TULSA, Okla., July 21, 2008 (PRIME NEWSWIRE) -- North American Galvanizing & Coatings, Inc. (Nasdaq:NGA) announced today record earnings for the first six months and the second quarter of 2008. The second quarter of 2008 is the Company's tenth consecutive quarter of record earnings.
Consolidated net earnings for the 2008 second quarter were $3.4 million ($.27 per share), compared with $2.2 million ($.17 per share) in the second quarter of 2007, a 59% increase in earnings per share. The Company's net earnings for the first six months of 2008 were $6.5 million ($.51 per share), compared with $4.6 million ($.36 per share) in the first six months of 2007 which represents a 42% increase in earnings per share.
Commenting on the results of the second quarter 2008, Ronald J. Evans, president and chief executive officer, said, "Strong capital goods spending, including electrical distribution and highway projects which specify galvanized product, continued to support hot-dip galvanizing demand, which resulted in improved industry utilization rates. This provided the opportunity to hold margins in a declining zinc market. Our second quarter 2008 volumes exceeded first quarter 2008 volumes by 9 percent and prior year second quarter volumes by 1 percent."
As part of its share repurchase program, the Company purchased approximately 72,000 shares of Company stock in open market transactions during the second quarter.
North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Canton, Ohio; Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area. Hot-dip galvanizing provides metals corrosion protection for many product applications used in commercial, construction and industrial markets. Our home page is: www.nagalv.com.
Cautionary Statement. This press release may contain "forward-looking statements" as defined under U.S. securities laws, including, but not limited to, statements concerning the Company's beliefs and expectations of future performance. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from such forward-looking statements and management's present expectations or projections. These risks and uncertainties include the risk factors described in the Company's SEC filings including the Company's Annual Report on Form 10- K filed with the Securities and Exchange Commission on March 7, 2008. The Company cannot be assured that continuing zinc price increases will continue to be absorbed by the market. These forward-looking statements are made as of the date of this press release. The Company assumes no obligation to update or revise these statements or to provide reasons why actual results may differ.
NORTH AMERICAN GALVANIZING & COATINGS, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
THREE AND SIX MONTHS ENDED JUNE 30, 2008 AND 2007
(In thousands, except per share amounts)
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Three Months Ended Six Months Ended
June 30 June 30
2008 2007 2008 2007
SALES $ 21,978 $ 23,121 $ 42,680 $ 46,620
COSTS AND EXPENSES:
Cost of sales 12,957 16,152 25,777 32,364
Selling, general and
administrative expenses 2,707 2,441 4,849 4,805
Depreciation and
amortization 852 898 1,709 1,736
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Total costs and expenses 16,516 19,491 32,335 38,905
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OPERATING INCOME 5,462 3,630 10,345 7,715
Interest expense -- (65) -- (252)
Interest and other income 136 36 147 54
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INCOME BEFORE INCOME TAXES 5,598 3,601 10,492 7,517
INCOME TAX EXPENSE 2,175 1,395 3,994 2,965
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NET INCOME $ 3,423 $ 2,206 $ 6,498 $ 4,552
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NET INCOME PER COMMON SHARE:
Basic $ 0.28 $ 0.18 $ 0.53 $ 0.37
Diluted $ 0.27 $ 0.17 $ 0.51 $ 0.36