WELLAND, ON, Aug. 4 /CNW/ - Lakeside Steel Inc. (TSX-V: LS) ("Lakeside Steel" or the "Company") today reported results for the first quarter ended June 30, 2009. For the three months ended June 30, 2009, the Company's revenue was $15,999,389, which is a decline of $33,445,323 or 67.6% compared to revenue of $49,444,712 for the first quarter ended June 30, 2008. The Company's net loss in the first quarter ended June 30, 2009 was $2,988,165, a decline of $3,082,697 from a net income of $94,532 for the comparable period in the prior year. The Company had a loss per share of $0.05 for the three months ended June 30, 2009, compared to earnings per share of $0.00 for the same period in the prior year.
The Company's EBITDA was ($3,581,519) for the three month period ended June 30, 2009, a decline of $4,354,598 from EBITDA of $773,079 for the 3 month period ended June 30, 2008.
Demand in the oil and gas sector for the Oil Country Tubular Goods manufactured by Lakeside Steel Corp. ("Lakeside"), Lakeside Steel's wholly-owned subsidiary, has experienced a substantial reduction, as reflected in the performance above. Management believes that this trend will continue into the second quarter of fiscal 2010 and will continue to align costs with production volumes.
Tim Clutterbuck, President and Chief Executive Officer of Lakeside stated: "While the results for this quarter are disappointing, they are not unexpected. We have worked and will continue to work on implementing cost cutting measures with a view to minimizing the impact that the current economic environment has on our business and being well positioned to capitalize on the eventual market turnaround."
On June 22, 2009, the Company paid a $0.05 per common share dividend to shareholders of record at the close of business on June 8, 2009. In connection with the dividend, the exercise price of the Company's publicly traded warrants has been adjusted from $0.52 to $0.404 and in addition each warrant is 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 of underlying common shares is that the resulting exercise price for one warrant is $0.31 per common share. All other terms of the warrants remain unadjusted.
About Lakeside Steel Inc.
Lakeside Steel is the parent company of Lakeside. Lakeside, located in Welland, Ontario, is a diversified steel pipe and tubing manufacturer. Lakeside's list of customers includes large oil and gas, mining, automotive and commercial and industrial supply companies. In addition to supplying its products in these industries, Lakeside manufactures pipe and mechanical tubing for the resale market, which is sold to distributors in Eastern Canada and the Northeastern United States. Lakeside manufactures a variety of products for these industries including oil well tubing and casing, mechanical tubing, pressure tubing, automotive tubing, hollows for redraw, line pipe, heating and plumbing pipe, drill rod and specialty tubing. Lakeside serves customers worldwide, either directly or indirectly, in Canada, Australia and the United States.
This press release may contain forward-looking statements with respect to the Company, its operations, strategy, financial performance and condition. These statements generally can be identified by use of forward looking words such as "may", "will", "expect", "estimate", "anticipate", intends", "believe" or "continue" or the negative thereof or similar variations. The actual results and performance of the Company discussed herein could differ materially from those expressed or implied by such statements. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Important factors that could cause actual results to differ materially from expectations include, among other things, general economic and market factors, competition, changes in government regulations and the factors described under "Risk Factors" in the Management's Discussion and Analysis and Filing Statement of the Company which is available at www.sedar.com. The cautionary statements qualify all forward-looking statements attributable to the Company and persons acting on their behalf. Unless otherwise stated, all forward-looking statements speak only as of the date of this press release and the Company has no obligation to update such statements.
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