EXHIBIT 99.1
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NEWS RELEASE
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NORTH AMERICAN GALVANIZING & COATINGS, INC.
2250 EAST 73RD ST. - SUITE 300 - TULSA, OK 74136
(918) 494-0964 - FAX: (918) 494-3999
FOR IMMEDIATE RELEASE:
CONTACT: PAUL R. CHASTAIN
PHONE: (918) 524-1506
NORTH AMERICAN GALVANIZING & COATINGS, INC.
REPORTS 2003 FOURTH QUARTER AND ANNUAL RESULTS
TULSA, OKLAHOMA, February 17, 2004 - North American Galvanizing &
Coatings (AMEX-NGA) announced today a net loss for 2003 due to lower sales and a
charge to discontinued operations taken in the second quarter for the write-off
of an abandoned galvanizing plant. For the year ended December 31, 2003, the
Company reported a net loss of $1,013,000, or $.15 per share, including a loss
from discontinued operations of $831,000, or $.12 per share, fully diluted.
Sales for 2003 were $33,200,000. For 2002, the Company reported net earnings of
$1,110,000, or $.15 per share fully diluted, and sales of $38,178,000.
The Company reported a net loss of $59,000, or $.01 per share, and
sales of $8,246,000 for the fourth quarter of 2003. For the comparable quarter
of 2002, the Company reported net income of $156,000, or $.02 per share fully
diluted, and sales of $8,943,000.
Ronald J. Evans, president and chief executive officer, said,
"Through every quarter in 2003, we experienced significantly lower market demand
for galvanizing compared to the record volume for 2002. We attribute this to the
depressed conditions in the capital goods spending sector of the economy. Going
forward, we continue to address improving operating efficiencies in our plants.
Recognizing that the first quarter of the year typically reflects lower
construction- related demand for galvanizing, we remain conservatively
optimistic that a strengthening economy will flow through to our business."
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 is:
www.nagalv.com.
Cautionary Statement. Statements in this news release that are not
strictly historical and 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
THREE MONTHS ENDED TWELVE MONTHS ENDED
DECEMBER 31 DECEMBER 31
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(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 2003* 2002 2003* 2002
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SALES $ 8,246 $ 8,943 $ 33,200 $ 38,178
Cost of sales 5,874 6,187 23,833 26,208
Selling, general & administrative expenses 1,529 1,575 5,992 5,904
Depreciation expense 692 764 2,880 3,028
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TOTAL COSTS AND EXPENSES 8,095 8,526 32,705 35,140
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OPERATING INCOME 151 417 495 3,038
Interest expense, net 156 36 654 872
Income (loss) from Continuing Operations
before income taxes (5) 381 (159) 2,166
Income tax expense 54 173 23 851
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INCOME (LOSS) FROM CONTINUING OPERATIONS (59) 208 (182) 1,315
Discontinued Operations:
Loss on discontinued operations, net -- (52) (77) (205)
Loss on write-off of assets of
Discontinued operations, net -- -- (754) --
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NET INCOME (LOSS) (59) 156 (1,013) 1,110
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OTHER COMPREHENSIVE INCOME
Unrealized investment gain 6 -- 6 --
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OTHER COMPREHENSIVE INCOME 6 -- 6 --
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COMPREHENSIVE INCOME (LOSS) $ (53) $ 156 $ (1,007) $ 1,110
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NET INCOME (LOSS) PER COMMON SHARE
Continuing Operations:
Basic $ (.01) $ .04 $ (.03) $ .20
Diluted $ (.01) $ .03 $ (.03) $ .18
Discontinued Operations:
Basic $ -- $ (.01) $ (.12) $ (.03)
Diluted $ -- $ (.01) $ (.12) $ (.03)
Net Income (Loss):
Basic $ (.01) $ .03 $ (.15) $ .17
Diluted $ (.01) $ .02 $ (.15) $ .15
* Unaudited
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