TULSA, Okla., April 20, 2009 (GLOBE NEWSWIRE) -- North American Galvanizing & Coatings, Inc. (Nasdaq:NGA) announced today first quarter 2009 earnings of $3.5 million, or $.21 per share, a 17% increase in diluted earnings per share over the prior year first quarter.
Due to an overall increase in demand from existing customers and incremental project work, total product galvanized for the quarter ended March 31, 2009 increased 18% over the prior year first quarter. The average selling price for the first three months of 2009 was lower than the average selling price during the same period in 2008. Lower cost of zinc contributed to the lower average selling price in 2009. As a result, despite the higher sales volumes, sales revenue decreased slightly for the first three months of 2009 compared to the same period in 2008.
Cost of sales excluding depreciation and amortization decreased $.7 million from 2008 to 2009 mainly due to the decrease in zinc costs. Selling, general, and administrative expenses increased $.6 million, in the first quarter of 2009 compared to the prior year due to increases in professional and legal fees, non-cash share-based compensation, and incentive compensation.
Commenting on the results, Ronald J. Evans, president and chief executive officer, said "We continued to capitalize on strong hot dip galvanizing demand with high operating efficiencies and cost controls." Mr. Evans added, "The new plant under construction in Benwood, West Virginia remains on-time and on budget. The plant is expected to be operational during the second quarter. With this expenditure and one other major capital project underway, the Company has been able to maintain no debt financing and a cash balance of approximately $10 million dollars."
Mr. Evans also noted that the Company had completed a shareholder consent solicitation during the first quarter; the number of shares authorized by the Company increased from 18,000,000 to 25,000,000 shares.
North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Canton, Ohio; Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area. Hot-dip galvanizing provides metals corrosion protection for many product applications used in commercial, construction and industrial markets. Our home page is: www.nagalv.com.
Cautionary Statement. This press release may contain "forward-looking statements" as defined under U.S. securities laws, including, but not limited to, statements concerning the Company's beliefs and expectations of future performance. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from such forward-looking statements and management's present expectations or projections. These risks and uncertainties include the risk factors described in the Company's SEC filings including the Company's Annual Report on Form 10- K filed with the Securities and Exchange Commission on February 20, 2009. These forward-looking statements are made as of the date of this press release. The Company assumes no obligation to update or revise these statements or to provide reasons why actual results may differ.
NORTH AMERICAN GALVANIZING & COATINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
(In thousands, except per share amounts)
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For the Three Months Ended
31-Mar
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2009 2008
SALES $20,609 $20,702
COSTS AND EXPENSES:
Cost of sales excluding depreciation and
amortization 12,083 12,820
Selling, general and administrative
expenses 2,693 2,142
Depreciation and amortization 887 857
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Total costs and expenses 15,663 15,819
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OPERATING INCOME 4,946 4,883
Interest income 13 11
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INCOME FROM OPERATIONS BEFORE INCOME TAXES 4,959 4,894
INCOME TAX EXPENSE 1,498 1,819
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NET INCOME $3,461 $3,075
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NET INCOME PER COMMON SHARE:
Net income
Basic $0.21 $0.19
Diluted $0.21 $0.18
Note: Net income per share adjusted for the four-for-three stock
split on September 14, 2008.