WELLAND, ON, June 7 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today reported results for the year ended March 31, 2010. The Company's revenue for the fourth quarter ended March 31, 2010, was $43,585,993, an improvement of $16,546,219 or 61.2% from the previous quarter ended December 31, 2009, and an improvement of $10,007,996 or 29.8% from the 3 months ended March 31, 2009. Revenue for the first quarter of fiscal 2011 is expected to be approximately $60,000,000, which would represent an improvement of approximately 37.6% from the fourth quarter ended March 31, 2010, revenue of $43,585,993.
For the year ended March 31, 2010, the Company's revenue was $104,437,833, which is a decline of $102,487,969 or 49.5% compared to revenue of $206,925,802 for the year ended March 31, 2009. The Company's net loss for the year ended March 31, 2010, was $13,087,382, a decline of $19,630,082 from net income of $6,542,700 in the prior fiscal year.
The Company's EBITDA was ($15,160,736) for the year ended March 31, 2010, a decline of $25,666,928 from EBITDA of $10,506,192 in the prior fiscal year. Despite these losses, the Company was able to maintain positive cash flows by selling its surplus inventory. The Company's debt was reduced by $3,354,653 as at March 31, 2010. The Company had a loss per share of $0.21 for the year ended March 31, 2010, compared to earnings per share of $0.10 for the prior year. The Company has been EBITDA positive since February 2010.
As previously reported, the demand in the oil and gas sector for the Oil Country Tubular Goods manufactured by Lakeside Steel Corporation ("Lakeside"), Lakeside Steel's wholly-owned subsidiary, experienced a positive increase in the third quarter. This continued into the fourth quarter and management believes this trend will continue through the first half of fiscal 2011. Lakeside's current order backlog is approximately $100,000,000 and will provide full production loads in both of its operating mills through September 2010, with some orders being scheduled into December 2010.
Ron Bedard, President and CEO, commented that "Lakeside has made significant progress in the fourth quarter ending March 31, 2010. While we experienced a loss in the fourth quarter, we were able to contain costs, reduce the loss significantly as compared to Q3, and diversify our customer base. We expect to return to profitability during the quarter ending June 30, 2010, as a result of strong demand, cost savings and good operational performance. Lakeside expects that the demand for its products will continue for several quarters. Lakeside continues to explore opportunities to grow our business, both in Welland and closer to our end use markets."
Lakeside expects to issue its financial statements and annual MD&A for the year ended March 31, 2010, by Thursday June 10, 2010.
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: email@example.com; Ken Hunter, Chief Financial Officer, Lakeside Steel Inc., (905) 735-7473 ext 7218, Fax: (905) 735-9069, e-mail: firstname.lastname@example.org