Bayou Steel Corporation Reports First Quarter Fiscal 2005 Results.LAPLACE, La. -- Bayou bayou (bī`ō, bī`  ) [Louisiana Fr.; from Choctaw bayuk=small stream], term used mainly in U.S. Steel Corporation today reported its
financial results for the first quarter (ending December 31, 2004) of
fiscal 2005.Bayou Steel emerged from bankruptcy bankruptcy, in law, settlement of the liabilities of a person or organization wholly or partially unable to meet financial obligations. The purposes are to distribute, through a court-appointed receiver, the bankrupt's assets equitably among creditors and, in most pursuant to a plan of reorganization that became effective on February 18, 2004. For accounting purposes, financial statements for periods after February 18, 2004, related to the Company that emerged from bankruptcy (the "Company"), are not directly comparable to periods prior to February 18, 2004 (the "Predecessor Company"). Among other changes, there have been substantial reductions in debt and revaluations of assets and other liabilities other liabilities Small and relatively insignificant liabilities. For financial reporting purposes, firms often combine small liabilities into this single category rather than listing each liability separately. . The Company reported net income of $4.2 million or $2.01 per fully diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share for the first quarter of fiscal 2005. The Predecessor Company reported a net loss of $0.6 million or $0.04 per fully diluted share. Sales for the first quarter of fiscal 2005 were $63.1 million on shipments of 113,080 tons. This was sharply higher than the $51.7 million in sales on shipments of 151,184 tons for the prior comparable quarter for fiscal 2004. The average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. for the quarter increased from $339 per ton to $552 per ton or 63% compared to the prior year comparable quarter. The selling price increase has generally been related to the sharply escalating prices for scrap and the increasing prices for alloys This is a list of alloys for which an article exists in Wikipedia (or is proposed but not yet written). They are grouped by base metal, in order of increasing atomic number. Within these headings they are in no particular order. and fuel, which the Company has been successful in passing through to its customers. Jerry M. Pitts, President and CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. of the Company, commented, "Earnings in the first quarter of fiscal year 2005 have increased significantly as compared to the prior year quarter. Despite a decline in shipments, the strong selling prices contributed to the growth of sales and earnings. This favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. turnaround Turnaround A situation where a company that has had poor performance for an extended period of time experiences a positive reversal. Notes: A speculator may profit from a turnaround if he or she accurately anticipates the improvement of a poorly performing company. is largely the result of increased demand for our products, particularly in 2004, which allowed us to raise our product prices at a higher rate than the unprecedented increases in the cost of scrap. Although Bayou Steel experienced significant increases in the cost of other major commodity items, including electricity, natural gas, and alloys, our margins have significantly improved as our increased product pricing has outpaced that of scrap and other cost related items. Given the challenges of the last four years in the steel industry, it is especially pleasing to see a healthy market." Mr. Pitts continued, "In December, we underwent a much needed shutdown shut·down n. A cessation of operations or activity, as at a factory. shutdown Noun the closing of a factory, shop, or other business Verb shut down in the plants to conduct equipment maintenance that was partially deferred due to limited funds during the Company's bankruptcy. Since the start-up, our production and efficiencies have increased in both our Louisiana and Tennessee plants. This will enable us to better capitalize on Cap´i`tal`ize on` v. t. 1. To turn (an opportunity) to one's advantage; to take advantage of (a situation); to profit from; as, to capitalize on an opponent's mistakes s>. current great market conditions. In December, we opened a remote scrap processing location. After a ramp-up period, we expect this facility to provide the Louisiana plant with additional scrap metal. Lastly, we increased Tennessee's capacity utilization Capacity Utilization measures the rate at which a firm makes use of their capital productive capacities, such as factories and machinery. Capacity Utilization generally rises when the economy is healthy and falls when demand softens. by 15% as we were able to purchase billets economically in the fall. Besides these positive actions, our market fundamentals remain healthy. We expect continued healthy price levels and volumes for our products. All of this encourages us going forward." Bayou Steel invites you to visit its web site, www.bayousteel.com, to view its fiscal 2004 Annual Report. This release contains various "forward-looking" statements which represent the Company's expectations or beliefs concerning future events. The Company cautions that a number of important factors could, individually or in the aggregate, cause actual results to differ materially from those included in the forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. . Any forward looking statements contained in this document speak only as of the date hereof here·of adv. Of this. hereof Adverb Formal or law of or concerning this Adv. 1. hereof - of or concerning this; "the twigs hereof are physic" , and the Company disclaims any intent or obligation to update such forward looking statements. Bayou Steel Corporation manufacturers light structural and merchant bar products in LaPlace, Louisiana LaPlace is a unincorporated community in the Greater New Orleans metropolitan area and a census-designated place in St. John the Baptist Parish, Louisiana, on the East Bank of the Mississippi River. [1] [2] The population was 27,684 at the 2000 census. and Harriman, Tennessee. The Company also operates three stocking locations along the inland waterway waterway, natural or artificial navigable inland body of water, or system of interconnected bodies of water, used for transportation, may include a lake, river, canal, or any combination of these. system near Pittsburgh, Chicago, and Tulsa.
BAYOU STEEL CORPORATION
FINANCIAL HIGHLIGHTS
(Unaudited)
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Successor Predecessor
Company Company
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Quarter Quarter
Ending Ending
December 31, December 31,
INCOME STATEMENT: 2004 2003
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Net Sales $63,117,361 $51,693,892
Depreciation 193,888 2,157,569
Reorganization Expense 921,771
Gross Profit 9,400,279 2,277,685
Operating Income (Loss) 7,489,243 (425,996)
Interest and Other Expense on Debt 918,000 243,314
Income (Loss) before Taxes 6,856,435 (554,863)
Net Income (Loss) 4,182,426 (554,863)
Net Income (Loss) per Share - Basic 2.09 (0.04)
Net Income (Loss) per Share - Diluted 2.01 (0.04)
EBITDA (1) 7,683,131 1,731,573
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Successor
Company
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December 31,
2004
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Working Capital $53,228,652
Notes Due 2011 30,000,000
Credit Facility 14,640,933
Post-Reorganization Obligations 1,013,941
Stockholders' Equity $27,672,929
(1) The Company defines EBITDA as Operating Income plus Depreciation.
Includes Reorganization Expenses in all periods presented.
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