WELLAND, ON, Feb. 27, 2012 /CNW/ - Lakeside Steel Inc. (TSX-V: LS)
("Lakeside" or the "Company") today reported its financial results for
its fiscal 2012 third quarter ended December 31, 2011 ("Q3 2012"). For
Q3 2012, the Company's revenue was $58,085,702, which represents an
increase of $4,265,455 or 7.9% from revenue of $53,820,247 for the
fiscal 2011 third quarter ended December 31, 2010 ("Q3 2011"). For the
nine months ended December 31, 2011 ("YTD 2012"), the Company's revenue
was $158,884,734, which represents a decrease of $23,624,237 or 12.9%
from revenue of $182,508,971 for the nine months ended December 31,
2010 ("YTD 2011").
The Company recorded a net loss of $9,160,125 during Q3 2012, a decrease
of $8,958,786 from a net loss of $201,339 for Q3 2011. The Company
reported a loss of $0.05 per share for Q3 2012, compared to a net loss
of $0.00 per share for Q3 2011. For YTD 2012, the Company had a net
loss of $17,854,604, a decrease of $18,045,174 from net income of
$190,570 for YTD 2011. The Company reported a loss of $0.10 per share
for YTD 2012, compared to earnings of $0.00 per share for YTD 2011.
The Company's adjusted EBITDA was ($7,680,696) in Q3 2012, a decrease of
$9,628,361 from adjusted EBITDA of $1,947,665 for Q3 2011. For YTD
2012, the Company's adjusted EBITDA was ($13,970,825), which represents
a decrease of $20,122,845 from adjusted EBITDA of $6,152,020 for YTD
During fiscal 2012, customer demand for oil country tubular goods
("OCTG") shifted from plain end pipe to thermally treated end finished
products. This shift resulted in customer demand that substantially
exceeded available capacity among third party thermal treatment and
end-finishing processors, leading to extended wait times.
In Alabama, the Company's new casing mill, with an estimated capacity of
192,000 annual tons, began production in December 2011. The thermal
treatment and end finishing facility, with an estimated capacity of
67,000 annual tons of thermal treatment and 55,000 annual tons of end
finishing capacity for tubing products, was completed in January
2012. The thermal treatment and end finishing facility for casing
products, with an estimated capacity of 150,000 annual tons of thermal
treatment and 110,000 annual tons of end finishing for casing products,
will be completed in June 2012.
On January 25, 2012, the Company and JMC Steel Group, Inc. ("JMC Steel")
announced that they had entered into a definitive arrangement agreement
pursuant to which JMC Steel, through a wholly-owned subsidiary, has
agreed to acquire all of the issued and outstanding common shares of
Lakeside at a price of $0.2983 per share in cash pursuant to a
statutory plan of arrangement under the Business Corporations Act
(Ontario). Further information about the proposed transaction will be
provided in a management information circular to be sent to
shareholders in connection with a special meeting of shareholders for
the purpose of considering the transaction. Information about the
meeting will follow at such time as it becomes available.
About Lakeside Steel Inc.
Lakeside is a 2011 TSX Venture Exchange 50 company and the parent
company of Lakeside Steel Corporation, Lakeside Steel Alabama Inc. and
Lakeside Steel Texas Inc. Lakeside has operating facilities located in
Welland, Ontario, and Corpus Christi, Texas, and three facilities
currently being constructed in Thomasville, Alabama. Lakeside is a
diversified steel pipe and tubing manufacturer with a focus on
manufacturing and upgrading Oil Country Tubular Goods. Lakeside's list
of customers includes large oil and gas end users as well as
distributors across North America.
Lakeside Steel Alabama will be a diversified steel pipe manufacturer
with thermal treatment and end-finishing capabilities strategically
situated in the southern United States on successful completion of
construction of the new facilities in Thomasville, Alabama.
Construction of the Alabama facilities is currently underway.
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, Annual
Information Form and Filing Statement of the Company which are
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
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. Lakeside
was recognized as a TSX Venture 50® company in 2010 and 2011. TSX
Venture 50 is a trade-mark of TSX Inc. and is used under license.
SOURCE Lakeside Steel Inc.
For further information:
President and Chief Operating Officer
Lakeside Steel Inc.
Chief Financial Officer
Lakeside Steel Inc