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North American Galvanizing & Coatings Reports Record Fourth Quarter and Fiscal 2007 Earnings

Published on 2008-02-20. Author : SpecialChem

TULSA, Okla. -- North American Galvanizing & Coatings, Inc. has announced record fourth quarter 2007 net income of $2.2 million or $.17 per share, compared to fourth quarter 2006 net income of $1 million, or $.08 per share. Consolidated net earnings for 2007 were $9.2 million, the highest in the Company's fifty year history. 2007 net income and $.72 earnings per share, compared with $4.5 million net income in 2006 ($.39 per share), representing a 104% increase in net earnings and an 85% increase in earnings per share. Cash flow from operating activities was $14.5 million in 2007 compared to $6.6 million in 2006.

All per share data are reported on a fully-diluted basis and have been adjusted to reflect the effect of the June 2007 three-for-two stock split effected by a stock dividend. The Board of Directors declared the stock dividend as a sign of their confidence in the performance of your Company. We believe the additional 4.2 million shares received by our shareholders will enhance both the liquidity and market perception of the Company.

Revenues for 2007 rose 19% to $88.4 million compared to $74.1 million in 2006 due to increased sales prices in response to increases in zinc costs. Although the price of zinc and galvanizing declined in the second half of 2007, the Company's ability to capitalize on high quality, timely customer service and the generally high demand for galvanizing services have provided for steady profitability.

Commenting on the results for the fourth quarter of 2007, Ronald J. Evans, president and chief executive officer, said "The overall hot dip galvanizing market strength experienced for the first three quarters continued through year end. We continue to practice disciplined cost control and focus on margin management which resulted in a record positive cash flow for the year. We paid down all outstanding bank debt during 2007, a significant milestone for the Company."

Volumes for 2007 were 2.8% lower than 2006 primarily as a result of the Company's review and acceptance of customer orders only at adequate margin levels, and the shutdown of the Canton plant for the scheduled replacement of the kettle and furnace during the month of July, 2007.

About North American Galvanizing & Coatings Inc.:

North American Galvanizing is a leading provider of hot-dip galvanizing and coatings for corrosion protection of fabricated steel products. The Company conducts its galvanizing and coating business through a network of plants located in Canton, Ohio; Denver, Hurst (Dallas/Forth Worth), Houston, Kansas City, Louisville, Nashville, St. Louis and the Tulsa area. Hot-dip galvanizing provides metals corrosion protection for many product applications used in commercial, construction and industrial markets.

This press release may contain "forward-looking statements" as defined under U.S. securities laws, including, but not limited to, statements concerning the Company's beliefs and expectations of future performance. Forward-looking statements are subject to certain risks and uncertainties that could cause actual results to differ materially from such forward-looking statements and management's present expectations or projections. These risks and uncertainties include the risk factors described in the Company's SEC filings including the Company's Annual Report on Form 10- K filed with the Securities and Exchange Commission on February 14, 2007. The Company cannot be assured that continuing zinc price increases will continue to be absorbed by the market. These forward-looking statements are made as of the date of this press release. The Company assumes no obligation to update or revise these statements or to provide reasons why actual results may differ.

Source: North American Galvanizing & Coatings Inc.


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