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GENEVA STEEL ANNOUNCES SECOND QUARTER 1993 RESULTS

 VINEYARD, Utah, May 4 /PRNewswire/ -- Geneva Steel (NYSE & PSE: GNV) reported today a net loss of $4.57 million or a $.32 loss per common share for the second fiscal quarter ended March 31, 1993. This compares with a net loss of $2.98 million or a $.20 loss per common share for the same quarter of the previous fiscal year. The operating loss for the second quarter was $3.21 million, which compares with an operating loss of $1.58 million during the same period last year. The net loss for the quarter reflects a non-recurring charge of $.5 million in loan fees written off in connection with the recent consummation of a plan of financing.
 Order levels improved significantly during the last quarter, increasing to 570,941 tons as compared to 282,684 tons in the same quarter of the previous fiscal year. Consistent with the last quarter, bookings during April 1993 remained strong.
 Sales and shipments during the quarter were approximately $115.5 million and 388,000 tons, respectively, compared with $107.9 million and 339,000 tons, respectively, for the same quarter last year.
 For the six months ended March 31, 1993, the company reported a net loss of $8.51 million, or a $.58 loss per common share. This compares with a net loss of $7.79 million, or a $.52 loss per common share during the same period of the last fiscal year.
 "Second quarter results reflect higher shipments as compared to the same period last year," said Joseph A. Cannon, chairman and chief executive officer. "Average selling prices declined, however, as compared to the same quarter of the previous year. The decline in price realization was offset in part by lower average operating costs. Average operating costs decreased primarily due to a product mix shift and production efficiencies associated with completed modernization projects, offset in part by higher depreciation expense and increases in various raw material and operating costs."
 The company has previously announced a series of price increases. Most products shipped during the quarter reflected orders booked prior to the price increases. The company expects price realization to improve beginning in the current quarter, significantly improving operating results.
 During the last quarter, the company completed a plan of financing which included the sale of $135 million of 11-1/8 percent senior notes, $40 million of 14 percent Series A preferred stock and related warrants to purchase 1,132,000 shares of the company's Class A common stock, and the repurchase of $70 million principal amount of existing term debt. The net proceeds from the company's recent financing will be used primarily to fund the completion of the continuous casting facility.
 "Upon completion, the continuous caster and related improvements are expected to improve finished product yield, reduce energy and labor costs, increase throughput capacity and improve the metallurgical and surface quality of Geneva's finished products," said Robert J. Grow, president and chief operating officer.
 Under applicable accounting principles, dividends associated with the newly-issued preferred stock must be taken into account in calculating earnings per share of Class A common stock. The net income/loss of the company is not affected by dividends paid on the preferred stock. The effect on the loss per common share calculation attributable to the preferred stock, which was issued late in the last quarter, was approximately $.02 per share. In future quarters, the impact of dividends associated with the outstanding preferred stock on the earnings per share calculation will be greater.
 Geneva steel is the only integrated steel mill operating west of the Mississippi River. The company manufactures hot-rolled steel sheet, plate and pipe for sale primarily in the western and central United States.
 GENEVA STEEL
 Statements of Income and Selected Financial Data
 (Unaudited, in thousands, except per share)
 Periods ended Three months Six months
 March 31 1993 1992 1993 1992
 Net sales $115,542 $107,879 $216,691 $205,110
 Cost of sales 113,840 103,766 213,308 200,046
 Gross margin 1,702 4,113 3,383 5,064
 Selling, general and
 administrative expenses 4,914 5,695 9,549 12,105
 Loss from operations (3,212) (1,582) (6,166) (7,041)
 Other income (expense):
 Interest and other income 198 167 268 656
 Interest expense (4,475) (3,469) (8,045) (6,392)
 Total (4,277) (3,302) (7,777) (5,736)
 Loss before benefit
 for income taxes (7,489) (4,884) (13,943) (12,777)
 Benefit for income taxes (2,921) (1,905) (5,438) (4,991)
 Net loss (4,568) (2,979) (8,505) (7,786)
 Less - Preferred stock
 dividend and accretion
 requirements 261 -- 261 --
 Net loss applicable to
 common shares (4,829) (2,979) (8,766) (7,786)
 Net loss per common share ($.32) ($.20) ($.58) ($.52)
 Weighted average shares
 outstanding 15,053 15,025 15,045 15,009
 Steel tons shipped 388 339 725 647
 Capital expenditures $11,235 $19,585 $21,591 $44,135
 Depreciation expense 5,228 4,470 10,343 8,037
 GENEVA STEEL
 Summary Balance Sheet Information
 (Unaudited, in thousands)
 3/31/93 9/30/92
 Cash and cash equivalents $96,681 $ 3,122
 Current assets 213,470 132,701
 Property, plant and equipment (net) 264,044 252,797
 Total assets 487,026 390,462
 Current liabilities 72,577 57,047
 Long-term debt 224,991 178,182
 Total liabilities 315,529 248,630
 Redeemable preferred stock 32,782 --
 Total stockholders' equity 138,715 141,832
 -0- 5/4/93
 /CONTACT: Mitch Haws of Geneva Steel, 801-227-9174/
 (GNV)


CO: Geneva Steel ST: Utah IN: MNG SU: ERN

LR-WS -- NY051 -- 4347 05/04/93 12:59 EDT
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Date:May 4, 1993
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