Metals USA Holdings Corp.
) reported adjusted earnings (excluding items) of 23 cents per
share in the fourth quarter of 2012 compared with 37 cents per
share earned in the year-ago quarter. The results, however, were
well below the Zacks Consensus Estimate of 31 cents, reflecting a
negative surprise of around 26%.
Profit, as reported, was $3.7 million or 10 cents per
share. This represents a roughly 74% decline from $14
million or 37 cents per share posted in the prior-year quarter.
The results were impacted by lower demand for steel.
For full-year 2012, Metals USA posted adjusted earnings of
$1.55 per share, excluding the non-recurring items, missing the
Zacks Consensus Estimate by 8 cents.
Revenues decreased 4% to $437.5 million in the quarter from
$455.7 million in the year-ago quarter, missing the Zacks
Consensus Estimate of $451 million. The results were hurt by
prevailing weak business environment and seasonality during the
For full-year 2012, revenues increased 5.2% to $1,983.6
million from $1,885.9 million in 2011. Shipments totaled
1,550,000 tons, up 11% from 1,396,000 tons shipped in 2011.
Shipments were 353,000 tons in the quarter, up 8% from 327,000
tons shipped in the same period last year. The shipment results
were better than the 3.1% decrease for the industry as reported
by the Metals Service Center Institute.
Cost of sales (excluding operating and delivery, and
depreciation and amortization) decreased 4.8% to $336.1 million
and gross profit inched up 0.9% to $101.4 million. Selling,
general and administrative expenses increased 17.2% year over
year to $29.4 million. However, gross margin of 23.2% was
consistent with the levels achieved throughout 2012.
Metal USA ended 2012 with a strong liquidity position with
cash increasing 26.4% to $15.3 million from $12.1 million
recorded a year ago. Long-term debt was $451.6 million as of Dec
31, 2012, down 3.6% from $468.6 million as of Dec 31, 2011. The
company refinanced long-term debts, thereby extending maturity
and considerably reducing annual interest expense.
For 2012, net cash provided by operating activities was $67.2
million. Capital expenditures were $6.8 million for the fourth
quarter and $20.1 million for 2012.
Metals USA's board of directors declared a quarterly cash
dividend of 6 cents per share payable on Mar 12, 2013, to
shareholders of record as of Feb 26, 2013.
Acquisition by Reliance Steel
Reliance Steel & Aluminum Co.
) recently entered into an agreement to acquire all outstanding
shares of Metals USA for $20.65 per share in cash, representing
an enterprise value of around $1.2 billion. The boards of both
the companies have unanimously approved the acquisition. The deal
is also subject to the approval of the shareholders of Metals
USA. The transaction is expected to close in the second quarter
Metals USA, which is among the prominent metals producers
A. M. Castle & Co.
Lawson Products Inc.
), currently retains a Zacks Rank #3 (Hold).
CASTLE (AM) &CO (CAS): Free Stock Analysis
LAWSON PRODUCTS (LAWS): Free Stock Analysis
METALS USA HLDG (MUSA): Free Stock Analysis
RELIANCE STEEL (RS): Free Stock Analysis
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