ROANOKE, Va., March 8 /PRNewswire-FirstCall/ -- Roanoke Electric
Steel Corporation (NASDAQ:RESC) today reported record first quarter
net earnings of $10,361,722 for the period ended January 31, 2006,
compared to net earnings of $9,185,874 for the same period last
year, a 12.8% increase. Basic earnings per share for the first
quarter of 2006 were $.92 ($.91 diluted), compared to $.83 ($.82
diluted) for the first quarter of 2005. Sales for the quarter were
$149,231,760, also a first quarter record, and up 13.6% from sales
of $131,309,983 for the same period last year. Donald G. Smith,
Chairman and CEO, and T. Joe Crawford, President and COO, stated:
"We are pleased to announce that for the second year in a row we
have established new record totals for sales, net earnings and
earnings per share for the first quarter of our fiscal year. The
sales increased as a result of improvements in product mix and
higher average selling prices for some of our products. The
increase in average selling prices was mainly due to strong market
demand for a number of our products, as well as more market
discipline in steel pricing. We are excited concerning the
anticipated combination with Steel Dynamics, Inc. The merger, which
we expect to be completed in April 2006, will place Roanoke in an
improved position regarding capital projects, meeting competitive
pressures, and serving customers more efficiently. A special
meeting of Roanoke's shareholders to consider and vote on the
proposed merger will be held at 11:00 am, local time, on Tuesday,
April 11, 2006, in the auditorium of the American Electric Power
Company Building, 40 Franklin Street, SW, Roanoke, Virginia.
Shareholders as of the close of business on January 31, 2006, will
receive notice of, and will be entitled to vote at, the special
meeting, and any adjournments of the meeting." (Unaudited) Three
Months Ended January 31, 2006 2005 NET SALES $149,231,760
$131,309,983 COSTS: COST OF SALES 119,291,374 102,714,466 PROFIT
SHARING 3,124,750 2,857,382 TOTAL 122,416,124 105,571,848 GROSS
EARNINGS 26,815,636 25,738,135 OTHER OPERATING EXPENSES (INCOME):
ADMINISTRATIVE 8,740,919 7,444,436 INTEREST EXPENSE 757,231 851,203
PROFIT SHARING 768,191 694,425 INTEREST INCOME (163,179) (21,982)
TOTAL 10,103,162 8,968,082 EARNINGS FROM CONTINUING OPERATIONS
BEFORE INCOME TAXES 16,712,474 16,770,053 INCOME TAX EXPENSE
6,350,752 6,658,218 EARNINGS FROM CONTINUING OPERATIONS 10,361,722
10,111,835 DISCONTINUED OPERATIONS: LOSS ON DISCONTINUED OPERATIONS
BEFORE INCOME TAXES (INCLUDING LOSS ON SALE) 0 (1,518,263) INCOME
TAX BENEFIT 0 (592,302) LOSS ON DISCONTINUED OPERATIONS 0 (925,961)
NET EARNINGS $10,361,722 $9,185,874 Earnings per share of common
stock: Earnings from continuing operations: Basic $0.92 $0.92
Diluted $0.91 $0.90 Loss on discontinued operations: Basic 0.00
(0.08) Diluted 0.00 (0.08) Net earnings per share of common stock:
Basic $0.92 $0.83 Diluted $0.91 $0.82 WEIGHTED SHARES 11,222,822
11,038,710 DILUTED SHARES 11,347,961 11,177,438 Roanoke has steel
manufacturing facilities in Roanoke, Virginia and Huntington, West
Virginia, producing angles, rounds, flats, channels, beams, special
sections and billets, which are sold to steel service centers,
fabricators, original equipment manufacturers and other steel
producers. Four subsidiaries are involved in various steel-related
activities, consisting of scrap processing and bar joists and truck
trailer beam fabrication. This news release may contain
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Such statements include,
but are not limited to, (i) statements about the benefits of the
merger between Roanoke and Steel Dynamics, including future
financial and operating results, cost savings, enhanced revenues,
and accretion to reported earnings that may be realized from the
merger; (ii) statements with respect to Steel Dynamics' and
Roanoke's plans, objectives, expectations and intentions and other
statements that are not historical facts; and (iii) other
statements identified by words such as "believes", "expects",
"anticipates", "estimates", "intends", "plans", "targets",
"projects" and similar expressions. These statements are based upon
current beliefs and expectations and are subject to significant
risks and uncertainties. Actual results may differ from those set
forth in the forward-looking statements. The following factors,
among others, could cause actual results to differ materially from
the anticipated results or other expectations expressed in the
forward-looking statements: (1) the risk that the businesses of
Roanoke and Steel Dynamics will not be integrated successfully or
such integration may be more difficult, time-consuming or costly
than expected; (2) expected revenue synergies and cost savings from
the merger may not be fully realized or realized within the
expected time frame; (3) revenues following the merger may be lower
than expected; (4) operating costs, customer loss and business
disruption following the merger, including, without limitation,
difficulties in maintaining relationships with employees, may be
greater than expected; (5) the ability to obtain governmental
approvals of the merger on the proposed terms and schedule; (6) the
failure of Roanoke's shareholders to approve the merger; (7)
competitive pressures among steel companies (both domestic and
international) may increase significantly and have an effect on
pricing, spending, third-party relationships and revenues; and (8)
changes in the U.S. and foreign legal and regulatory framework.
Additional factors that could cause Roanoke's and Steel Dynamics'
results to differ materially from those described in the
forward-looking statements can be found in Roanoke's and Steel
Dynamics' reports (such as Annual Reports on Form 10-K, Quarterly
Reports on Form 10-Q and Current Reports on Form 8-K) filed with
the Securities and Exchange Commission and available at the SEC's
internet site (http://www.sec.gov/). All subsequent written and
oral forward-looking statements concerning the proposed transaction
or other matters attributable to Roanoke and Steel Dynamics or any
person acting on their behalf are expressly qualified in their
entirety by the cautionary statements above. Roanoke does not
undertake any obligation to update any forward-looking statement to
reflect circumstances or events that occur after the date the
forward-looking statements are made. Roanoke and Steel Dynamics
have entered into an agreement for the merger of Roanoke with Steel
Dynamics, and, in connection with this proposed transaction,
prepared and will distribute a proxy statement/prospectus to
Roanoke's shareholders beginning on or about March 8, 2006.
Shareholders are urged to read the proxy statement/prospectus, and
the related registration statement which has been filed and the
amendments to this registration statement, because they contain
important information. You are able to obtain a free copy of the
proxy statement/prospectus, as well as other filings containing
information about Roanoke and Steel Dynamics, without charge, at
the Securities and Exchange Commission's internet site
(http://www.sec.gov/). Copies of these documents can also be
obtained, without charge, by contacting Roanoke's General Counsel
at PO Box 13948, Roanoke, Virginia 24038 (540.342-1831) or Steel
Dynamics Investor Relations, 6714 Pointe Inverness Way, Suite 200,
Fort Wayne, Indiana 46804 (260.459-3553). Roanoke and Steel
Dynamics, and their respective directors and executive officers may
be deemed to be participants in the solicitation of proxies from
Roanoke's shareholders in connection with the merger transaction.
Information about the directors and executive officers of Roanoke
and their ownership of Roanoke's common stock is set forth in the
annual report on Form 10-K for the year ended October 31, 2005,
which report was filed with the Securities and Exchange Commission
on January 17, 2006. Information about the directors and executive
officers of Steel Dynamics and their ownership of Steel Dynamics
common stock is set forth in the proxy statement for Steel
Dynamics' 2005 annual meeting of shareholders, which proxy
statement was filed with the Securities and Exchange Commission on
April 4, 2005. Additional information regarding the interest of
those participants is also included in the proxy
statement/prospectus regarding the proposed transaction.
DATASOURCE: Roanoke Electric Steel Corporation CONTACT: Mark G.
Meikle or William M. Watson, Jr., both of Roanoke Electric Steel
Corporation, +1-540-342-1831 Web site: http://www.roanokesteel.com/
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