EXHIBIT 99.1
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NEWS RELEASE
NORTH AMERICAN GALVANIZING & COATINGS, INC.
2250 EAST 73RD STREET - 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
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ANNOUNCES 2004 FOURTH QUARTER AND ANNUAL RESULTS
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TULSA, OKLAHOMA, February 25, 2005 - North American Galvanizing & Coatings,
Inc. (AMEX: NGA) announced today that sales increased 7.9% to $35,822,000 for
the year ended December 31, 2004. Net earnings for 2004 were $403,000, or $.05
per share, compared to a net loss of $1,013,000, or $.15 per share, for 2003.
"North American Galvanizing benefited from a modest upturn in activity from
key customers serving power distribution, communications, highway and
recreational markets," said the Company's President and CEO, Ronald J. Evans.
"Volume for 2004 did not reflect the improvement in the economy that we
expected. Based on this limited improvement in demand for galvanizing, our
earnings from continuing operations rose to $403,000 for 2004 compared to a loss
of $182,000 for 2003." In 2003, the Company took a charge to discontinued
operations of $831,000 to write-off an abandoned plant.
For the fourth quarter of 2004, sales increased 4.1% to $8,583,000 from
$8,246,000 for the comparable quarter of 2003. A seasonal-related slowing of
business activity in the final quarter of 2004, combined with increased legal
expenses, resulted in a fourth quarter 2004 net loss of $142,000, or $.03 per
share, compared to a net loss of $59,000, or $.01 per share for 2003.
New Development. On Thursday, February 24, 2005 the Company announced a
tentative agreement had been reached to acquire the hot-dip galvanizing assets
of Gregory Galvanizing located in Canton, Ohio. Commenting on the transaction
which is expected to be finalized before the end of this month, Mr. Evans said,
"The Canton, Ohio multi-kettle facility will expand North American Galvanizing's
service area into the northeast region of the United States. With annual sales
of approximately $7,000,000, the purchase is expected to add significantly to
North American Galvanizing's 2004 reported revenues of approximately
$36,000,000."
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 coating business through a network of plants
located in Denver, Hurst (Dallas/Forth 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. This press release contains statements, estimates, or
projections that constitute "forward-looking statements" as defined under U.S.
securities laws, including, but not limited to, statements made concerning the
acquisition of assets from Gregory Galvanizing and the financial impacts
thereof. Forward-looking statements are subject to certain risks and
uncertainties that could cause actual results to differ materially from such
forward-looking statements and management's present expectations or projections.
These risks and uncertainties include, but are not limited to, the ability of
the Company to complete the acquisition and the impact of the acquisition on the
Company's future sales, as well as the risk factors described in the Company's
SEC filings including the Company's Annual Report on Form 10-K filed with the
Securities and Exchange Commission on March 30, 2004.
NORTH AMERICAN GALVANIZING & COATINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS & COMPREHENSIVE INCOME
UNAUDITED
THREE MONTHS ENDED YEAR ENDED
DECEMBER 31 DECEMBER 31
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(Dollars in Thousands, Except per Share Amounts) 2004 2003 2004 2003
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SALES $ 8,583 $ 8,246 $ 35,822 $ 33,200
Cost of sales 6,449 5,874 25,814 23,833
Selling, general & administrative expenses 1,530 1,529 5,917 5,992
Depreciation expense 633 692 2,701 2,880
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TOTAL COSTS AND EXPENSES 8,612 8,095 34,432 32,705
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OPERATING INCOME (LOSS) (29) 151 1,390 495
Other income -- -- (25) --
Interest expense, net 199 156 764 654
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Income (loss) from Continuing Operations
before income taxes (228) (5) 651 (159)
Income tax expense (benefit) (86) 54 248 23
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INCOME (LOSS) FROM CONTINUING OPERATIONS (142) (59) 403 (182)
Discontinued Operations Loss -- -- -- (831)
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NET INCOME (LOSS) $ (142) ($ 59) $ 403 $ (1,013)
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OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gain on investment gain -- -- 12 6
Reclassification adjustment for realized
gain included in net income -- -- (16) --
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Other Comprehensive Income (Loss) -- -- (4) 6
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COMPREHENSIVE INCOME (LOSS) $ (142) $ (59) $ 399 $ (1,007)
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NET INCOME (LOSS) PER COMMON SHARE
Continuing Operations
Basic and Diluted $ (.03) $ (.01) $ 0.05 $ (.03)
Discontinued Operations
Basic and Diluted -- -- -- $ (.12)
Net Income (Loss)
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Basic and Diluted $ (.03) $ (.01) $ 0.05 $ (.15)
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