Lakeside Steel Announces Fiscal 2011 Year End Results and Issues Stock Options
June 13 2011 - 7:00AM
PR Newswire (Canada)
WELLAND, ON, June 13, 2011 /CNW/ -- WELLAND, ON, June 13, 2011
/CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the
"Company") today reported its financial results for its fiscal year
ended March 31, 2011 ("FY 2011"). For FY 2011 the Company's revenue
was $240,304,770, which is an increase of $135,866,937 or 130%
compared to revenue of $104,437,833 for the fiscal year ended March
31, 2010. For FY 2011, the Company achieved record setting
performances in both revenue and tons produced. The Company's
adjusted EBITDA was $8,264,707 in FY 2011, an increase of
$23,425,443 from adjusted EBITDA of ($15,160,736) for the prior
fiscal year. For FY 2011, the Company's net income was $3,344,501,
an increase of $17,296,527 compared to a net loss of $13,952,026
for the year ended March 31, 2010. The Company had earnings per
share of $0.03 in FY 2011 compared to a loss per share of $0.23 for
the fiscal year ended March 31, 2010. The Company's revenue for the
three months ended March 31, 2011, was $57,795,799, an improvement
of $14,209,806 or 32% from the three months ended March 31, 2010,
and an improvement of $3,975,552 or 7% from the three months ended
December 31, 2010. The Company's adjusted EBITDA was $1,759,029 for
the three months ended March 31, 2011, an increase of $3,551,786
from adjusted EBITDA of ($1,792,757) for the three months ended
March 31, 2010. The Company's net income for the three months ended
March 31, 2011, was $1,301,421, an increase of $5,486,668 from a
net loss of $4,185,247 for the three months ended March 31, 2010,
and an increase of $1,085,594 compared to the previous quarter
ended December 31, 2010. Ron Bedard, President and COO, commented:
"The Company is pleased with the turnaround at our Welland, Ontario
operations. Despite steel price volatility and a challenging
market, the Company was able to remain profitable and grow its
operation. The Company's employees continue to demonstrate a strong
commitment to improving the performance of the business. During the
year ended March 31, 2011, the Company also completed the $6.9
million remediation of the onsite PCB storage facility in Welland,
as well as extensive upgrades to the Welland end finishing
facilities. Our stated goal is to structure Welland to be
consistently profitable for long-term viability. The Company's
construction of three new facilities in the U.S. is continuing on
schedule and on budget. Once completed, the Company will have some
of the most modern production facilities in North America capable
of producing top quality OCTG and line pipe products." The Company
also announced that, subject to receipt of required regulatory
approvals, it granted stock options under its 10 per cent rolling
Stock Option Plan to certain directors, officers and employees of
the Company and its subsidiaries to purchase in the aggregate up to
1,700,000 common shares (the "Stock Options") in the capital of the
Company. The exercise price of the Stock Options is $0.52 per
share. The Stock Options expire June 12, 2021. Ten percent of the
Stock Options vest immediately with the balance vesting as to
fifteen percent every six months thereafter, subject to the terms
and conditions of the Company's Stock Option Plan. About Lakeside
Steel Inc. Lakeside Steel is a 2011 TSX Venture Exchange 50 company
and the parent company of Lakeside Steel Corporation, Lakeside
Steel Alabama Inc. and Lakeside Steel Texas Inc. Lakeside Steel has
operating facilities located in Welland, Ontario, and Corpus
Christi, Texas, and three facilities currently being constructed in
Thomasville, Alabama. Lakeside Steel is a diversified steel pipe
and tubing manufacturer with a focus on manufacturing and upgrading
Oil Country Tubular Goods. Lakeside Steel's list of customers
includes large oil and gas end users as well as distributors across
North America. Lakeside Steel Alabama will be a diversified steel
pipe manufacturer with end-finishing and heat treat capabilities
strategically situated in the southern United States on successful
completion of construction of the new facilities in Thomasville,
Alabama. Construction of the Alabama facilities 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, Annual Information Form 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 and 2011. 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/June2011/13/c5202.html
table tr valign="top" td align="left" bRon Bedard /bbr/
President and Chief Operating
Officer br/
Lakeside Steel Inc.br/ FAX: (905)735-9069br/ e-mail: a
href="mailto:ron.bedard@lakesidesteelcorp.ca"ron.bedard@lakesidesteelcorp.ca/a
/td td align="left" valign="top" bKen Hunter /bbr/ Chief
Financial Officerbr/ Lakeside Steel Incbr/ FAX:
(905)735-9069br/ e-mail: a
href="mailto:ken.hunter@lakesidesteelcorp.ca"ken.hunter@lakesidesteelcorp.ca/a
/td /tr /table p /p
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