-----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, FJtPITJ0jNvURRlifawyW/bkQ00/+CEZRvL1VoX6AErMKLzV2V8iqsS2bfhfTii4 KVLXzzUy8aUao/uU5sZNnw== /in/edgar/work/0000905722-00-500010/0000905722-00-500010.txt : 20001030 0000905722-00-500010.hdr.sgml : 20001030 ACCESSION NUMBER: 0000905722-00-500010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 20001027 ITEM INFORMATION: FILED AS OF DATE: 20001027 FILER: COMPANY DATA: COMPANY CONFORMED NAME: HUNTCO INC CENTRAL INDEX KEY: 0000905722 STANDARD INDUSTRIAL CLASSIFICATION: [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: 747684 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 oct8kform.txt FORM 8-K 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) October 23, 2000 ------------------------- 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 October 23, 2000, with respect to its release of earnings for its quarter ended September 30, 2000, and to provide certain forward-looking information for the year ending December 31, 2000. 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/ Anthony J. Verkruyse ------------------------------------- Anthony J. Verkruyse, Vice President & CFO Date: October 26, 2000 - ------------------------------------------------------------------------------ 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 October 23, 2000 EX-99 2 oct8kex99.txt PRESS RELEASE HUNTCO INC. 14323 SOUTH OUTER FORTY - SUITE 600N TOWN & COUNTRY, MISSOURI 63017 NEWS RELEASE FOR IMMEDIATE RELEASE: HUNTCO REPORTS THIRD QUARTER RESULTS TOWN & COUNTRY, MISSOURI, October 23, 2000. . . . . Huntco Inc. (NYSE:"HCO"), an intermediate steel processor, today announced results of operations for its third quarter ended September 30, 2000. Net sales for the third quarter of 2000 were $66.3 million, a decrease of 21.2% in comparison to net sales of $84.2 million for the three months ended September 30, 1999. The Company reported a net loss for common shareholders for the 2000 third quarter of $4.0 million ($.45 per share both basic and diluted), which compares to a net loss for common shareholders for the 1999 third quarter of $1.0 million ($.11 per share both basic and diluted). Net sales for the nine months ended September 30, 2000 were $231.6 million, a decrease of 12.8% in comparison to net sales of $265.4 million for the nine months ended September 30, 1999. The Company reported a net loss for common shareholders for the nine months ended September 30, 2000 of $4.7 million ($.52 per share both basic and diluted), which compares to a net loss of $10.0 million for the nine months ended September 30, 1999 ($1.11 per share both basic and diluted), which included a net of tax extraordinary charge of $2.6 million ($.30 per share both basic and diluted) incurred in connection with the early retirement of the Company's long term debt agreements in April 1999. The Company also announced that it has retained Chase Securities, Inc. to act as its financial advisor in responding to inquiries concerning a potential sale or partnership relating to its cold rolling operations, as well as to identify and pursue other appropriate opportunities in this regard. Overshadowed by the extremely negative market environment that currently exists is the substantial progress the Company has made in positioning its cold rolling operations as a quality producer of light-gauge, wide material. The decrease in net sales for the three and nine months ended September 30, 2000, versus the comparable periods of 1999, was primarily attributable to the 1999 fourth quarter sale of the Company's former South Carolina facility, combined with lower shipping volumes at the Company's remaining operations, especially during the second and third quarters of 2000. The former South Carolina facility contributed $8.0 million and $22.9 million in net sales in the three and nine months ended September 30, 1999. The Company processed and shipped 235,533 and 747,731 tons of steel in the three and nine months ended September 30, 2000, reflecting decreases of 6.3% and 9.1% in relation to continuing operations for the comparable periods of the prior year (i.e., exclusive of 1999 sales from the South Carolina facility). Approximately 31.7% and 26.3% of the tons processed in the three and nine months ended September 30, 2000 represented customer-owned material processed on a per ton, fee basis, versus tolling percentages of 24.8% and 24.0% in the comparable periods of the prior year. For the three and nine months ended September 30, 2000, the Company sold 42,801 and 170,934 tons of cold rolled products, which compares to 66,504 and 195,328 tons for the comparable periods of 1999. Gross profit expressed as a percentage of net sales was .9% and 5.9% for the three and nine months ended September 30, 2000, which compares to 6.7% and 4.3% for the comparable periods of 1999, respectively. The higher year-over- year gross profit margin reflects the negative impact of steel selling price declines in 1999, especially in cold rolled steel products. The lower gross profit margin realized in the quarter ended September 30, 2000, versus that realized year-to-date, is due to falling prices and weaker demand across all product lines, which weakness began in the second quarter of 2000 and has continued into the fourth quarter. Hot band prices have declined by over 30% since early summer. The combination of interest rate hikes, higher energy costs, the seasonal effect of summer manufacturing slowdowns, and higher import levels encouraged by the decision of the International Trade Commission not to follow the Commerce Department's preliminary finding to impose duties on the import of cold rolled steel coils from twelve different countries, has influenced the producing mills to lower their hot band prices to attract demand. However, the lower hot band prices appear to have had little impact in encouraging steel purchases. Rather, the prospect of lower prices in the market and the apparent sufficient quantity of steel inventory in the distribution channels have prompted distributors, processors (such as the Company), and the Company's customers to reduce inventory positions in the face of such rapidly falling prices. These operating margin pressures continued through the 2000 third quarter and into the fourth quarter. Notwithstanding the negative impact on the Company's operating results from the dramatic decrease in steel prices which occurred in the 2000 third quarter and the related slowdown in business activity levels, the Company was able to reduce the level of its long-term debt obligations by $6.5 million during the third quarter and to reduce the level of its trade obligations by $9.1 million from balances at June 30, 2000. This was primarily accomplished through improved working capital management. Net cash provided by operations during the third quarter totaled $7.1 million. The Company expects to realize further reductions in its investment in inventories of approximately $20.0 million during the fourth quarter, helping to produce positive cash flow from operations. 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 2000 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 Form 10-K for the year ended December 31, 1999. HUNTCO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts)
Nine Months Three Months Ended September 30, Ended September 30, 2000 1999 2000 1999 ------- ------- ------- ------ Net sales $231,595 $265,439 $ 66,313 $ 84,199 Cost of sales 217,890 254,094 65,702 78,589 ------- ------- ------ ------ Gross profit 13,705 11,345 611 5,610 Selling, general and administrative expenses 13,063 14,786 4,098 4,578 ------- ------- ------ ------ Income (loss) from operations 642 (3,441) (3,487) 1,032 Interest, net (7,566) (7,503) (2,492) (2,496) ------- ------- ------ ------ Loss before income taxes (6,924) (10,944) (5,979) (1,464) Benefit for income taxes (2,400) (3,772) (2,049) (517) ------- ------- ------ ------ Net loss before extraordinary item (4,524) (7,172) (3,930) (947) Extraordinary item, net of tax - (2,644) - - ------- ------- ------ ------ Net loss (4,524) (9,816) (3,930) (947) Preferred dividends 150 150 50 50 ------- ------- ------ ------ Net loss available for common shareholders $ (4,674) $ (9,966) $(3,980) $ (997) ======= ======= ====== ====== Earnings per common share (basic and diluted): Net loss before extraordinary item $ (.52) $ (.81) $ (.45) $ (.11) Extraordinary item, net of tax - (.30) - - Net loss (.52) (1.11) (.45) (.11) Weighted average common shares outstanding: Basic and diluted 8,942 8,942 8,942 8,942
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
September 30, December 31, 2000 1999 ---------- ----------- (unaudited) (audited) ASSETS Current assets: Cash $ 1,140 $ 414 Accounts receivable, net 33,408 41,835 Inventories 70,447 77,832 Other current assets 2,010 2,380 -------- -------- 107,005 122,461 Property, plant and equipment, net 118,803 123,548 Other assets 10,998 10,725 -------- -------- $236,806 $256,734 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 30,618 $ 43,279 Accrued expenses 2,558 2,657 Current maturities of long-term debt 205 248 -------- -------- 33,381 46,184 -------- -------- Long-term debt 104,187 105,470 Deferred income taxes - 1,166 -------- -------- 104,187 106,636 -------- -------- 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 8,118 12,794 -------- -------- 99,238 103,914 -------- -------- $236,806 $256,734 ======== ========
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