SPARTANBURG, S.C., Oct. 21, 2013 (GLOBE NEWSWIRE) -- Synalloy Corporation (Nasdaq:SYNL), a growth oriented company that engages in a number of diverse business activities including the production of stainless steel pipe, fiberglass and steel storage tanks, specialty chemicals and fabrication of stainless and carbon steel piping systems, announces that the third quarter of 2013 produced net sales of $54,397,000, up 8% compared to net sales of $50,271,000 for the third quarter of 2012. Net income for the third quarter of 2013 was $1,461,000 or $0.23 per share, up 73% over net earnings of $843,000, or $0.13 per share for the same quarter in the prior year. For the first nine months, net sales for 2013 were $168,506,000, an increase of 17% from $144,521,000 for the same period in the prior year. Net income was $4,840,000 or $0.75 per share for the first nine months of 2013, up 48% over net income of $3,270,000, or $0.51 per share for the first nine months of 2012. In September 2013, the Company recorded a bargain purchase gain of approximately $1,077,000, net of taxes, which resulted from its acquisition of Color Resources, LLC.
The Company evaluates its financial performance by eliminating all non-recurring, non-operational items from Net Income and Earnings per share. Adjusted Net Income, a non-GAAP financial measure, represents reported income before taxes and eliminates the effect of inventory loss from change in nickel prices, lower of cost or market adjustment, acquisition costs, bargain purchase gain on CRI acquisition and retention expense. In addition, recurring operating expenses that are in one period but not in the other are adjusted. Finally a fixed 34% effective tax rate is applied to all periods to eliminate any income tax effect on operating results. The Company utilizes these non-GAAP measurements to present a more meaningful picture of core operations. Adjusted Net Income for the third quarter of 2013 was $1,308,000, or $0.20 per share, which represented a decrease of $600,000 or 31% from $1,908,000, or $0.30 per share, respectively, for the third quarter of 2012. For the first nine months of 2013, Adjusted Net Income was $5,759,000, or $0.89 per share, compared to $5,827,000, or $0.91 per share, for the same period of the prior year. Approximately $0.08 per share of the shortfall for the third quarter and first nine months of 2013 compared to 2012 resulted from the Palmer inventory write down, the Synalloy Fabrication claim reserve and the cost of sending welders to Crossett for a month. The balance of the shortfall was due to under performance at BRISMET. Palmer, Synalloy Fabrication and Manufacturers Chemicals exceeded the prior year for the third quarter and first nine months of 2013. As a result of the factors listed below in the Metal Segment section, BRISMET showed Adjusted Net Income below the prior year by $1,312,000 for the third quarter of 2013 and $4,358,000 for the first nine months of 2013.
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