WELLAND, ON, July 22 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) (the "Company") today reported results for the three months ended June 30, 2010. For the three months ended June 30, 2010, the Company's revenue was $62,202,865, which is an increase of $46,203,476 or 289% compared to revenue of $15,999,389 for the three months ended June 30, 2009, and an increase of $18,616,872 or 43% compared to the previous quarter ended March 31, 2010. The Company's net income for the three months ended June 30, 2010, was $212,954, an increase of $3,201,119 from a net loss of $2,988,165 for the three months ended June 30, 2009, and an increase of $4,398,201 compared to the previous quarter ended March 31, 2010.
The Company's EBITDA was $1,048,065 for the three months ended June 30, 2010, an increase of $4,627,566 from EBITDA of $(3,579,501) for the three months ended June 30, 2009 and an increase of $2,840,823 compared to the previous quarter ended March 31, 2010.
The Company had earnings per share of $0.00 for the three months ended June 30, 2010, compared to a loss per share of $0.05 for the three months ended June 30, 2009.
As previously reported, the demand in the oil and gas sector for the Oil Country Tubular Goods manufactured by Lakeside Steel Corporation ("Lakeside"), the Company's wholly-owned subsidiary, experienced a positive increase in the third and fourth quarters of fiscal 2010. This continued into the first quarter of fiscal 2011 and management believes this trend will continue through the remainder of fiscal 2011. Lakeside's current order book provides a full production load in both of its mills and is accepting orders for October production.
Ron Bedard, President and CEO, commented that "Lakeside has made significant progress in the quarter ending June, 2010. While we are pleased to return to profitability in these tough economic conditions, we are certainly not satisfied. We aim to further reduce cost, improve operational efficiencies and improve profit margins. Our employees have demonstrated excellent commitment to operational excellence, establishing many operating records in the quarter. Lakeside expects that the demand for its products will continue for several quarters. We anticipate growing both our top line revenue and our bottom line profit in the second quarter. During the quarter Lakeside also took steps to improve its balance sheet by signing a contract to remove the PCB material currently stored at the Welland facility which in turn will allow us to remove the $5.9 million environmental liability from the balance sheet. Lakeside continues to diversify its customer base in Alberta, Texas and the Marcellus Shale area while focusing on quality, certainty of supply and cost competitiveness. Lakeside is committed to growing our business in a responsible, profitable manner."
About Lakeside Steel Inc.
Lakeside Steel is a 2010 TSX Venture Exchange 50 company and 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 and the United States.
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 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 such statements.
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 Steel was recognized as a TSX Venture 50(R) company in 2010. TSX Venture 50 is a trade-mark of TSX Inc. and is used under license.
SOURCE LAKESIDE STEEL INC.
For further information: For further information: Ron Bedard, President & Chief Operating Officer, Lakeside Steel Inc., (905) 735-7473 ext. 7294, Fax: (905) 735-8896, 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: email@example.com