Bayou Steel Corporation Reports Fiscal 2004 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 year ending September 30, 2004.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 prior periods of the predecessor company (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 for the period from February 18, 2004 through September 30, 2004, totaling $13.8 million or $6.86 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. The Predecessor Company reported $16.0 million in income, including $19.5 million in net reorganization adjustments, from October 1, 2003 through February 17, 2004. For fiscal 2004, the Company reported net income of $29.8 million. For fiscal 2003, the Predecessor Company reported a loss of $34.5 million. Sales for fiscal 2004 were $240.8 million on shipments of 546,378 tons. This was sharply higher than the $150.3 million in sales on shipments of 497,868 tons for fiscal 2003. The average selling price The average sales price of goods or commodities. Especially used in the retail sector and technology distribution. increased from $298 per ton to $437 per ton or 47% compared to fiscal 2003. In the fourth quarter ending September 30, 2004, the average selling price was $531 per ton. 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 because of strong demand for the Company's products. 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 have surged in fiscal year 2004 as compared to the prior year. 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, 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. Though the industry pricing trend is unclear, overall market demand for our products is still favorable." 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. We expect that production and efficiencies after our start-up Start-up The earliest stage of a new business venture. will increase 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>. these current great market conditions. All of this encourages us going forward." Mr. Pitts concluded, "We are grateful to the many constituencies that continued to support us, especially when conditions were not so positive. We extend our sincere thanks to our employees, customers, vendors, local governmental bodies and communities who have faithfully stood with us." 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
(Audited)
Successor
Company Predecessor Company
---------------- ---------------------------
INCOME STATEMENT: Period from Period from
Feb. 18, 2004 Oct. 1, 2003
through through Fiscal
Sept. 30, 2004 Feb. 17, 2004 2003
---------------- ------------- -------------
Net Sales $158,866,455 $81,909,905 $150,264,840
Depreciation 23,455 3,395,408 8,467,174
Reorganization Expense -- 1,688,540 5,220,320
Gross Margin 28,729,597 1,274,419 (9,927,834)
Operating Income (Loss) 24,177,385 (3,180,467) (30,397,567)
Interest and Other
Expense on Debt 2,213,235 378,141 4,442,925
Gain on Reorganization
and Fresh-Start
Adjustments, Net -- 19,499,698 --
Income (Loss) before
Taxes 22,707,800 16,044,079 (34,512,920)
Net Income (Loss) 13,845,127 16,044,079 (34,512,920)
Net Income (Loss) per
Share - Basic 6.92 1.24 (2.68)
Net Income (Loss) per
Share - Diluted 6.86 1.24 (2.68)
EBITDA (1) 24,200,840 214,941 (13,930,393)
Successor
Company
------------
BALANCE SHEET: Sept. 30,
2004
------------
Working Capital $50,778,906
Notes Due 2011 30,000,000
Credit Facility 10,831,501
Other Post Reorganization
Obligations 1,416,759
Stockholders' Equity 22,926,719
(1) The Company defines EBITDA as Operating Income plus Depreciation.
Includes Reorganization Expenses in all periods presented. In
fiscal 2003, EBITDA excludes an $8,000,000 provision for
impairment loss on long-lived assets.
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