Recycling Industries, Inc. Reports Record Revenues and Profitability for Fiscal Year Ended 1997
Revenues increase 126% for fiscal 1997
January 13, 1998 05:58 AM
ENGLEWOOD, Colo., Jan. 13 /PRNewswire/ -- Recycling Industries, Inc., RECY , a company engaged in the acquisition and consolidation of metals recycling companies and a major national raw materials supplier to the mini-mill sector of the steel industry, today announced record revenues for its fiscal 1997 year which ended September 30, 1997.
For the year ended September 30, 1997 the company reported record revenues of $62.4 million or an increase of 126 percent over fiscal 1996 revenues of $27.6 million. Income from operations for fiscal 1997 improved by $5.2 million to $3.0 million over the <$2.2> million loss in 1996. Earnings before interest, taxes, depreciation, and amortization (EBITDA) for the year ended September 30, 1997 was $5.6 million, compared to a loss of <$1.0> million for the same period fiscal 1996 reflecting an EBITDA increase of 660% for fiscal 1997. Fiscal 1997 net earnings totaled $1.1 million, or $0.06 per share, compared to a net loss of <$3.0> million, or <$0.29> per share, for fiscal 1996. The Company paid preferred stock dividends of $0.4 million which resulted in net earnings available to common share holders of $0.7 million, or $0.04 per share, for the fiscal year ended September 30, 1997, compared to the 1996 net loss of <$3.0> million, or <$0.29> per share.
Thomas J. Wiens, Chairman and Chief Executive Officer of Recycling Industries, commented, "Recycling Industries has made significant progress in 1997. Twelve months ago we set out to take Recycling Industries to the next level in its development by consolidating metals recycling facilities throughout the United States which offered the best potential to enhance shareholder value. This was evidenced by the fact that income from operations increased $5.2 million over last year despite the costs associated with the company's rapid growth.
Further, during our first quarter of fiscal 1998, which ended on December 31, 1997, we acquired six companies and completed $220 million in financing. The Company is now operating at an estimated annual revenue run rate in excess of $250 million a year and looks forward to strong revenues in 1998. Also, during 1997, the Company assembled what I believe to be the most professional management team in the history of our industry. We believe that these positive trends will continue in 1998 as we continue to pursue our consolidation."
Recycling Industries, Inc. is a full-service metals recycling firm actively pursuing the acquisition and integration of privately owned metals recycling companies. In addition to ferrous and non-ferrous metals, it also processes to a lesser extent, paper and plastics. Based in Englewood, Colorado, the Company currently owns and operates 16 metals processing facilities in North and South Carolina, Georgia, Illinois, Iowa, Missouri, Nevada, Texas, Virginia, and Wisconsin.
The statements included in this press release concerning predictions of economic performance and management's plans and objectives constitute forward- looking statements. These statements involve risks and uncertainties that could cause actual results to differ materially from the forward-looking statements. Factors which would cause or contribute to such differences include but are not limited to factors detailed in the Company's Securities and Exchange Commission filings; downturns in the Company's primary markets; disruptions to the Company's operations from acts of God or extended maintenance; transportation difficulties; and the unavailability of financing to complete management's plans and objectives.
Recycling Industries, Inc. Report of Earnings figures in thousands except per share amounts
The following is a report of earnings for Recycling Industries, Inc., (9780 S. Meridian Blvd,, Suite 180 Englewood, Co. 80112) for the three and twelve months ended September 30, 1997 in thousands of dollars except per share amounts:
Three Months Ended Twelve Months Ended
September September September September
30, 30, 30, 30,
1997 1996 1997 1996
Net sales $21,866 $10,135 $62,424 $27,619
Income (loss) from
operations $881 $(1,194) $3,024 $(2,224)
Net earnings (loss) $(185) $(1,933) $1,076 $(2,961)
Preferred stock dividends $10 $--- $364 $---
Net earnings (loss) available
to common shareholders $(195) $(1,933) $712 $(2,961)
Earnings (loss) per
common share $(0.01) $(0.19) $0.06 $(0.29)
Earnings (loss) per common
share available
to common shareholders $(0.01) $(0.19) $0.04 $(0.29)
Weighted average shares
outstanding 20,019,000 10,212,000 17,608,000 10,212,000
Earnings before interest,
taxes, depreciation
and amortization (EBITDA) $1,646 $(735) $5,619 $(1,023)
SOURCE Recycling Industries, Inc. |
