-----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, Sl6GwjGGgvuI2kpIPWcmwtxalZTBphTqxDJStx+8V+s7s4YRlf3XsQs175pR7jov M7IGiSvDVQxbsFx9fACIJw== 0000905722-96-000010.txt : 19961113 0000905722-96-000010.hdr.sgml : 19961113 ACCESSION NUMBER: 0000905722-96-000010 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19961031 ITEM INFORMATION: Other events FILED AS OF DATE: 19961112 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: 0430 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-13600 FILM NUMBER: 96658966 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 12, 1996 ------------------------- 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. issued a news release on November 11, 1996, with respect to its earnings release for the quarter ended October 31, 1996, and provided an update of its outlook for the balance of fiscal 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 12, 1996 - ------------------------------------------------------------------------------ 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 11, 1996 EX-99 2 PRESS RELEASE 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 11, 1996 . . . . . Huntco Inc. (NYSE: HCO) today announced results of operations for its second quarter which ended October 31, 1996. Net sales were a record $84.0 million, an increase of 35.3% in comparison to the prior year's second quarter net sales of $62.1 million. The Company reported net income of $2.4 million, or $.27 per share, for the quarter ended October 31, 1996, which compares to a net loss of $4.7 million, or $.52 per share, for the prior year second quarter. Included in the net loss for the quarter ended October 31, 1995 was a charge for a lower of cost or market inventory adjustment of $5.0 million, net of income tax benefits, or $.56 per share. Net sales for the six month period ended October 31, 1996 were a record $162.4 million, an increase of 38.6% in comparison to net sales of $117.2 million for the comparable period of the prior year. The Company reported net income for the six months ended October 31, 1996 of $5.0 million, or $.56 per share, which compares to a net loss of $3.7 million, or $.42 per share, for the six month period ended October 31, 1995. The net loss for the six month period ended October 31, 1995 also reflected the effects of the lower of cost or market inventory adjustment discussed above. The Company declared a dividend of $.035 per share for shareholders of record on November 27, 1996, payable on December 9, 1996. The improvement in net sales is attributable to increased levels of tons processed. The Company processed a record 238,729 tons of steel in the quarter ended October 31, 1996, an increase of 34.4% in comparison to the quarter ended October 31, 1995. The Company processed 470,038 tons of steel in the six month period ended October 31, 1996, an increase of 34.3% in comparison to prior year amounts. Approximately 21.1% and 22.2% of the tons processed in the three and six month periods ended October 31, 1996, respectively, represented customer owned material processed on a per ton, fee basis. The Company indicated that its gross profit margins were under pressure, especially late in the second quarter, due to higher domestic prices for its primary raw material, hot rolled steel coils, when significant quantities of lower priced imported material were available in its market territories. Further, the Company has continued to purchase a majority of its raw material requirements from domestic suppliers in order to maximize its inventory turnover rates. In light of these factors, additional announced price increases effective January 1, 1997 by Nucor, the Company's major supplier of hot rolled steel coils, and an extremely competitive environment, the Company expects that this margin pressure will continue, and may become more severe during the holiday season in November and December when there are fewer shipping days. If this occurs, the 11% gross profit margin realized by the Company during the first six months of the 1997 fiscal year may reflect the high end of the possible range of gross profit percentages which may be realized for the third quarter and possibly for the entire second half of the year. As such, it now appears that gross profits could decline to a range of 9% to 11% of net sales during the third quarter, with a recovery to approximately 11% expected in the fourth quarter. The Company encourages those who make use of this forward-looking data to make reference to the discussion found under the title "Risk Factors - 1997 Forecast" included within Item 7, Management's Discussion and Analysis of Financial Condition and Results of Operations, of the Company's Annual Report on Form 10-K for the year ended April 30, 1996, as filed with the Securities and Exchange Commission on July 26, 1996. The Company stated that it was proceeding with due diligence in regard to the previously announced acquisition of certain assets of Coil-Tec, Inc. and that a closing was still expected before the end of the calendar year. Further information concerning the terms of the acquisition will not be released until completion of the negotiation of a definitive agreement. Huntco Inc. is an intermediate steel processor, specializing in the processing of flat rolled carbon steel. HUNTCO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, dollars in thousands, except per share amounts)
Six Months Three Months Ended October 31 Ended October 31 1996 1995 1996 1995 ------- ------- ------ ------ Net sales $162,413 $117,178 $83,983 $62,072 Cost of sales 144,213 115,884 74,777 65,552 ------- ------- ------ ------ Gross profit (loss) 18,200 1,294 9,206 (3,480) Selling, general and administrative expenses 7,444 6,092 3,813 3,097 ------- ------- ------ ------ Income (loss) from operations 10,756 (4,798) 5,393 (6,577) Other income (expense): Interest, net (2,694) (1,137) (1,492) (810) Other, net - 2 - 2 ------- ------- ------ ------ Income (loss) before income taxes 8,062 (5,933) 3,901 (7,385) Provision (benefit) for income taxes 3,075 (2,186) 1,484 (2,732) ------- ------- ------ ------ Net income (loss) $ 4,987 $ (3,747) $ 2,417 $(4,653) ======= ======= ====== ====== Earnings (loss) per share $ .56 $ (.42) $ .27 $ (.52) ===== ===== ===== ===== Weighted average common shares outstanding 8,952 8,940 8,951 8,940 ===== ===== ===== =====
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (amounts in thousands)
October 31, April 30, 1996 1996 ---------- -------- (unaudited) (audited) ASSETS Current assets: Cash $ 2,614 $ 2,737 Accounts receivable, net 39,918 36,804 Inventories 65,143 53,964 Other current assets 2,164 1,926 ------- ------- 109,839 95,431 Property, plant and equipment, net 131,697 120,338 Goodwill 4,857 5,001 Other assets 1,477 1,667 ------- ------- $247,870 $222,437 ======= ======= LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 24,631 $ 29,003 Accrued expenses 1,674 3,934 Current maturities of long-term debt 189 189 ------- ------- 26,494 33,126 ------- ------- Long-term debt 98,972 73,066 Deferred income taxes 6,632 4,879 ------- ------- 105,604 77,945 ------- ------- Shareholders' equity: Preferred stock (issued and outstanding, none) - - Common stock: Class A (issued and outstanding, 5,292) 53 53 Class B (issued and outstanding, 3,650) 37 37 Additional paid-in-capital 86,567 86,567 Retained earnings 29,115 24,709 ------- ------- 115,772 111,366 ------- ------- $247,870 $222,437 ======= =======
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