WELLAND, ON, Feb. 11 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside
Steel" or the "Company"), formerly Added Capital Corp. ("Added") today
reported results for the third quarter ended December 31, 2008. For the three
months ended December 31, 2008, the Company's revenue was $65,358,126 which is
an increase of $30,199,247 compared to revenue of $35,158,879 for the quarter
ended December 31, 2007. The Company's net income was $4,850,280 for the
quarter, an improvement of $7,357,312 from a net loss of $2,507,032 for the
quarter ended December 31, 2007. The Company's EBITDA was $5,362,555 for the
quarter, an improvement of $8,022,267 from EBITDA of ($2,659,712) for the
quarter ended December 31, 2007. EBITDA per share for the three months ended
December 31, 2008 was $0.08.
For the nine months ended December 31, 2008, the Company's revenue was
$173,347,805 which is an increase of $54,853,570 compared to revenue of
$118,494,235 for the nine months ended December 31, 2007. The Company's net
income was $7,697,740 for the nine month period ended December 31, 2008, an
improvement of $12,867,214 from a net loss of $5,169,474 for the nine month
period ended December 31, 2007. The Company's EBITDA was $11,119,932 for the
nine month period ended December 31, 2008, an improvement of $16,305,240 from
EBITDA of ($5,185,308) for the comparable period in 2007. EBITDA per share for
the nine months ended December 31, 2008 was $0.17.
The Company had earnings per share of $0.08 for the three month period
ended December 31, 2008, and $0.12 for the nine month period ended December
31, 2008, compared to a loss per share of $0.05 for the three months ended
December 31, 2007, and a loss per share of $0.12 for the nine months ended
December 31, 2007.
During the quarter ended December 31, 2008, Lakeside realized an increase
in revenues of 11.6% and an increase in EBITDA of $378,257 over the previous
quarter ended September 30, 2008.
Management believes that the Company's improved performance in the third
quarter of fiscal 2009 is attributable to effective cost management and strong
demand in the oil and gas sector for Oil Country Tubular Goods of Lakeside
Steel Corporation ("Lakeside"), the Company's wholly owned subsidiary. Demand
in the oil and gas sector for Lakeside's Oil Country Tubular Goods has
recently experienced a substantial reduction from the third quarter. Based on
a review of existing orders, management expects performance in the fourth
quarter of fiscal 2009 will be below its original business plan projections
while still expecting to maintain its target EBITDA of $7,000,000 as
previously reported. Accordingly management has modified its fiscal 2009
annual revenue projections downward to $205,000,000 from the previously
reported forecast of $250,000,000.
About Lakeside Steel Inc.
Lakeside Steel is the parent company of Lakeside. Lakeside, located in
Welland, Ontario, is a diversified steel pipe and tubing manufacturer.
Lakeside's list of customers includes large oil and gas, mining, automotive
and commercial and industrial supply companies. In addition to supplying its
products in these industries, Lakeside manufactures pipe and mechanical tubing
for the resale market, which is sold to distributors in Eastern Canada and the
Northeastern United States. Lakeside manufactures a variety of products for
these industries including oil well tubing and casing, mechanical tubing,
pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and
plumbing pipe, drill rod and specialty tubing. Lakeside serves customers
worldwide, either directly or indirectly, in Canada, Australia and the United
This press release may contain forward-looking statements with respect to
the Company, its operations, strategy, financial performance and condition.
These statements generally can be identified by use of forward looking words
such as "may", "will", "expect", "estimate", "anticipate", intends", "believe"
or "continue" or the negative thereof or similar variations. The actual
results and performance of the Company discussed herein could differ
materially from those expressed or implied by such statements. Such statements
are qualified in their entirety by the inherent risks and uncertainties
surrounding future expectations. Important factors that could cause actual
results to differ materially from expectations include, among other things,
general economic and market factors, competition, changes in government
regulations and the factors described under "Risk Factors" in the Management's
Discussion and Analysis and Filing Statement of the Company which is available
at www.sedar.com. The cautionary statements qualify all forward-looking
statements attributable to the Company and persons acting on their behalf.
Unless otherwise stated, all forward-looking statements speak only as of the
date of this press release and the Company has no obligation to update such
For further information:
For further information: Vic Alboini, Chairman & Chief Executive
Officer, Lakeside Steel Inc., (416) 644-8110, Fax: (416) 644-0271, e-mail:
firstname.lastname@example.org; Ken Hunter, Chief Financial Officer, Lakeside Steel
Inc., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail: