Lakeside Steel 1st quarter resultsLakeside Steel releases first quarter results and adjusts warrants
WELLAND, ON, Aug. 4 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("LakesideSteel" or the "Company") today reported results for the first quarter endedJune 30, 2009. For the three months ended June 30, 2009, the Company's revenuewas $15,999,389, which is a decline of $33,445,323 or 67.6% compared torevenue of $49,444,712 for the first quarter ended June 30, 2008. TheCompany's net loss in the first quarter ended June 30, 2009 was $2,988,165, adecline of $3,082,697 from a net income of $94,532 for the comparable periodin the prior year. The Company had a loss per share of $0.05 for the threemonths ended June 30, 2009, compared to earnings per share of $0.00 for thesame period in the prior year. The Company's EBITDA was ($3,581,519) for the three month period endedJune 30, 2009, a decline of $4,354,598 from EBITDA of $773,079 for the 3 monthperiod ended June 30, 2008. Demand in the oil and gas sector for the Oil Country Tubular Goodsmanufactured by Lakeside Steel Corp. ("Lakeside"), Lakeside Steel'swholly-owned subsidiary, has experienced a substantial reduction, as reflectedin the performance above. Management believes that this trend will continueinto the second quarter of fiscal 2010 and will continue to align costs withproduction volumes. Tim Clutterbuck, President and Chief Executive Officer of Lakesidestated: "While the results for this quarter are disappointing, they are notunexpected. We have worked and will continue to work on implementing costcutting measures with a view to minimizing the impact that the currenteconomic environment has on our business and being well positioned tocapitalize on the eventual market turnaround." On June 22, 2009, the Company paid a $0.05 per common share dividend toshareholders of record at the close of business on June 8, 2009. In connectionwith the dividend, the exercise price of the Company's publicly tradedwarrants has been adjusted from $0.52 to $0.404 and in addition each warrantis exercisable for 1.287 common shares, an increase from one common share.Accordingly the effect of the changes in the exercise price and the number ofunderlying common shares is that the resulting exercise price for one warrantis $0.31 per common share. All other terms of the warrants remain unadjusted.