EMJ Reports Fiscal 2002 Results and Announces Amended and Extended Credit Facility.Business Editors BREA, Calif.--(BUSINESS WIRE)--May 1, 2002 The Earle M. Jorgensen Co. ("EMJ EMJ Emergency Medicine Journal ") today reported results for the company's fourth quarter and fiscal year ended March 31, 2002, and announced that it had amended and extended its revolving credit Revolving Credit A line of credit where the customer pays a commitment fee and is then allowed to use the funds when they are needed. It is usually used for operating purposes, fluctuating each month depending on the customers current cash flow needs. facility. Revenues were $224.6 million and operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. was $11.8 million for the fourth quarter of fiscal 2002, compared with $270.9 million and $11.7 million, respectively, for the same period in fiscal 2001. Net income for fourth quarter of fiscal 2002 was $1.0 million versus $1.1 million for the same period in fiscal 2001. Results for the fourth quarter of fiscal 2001 included non-recurring charges totaling $5.3 million, primarily related to an organizational restructuring. For fiscal 2002, revenues were $895.1 million and operating income was $50.3 million, compared with $1,059.7 million and $63.9 million, respectively, for the same period in fiscal 2001. Net income was $5.4 million versus $17.8 million in fiscal 2001. The fiscal 2002 results included an excise tax Excise Tax 1. An indirect tax charged on the sale of a particular good. 2. A penalty tax applied to ineligible transactions in retirement accounts. This penalty is assessed by and paid to the IRS. Notes: 1. of $1.9 million paid in connection with an IRS An abbreviation for the Internal Revenue Service, a federal agency charged with the responsibility of administering and enforcing internal revenue laws. settlement and other non-recurring charges totaling $1.9 million. In April 2002, the company amended and extended its revolving credit facility which allows maximum borrowings of $200 million. The amended and extended revolving credit facility matures in April 2006 and contains covenants and conditions similar to those in the previously existing revolving credit facility. At March 31, 2002, the company had long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. of $292.9 million and during fiscal 2002, the company spent $24.5 million in capital expenditures, including $19.6 million for the expansion and automation of its Chicago facility. Maurice S Maurice, Byzantine emperor Maurice (môr`ĭs), c.539–602, Byzantine emperor (582–602). He was a successful general when, on his deathbed, Tiberius II, his father-in-law and the successor of Justin II, proclaimed him . Nelson, Jr., EMJ's president and chief executive officer stated: "Fiscal 2002 was an extremely difficult year due to a business environment where metals pricing and demand for metal products, in general, reached historically low levels. Our tonnage TONNAGE, mar. law. The capacity of a ship or vessel. 2. The act of congress of March 2, 1799, s. 64, 1 Story's L. U. S. 630, directs that to ascertain the tonnage of any ship or vessel, the surveyor, &c. shipped in fiscal 2002 declined 14% and average prices decreased 2%, when compared to fiscal 2001 data. Our gross margins, however, increased during fiscal 2002, when compared to the fiscal 2001 period, due in part to our efforts in improving the procurement The fancy word for "purchasing." The procurement department within an organization manages all the major purchases. and management of inventories and in marketing our core products and services." "Our operating margin Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: was 5.6% in fiscal 2002, which is considered very good in the industry particularly after taking into account the poor economic environment. Such performance was achieved as we continued to find ways to align our cost structures with the prevailing levels of business and improve productivity, while continuing to provide customer service that we believe is unequaled in the industry." Nelson concluded his remarks by stating: "We are hopeful of an economic recovery in fiscal 2003 and we believe we are positioned to outperform Outperform An analyst recommendation meaning a stock is expected to do slightly better than the market return. Notes: Exact definitions vary by brokerage, but in general this rating is better than neutral and worse than buy or strong buy. the industry as such recovery occurs or as general economic conditions improve. Our ability to finance our working capital needs over a long-term growth cycle was facilitated by the amendment and extension of our revolving credit facility just completed." EMJ, with headquarters in Brea, is one of the largest independent distributors of metal products in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. with 35 service and processing centers. EMJ inventories more than 25,000 different bar, tubing, plate, and various other metal products, specializing in cold finished carbon and alloy bars, mechanical tubing, stainless bars and shapes, aluminum bars, shapes and tubes, and hot-rolled carbon and alloy bars. This release may contain 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. relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc future events or financial results. Actual events or results may differ materially subject to risks, uncertainties and other factors over which the company has no control. These factors and additional information are included in the company's reports on file with the Securities and Exchange Commission.
The Earle M. Jorgensen Co.
Financial Highlights (Unaudited)
(in $000's)
Fourth Quarter Twelve Months
Ended March Ended March
2002 2001 2002 2001
Revenues $224,591 $270,923 $895,058 $1,059,681
Gross Profit 61,948 72,745 253,067 292,418
Warehouse and delivery
expense 30,245 34,495 124,457 136,752
Selling expense 7,946 8,891 31,932 36,391
General and administrative
expense 11,723 12,327 44,544 50,079
Restructuring and other
non-recurring charges 250 5,320 1,861 5,320
Operating expenses 50,164 61,033 202,794 228,542
Operating income 11,784 11,712 50,273 63,876
Net interest expense 10,767 10,473 42,545 44,855
Income before income taxes 1,017 1,239 5,809(a) 19,021
Net income 972 1,071 5,354 17,798
EBITDA(b) 16,855 20,855 64,422 81,129
(a) This amount is after a non-operating expense of $1.9 million for
excise tax paid under an IRS settlement.
(b) "EBITDA" represents income from operations before net interest
expense, taxes, depreciation, amortization, LIFO adjustments,
non-recurring items and certain other non-cash expenses, including
accruals for postretirement benefits.
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