TULSA, Okla., Oct. 20, 2008 (GLOBE NEWSWIRE) -- North American Galvanizing & Coatings, Inc. (Nasdaq:NGA) announced today earnings for the first nine months and the third quarter of 2008. All per share data are reported on a fully-diluted basis and have been adjusted to reflect the effect of the September 14, 2008 four-for-three stock split effected by a stock dividend.
Consolidated net earnings for the 2008 third quarter were $3.0 million ($.18 per share), compared with $2.5 million ($.15 per share) in the third quarter of 2007, a 20% increase in earnings per share. The Company's net earnings for the first nine months of 2008 were $9.5 million ($.56 per share), compared with $7.1 million ($.42 per share) in the first nine months of 2007 which represents a 33% increase in earnings per share.
Third quarter 2008 volumes were 14% higher than volumes in the third quarter of 2007 and 4% higher than volumes in the second quarter of 2008. First nine months' 2008 volumes were 2.2% higher than volumes in the first nine months of 2007. Volumes for the 2007 third quarter were lower as a result of the scheduled shutdown of the Canton plant to replace the kettle and furnace during the month of July, 2007. Although higher than 2007, third quarter 2008 volume was negatively impacted by the nine day shutdown of the Company's Houston, Texas plant due to Hurricane Ike.
Selling, general and administrative expenses increased $0.5 million in the third quarter and first nine months of 2008 compared to the same prior year periods primarily due to increases in accruals for incentive and share based compensation and increased legal and professional expenses.
Commenting on the results of the third quarter 2008, 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 control. We expended approximately $1.8 million on the repurchase of Company stock during the quarter and increased our cash position by $2.6 million. With no debt, and the full amount of our line of credit available, the Company is in a good financial position."
As part of its share repurchase program, the Company purchased approximately 304,000 shares at an average price of $5.82/share of Company stock in open market transactions during the third quarter. The Company currently has $2.2 million remaining in authorization for future stock buybacks. The shares repurchased and average price have been adjusted to reflect the effect of the September 14, 2008 four-for-three stock split.
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 March 7, 2008. The Company cannot be assured that continuing zinc price increases will continue to be absorbed by the market. 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 For the Nine
Months Ended Months Ended
30-Sep 30-Sep
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2008 2007 2008 2007
SALES $ 21,845 $ 21,541 $ 64,525 $ 68,161
COSTS AND EXPENSES:
Cost of sales 13,879 14,535 39,656 46,899
Selling, general and
administrative expenses 2,699 2,193 7,548 6,998
Depreciation and
amortization 847 876 2,556 2,612
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Total costs and expenses 17,425 17,604 49,760 56,509
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OPERATING INCOME 4,420 3,937 14,765 11,652
Interest expense -- (275) -- (527)
Interest income and other 70 15 217 69
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INCOME BEFORE INCOME TAXES 4,490 3,677 14,982 11,194
INCOME TAX EXPENSE 1,453 1,164 5,447 4,129
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NET INCOME $ 3,037 $ 2,513 $ 9,535 $ 7,065
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NET INCOME PER COMMON
SHARE:
Basic $ 0.19 $ 0.15 $ 0.58 $ 0.43
Diluted $ 0.18 $ 0.15 $ 0.56 $ 0.42
Note: All per share data have been adjusted to reflect the effect of the September 14, 2008 four-for-three stock split effected by a stock dividend for all periods presented.