Maverick Tube Corp(MAVK) reports .01 vs .01 estimate
ST. LOUIS, Apr 19, 2000 /PRNewswire via COMTEX/ -- Maverick Tube Corporation
(Nasdaq: MAVK) announced today its results for the quarter ended March 31, 2000.
The Company reported a profit of $154,000, or $0.01 per share, for the quarter,
compared to the loss reported in the same quarter last year of $3.7 million, or
$0.24 per share. For the first six months of fiscal 2000, the company recorded a
net loss of $1.1 million, or $0.06 per share, a substantial improvement from the
loss of $6.1 million, or $0.39 per share, recorded in the prior year period. Net
sales were $71 and $141 million for the quarter and six months, respectively, as
compared to sales of $34 and $76 million for the corresponding prior year
periods.
Total tons of the Company's energy related products shipped during the second
quarter increased by 164% compared to the second quarter of fiscal 1999.
Drilling rates in the United States were up by 39% during the quarter compared
to the second quarter of fiscal 1999, due to a 42% increase in gas related
drilling and a 30% increase in oil related drilling. During the same period,
drilling increased by 66% in Canada as well. Second quarter shipments of the
Company's industrial products increased by 13% compared to the same period last
year, due principally to increased demand for HSS products.
Gregg Eisenberg, President and CEO said, "I am pleased that our business
improved enough to post positive earnings, especially in what is normally one of
our slower quarters of the year. Oil prices stabilized after the OPEC meeting at
an attractive level and natural gas prices remained very strong. Demand for our
energy products was stable and we continue to see our end user customers utilize
their improved cash flows to increase drilling plans. As a result of these
stronger market conditions, we have continued to increase selling prices
substantially. I remain encouraged that our energy market conditions will
continue to improve for the remainder of fiscal 2000."
Eisenberg went on to say, "Our industrial products business also improved during
the quarter, both with higher shipments of HSS products and narrowed losses in
our new cold drawn business. We are seeking higher prices on these products as
well in order to pass on the recent steel cost increases. In addition,
Maverick's energy and structural plants operated at low conversion costs during
the quarter. Finally, construction continues to progress on our new large
diameter mill expansion, with first production scheduled for later this month."
Maverick Tube Corporation is a St. Louis, Missouri, based manufacturer of
tubular products used in the energy industry in drilling, production and surface
transportation applications as well as industrial tubing products (HSS, standard
pipe and cold drawn tubing) used in various industrial applications. This news
release contains forward-looking information with respect to Maverick's
operations and beliefs. Actual results may differ from these forward looking
statements due to numerous factors, including those discussed in Exhibit 99.1 to
Maverick's Form 10-K for its fiscal year ended September 30, 1999.
MAVERICK TUBE CORPORATION
SELECTED CONSOLIDATED FINANCIAL DATA
For the Second Quarter Ended March 31, 2000
(In thousands, except rig count, tons shipped and per share data)
(Unaudited)
Second Quarter Six Months
Ended March 31, Ended March 31,
2000 1999 2000 1999
Average U.S. Rig Count 771 553 773 623
Tons shipped 123,743 68,804 255,909 144,956
Net sales $70,901 $34,126 $140,870 $75,515
Gross profit (B) 4,645 (854) 6,826 (109)
Start-up costs (A) -- 952 -- 1,671
Income (Loss) from operations 709 (5,292) (1,115) (8,650)
Pre-tax income (loss) 244 (5,750) (1,783) (9,443)
Net income (loss) $154 $(3,688) $(1,139) $(6,052)
Basic earnings (loss) per share $0.01 $(0.24) $(0.06) $(0.39)
Diluted earnings (loss) per share $0.01 $(0.24) $(0.06) $(0.39)
Weighted average number shares 17,810 15,437 17,686 15,437
Working capital $67,192 $42,641
Property, plant and equipment 100,010 74,319
Total assets 223,776 136,737
Long-term debt 51,112 29,850
Stockholders' equity $114,034 $84,012
Depreciation and amortization $4,162 $3,527
(A) During September 1998, the Company acquired assets to be used in the
production of cold drawn tubular products at a production facility in
Beaver Falls, Pennsylvania. The Company incurred costs of
$952,000 in the second quarter of 1999 and $1,671,000 in the first
six months of fiscal 1999 related to the commencement of operations
at this facility. These costs are comprised primarily of salary and
related costs for the production, sales and administrative personnel
prior to the fully integrated operation of the facility ($0.04 and
$0.07 per share, respectively).
(B) Gross profit for the six months ended March 31, 1999 includes a
$707,000 charge to earnings for the reduction in carrying value of
inventory, primarily related to a decline in the selling prices of
the Company's energy products ($0.03 per share).
SOURCE Maverick Tube Corporation
(C) 2000 PR Newswire. All rights reserved.
prnewswire.com
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CONTACT: Barry R. Pearl, Vice President Finance, CFO of Maverick Tube
Corporation, 636-733-1600
(MAVK)
KEYWORD: Missouri
INDUSTRY KEYWORD: OIL |
