SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q
(Mark One)
[X] QUARTERLY REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarterly period ended June 30, 2000
OR
[ ] TRANSITION REPORT PURSUANT TO SECTION 13
OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from __________ to __________
Commission file number 0-14061
STEEL TECHNOLOGIES INC.
(Exact name of registrant as specified in its charter)
Kentucky 61-0712014
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
15415 Shelbyville Road, Louisville, KY 40245
---------------------------------------------------------------
(Address of principal executive offices) (Zip Code)
(502) 245-2110
(Registrant's telephone number, including area code)
Not applicable
--------------------------------------------------------------------------------
(Former name, former address and former fiscal year, if changed since last
report)
Indicate by check mark whether the Registrant (1) has filed all reports required
to be filed by Sections 13 or 15(d) of the Securities Exchange Act of 1934
during the preceding 12 months (or for such shorter period that the Registrant
was required to file such reports), and (2) has been subject to such filing
requirements for the past 90 days. Yes X No
There were 10,630,625 shares outstanding of the Registrant's common stock as of
July 31, 2000.
1
<PAGE>
STEEL TECHNOLOGIES INC.
INDEX
Page Number
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets June 30, 2000
(Unaudited) and September 30, 1999 (Audited) ...................... 3
Condensed Consolidated Statements of Income and Comprehensive
Income Three months and Nine months ended June 30, 2000 and 1999
(Unaudited) ........................................................ 4
Condensed Consolidated Statements of Cash Flows
Nine months ended June 30, 2000 and 1999 (Unaudited) .............. 5
Notes to Condensed Consolidated Financial Statements (Unaudited) .. 6-8
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations ............................................. 9-13
Item 3. Quantitative and Qualitative Disclosures About Market
Risk .............................................................. 13
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K .................................. 14
2
<PAGE>
Part I. - FINANCIAL INFORMATION
Item 1. Financial Statements
STEEL TECHNOLOGIES INC.
Condensed Consolidated Balance Sheets
<TABLE>
<CAPTION>
June 30 September 30
2000 1999
----------- ------------
(In thousands) (Unaudited) (Audited)
--------------------------------------------------------------------------------
<S> <C> <C>
ASSETS
Current assets:
Cash and cash equivalents ................... $ 1,427 $ 12,578
Trade accounts receivable, net .............. 70,616 54,389
Inventories ................................. 98,722 80,625
Deferred income taxes ....................... 2,851 2,426
Prepaid expenses and other assets ........... 1,089 474
--------- ---------
Total current assets ..................... 174,705 150,492
Property, plant and equipment, net ............. 117,944 107,953
Investments in corporate joint ventures ........ 20,735 19,858
Goodwill, net of amortization .................. 19,329 9,664
Other assets ................................... 2,004 1,138
--------- ---------
$ 334,717 $ 289,105
========= =========
LIABILITIES AND SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable ............................ $ 52,275 $ 44,649
Accrued liabilities ......................... 7,300 9,139
Income taxes payable ........................ 1,383 595
Long-term debt due within one year .......... 6,248 6,691
--------- ---------
Total current liabilities ................ 67,206 61,074
Long-term debt ................................. 125,362 90,209
Deferred income taxes .......................... 14,881 12,904
Other long term liabilities .................... 192 479
--------- ---------
Total liabilities ........................ 207,641 164,666
--------- ---------
Commitments and contingencies .................. -- --
Shareholders' equity:
Preferred stock ............................. -- --
Common stock ................................ 17,273 17,140
Treasury stock .............................. (12,506) (7,123)
Additional paid-in capital .................. 4,909 4,909
Retained earnings ........................... 119,411 111,311
Accumulated other comprehensive loss ........ (2,011) (1,798)
--------- ---------
Total shareholders' equity ................ 127,076 124,439
--------- ---------
$ 334,717 $ 289,105
========= =========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
3
<PAGE>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Income
<TABLE>
<CAPTION>
(In thousands, except per share results)Three Months Ended Nine Months Ended
(Unaudited) June 30 June 30
--------------------------------------------------------------------------------
2000 1999 2000 1999
------------------------------------------
<S> <C> <C> <C> <C>
Sales ................................ $121,936 $109,248 $347,736 $314,342
Cost of goods sold ................... 109,349 93,136 307,308 270,752
-------- -------- -------- --------
Gross profit ................... 12,587 16,112 40,428 43,590
Selling, general and
administrative expenses ........... 7,269 6,850 21,364 19,630
Equity in net income of unconsolidated
corporate joint venture ............ 268 355 877 627
-------- -------- -------- --------
Operating income .................. 5,586 9,617 19,941 24,587
Interest expense ..................... 1,847 2,412 5,130 5,940
-------- -------- -------- --------
Income before income taxes ........ 3,739 7,205 14,811 18,647
Provision for income taxes ........... 1,187 2,723 5,314 7,281
-------- -------- -------- --------
Net income ....................... $ 2,552 $ 4,482 $ 9,497 $ 11,366
-------- -------- -------- --------
Diluted weighted average number of
common shares outstanding ......... 10,739 11,157 10,952 11,281
======== ======== ======== ========
Diluted earnings per common share .... $ 0.24 $ 0.40 $ 0.87 $ 1.01
======== ======== ======== ========
Basic weighted average number of
common shares outstanding ......... 10,730 11,128 10,903 11,262
======== ======== ======== ========
Basic earnings per common share ...... $ 0.24 $ 0.40 $ 0.87 $ 1.01
======== ======== ======== ========
Cash dividends per common share ...... $ 0.06 $ 0.06 $ 0.12 $ 0.11
======== ======== ======== ========
</TABLE>
Condensed Consolidated Statements of Comprehensive Income
<TABLE>
<CAPTION>
(In thousands) Three Months Ended Nine Months Ended
(Unaudited) June 30 June 30
--------------------------------------------------------------------------------
2000 1999 2000 1999
---------------------------------------------
<S> <C> <C> <C> <C>
Net income ........................ $ 2,552 $ 4,482 $ 9,497 $ 11,366
Foreign currency translation
adjustment ................ (194) 26 (213) (735)
-------- -------- -------- --------
Comprehensive income .............. $ 2,358 $ 4,508 $ 9,284 $ 10,631
======== ======== ======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
4
<PAGE>
STEEL TECHNOLOGIES INC.
Condensed Consolidated Statements of Cash Flows
<TABLE>
<CAPTION>
(In thousands) Nine months ended
(Unaudited) June 30
--------------------------------------------------------------------------------
2000 1999
---------------------
<S> <C> <C>
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income ......................................... $ 9,497 $ 11,366
Adjustments to reconcile net income to net cash
(used in) provided by operating activities:
Depreciation ................................... 9,857 9,271
Amortization ................................... 442 285
Deferred income taxes .......................... 1,366 (270)
Equity in net income of unconsolidated corporate
joint venture .................................. (877) (627)
Loss on sale of assets ......................... 13 8
Increase (decrease) in cash resulting from
changes in:
Trade accounts receivable ................ (14,524) (11,448)
Inventories .............................. (16,363) 5,276
Prepaid expenses and other assets ....... (523) (1,003)
Accounts payable ......................... 5,621 (287)
Accrued liabilities and income taxes ..... (2,180) 5,190
-------- --------
Net cash (used in) provided by operating activities ... (7,671) 17,761
-------- --------
CASH FLOWS FROM INVESTING ACTIVITIES:
Purchases of property, plant and equipment ......... (16,442) (13,171)
Proceeds from sale of property, plant and equipment 328 1,365
Acquisition, net of cash acquired .................. (12,122) --
Investment in unconsolidated joint venture ......... -- (600)
------ --------
Net cash used in investing activities ................. (28,236) (12,406)
------ --------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term debt ....................... 39,000 9,000
Principal payments on long-term debt ............... (6,872) (8,435)
Cash dividends on common stock ..................... (1,311) (1,240)
Repurchase of common stock ......................... (5,383) (3,331)
Net issuance of common stock ....................... 46 --
Net issuance of common stock under
stock option plans ............................... -- 105
Other .............................................. (700) --
-------- --------
Net cash provided by financing activities ............. 24,780 (3,901)
-------- --------
Effect of exchange rate changes on cash ............... (24) (63)
-------- --------
Net decrease in cash and cash equivalents ............. (11,151) 1,391
Cash and cash equivalents, beginning of year .......... 12,578 4,778
-------- --------
Cash and cash equivalents, end of period .............. $ 1,427 $ 6,169
======== ========
Supplemental Cash Flow Disclosures:
Cash payment for interest ............................. $ 5,618 $ 5,554
======== ========
Cash payment for income taxes ......................... $ 5,741 $ 7,966
======== ========
</TABLE>
The accompanying notes are an integral part of the condensed consolidated
financial statements.
5
<PAGE>
STEEL TECHNOLOGIES INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. BASIS OF PRESENTATION:
The condensed consolidated balance sheet as of June 30, 2000 and the condensed
consolidated statements of income and comprehensive income for the three and
nine months ended June 30, 2000 and 1999, and condensed consolidated cash flows
for the nine months ended June 30, 2000 and 1999 have been prepared by the
Company without audit. In the opinion of management, all adjustments (which
include only normal recurring adjustments) necessary to present fairly the
financial position, results of operations and cash flows at June 30, 2000 and
for all periods presented have been made.
Certain information and footnote disclosures normally included in financial
statements prepared in accordance with generally accepted accounting principles
have been condensed or omitted. It is suggested that these condensed financial
statements be read in conjunction with the financial statements and notes
thereto included in the Company's annual report to shareholders for the year
ended September 30, 1999. The results of operations for the nine months ended
March 31, 2000 are not necessarily indicative of the operating results for the
full year.
2. INVENTORIES:
<TABLE>
<CAPTION>
Inventory consists of:
June 30 September 30
2000 1999
---------- ------------
(In thousands) Unaudited Audited
------------------------------------------------------------------------------
<S> <C> <C>
Raw materials .................................... $ 78,821 $ 64,139
Finished goods and work in process ............... 19,901 16,486
---------- ----------
$ 98,722 $ 80,625
========== ==========
</TABLE>
6
<PAGE>
3. NET INCOME PER SHARE COMPUTATIONS:
The following is a reconciliation of the denominator of the basic and diluted
per share computations:
<TABLE>
<CAPTION>
Three Months Ended Nine Months Ended
(In thousands, except per share results) June 30 June 30
--------------------------------------------------------------------------------
2000 1999 2000 1999
------------------------------------------
<S> <C> <C> <C> <C>
Net income ........................... $ 2,552 $ 4,482 $ 9,497 $11,366
------- ------- ------- -------
Shares (denominator) used for
diluted per share computations:
Weighted average shares of common
stock outstanding ............. 10,730 11,128 10,903 11,262
Plus: dilutive effect of stock
options ....................... 9 29 49 19
------- ------- ------- -------
Diluted weighted average shares 10,739 11,157 10,952 11,281
------- ------- ------- -------
Shares (denominator) used for
basic per share computations:
Weighted average shares of common
stock outstanding ............. 10,730 11,128 10,903 11,262
------- ------- ------- -------
Net income per share data:
Diluted .......................... $ 0.24 $ 0.40 $ 0.87 $ 1.01
======= ======= ======= =======
Basic ............................ $ 0.24 $ 0.40 $ 0.87 $ 1.01
======= ======= ======= =======
</TABLE>
Options to purchase 587,500 and 518,000 shares at June 30, 2000 and 1999,
respectively were excluded from the calculations above because the exercise
prices on the options were greater than the average market price of the
Company's stock during the periods.
4. ACQUISITION:
On January 12, 2000 the Company completed the purchase of Custom Steel, Inc. and
Custom Steel Processing Corp., collectively referred to as Custom Steel. The
purchase price included $13,350,000 in cash and the assumption of $5,800,000 of
liabilities. Additional contingent payments of up to $3,540,000 may also be made
during the next three years. The Company financed the acquisition with existing
credit facilities. The Custom Steel acquisition has been accounted for under the
purchase method of accounting. Accordingly, the results of the operations of
Custom Steel have been included in the consolidated financial statements from
the date of acquisition.
7
<PAGE>
5. SHAREHOLDERS' EQUITY
During 2000, the Company amended its restated articles of incorporation to
increase the number of authorized common shares from 20,000,000 to 50,000,000.
On April 28, 2000, the Board of Directors authorized the repurchase, at
management's discretion, of up to 2,500,000 shares of its common stock. This
recent approval increased the number of shares the Company may purchase to
2,500,000 shares from 1,500,000 shares, an increase of 1,000,000 shares.
6. IMPACT OF RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS:
In December 1999, the staff of the Securities and Exchange Commission issued
Staff Accounting Bulletin No. 101 (SAB 101), "Revenue Recognition in Financial
Statements". SAB 101 summarizes some of the staff's interpretations of the
application of generally accepted accounting principles to revenue recognition.
The Company is expected to apply the accounting and disclosure requirements that
are described in SAB 101 no later than July 1, 2001. Management of the Company
is currently analyzing the impact of SAB 101 but anticipates the adoption of SAB
101 will not have a material impact on the Company's results of operations or
its financial position.
8
<PAGE>
Item 2. Management's Discussion and Analysis of Financial Condition and Results
of Operations
When used in the following discussion, the word "expects" and other similar
expressions are intended to identify forward-looking statements, which are made
pursuant to the safe harbor provisions of the Private Securities Litigation
Reform Act of 1995. Such forward-looking statements are subject to certain risks
and uncertainties that could cause actual results to differ materially from
those projected. Specific risks and uncertainties include, but are not limited
to, general business and economic conditions; cyclicality of demand in the steel
industry, specifically in the automotive market; work stoppages; risks of
business interruptions affecting automotive manufacturers; competitive factors
such as pricing and availability of steel; reliance on key customers; ability to
integrate acquisitions; and potential equipment malfunctions. Readers are
cautioned not to place undue reliance on these forward-looking statements, which
speak only as of the date hereof. The Company undertakes no obligation to
republish revised forward-looking statements to reflect the occurrence of
unanticipated events or circumstances after the date hereof.
Results of Operations
---------------------
Steel Technologies posted record third quarter sales of $121,936,000 for the
fiscal quarter ended June 30, 2000, an increase of 12% from sales of
$109,248,000 for the third quarter ended June 30, 1999. Tons shipped of
Company-owned steel products in the third quarter of fiscal 2000 increased
approximately 9% compared to the third quarter of fiscal 1999 while the average
selling price of Company-owned steel products for the third quarter fiscal 2000
increased approximately 3% from the previous year. Custom Steel Inc. and Custom
Steel Processing Corp., collectively Custom Steel (now wholly owned subsidiaries
of the Company), acquired on January 12, 2000, added $6,400,000 of revenues for
the third quarter of fiscal 2000. Sales of existing Steel Technologies steel
processing operations increased by approximately $6,288,000 or 6% from a year
ago.
Sales for the nine months ended June 30, 2000 increased by 11% to a record
$347,736,000 compared to $314,342,000 for the nine months ended June 30, 1999.
Sales of existing Steel Technologies steel processing operations excluding
Custom Steel increased by approximately $22,128,000 or 7% from the previous
year's first nine months.
Tons shipped in the first nine months of fiscal 2000 increased approximately 8%
compared to the first nine months of fiscal 1999. Average selling prices of
steel for the first nine months of fiscal 2000 increased approximately 2% as
compared to the previous year. The sales outlook is solid based on order
activity and backlogs.
The Company focuses significant resources on the automotive industry and
generates a major portion of business from selling manufacturing component parts
to the automotive industry. The Company continues to increase market share and
to develop a substantial amount of new business with both existing and new
customers.
9
<PAGE>
The gross profit margin was 10.3% and 11.6% in the third quarter and nine months
of fiscal 2000, respectively compared to 14.7% and 13.9% in the third quarter
and nine months of fiscal 1999, respectively. The decreases are primarily the
result of increases in raw material prices as compared to the first nine months
of last year. Strong demand for steel products and the efforts of the domestic
steel industry to curtail alleged unfair trade practices of certain foreign
steel importers have significantly reduced the amount of imported flat rolled
products flowing into the United States. As a result, the supply of steel from
foreign producers has declined significantly in fiscal 2000, and resulted in the
domestic producers increasing raw material prices. The Company does not expect
further increases in raw material costs through the balance of fiscal 2000. In
general, production cost efficiencies and product mix improvements may
positively impact gross margins and somewhat offset rising raw material costs.
Additionally, an increase in the use of the Company's pickling facility and
blanking lines are expected to increase the amount of higher margin toll
processing revenue for the remainder of fiscal 2000. Toll processing, primarily
of customer-owned steel, generates higher gross margin percentages than the
traditional processing of Company-owned steel.
Steel Technologies continues to actively manage the level at which selling,
general and administrative costs are added to its cost structure. Selling,
general and administrative costs increased approximately 6% and 9%, respectively
from the comparable third quarter and first nine months of fiscal 1999 period.
Selling, general and administrative expenses as a percentage of sales were 6.0%
for the third quarter of fiscal 2000 as compared to 6.3% for the third quarter
of fiscal 1999. Selling, general and administrative expenses as a percentage of
sales were 6.1% for the nine months ended June 30, 2000 and 6.2% for the
comparable period last year. The increase in selling, general and administrative
expenses was primarily attributable to additional expenses from the addition of
Custom Steel and additional marketing expenses to support recent capacity
expansions in Ohio and South Carolina and sales growth in Mexico.
The Company's share of the income of Mi-Tech Steel, Inc., (Mi-Tech) an
unconsolidated corporate joint venture, was $268,000 and $877,000, respectively
for the third quarter and nine months of fiscal 2000 compared to $355,000 and
$627,000, respectively for the third quarter and nine months ended June 30,
1999. Improvements in demand for Mi-Tech products and services positively
impacted Mi-Tech's profitability for the first nine months of fiscal 2000 as
compared to the first nine months of fiscal 1999. The Company expects a positive
income contribution from Mi-Tech during the fourth quarter of fiscal 2000.
10
<PAGE>
Net interest expense for the third quarter of fiscal 2000 was $1,847,000
compared to $2,412,000 for the third quarter of fiscal 1999. Net interest
expense for the first nine months of fiscal 2000 was $5,130,000 compared to
$5,940,000 for first nine months of fiscal 1999. Although average borrowings and
the interest rate for borrowings increased during the first nine months of
fiscal 2000 compared to fiscal 1999, net interest expense decreased because of
the amortization of a gain generated by terminating an interest rate swap
agreement in the third quarter of fiscal 1999, foreign currency transaction
gains generated from operations in Mexico and interest capitalized from
construction in process in Matamoros, Mexico.
The Company's effective income tax rate was approximately 31.7% and 35.9%,
respectively for the third quarter and nine months of fiscal 2000 compared to
37.8% and 39.0% for the comparable periods of fiscal 1999. The decrease is
attributable to a higher percentage of overall earnings from the Mi-Tech joint
venture, which are not fully taxable to the Company, a reduction in state income
taxes realized from restructuring the Company in fiscal 2000 and lower taxable
earnings for the Company's Mexican subsidiary.
Liquidity and Capital Resources
-------------------------------
As of June 30, 2000, Steel Technologies had $107,499,000 of working capital,
maintained a current ratio of 2.6:1 and had total debt at 51% of total
capitalization. The Company continues to manage the levels of accounts
receivable, inventories and other working capital items in relation to the
trends in sales and the overall market. For the first nine months of fiscal
2000, increased inventory levels and higher accounts receivable to support the
growth in sales, partially offset with an increase in accounts payable
contributed to the use of $7,671,000 of cash from operations. Cash flows from
operations and available borrowing capabilities are expected to meet the needs
of the Company throughout fiscal 2000.
Capital expenditures excluding acquisition for the nine months of fiscal 2000
totaled $16,442,000. The major expenditures were for the construction of the new
Matamoros, Mexico facility, the completion of the Ohio plant expansion and other
capacity expansion projects. Steel Technologies continues to expand production
capacity and processing facilities to serve the growing needs of customers. For
fiscal 2000, the capital additions to all facilities, including the completion
of the construction of the Matamoros, Mexico facility, expansion of Steel
Technologies processing capabilities and the recently completed acquisition of
Custom Steel are expected to approximate $30,000,000.
11
<PAGE>
On January 12, 2000 the Company completed the purchase of Custom Steel. The
purchase price included $13,350,000 in cash and the assumption of $5,800,000 of
liabilities. Additional contingent payments of up to $3,540,000 may also be made
during the next three years. The Company financed the acquisition with existing
credit facilities. The Custom Steel acquisition has been accounted for under the
purchase method of accounting. Accordingly, the results of the operations of
Custom Steel have been included in the consolidated financial statements from
the date of acquisition.
Steel Technologies maintains an equity investment of approximately $17,657,000
in its 90%-owned Mexican subsidiary.
As of January 1, 1999, the Mexican subsidiary uses the peso as the functional
currency and the assets and liabilities of the Mexican subsidiary are translated
into U.S. dollars at the period end rate of exchange, and revenues and expenses
are translated at average rates of exchanges in effect during the periods.
Resulting translation adjustments are reported as a component of comprehensive
income. Foreign currency transaction gains and losses are included in net income
when incurred. Prior to January 1, 1999, the Mexican economy was considered
hyper-inflationary. Accordingly, the Company used the monetary/non-monetary
method of accounting for foreign currency translation. Under the
monetary/non-monetary method, non-monetary assets and liabilities were
translated at historical rates of exchange and the functional currency was the
U.S. dollar.
The Company maintains an investment of approximately $1,000,000, principally in
the preferred stock of Processing Technology, Inc., a corporate joint venture
accounted for using the cost method.
Pursuant to a joint venture agreement, Steel Technologies has guaranteed
$8,250,000 of the bank financing required for the working capital purposes of
Mi-Tech. Additional equity contributions to the joint venture are not expected
for the foreseeable future, but, if required, would be financed with available
funds from the Company's bank line of credit.
The Company has a $100,000,000 line of credit agreement expiring on December 31,
2001, with various variable options on the interest rate, none of which are
greater than the bank's prime. During the first nine months of fiscal 2000, the
Company borrowed $39,000,000 for the purchase of Custom Steel, construction of
the Matamoros, Mexico facility and for working capital needs. At June 30, 2000,
there was $96,000,000 outstanding on the credit facility.
In April 2000, the Company entered into an additional $15,000,000 line of credit
agreement expiring on December 31, 2000, with various variable options on the
interest rate, none of which are greater than the bank's prime. As of June 30,
2000, there were no borrowings outstanding on this credit facility.
12
<PAGE>
The lines of credit are expected to be sufficient to finance the capital
expenditure plans as well as the working capital needs for fiscal 2000. At this
time, the Company has no known material obligations, commitments or demands that
must be met beyond the next twelve months other than the ten-year private
placement notes and the unsecured bank lines of credit. The ten-year notes
require principal payments through March 2005 and the $100,000,000 line of
credit is expected to be renewed at the end of the term. The Company expects to
retire the additional $15,000,000 line of credit upon maturity. Any additional
funds will be used for growth, including strategic acquisitions, investment in
joint ventures, construction of new plant capacity, and investment in production
and processing capabilities. The form of such financing may vary depending upon
the prevailing market and related conditions, and may include short or long-term
borrowings or the issuance of debt or equity securities.
At June 30, 2000, Steel Technologies had $131,610,000 of long-term debt
outstanding. Under various debt agreements, the Company agrees to maintain
specified levels of working capital and net worth, maintain certain ratios and
limit the addition of substantial debt. The Company is in compliance with all
loan covenants, and none of these covenants would restrict the completion of
currently planned capital expenditures.
On April 28, 2000, the Board of Directors approved an additional plan under
which the Company may repurchase 2,500,000 shares of its common stock. This
recent approval increased the number of shares the Company may purchase to
2,500,000 shares from 1,500,000 shares, an increase of 1,000,000 shares. Shares
may be purchased from time to time at prevailing prices in open market
transactions, subject to market conditions, share price and other
considerations. From the inception of the program, the Company repurchased
approximately 1,381,000 shares of common stock, including 581,000 during the
first nine months of fiscal 2000.
Steel Technologies believes all manufacturing facilities are in compliance with
applicable federal and state environmental regulations. The Company is not
presently aware of any fact or circumstance, which would require the expenditure
of material amounts for environmental compliance.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
There has been no material change during the first nine months ended June 30,
2000 from the disclosures about market risk provided in the Company's Annual
Report on Form 10-K for the year ended September 30, 1999.
13
<PAGE>
Part II. - Other Information
Item 6. Exhibits and Reports on Form 8-K
(a) The following exhibit is filed as a part of this report:
EXHIBIT 27 -- FINANCIAL DATA SCHEDULE
14
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
STEEL TECHNOLOGIES INC.
(Registrant)
By ___________________________________
Joseph P. Bellino
Chief Financial Officer
(Principal Financial and
Chief Accounting Officer)
Dated August 11, 2000
