Lakeside Announces Fiscal 2012 Third Quarter Results
February 27 2012 - 1:11AM
PR Newswire (Canada)
WELLAND, ON, Feb. 27, 2012 /CNW/ - Lakeside Steel Inc. ("Lakeside"
or the "Company") today reported its financial results for its
fiscal 2012 third quarter ended December 31, 2011 ("Q3 2012"). For
Q3 2012, the Company's revenue was $58,085,702, which represents an
increase of $4,265,455 or 7.9% from revenue of $53,820,247 for the
fiscal 2011 third quarter ended December 31, 2010 ("Q3 2011"). For
the nine months ended December 31, 2011 ("YTD 2012"), the Company's
revenue was $158,884,734, which represents a decrease of
$23,624,237 or 12.9% from revenue of $182,508,971 for the nine
months ended December 31, 2010 ("YTD 2011"). The Company recorded a
net loss of $9,160,125 during Q3 2012, a decrease of $8,958,786
from a net loss of $201,339 for Q3 2011. The Company reported a
loss of $0.05 per share for Q3 2012, compared to a net loss of
$0.00 per share for Q3 2011. For YTD 2012, the Company had a net
loss of $17,854,604, a decrease of $18,045,174 from net income of
$190,570 for YTD 2011. The Company reported a loss of $0.10 per
share for YTD 2012, compared to earnings of $0.00 per share for YTD
2011. The Company's adjusted EBITDA was ($7,680,696) in Q3 2012, a
decrease of $9,628,361 from adjusted EBITDA of $1,947,665 for Q3
2011. For YTD 2012, the Company's adjusted EBITDA was
($13,970,825), which represents a decrease of $20,122,845 from
adjusted EBITDA of $6,152,020 for YTD 2011. During fiscal 2012,
customer demand for oil country tubular goods ("OCTG") shifted from
plain end pipe to thermally treated end finished products.
This shift resulted in customer demand that substantially exceeded
available capacity among third party thermal treatment and
end-finishing processors, leading to extended wait times. In
Alabama, the Company's new casing mill, with an estimated capacity
of 192,000 annual tons, began production in December 2011. The
thermal treatment and end finishing facility, with an estimated
capacity of 67,000 annual tons of thermal treatment and 55,000
annual tons of end finishing capacity for tubing products, was
completed in January 2012. The thermal treatment and end
finishing facility for casing products, with an estimated capacity
of 150,000 annual tons of thermal treatment and 110,000 annual tons
of end finishing for casing products, will be completed in June
2012. On January 25, 2012, the Company and JMC Steel Group, Inc.
("JMC Steel") announced that they had entered into a definitive
arrangement agreement pursuant to which JMC Steel, through a
wholly-owned subsidiary, has agreed to acquire all of the issued
and outstanding common shares of Lakeside at a price of $0.2983 per
share in cash pursuant to a statutory plan of arrangement under the
Business Corporations Act (Ontario). Further information about the
proposed transaction will be provided in a management information
circular to be sent to shareholders in connection with a special
meeting of shareholders for the purpose of considering the
transaction. Information about the meeting will follow at such time
as it becomes available. About Lakeside Steel Inc. Lakeside 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 has operating facilities located
in Welland, Ontario, and Corpus Christi, Texas, and three
facilities currently being constructed in Thomasville, Alabama.
Lakeside 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
Alabama will be a diversified steel pipe manufacturer with thermal
treatment and end-finishing 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 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. Lakeside Steel Inc. CONTACT:
Ron Bedard President and Chief Operating OfficerLakeside Steel
Inc.FAX: (905)735-9069e-mail: ron.bedard@lakesidesteelcorp.caKen
Hunter Chief Financial OfficerLakeside Steel IncFAX:
(905)735-9069e-mail: ken.hunter@lakesidesteelcorp.ca
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