Click here to close now.

SYS-CON MEDIA Authors: JP Morgenthal, AppDynamics Blog, John Wetherill, Harry Trott, Roger Strukhoff

News Feed Item

Russel Metals Announces 2012 Annual and Fourth Quarter Results

TORONTO, ONTARIO -- (Marketwire) -- 02/12/13 -- Russel Metals Inc. (TSX:RUS) today announced fourth quarter 2012 earnings of $20 million, or $0.34 per share on revenues of $766 million. These results compare with our 2011 fourth quarter earnings per share of $0.47 on revenues of $712 million.

Our fourth quarter earnings include the operating income of Apex Distribution which contributed $6 million in operating income from the date of its acquisition on November 8, 2012. This positive contribution to our energy products segment earnings was muted by the inventory write-downs of $4 million taken in the period by certain of our other energy operations due to price declines in pipe products. The operating earnings for the segment improved to $18 million in the quarter from $17 million in the fourth quarter of 2011.

Operating profits in the fourth quarter of 2012 for our metals service centers were $17 million down from $21 million in the fourth quarter of 2011. Results were impacted by an industry-wide drop in volumes in November and December beyond expected seasonality. Gross margins improved slightly in the 2012 fourth quarter as a result of steel mills attempting to raise prices. In September 2012, the unionized employees at our Boucherville, Quebec operation took strike action and this work stoppage was resolved on February 7, 2013. The strike has reduced our operating income by approximately $2 million in the quarter.

Our steel distributor segment fourth quarter operating profits decreased to $7 million from $11 million in the fourth quarter of 2011 due to soft demand and tightening margins. Gross margins improved slightly to 13.2% from 13.0% in the 2012 third quarter consistent with our metals service center operations.

Net earnings for the fourth quarter were also negatively impacted by $2 million due to non-cash charges, including the amortization of intangibles, and transaction costs related to the Apex Distribution acquisition.

For the year, our earnings were $99 million or $1.64 per share on revenues of $3.0 billion versus 2011 earnings of $118 million or $1.97 per share on revenues of $2.7 billion.

Brian R. Hedges, President and CEO, said: "2012 was an exciting year as we made three acquisitions, highlighted by the purchase of Apex Distribution. Through these acquisitions we believe that we have strengthened the Company's ability to generate earnings over the cycle and we are well positioned to reap the benefits in 2013 and beyond. During the fourth quarter we experienced a weakness in demand in all segments; however, our metals service centers outperformed the industry shipment volumes reported by the Metals Service Center Institute. The stabilization of gross margins in the fourth quarter and the recent upward price movement by the mills should lead to higher margins in 2013. We look forward to the expected materialization of a full year's benefits relating to the acquisitions we made in 2012."

The Board of Directors approved a quarterly dividend of $0.35 per common share payable March 15, 2013 to shareholders of record as of February 28, 2013.

The Company will be holding an Investor Conference Call on Wednesday February 13, 2013 at 10:00 a.m. ET to review its fourth quarter and annual results for 2012. The dial-in telephone numbers for the call are 416-340-2216 (Toronto and International callers) and 1-866-226-1792 (U.S. and Canada). Please dial in 10 minutes prior to the call to ensure that you get a line.

A replay of the call will be available at 905-694-9451 (Toronto and International callers) and 1-800-408-3053 (U.S. and Canada) until midnight, Wednesday February 27, 2013. You will be required to enter pass code 7908038 in order to access the call.

Additional supplemental financial information is available in our investor conference call package located on our website at www.russelmetals.com.

Russel Metals is one of the largest metals distribution companies in North America. It carries on business in three metals distribution segments: metals service centers, energy products and steel distributors, under various names including Russel Metals, A.J. Forsyth, Acier Leroux, Acier Loubier, Acier Richler, Alberta Industrial Metals, Apex Distribution, Apex Remington, Arrow Steel Processors, B&T Steel, Baldwin International, Comco Pipe and Supply, Fedmet Tubulars, JMS Russel Metals, Leroux Steel, McCabe Steel, Megantic Metal, Metaux Russel, Metaux Russel Produits Specialises, Milspec, Norton Metals, Pioneer Pipe, Russel Metals Specialty Products, Russel Metals Williams Bahcall, Siemens Laserworks, Spartan Energy Tubulars, Sunbelt Group, Triumph Tubular & Supply, Wirth Steel and York-Ennis.

Statements contained in this press release or on the related conference call that relate to Russel Metals' beliefs or expectations as to certain future events are not statements of historical fact and are forward-looking statements. Russel Metals cautions readers that there are important factors, risks and uncertainties, including but not limited to economic, competitive and governmental factors affecting Russel Metals' operations, markets, products, services and prices that could cause its actual results, performance or achievements to be materially different from those forecasted or anticipated in such forward-looking statements.

The forward-looking statements in this document reflect management's current beliefs and are based on information currently available to management. The material assumptions applied in making the forward-looking statements in this document include the following: demand from the manufacturing, resource and construction segments of the Canadian economy are stable and these conditions will continue in the foreseeable future; and oil and gas prices, the price of steel and the value of the Canadian dollar relative to the U.S. dollar will be at similar levels with what we experienced at the end of 2012. Although the forward-looking statements contained in this document are based upon what management believes to be reasonable estimates and assumptions, Russel Metals cannot ensure that actual results will not be materially different from those expressed or implied by these forward-looking statements and does not intend to update any forward-looking statement other than required by law.


CONSOLIDATED STATEMENTS OF EARNINGS                                         
                                                                            
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                         Quarters ended         Years ended 
                                            December 31         December 31 
(in millions of Canadian dollars,        2012      2011      2012      2011 
 except per share data)                                                     
----------------------------------------------------------------------------
Revenues                            $   765.9 $   711.6 $ 3,000.1 $ 2,693.3 
Cost of materials                       640.1     585.8   2,476.8   2,168.0 
Employee expenses                        55.6      49.7     215.3     202.3 
Other operating expenses                 33.8      29.8     131.8     125.5 
----------------------------------------------------------------------------
                                                                            
Earnings before interest, finance                                           
 and income taxes                        36.4      46.3     176.2     197.5 
Interest expense                          9.1       6.8      34.2      27.5 
Interest income                          (0.2)     (0.5)     (1.7)     (2.0)
Other finance expense                     0.8       0.9       5.6       2.6 
----------------------------------------------------------------------------
                                                                            
Earnings before income taxes             26.7      39.1     138.1     169.4 
Provision for income taxes                6.3      10.6      39.3      51.1 
----------------------------------------------------------------------------
                                                                            
Net earnings for the period         $    20.4 $    28.5 $    98.8 $   118.3 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Basic earnings per common share     $    0.34 $    0.47 $    1.64 $    1.97 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
Diluted earnings per common share   $    0.34 $    0.46 $    1.64 $    1.92 
----------------------------------------------------------------------------
----------------------------------------------------------------------------


CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME                             
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                         Quarters ended         Years ended 
                                            December 31         December 31 
(in millions of Canadian dollars)        2012      2011      2012      2011 
----------------------------------------------------------------------------
Net earnings for the period         $    20.4 $    28.5 $    98.8 $   118.3 
----------------------------------------------------------------------------
                                                                            
Other comprehensive income (loss)                                           
 net of tax                                                                 
Unrealized foreign exchange (losses)                                        
 gains on translation of foreign                                            
 operations                               4.1      (7.8)     (8.5)      9.1 
Unrealized (losses) gains on items                                          
 designated as net investment hedges        -       2.6      (0.9)     (2.5)
Losses on derivatives designated as                                         
 cash flow hedges transferred to net                                        
 earnings during the year                   -       0.3       2.3       1.1 
Actuarial (losses) gains on pension                                         
 and similar obligations                  3.1     (13.8)     (6.0)    (13.8)
----------------------------------------------------------------------------
                                                                            
Other comprehensive income (loss)         7.2     (18.7)    (13.1)     (6.1)
----------------------------------------------------------------------------
                                                                            
Total comprehensive income          $    27.6 $     9.8 $    85.7 $   112.2 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
CONSOLIDATED STATEMENTS OF FINANCIAL POSITION                               
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                December 31     December 31 
(in millions of Canadian dollars)                      2012            2011 
----------------------------------------------------------------------------
                                                                            
ASSETS                                                                      
Current                                                                     
  Cash and cash equivalents                 $         115.1 $         270.7 
  Accounts receivable                                 456.2           382.4 
  Inventories                                         764.0           645.6 
  Prepaid expenses                                      7.1             4.6 
  Income taxes receivable                               7.7             0.5 
----------------------------------------------------------------------------
                                                                            
                                                    1,350.1         1,303.8 
                                                                            
Property, Plant and Equipment                         241.8           201.3 
Deferred Income Tax Assets                              4.6             5.3 
Other Assets                                            6.5             3.3 
Goodwill and Intangibles                              192.1            24.7 
----------------------------------------------------------------------------
                                                                            
                                            $       1,795.1 $       1,538.4 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
LIABILITIES AND SHAREHOLDERS' EQUITY                                        
Current                                                                     
  Bank indebtedness                         $          14.3 $             - 
  Accounts payable and accrued liabilities            396.5           362.8 
  Income taxes payable                                    -            17.4 
  Current portion long-term debt                        2.2             1.3 
----------------------------------------------------------------------------
                                                                            
                                                      413.0           381.5 
                                                                            
Long-Term Debt                                        453.6           296.5 
Pensions and Benefits                                  38.7            33.3 
Deferred Income Tax Liabilities                        20.5             0.4 
Provisions and Other Non-Current Liabilities           39.9             7.3 
----------------------------------------------------------------------------
                                                                            
                                                      965.7           719.0 
----------------------------------------------------------------------------
                                                                            
Shareholders' Equity                                                        
  Common shares                                       487.9           485.4 
  Retained earnings                                   324.3           306.7 
  Contributed surplus                                  17.3            15.7 
  Accumulated other comprehensive loss                (30.2)          (17.1)
  Equity component of convertible debenture            28.7            28.7 
----------------------------------------------------------------------------
                                                                            
Total Shareholders' Equity Attributable to                                  
 Equity Holders                                       828.0           819.4 
  Non-controlling interest                              1.4               - 
----------------------------------------------------------------------------
                                                                            
Total Shareholders' Equity                            829.4           819.4 
----------------------------------------------------------------------------
                                                                            
Total Liabilities and Shareholders' Equity  $       1,795.1 $       1,538.4 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
CONSOLIDATED STATEMENTS OF CASHFLOW                                         
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                           Quarters ended       Years ended 
                                              December 31       December 31 
(in millions of Canadian dollars)           2012     2011     2012     2011 
----------------------------------------------------------------------------
                                                                            
Operating activities                                                        
  Net earnings for the period           $   20.4 $   28.5 $   98.8 $  118.3 
  Depreciation and amortization              7.4      5.8     25.5     23.5 
  Deferred income taxes                      0.3     (0.3)     1.3     (0.2)
  (Gain) loss on sale of property, plant                                    
   and equipment                            (1.2)     0.1     (1.2)     0.1 
Stock-based compensation                     0.6      0.5      2.1      2.1 
Difference between pension expense and                                      
 amount funded                              (1.4)    (1.3)    (3.1)    (2.6)
Debt accretion, amortization and other       1.7      1.5      9.7      6.4 
----------------------------------------------------------------------------
                                                                            
Cash from operating activities before                                       
 non-cash working capital                   27.8     34.8    133.1    147.6 
----------------------------------------------------------------------------
                                                                            
Changes in non-cash working capital                                         
 items                                                                      
  Accounts receivable                       46.8     11.7     25.4    (78.6)
  Inventories                               48.4      2.0    (28.5)   (97.5)
  Accounts payable and accrued                                              
   liabilities                             (17.4)    23.5    (34.3)    79.0 
  Income taxes receivable/ payable           0.1      3.4    (19.6)     7.2 
  Other                                     (0.6)    (0.6)    (0.1)    (1.5)
----------------------------------------------------------------------------
                                                                            
Change in non-cash working capital          77.3     40.0    (57.1)   (91.4)
----------------------------------------------------------------------------
                                                                            
Cash from operating activities             105.1     74.8     76.0     56.2 
----------------------------------------------------------------------------
                                                                            
Financing activities                                                        
  Increase in bank borrowings               14.6        -     14.6        - 
  Issue of common shares                     0.6      0.1      2.0      1.4 
  Dividends on common shares               (21.1)   (18.1)   (81.2)   (69.1)
  Issuance of long-term debt                   -        -    300.0        - 
  Repayment of long-term debt               (0.3)    (3.4)  (142.4)   (29.3)
  Deferred financing                           -     (0.1)    (7.0)    (0.6)
----------------------------------------------------------------------------
                                                                            
Cash from (used in) financing activities    (6.2)   (21.5)    86.0    (97.6)
----------------------------------------------------------------------------
                                                                            
Investing activities                                                        
  Purchase of property, plant and                                           
   equipment                                (7.3)    (5.2)   (33.7)   (18.1)
  Proceeds on sale of property, plant                                       
   and equipment                             1.8      0.1      1.8      0.8 
  Purchase of business                    (226.4)       -   (281.3)       - 
----------------------------------------------------------------------------
                                                                            
Cash used in investing activities         (231.9)    (5.1)  (313.2)   (17.3)
----------------------------------------------------------------------------
                                                                            
Effect of exchange rates on cash and                                        
 cash equivalents                            1.0     (1.4)    (4.4)     5.7 
----------------------------------------------------------------------------
                                                                            
Increase (Decrease) in cash and cash                                        
 equivalents                              (132.0)    46.8   (155.6)   (53.0)
Cash and cash equivalents, beginning of                                     
 the period                                247.1    223.9    270.7    323.7 
----------------------------------------------------------------------------
                                                                            
Cash and cash equivalents, end of the                                       
 year                                   $  115.1 $  270.7 $  115.1 $  270.7 
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Supplemental cash flow information:                                         
Income taxes paid                       $    5.6 $    7.9 $   60.0 $   45.8 
Interest paid (net)                     $   16.1 $    0.5 $   31.2 $   25.5 
                                                                            
                                                                            
CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY                                
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
(in millions of Canadian   Common   Retained    Contributed     Accumulated 
 dollars)                  Shares   Earnings        Surplus           Other 
                                                              Comprehensive 
                                                                       Loss 
----------------------------------------------------------------------------
                                                                            
Balance, January 1, 2012 $  485.4 $    306.7  $        15.7 $         (17.1)
Acquired during the year        -          -              -               - 
Payment of dividends            -      (81.2)             -               - 
Net earnings for the                                                        
 year                           -       98.8              -               - 
Other comprehensive loss                                                    
 for the year                   -          -              -           (13.1)
Recognition of stock-                                                       
 based compensation             -          -            1.6               - 
Stock options exercised       2.5          -              -               - 
----------------------------------------------------------------------------
                                                                            
Balance, December 31,                                                       
 2012                    $  487.9 $    324.3  $        17.3 $         (30.2)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            
                                                                            
Balance, January 1, 2011 $  483.7 $    257.5  $        13.9 $         (11.0)
Payment of dividends            -      (69.1)             -               - 
Net earnings for the                                                        
 year                           -      118.3              -               - 
Other comprehensive loss                                                    
 for the year                   -          -              -            (6.1)
Recognition of stock-                                                       
 based compensation             -          -            1.8               - 
Stock options exercised       1.7          -              -               - 
----------------------------------------------------------------------------
                                                                            
Balance, December 31,                                                       
 2011                    $  485.4 $    306.7  $        15.7 $         (17.1)
----------------------------------------------------------------------------
----------------------------------------------------------------------------
                                                                            

CONSOLIDATED STATEMENTS OF CHANGES IN EQUITY                      
------------------------------------------------------------------
------------------------------------------------------------------
                                                                  
(in millions of Canadian         Equity Non Controlling     Total 
 dollars)                  Component of        Interest           
                            Convertible                           
                             Debentures                           
------------------------------------------------------------------
                                                                  
Balance, January 1, 2012$          28.7 $             - $   819.4 
Acquired during the year              -             1.4       1.4 
Payment of dividends                  -               -     (81.2)
Net earnings for the                                              
 year                                 -               -      98.8 
Other comprehensive loss                                          
 for the year                         -               -     (13.1)
Recognition of stock-                                             
 based compensation                   -               -       1.6 
Stock options exercised               -               -       2.5 
------------------------------------------------------------------
                                                                  
Balance, December 31,                                             
 2012                   $          28.7 $           1.4 $   829.4 
------------------------------------------------------------------
------------------------------------------------------------------
                                                                  
                                                                  
Balance, January 1, 2011$          28.7 $             - $   772.8 
Payment of dividends                  -               -     (69.1)
Net earnings for the                                              
 year                                 -               -     118.3 
Other comprehensive loss                                          
 for the year                         -               -      (6.1)
Recognition of stock-                                             
 based compensation                   -               -       1.8 
Stock options exercised               -               -       1.7 
------------------------------------------------------------------
                                                                  
Balance, December 31,                                             
 2011                   $          28.7 $             - $   819.4 
------------------------------------------------------------------
------------------------------------------------------------------

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
In his session at DevOps Summit, Andrei Yurkevich, CTO at Altoros, provided an overview of all the benefits and opportunities, as well as drawbacks of deploying Cloud Foundry PaaS with Juju and compared it to BOSH. Discover the features that overlap, and understand what Juju Charm is, what it is not, where you use one or the other or where you use both BOSH and Juju Charms together. Andrei Yurkevich is Cloud Foundry protagonist and CTO at Altoros. Under his supervision, the Altoros engineering ...
Cultural, regulatory, environmental, political and economic (CREPE) conditions over the past decade are creating cross-industry solution spaces that require processes and technologies from both the Internet of Things (IoT), and Data Management and Analytics (DMA). These solution spaces are evolving into Sensor Analytics Ecosystems (SAE) that represent significant new opportunities for organizations of all types. Public Utilities throughout the world, providing electricity, natural gas and water,...
For better or worse, DevOps has gone mainstream. All doubt was removed when IBM and HP threw up their respective DevOps microsites. Where are we on the hype cycle? It's hard to say for sure but there's a feeling we're heading for the "Peak of Inflated Expectations." What does this mean for the enterprise? Should they avoid DevOps? Definitely not. Should they be cautious though? Absolutely. The truth is that DevOps and the enterprise are at best strange bedfellows. The movement has its roots in t...
The Internet of Things will put IT to its ultimate test by creating infinite new opportunities to digitize products and services, generate and analyze new data to improve customer satisfaction, and discover new ways to gain a competitive advantage across nearly every industry. In order to help corporate business units to capitalize on the rapidly evolving IoT opportunities, IT must stand up to a new set of challenges. In his session at @ThingsExpo, Jeff Kaplan, Managing Director of THINKstrateg...
Can call centers hang up the phones for good? Intuitive Solutions did. WebRTC enabled this contact center provider to eliminate antiquated telephony and desktop phone infrastructure with a pure web-based solution, allowing them to expand beyond brick-and-mortar confines to a home-based agent model. It also ensured scalability and better service for customers, including MUY! Companies, one of the country's largest franchise restaurant companies with 232 Pizza Hut locations. This is one example of...
The true value of the Internet of Things (IoT) lies not just in the data, but through the services that protect the data, perform the analysis and present findings in a usable way. With many IoT elements rooted in traditional IT components, Big Data and IoT isn’t just a play for enterprise. In fact, the IoT presents SMBs with the prospect of launching entirely new activities and exploring innovative areas. CompTIA research identifies several areas where IoT is expected to have the greatest impac...
One of the biggest challenges when developing connected devices is identifying user value and delivering it through successful user experiences. In his session at Internet of @ThingsExpo, Mike Kuniavsky, Principal Scientist, Innovation Services at PARC, described an IoT-specific approach to user experience design that combines approaches from interaction design, industrial design and service design to create experiences that go beyond simple connected gadgets to create lasting, multi-device exp...
There is little doubt that Big Data solutions will have an increasing role in the Enterprise IT mainstream over time. 8th International Big Data Expo, co-located with 17th International Cloud Expo - to be held November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA - has announced its Call for Papers is open. As advanced data storage, access and analytics technologies aimed at handling high-volume and/or fast moving data all move center stage, aided by the cloud computing bo...
Containers Expo Blog covers the world of containers, as this lightweight alternative to virtual machines enables developers to work with identical dev environments and stacks. Containers Expo Blog offers top articles, news stories, and blog posts from the world's well-known experts and guarantees better exposure for its authors than any other publication. Bookmark Containers Expo Blog ▸ Here Follow new article posts on Twitter at @ContainersExpo
Some developers believe that monitoring is a function of the operations team. Some operations teams firmly believe that monitoring the systems they maintain is sufficient to run the business successfully. Most of them are wrong. The complexity of today's applications have gone far and beyond the capabilities of "traditional" system-level monitoring tools and approaches and requires much broader knowledge of business and applications as a whole. The goal of DevOps is to connect all aspects of app...
DevOps is the hottest moving target when it comes to software development methodologies. Many people fear that this fast-paced, barrier-breaking movement will leave information security best practices in the dust. Analysts provide recommendations to security professionals using bingo-laden terms like "moving security to the left" or "get a seat at the table." What we need are real-world examples and tactics for security practitioners to be part of DevOps. In his session at DevOps Summit, Andrew...
DevOps is all about agility. However, you don't want to be on a high-speed bus to nowhere. The right DevOps approach controls velocity with a tight feedback loop that not only consists of operational data but also incorporates business context. With a business context in the decision making, the right business priorities are incorporated, which results in a higher value creation. In his session at DevOps Summit, Todd Rader, Solutions Architect at AppDynamics, discussed key monitoring techniques...
The Internet of Things will greatly expand the opportunities for data collection and new business models driven off of that data. In her session at @ThingsExpo, Esmeralda Swartz, CMO of MetraTech, discussed how for this to be effective you not only need to have infrastructure and operational models capable of utilizing this new phenomenon, but increasingly service providers will need to convince a skeptical public to participate. Get ready to show them the money!
SYS-CON Events announced today that MetraTech, now part of Ericsson, has been named “Silver Sponsor” of SYS-CON's 16th International Cloud Expo®, which will take place on June 9–11, 2015, at the Javits Center in New York, NY. Ericsson is the driving force behind the Networked Society- a world leader in communications infrastructure, software and services. Some 40% of the world’s mobile traffic runs through networks Ericsson has supplied, serving more than 2.5 billion subscribers.
Want to enable self-service provisioning of application environments in minutes that mirror production? Can you automatically provide rich data with code-level detail back to the developers when issues occur in production? In his session at DevOps Summit, David Tesar, Microsoft Technical Evangelist on Microsoft Azure and DevOps, will discuss how to accomplish this and more utilizing technologies such as Microsoft Azure, Visual Studio online, and Application Insights in this demo-heavy session.