EXHIBIT 99.1
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NORTH AMERICAN GALVANIZING & COATINGS REPORTS
SECOND QUARTER 2004 RESULTS IMPROVED
TULSA, OKLAHOMA, August 16, 2004 - North American Galvanizing &
Coatings, Inc. (AMEX-NGA) announced today an increase in sales, net earnings and
earnings per share for the second quarter of 2004. The Company's net sales for
the three months ended June 30, 2004 rose 11.1%% to $9,333,000 compared to sales
of $8,398,000 for the same quarter a year ago. Net earnings for the second
quarter of 2004 were $106,000, or $.01 per share, fully diluted.
The Company's president and chief executive officer, Ronald J. Evans,
noted a continuation of the modest increase in construction-related demand for
galvanizing the Company experienced in the first quarter of 2004. Compared to
2003, the Company's increased earnings were primarily the result of improved
gross profit from cost efficiencies and higher volume and lower interest
expense, partially offset by additions to the reserve for collection of doubtful
accounts. For the same period a year ago, the Company reported a net loss of
$714,000, or $.11 per share, which included a $790,000 net loss related to the
closing of an abandoned galvanizing plant. Mr. Evans expressed confidence that
North American Galvanizing is positioned to take advantage of its streamlined
cost structure as the economy improves, and emphasized that the Company will
continue to address improving operating efficiencies.
For the first six months of 2004, the Company reported that sales
increased 8.8% to $17,891,000 from sales of $16,438,000 for the same period of
2003. Net earnings for the first half of 2004 were $316,000, or $.04 per share
fully diluted, compared to a prior year first-half loss of $1,044,000, or $.15
per share, which included a $831,000 net loss for discontinued operations.
The Company is a leading provider of hot dip galvanizing and coatings
for corrosion protection of fabricated steel products through its North American
Galvanizing Company subsidiary. 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 may be "forward looking" statements, which involve risks and
uncertainties. Certain factors may cause actual results to differ materially
from those contained in the forward looking statements, including economic and
regulatory conditions, issues with suppliers, market demand, pricing and
competitive factors, among others, which are set forth in the Company's Form
10-K and other filings with the Securities and Exchange Commission.
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NORTH AMERICAN GALVANIZING & COATINGS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
UNAUDITED
THREE MONTHS ENDED SIX MONTHS ENDED
JUNE 30 JUNE 30
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(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 2004 2003 2004 2003
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SALES $ 9,333 $ 8,398 $ 17,891 $ 16,438
Cost of sales 6,635 5,835 12,640 11,837
Selling, general & administrative expenses 1,622 1,413 3,017 2,866
Depreciation expense 698 696 1,382 1,471
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TOTAL COSTS AND EXPENSES 8,955 7,944 17,039 16,174
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OPERATING INCOME 378 454 852 264
Other (income), net -- -- (25) --
Interest expense, net 206 299 367 607
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Income (loss) from Continuing Operations
before income taxes 172 155 510 (343)
Income tax expense (benefit) 66 79 194 (130)
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INCOME (LOSS) FROM CONTINUING OPERATIONS 106 76 316 (213)
Discontinued Operations:
Loss on discontinued operations, net -- (36) -- (77)
Loss on write-off of assets of
discontinued operations, net -- (754) -- (754)
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NET INCOME (LOSS) $ 106 $ (714) $ 316 $ (1,044)
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OTHER COMPREHENSIVE INCOME
Reclassification adjustment for realized
gain included in net income -- -- (25) --
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OTHER COMPREHENSIVE INCOME $ -- $ -- $ (25) $ --
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COMPREHENSIVE INCOME (LOSS) $ 106 $ (714) $ 291 $ (1,044)
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NET INCOME (LOSS) PER COMMON SHARE
Continuing Operations:
Basic $ 0.02 $ 0.01 $ 0.05 $ (0.03)
Diluted $ 0.01 $ 0.01 $ 0.04 $ (0.03)
Discontinued Operations:
Basic and Diluted $ -- $ (0.12) $ -- $ (0.12)
Net Income (Loss):
Basic $ 0.02 $ (0.11) $ 0.05 $ (0.15)
Diluted $ 0.01 $ (0.11) $ 0.04 $ (0.15)
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