Consolidated Stainless reports operating results for 1996 year
ORLANDO, Fla.--(BUSINESS WIRE)--April 16, 1997-- Consolidated Stainless Inc Wednesday announced
operating results for 1996.
For the 12 months ended Dec. 31, 1996, the company's net sales increased 11.7% to a record $50.8 million,
compared with $45.5 million in the prior year. After a $2.5 million inventory write-down during the fourth quarter,
the company reported a net loss for 1996 of $2.7 million as compared with net income of $2.7 million for 1995.
On a per share basis, the net loss for 1996 was $0.63 as compared with net income of $0.60 for 1995.
"Despite an approximately 35% decline in stainless steel selling prices in 1996, sales increased as a result of
the acquisition of Flow Components Inc. (a Houston-based manufacturer of stainless steel forged flanges),
Twenty First Century Metals Inc. (a master distributor of stainless steel products in the Chicago area) and the
commencement of operations at the company's ornamental and structural tube manufacturing facility," stated
Ronald J. Adams, president of Consolidated Stainless Inc. "The 1996 net loss is largely attributable to the $2.5
million inventory write-down as well as the costs involved in integrating these new activities into our already
existing operations," added Adams.
"Although the first quarter of 1997 continued to be impacted by lower than anticipated demand and gross profit
margins, we believe that the second quarter will show an improvement in selling prices for the stainless steel
industry, and more specifically in the company's performance. Realization of such pricing improvement should
lead to higher gross profit margins and increased revenues. The company continues to pursue its strategic
goal of becoming a leading cost efficient manufacturer and distributor of stainless steel products throughout
North America," concluded Adams.
Consolidated Stainless Inc. manufactures stainless steel pipe, flanges, ornamental and structural tubing, and
nipples, and supplies a broad line of stainless and exotic alloy pipe, valves and fittings (PVF) and related
products through its distribution network. The company's customers include original equipment manufacturers,
commercial and industrial end-users and other distributors throughout the United States and Canada.
Headquartered in Orlando, Consolidated's primary production facilities are located in Auburndale and
Lakeland, Fla. and Houston. The company operates seven distribution/service centers in Florida (3),
California, Georgia, Illinois and Texas.
Private Securities Litigation Reform Act of 1995 Compliance Statement: Statements contained in this release
that are not based on historical facts are forward looking statements subject to uncertainties and risks
including, but not limited to: product and service demand and acceptance, economic conditions, the impact of
competition and pricing, capacity and supply constraints or difficulties, and other risks detailed in the
company's Securities and Exchange Commission filings.
CONSOLIDATED STAINLESS INC.
SELECTED FINANCIAL HIGHLIGHTS
Fiscal Year Ended December 31,
1996 1995
Net Sales $ 50,822,978 $ 45,518,335
Cost of Sales 42,676,056 32,269,490
Inventory Write-down 2,515,377 --
GROSS PROFIT 5,631,545 13,248,845
Selling, General &
Admin. Expenses 7,067,012 6,992,709
Income (Loss) from Operations (1,435,467) 6,256,136
Other Income (Expense):
Interest (3,003,386) (1,486,176)
Cost of abandoned public
offering -- (533,415)
Other 337,538 122,702
INCOME (LOSS) BEFORE
INCOME TAXES (4,101,315) 4,359,247
Taxes on Income (Benefit) (1,352,300) 1,704,200
NET INCOME (LOSS) $ (2,749,015) $ 2,655,047
EARNINGS (LOSS) PER SHARE $ (0.63) $ 0.60
Shares Used in Computing EPS 4,358,456 4,460,096
CONTACT: Consolidated Stainless Inc., Orlando
Ronald J. Adams, President, 407/896-4000 |
