Earlier today, we reported our financial results for the third quarter and the nine months ended September 30, 2011. We are pleased to announce strong overall 2011 sales and earnings performance. We recorded our highest ever sales level for a third quarter and our second highest sales level for the first nine months in 2011.Net sales for the third quarter of 2011 totaled $348.5 million and increased by 67% from $209.2 million for the third quarter of 2010. Sales also increased by $49.5 million or 17% over the second quarter of 2011. Third quarter 2011 net income totaled $6.1 million or $0.56 per diluted share compared to a net loss of $1.2 million or $0.11 per diluted share in last year’s third quarter. Our 2011 financial results include the results of CTI, Chicago Tube and Iron, for a full quarter as we acquired the company on July 1st, 2011. CTI’s third quarter sales totaled $61.4 million. Our third quarter 2011 results also include the impact of two items worth highlighting. Cost of goods sold include a cost of $1 million related to a Chicago Tube and Iron purchase price accounting adjustments to write up the value of certain inventory to fair value at July 1, 2011. The inventory adjustment had a negative impact of $0.06 on the third quarter 2011 EPS. Additionally, our third quarter 2011 consolidated effective tax rate was 12.2% as a result of changes in unrecognized tax benefits during the quarter. The income tax benefit had a positive impact of $0.17 on the third quarter. The combined net EPS impact of the cost of goods sold and income tax items was a positive $0.11 per share. Rick will provide more details on those two items later in the call, so save your questions for later. Net sales for the first nine months of 2011 totaled $941.9 million, our second highest ever nine month revenue total. Net sales increased 60% from $589.8 million for the first nine months of 2010. For the first nine months of 2011, net income increased by $20.7 million or 555% to $24.4 million or $2.23 per diluted share compared to net income of $3.7 million or $0.34 per diluted share for last year’s first nine months.
Our 2011 year-to-date results include $919,000 of operating expense incurred during the second quarter related to the CTI acquisition which equates to about $0.05 a share of earnings. We are thrilled with our CTI acquisition as it accelerates our market share growth and was immediately accretive to our third quarter earnings. We also continue to successfully execute and are previously announced strategic investments in new products, geographies, and equipment to service our growing customer demands.Through the first nine months of 2011, our capital spending has totaled $25 million including new equipment successful information system infrastructure rollouts and facility start-ups in Gary, Indiana, Mount Sterling, Kentucky, Monterrey, Mexico, Kansas City, Missouri, Roseville, Minnesota, and Streetsboro, Ohio. We confidently look forward to our new Gary Temper Mill facility opening on time and on budget actually at the end of 2011, but ramping up in early 2012 with $150,000 incremental tons of capacity once at full operational capacity. It’s on redundant but, we are already planning for another expansion in Mount Sterling, Kentucky as our one year old facility there is now operating at full capacity. In the first nine months of 2011, we estimate these new locations startups had a drag on earnings of about $600,000, as we get each one up and running to its capacities. Our strong balance sheet remains in excellent shape with our new five-year $335 million credit facility, providing the foundation for continued growth and value creation. Read the rest of this transcript for free on seekingalpha.com