-----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, C+kVW+m0YuzzJkOhNgF3O1R0bhtGEWhJDMGmZu54Pkk6LaJJtASTO4edQRjtTzMw C6rV3Mxo9iYEkSBE1tFq7A== 0000905722-98-000005.txt : 19980417 0000905722-98-000005.hdr.sgml : 19980417 ACCESSION NUMBER: 0000905722-98-000005 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980331 ITEM INFORMATION: FILED AS OF DATE: 19980416 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: 98595334 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 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) April 16, 1998 ------------------------- 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 April 16, 1998, with respect to its release of earnings for its three months ended March 31, 1998. 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: April 16, 1998 - ------------------------------------------------------------------------------ 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 April 16, 1998 EX-99 2 PRESS RELEASE 1 HUNTCO INC. 14323 SOUTH OUTER FORTY - SUITE 600N TOWN & COUNTRY, MISSOURI 63017 FOR IMMEDIATE RELEASE: HUNTCO REPORTS NET SALES AND NET INCOME FOR FIRST QUARTER. $.035 DIVIDEND DECLARED. TOWN & COUNTRY, MISSOURI, April 16, 1998 . . . . . Huntco Inc. (NYSE:"HCO"), a Town & Country based intermediate steel processor, today announced results of operations for its first quarter ended March 31, 1998. Net sales for the quarter were $110.4 million, an increase of 29.1% in comparison to net sales of $85.5 million for the three months ended March 31, 1997 (the "prior year's first quarter"). Net income available for common shareholders for the quarter was $.6 million, or $.07 per share both basic and diluted, which compares to net income available for common shareholders of $1.2 million, or $.13 per share both basic and diluted, in the prior year's first quarter. The Company declared a dividend of $.035 per common share for common shareholders of record on May 1, 1998 and payable on May 15, 1998. As discussed more fully in the Company's Transitional Annual Report to Shareholders and in its Form 10-K for the transition period ended December 31, 1997, the Company and its lenders amended the terms of its long-term debt agreements effective March 24, 1998. The Company is in compliance with the financial covenants and ratios required by such agreements. The Company attributes the increase in net sales to higher levels of tons processed, with these volume driven increases in net sales being partially offset by lower average selling prices. The Company processed and shipped a record 340,102 tons of steel in the quarter, an increase of 37.0% in comparison to the prior year's first quarter. Approximately 23.8% of the tons processed in the first quarter of 1998 represented customer-owned material processed on a per ton, fee basis, versus a tolling percentage of 22.3% in the comparable period of the prior year. The Company sold 85,840 tons of cold rolled products during the first quarter of 1998, which compares to 48,846 tons in the prior year's first quarter. Average per ton selling values declined 6.5% in the first quarter of 1998, in comparison to prior year levels, reflecting lower prices for hot rolled steel coils charged by the Company's suppliers. Gross profit expressed as a percentage of net sales was 7.0% for the quarter ended March 31, 1998, which compares to 8.6% for the prior year's first quarter. The lower gross profit margin reflects continuing declines in steel prices, higher levels of equipment lease expense included in cost of sales, and lower percentage margin sales resulting from start-up expenses relating to the Company's new coil pickling line at its Blytheville facility. First quarter gross profit margins in calendar 1997 were negatively impacted by the start-up of the Company's new South Carolina facility. The Company expects that its net sales in the second quarter should approximate the level of net sales realized during the first quarter of 1998. It further believes that its gross profit margins will improve slowly during the second quarter, with the increase in gross profit margins accelerating in the second half of the year as the Company expects to benefit from more favorable raw material pricing and continuing operational improvements. 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 plans for 1998 and about the steel processing industry in general, as well as 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 Transitional Annual Report and in Form 10-K, both for the eight month transition period ended December 31, 1997. Huntco Inc. is a major, 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)
Three Months Ended March 31, 1998 1997 ------- ------- Net sales $110,373 $85,501 Cost of sales 102,617 78,152 -------- ------- Gross profit 7,756 7,349 Selling, general and administrative expenses 4,718 3,615 -------- ------- Income from operations 3,038 3,734 Interest, net (2,021) (1,755) -------- ------- Income before income taxes 1,017 1,979 Provision for income taxes 366 755 -------- ------- Net income 651 1,224 Preferred dividends 50 33 -------- ------- Net income available for common shareholders $ 601 $ 1,191 ======== ======= Earnings per common share: Basic $ .07 $ .13 ===== ===== Diluted $ .07 $ .13 ===== ===== Weighted average common shares outstanding: Basic 8,942 8,942 ===== ===== Diluted 8,998 8,942 ===== =====
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
March 31, December 31, 1998 1997 ---------- ----------- (unaudited) (audited) ASSETS Current assets: Cash $ 21 $ 27 Accounts receivable, net 52,214 41,643 Inventories 74,714 81,612 Other current assets 3,556 5,015 -------- -------- 130,505 128,297 Property, plant and equipment, net 145,762 145,777 Other assets 11,394 11,191 -------- -------- $287,661 $285,265 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 38,451 $ 40,027 Accrued expenses 3,153 3,879 Current maturities of long-term debt 200 209 -------- -------- 41,804 44,115 -------- -------- Long-term debt 114,686 110,730 Deferred income taxes 9,565 9,415 -------- -------- 124,251 120,145 -------- -------- 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 30,486 29,885 -------- -------- 121,606 121,005 -------- -------- $287,661 $285,265 ======== ========
HUNTCO INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited, in thousands)
Three Months Ended March 31, 1998 1997 ------- ------- Cash flows from operating activities: Net income $ 651 $ 1,224 ------- ------- Adjustments to reconcile net income to net cash provided (used) by operating activities: Depreciation and amortization 2,508 2,156 Other (427) (224) Decrease (increase) in: accounts receivable (10,571) (7,577) inventories 6,898 (19,178) other current assets 1,459 1,249 other assets (404) (2,419) Increase (decrease) in: accounts payable (1,576) 25,139 accrued expenses (726) (910) non-current deferred taxes 150 1,340 ------- ------- Total adjustments (2,689) (424) ------- ------- Net cash provided (used) by operations (2,038) 800 ------- ------- Cash flows from investing activities: Acquisition of property, plant and equipment, net (1,865) (11,831) ------- ------- Net cash used by investing activities (1,865) (11,831) ------- ------- Cash flows from financing activities: Issuance of Series A preferred stock - 4,500 Net proceeds from newly-issued debt 4,000 5,500 Payments on long-term debt (53) (47) Common stock dividends - (313) Preferred stock dividends (50) (33) Other - (37) ------- ------- Net cash provided by financing activities 3,897 9,570 ------- ------- Net decrease in cash (6) (1,461) Cash, beginning of period 27 1,759 ------- ------- Cash, end of period $ 21 $ 298 ======= =======
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