----------AT THE COMPANY----------- | -------------------AT FRB/WEBER SHANDWICK-------------------- | ||
Edward Culliton | General Information: | Analyst Contacts: | |
VP, Finance & Chief Financial Officer | George Zagoudis | Peter Seltzberg (212) 455-8457 | |
(847) 349-2508 | (312) 640-6663 | Email: pseltzbe@webershandwick.com | |
Email: gzagoudis@webershandwick.com | |||
Traded: AMEX, CSE (CAS) | |||
Member: S&P SmallCap 600 Index |
A.M. CASTLE & CO. |
|
|
|
| |||||||||
CONSOLIDATED STATEMENTS OF OPERATIONS | For the Three | For the Twelve | |||||||||||
(Amounts in thousands, except per share data) |
| Months Ended | Months Ended | ||||||||||
(Unaudited) |
| December 31, | December 31, | ||||||||||
| 2003 | 2002 | 2003 | 2002 | |||||||||
|
|
|
|
| |||||||||
Net sales | $ | 132,520.00 | $ | 124,289.00 | $ | 543,031.00 | $ | 538,143.00 | |||||
Cost of material sold | (96,527.00 | ) | (87,527.00 | ) | (384,459.00 | ) | (377,997.00 | ) | |||||
Special charges | (100.00 | ) | 0.00 | (1,624.00 | ) | 0.00 | |||||||
Gross material margin | 35,893.00 | 36,762.00 | 156,948.00 | 160,146.00 | |||||||||
|
|
|
|
| |||||||||
Plant and delivery expense | (21,142.00 | ) | (21,049.00 | ) | (87,055.00 | ) | (87,902.00 | ) | |||||
Sales, general, and administrative expense | (15,936.00 | ) | (16,999.00 | ) | (68,339.00 | ) | (67,720.00 | ) | |||||
Depreciation and amortization expense | (2,139.00 | ) | (2,457.00 | ) | (8,839.00 | ) | (8,895.00 | ) | |||||
Impairment and other operating expenses | (532.00 | ) | 0.00 | (6,456.00 | ) | 0.00 | |||||||
Total other operating expense | (39,749.00 | ) | (40,505.00 | ) | (170,689.00 | ) | (164,517.00 | ) | |||||
|
|
|
|
| |||||||||
Operating loss | (3,856.00 | ) | (3,743.00 | ) | (13,741.00 | ) | (4,371.00 | ) | |||||
|
|
|
|
| |||||||||
Equity earnings (loss) of joint ventures | 216.00 | 26.00 | 137.00 | 446.00 | |||||||||
Impairment to joint venture investment and advances | (623.00 | ) | 0.00 | (3,453.00 | ) | 0.00 | |||||||
Interest expense, net | (2,362.00 | ) | (2,122.00 | ) | (9,709.00 | ) | (7,459.00 | ) | |||||
Discount on sale of accounts receivable | (283.00 | ) | (2,490.00 | ) | (1,157.00 | ) | (3,429.00 | ) | |||||
|
|
|
|
| |||||||||
Loss from continuing operations before income taxes | (6,908.00 | ) | (8,329.00 | ) | (27,923.00 | ) | (14,813.00 | ) | |||||
|
|
|
|
| |||||||||
Income taxes |
|
|
|
| |||||||||
Federal | 2,742.00 | 2,576.00 | 9,550.00 | 4,623.00 | |||||||||
State | (935.00 | ) | 611.00 | 496.00 | 917.00 | ||||||||
| 1,807.00 | 3,187.00 | 10,046.00 | 5,540.00 | |||||||||
Net loss from continuing operations | (5,101.00 | ) | (5,142.00 | ) | (17,877.00 | ) | (9,273.00 | ) | |||||
|
|
|
|
| |||||||||
Discontinued operations: |
|
|
|
| |||||||||
Loss from discontinued operations; net of |
|
|
|
| |||||||||
income tax | 0.00 | 0.00 | 0.00 | (26.00 | ) | ||||||||
Loss on disposal of subsidiary, net of tax | (172.00 | ) | (23.00 | ) | (172.00 | ) | (752.00 | ) | |||||
|
|
|
|
| |||||||||
Net loss | (5,273.00 | ) | (5,165.00 | ) | (18,049.00 | ) | (10,051.00 | ) | |||||
Preferred Dividends | (243.00 | ) | (103.00 | ) | (961.00 | ) | (103.00 | ) | |||||
Net loss applicable to common stock | $ | (5,516.00 | ) | $ | (5,268.00 | ) | $ | (19,010.00 | ) | $ | (10,154.00 | ) | |
Basic & diluted earnings per share from: |
|
|
|
| |||||||||
Continuing operations | $ | (0.34 | ) | $ | (0.34 | ) | $ | (1.19 | ) | $ | (0.63 | ) | |
Discontinued operations | (0.01 | ) | (0.00 | ) | (0.01 | ) | (0.05 | ) | |||||
Total | $ | (0.35 | ) | $ | (0.34 | ) | $ | (1.20 | ) | $ | (0.68 | ) | |
|
|
|
|
| |||||||||
|
|
|
A.M. CASTLE & CO. |
|
| |||||
CONSOLIDATED BALANCE SHEETS |
|
| |||||
(Amounts in thousands except per share data) |
|
|
|
| |||
|
|
| Dec 31, |
|
| Dec. 31, |
|
|
|
| 2003 |
|
| 2002 | |
ASSETS |
|
| |||||
Current assets |
|
| |||||
Cash and equivalents | $ | 2,455 | $ | 918 | |||
Accounts receivable, net | 54,232 | 34,273 | |||||
Inventories (principally on last-in first-out basis) | 117,270 | 131,704 | |||||
Income tax receivable | 660 | 9,897 | |||||
Assets held for sale | 1,067 | - | |||||
Advances to joint ventures and other current assets | 7,184 | 7,930 | |||||
Total current assets | 182,868 | 184,722 | |||||
Investment in joint ventures | 5,492 | 7,278 | |||||
Goodwill | 31,643 | 31,947 | |||||
Pension assets | 42,075 | 40,359 | |||||
Advances to joint ventures and other assets | 8,688 | 6,754 | |||||
Property, plant and equipment, at cost |
|
| |||||
Land | 4,767 | 6,025 | |||||
Building | 45,346 | 53,322 | |||||
Machinery and equipment | 118,447 | 125,376 | |||||
| 168,560 | 184,723 | |||||
Less - accumulated depreciation | (100,386 | ) | (103,188 | ) | |||
| 68,174 | 81,535 | |||||
Total assets | $ | 338,940 | $ | 352,595 | |||
|
|
| |||||
LIABILITIES AND STOCKHOLDER'S EQUITY |
|
| |||||
Current liabilities |
|
| |||||
Accounts payable | $ | 67,601 | $ | 64,192 | |||
Accrued liabilities and deferred gains | 19,145 | 16,092 | |||||
Current and deferred income taxes | 4,852 | 4,351 | |||||
Current portion of long-term debt | 8,248 | 3,546 | |||||
Total current liabilities | 99,846 | 88,181 | |||||
Long-term debt, less current portion | 100,034 | 108,801 | |||||
Deferred income taxes | 13,963 | 21,101 | |||||
Deferred gain on sale of assets | 7,304 | - | |||||
Minority interest | 1,456 | 1,352 | |||||
Post retirement benefits obligations | 2,683 | 2,236 | |||||
Stockholders' equity |
|
| |||||
Preferred stock | 11,239 | 11,239 | |||||
Common stock | 159 | 158 | |||||
Additional paid in capital | 35,009 | 35,017 | |||||
Earnings reinvested in the business | 66,486 | 85,490 | |||||
Accumulated other comprehensive income (loss) | 1,042 | (555 | ) | ||||
Other - deferred compensation | (36 | ) | (195 | ) | |||
Treasury stock, at cost | (245 | ) | (230 | ) | |||
Total stockholders' equity | 113,654 | 130,924 | |||||
Total liabilities and stockholders' equity | $ | 338,940 | $ | 352,595 | |||
|
|
| |||||
|
|
A.M. CASTLE & CO. |
|
| |||||
CONSOLIDATED STATEMENT OF CASH FLOWS |
|
| |||||
(Dollars in thousands) | For the twelve months | ||||||
(Unaudited) | December 31, | ||||||
| 2003 | 2002 | |||||
|
|
| |||||
Cash flows from operating activities: |
|
| |||||
Net loss | $ | (18,049 | ) | $ | (10,051 | ) | |
Net loss from discontinued operations | 172 | 778 | |||||
Depreciation | 8,840 | 8,895 | |||||
Amortization of deferred gain | (593 | ) | - | ||||
Equity loss (earnings) from joint ventures | (137 | ) | (446 | ) | |||
Decrease in deferred taxes and income tax receivable | 1,992 | 5,873 | |||||
Non-cash pension income | (1,953 | ) | (2,988 | ) | |||
Other | (2,524 | ) | (5,036 | ) | |||
Cash from operating activities before working capital changes | (12,252 | ) | (2,975 | ) | |||
Asset impairment and special charges | 11,333 | - | |||||
Net change in accounts receivable sold | (12,866 | ) | (14,134 | ) | |||
Other Increase in working capital | 12,351 | 13,323 | |||||
Net cash from operating activities - continuing operations | (1,434 | ) | (3,786 | ) | |||
Net cash from operating activities - discontinued operations | - | (1,194 | ) | ||||
Net cash from operating activities | (1,434 | ) | (4,980 | ) | |||
|
|
| |||||
Cash flows from investing activities: |
|
| |||||
Investments and acquisitions | - | (842 | ) | ||||
Proceeds from disposition of subsidiary | - | 2,486 | |||||
Advances to joint ventures | (289 | ) | (1,882 | ) | |||
Capital expenditures | (4,770 | ) | 774 | ||||
Proceeds from sale of assets | 14,002 | - | |||||
Net cash from investing activities - continuing operations | 8,943 | 536 | |||||
Net cash from investing activities - discontinued operations | - | 98 | |||||
Net cash from investing activities | 8,943 | 634 | |||||
|
|
| |||||
Cash flows from financing activities |
|
| |||||
Long-term borrowings, net | (5,182 | ) | (8,166 | ) | |||
Effect of exchange rate changes on cash | 171 | 59 | |||||
Preferred dividends paid | (961 | ) | (103 | ) | |||
Net proceeds from preferred stock issuance | - | 11,239 | |||||
Other | - | (503 | ) | ||||
Net cash from financing activities - continuing operations | (5,972 | ) | 2,526 | ||||
Net cash from financing activities - discontinued operations | - | 937 | |||||
Net cash from financing activities | (5,972 | ) | 3,463 | ||||
|
|
| |||||
Net (decrease) increase in cash | 1,537 | (883 | ) | ||||
|
|
| |||||
Cash - beginning of year | $ | 918 | $ | 1,801 | |||
Cash - end of period | $ | 2,455 | $ | 918 | |||
|
|
| |||||
|
|
| |||||
|
|
|