Earnings - 3rd try to paste resultsWELLAND, ON, June 7 - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside
Steel" or the "Company") today reported results for the year ended March 31,
2010. The Company's revenue for the fourth quarter ended March 31, 2010, was
$43,585,993, an improvement of $16,546,219 or 61.2% from the previous quarter
ended December 31, 2009, and an improvement of $10,007,996 or 29.8% from the 3
months ended March 31, 2009. Revenue for the first quarter of fiscal 2011 is
expected to be approximately $60,000,000, which would represent an improvement
of approximately 37.6% from the fourth quarter ended March 31, 2010, revenue
of $43,585,993.
For the year ended March 31, 2010, the Company's revenue was
$104,437,833, which is a decline of $102,487,969 or 49.5% compared to revenue
of $206,925,802 for the year ended March 31, 2009. The Company's net loss for
the year ended March 31, 2010, was $13,087,382, a decline of $19,630,082 from
net income of $6,542,700 in the prior fiscal year.
The Company's EBITDA was ($15,160,736) for the year ended March 31, 2010,
a decline of $25,666,928 from EBITDA of $10,506,192 in the prior fiscal year.
Despite these losses, the Company was able to maintain positive cash flows by
selling its surplus inventory. The Company's debt was reduced by $3,354,653 as
at March 31, 2010. The Company had a loss per share of
.21 for the year
ended March 31, 2010, compared to earnings per share of
.10 for the prior
year. The Company has been EBITDA positive since February 2010.
As previously reported, the demand in the oil and gas sector for the Oil
Country Tubular Goods manufactured by Lakeside Steel Corporation ("Lakeside"),
Lakeside Steel's wholly-owned subsidiary, experienced a positive increase in
the third quarter. This continued into the fourth quarter and management
believes this trend will continue through the first half of fiscal 2011.
Lakeside's current order backlog is approximately $100,000,000 and will
provide full production loads in both of its operating mills through September
2010, with some orders being scheduled into December 2010.
Ron Bedard, President and CEO, commented that "Lakeside has made
significant progress in the fourth quarter ending March 31, 2010. While we
experienced a loss in the fourth quarter, we were able to contain costs,
reduce the loss significantly as compared to Q3, and diversify our customer
base. We expect to return to profitability during the quarter ending June 30,
2010, as a result of strong demand, cost savings and good operational
performance. Lakeside expects that the demand for its products will continue
for several quarters. Lakeside continues to explore opportunities to grow our
business, both in Welland and closer to our end use markets."
Lakeside expects to issue its financial statements and annual MD&A for
the year ended March 31, 2010, by Thursday June 10, 2010.