This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Synalloy's Fourth Quarter Earnings Per Share Increase By 45% Excluding Palmer Acquisition Costs

The fabrication backlog continues to decline but management is seeing recent stabilization. The current backlog remains satisfactory for scheduling and production control.  Approximately 45% of fabrication's current backlog comes from paper and wastewater treatment projects and 44% is for chemical projects. Total fabrication backlog was $19,254,000 at December 29, 2012 and $22,743,000 at December 31, 2011.

Specialty Chemicals Segment's sales and profit improvement should continue in 2013 as the additional defoamer business has been completely implemented in production and the Specialty Chemicals Segment will reflect a full year of higher production in its 2013 results. Management is also pursuing additional sales opportunities for non-defoamer products. Operating margins should remain at current levels as management believes they can be successful in passing raw material price increases to the customer.

Statements included in this earnings release include non-GAAP (Generally Accepted Accounting Principles) measures and should be read along with the accompanying tables which provide a reconciliation of non-GAAP measures to GAAP measures. Adjusted EPS is a non-GAAP measure and excludes the after-tax effect of acquisition costs, inventory losses and tax rate changes. Management believes that these non-GAAP measures provide additional useful information to allow readers to compare the financial results between periods. Non-GAAP measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider the company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the company's results or financial condition as reported under GAAP.

For more information about Synalloy Corporation, please visit our web site at www.synalloy.com .

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995

All statements contained in this release that are not historical facts are "forward-looking statements." The words "estimate," "project," "intend," "expect," "believe," "anticipate," "plan" and similar expressions identify forward-looking statements. The forward-looking statements are subject to certain risks and uncertainties, including without limitation those identified below, which could cause actual results to differ materially from historical results or those anticipated. Readers are cautioned not to place undue reliance on these forward-looking statements. The following factors could cause actual results to differ materially from historical results or those anticipated: adverse economic conditions, the impact of competitive products and pricing, product demand and acceptance risks, raw material and other increased costs, customer delays or difficulties in the production of products, unavailability of debt financing on acceptable terms and exposure to increased market interest rate risk, inability to comply with covenants and ratios required by our debt financing arrangements and other risks detailed from time-to-time in Synalloy's Securities and Exchange Commission filings. Synalloy Corporation assumes no obligation to update the information included in this release.
SYNALLOY CORPORATION COMPARATIVE ANALYSIS
         
  THREE MONTHS ENDED YEAR ENDED
  Dec 29, 2012 Dec 31, 2011 Dec 29, 2012 Dec 31, 2011
  (unaudited) (unaudited) (unaudited)  
Net sales      
Metals Segment  $ 40,051,000  $ 29,974,000  $ 146,285,000  $ 127,727,000
Specialty Chemicals Segment 13,087,000 10,267,000 51,374,000 42,848,000
   $ 53,138,000  $ 40,241,000  $ 197,659,000  $ 170,575,000
Operating income (loss)        
Metals Segment  $ 1,780,000  $ 1,948,000  $ 6,094,000  $ 9,338,000
Specialty Chemicals Segment 1,102,000 (97,000) 4,843,000 2,221,000
  2,882,000 1,851,000 10,937,000 11,559,000
Unallocated expenses        
Corporate 926,000 521,000 3,193,000 2,668,000
Acquisition related costs 252,000 -- 881,000 --
Interest and debt expense 292,000 48,000 543,000 141,000
Change in fair value of interest rate swap (62,000) -- 114,000 --
Other income  --   --  (135,000)  --
         
Income before income taxes 1,474,000 1,282,000 6,341,000 8,750,000
Provision for income taxes 509,000 265,000 2,106,000 2,953,000
         
Net income  $ 965,000  $ 1,017,000  $ 4,235,000  $ 5,797,000
         
Net income per common share      
Basic  $ 0.15  $ 0.16  $ 0.67  $ 0.92
Diluted  $ 0.15  $ 0.16  $ 0.66  $ 0.91
         
Average shares outstanding        
Basic 6,351,000 6,325,000 6,342,000 6,313,000
Diluted 6,409,000 6,369,000 6,394,000 6,362,000
         
Backlog - Fabrication  $ 19,254,000  $ 22,743,000    
     
Condensed Balance Sheet  Dec 29, 2012 Dec 31, 2011
     
Assets    
Cash  $ 1,085,000  $ 110,000
Accounts receivable, net 31,178,000 26,582,000
Inventories 50,163,000 43,063,000
Sundry current assets 8,496,000 4,883,000
Total current assets 90,922,000 74,638,000
Property, plant and equipment, net 28,035,000 18,714,000
Goodwill and other intangible assets 27,000,000 2,472,000
Other assets 2,550,000 3,092,000
     
Total assets  $ 148,507,000  $ 98,916,000
     
Liabilities and Shareholders' Equity    
Accounts payable  $ 10,525,000  $ 13,043,000
Accrued expenses 9,705,000 5,251,000
Current portion of long-term debt 2,274,000 --
Current portion of contingent obligation 2,500,000 --
Total current liabilities 25,004,000 18,294,000
Long-term debt 37,593,000 8,650,000
Long-term contingent obligation 5,709,000 --
Other long-term liabilities 8,427,000 3,353,000
     
Shareholders' equity 71,774,000 68,619,000
     
Total liabilities and shareholders' equity  $ 148,507,000  $ 98,916,000
CONTACT: Rick Sieradzki at (864) 596-1558

6 of 6

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,683.58 -46.53 -0.26%
S&P 500 2,068.76 -8.02 -0.39%
NASDAQ 4,991.94 -17.2740 -0.34%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs