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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) August 18, 1997
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HUNTCO INC.
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(Exact name of registrant as specified in its charter)
Missouri 1-13600 43-1643751
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(State or other (Commission File Number) (IRS Employer
jurisdiction of Identification No.)
incorporation)
14323 S. Outer Forty, Suite 600N, Town & Country, Missouri 63017
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (314) 878-0155
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Not applicable
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(Former name or former address, if changed since last report)
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Item 5. Other Events
Huntco Inc. (the "Company") issued a news release on August 18, 1997, with
respect to its release of earnings for its first quarter ended July 31, 1997,
and provided an update of its outlook for the balance of fiscal 1998. This
news release is incorporated herein by reference to Exhibit 99 attached
hereto.
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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
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Robert J. Marischen,
Vice Chairman & Chief Financial Officer
Date: August 18, 1997
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EXHIBIT INDEX
These Exhibits are numbered in accordance with the Exhibit Table of Item
601 of Regulation S-K:
Exhibit No. Description
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99 News release of August 18, 1997
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HUNTCO INC.
14323 SOUTH OUTER FORTY - SUITE 600N
TOWN & COUNTRY, MISSOURI 63017
FOR IMMEDIATE RELEASE:
HUNTCO REPORTS RESULTS FOR THE FOURTH QUARTER AND YEAR ENDED APRIL 30, 1997.
PROVIDES FORWARD-LOOKING DATA FOR FISCAL 1998. $.035 DIVIDEND DECLARED.
TOWN & COUNTRY, MISSOURI, August 18, 1997 . . . . . Huntco Inc. (NYSE:"HCO"),
a Town & Country based intermediate steel processor, today announced results
of operations for its first quarter of fiscal 1998, which quarter ended July
31, 1997. Net sales for the quarter were $90.5 million, an increase of 15.4%
in comparison to the prior year's first quarter net sales of $78.4 million.
Net income available for common shareholders for the quarter was $1.8 million,
or $.20 per share, which compares to net income available for common
shareholders of $2.6 million, or $.29 per share in the prior year's first
quarter.
The Company declared a dividend of $.035 per common share for common
shareholders of record on August 29, 1997 and payable on September 15, 1997.
The Company attributes the increase in net sales to higher levels of tons
processed, primarily at its new facilities in Kentucky, which opened in July,
1996, and South Carolina, which opened in January, 1997, and at its cold
rolling operation at its Blytheville facility. The Company processed and
shipped a record 266,595 tons of steel in the quarter ended July 31, 1997, an
increase of 15.3% in comparison to the quarter ended July 31, 1996.
Approximately 24.0% of the tons processed in the first quarter of fiscal 1998
represented customer-owned material processed on a per ton, fee basis, versus
a tolling percentage of 23.3% in the prior year first quarter. The Company
sold 56,650 tons of cold rolled products during the quarter ended July 31,
1997 which compares to 40,241 tons in the prior year first quarter. Average
per ton selling values were generally the same in the quarter ended July 31,
1997 when compared to average per ton selling values for the quarter ended
July 31, 1996.
Gross profit expressed as a percentage of net sales was 10.0% for the quarter
ended July 31, 1997, which compares to 11.5% for the quarter ended July 31,
1996 and 9.0% for the quarter ended April 30, 1997.
The Company expects that its net sales for fiscal 1998 will increase by
approximately 20% over fiscal 1997 net sales and believes that second quarter
net sales will reflect an increase over prior year second quarter net sales
near the expected annual percentage rate of increase. The Company anticipates
that its gross profit margins in the second quarter of fiscal 1998 could
decline somewhat due to cold rolled steel price competition, likely ranging
from 9.0% to 10.0% of net sales.
Construction of the second coil pickling line at the Company's Blytheville
facility remains on schedule with completion expected around the end of the
second quarter of fiscal 1998 and with start-up occurring in the third
quarter.
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This press release contains certain statements that are forward-looking and
involve risks and uncertainties. Words such as "expects," "believes," and
"anticipates," and variations of such words and similar expressions are
intended to identify such forward-looking statements. These statements are
based on current expectations and projections concerning the Company's plans
for fiscal 1998 and about the steel processing industry in general, as well as
assumptions made by Company management and are not guarantees of future
performance. Therefore, actual events, outcomes, and results may differ
materially from what is expressed or forecasted in such forward-looking
statements. The Company encourages those who make use of this forward-looking
data to make reference to a complete discussion of the factors which may cause
the forward-looking data to differ materially from actual results which is
contained in the Company's Annual Report and in Form 10-K, both for the year
ended April 30, 1997.
Huntco Inc. is a major, intermediate steel processor, specializing in the
processing of flat rolled carbon steel.
* * * * *
for further information contact:
Robert J. Marischen - Vice Chairman (314) 878-0155
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HUNTCO INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended July 31,
1997 1996
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<S> <C> <C>
Net sales $90,514 $78,430
Cost of sales 81,444 69,437
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Gross profit 9,070 8,993
Selling, general and administrative expenses 4,311 3,631
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Income from operations 4,759 5,362
Interest, net (1,855) (1,201)
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Income before income taxes 2,904 4,161
Provision for income taxes 1,083 1,591
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Net income 1,821 2,570
Preferred dividends 50 -
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Net income available for common shareholders $ 1,771 $ 2,570
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Earnings per common share $ .20 $ .29
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Weighted average common shares outstanding 8,942 8,953
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</TABLE>
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HUNTCO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
July 31, April 30,
1997 1997
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(unaudited) (audited)
<S> <C> <C>
ASSETS
Current assets:
Cash $ 1,339 $ 1,124
Accounts receivable, net 42,718 46,452
Inventories 99,189 105,569
Other current assets 2,350 3,983
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145,596 157,128
Property, plant and equipment, net 142,383 141,436
Other assets 9,185 8,754
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$297,164 $307,318
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LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 50,676 $ 72,569
Accrued expenses 4,047 4,868
Current maturities of long-term debt 200 189
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54,923 77,626
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Long-term debt 111,818 100,877
Deferred income taxes 7,904 7,754
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119,722 108,631
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Shareholders' equity:
Series A Preferred stock (issued and
outstanding, 225; stated at liquidation value) 4,500 4,500
Common stock:
Class A (issued and outstanding, 5,292) 53 53
Class B (issued and outstanding, 3,650) 37 37
Additional paid-in-capital 86,530 86,530
Retained earnings 31,399 29,941
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122,519 121,061
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$297,164 $307,318
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</TABLE>
