Algoma Steel announces results for the quarter ended March 31, 1997.SAULT STE. MARIE Sault Sainte Marie — pronounced "Soo Saint Marie" (IPA /su seɪnt məˈɹi/) — is the name of two cities on the Saint Marys River, which forms part of the boundary between the United States and Canada. , ONTARIO--(BUSINESS WIRE)--April 28, 1997--Algoma Steel Corp. (TSE See Tokyo Stock Exchange. TSE 1. See Tokyo Stock Exchange (TSE). 2. See Toronto Stock Exchange (TSE). ALG ALG antilymphocyte globulin. ALG antilymphocyte globulin. ALG Antilymphocyte globulin, see there ., NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on ALGSF.) -- Algoma Steel ''See also Algoma (Disambiguation) Algoma Steel Corporation (TSX: AGA) was founded in 1902 by Francis Clergue, an American entrepreneur who had settled in Sault Ste. Marie, Ontario. today announced its financial results for the quarter ended March 31, 1997 -0-
Financial Highlights
1996 1997
---------------------------------- ------
Q1 Q2 Q3 Q4 Q1
Sales (millions) $312.8 $306.4 $303.6 $305.1 $299.3
EBITDA(1) (millions) $35.2 $40.5 $46.9 $52.8 $43.7
Net income (millions) $9.5 $13.0 $17.8 $27.5(2) $16.3
Net income per share $0.21 $0.28 $0.39 $0.60 $0.33
Weighted average shares
outstanding
(millions) 45.84 45.84 45.84 45.84 48.64
Per Ton Shipped
---------------
Revenue $573 $572 $594 $599 $600
EBITDA(1) $64 $75 $92 $104 $88
Earnings before interest, taxes, depreciation and amortization.
Includes after-tax effect of round caster sale of $4.8 million or
$0.10 per share.
Steel Shipments (000's of net tons)
-----------------------------------
1996 1997
---------------------------------- ------
Q1 Q2 Q3 Q4 Q1
Sheet 335 322 318 319 301
Plate 106 119 119 91 113
Structurals 55 65 46 59 50
Tubulars 50 30 28 40 35
Total 546 536 511 509 499
Financial Net income in the first quarter was $16.3 million ($0.33 per share) which was higher than the first quarter of 1996 at $9.5 million ($0.21 per share) but lower than the fourth quarter of 1996 at $27.5 million ($0.60 per share). Fourth quarter results included a gain on the sale of the round caster which increased net income by $4.8 million or $.10 per share. Income from operations declined to $29.1 million from $39.3 million in the previous quarter but was up from $22.5 million in the first quarter of 1996. Revenue per ton increased slightly to $600 per ton versus $599 per ton in the fourth quarter with despite a $4.5 million decline in higher sheet prices partially offset by a decline in structural prices. The decline in earnings from the fourth quarter is due mainly to increased costs associated with high natural gas prices. Favourable year-end year-end also year·end n. The end of a year. adj. Occurring or done at the end of the year: a year-end audit. Noun 1. adjustments also increased earnings in the fourth quarter. Shipments declined to 499,000 tons compared to 509,000 tons in the fourth quarter. The high level of shipments in the first quarter of 1996 (546,000 tons) was due mainly to weather related delays which hindered shipments in the latter half of December December: see month. , 1995. First quarter production costs were negatively affected by high natural gas prices early in the quarter, lower productivity, and the higher operating costs operating costs npl → gastos mpl operacionales associated with winter operations. Production costs are expected to decline but the presence of some of these higher costs in inventories will affect second quarter results. Cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses before working capital declined to $39.2 million from $42.2 million in the fourth quarter. Pension funding declined to $8.8 million compared to $12.0 million in the previous quarter. An equity issue of 6 million common shares resulting in proceeds of $50 million was completed in February February: see month. . The total number of common shares outstanding is currently 51,840,000. Operations Raw steel production declined to 585,000 tons from 612,000 tons in the preceding quarter. Flat rolled shipments were limited by lower productivity on the hot mill which can be attributed mainly to training for the Direct Strip Production Complex (DSPC DSPC distearoylphosphatidylcholine DSPC Direct Shell Production Casting DSPC Direct Strip Production Complex DSPC Director Strategic Planning Coordination DSPC Digital Studio Picture Control ). Recent performance has improved which should support higher shipments in the second quarter. Tubular tubular /tu·bu·lar/ (too´bu-lar) 1. shaped like a tube. 2. of or pertaining to a tubule. tubular 1. pertaining to renal tubules. 2. pertaining to fallopian tube. shipments, which are traditionally strong in the first quarter, declined by 5,000 tons from the previous quarter due largely to an ongoing labour disruption disruption /dis·rup·tion/ (dis-rup´shun) a morphologic defect resulting from the extrinsic breakdown of, or interference with, a developmental process. at a major customer. Capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. was $63.4 million in the first quarter versus $60.2 million in the fourth quarter of 1996. Spending on the DSPC totalled $56.1 million including $9.2 million of capitalized interest Capitalized interest Interest that is not immediately expensed, but rather is considered as an asset and is then amortized through the income statement over time. In the context of project financing, interest that is paid by additional borrowing. . Direct Strip Production Complex (DSPC) Construction activity on the DSPC continues at a very high level with more than 700 construction workers currently on the site. Virtually all of the equipment has been delivered and installed. The last major piece of equipment to be delivered is the turret for the caster which is scheduled to be delivered and installed by mid-May n. 1. the middle part of May. Noun 1. mid-May - the middle part of May period, period of time, time period - an amount of time; "a time period of 30 years"; "hastened the period of time of his recovery"; "Picasso's blue period" . Most of the activity is focused on mechanical, electrical and piping installation currently underway in all areas of the complex. Production of the first coil on a fully automated au·to·mate v. au·to·mat·ed, au·to·mat·ing, au·to·mates v.tr. 1. To convert to automatic operation: automate a factory. 2. basis is targeted for September September: see month. , 1997. Operator and maintenance training is accelerating as the start-up Start-up The earliest stage of a new business venture. date approaches. Training expense for the DSPC reached $1 million in the first quarter. Trade The final dumping dumping, selling goods at less than the normal price, usually as exports in international trade. It may be done by a producer, a group of producers, or a nation. margin resulting from the second administrative review on CTL See control key. 1. CTL - Checkout Test language. 2. CTL - Compiler Target Language. 3. CTL - Computational Tree Logic plate covering sales to the U.S. from August 1994 to July July: see month. 1995 was 0.37 percent. This margin eliminates the requirement for anti-dumping duty deposits on future U.S. shipments. A third administrative review covering sales from August 1995 to July 1996 is underway. Based on a complaint by a Canadian Canadian (kənā`dēən), river, 906 mi (1,458 km) long, rising in NE New Mexico. and flowing E across N Texas and central Oklahoma into the Arkansas River in E Oklahoma. producer, Revenue Canada Canada (kăn`ədə), independent nation (2001 pop. 30,007,094), 3,851,787 sq mi (9,976,128 sq km), N North America. Canada occupies all of North America N of the United States (and E of Alaska) except for Greenland and the French islands of has initiated an investigation into the alleged dumping into Canada of plate exported from Mexico Mexico, city, Mexico Mexico or Mexico City, Span. Ciudad de México (Méjico), city (1990 pop. 8,236,960; 1991 met. area est. 20,899,000), central Mexico, capital and largest city of Mexico. , China, Poland Poland, Pol. Polska, officially Republic of Poland, republic (2005 est. pop. 38,635,000), 120,725 sq mi (312,677 sq km), central Europe. It borders on Germany in the west, on the Baltic Sea and the Kaliningrad region of Russia in the north, on Lithuania, , South Africa South Africa, Afrikaans Suid-Afrika, officially Republic of South Africa, republic (2005 est. pop. 44,344,000), 471,442 sq mi (1,221,037 sq km), S Africa. and the Russian Federation Russian Federation: see Russia. . A preliminary determination as to whether dumping has occurred is expected in the second quarter. The final dumping and injury determinations are expected by year-end. The Company continues to be concerned with low priced imports of wide flange flange (flanj) a projecting border or edge; in dentistry, that part of the denture base which extends from around the embedded teeth to the border of the denture. flange n. 1. beams into Canada. Outlook The market for sheet products remains relatively strong due to continued growth in the North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. economy and particularly automobile production. Demand for plate and structurals has improved recently. Strong markets for certain seamless tube products should result in some improvement in selling prices in the second half of 1997. -0- A. ADAM Adam, the first man, in the Bible Adam (ăd`əm), [Heb.,=man], in the Bible, the first man. In the Book of Genesis, God creates humankind in his image as a species of male and female, giving them dominion over other life. PRESIDENT AND CHIEF EXECUTIVE OFFICER H. EARL JOUDRIE CHAIRMAN OF THE BOARD -0-
Algoma Steel Inc. 1997 First Quarter Report
-------------------------------------------
Unaudited - Expressed in Canadian dollars
Consolidated statements of income
and retained earnings
Three months ended
March 31
1997 1996
(millions of dollars) (note 1)
Sales $299.3 $312.8
--------------------
Cost of sales 245.9 268.5
Administrative and selling
expense 9.7 9.0
Depreciation and
amortization 14.6 12.8
--------------------
270.2 290.3
--------------------
Income from operations 29.1 22.5
Net financial expense 6.7 10.2
--------------------
Income before income taxes 22.4 12.3
--------------------
Provision for income taxes
- current 3.3 4.0
- deferred 2.8 (1.2)
--------------------
6.1 2.8
--------------------
Net income $16.3 $9.5
--------------------
Net income per common share $0.33 $0.21
--------------------
Weighted average common shares
outstanding - millions (note2) 48.64 45.84
--------------------
Retained earnings
Balance, beginning of period $237.7 $169.9
Net income 16.3 9.5
--------------------
Balance, end of period $254.0 $179.4
--------------------
Operations
Three months ended
March 31
(thousands of net tons) 1997 1996
Raw steel production 585 572
--------------------
Steel shipments 499 546
--------------------
Consolidated statements of financial position
As at March 31
1997 1996
(millions of dollars) (note1)
Current assets
Cash $28.8 $8.3
Accounts receivable 171.0 180.8
Inventories 354.9 320.1
Prepaid expenses 5.6 4.7
--------------------
560.3 513.9
--------------------
Other assets
Deposits in escrow 45.4 118.7
Fixed assets, net 715.4 480.5
Unamortized blast furnace lining 48.3 66.0
Deferred charges 29.0 23.2
--------------------
838.1 688.4
--------------------
Total assets 1,398.4 1,202.3
--------------------
Current liabilities
Bank indebtedness - 24.4
Accounts payable and accrued liabilities 158.5 145.1
Construction holdbacks/payables-DSPC 14.8 6.6
Contingent value rights - 24.5
Income and other taxes payable 27.7 12.8
Current portion of long-term debt 3.3 3.2
--------------------
204.3 216.6
--------------------
Other liabilities
Long-term debt 452.1 387.0
Accrual for pensions and other post-
employment benefits 343.2 337.6
Deferred income taxes 37.9 26.9
Other long-term liabilities 6.5 5.2
--------------------
839.7 756.7
--------------------
Shareholders' equity
Common shares 181.5 130.7
Shareholders' deficiency on restructuring (81.1) (81.1)
Retained earnings 254.0 179.4
--------------------
354.4 229.0
--------------------
Total liabilities and shareholders'
equity $1,398.4 $1,202.3
--------------------
Consolidated statements of cash flow
Three months ended
March 31
1997 1996
(millions of dollars) (note 1)
Cash provided by (used in)
Operating activities
Cash from operations (x)(x) $39.2 $30.1
Increase in operating working capital (12.2) (26.8)
--------------------
27.0 3.3
--------------------
Investing activities
Net additions to fixed assets
- Direct strip production complex (46.9) (55.9)
- Capitalized interest on DSPC (9.2) (3.0)
- Other (7.3) (14.1)
Deposits in escrow 12.5 57.7
--------------------
(50.9) (15.3)
--------------------
Financing activities
Repayment of long-term debt (0.8) (0.7)
Proceeds from common share issue 50.4 -
Increase in bank indebtedness - 1.8
--------------------
49.6 1.1
--------------------
Cash
Increase (decrease) during period 25.7 (10.9)
Balance, beginning of period 3.1 19.2
--------------------
Balance, end of period $28.8 $8.3
--------------------
(x)(x) Cash from operations per common
share $0.81 $0.66
--------------------
Note 1. Certain comparative figures have been reclassified to
conform to the presentation adopted in the current period.
Note 2. During the first quarter of 1997, 6.0 million common
shares were issued resulting in 51.8 million shares outstanding at
March 31, 1997.
CONTACT: Algoma Steel Corporation Alexander Adam Alexander Adam (June 24, 1741 – December 18, 1809) was a Scottish teacher and writer on Roman antiquities. He was born near Forres, in Morayshire. From his earliest years he showed uncommon diligence and perseverance in classical studies, notwithstanding many , 705/945-2700 705/945-2203 (FAX) or Algoma Steel Corporation Glen Manchester Manchester, city, England Manchester (măn`chəstər, –chĕs'tər), city and metropolitan district (1991 pop. 397,400), NW England, on the Irwell, Medlock, Irk, and Tib rivers. , 705/945-2400 705/945-2412 (FAX) |
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