UNITED STATES
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 September 30, 1998, 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: 1-13600
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HUNTCO INC.
------------------------------------------------------
(Exact name of registrant as specified in its charter)
MISSOURI 43-1643751
- ------------------------------- -------------------
(State or other jurisdiction of (I.R.S. Employer
incorporation or organization) Identification No.)
14323 SOUTH OUTER FORTY, SUITE 600N, TOWN & COUNTRY, MISSOURI 63017
--------------------------------------------------------------------
(Address of principal executive offices)
(314) 878-0155
--------------
(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 Section 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. [X] Yes [ ] No
As of November 11, 1998, the number of shares outstanding of each class
of the Registrant's common stock was as follows: 5,292,000 shares of Class A
common stock and 3,650,000 shares of Class B common stock.
<PAGE>
HUNTCO INC.
INDEX
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Condensed Consolidated Balance Sheets
September 30, 1998 (Unaudited) and December 31, 1997 (Audited)
Condensed Consolidated Statements of Operation
Nine and Three Months Ended September 30, 1998 and 1997 (Unaudited)
Condensed Consolidated Statement of Cash Flows
Nine Months Ended September 30, 1998 and 1997 (Unaudited)
Notes to Condensed Consolidated Financial Statements (Unaudited)
Item 2. Management's Discussion and Analysis of Financial
Condition and Results of Operations
PART II. OTHER INFORMATION
Item 6. Exhibits and Reports on Form 8-K
<PAGE> PART I. FINANCIAL INFORMATION
-----------------------------------
Item 1. Financial Statements
-----------------------------------
HUNTCO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
---------- -----------
(unaudited) (audited)
<S> <C> <C>
ASSETS
Current assets:
Cash $ 18 $ 27
Accounts receivable, net 49,714 41,643
Inventories 88,524 81,612
Other current assets 2,341 5,015
-------- --------
140,597 128,297
Property, plant and equipment, net 146,575 145,777
Other assets 11,436 11,191
-------- --------
$298,608 $285,265
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 47,792 $ 40,027
Accrued expenses 2,754 3,879
Current maturities of long-term debt 7,358 209
-------- --------
57,904 44,115
-------- --------
Long-term debt 111,153 110,730
Deferred income taxes 9,293 9,415
-------- --------
120,446 120,145
-------- --------
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 29,138 29,885
-------- --------
120,258 121,005
-------- --------
$298,608 $285,265
======== ========
See Accompanying Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
HUNTCO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATION
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
Nine Months Three Months
Ended September 30 Ended September 30
1998 1997 1998 1997
------- ------- ------- ------
<S> <C> <C> <C> <C>
Net sales $310,744 $273,061 $95,646 $93,903
Cost of sales 290,070 248,489 90,490 85,736
------- ------- ------ ------
Gross profit 20,674 24,572 5,156 8,167
Selling, general and
administrative expenses 14,615 12,603 4,897 4,287
------- ------- ------ ------
Income from operations 6,059 11,969 259 3,880
Interest, net (6,012) (5,557) (1,995) (1,976)
------- ------- ------ ------
Income (loss) before income taxes 47 6,412 (1,736) 1,904
Provision (benefit) for income taxes 17 2,419 (632) 707
------- ------- ------ ------
Net income (loss) 30 3,993 (1,104) 1,197
Preferred dividends 150 133 50 50
------- ------- ------ ------
Net income (loss) available
for common shareholders $ (120) $ 3,860 $(1,154) $ 1,147
======= ======= ====== ======
Earnings (loss) per common share
(basic and diluted) $ (.01) $ .43 $ (.13) $ .13
===== ===== ===== =====
Weighted average
common shares outstanding:
Basic 8,942 8,942 8,942 8,942
===== ===== ===== =====
Diluted 8,962 8,946 8,942 8,954
===== ===== ===== =====
See Accompanying Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
HUNTCO INC.
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS
(unaudited, in thousands)
<TABLE>
<CAPTION>
Nine Months
Ended September 30,
1998 1997
------- -------
<S> <C> <C>
Cash flows from operating activities:
Net income $ 30 $ 3,993
------- -------
Adjustments to reconcile net income to net
cash provided (used) by operating activities:
Depreciation and amortization 7,453 6,524
Other (428) (185)
Decrease (increase) in:
accounts receivable (8,071) (12,873)
inventories (6,911) (27,893)
other current assets 2,673 1,139
other assets (888) (4,725)
Increase (decrease) in:
accounts payable 7,765 29,771
accrued expenses (1,125) 1,391
non-current deferred taxes (122) 1,271
------- -------
Total adjustments 346 (5,580)
------- -------
Net cash provided (used) by operations 376 (1,587)
------- -------
Cash flows from investing activities:
Cash used to acquire property, plant and equipment (7,182) (16,982)
------- -------
Cash flows from financing activities:
Issuance of Series A preferred stock - 4,500
Net proceeds from newly-issued debt 7,978 14,500
Payments on long-term debt (405) (142)
Common stock dividends (626) (939)
Preferred stock dividends (150) (133)
Other - (37)
------- -------
Net cash provided by financing activities 6,797 17,749
------- -------
Net decrease in cash (9) (820)
Cash, beginning of period 27 1,759
------- -------
Cash, end of period $ 18 $ 939
======= =======
See Accompanying Notes to Condensed Consolidated Financial Statements
</TABLE>
<PAGE>
HUNTCO INC.
NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
(unaudited, dollars in thousands, except per share amounts)
-----------------------------------------------------------
1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
The condensed consolidated balance sheet as of September 30, 1998, the
condensed consolidated statements of operation for the nine and three months
ended September 30, 1998 and 1997, and the condensed consolidated statement of
cash flows for the nine months ended September 30, 1998 and 1997 have been
prepared by Huntco Inc. (the "Company") without audit. In the opinion of
management, all adjustments (which include only normal, recurring adjustments)
necessary to present fairly the financial position at September 30, 1998, and
the results of operations and cash flows for the interim 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 where inapplicable. A summary of
the significant accounting policies followed by the Company is set forth in
Note 1 to the Company's consolidated financial statements included within Item
8 to the Company's transition report on Form 10-K for the eight months ended
December 31, 1997 (the "transition period")(the "Form 10-K"), which Form 10-K
was filed with the Securities and Exchange Commission on March 30, 1998. The
condensed consolidated financial statements included herein should be read in
conjunction with the consolidated financial statements and notes thereto for
the transition period ended December 31, 1997, included in the aforementioned
Form 10-K. The results of operations for the periods ended September 30, 1998
are not necessarily indicative of the operating results for the full year.
2. INVENTORIES
Inventories consisted of the following as of:
<TABLE>
<CAPTION>
September 30, December 31,
1998 1997
------- ---------
<S> <C> <C>
Raw materials $ 63,317 $ 55,991
Finished goods 25,207 25,621
-------- --------
$ 88,524 $ 81,612
======== ========
</TABLE>
The Company classifies its inventory of cold rolled steel coils as
finished goods, which coils can either be sold as master coils, without
further processing, or may be slit, blanked or cut-to-length by the Company
prior to final sale.
3. COMMON STOCK DIVIDENDS
The Company's Board of Directors declared a dividend of $.035 per share on its
shares of Class A common stock and Class B common stock for shareholders of
record on November 4, 1998, payable on November 16, 1998.
Item 2. Management's Discussion and Analysis of Financial Condition and
Results of Operations
- ---------------------------------------------------------------------------
This Quarterly Report on Form 10-Q 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 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
discussion is contained under the title "Risk Factors - 1998 Forecast"
included within Item 7, Management's Discussion and Analysis of Financial
Condition and Results of Operations, of the Company's transition report on
Form 10-K, as filed with the Securities and Exchange Commission on March 30,
1998. The Company has also provided updates of its forward-looking
information during the course of 1998 by way of the filing of various Current
Reports on Form 8-K, the three most recent of which are referred to under Item
6(b) below.
RESULTS OF OPERATIONS
Net sales were $95.6 million for the quarter ended September 30, 1998, an
increase of 1.9% in comparison to net sales of $93.9 million for the three
months ended September 30, 1997. Net sales for the nine months ended
September 30, 1998 were $310.7 million, an increase of 13.8% in comparison to
net sales of $273.1 million for the nine months ended September 30, 1997.
The Company experienced a decrease in total tons sold and toll processed of
2.5% when comparing the quarters ended September 30, 1998 and 1997. The
Company sold and processed 288,044 tons of steel during the three months ended
September 30, 1998, which compares to 295,535 tons for the three months ended
September 30, 1997. However, total net sales dollars for the Company
increased on a third quarter 1998 versus 1997 comparative basis. Direct non-
tolling sales volume measured in tons shipped increased 3.7%, which increase
was offset by lower tolling volume as the Company toll processed less
customer-owned material on a per ton fee basis during the 1998 third quarter
(21.0% of total volume), than it did in the 1997 third quarter (25.7%).
Processing customer-owned material generally results in lower revenues per
ton, but higher gross profit expressed as a percentage of net sales, in
comparison to when the Company processes and sells its own steel inventory.
The reduced level of tolling volume reflected a move to off-shore purchasing
by certain of the Company's tolling customers who traditionally buy from the
Nucor mill at Hickman, Arkansas and use the Company's Blytheville facility for
toll slitting and pickling.
In comparison to the first seven months of 1998, sharply lower shipping levels
of processed hot rolled products and cold rolled master coils were experienced
at the Company's Blytheville facility during the month of August, 1998 and
into September, as the Company installed new computer systems at this
facility. Blytheville is the last of the Company's facilities to be converted
to the new computer system.
The environment of deteriorating steel prices charged by the Company's
suppliers encouraged inventory liquidations and delays in purchases by the
Company's customers. This was especially acute in the markets served by the
Blytheville facility, reflecting the substantial disparity between hot rolled
steel prices charged by local, domestic suppliers and the landed cost of
imported hot bands. These steel price reductions also resulted in lower
average selling prices for the Company, which prices declined 5.2% on a third
quarter 1998 versus 1997 comparative basis, which price decreases also served
to deflate the Company's level of net sales.
The Company attributes the year-to-date increase in net sales to higher levels
of tons processed, with such volume driven increases being partially offset by
lower average selling prices. The Company processed and shipped 958,877 tons
of steel in the nine months ended September 30, 1998, an increase of 17.6%
over the comparable period of the prior year.
The Company's year-to-date net sales increase was driven by higher sales of
cold rolled products. The Company sold 216,758 tons of cold rolled products
during the nine months ended September 30, 1998, versus 161,249 tons in the
comparable period of the prior year. Average per ton selling values declined
5.5% during the nine months ended September 30, 1998, in comparison to prior
year levels. The level of customer-owned material processed on per ton, fee
basis for the nine months ended September 30, 1998 (23.1% of total volume)
approximated that of the comparable period of the prior year (23.3%).
Gross profit, expressed as a percentage of net sales, was 5.4% and 6.7% for
the three and nine months ended September 30, 1998, compared to 8.7% and 9.0%
for the three and nine months ended September 30, 1997. The decline in the
Company's gross profit percentage is attributable to reduced steel prices,
lower 1998 third quarter shipping and production volumes (including lower
levels of toll processing) that negatively impacted fixed cost overhead
absorption, and higher levels of equipment lease expense included in cost of
sales.
Selling, general and administrative ("SG&A") expenses of $4.9 million and
$14.6 million for the three and nine months ended September 30, 1998, reflect
increases of $.6 million and $2.0 million over the comparable periods of the
prior year. The increases in SG&A expenses are generally attributable to the
higher level of business activity conducted throughout the Company, including
overhead expenses related to the Company's new South Carolina facility. SG&A
expenses, when expressed as a percentage of net sales, increased from 4.6% for
both the three and nine months ended September 30, 1997, to 5.1% and 4.7% of
net sales during the three and nine months ended September 30, 1998. Declines
in selling values of the Company's products during 1998 provided for less
percentage absorption of the Company's selling and administrative efforts.
Income from operations was $.3 million and $6.1 million during the three and
nine months ended September 30, 1998, which amounts decreased $3.6 million and
$5.9 million from prior year levels. These decreases reflect the factors
discussed in the preceding paragraphs.
Net interest expense of $2.0 million and $6.0 million was incurred during the
three and nine months ended September 30, 1998. During the comparable periods
of calendar 1997, net interest expense of $2.0 million and $5.6 million were
incurred. The increase for the nine month period reflects borrowings to
support higher working capital levels and slightly higher interest rates
charged on the Company's revolving credit borrowings in 1998 versus 1997. The
Company capitalized $.4 million and $1.0 million of interest costs to
construction in progress during the three and nine months ended September 30,
1998. During the comparable periods of the prior year, the Company
capitalized $.3 million and $.8 million of interest costs to construction in
progress.
The effective income tax (benefit) rates experienced by the Company were
(36.4)% and 36.2% during the three and nine months ended September 30, 1998,
which rates declined from the 37.1% and 37.7% effective income tax rates
recognized during the comparable periods of the prior year. These decreases
are due to the Company's recognition of certain state tax benefits for the
year to date 1998 versus 1997 comparison. For the quarter ended September 30,
1998 versus 1997 contrast, the lower effective income tax rate is due to the
effects of non-deductible expenses incurred by the Company applied to pre-tax
income for 1997, versus a pre-tax loss for 1998.
The Company incurred a net loss for common shareholders for the three months
ended September 30, 1998 of $1.2 million, or $.13 per share both basic and
diluted. This quarterly performance compares to net income available for
common shareholders of $1.1 million, or $.13 per share both basic and diluted,
for the comparable period of the prior year. The Company incurred a net loss
for common shareholders for the nine months ended September 30, 1998 of $.1
million, or $.01 per share both basic and diluted. This nine month
performance compares to net income available for common shareholders of $3.9
million, or $.43 per share both basic and diluted, for the comparable period
of the prior year. These decreases reflect the factors discussed in the
preceding paragraphs.
LIQUIDITY AND CAPITAL RESOURCES
The Company generated $.4 million of cash from operating activities during the
nine months ended September 30, 1998, which compares to net cash used by
operations of $1.6 million for the comparable period of the prior year.
During the nine months ended September 30, 1998 and 1997, the Company was able
to fund much of its increased investments in accounts receivable and inventory
with non-cash depreciation and amortization charges and increases in accounts
payable. During the nine months ended September 30, 1997, the Company also
utilized additional borrowings on the Company's revolving credit facility to
round out its working capital needs.
In terms of the timing of working capital needs, the following is of note.
The Company's investment in accounts receivable is typically lower as of
December 31, as compared to its interim quarter ends of March, June and
September. The business activity level of the Company is typically slower
during the months of November and December, when there are less business
shipping days due to the holidays occurring during these months. As a result,
the monthly sales levels preceding its interim quarter ends (e.g., September
30) is typically higher for the Company, as compared to December 31, due to
the seasonal nature of its late fourth quarter sales activity. The $8.1
million and $12.9 million increases in accounts receivable for the nine months
ended September 30, 1998 and 1997, respectively, follow this seasonality.
During the nine months ended September 30, 1998 and 1997, the Company saw its
investment in inventories increase $6.9 million and $27.9 million, in
comparison to inventories at December 31, 1997 and 1996, respectively.
Inventory levels can be heavily influenced by the source of the Company's raw
material supply. Use of imported steel typically requires the Company to
maintain higher levels of inventory. Receipt of imported steel is normally by
large ocean-going vessel, with longer lead times required and less predictable
delivery schedules for such bulk import orders, as compared to the procurement
process faced by the Company when it purchases its steel coils from domestic
producing mills.
The timing of receipt of imported steel coils can significantly impact the
balance of the Company's inventories on any given day. During the nine months
ended September 30, 1998 and 1997, the Company shifted a major portion of its
steel purchases to imported coils, given the accessibility of such material at
prices lower than that charged by the Company's domestic suppliers. In order
to fund this increased investment in inventories, the Company has been able to
procure more favorable payment terms from its import vendors, versus those
terms typically offered by its domestic suppliers. As a result, the Company's
balance of accounts payable increased $7.8 million and $29.8 million during
the nine months ended September 30, 1998 and 1997. This trend is expected to
continue through the fourth quarter of 1998, and the Company presently expects
that its investment in inventories will peak sometime near December 31, 1998.
The Company used $7.2 million and $17.0 million of cash during the nine months
ended September 30, 1998 and 1997, respectively, to acquire property, plant
and equipment. During 1998, such expenditures primarily involved the
Company's second coil pickling line and improvements to the cold rolling mill,
both located in Blytheville, Arkansas, as well as the acquisition and
installation of a heavy gauge cut-to-length line for the Pasadena, Texas
facility. Construction of the Company's new facility in South Carolina, the
acquisition of certain steel processing equipment from Coil-Tec, Inc. on
January 30, 1997, and costs related to the Company's second coil pickling line
located in Blytheville were the principal property additions attributable to
the comparable period of the prior year.
The primary source of financing for these property additions came from the
Company's revolving credit facility, which increased by a total of $8.0
million and $14.5 million during the nine months ended September 30, 1998 and
1997, respectively. The Company also issued its $4.5 million of Series A
Preferred Stock on January 30, 1997 to the shareholder of Coil-Tec in exchange
for certain of its assets. The Company does not contemplate any further
significant level of capital additions over the course of the next twelve
months.
On March 24, 1998, the Company amended its primary long-term debt agreements
to provide its lenders with security interests in the accounts receivable,
inventory and selected fixed assets of the Company. Effective with these
amendments, the maximum amount of borrowings available to the Company under
its revolving credit facility is based upon percentages of eligible accounts
receivable, inventory and selected fixed assets, as defined in the amended
revolving credit agreement.
The Company's long-term notes and the revolving credit agreement, as amended,
both require the maintenance of various financial covenants and ratios. The
Company was in compliance with the financial covenants and ratios required by
these agreements, as amended, as of September 30, 1998.
As of September 30, 1998, the Company had unused borrowing capacity of $12.1
million under its $80.0 million revolving credit facility. This amount was
further limited to $1.7 million of unused borrowing capacity as of September
30, 1998, given the constraint of complying with the Company's funded debt to
total capitalization covenant. The Company maintains a policy to limit its
long-term debt, inclusive of current maturities (i.e., "funded debt"), to no
more than 50% of total capitalization (i.e., the sum of the Company's funded
debt and total shareholders' equity), which policy has been incorporated into
the Company's primary long-term debt agreements. As of September 30, 1998,
the ratio of the Company's funded debt to total capitalization was 49.6%.
During the nine months ended September 30, 1998, the Company paid dividends of
$.2 million on its Series A preferred stock and $.6 million on its common
stock, versus payments of $.1 million and $.9 million, respectively, for the
comparable period of the prior year. However, if business conditions improve
in early 1999, as the Company expects, and the Huntco Inc. Class A common
stock price remains at or near the current depressed levels, the Company will
consider implementing a stock repurchase program in lieu of continuing
periodic declarations of common dividends.
The Company's cash position, unused borrowing capacity, and cash anticipated
to be generated from operations is expected to be sufficient to meet its
working capital needs, capital expenditure commitments, and the payment of
dividends on the outstanding shares of Series A preferred stock and Class A
and Class B common stock during the balance of 1998.
The Company maintains the flexibility to issue additional equity in the form
of Class A common stock or additional series of preferred stock junior to the
Series A preferred stock if and when market circumstances should ever dictate.
The Company, from time-to-time, explores financing alternatives such as
increasing its borrowing capacity on its revolving credit facility, the
possibility of issuing additional long-term debt, or pursuing further
operating lease financing for new business expansions. The Company also
continues to evaluate its business with the intent to streamline operations,
improve productivity and reduce costs.
YEAR 2000 COMPLIANCE
The Company utilizes software and related computer technologies essential to
its operations and to certain products that use two digits rather than four to
specify the year, which could result in a date recognition problem with the
transition to the year 2000. The Company has established a plan, utilizing
internal resources, to assess the potential impact of the year 2000 on the
Company's systems and operations and to implement solutions to address this
issue. The Company is in the assessment phase of its year 2000 plan, which in
addition to the assessment of its own systems and operations includes
surveying the Company's primary suppliers, vendors and service providers for
year 2000 compliance. The Company expects to complete the assessment phase by
December 31, 1998.
The Company's plan for remediation includes a combination of repair and
replacement of affected systems. For substantially all of the Company's
internal systems, this remediation is an incidental consequence of the
implementation of a new integrated core business system, which has now been
installed at all of the Company's steel processing facilities. An updated
version of this system software is expected to be received in November 1998,
which system software the Company expects to test for year 2000 compliance at
or near December 31, 1998. The Company expects the remediation phase to be
completed and for testing to be conducted by March 31, 1999. The Company
expects that all critical internal systems will be year 2000 compliant by June
30, 1999.
The cost of implementation of the new integrated core business system is
approximately $.7 million, which amount has been incurred by the Company
through October 31, 1998. The Company does not anticipate any further
significant costs to be incurred in addressing its internal year 2000
compliance issues.
The Company is dependent upon various third parties, including certain product
suppliers, to conduct its business operations. The failure of mission-
critical third parties to achieve year 2000 compliance could have a material
effect on the Company's operations. The Company is diligently quantifying
issues and developing contingency sources to mitigate the risks associated
with interruptions in its supply chain due to year 2000 problems. The bulk of
the Company's primary steel suppliers have year 2000 compliance projects in
process, and the Company plans to continue to monitor their progress on a
quarterly basis. The Company also continues to monitor concerns that utility
companies and any inbound or outbound shipping suppliers will continue their
services on an uninterrupted basis given year 2000 compliance concerns. The
Company plans to develop a contingency plan by May 1, 1999, in the event its
systems or its mission-critical vendors do not achieve year 2000 compliance.
However, there can be no assurance that the Company will not experience
unanticipated costs and/or business interruptions due to year 2000 problems in
its internal systems, its supply chain or from customer product migration
issues, or that such costs and/or interruptions will not have a material
adverse effect on the Company's consolidated results of operation.
<PAGE>
PART II. OTHER INFORMATION
- -----------------------------
Item 6. Exhibits and Reports on Form 8-K
- --------------------------------------------
(a) See the Exhibit Index included herein.
(b) Reports on Form 8-K:
The Company filed a Form 8-K on July 21, 1998, which filing discussed under
Item 5, Other Events, the Company's earnings for the three and six months
ended June 30, 1998, as well as providing certain forward-looking data for the
fiscal year ending December 31, 1998.
The Company filed a Form 8-K on September 23, 1998, which filing discussed
under Item 5, Other Events, an update of certain forward-looking data for the
fiscal year ending December 31, 1998.
The Company filed a Form 8-K on October 23, 1998, which filing discussed under
Item 5, Other Events, the Company's earnings for the three and nine months
ended September 30, 1998, as well as providing certain forward-looking data
for the fiscal year ending December 31, 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 thereunto duly authorized.
HUNTCO INC.
(Registrant)
Date: November 12, 1998 By: /s/ ROBERT J. MARISCHEN
-----------------------
Robert J. Marischen,
Vice Chairman of the Board
and Chief Financial Officer
<PAGE>
EXHIBIT INDEX
These Exhibits are numbered in accordance with the Exhibit Table of Item 601
of Regulation S-K.
2: Omitted - not applicable.
3: Omitted - not applicable.
4: Omitted - not applicable.
10: Omitted - not applicable.
11: Omitted - not applicable.
15: Omitted - not applicable.
18: Omitted - not applicable.
19: Omitted - not applicable.
22: Omitted - not applicable.
23: Omitted - not applicable.
24: Omitted - not applicable.
27: Financial Data Schedule.
99: Omitted - not applicable.
<TABLE> <S> <C>
<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM THE
CONSOLIDATED FINANCIAL STATEMENTS AND NOTES THERETO OF HUNTCO INC. AT AND FOR
THE NINE MONTHS ENDED SEPTEMBER 30, 1998 AND IS QUALIFIED IN ITS ENTIRETY BY
REFERENCE TO SUCH FINANCIAL STATEMENTS.
</LEGEND>
<MULTIPLIER> 1,000
<S> <C>
<PERIOD-TYPE> 9-MOS
<FISCAL-YEAR-END> DEC-31-1998
<PERIOD-END> SEP-30-1998
<CASH> 18
<SECURITIES> 0
<RECEIVABLES> 50,226
<ALLOWANCES> 512
<INVENTORY> 88,524
<CURRENT-ASSETS> 140,597
<PP&E> 182,210
<DEPRECIATION> 35,635
<TOTAL-ASSETS> 298,608
<CURRENT-LIABILITIES> 57,904
<BONDS> 111,153
0
4,500
<COMMON> 90
<OTHER-SE> 115,668
<TOTAL-LIABILITY-AND-EQUITY> 298,608
<SALES> 310,744
<TOTAL-REVENUES> 310,744
<CGS> 290,070
<TOTAL-COSTS> 290,070
<OTHER-EXPENSES> 0
<LOSS-PROVISION> 70
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<EPS-PRIMARY> (.01)
<EPS-DILUTED> (.01)
</TABLE>
