SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 OR 15 (d) of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): February 17, 1998
ROANOKE ELECTRIC STEEL CORPORATION
(Exact name of Registrant as specified in its charter)
Virginia 0-2389 54-0585263
(State or other jurisdiction (Commission (I.R.S. Employer
of incorporation ) File Number) Identification No.)
102 Westside Blvd., N.W., Roanoke, Virginia 24017
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (540) 342-1831
N/A
(Former name, former address and former fiscal year, if
changed since last report)
Item 5. Other Events.
See press release attached hereto as Exhibit 99.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
99 - Press Release dated February 17, 1998
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 hereunto duly authorized.
ROANOKE ELECTRIC STEEL CORPORATION
By Donald G. Smith
Donald G. Smith
Chairman and Chief Executive Officer
Date: February 17, 1998
EXHIBIT NO. 99
NEWS RELEASE FOR IMMEDIATE RELEASE
CONTACT: T. Joe Crawford
(540) 342-1831
ROANOKE ELECTRIC STEEL CORPORATION REPORTS STRONG
FIRST QUARTER RESULTS; BOARD SPLITS STOCK 3-FOR-2
AND RAISES QUARTERLY DIVIDEND
ROANOKE, Virginia, February 17, 1998 -- Roanoke Electric Steel
Corporation (NASDAQ-NNM: RESC) today reported earnings for the first
quarter ended January 31, 1998 of $4,250,992, or 57 cents per share of
common stock, a 64.5 percent increase from the $2,584,674, or 34 cents
per share, earned in the first quarter last year. Sales for the 1998
first quarter were $71,603,735, a 22.7 percent increase from sales
of $58,351,734 reported for the same period last year.
In a separate action, the company reported that at a special meeting
of the Board of Directors held February 17, 1998, the Board declared a
3-for-2 common stock split and increased the regular quarterly cash dividend
rate by 9.6 percent.
The stock split will be payable March 25, 1998 to shareholders of
record March 6, 1998. Each shareholder will receive one additional share
of common stock for each two shares held on the record date, with cash
being paid in lieu of issuing fractional shares. The stock split will
result in the issuance of approximately 3,738,000 shares, bringing the total
outstanding shares to roughly 11,213,000 after the split.
The new quarterly cash dividend rate, after giving effect to the 3-for-2
split, will be 9.5 cents per share of common stock, which equates to an
annual dividend rate of 38 cents per share. This is equivalent to 57 cents
on the pre-split shares, or a 9.6 percent increase over the 52 cents per
share paid annually on the old shares. This latest dividend increase
follows an 8.3 percent increase in the dividend rate in August 1997, which
amounts to an 18.8 percent increase in the dividend rate in the last six
months.
Donald G. Smith, Chairman and Chief Executive Officer, stated:
"The stock split declared today by the Board is
intended to further broaden the market for our
common stock, while the dividend increase
reflects the strong conditions in the steel
industry and the Board's confidence in the
company's ability to sustain the excellent
earnings.
"The substantial improvement in results for the
first quarter was attributable to improved gross
profit margins and increased shipments of
fabricated products and billets. Billet
shipments nearly doubled 1997 levels due to
stronger demand and lower excess billet
availability in the market. Gross profit margins
benefitted from higher selling prices for mill
products and billets and reduced unit conversion
costs as a result of higher production levels.
"Business and market conditions continued strong
during the quarter, which enabled us to sustain
high levels of shipments, production, selling
prices and backlogs for all product classes. We
remain encouraged and
look for improved earnings in the second quarter
over last year."
ROANOKE ELECTRIC STEEL CORPORATION
3 Months Ended
1/31/98 1/31/97
Net Sales $71,603,735 $58,351,734
Earnings Before Income Taxes $ 7,076,891 $ 4,297,387
Income Tax Expense $ 2,825,899 $ 1,712,713
Net Earnings $ 4,250,992 $ 2,584,674
Net Earnings Per Share of Common Stock
Basic $ .57 $ . 34
Diluted $ .56 $ .34
Weighted Average Shares Outstanding
Basic 7,474,208 7,503,026
Diluted 7,544,714 7,539,468
Roanoke Electric Steel Corporation is a mini-mill producer of finished
steel products, consisting of angles, rounds, flats and channels, which are
sold to steel fabricators and steel service centers, and semi-finished steel
billets, which are sold to other steel producers. Four subsidiaries are
involved in various steel-related activities, consisting of steel scrap
processing, steel bar joist fabrication and reinforcing bar fabrication.
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