WELLAND, ON, Aug. 4 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside
Steel" or the "Company") today reported results for the first quarter ended
June 30, 2009. For the three months ended June 30, 2009, the Company's revenue
was $15,999,389, which is a decline of $33,445,323 or 67.6% compared to
revenue of $49,444,712 for the first quarter ended June 30, 2008. The
Company's net loss in the first quarter ended June 30, 2009 was $2,988,165, a
decline of $3,082,697 from a net income of $94,532 for the comparable period
in the prior year. The Company had a loss per share of $0.05 for the three
months ended June 30, 2009, compared to earnings per share of $0.00 for the
same period in the prior year.
The Company's EBITDA was ($3,581,519) for the three month period ended
June 30, 2009, a decline of $4,354,598 from EBITDA of $773,079 for the 3 month
period ended June 30, 2008.
Demand in the oil and gas sector for the Oil Country Tubular Goods
manufactured by Lakeside Steel Corp. ("Lakeside"), Lakeside Steel's
wholly-owned subsidiary, has experienced a substantial reduction, as reflected
in the performance above. Management believes that this trend will continue
into the second quarter of fiscal 2010 and will continue to align costs with
Tim Clutterbuck, President and Chief Executive Officer of Lakeside
stated: "While the results for this quarter are disappointing, they are not
unexpected. We have worked and will continue to work on implementing cost
cutting measures with a view to minimizing the impact that the current
economic environment has on our business and being well positioned to
capitalize on the eventual market turnaround."
On June 22, 2009, the Company paid a $0.05 per common share dividend to
shareholders of record at the close of business on June 8, 2009. In connection
with the dividend, the exercise price of the Company's publicly traded
warrants has been adjusted from $0.52 to $0.404 and in addition each warrant
is exercisable for 1.287 common shares, an increase from one common share.
Accordingly the effect of the changes in the exercise price and the number of
underlying common shares is that the resulting exercise price for one warrant
is $0.31 per common share. All other terms of the warrants remain unadjusted.
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
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
For further information:
For further information: Vic Alboini, Chairman & Chief Executive
Officer, Lakeside Steel Inc., (416) 644-8110, Fax: (416) 644-0271, e-mail:
email@example.com; Ken Hunter, Chief Financial Officer, Lakeside Steel
Inc., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail: