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
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Contact: Paul R. Chastain Phone: (918) 524-1506
NORTH AMERICAN GALVANIZING & COATINGS
ANNOUNCES FIRST QUARTER RESULTS
TULSA, OKLAHOMA, May 10, 2005 - North American Galvanizing & Coatings, Inc.
(AMEX: NGA) announced today that sales for the first quarter ended March 31,
2005 were $9,280,000, up 8.4% from sales of $8,558,000 for the first quarter a
year ago. The Company reported first-quarter 2005 net earnings of $97,000, or
$.01 per share fully diluted, compared to net earnings of $210,000, or $.03 per
share fully diluted, for the first quarter of 2004.
Commenting on the results for the first quarter, Ronald J. Evans, president
and chief executive officer, said, "Higher sales for this first quarter reflect
a one-month contribution from the Canton, Ohio galvanizing facility that was
purchased February 28, 2005. Additionally, in March we began to experience the
anticipated increase in business projected by our customers, resulting in a 5.2%
same plant volume improvement over the same month a year ago. Earnings for the
first quarter of 2005 were lower than the same period a year ago, reflecting
sharply lower volume in January and February, higher raw material and energy
costs, and increased interest expense associated with the Canton facility
purchase."
The Company recently released its 2004 Annual Report and announced its
Annual Meeting of Stockholders would be held on May 26, 2005.
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 Canton, Ohio; 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 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 April 14, 2005.
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NORTH AMERICAN GALVANIZING & COATINGS, INC. AND SUBSIDIARY
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
AND COMPREHENSIVE INCOME (UNAUDITED)
THREE MONTHS ENDED MARCH 31
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(DOLLARS IN THOUSANDS EXCEPT PER SHARE AMOUNTS) 2005 2004
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SALES $ 9,280 $ 8,558
Cost of sales 6,842 6,005
Selling, general & administrative expenses 1,448 1,395
Depreciation expense 619 684
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TOTAL COSTS AND EXPENSES 8,909 8,084
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OPERATING INCOME (LOSS) 371 474
Interest expense, net 225 161
Other income -- (25)
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Income (Loss) before income taxes 146 338
Income tax expense (benefit) 49 128
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NET INCOME (LOSS) $ 97 $ 210
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OTHER COMPREHENSIVE INCOME (LOSS)
Unrealized holding gain on investment -- 19
Less: reclassification adjustment for realized
gain included in net income -- (25)
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OTHER COMPREHENSIVE INCOME (LOSS) $ -- $ (6)
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COMPREHENSIVE INCOME (LOSS) $ 97 $ 204
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NET INCOME (LOSS) PER COMMON SHARE
Continuing Operations:
Basic $ 0.01 $ 0.03
Diluted $ 0.01 $ 0.03
Net Income (Loss):
Basic $ 0.01 $ 0.03
Diluted $ 0.01 $ 0.03