LAKESIDE STEEL INC. ANNOUNCES THIRD QUARTER RESULTS
February 14 2011 - 5:30PM
PR Newswire (Canada)
WELLAND, ON, Feb. 14 /CNW/ -- WELLAND, ON, Feb. 14 /CNW/ - Lakeside
Steel Inc. (TSX-V: LS) (the "Company") today reported results for
the three months ended December 31, 2010. For the three months
ended December 31, 2010, the Company's revenue was $53,820,247, an
increase of $26,780,473 or 99% compared to revenue of $27,039,774
for the three months ended December 31, 2009, and a decrease of
$12,665,612 or 19% compared to the previous quarter ended September
30, 2010. For the nine months ended December 31, 2010, the
Company's revenue was $182,508,971, an increase of $121,657,131 or
200% compared to revenue of $60,851,840 for the nine months ended
December 31, 2009. For the nine month period ended December
31, 2010, the Company has achieved record setting performance in
both revenue and tons produced. The Company's net income for the
three months ended December 31, 2010, was $215,827, an increase of
$3,972,884 from a net loss of $3,757,057 for the three months ended
December 31, 2009, and a decrease of $1,398,471 compared to the
previous quarter ended September 30, 2010. For the nine months
ended December 31, 2010, the Company's net income was $2,043,079,
an increase of $11,809,858 compared to a net loss of $9,766,779 for
the nine months ended December 31, 2009. The Company's adjusted
EBITDA was $1,957,124 for the three months ended December 31, 2010,
an increase of $7,267,622 from an adjusted EBITDA of $(5,310,498)
for the three months ended December 31, 2009 and a decrease of
$1,526,502 compared to the previous quarter ended September 30,
2010. For the nine months ended December 31, 2010, the Company's
adjusted EBITDA was $6,505,677, an increase of $19,873,654 compared
to adjusted EBITDA of $(13,367,977) for the nine months ended
December 31, 2009. The Company had earnings per share of $0.00 for
the three months ended December 31, 2010 (earnings of $0.02 for the
nine months ended December 31, 2010), compared to a loss per share
of $0.06 for the three months ended December 31, 2009 (loss of
$0.16 for the nine months ended December 31, 2009). The demand for
OCTG products manufactured by Lakeside Steel Corporation
("Lakeside"), the Company's wholly-owned subsidiary, remained
strong throughout the 2010 calendar year. Softened demand in the
third quarter of fiscal 2011 was a result of the expected cyclical
downturn in the market, as well as the continued presence of lower
priced imported products. The Company expects demand for its
products to increase throughout calendar 2011 as a result of strong
oil pricing, which is expected to keep rig count high. Lakeside's
current order book provides a full production load in both of its
mills and is accepting orders for March production. Ron Bedard,
President and CEO of Lakeside commented, "While the Company's net
income was adversely affected in the quarter due to costs incurred
associated with removing the PCB impacted material from the
Welland, Ontario facility, the Company is pleased with these
positive results in a difficult economic climate. With the changes
that have been implemented in Welland, Lakeside is producing
record, or near record, tonnage, revenue, EBITDA and net income.
The Company is pleased that the Welland facility has continued to
operate at full employment. The Company continues to expand its
blue chip customer base by expanding its value added, OCTG focused
product mix. The Company is pleased with its organic growth program
and the progress with the build-out in Thomasville, Alabama.
Lakeside Alabama will effectively double the Company's output and
associated steel buy, as well as assist the Company in becoming a
lower cost producer. The project has progressed according to plan,
and has met the necessary construction and delivery milestones as
expected. The Lakeside Alabama construction team has worked more
than 25,000 man-hours accident free to date. As previously stated,
the Company continues to explore opportunities to responsibly grow
its business either organically or through M&A activity". About
Lakeside Steel Inc. Lakeside Steel is a 2010 TSX Venture Exchange
50 company and the parent company of Lakeside. Lakeside,
located in Welland, Ontario, is a diversified steel pipe and tubing
manufacturer with a focus on manufacturing and upgrading Oil
Country Tubular Goods. Lakeside's list of customers includes large
oil and gas end users as well as distributors across North America.
Lakeside Steel also indirectly wholly-owns Lakeside Steel Alabama
which will be a diversified steel pipe manufacturer strategically
situated in the southern United States on successful completion of
the construction of the new facility in Thomasville, Alabama.
Construction of the Alabama facility is currently underway. This
press release may contain forward-looking statements with respect
to the Company, its operations, strategy, financial performance and
condition. These statements generally can be identified by use of
forward looking words such as "may", "will", "expect", "estimate",
"anticipate", intends", "believe" or "continue" or the negative
thereof or similar variations. The actual results and performance
of the Company discussed herein could differ materially from those
expressed or implied by such statements. Such statements are
qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Important factors that could cause
actual results to differ materially from expectations include,
among other things, general economic and market factors,
competition, changes in government regulations and the factors
described under "Risk Factors" in the Management's Discussion and
Analysis and Filing Statement of the Company which are available at
www.sedar.com. The cautionary statements qualify all
forward-looking statements attributable to the Company and persons
acting on their behalf. Unless otherwise stated, all
forward-looking statements speak only as of the date of this press
release and the Company has no obligation to update such
statements. Neither TSX Venture Exchange nor its Regulation
Services Provider (as that term is defined in the policies of the
TSX Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release. Lakeside Steel was recognized as a TSX
Venture 50® company in 2010. TSX Venture 50 is a trade-mark of TSX
Inc. and is used under license. To view this news release in HTML
formatting, please use the following URL:
http://www.newswire.ca/en/releases/archive/February2011/14/c2595.html
table border="0"tr valign="top"td align="left"Ron Bedardbr/
President & Chief Operating Officerbr/ Lakeside Steel Inc.br/
(905) 735-7473 ext. 7294br/ Fax: (905) 735-8896br/ e-mail: a
href="mailto:ron.bedard@lakesidesteelcorp.ca"ron.bedard@lakesidesteelcorp.ca/a/td
td align="left" /td td align="left"Ken Hunterbr/ Chief
Financial Officerbr/ Lakeside Steel Inc.br/ (905) 735-7473 ext.
7218br/ Fax: (905) 735-9069br/ e-mail: a
href="mailto:ken.hunter@lakesidesteelcorp.ca"ken.hunter@lakesidesteelcorp.ca/a/td/tr/table
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