-----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, WW5gFcuafDx5xsIYFoV+38X59PaQDk9D6LeZ6mRh9ImmTmnC4RCCj1y8pKmoDK0L vJf8tKIbToBk0pndQgKoDA== 0000905722-99-000011.txt : 19990730 0000905722-99-000011.hdr.sgml : 19990730 ACCESSION NUMBER: 0000905722-99-000011 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990630 ITEM INFORMATION: FILED AS OF DATE: 19990729 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: 99672515 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 29, 1999 ------------------------- 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 29, 1999, with respect to its release of earnings for its quarter ended June 30, 1999. 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, President & CFO Date: July 29, 1999 - ------------------------------------------------------------------------------ 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 29, 1999 EX-99 2 PRESS RELEASE HUNTCO INC. 14323 SOUTH OUTER FORTY - SUITE 600N TOWN & COUNTRY, MISSOURI 63017 NEWS RELEASE FOR IMMEDIATE RELEASE: HUNTCO REPORTS SECOND QUARTER RESULTS. TOWN & COUNTRY, MISSOURI, July 29, 1999. . . . . Huntco Inc. (NYSE:"HCO"), an intermediate steel processor, today announced results of operations for its second quarter ended June 30, 1999. Net sales for the quarter were $90.9 million, a decrease of 13.2% in comparison to net sales of $104.7 million for the three months ended June 30, 1998 (the "prior year's second quarter"). The Company reported a net loss available for common shareholders for the 1999 second quarter of $5.7 million ($.64 per share both basic and diluted), which included an extraordinary charge of $2.6 million ($.30 per share both basic and diluted) incurred in connection with the early retirement of the Company's previously outstanding long term debt agreements. The resulting net loss before extraordinary charges of $3.0 million for the second quarter of 1999 ($.34 per share both basic and diluted) compares to net income available for common shareholders of $.4 million ($.05 per share both basic and diluted) in the prior year's second quarter. Net sales for the six months ended June 30, 1999 were $181.2 million, a decrease of 15.7% in comparison to net sales of $215.1 million for the six months ended June 30, 1998. The Company reported a net loss available for common shareholders for the six months ended June 30, 1999 of $9.0 million ($1.00 per share both basic and diluted), which included the extraordinary charge referred to above. The net loss before extraordinary charges of $6.2 million for the six months ended June 30, 1999 ($.70 per share both basic and diluted) compares to net income available for common shareholders of $1.0 million ($.12 per share both basic and diluted) for the comparable period of the prior year. The Company's lower net sales are primarily the result of declining selling prices. The effect of historically high imports of steel products into the United States over the past twelve months resulted in significant declines in selling values realized by the Company and the steel processing industry in general. The Company's average per ton selling values declined 11.2% and 10.4% for the three and six months ended June 30, 1999, in comparison to prior year levels. Also reflected in the lower net sales for 1999, in relation to the prior year, were reduced shipping volumes. The Company processed and shipped 306,146 and 636,415 tons of steel in the three and six months ended June 30, 1999, reflecting decreases of 7.4% and 5.1% in comparison to the comparable periods of the prior year. Approximately 21.1% and 23.7% of the tons processed in the three and six months ended June 30, 1999 represented customer-owned material processed on a per ton, fee basis, versus tolling percentages of 24.3% and 24.0% in the comparable periods of the prior year. For the three and six months ended June 30, 1999, the Company sold 67,004 and 128,824 tons of cold rolled products, which compares to 72,204 and 158,044 tons for the comparable periods of 1998. Gross profit expressed as a percentage of net sales was 3.9% and 3.2% for the three and six months ended June 30, 1999, which compares to 7.4% and 7.2% for the comparable periods of 1998, respectively. The lower gross profit margin reflects the devastating impact of continuing steel selling price declines in 1999, especially in cold rolled steel products. During the 1999 second quarter, the Company elected to dispose of its metal stamping business conducted at its Blytheville facility. The Company's stamping operation has not performed up to management's expectations since its relocation to Blytheville in 1996. The Company incurred operating losses of $.7 million and $1.0 million in its stamping operations during the three and six months ended June 30, 1999. Certain equipment related to this operation will be sold during the third quarter of 1999. However, the Company will continue to operate certain stamping equipment that produces components for its air cylinder operations. Notwithstanding the difficult market environment experienced during the first half of 1999, the Company's Flat Rolled Products Division and its Custom Products Division (excluding operating losses relating to the metal stamping operation being sold) both contributed pretax profits for the first half of 1999 and are expected to show further improvement for the remainder of the year and into the year 2000. The Company was also successful in significantly reducing its investment in inventories during the second quarter of 1999 and enters the second half of the year with its inventories more favorably positioned in relation to current market prices. The Company expects that operating results at its Rolling Mill Division will improve steadily over the balance of 1999, benefiting from price increases, lower material costs and operating expenses, as well as from generally improving market fundamentals in the wake of recently filed trade actions against importers of cold rolled steel. 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 1999 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 Annual Report and in Form 10-K, both for the year ended December 31, 1998. Huntco Inc. is a major, 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)
Six Months Three Months Ended June 30 Ended June 30 1999 1998 1999 1998 ------- ------- ------- ------ Net sales $181,239 $215,097 $ 90,863 $104,724 Cost of sales 175,504 199,579 87,275 96,962 ------- ------- ------ ------ Gross profit 5,735 15,518 3,588 7,762 Selling, general and administrative expenses 10,208 9,718 5,419 5,000 ------- ------- ------ ------ Income (loss) from operations (4,473) 5,800 (1,831) 2,762 Interest, net (5,007) (4,017) (2,810) (1,997) ------- ------- ------ ------ Income (loss) before income taxes (9,480) 1,783 (4,641) 765 Provision (benefit) for income taxes (3,255) 650 (1,593) 283 ------- ------- ------ ------ Net income (loss) before extraordinary item (6,225) 1,133 (3,048) 482 Extraordinary item, net of tax (2,644) - (2,644) - ------- ------- ------ ------ Net income (loss) (8,869) 1,133 (5,692) 482 Preferred dividends 100 100 50 50 ------- ------- ------ ------ Net income (loss) available for common shareholders $ (8,969) $ 1,033 $(5,742) $ 432 ======= ======= ====== ====== Earnings per common share (basic and diluted): Net income (loss) before extraordinary item $ (.70) $ .12 $ (.34) $ .05 Extraordinary item, net of tax (.30) - (.30) - Net income (loss) (1.00) .12 (.64) .05 Weighted average common shares outstanding: Basic 8,942 8,942 8,942 8,942 Diluted 8,942 8,972 8,942 8,946
HUNTCO INC. CONDENSED CONSOLIDATED BALANCE SHEETS (in thousands)
June 30, December 31, 1999 1998 ---------- ----------- (unaudited) (audited) ASSETS Current assets: Cash $ 21 $ 21 Accounts receivable, net 43,691 43,579 Inventories 76,608 92,240 Other current assets 2,769 2,914 -------- -------- 123,089 138,754 Property, plant and equipment, net 138,542 143,401 Other assets 11,689 11,076 -------- -------- $273,320 $293,231 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 28,396 $ 56,923 Accrued expenses 2,844 3,451 Short-term debt 13,291 - Current maturities of long-term debt 205 7,352 -------- -------- 44,736 67,726 -------- -------- Long-term debt 119,127 102,555 Deferred income taxes 3,165 7,376 -------- -------- 122,292 109,931 -------- -------- 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 15,172 24,454 -------- -------- 106,292 115,574 -------- -------- $273,320 $293,231 ======== ========
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