-----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, C1PACn1SlaMhzLBzpEk1Nf2ixiG2ucbE7fLu4sgj02/3+BF5GVmu+k2PAPJw9HsM 14NQNLB5adb1Zv+NoVtPIw== 0000905722-97-000003.txt : 19970222 0000905722-97-000003.hdr.sgml : 19970222 ACCESSION NUMBER: 0000905722-97-000003 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19970131 ITEM INFORMATION: Other events FILED AS OF DATE: 19970218 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: 97536839 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) February 14, 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. issued a news release on February 14, 1997, with respect to its earnings release for the quarter ended January 31, 1997, 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: February 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 February 14, 1997 EX-99 2 PRESS RELEASE HUNTCO INC. 14323 SOUTH OUTER FORTY - SUITE 600N TOWN & COUNTRY, MISSOURI 63017 FOR IMMEDIATE RELEASE: HUNTCO REPORTS RESULTS FOR THIRD QUARTER. $.035 COMMON DIVIDEND DECLARED. TOWN & COUNTRY, MISSOURI, February 14, 1997 . . . . . Huntco Inc. (NYSE: HCO) today announced results of operations for its third quarter ended January 31, 1997. Net sales were $73.4 million, an increase of 7.2% in comparison to the prior year's third quarter net sales of $68.5 million. The Company reported net income of $.1 million, or $.02 per share, for the quarter ended January 31, 1997, which compares to net income of $2.2 million, or $.24 per share, for the prior year third quarter. Net sales for the nine months ended January 31, 1997 were a record $235.8 million, an increase of 27.0% in comparison to net sales of $185.7 million for the comparable period of the prior year. The Company reported net income for the nine months ended January 31, 1997 of $5.1 million, or $.57 per share, which compares to a net loss of $1.6 million, or $.18 per share, for the nine month period ended January 31, 1996. Included in the net loss for the nine months ended January 31, 1996 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. The Company declared a dividend of $.035 per common share for shareholders of record on February 28, 1997, payable on March 10, 1997. The Company also declared a dividend on the 225,000 shares of its Series A Preferred Stock, which shares were issued on January 30, 1997 in connection with the Company's recently announced acquisition of certain assets of Coil-Tec, Inc., of approximately $.07 per share for its preferred shareholders of record as of February 24, 1997, payable on March 1, 1997. The improvement in net sales is primarily attributable to increased levels of tons processed. The Company processed 210,864 tons of steel in the quarter ended January 31, 1997, an increase of 5.6% in comparison to the quarter ended January 31, 1996. The Company processed a record 680,902 tons of steel in the nine months ended January 31, 1997, an increase of 23.8% in comparison to prior year amounts. Approximately 22.2% of the tons processed in the three and nine month periods ended January 31, 1997, represented customer-owned material processed on a per ton, fee basis. The Company indicated that its gross profit margins came under pressure late in its second quarter of fiscal 1997 and that this margin pressure extended into the third quarter. This narrowing of gross profit margins was primarily due to higher domestic prices for its primary raw material, hot rolled steel coils, as significant quantities of lower priced imported material were available in its market territories. The Company's gross profit margins were also negatively impacted during the three months ended January 31, 1997, due to lower absorption of operating costs, reflecting slower sales activity during much of the Company's third quarter. Net sales for the third quarter declined from the record levels attained in the second quarter of fiscal 1997 because of lower shipping volume due to two primary factors. First, shipments declined due to lower sales activity surrounding the November and December holiday periods, when the midweek holidays of 1996 effectively limited the number of shipping days and resulted in lower sales volume levels. Second, and more importantly, shipments declined during November and December as Coil- Tec liquidated a substantial amount of hot-rolled steel inventories both at its Blytheville, Arkansas and Bessemer, Alabama plants prior to the sale of certain of its assets to the Company on January 30, 1997. This lower level of third quarter sales activity, when combined with narrowing gross profit margins during most of the quarter, depressed the Company's gross profit and operating margins, resulting in the Company reporting nominal earnings per share for its third quarter of $.02 per share. Looking ahead to the fourth quarter, the Company expects that its net sales will reach record levels, ahead of second quarter amounts, resulting in shipping volumes for the full fiscal year near 925,000 tons. While gross profit margins have begun to slowly recover, they are expected to remain under pressure during the quarter as the Company continues to shift its supplier base to lower its relative raw material costs. This process should be largely accomplished during the fourth quarter. Further, the Company commenced operations at its new facility in South Carolina during January, 1997 and is currently completing the start-up of the doubling of its capacity at its cold rolling operations in Blytheville, Arkansas. The Company also will install and start-up a new coil slitting line at its South Carolina facility during March, 1997. In light of these factors and current market conditions, gross profit margins in the fourth quarter are only expected to increase to around 9%. Those who make use of any forward-looking data contained herein are encouraged 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. Huntco Inc. is an intermediate steel processor, specializing in the processing of flat rolled carbon steel. HUNTCO INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited, in thousands, except per share amounts)
Nine Months Three Months Ended January 31 Ended January 31 1997 1996 1997 1996 ------- ------- ------ ------ Net sales $235,805 $185,664 $73,392 $68,486 Cost of sales 211,830 176,342 67,616 60,458 ------- ------- ------ ------ Gross profit 23,975 9,322 5,776 8,028 Selling, general and administrative expenses 11,205 9,629 3,762 3,537 ------- ------- ------ ------ Income (loss) from operations 12,770 (307) 2,014 4,491 Interest expense, net (4,483) (2,188) (1,788) (1,052) ------- ------- ------ ------ Income (loss) before income taxes 8,287 (2,495) 226 3,439 Provision (benefit) for income taxes 3,161 (901) 86 1,286 ------- ------- ------ ------ Net income (loss) $ 5,126 $ (1,594) $ 140 $ 2,153 Preferred dividends - - - - ------- ------- ------ ------ Net income (loss) available to common shareholders $ 5,126 $ (1,594) $ 140 $ 2,153 ======= ======= ====== ====== Earnings (loss) per common share $ .57 $ (.18) $ .02 $ .24 ===== ===== ===== ===== Weighted average common shares outstanding 8,952 8,940 8,942 8,940 ===== ===== ===== =====
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
January 31, April 30, 1997 1996 ---------- ---------- (unaudited) (audited) ASSETS Current assets: Cash $ 3,161 $ 2,737 Accounts receivable, net 38,968 36,804 Inventories 78,902 53,964 Other current assets 2,612 1,926 ------- ------- 123,643 95,431 Property, plant and equipment, net 137,941 120,338 Other assets 8,453 6,668 ------- ------- $270,037 $222,437 ======= ======= LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 34,327 $ 29,003 Accrued expenses 2,062 3,934 Current maturities of long-term debt 189 189 ------- ------- 36,578 33,126 ------- ------- Long-term debt 105,424 73,066 Deferred income taxes 7,973 4,879 ------- ------- 113,397 77,945 ------- ------- Shareholders' equity: Series A preferred stock (issued and outstanding 225 and none, stated at liquidation value) 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 86,531 86,567 Retained earnings 28,941 24,709 ------- ------- 120,062 111,366 ------- ------- $270,037 $222,437 ======= =======
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