-----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, ALBce1aIOAZLgTJjyOjU2Fm5G+sEGQfOFF4YVAeEnmcyc7IDkTb9yIX+utxDR7Qh LNjvQzzbWpRjlqEftrF4Xg== 0000905722-97-000012.txt : 19971119 0000905722-97-000012.hdr.sgml : 19971119 ACCESSION NUMBER: 0000905722-97-000012 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19971031 ITEM INFORMATION: FILED AS OF DATE: 19971118 SROS: NYSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUNTCO INC CENTRAL INDEX KEY: 0000905722 STANDARD INDUSTRIAL CLASSIFICATION: STEEL WORKS, BLAST FURNACES ROLLING MILLS (COKE OVENS) [3312] IRS NUMBER: 431643751 STATE OF INCORPORATION: MO FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: SEC FILE NUMBER: 001-13600 FILM NUMBER: 97723228 BUSINESS ADDRESS: STREET 1: 14323 SOUTH OUTER FORTY STREET 2: STE 600 N CITY: TOWN & COUNTRY STATE: MO ZIP: 63017 BUSINESS PHONE: 3148780155 MAIL ADDRESS: STREET 1: 14323 S OUTER FORTY STREET 2: STE 600N CITY: TOWN & COUNTRY STATE: MO ZIP: 63017 8-K 1 1 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported) November 17, 1997 ------------------------- HUNTCO INC. ---------------- (Exact name of registrant as specified in its charter) Missouri 1-13600 43-1643751 - ----------------- ---------------------- -------------- (State or other (Commission File Number) (IRS Employer jurisdiction of Identification No.) incorporation) 14323 S. Outer Forty, Suite 600N, Town & Country, Missouri 63017 - ---------------------------------------------------------- --------- (Address of principal executive offices) (Zip Code) Registrant's telephone number, including area code (314) 878-0155 --------------------------- Not applicable ------------------------------------------------------------ (Former name or former address, if changed since last report) 2 Item 5. Other Events Huntco Inc. (the "Company") issued a news release on November 17, 1997, with respect to its release of earnings for its three and six months ended October 31, 1997. This news release is incorporated herein by reference to Exhibit 99 attached hereto. - ------------------------------------------------------------------------------ SIGNATURE Pursuant to the requirements of the Securities and Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. HUNTCO INC. By: /s/ Robert J. Marischen ------------------------------------- Robert J. Marischen, Vice Chairman & Chief Financial Officer Date: November 17, 1997 - ------------------------------------------------------------------------------ EXHIBIT INDEX These Exhibits are numbered in accordance with the Exhibit Table of Item 601 of Regulation S-K: Exhibit No. Description ----------- --------------------------------- 99 News release of November 17, 1997 EX-99 2 PRESS RELEASE 1 HUNTCO INC. 14323 SOUTH OUTER FORTY - SUITE 600N TOWN & COUNTRY, MISSOURI 63017 FOR IMMEDIATE RELEASE: HUNTCO REPORTS RESULTS FOR SECOND QUARTER. $.035 DIVIDEND DECLARED. TOWN & COUNTRY, MISSOURI, November 17, 1997. . . . . Huntco Inc. (NYSE: HCO) today announced results of operations for its second quarter which ended October 31, 1997. Net sales were a record $99.1 million, an increase of 18.0% in comparison to the prior year's second quarter net sales of $84.0 million. The Company reported net income available for common shareholders of $.7 million, or $.08 per common share, which compares to $2.4 million, or $.27 per common share, for the prior year second quarter. Net sales for the six month period ended October 31, 1997 were a record $189.6 million, an increase of 16.8% in comparison to net sales of $162.4 million for the comparable period of the prior year. The Company reported net income available for common shareholders for the six months ended October 31, 1997 of $2.5 million, or $.28 per share, which compares to net income of $5.0 million, or $.56 per common share, for the six month period ended October 31, 1996. The Company declared a dividend of $.035 per common share for shareholders of record on December 1, 1997, payable on December 15, 1997. The improvement in net sales is attributable to increased levels of tons processed. The Company processed a record 301,499 tons of steel in the quarter ended October 31, 1997, an increase of 26.3% in comparison to the quarter ended October 31, 1996. The Company processed 568,094 tons of steel in the six month period ended October 31, 1997, an increase of 20.9% in comparison to prior year amounts. Approximately 25.1% and 24.6% of the tons processed in the three and six month periods ended October 31, 1997, respectively, represented customer owned material processed on a per ton, fee basis. Also included in tons sold were 60,684 and 117,334 tons of cold rolled products for the three and six month periods ended October 31, 1997, which amounts reflect increases of 37.3% and 38.9%, over the respective prior year periods. Gross profit, expressed as a percentage of net sales, was 7.7% and 8.8% for the three and six month periods ended October 31, 1997, which reflects a decline from the 11.0% and 11.2% gross profit percentages in the comparable periods of the prior year. This downward trend in gross profit margins reflects the effects of price competition as the Company continues to expand its sales of cold rolled steel products, as well as lower margins on hot rolled steel products reflecting declining steel prices charged by producers of hot rolled steel coils. Also negatively effecting gross profit margins is a slower than expected ramp-up of sales at the Company's expanded cold rolling mill and at its metal stamping facility, both in Blytheville, Arkansas, along with related operating inefficiencies. The negative factors effecting the Company's gross profit margins are anticipated to continue at least through the end of the calendar year. The Company expects to commence production on a new coil pickling line at its Blytheville facility during December, 1997. This new pickling line is expected to provide a better quality feed stock for the Company's cold rolling mill in addition to expanding the Company's pickling capacity. The Company has been operating its other pickling line in Blytheville at full capacity levels for well over a year. The Company believes that its investment in inventories will continue to decline and should be below $80.0 million by December 31, 1997. As previously announced, the Company will adopt a calendar year for financial reporting purposes and, accordingly, will report an eight month transition period ending December 31, 1997 on Form 10-K. The months of November and December, 1997, will be reported in the eight month transition period. The Company will then report on a calendar quarter basis commencing with the quarter ending March 31, 1998, which will represent the first quarter of its new fiscal year. This press release contains certain statements that are forward-looking and involve risks and uncertainties. Words such as "expects," "believes," and "anticipates," and variations of such words and similar expressions are intended to identify such forward looking statements. These statements are based on current expectations and projections concerning the Company's operations, the steel processing industry in general, and on assumptions made by Company management, and are not guarantees of future performance. Therefore, actual events, outcomes, and results may differ materially from what is expressed or forecasted in such forward-looking statements. The Company encourages those who make use of this forward-looking data to make reference to a complete discussion of the factors which may cause the forward-looking data to differ materially from actual results which is contained in the Company's Annual Report and in Form 10-K, both for the year ended April 30, 1997. Huntco Inc. is an intermediate steel processor, specializing in the processing of flat rolled carbon steel. * * * * * HUNTCO INC. CONDENSED CONSOLIDATED STATEMENTS OF INCOME (unaudited, in thousands, except per share amounts)
Six Months Three Months Ended October 31 Ended October 31 1997 1996 1997 1996 ------- ------- ------ ------ Net sales $189,623 $162,413 $99,110 $83,983 Cost of sales 172,934 144,213 91,490 74,777 ------- ------- ------ ------ Gross profit 16,689 18,200 7,620 9,206 Selling, general and administrative expenses 8,726 7,444 4,415 3,813 ------- ------- ------ ------ Income from operations 7,963 10,756 3,205 5,393 Other income (expense): Interest, net (3,814) (2,694) (1,959) (1,492) ------- ------- ------ ------ Income before income taxes 4,149 8,062 1,246 3,901 Provision for income taxes 1,556 3,075 474 1,484 ------- ------- ------ ------ Net income 2,593 4,987 772 2,417 Preferred dividends 100 - 50 - ------- ------- ------ ------ Net income available for common shareholders $ 2,493 $ 4,987 $ 722 $ 2,417 ======= ======= ====== ====== Earnings per common share $ .28 $ .56 $ .08 $ .27 ===== ===== ===== ===== Weighted average common shares outstanding 8,942 8,942 8,942 8,942 ===== ===== ===== =====
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
October 31, April 30, 1997 1997 ---------- ---------- (unaudited) (audited) Current assets: Cash $ 35 $ 1,124 Accounts receivable, net 46,807 46,452 Inventories 84,418 105,569 Other current assets 2,571 3,983 -------- -------- 133,831 157,128 Property, plant and equipment, net 144,209 141,436 Other assets 10,759 8,754 -------- -------- $288,799 $307,318 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 46,520 $ 72,569 Accrued expenses 3,676 4,868 Current maturities of long-term debt 200 189 -------- -------- 50,396 77,626 -------- -------- Long-term debt 107,571 100,877 Deferred income taxes 7,904 7,754 -------- -------- 115,475 108,631 -------- -------- Shareholders' equity: Series A preferred stock (issued and outstanding, 225; stated at liquidation value) 4,500 4,500 Common stock: Class A (issued and outstanding, 5,292) 53 53 Class B (issued and outstanding, 3,650) 37 37 Additional paid-in-capital 86,530 86,530 Retained earnings 31,808 29,941 -------- -------- 122,928 121,061 -------- -------- $288,799 $307,318 ======== ========
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