<PAGE> 1
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) November 12, 1996
-------------------------
HUNTCO INC.
----------------
(Exact name of registrant as specified in its charter)
Missouri 1-13600 43-1643751
- ----------------- ---------------------- --------------
(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
14323 S. Outer Forty, Suite 600N, Town & Country, Missouri 63017
- ---------------------------------------------------------- ---------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 878-0155
---------------------------
Not applicable
------------------------------------------------------------
(Former name or former address, if changed since last report)
<PAGE> 2
Item 5. Other Events
Huntco Inc. issued a news release on November 11, 1996, with respect to
its earnings release for the quarter ended October 31, 1996, and provided an
update of its outlook for the balance of fiscal 1997. This news release is
incorporated herein by reference to Exhibit 99 attached hereto.
- ------------------------------------------------------------------------------
SIGNATURE
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
HUNTCO INC.
By: /s/ Robert J. Marischen
-------------------------------------
Robert J. Marischen,
Vice Chairman & Chief Financial Officer
Date: November 12, 1996
- ------------------------------------------------------------------------------
EXHIBIT INDEX
These Exhibits are numbered in accordance with the Exhibit Table of Item
601 of Regulation S-K:
Exhibit No. Description
----------- ---------------------------------
99 News release of November 11, 1996
<PAGE>
HUNTCO INC.
14323 SOUTH OUTER FORTY - SUITE 600N
TOWN & COUNTRY, MISSOURI 63017
FOR IMMEDIATE RELEASE:
HUNTCO REPORTS RESULTS FOR SECOND QUARTER. $.035 DIVIDEND DECLARED.
TOWN & COUNTRY, MISSOURI, November 11, 1996 . . . . . Huntco Inc. (NYSE: HCO)
today announced results of operations for its second quarter which ended
October 31, 1996. Net sales were a record $84.0 million, an increase of 35.3%
in comparison to the prior year's second quarter net sales of $62.1 million.
The Company reported net income of $2.4 million, or $.27 per share, for the
quarter ended October 31, 1996, which compares to a net loss of $4.7 million,
or $.52 per share, for the prior year second quarter. Included in the net
loss for the quarter ended October 31, 1995 was a charge for a lower of cost
or market inventory adjustment of $5.0 million, net of income tax benefits, or
$.56 per share.
Net sales for the six month period ended October 31, 1996 were a record $162.4
million, an increase of 38.6% in comparison to net sales of $117.2 million for
the comparable period of the prior year. The Company reported net income for
the six months ended October 31, 1996 of $5.0 million, or $.56 per share,
which compares to a net loss of $3.7 million, or $.42 per share, for the six
month period ended October 31, 1995. The net loss for the six month period
ended October 31, 1995 also reflected the effects of the lower of cost or
market inventory adjustment discussed above.
The Company declared a dividend of $.035 per share for shareholders of record
on November 27, 1996, payable on December 9, 1996.
The improvement in net sales is attributable to increased levels of tons
processed. The Company processed a record 238,729 tons of steel in the
quarter ended October 31, 1996, an increase of 34.4% in comparison to the
quarter ended October 31, 1995. The Company processed 470,038 tons of steel
in the six month period ended October 31, 1996, an increase of 34.3% in
comparison to prior year amounts. Approximately 21.1% and 22.2% of the tons
processed in the three and six month periods ended October 31, 1996,
respectively, represented customer owned material processed on a per ton, fee
basis.
The Company indicated that its gross profit margins were under pressure,
especially late in the second quarter, due to higher domestic prices for its
primary raw material, hot rolled steel coils, when significant quantities of
lower priced imported material were available in its market territories.
Further, the Company has continued to purchase a majority of its raw material
requirements from domestic suppliers in order to maximize its inventory
turnover rates. In light of these factors, additional announced price
increases effective January 1, 1997 by Nucor, the Company's major supplier of
hot rolled steel coils, and an extremely competitive environment, the Company
expects that this margin pressure will continue, and may become more severe
during the holiday season in November and December when there are fewer
shipping days. If this occurs, the 11% gross profit margin realized by the
Company during the first six months of the 1997 fiscal year may reflect the
high end of the possible range of gross profit percentages which may be
realized for the third quarter and possibly for the entire second half of the
year. As such, it now appears that gross profits could decline to a range of
9% to 11% of net sales during the third quarter, with a recovery to
approximately 11% expected in the fourth quarter. The Company encourages those
who make use of this forward-looking data to make reference to the discussion
found under the title "Risk Factors - 1997 Forecast" included within Item 7,
Management's Discussion and Analysis of Financial Condition and Results of
Operations, of the Company's Annual Report on Form 10-K for the year ended
April 30, 1996, as filed with the Securities and Exchange Commission on July
26, 1996.
The Company stated that it was proceeding with due diligence in regard to the
previously announced acquisition of certain assets of Coil-Tec, Inc. and that
a closing was still expected before the end of the calendar year. Further
information concerning the terms of the acquisition will not be released until
completion of the negotiation of a definitive agreement.
Huntco Inc. is an intermediate steel processor, specializing in the processing
of flat rolled carbon steel.
<PAGE>
HUNTCO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, dollars in thousands, except per share amounts)
<TABLE>
<CAPTION>
Six Months Three Months
Ended October 31 Ended October 31
1996 1995 1996 1995
------- ------- ------ ------
<S> <C> <C> <C> <C>
Net sales $162,413 $117,178 $83,983 $62,072
Cost of sales 144,213 115,884 74,777 65,552
------- ------- ------ ------
Gross profit (loss) 18,200 1,294 9,206 (3,480)
Selling, general and
administrative expenses 7,444 6,092 3,813 3,097
------- ------- ------ ------
Income (loss) from operations 10,756 (4,798) 5,393 (6,577)
Other income (expense):
Interest, net (2,694) (1,137) (1,492) (810)
Other, net - 2 - 2
------- ------- ------ ------
Income (loss) before
income taxes 8,062 (5,933) 3,901 (7,385)
Provision (benefit) for
income taxes 3,075 (2,186) 1,484 (2,732)
------- ------- ------ ------
Net income (loss) $ 4,987 $ (3,747) $ 2,417 $(4,653)
======= ======= ====== ======
Earnings (loss) per share $ .56 $ (.42) $ .27 $ (.52)
===== ===== ===== =====
Weighted average
common shares outstanding 8,952 8,940 8,951 8,940
===== ===== ===== =====
</TABLE>
<PAGE>
HUNTCO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
<TABLE>
<CAPTION>
October 31, April 30,
1996 1996
---------- --------
(unaudited) (audited)
<S> <C> <C>
ASSETS
Current assets:
Cash $ 2,614 $ 2,737
Accounts receivable, net 39,918 36,804
Inventories 65,143 53,964
Other current assets 2,164 1,926
------- -------
109,839 95,431
Property, plant and equipment, net 131,697 120,338
Goodwill 4,857 5,001
Other assets 1,477 1,667
------- -------
$247,870 $222,437
======= =======
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 24,631 $ 29,003
Accrued expenses 1,674 3,934
Current maturities of long-term debt 189 189
------- -------
26,494 33,126
------- -------
Long-term debt 98,972 73,066
Deferred income taxes 6,632 4,879
------- -------
105,604 77,945
------- -------
Shareholders' equity:
Preferred stock (issued and outstanding, none) - -
Common stock:
Class A (issued and outstanding, 5,292) 53 53
Class B (issued and outstanding, 3,650) 37 37
Additional paid-in-capital 86,567 86,567
Retained earnings 29,115 24,709
------- -------
115,772 111,366
------- -------
$247,870 $222,437
======= =======
</TABLE>
