KIN Amex 1.30/1.42: 9m0...Rev $29.2m vs $28m, net inc $954k vs $356k, or positive 14 cents vs vs 5 cents...
B: Kinark Corporation Reports Increase in Sales, Net Earnings a
B: Kinark Corporation Reports Increase in Sales, Net Earnings and Earnings Per
Share for Third Quarter and First Nine Months
TULSA, Okla., Oct 31, 2002 /PRNewswire-FirstCall via COMTEX/ -- Sales, net
earnings and earnings per share of Kinark Corporation (Amex: KIN) for the third
quarter and first nine months of 2002 were higher than the same periods a year
ago, Ronald J. Evans, president and chief executive officer, announced today.
Kinark is a leading provider of hot dip galvanizing and coatings for corrosion
protection of fabricated steel products through its North American Galvanizing
Company subsidiary.
The company's net sales for the three months ended September 30, 2002 were
$9,915,000 compared to $9,812,000 for the third quarter a year ago. The
company's net earnings were $338,000 for the third quarter of 2002, an increase
of 13.8% over net earnings of $297,000 for the third quarter of 2001. Earnings
per share for the three months ended September 30, 2002 were $.05 compared to
earnings per share of $.04 for the same period a year ago.
Kinark's sales for the nine months ended September 30, 2002 were $29,235,000, an
increase of 4.2% over sales of $28,056,000 for the same period a year ago. Net
earnings for the first nine months of 2002 were $954,000, or $.14 per share, an
increase of 176% over net earnings of $346,000, or $.05 per share, for the first
nine months of 2001.
In announcing the results, Mr. Evans said, "We are pleased with the continuing
growth of our business, which reflects the increasing competitive strength of
our galvanizing operations. Despite the uncertain market environment being
encountered in some sectors of the economy and competitive pressures from other
galvanizers, our production tonnage for the third quarter of 2002 rose 2.7% over
the third quarter of 2001 and is up 6.7% in the first nine months of this year
compared to 2001.
"The steps taken to refocus Kinark's strategy on hot dip galvanizing and
implement a capital expenditure program which improved product quality and
operating efficiency have successfully repositioned our galvanizing business in
the national market. Our consistency in improving results over prior periods is
the direct result of these strategic programs and the efforts of our management
team. We are pleased with our results for the quarter and year-to-date."
Mr. Evans also reported that, "The company's newest galvanizing plant in St.
Louis is in the final stages of construction and we look for a commercial
start-up in the fourth quarter of 2002."
North American Galvanizing currently conducts its galvanizing and coatings
business through a network of plants located in Denver, Houston, Hurst
(Dallas/Fort Worth), 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.
North American Galvanizing Company can be contacted for additional information
through our website, www.nagalv.com .
Cautionary Statement. Statements in this news release that are not strictly
historical may be "forward looking" statements, which involve risks and
uncertainties. These include economic and regulatory conditions, issues with
suppliers, market demand, pricing and competitive factors, among others, which
are set forth in the Company's Securities and Exchange Commission filings.
KINARK CORPORATION AND SUBSIDIARY
CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (Unaudited)
Three Months Ended Nine Months Ended
September 30 September 30
(Dollars in Thousands
Except per Share Amounts) 2002 2001 2002 2001
Sales $9,915 $9,812 $29,235 $28,056
Cost of sales 6,821 6,574 20,052 19,546
Selling, general &
administrative expenses 1,481 1,443 4,393 4,032
Depreciation and amortization 810 907 2,416 2,671
Total Costs and Expenses 9,112 8,924 26,861 26,249
Operating Income 803 888 2,374 1,807
Interest expense, net 270 337 836 952
Other (income) expense --- 39 --- 258
Income before Income Taxes 533 512 1,538 597
Income tax expense 195 215 584 251
Net Income 338 297 954 346
Other Comprehensive
Income (Loss)
Cash flow hedges:
Cumulative effect,
accounting for derivatives,
net of related income
taxes of $48 --- --- --- (65)
Less: reclassification
adjustment for derivative
losses included in net
income, net of related
income taxes of $48 --- 19 --- 65
Other Comprehensive Income (Loss) --- 19 --- ---
Comprehensive Income $338 $316 $954 $346
Net Income Per Common Share
Basic $.05 $.04 $.14 $.05
Diluted $.05 $.04 $.13 $.05 |
