Steel Technologies Inc. Announces Third Quarter Results.Business Editors LOUISVILLE Louisville (l  `ēvĭl), city (1990 pop. 269,063), seat of Jefferson co., NW Ky., at the Falls of the Ohio; inc. 1780. , Ky.--(BUSINESS WIRE)--July 24, 2000
Reports Third Quarter Earnings of $.24 per share; Comments on Operating Margins Operating Margin A ratio used to measure a company's pricing strategy and operating efficiency. Calculated by: , New Plant Start-up Start-up The earliest stage of a new business venture. and Stock Repurchase Stock repurchase A firm's repurchase of outstanding shares of its common stock. Steel Technologies Inc. (Nasdaq/NM: STTX) today reported results for the third quarter and first nine months of fiscal 2000. For the three months ended June June: see month. 30, 2000, sales rose 12% to a record $121,936,000 compared with sales of $109,248,000 for the third quarter of fiscal 1999. Net income for the third quarter of fiscal 2000 was $2,552,000 or $.24 per 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 compared with net income of $4,482,000 or $.40 per diluted share for the same period of the prior year. For the nine months ended June 30, 2000, sales rose 11% to a record $347,736,000 compared with $314,342,000 for the first nine months of fiscal 1999. Net income for the first nine months of fiscal 2000 was $9,497,000 or $.87 per diluted share compared with net income of $11,366,000 or $1.01 per diluted share for the same period of the prior year. "Earlier, we indicated that earnings for the third quarter would reflect the impact of higher raw material costs which would affect our margins," said Bradford T. Ray, Vice Chairman and Chief Executive Officer. "Although we were unable to fully pass on these raw materials cost increases, we continued to focus our efforts on growing our business with key strategic customers, resulting in solid demand for our products and services. Our raw material cost outlook has improved recently, and we expect our margins to improve beginning in the first fiscal quarter of 2001." The Company reported that construction of its new facility in Matamoros, Mexico, its fourth location in Mexico, is scheduled to start up in September 2000. "We are very excited about the growth opportunities this new processing facility will provide us," said Mr. Ray. "Located on the northeast Mexico border, this new facility will allow us to expand our markets and customer service capabilities in a fast growing market. Our well-placed strategy has positioned us as the premier steel processing supplier in this area, and we now expect this new operation to be fully accretive beginning in fiscal 2001." The Company reported that during the quarter, it continued to repurchase re·pur·chase tr.v. re·pur·chased, re·pur·chas·ing, re·pur·chas·es To buy (something) again. n. The act of buying something that one previously sold or owned. Noun 1. its common shares under a repurchase program announced in 1998. From the inception of the program, the Company has repurchased approximately 1,381,000 shares of its common stock, including 105,000 during the most recent quarter. The current program was amended a·mend v. a·mend·ed, a·mend·ing, a·mends v.tr. 1. To change for the better; improve: amended the earlier proposal so as to make it more comprehensive. 2. during the quarter to increase to 2.5 million the number of shares authorized Shares authorized The maximum number of shares of stock of a company allowed in the articles of incorporation, which may be changed only by a shareholder vote. See: Issued and outstanding. shares authorized See authorized capital stock. to be purchased under the plan. "We will continue to repurchase shares under certain market conditions, as our Board of Directors views repurchase of Company shares as an attractive investment," concluded Mr. Ray. Steel Technologies processes flat-rolled steel to specified thickness, width, temper tem·per n. 1. A state of mind or emotions; mood. 2. A tendency to become easily angry or irritable. 3. An outburst of rage. , finish and shape requirements for automotive, appliance A stand-alone hardware device or software environment dedicated to a specific task. See hardware appliance and software appliance. , lawn and garden, agricultural, recreational and office equipment industries among others. The Company operates 16 production facilities located throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Mexico, including three at Mi-Tech Steel, Inc. For the most recent fiscal year ended September 30, 1999, Steel Technologies reported sales of $411 million and net income of $15.6 million or $1.38 per diluted share. More information about the Company may be found on the World Wide Web at www.steeltechnologies.com. Statements contained in this release, which are not historical facts, are 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 that term is defined in 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. Such forward-looking statements are subject to risks and uncertainties (contained in the Company's SEC filings), which could cause actual results to differ materially from those projected. SEC filings may be obtained from the SEC or by contacting the Company.
STEEL TECHNOLOGIES INC.
Financial Highlights
(Unaudited)
(In thousands, except per share data)
Three Months Ended
June 30,
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2000 1999
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Net sales $ 121,936 $ 109,248
Net income 2,552 4,482
Diluted earnings per common share .24 .40
Diluted weighted average number of shares
outstanding 10,739 11,157
Nine Months Ended
June 30,
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2000 1999
------ ------
Net sales $ 347,736 $ 314,342
Net income 9,497 11,366
Diluted earnings per common share .87 1.01
Diluted weighted average number of shares
outstanding 10,952 11,281
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