They supply Boeing (BA) and it’s 787 Dream-Liner (uses twice as much aluminum sheeting as rest of BA’s models), among other aerospace companies that will be refurbishing fleets over the next decade, the oil and gas service industry, The trucking industry, Farm and agriculture equipment, Major Appliance Manufacturers, General Electric (GE), They make some electrical components and cabinets for them. Like the aluminum cabinets you see on street corners that house the traffic light controllers. That is bullish in itself for USA infrastructure revamp. This company has a monopoly on many specific things used in a lot of specific industries that will be seeing increased sales and demand soon. They also have some very lucrative Federal Government contracts both military and non. They also make ‘heat exchangers’ for geothermal wells/alternative energy and home heating industry. I personally would give this company any credit facility they needed or wanted and send them on a shopping spree to grow some more. I also see a dividend in future from the cash flow creation taking shape here. They make a lot of the steel for the automotive business (flat rolled steel) from their Ohio Valley recent acquisition. This is a USA jobs producer company (that goes milessssssssss in my trading book) Look below. They are paying less in taxes and employing more people. All USA companies should take note and lessons!
7. Accrued Liabilities
Accrued liabilities consist of the following:
|June 30,||December 31,|
|Salaries and employee benefits||$||14.2||$||10.8|
June 29, 2010
Metals USA Holdings announced the acquisition of J. Rubin & Co.. A well-established metal service center with locations in Illinois, Wisconsin and Minnesota, J. Rubin’s broad product range consists of carbon steel bars, carbon plate and laser-cut flat-rolled products. J. Rubin’s product mix and value-added services are provided to a diverse range of end-markets.
March 11, 2011
Acquires The Richardson Trident Company. It’s third acquisition since its IPO last April. With sales for the twelve months ending December 31, 2010 at approximately $148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident’s eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States
Flag Intermediate Holdings Corporation (“Flag Intermediate”) and its 100% wholly owned subsidiary Metals USA, Inc. (“Metals USA”) and the 100% wholly owned subsidiaries of Metals USA are referred to collectively herein as the “Company,” “we” or “our.” Metals USA prior to its November 30, 2005 acquisition by Apollo Management V L.P. (“Apollo Management” and together with its affiliated investment entities “Apollo” or “Apollo V”) (the “Merger”) is referred to herein as the “Predecessor Company.” The condensed consolidated financial statements include the accounts of Flag Intermediate, and Metals USA and its subsidiaries. Intercompany accounts and transactions have been eliminated in the condensed consolidated financial statements. Flag Intermediate and Metals USA are 100% wholly owned subsidiaries of Metals USA Holdings Corp. (“Metals USA Holdings”).
“Trident provides a broad range of metals and processing services with a product mix that emphasizes aluminum, stainless steel and nickel. The majority of Trident’s customer base operates in the oil and gas services sector. Trident also serves customers in the aerospace, defense and transportation industries. Processing services include precision sawing, boring, honing, slitting, sheeting, shearing and tuning. Trident also offers supply chain solutions such as just-in-time delivery and value-added components required by original equipment manufacturers. As a result of the acquisition, we expect to increase our non-ferrous and value-added processing product and service offerings in the geographic areas and end markets that Trident currently serves.”
This from the CEO’s comments today in the 3Q conference call. Who by the way, while on the call was very adamant as to how MUSA managed to do so well this past quarter. And the PE the market is currently treating MUSA with is utterly ridiculous. He seemed actually mad in his speaking tone about this. I think he is justified in his sentiment based upon the growth MUSA has exhibited in it’s recent acquisitions within the space. I also took note how he was very stern and repetitive towards the 3 analyst who were on the call (GS, JMP, JEF). Who all congratulated him on a ‘beat’ on earnings this Q. I am expecting an upgrade or two in the net few days from someone beside myself.
Metal shipments were 340,600 tons for the third quarter of 2011, up 25% from metal shipments of 272,600 tons in the third quarter of 2010. Metal shipments for the first nine months of 2011 were 1,069,000 tons, up 35% compared to metal shipments of 791,600 tons for the first nine months of 2010. Toll processed tonnage was 36,900 tons during the third quarter of 2011 compared to 15,500 tons for the third quarter of 2010. Toll processed tonnage was 123,600 tons during the first nine months of 2011 compared to 36,000 tons for the first nine months of 2010.
Lourenco Goncalves, the Company’s Chairman, President and C.E.O., stated: “Our third quarter results confirm we are succeeding with our plan to make Metals USA the most efficient company in the service center industry. We operate with a mentality to constantly go after profitable business, regardless of the economic headwinds, and have shifted our business to support markets that are doing well. Growth in automotive, energy, lawn and garden, heavy equipment, and agriculture, to name a few, have all contributed to offset end-markets that continue to struggle with recession overhang, such as non-residential construction.”
*YOY a 25% increase in shipping tonnage
*43% improvement in revenues
*70% improvement in EBITDA
Net sales for the third quarter of 2011 were $492.3 million, up 43% from net sales of $345.3 million for the third quarter of 2010. Net income for the third quarter of 2011 was $16.7 million compared to net income of $5.8 million for the third quarter of 2010. Earnings per diluted share (“EPS”) were $0.45 in the third quarter of 2011 compared to $0.16 for the third quarter of 2010.
Net sales for the first nine months of 2011 were $1,430.2 million, up 48% from net sales of $968.2 million for the first nine months of 2010. Net income for the first nine months of 2011 was $50.6 million compared to net income of $8.4 million for the nine months ended September 30, 2010. EPS was $1.36 in the first nine months of 2011 compared to $0.26 for the first nine months of 2010.
I’m a ‘committed, shares in strong hands’ LONG here! And very bullish on this company here today at $10. I owned the stock higher from here but did some good ‘blood in the streets’ buying in August to dollar cost average down to a nice avg that is well above water now. But frankly, that lack of them NOT doing the same opportunistic buying (and them as insiders and me as only Average Joe Investor) bothers me some. They need to put up some money and do some buying for me to commit more capital to my investment here. But what I do own I feel is going to make a lot of money here!
The 11 1/8% Senior Secured Notes due 2015 (Metals USA Notes) are obviously first thing to get paid down with cash or restructured.
Metals USA Holdings is not a guarantor of the Metals USA Notes. There is a limitation on the amount of funds which can be transferred by the Guarantors to Metals USA Holdings in the form of dividends. Such amount available for distribution shall be increased by an amount equal to 50% of Consolidated Net Income, as defined, or reduced by an amount equal to 100% of Consolidated Net Loss, as defined. As of June 30, 2011, $3.4 was available for general distribution under the restricted payment covenant contained in the Indenture governing the Metals USA Notes.
Com onnnnnn Bank of America, N.A., as Administrative Agent and Collateral Agent…..help a brother out!
Entry into a Material Definitive Agreement, Creation of a Direct Financ
Item 1.01 Entry into a Material Definitive Agreement. On December 17, 2010, Flag Intermediate Holdings Corporation (“Flag Intermediate”), Metals USA, Inc. (“Metals USA”), and certain subsidiaries of Metals USA (collectively referred to herein as the “Company”) entered into an amended and restated loan and security agreement (the “New ABL Credit Agreement”) with the lenders party thereto and the Bank of America, N.A., as administrative agent and collateral agent. Flag Intermediate and Metals USA are wholly-owned subsidiaries of Metals USA Holdings Corp.The New ABL Credit Agreement provides for a new $500 million (which may be increased up to $750 million at the option of the Company), 5-year, senior secured asset-based credit facility (the “New ABL Facility”) that amends and restates the Company’s existing $625 million senior secured asset-based credit facility (the “Existing ABL Facility”) that was scheduled to mature on November 30, 2011.At the Company’s option, interest accrues on the loans made under the New ABL Facility at either LIBOR plus a specified margin (currently set at 2.50%), or the Base Rate (which is based off of the federal funds rate plus 0.50%, Bank of America’s prime rate or LIBOR plus 1.00%), plus a specified margin (currently set at 1.50%).
|% Held by Insiders1:||1.33%|
|% Held by Institutions1:||94.40%|
|Shares Short (as of Sep 30, 2011)3:||600.12K|
|Short Ratio (as of Sep 30, 2011)3:||3.80|
|Short % of Float (as of Sep 30, 2011)3:||5.10%|
|Shares Short (prior month)3:||606.66K|
|Top Institutional Holders|
|Top Mutual Fund Holders|