EMJ Reports Strong Second Quarter Fiscal 2005 Results.LYNWOOD Lynwood, city (1990 pop. 61,945), Los Angeles co., S Calif., a suburb of Los Angeles; founded 1896, inc. 1921. Although it is primarily residential, Lynwood has printing presses and varied light manufacturing, including transortation equipment, furniture, and metal products. , Calif. -- Earle For use of this word as a surname, see .
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Revenues increased 68.4% to $389.3 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. increased 240.7% to $47.7 million for the second quarter of fiscal 2005, when compared to $231.2 million and $14.0 million, respectively, for the same period in fiscal 2004. The Company's 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 increased approximately 28.2% from the prior year quarter. Net income for the second quarter of fiscal 2005 was $26.7 million versus $1.3 million for the same period in fiscal 2004. The fiscal 2005 second quarter financial results include a charge to inventory to record results on a last in first out basis (LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack ) of $13.0 million. For the first six months of fiscal 2005 revenues increased 59.9% to $750.9 million when compared to $469.5 million for the same period in fiscal 2004. Operating income increased 189.4% to $87.4 million for fiscal 2005 compared to $30.2 million in the same period in fiscal 2004. Tonnage shipped for the first six months of fiscal 2005 increased by approximately 27.9% from the same period in fiscal 2004. Net income for the six months ended September 29, 2004 was $48.6 million compared to $4.0 million for the same period in fiscal 2004. The fiscal 2005 year-to-date Year-to-date (YTD) The period beginning at the start of the calendar year up to the current date. financial results include a LIFO charge of $24.4 million. 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, "We are very pleased with our strong second quarter results, which followed an exceptional first quarter. We continue to experience price increases from our raw material suppliers and have managed to adjust our prices as these increases occur. Gross margins for the second quarter fiscal 2005 were 28.4%, compared to 27.8% for the second quarter of fiscal 2004 and 29.2% in the first quarter of fiscal 2005. Our net margin of 6.9% for the quarter and 6.5% for the first six months are the best in the company's history and demonstrate that the company has both grown its revenues and effectively managed its expenses during the industry rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective . "The growth we experienced in the second quarter is unusual in that historically the second quarter is seasonally slow due to customers' summer shut downs. "During the quarter we completed the relocation RELOCATION, Scotch law, contracts. To let again to renew a lease, is called a relocation. 2. When a tenant holds over after the expiration of his lease, with the consent of his landlord, this will amount to a relocation. to a replacement facility in Houston, Texas “Houston” redirects here. For other uses, see Houston (disambiguation). Houston (pronounced /'hjuːstən/) is the largest city in the state of Texas and the . Additionally, the new branch in Birmingham, Alabama Birmingham (pronounced [ˈbɝmɪŋˌhæm]) is the largest city in the U.S. state of Alabama and is the county seat of Jefferson County. and the satellite facility in North Bay, Ontario North Bay (, time zone EST) is a city in Northeastern Ontario, Canada (2006 population 53,966). North Bay takes its name from its position on the shore of Lake Nipissing, and covers an area of 314.92 km² (121. became operational during the quarter, along with the expansion of our Wrightsville, Pennsylvania Wrightsville is a borough in York County, Pennsylvania, United States. The population was 2,223 at the 2000 census. Wrightsville borough has a police department and also a 100% Volunteer Fire Department. facility." EMJ is one of the largest 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 36 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 alloy (ăl`oi, əloi`) [O. Fr.,=combine], substance with metallic properties that consists of a metal fused with one or more metals or nonmetals. bars, mechanical tubing, stainless bars and shapes, aluminum bars, shapes and tubes, and hot-rolled carbon and alloy bars. The Company has scheduled a conference call with industry analysts and other interested persons to discuss its second quarter results. The call will take place on November November: see month. 1, 2004 at 8:00 a.m. (Pacific). The dial-in phone number for those interested in participating on the call is 877-284-5014. This press release can also be found on the Company's Internet Internet Publicly accessible computer network connecting many smaller networks from around the world. It grew out of a U.S. Defense Department program called ARPANET (Advanced Research Projects Agency Network), established in 1969 with connections between computers at the website at www.emjmetals.com/emjonline/pr.asp. Any 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. , as defined by the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and of 1995, contained in this press release are subject to risks, uncertainties and other factors over which we have no control, such as the cyclicality of the metals industry and the industries that purchase our products, fluctuations in metals prices, risks associated with the implementation of new technology, general economic conditions, competition in the metals service center industry and our "on-time or free" delivery guarantee. Actual events or results may differ materially from expectations due to these risks, uncertainties and other factors. These factors and additional information are included in the Company's filings with the Securities and Exchange Commission. In particular, we refer you to the "Risk Factors" section in our Registration Statement on Form S-1 filed on October 1, 2004.
Earle M. Jorgensen Company
Financial Highlights
(in $000's)
(unaudited)
Three Months Ended: Six Months Ended:
September September September September
29, 2004 29, 2003 29, 2004 29, 2003
-------------------- -------------------
Statement of Operations
and Other Data:
Revenues $389,271 $231,216 $750,906 $469,516
Gross Profit 110,543 64,240 216,103 131,102
Warehouse and delivery
expense 38,015 32,302 76,088 64,826
Selling expense 11,920 8,215 25,310 16,632
General and administrative
expense 12,915 9,732 27,346 19,412
-------------------- -------------------
Operating expenses 62,850 50,249 128,744 100,870
-------------------- -------------------
Operating income 47,693 13,991 87,359 30,232
Net interest expense 13,321 12,583 26,433 25,210
Income before income taxes 34,372 1,408 60,926 5,022
Net income 26,690 1,250 48,647 4,045
Capital expenditures 7,489 2,394 14,668 4,293
EBITDA (a) 50,579 16,836 93,096 35,877
Reconciliation of EBITDA:
Net income $26,690 $1,250 $48,647 $4,045
Depreciation and
amortization 2,886 2,845 5,737 5,645
Net interest expense 13,321 12,583 26,433 25,210
Provision for income taxes 7,682 158 12,279 977
-------------------- -------------------
EBITDA $50,579 $16,836 $93,096 $35,877
==================== ===================
(a) "EBITDA" represents net income before net interest expense,
provision for income taxes and depreciation and amortization.
Consistent with Item 10(e) of Regulation S-K, our EBITDA has not
been adjusted to exclude any other non-cash charges (credits) or
liabilities, such as LIFO adjustments of $13,030, none, $24,405
and none and accruals for postretirement benefits aggregating
$213, $188, $401 and $375 for the three months and six-months
ended September 29, 2004 and September 29, 2003, respectively. We
believe EBITDA is useful to investors because it is frequently
used by securities analysts, investors and other interested
parties in the evaluation of company performance in our industry.
Our management believes that EBITDA is useful in evaluating our
operating performance between periods and compared to that of our
competitors because the calculation of EBITDA generally eliminates
the effects of financing and income taxes and the accounting
effects of capital spending and acquisitions, which items may vary
between periods and for different companies for reasons unrelated
to overall operating performance. As a result, our management uses
EBITDA as a significant component when measuring our performance
in connection with determining incentive compensation. EBITDA is
not a recognized measure of operating income, financial
performance or liquidity under U.S. generally accepted accounting
principles. The items excluded from EBITDA are significant
components in understanding and assessing financial performance.
Therefore, while providing useful information, our EBITDA should
not be considered in isolation or as a substitute for consolidated
statement of operations and cash flows data prepared in accordance
with U.S. generally accepted accounting principles and should not
be construed as an indication of a company's operating performance
or as a measure of liquidity. In addition, it should be noted that
companies calculate EBITDA differently and, therefore, EBITDA as
presented for us may not be comparable to EBITDA reported by other
companies.
Earle M. Jorgensen Company
Financial Highlights
(in $000's)
(unaudited)
September 29, September 29,
2004 2003
-------------- --------------
Balance Sheet Data:
Cash and cash equivalents $11,557 $13,389
Accounts receivable, net 179,893 104,584
Inventory 285,878 223,606
Net property, plant and equipment 121,201 111,612
Total assets 661,253 512,028
Accounts payable 178,438 117,717
Accrued liabilities 77,908 54,995
Revolving credit facility 91,952 80,151
Other long-term debt (including current
portion) 257,473 258,540
Total stockholders' equity (deficit) 11,638 (42,599)
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