1996 periods, and changed as a percentage of sales to 6.0 percent in the three and six month periods ended June 30, 1997 from 6.4 and 5.9 percent for the corresponding 1996 periods. The dollar amount increases were primarily due to increased selling and shipping expense as a result of increased tons shipped in the three and six month periods ended June 30, 1997 compared to the corresponding 1996 periods. 8 OREGON STEEL MILLS, INC. Profit participation was $1.6 million and $2.8 million for the three and six month periods ending June 30, 1997, respectively, compared to $1.7 million and $3.6 million for the corresponding 1996 periods. The decrease reflects the decreased profitability in 1997 versus 1996 at the Oregon Steel Division. Total interest costs for the three and six month periods ended June 30, 1997 were $9.4 million and $18.8 million, respectively, compared to $7.4 million and $14.9 million for the corresponding 1996 periods. The higher interest cost is primarily the result of additional debt incurred to fund the capital improvement program, combined with increased interest rates. Capitalized interest for the three and six month periods ended June 30, 1997 was $6.9 million and $13.5 million, respectively, compared to $4.6 million and $8.2 million for the corresponding 1996 periods. The Company's effective income tax rate was 38 percent for the three and six month periods ended June 30, 1997, compared to 37 and 38 percent for the corresponding 1996 periods. Liquidity and Capital Resources - ------------------------------- Cash flow from operations for the six months ended June 30, 1997 was $42.7 million compared to $59.5 million in the corresponding 1996 period. The major items affecting this $16.8 million decrease were an increase in inventories versus a decrease in 1996 ($33.2 million) and a lower increase in deferred income taxes ($4.9 million). These cash uses were partially offset by increased net income ($4.7 million), a larger decrease in accounts receivable ($9.1 million), a lower decrease in accounts payable ($5.9 million) and increased minority interest share of income ($2.1 million). Net working capital at June 30, 1997 decreased $12.7 million from December 31, 1996 due to an $18.3 million increase in current liabilities, principally accounts payable and accrued expenses, offset by a $5.6 million increase in current assets, principally cash and inventories. The Company has outstanding $235 million principal amount 11% First Mortgage Notes ("Notes") due 2003. The Notes are guaranteed by New CF&I and CF&I ("Guarantors"). The Notes and the guarantees are secured by a lien on substantially all the property, plant and equipment and certain other assets of the Company and the Guarantors. The collateral for the Notes and the guarantees do not include, among other things, inventory and accounts receivable. The indenture under which the Notes were issued contains potential restrictions on new indebtedness and various types of disbursements, including dividends, based on the Company's net income in relation to its fixed charges, as defined. The Company maintains a $125 million revolving credit facility ("Amended Credit Agreement") which expires June 11, 1999, and may be drawn upon based on the Company's accounts receivable and inventory balances. The Amended Credit Agreement is collateralized by substantially all of the Company's consolidated inventory and accounts receivable, except those of Camrose. Amounts outstanding under the Amended Credit Agreement are guaranteed by the Guarantors. The Amended Credit Agreement contains various restrictive covenants including a minimum tangible net worth, minimum interest coverage ratio, and a maximum debt to total capitalization ratio. As of June 30, 1997, $58.3 million was outstanding under the Amended Credit Agreement. Term debt of $67.5 million was incurred by CF&I as part of the purchase price of the Pueblo steel mill on March 3, 1993. This debt is uncollateralized and is payable over ten years with interest at 9.5 percent. As of June 30, 1997, the outstanding balance on the debt was $48.5 million, of which $41.5 million was classified as long-term. 9 OREGON STEEL MILLS, INC. The Company has uncollateralized and uncommitted revolving lines of credit with two banks which may be used to support issuance of letters of credit, foreign exchange contracts and interest rate hedges. At June 30, 1997, $13.0 million was restricted under outstanding letters of credit. Camrose maintains a $15 million (Canadian dollars) revolving credit facility with a bank, the proceeds of which may be used for working capital and general corporate purposes. The facility is collateralized by substantially all of the assets of Camrose and borrowings under this facility are limited to an amount equal to specified percentages of Camrose's eligible trade accounts receivable and inventories. The facility expires on December 30, 1999. As of June 30, 1997, Camrose had $2.2 million outstanding under the facility. The Company expects that anticipated needs for working capital and the capital expenditure program will be met from existing cash balances, funds generated from operations and available borrowings under its Amended Credit Facility. CAPITAL EXPENDITURES. During the first six months of 1997 the Company expended approximately $3.7 million (excluding capitalized interest) on the capital program at CF&I and $18.6 million, (excluding capitalized interest) on the Combination Mill project and recurring upgrade projects to the present facilities at the Oregon Steel Division. 10 OREGON STEEL MILLS, INC. PART II OTHER INFORMATION Item 6. Exhibits and Reports on Form 8-K -------------------------------- (a) Exhibits 11.0 Statement Regarding Computation of Per Share Earnings 27.0 Financial Data Schedule (b) Reports on Form 8-K None SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized. OREGON STEEL MILLS, INC. Date: August 8, 1997 /s/ Christopher D. Cassard --------------------------------- Christopher D. Cassard Corporate Controller (Principal Accounting Officer) 11 EX-27 2
5 1000 6-MOS DEC-31-1997 JUN-30-1997 9191 0 81072 3380 130022 241314 793360 157976 947295 133046 235000 0 0 257 360600 947295 411083 411083 351079 351079 0 0 5307 24579 9231 15348 0 0 0 15348 .58 .58
EX-11 3 OREGON STEEL MILLS, INC. EXHIBIT 11 STATEMENT REGARDING COMPUTATION OF PER SHARE EARNINGS (In thousands, except per share data amounts)
Three Months Ended Six Months Ended June 30, June 30, ------------------------ ---------------------- 1997 1996 1997 1996 --------- --------- ------- -------- Weighted average number of common shares outstanding 25,694 20,155 25,694 19,789 Common stock equivalents arising from 598 shares of stock to be issued March 2003 598 598 598 598 ------- ------- ------- ------- 26,292 20,753 26,292 20,387 ======= ======= ======= ======= Net income $ 8,226 $ 4,123 $15,348 $10,641 ======= ======= ======= ======= Primary and fully diluted net income per common and common equivalent share $.31 $.20 $.58 $.52 ==== ==== ==== ====
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