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California Steel Reports First Quarter 2004 Results
Fontana, CA.--- California Steel Industries, Inc. (“CSI”) today reported first quarter results for the period ended March 31, 2004. CSI shipped 566,630 net tons of steel products, the best quarterly shipment level in the Company’s history. This represents an increase of more than 28 percent compared to the tonnage sold in first quarter 2003. Sales revenues of $233.1 million dollars in first quarter 2004 are more than 17 percent higher than the same period in the prior year. Results for the first quarter include net income of $1.8 million compared to $5.4 million in first quarter 2003. First quarter results were impacted by one-time charges associated with the redemption of the Company’s 8.5 percent senior notes due in 2009 in the amount of $150.0 million, and the issuance of new senior notes, also in the amount of $150.0 million, at 6.125 percent due in 2014. EBITDA for the quarter was $15.2 million, slightly lower than EBITDA generated in the same period last year of $19.3 million. Average sales prices were down 9 percent when compared to first quarter 2003, although up 5 percent compared to fourth quarter 2003. Sales volumes were as follows (net tons):
Average slab consumption costs (including the FOB slab price, quality extras, insurance, ocean freight, unloading charges, duties and rail freight from the Port of Los Angeles to CSI’s Fontana works) rose four percent in first quarter 2004 over 2003. “We look at first quarter 2004 as a solid stepping stone to start the year,” said Vicente Wright, President and Chief Executive Officer. “I would highlight two significant events that mark our performance during the quarter. First is our response to our customers’ demand for product, as evidenced by our recordbreaking shipment level of over 566,000 tons,” Wright commented. “Second is the successful issuance of our 6-1/8 percent unsecured notes, which will replace our 8-1/2 percent notes,” he added. “It was an important achievement for our company.” Liquidity continues to remain strong, as the balance under the Company’s Revolving Credit Agreement remains at zero as of March 31, 2004, with availability of more than $107 million and a cash balance of $36.1 million. Results (in thousands) are as follows:
Company Information and Forward Looking Statements California Steel Industries is the leading producer of flat rolled steel products in the western United States (the 11 states located west of the Rocky Mountains) based on tonnage billed, with a broad range of products, including hot rolled, cold rolled, electric resistant weld pipe and galvanized coil and sheet. Located in Fontana, California, CSI has about 1,000 employees. This
press release contains forward-looking statements within the meaning
of the "safe harbor" provisions
of the Private Securities Litigation Reform Act of 1995. Actual outcomes
and results
may differ materially from what is expressed
herein. In evaluating any forward-looking statements, please carefully
consider factors that could
cause actual results to differ materially
from the expectations of the company or its management. For a more
detailed discussion of these factors,
please see the company’s most recent filings with the Securities
and Exchange Commission. In particular, we
direct your attention to our most recent Form 10-K, in particular
Item 1 with respect to the general
discussion of factors affecting our business,
Item 7 with respect to “Management's
Discussion and Analysis of Financial Condition
and Results of Operations” and
Item 7A with respect to “Quantitative and Qualitative Disclosures
”. The company undertakes no obligation to update |
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