-----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, PuzJlx5YV3YPjgQP7kz3xZ8rgbv4LDDXePt5CimyjRvrOe9vMuYwTz2Mf7CPNUI0 djW2CVxR9ut/kI1RCWFyng== 0000905722-98-000007.txt : 19980723 0000905722-98-000007.hdr.sgml : 19980723 ACCESSION NUMBER: 0000905722-98-000007 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19980630 ITEM INFORMATION: FILED AS OF DATE: 19980721 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: 98669027 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) July 20, 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) Item 5. Other Events Huntco Inc. (the "Company") issued a news release on July 20, 1998, with respect to its release of earnings for its three and six months ended June 30, 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: ---------------------------------- Robert J. Marischen, Vice Chairman & Chief Financial Officer Date: July 20, 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 July 20, 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 SECOND QUARTER. $.035 DIVIDEND DECLARED. TOWN & COUNTRY, MISSOURI, July 20, 1998 . . . . . Huntco Inc. (NYSE:"HCO"), an intermediate steel processor, today announced results of operations for its second quarter which ended June 30, 1998. Net sales for the quarter were $104.7 million, an increase of 11.8% in comparison to net sales of $93.7 million for the three months ended June 30, 1997. Net income available for common shareholders for the quarter was $.4 million, or $.05 per share both basic and diluted, which compares to net income available for common shareholders of $1.5 million, or $.17 per share, both basic and diluted, in the prior year's second quarter. Net sales for the six months ended June 30, 1998 were $215.1 million, an increase of 20.1% in comparison to net sales of $179.2 million for the six months ended June 30, 1997. Net income available for common shareholders for the six months ended June 30, 1998 was $1.0 million, or $.12 per share, both basic and diluted, which compares to net income available for common shareholders of $2.7 million, or $.30 per share, both basic and diluted, in the six month period ended June 30, 1997. The Company declared a dividend of $.035 per common share for common shareholders of record on July 31, 1998 and payable on August 14, 1998. 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 330,731 and 670,833 tons of steel in the three and six month periods ended June 30, 1998, an increase of 21.9% and 29.1%, respectively, in comparison to the comparable periods in the prior year. Approximately 24.3% and 24.0% of the tons processed in the three and six month periods ended June 30, 1998, represented customer-owned material processed on a per ton, fee basis, versus a tolling percentage of 21.6% and 21.9% in the comparable periods of the prior year. The Company sold 72,204 and 158,044 tons of cold rolled products during the three and six month periods ended June 30, 1998, which compares to 60,475 and 109,321 tons in the comparable 1997 periods. Average per ton selling values declined 6.5% in both the three and six month periods ended June 30, 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 7.4% and 7.2% for the three and six month periods ended June 30, 1998, respectively, which compares to 9.7% and 9.2% for the comparable prior year periods. The lower gross profit margins in 1998 primarily reflect the continuing declines in steel prices. The Company expects that tons sold in the second half of 1998 should approximate the level of tons sold during the first half of 1998, but anticipates that the amount of net sales dollars will likely decline somewhat depending on the magnitude of any further reductions in steel prices. The Company also believes, notwithstanding the expected continuing decline in steel prices, that its gross profit margins should continue to improve slowly during the second half of 1998, due to operational improvements and more favorable feed stock costs at the cold mill. Further, the Company believes that recent improvements to the filtration system at the cold mill should allow it to sell its cold rolled products to a broader segment of the market. 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)
Six Months Three Months Ended June 30 Ended June 30 1998 1997 1998 1997 ------- ------- ------- ------ Net sales $215,097 $179,158 $104,724 $93,657 Cost of sales 199,579 162,753 96,962 84,601 ------- ------- ------ ------ Gross profit 15,518 16,405 7,762 9,056 Selling, general and administrative expenses 9,718 8,316 5,000 4,701 ------- ------- ------ ------ Income from operations 5,800 8,089 2,762 4,355 Interest, net (4,017) (3,581) (1,997) (1,826) ------- ------- ------ ------ Income before income taxes 1,783 4,508 765 2,529 Provision for income taxes 650 1,712 283 957 ------- ------- ------ ------ Net income 1,133 2,796 482 1,572 Preferred dividends 100 83 50 50 ------- ------- ------ ------ Net income available for common shareholders $ 1,033 $ 2,713 $ 432 $ 1,522 ======= ======= ====== ====== Earnings per common share (basic and diluted) $ .12 $ .30 $ .05 $ .17 ===== ===== ===== ===== Weighted average common shares outstanding: Basic 8,942 8,942 8,942 8,942 ===== ===== ===== ===== Diluted 8,972 8,942 8,946 8,942 ===== ===== ===== =====
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
June 30, December 31, 1998 1997 ---------- ----------- (unaudited) (audited) ASSETS Current assets: Cash $ 19 $ 27 Accounts receivable, net 52,758 41,643 Inventories 90,591 81,612 Other current assets 2,862 5,015 -------- -------- 146,230 128,297 Property, plant and equipment, net 147,138 145,777 Other assets 11,424 11,191 -------- -------- $304,792 $285,265 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 48,572 $ 40,027 Accrued expenses 4,188 3,879 Current maturities of long-term debt 215 209 -------- -------- 52,975 44,115 -------- -------- Long-term debt 120,527 110,730 Deferred income taxes 9,565 9,415 -------- -------- 130,092 120,145 -------- -------- 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 30,605 29,885 -------- -------- 121,725 121,005 -------- -------- $304,792 $285,265 ======== ========
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