<PAGE>
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) April 12, 2000
-------------------------
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>
Item 5. Other Events
Huntco Inc. (the "Company") issued a news release on April 12, 2000, with
respect to its release of earnings for its quarter ended March 31, 2000, and
to provide certain forward-looking information for the year ending December
31, 2000. 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/ Anthony J. Verkruyse
-------------------------------------
Anthony J. Verkruyse,
Vice President & CFO
Date: April 12, 2000
- ------------------------------------------------------------------------------
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 April 12, 2000
<PAGE>
HUNTCO INC.
14323 SOUTH OUTER FORTY - SUITE 600N
TOWN & COUNTRY, MISSOURI 63017
NEWS RELEASE
FOR IMMEDIATE RELEASE:
HUNTCO REPORTS FIRST QUARTER NET INCOME
TOWN & COUNTRY, MISSOURI, April 12, 2000. . . . . Huntco Inc. (NYSE:"HCO"), an
intermediate steel processor, today announced results of operations for its
first quarter ended March 31, 2000. The Company reported net income
available for common shareholders for the 2000 first quarter of $.6 million,
or $.06 per share both basic and diluted, in contrast to a net loss for common
shareholders of $3.2 million, or $.36 per share, both basic and diluted,
reported in the prior year's first quarter.
The Company realized income from operations of $3.5 million in the 2000 first
quarter, versus a loss from operations of $2.6 million in the 1999 first
quarter. The 2000 first quarter income from operations represents the largest
operating profit realized by the Company since the third quarter of 1997. The
Company realized EBITDA of $6.1 million in the quarter ended March 31, 2000 in
comparison to 1999 first quarter EBITDA of $0.2 million. Net working capital
increased to $85.0 million at the end of the 2000 first quarter, versus $68.9
million as of March 31, 1999. Investment in inventories at March 31, 2000
decreased by $31.2 million in relation to March 31, 1999 balances, while
accounts payable decreased by $44.7 million over this same time period. The
Company achieved these improvements despite a year-over-year net sales
decrease of $4.5 million, or 5.0%. The decrease in net sales in the 2000
first quarter was primarily attributable to the sale of the Company's former
South Carolina facility, which sale took place during the 1999 fourth quarter,
offset by higher average selling prices. The former South Carolina facility
contributed $7.5 million in net sales in the first quarter of 1999.
The Company processed and shipped 263,139 tons of steel in the quarter, a
decrease of 20.3% in comparison to the prior year's first quarter.
Approximately one-half of this decrease is attributable to volume sold from
the Company's former South Carolina facility, which facility was sold in
December of 1999. Reduced tolling volume was another major factor in the 2000
first quarter volume decrease. Approximately 21.2% of the tons processed in
the first quarter of 2000 represented customer-owned material processed on a
per ton, fee basis, versus a tolling percentage of 26.1% in the comparable
period of the prior year. Average selling prices for the Company's products
increased approximately 9.0% in the 2000 first quarter, in comparison to the
1999 first quarter. The Company also sold 69,606 tons of cold rolled products
during the first quarter of 2000, which compares to 61,820 tons in the prior
year's first quarter.
Gross profit expressed as a percentage of net sales was 9.4% for the quarter
ended March 31, 2000, which compares to 2.4% for the prior year's first
quarter. While the Company benefited from generally rising steel prices in
the 2000 first quarter, versus falling prices in the 1999 first quarter,
management's commitment to operating its plants with more rapid inventory
turns and with a more cost effective overhead structure has also begun to
positively impact gross profit margins. Gross profit margins also improved due
to improved capacity utilization at the Company's cold rolling operation,
which is primarily attributed to initial production and sales under the new
tolling arrangements that the Company previously announced.
Management continues to be optimistic concerning its prospects for continuing
improvement in its operating results over the balance of 2000. Sales volume at
the Company's cold rolling mill is expected to continue to increase, and could
average over 30,000 tons per month by the third quarter of 2000, including
15,000 - 20,000 tons per month under tolling commitments.
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 2000 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 on Form 10-K for the year ended
December 31, 1999.
Huntco Inc. is a major, intermediate steel processor, specializing in the
processing of flat rolled carbon steel.
<PAGE>
HUNTCO INC.
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited, in thousands, except per share amounts)
<TABLE>
<CAPTION>
Three Months
Ended March 31,
2000 1999
-------- --------
<S> <C> <C>
Net sales $85,860 $90,377
Cost of sales 77,792 88,230
------- -------
Gross profit 8,068 2,147
Selling, general and administrative expenses 4,547 4,789
------- -------
Income (loss) from operations 3,521 (2,642)
Interest, net (2,507) (2,197)
------- -------
Income (loss) before income taxes 1,014 (4,839)
Provision (benefit) for income taxes 390 (1,662)
------- -------
Net income (loss) 624 (3,177)
Preferred dividends 50 50
------- -------
Net income (loss)
available for common shareholders $ 574 $(3,227)
======= =======
Earnings (loss) per common share:
Basic and diluted $ .06 $(.36)
===== =====
Weighted average common shares outstanding:
(basic and diluted) 8,942 8,942
===== =====
</TABLE>
<PAGE>
HUNTCO INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(in thousands)
<TABLE>
<CAPTION>
March 31, December 31,
2000 1999
---------- -----------
(unaudited) (audited)
<S> <C> <C>
ASSETS
Current assets:
Cash $ 900 $ 414
Accounts receivable, net 43,547 41,835
Inventories 79,459 77,832
Other current assets 2,398 2,380
-------- --------
126,304 122,461
Property, plant and equipment, net 122,055 123,548
Other assets 10,498 10,725
-------- --------
$258,857 $256,734
======== ========
LIABILITIES & SHAREHOLDERS' EQUITY
Current liabilities:
Accounts payable $ 38,009 $ 43,279
Accrued expenses 3,059 2,657
Current maturities of long-term debt 205 248
-------- --------
41,273 46,184
-------- --------
Long-term debt 111,930 105,470
Deferred income taxes 1,166 1,166
-------- --------
113,096 106,636
-------- --------
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 13,368 12,794
-------- --------
104,488 103,914
-------- --------
$258,857 $256,734
======== ========
</TABLE>
