EXHIBIT 99.1
------------
NORTH AMERICAN GALVANIZING & COATINGS
ANNOUNCES THIRD QUARTER RESULTS
TULSA, OKLAHOMA, November 5, 2003 - North American Galvanizing &
Coatings (AMEX-NGA) announced today sales of $8,516,000 for the third quarter of
2003 compared to sales of $9,915,000 for the third quarter of 2002. For the
third quarter of 2003, the Company reported net income of $90,000, or $.01 per
share, compared to net income of $338,000, or $.05 per share for the third
quarter of 2002.
The Company amended its bank credit agreement, as a part of its
routine treasury management, during the third quarter of 2003. Debt maturities
were extended to January 1, 2005. Additionally, the Company received an interest
refund of $311,000 associated with its tax-deferred debt for the first nine
months of 2003. The variable interest rate for a sinking fund associated with
the tax-deferred debt was adjusted to be in line with current market rates.
Ronald J. Evans, president and chief executive officer, said, "The
gradual improvement in order volume experienced in the second quarter held into
the Company's third quarter ended September 30, 2003. As a direct result of
cost-cutting measures implemented earlier in the year, the Company maintained
profitability under adverse economic conditions. A continuation of downward
pressure on selling prices due to the weak market and competitive conditions
negatively impacted our galvanizing and coatings operations for the first nine
months of 2003." Mr. Evans added, "We are still experiencing significantly lower
market demand for galvanizing compared to last year, a reflection of the
depressed conditions in the capital goods sector."
North American Galvanizing is a leading provider of hot dip
galvanizing and coatings for corrosion protection of fabricated steel products.
The Company conducts its galvanizing and coatings business through a network of
plants located in Denver, Hurst (Dallas/Fort Worth), Houston, Kansas City,
Louisville, Nashville, St. Louis and the Tulsa area. Hot dip galvanizing
provides metals corrosion protection for many product applications used in
commercial, construction and industrial markets. Our home page on the internet
is: www.nagalv.com.
Cautionary Statement. Statements in this news release that are not
strictly historical may be "forward looking" statements, which involve risks and
uncertainties. These include economic and regulatory conditions, issues with
suppliers, market demand, pricing and competitive factors, among others, which
are set forth in the Company's Securities and Exchange filings.
NORTH AMERICAN GALVANIZING & COATINGS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
THREE MONTHS ENDED NINE MONTHS ENDED
SEPTEMBER 30 SEPTEMBER 30
----------------------- -----------------------
(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 2003 2002 2003 2002
- ----------------------------------------------- ---------- ---------- ---------- ----------
SALES $ 8,516 $ 9,915 $ 24,954 $ 29,235
Cost of sales 6,122 6,805 17,959 20,021
Selling, general & administrative expenses 1,597 1,456 4,463 4,329
Depreciation expense 717 765 2,188 2,264
---------- ---------- ---------- ----------
TOTAL COSTS AND EXPENSES 8,436 9,026 24,610 26,614
---------- ---------- ---------- ----------
OPERATING INCOME 80 889 344 2,621
Interest (income) expense, net (109) 270 498 836
Income (loss) from Continuing Operations
before income taxes 189 619 (154) 1,785
Income tax expense (benefit) 99 227 (31) 678
---------- ---------- ---------- ----------
INCOME (LOSS) FROM CONTINUING OPERATIONS 90 392 (123) 1,107
Discontinued Operations:
Loss on discontinued operations, net --- (54) (77) (153)
Loss on write-off of assets of
discontinued operations, net --- --- (754) ---
---------- ---------- ---------- ----------
NET INCOME (LOSS) $ 90 $ 338 $ (954) $ 954
========== ========== ========== ==========
NET INCOME (LOSS) PER COMMON SHARE
Continuing Operations:
Basic $ 0.01 $ 0.06 $ (0.02) $ 0.16
Diluted $ 0.01 $ 0.05 $ (0.02) $ 0.15
Discontinued Operations:
Basic $ --- $ (0.01) $ (0.12) $ (0.02)
Diluted $ --- $ (0.01) $ (0.12) $ (0.02)
Net Income (Loss):
Basic $ 0.01 $ 0.05 $ (0.14) $ 0.14
Diluted $ 0.01 $ 0.05 $ (0.14) $ 0.13
- END -