-----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, PbjjgtbquBOTwdR+pQNAIiLjZekgdwbd0NqqxYKGvgvsaN4Dvkx/hrIZtlInUPkg F3R9N7QPKvH8EycYIF6A1Q== 0000905722-99-000013.txt : 19991018 0000905722-99-000013.hdr.sgml : 19991018 ACCESSION NUMBER: 0000905722-99-000013 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19990930 ITEM INFORMATION: FILED AS OF DATE: 19991015 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: 99728710 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) October 14, 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 October 14, 1999, with respect to its release of earnings for its quarter ended September 30, 1999, to provide certain forward-looking information for the year ending December 31, 1999, and to announce the appointment of a new Chief Financial Officer. 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 15, 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 October 14, 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 THIRD QUARTER RESULTS OF OPERATION. TOWN & COUNTRY, MISSOURI, October 14, 1999 . . . . . Huntco Inc. (NYSE:"HCO"), an intermediate steel processor, today announced results of operations for its third quarter which ended September 30, 1999. Net sales for the quarter were $84.2 million, a decrease of 12.0% in comparison to net sales of $95.6 million for the three months ended September 30, 1998. The Company incurred a net loss for common shareholders for the quarter of $1.0 million, or $.11 per share both basic and diluted, which compares to a net loss for common shareholders of $1.2 million, or $.13 per share both basic and diluted, in the prior year's third quarter. Net sales for the nine months ended September 30, 1999 were $265.4 million, a decrease of 14.6% in comparison to net sales of $310.7 million for the nine months ended September 30, 1998. For the nine months ended September 30, 1999, the Company incurred a net loss for common shareholders of $10.0 million, or $1.11 per share both basic and diluted, which compares to a net loss for common shareholders of $.1 million, or $.01 per share both basic and diluted, for the nine months ended September 30, 1998. Included in the 1999 year-to-date net loss is an extraordinary charge of $2.6 million ($.30 per share both basic and diluted) incurred during the Company's second quarter in connection with the early retirement of the Company's previously outstanding long term debt agreements. 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 during late 1998 and early 1999 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 8.8% and 10.6% for the three and nine months ended September 30, 1999, in comparison to prior year levels. Also reflected in the lower net sales for 1999, were reduced direct sales volumes. Direct (i.e., non-tolling) sales volume measured in tons shipped decreased 3.4% and 4.3% in the third quarter and for the nine months ended September 30, 1999. The Company processed and shipped 292,024 and 928,439 tons of steel in the three and nine months ended September 30, 1999, compared to 288,044 and 958,877 tons for the three and nine months ended September 30, 1998. Approximately 24.8% and 24.0% of the tons processed in the three and nine month periods ended September 30, 1999, represented customer-owned material processed on a per ton, fee basis, versus a tolling percentage of 21.0% and 23.1% in the comparable periods of the prior year. The Company sold 66,504 and 195,328 tons of cold rolled products during the three and nine months ended September 30, 1999, as compared to 58,789 and 216,758 tons in the corresponding 1998 periods. Gross profit expressed as a percentage of net sales was 6.7% and 4.3% for the three and nine months ended September 30, 1999, which compares to 5.4% and 6.6% for the comparable periods of 1998, respectively. The higher quarter- over-quarter gross profit percentage is attributable to the recent improvement in industry-wide steel pricing, versus the deterioration in market prices that began in earnest in the third quarter of 1998. The lower year-over-year gross profit percentage reflects the devastating impact that steel selling price declines had on the Company in early 1999, especially in cold rolled steel product pricing and volumes. The Company reported income from operations of $1.0 million for the third quarter of 1999, an improvement of $2.9 million from 1999 second quarter results and the first quarterly operating profit since the second quarter of 1998. Selling, general and administrative costs were reduced by $.9 million, or 15.5% from 1999 second quarter levels, while gross profit improved by $2.0 million during this same time period. Operating performance improved steadily through the 1999 third quarter and the Company realized net income for the month of September. Further, inventories have been reduced by over $50.0 million from peak levels reached during the first quarter of 1999. Net cash provided by operations during the third quarter of 1999 was approximately $16.5 million, which amount was primarily applied to the Company's debt obligations. Overall business conditions continue to strengthen and the Company expects that its operating results will show further improvement in the fourth quarter and into the year 2000. The Company also announced that effective October 15, 1999, Anthony J. Verkruyse is promoted to the position of Chief Financial Officer. Mr. Verkruyse will continue to serve in the capacity of Vice President, Secretary and Treasurer of Huntco Inc., positions that he has held since the Company's initial public offering in 1993. Mr. Robert J. Marischen, the Company's current Vice Chairman, President and Chief Financial Officer will continue in his role as Vice Chairman and President. 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 OPERATION (unaudited, in thousands, except per share amounts)
Nine Months Three Months Ended September 30 Ended September 30 1999 1998 1999 1998 ------- ------- ------- ------ Net sales $265,439 $310,744 $84,199 $95,646 Cost of sales 254,094 290,070 78,589 90,490 ------- ------- ------ ------ Gross profit 11,345 20,674 5,610 5,156 Selling, general and administrative expenses 14,786 14,615 4,578 4,897 ------- ------- ------ ------ Income (loss) from operations (3,441) 6,059 1,032 259 Interest, net (7,503) (6,012) (2,496) (1,995) ------- ------- ------ ------ Income (loss) before income taxes (10,944) 47 (1,464) (1,736) Provision (benefit) for income taxes (3,772) 17 (517) (632) ------- ------- ------ ------ Net income (loss) before extraordinary item (7,172) 30 (947) (1,104) Extraordinary item, net of tax (2,644) - - - ------- ------- ------ ------ Net income (loss) (9,816) 30 (947) (1,104) Preferred dividends 150 150 50 50 ------- ------- ------ ------ Net loss available for common shareholders $ (9,966) $ (120) $ (997) $(1,154) ======= ======= ====== ====== Loss per common share (basic and diluted): Net loss before extraordinary item $ (.81) $ (.01) $ (.11) $ (.13) Extraordinary item, net of tax (.30) - - - ----- ----- ----- ----- Net loss $(1.11) $ (.01) $ (.11) $ (.13) ===== ===== ===== ===== 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, 1999 1998 ---------- ----------- (unaudited) (audited) ASSETS Current assets: Cash $ 19 $ 21 Accounts receivable, net 41,759 43,579 Inventories 69,560 92,240 Other current assets 2,483 2,914 -------- -------- 113,821 138,754 Property, plant and equipment, net 135,736 143,401 Other assets 11,369 11,076 -------- -------- $260,926 $293,231 ======== ======== LIABILITIES & SHAREHOLDERS' EQUITY Current liabilities: Accounts payable $ 34,587 $ 56,923 Accrued expenses 2,496 3,451 Short-term debt 9,791 - Current maturities of long-term debt 205 7,352 -------- -------- 47,079 67,726 -------- -------- Long-term debt 105,967 102,555 Deferred income taxes 2,584 7,376 -------- -------- 108,551 109,931 -------- -------- 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 14,176 24,454 -------- -------- 105,296 115,574 -------- -------- $260,926 $293,231 ======== ========
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