FLS HOLDINGS REPORTS RESULTS
FLS HOLDINGS REPORTS RESULTS TAMPA, Fla., April 15 /PRNewswire/ -- FLS Holdings, Inc.
(NASDAQ-NMS: FLSHP), parent company of Florida Steel Corporation, reported net income of $242,000 for the quarter ended March 31, 1992, on consolidated net sales of $111.4 million. The net income represents a return to profitability following six quarters reporting net losses. The comparable quarter a year ago reflected a net loss of $3.4 million on sales of $104.7 million. Income from operations for the quarter was $10.1 million vs. $4.2 million a year ago, reflecting an improvement of 138 percent.
Results for the six months ended March 31, 1992, was a net loss of $3.1 million on sales of $216.4 million, compared to a net loss of $4.2 million on sales of $220.5 million for the six months ended March 31, 1991. The earnings for this quarter compared to the quarter a year ago were favorably affected by lower costs from improved operating efficiencies which, together with somewhat lower scrap costs, more than overcame lower average selling prices. Although selling prices continue to be depressed, the outlook for price improvement is encouraging, according to Edward L. Flom, chairman and chief executive officer. Flom also commented that an increase in demand should result from the recent improvement in the housing market and from the enactment of the $155 billion Surface Transportation Act, as well as from the substantial requirements for the rebuilding of the nation's infrastructure. Significantly improved operating efficiencies resulting in reduced costs contributed the major part of the improved earnings. "We are especially pleased to see the positive results of the capital improvements made at our plants over the last several years," Flom commented. "We will continue to remain a leading low cost producer of quality products in our industry." FLS HOLDINGS, INC. Six Months Ended Three Months Ended 3/31/92 3/31/91 3/31/92 3/31/91 Net sales $216, 355,808 $220,483,932 $111,352,402 $104,729,080 Income from operations $ 14,146,849 $ 13,079,687 $ 10,051,151 $ 4,216,527 Interest and Amortization of Deferred Financing Costs $ 18,372,166 $ 18,951,681 $ 9,258,081 $ 9,329,023 Income (Loss) Before Income Taxes $ (4,225,317) $ (5,871,994) $ 793,070 $ (5,112,496) Net Income (Loss) $ (3,136,317) $ (4,161,994) $ 242,070 $ (3,436,496) Finished Tons Shipped 589,465 582,587 301,286 282,869 Depreciation $ 7,807,919 $ 7,325,317 $ 3,908,980 $ 3,680,504 EBITDA (A) $ 23,289,582 $ 21,739,818 $ 14,627,538 $ 8,564,438 (A) -- Earnings before interest, taxes, depreciation and amortization. FLS Holdings, Inc., a Delaware holding company, owns 100 percent of the outstanding common stock of Florida Steel Corporation. Florida Steel Corporation is the sole investment and source for income of FLS Holdings, Inc. Florida Steel Corporation is a Tampa-based steelmaker consisting of five electric steel mills, 15 reinforcing steel fabricating plants, two reinforcing steel epoxy coating facilities, a post-tension facility, a hollow metal door and hardware operation, a railroad track spike operation, a transportation division, and a subsidiary producing welded wire fabric and nails. -0- 4/15/92 /CONTACT: Marvin F. Hill, chief financial officer of Florida Steel Corporation, 813-251-8811/ (FLSHP) CO: FLS Holdings Inc.; Florida Steel Corporation ST: Florida IN: MNG SU: ERN
JB-AW -- FL005 -- 8680 04/15/92 12:09 EDT
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|Date:||Apr 15, 1992|
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