TMS International Corp. Announces New Contracts Totaling More Than $266 Million
PITTSBURGH, Jan. 7, 2013 /PRNewswire/ -- TMS International Corp. (NYSE: TMS), the parent company of Tube City IMS Corporation, a leading provider of outsourced industrial services to steel mills globally, today announced that it has secured new mill services contracts totaling more than $266 million in revenue over the life of the contracts at expected production levels and commercial sales, with aggregate growth capital investments of approximately $52 million.
The terms of the contracts, and a new joint-venture, vary and are for a variety of outsourced services at steel mills in Poland, Belgium, Malaysia and the United States.
The first contract represents one of the largest single contract wins in the history of the company and will mark the company's first mill services operation at a steel mill in Poland. The long-term contract includes a comprehensive suite of services being outsourced for the first time by the mill, including transportation, processing and sales of slag, as well as scrap handling, receiving, inventory control, loading and delivery to charge buckets. Services under the contract are scheduled to be phased-in beginning March 2013 with the processing and metal recovery from an existing slag bank, and full implementation of all services scheduled for the second quarter of 2014.The company has also contracted to provide additional services at steel mills in Belgium and the United States, expanding the company's presence in both countries with existing customers. Further, the company continues to maintain its leading presence in the United States, where it performs on-site outsourced mill services in 57 of the United States' 115 steel producing mills. "This new contract win in Poland further expands and solidifies TMS's relationship with a leading global steel producer and reaffirms that steel producers globally are increasingly recognizing the benefits of outsourcing non-core services," said Raymond Kalouche, President and CEO. "We are pleased with these new contracts and look forward to continuing to support our customers with our world-class service globally. We will build on these successes by continuing to expand into new markets as we create value for our customers and shareholders." The company also announced today that it has purchased a non-controlling interest in a joint venture that will provide mill services to one of Malaysia's largest steelmakers. These services under a contract with the steelmaker include metal recovery, slag processing and slag sales. "We are delighted to have established an initial presence in the growing and strategic Malaysian steel producing market, and we look forward to working with our new partners to provide state-of-the-art service to our customer," Mr. Kalouche said. These new contract wins follow the 17 new contract wins announced in 2012 representing approximately $308 million of cumulative revenue over the terms of the contracts at expected production levels, with aggregate growth capital investments of approximately $37 million. About TMS International Corp. TMS International Corp., through its subsidiaries, including Tube City IMS Corporation, is the largest provider of outsourced industrial services to steel mills in North America as measured by revenue and has a substantial and growing international presence. With this new contract, the company now provides mill services at 81 customer sites in 11 countries and operates 36 brokerage offices from which it buys and sells raw materials across five continents. Forward Looking Statements Certain information in this news release contains forward-looking statements with respect to the company's financial condition, results of operations or business or its expectations or beliefs concerning future events. Such forward-looking statements include the discussions of the potential new debt refinancing, the company's business strategies, estimates of future global steel production and other market metrics and the company's expectations concerning future operations, margins, profitability, liquidity and capital resources. Although the company believes that such forward-looking statements are reasonable, it cannot assure you that any forward-looking statements will prove to be correct. Forward-looking statements may be preceded by, followed by or include the words "may," "will," "believe," "expect," "anticipate," "intend," "plan," "estimate," "could," "might," or "continue" or the negative or other variations thereof or comparable terminology. Such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, estimates and assumptions that may cause the company's actual results, performance or achievements to be materially different. Additional information relating to factors that may cause actual results to differ from the company's forward-looking statements can be found in the company's most recent Annual Report on Form 10-K and elsewhere in the company's filings with the Securities and Exchange Commission. You should not place undue reliance on any of these forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any such statement to reflect new information, or the occurrence of future events or changes in circumstances.
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