-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, mYdKCEaSiKUwCOpRDwHhT8C1y13UJ1nlwG+Ya0DQM6fsx1714cilfhxtqWXhJAhx Y9H9FAY+NkkUVQkXZ0oLGw== 0000950149-94-000229.txt : 19941104 0000950149-94-000229.hdr.sgml : 19941104 ACCESSION NUMBER: 0000950149-94-000229 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941031 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19941102 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENEVA STEEL CENTRAL INDEX KEY: 0000860192 STANDARD INDUSTRIAL CLASSIFICATION: 3310 IRS NUMBER: 930942346 STATE OF INCORPORATION: UT FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10459 FILM NUMBER: 94557194 BUSINESS ADDRESS: STREET 1: 10 S GENEVA RD CITY: VINEYARD STATE: UT ZIP: 84058 BUSINESS PHONE: 8012279000 MAIL ADDRESS: STREET 1: PO BOX 2500 CITY: PROVO STATE: UT ZIP: 84603 - -----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: keymaster@town.hall.org Originator-Key-Asymmetric: MFkwCgYEVQgBAQICAgADSwAwSAJBALeWW4xDV4i7+b6+UyPn5RtObb1cJ7VkACDq pKb9/DClgTKIm08lCfoilvi9Wl4SODbR1+1waHhiGmeZO8OdgLUCAwEAAQ== MIC-Info: RSA-MD5,RSA, EC/RV1HmWk1oOKTRORcjLJ9MAGFYbPldPgG57aGTRK1W3EuAauwDs1ZOEX9kkEMm pA3dyKXPAfYa5nb9G+Rf+A== 0000950149-94-000229.txt : 19941104 0000950149-94-000229.hdr.sgml : 19941104 ACCESSION NUMBER: 0000950149-94-000229 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 2 CONFORMED PERIOD OF REPORT: 19941031 ITEM INFORMATION: Other events ITEM INFORMATION: Financial statements and exhibits FILED AS OF DATE: 19941102 SROS: NYSE SROS: PSE FILER: COMPANY DATA: COMPANY CONFORMED NAME: GENEVA STEEL CENTRAL INDEX KEY: 0000860192 STANDARD INDUSTRIAL CLASSIFICATION: 3310 IRS NUMBER: 930942346 STATE OF INCORPORATION: UT FISCAL YEAR END: 0930 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 001-10459 FILM NUMBER: 94557194 BUSINESS ADDRESS: STREET 1: 10 S GENEVA RD CITY: VINEYARD STATE: UT ZIP: 84058 BUSINESS PHONE: 8012279000 MAIL ADDRESS: STREET 1: PO BOX 2500 CITY: PROVO STATE: UT ZIP: 84603 8-K 1 FORM 8-K DATED OCTOBER 31, 1994 1 SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 8-K CURRENT REPORT Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Date of Report (Date of earliest event reported): October 31, 1994 GENEVA STEEL COMPANY ------------------------------------------------------------------- (Exact name of registrant as specified in its charter)
Utah 1-10459 93-0942346 ---- ------- ---------- (State or other jurisdiction (Commission File No.) (IRS Employer Identification No.) of incorporation)
10 South Geneva Road, Vineyard, Utah 84058 ------------------------------------------ (Address of principal executive offices, including zip code) Registrant's telephone number, including area code: (801) 227-9000 2 Item 5. Other Events On October 31, 1994, Geneva Steel Company issued a press release announcing the preliminary results of its fourth fiscal quarter and year ended September 30, 1994 and other developments. A copy of the press release has been included as an exhibit to this report. Item 7. Financial Statements and Exhibits (a) Financial statements of businesses acquired. Not applicable. (b) Pro forma financial information. Not applicable. (c) Exhibits. The following exhibit is included herein:
Reg. S-K Item No. Description Exhibit No. - - -------- ----------- ----------- 20 Press Release dated October 31, 1994 1
3 SIGNATURE Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. GENEVA STEEL COMPANY By /s/ Dennis L. Wanlass ----------------------------------- Dennis L. Wanlass Vice President, Treasurer and Chief Financial Officer Date: October 31, 1994 EX-20 2 PRESS RELEASE DATED OCTOBER 31, 1994 1 EXHIBIT 20 [LETTERHEAD, GENEVA STEEL] FOR IMMEDIATE RELEASE DATE: OCTOBER 31, 1994 CONTACT: DENNIS L. WANLASS PHONE: (801) 227-9302 GENEVA STEEL ANNOUNCES FOURTH QUARTER/FISCAL YEAR 1994 RESULTS Vineyard, Utah--Geneva Steel (NYSE & PSE: GNV) reported today a net loss of $6.93 million, or a $.58 loss per common share (after accounting for dividends on preferred stock), for its fourth fiscal quarter ended September 30, 1994. This compares with net income of $.93 million, or a loss of $.05 per common share (after accounting for dividends on preferred stock), during the same quarter last year. The operating loss for the quarter was $2.51 million compared to a $6.33 million loss for the third fiscal quarter and operating income of $4.78 million for the fourth quarter last year. Sales and tons shipped during the quarter were $124.65 million and 366,000 tons, respectively, compared to $123.54 million and 383,000 tons, respectively, during the same period last year. QUARTERLY OPERATING RESULTS. "As anticipated, fourth quarter 1994 operating results improved as compared to the prior quarter," said Joseph A. Cannon, chairman and chief executive officer. Hot-rolled production (tons produced through the Company' 132" rolling mill) increased by 12.5 percent between the third and fourth fiscal quarters. In particular, hot-rolled production improved from a low point in June of 111,000 tons to 2 129,000, 140,000, 136,000 and 154,000 tons, respectively, for the months of July, August, September and October (estimated). "We expect operations to further improve as implementation of modernization projects continues and production disruptions decline," Cannon said. The net loss for the fourth quarter when compared to the third quarter reflects increased depreciation expense (a $1.31 million increase) related to completion of capital projects and increased interest expense due primarily to reduced capitalization of interest (a $2.92 million increase). In addition, shipments during the fourth quarter were impeded by a shortage of rail cars (an impact of approximately 9,000 tons). Rail car availability has improved during the current quarter. FISCAL YEAR END RESULTS. For the fiscal year ended September 30, 1994, the Company reported a net loss of $26.23 million, or a $2.20 loss per common share (after accounting for dividends on preferred stock), which included extraordinary financing costs of $9.53 million. These results compare with a net loss of $8.61 million, or an $.80 loss per common share, for fiscal year 1993. Fiscal year results were impacted by ongoing modernization efforts, increased depreciation expense (a $5.37 million increase), and increased interest expense due to reduced capitalization of interest and increased borrowings (a $4.63 million increase). Sales and tons shipped for the fiscal year were $486.06 million and 1,467,000 tons, respectively, compared to $465.18 million and 1,511,000 tons, respectively, for fiscal year 1993. MODERNIZATION UPDATE. The Company's modernization program is designed to increase throughput, reduce costs and improve quality. The final projects included in the Company' original modernization program include a continuous casting facility, which converts liquid steel into slabs; a wide coiled plate project, which includes facilities for the 3 production of wide coiled plate and for the further processing and handling of plate products; and rolling mill finishing stand improvements, which will improve the shape and gauge of finished products and increase rolling mill throughput. Continuous Caster. The percentage of the Company's steel slabs produced through the continuous caster has increased substantially, with 44, 77, 81 and 86 percent cast during the months of July, August, September and October (estimated), respectively. "The continuous caster is operating well and achieving the anticipated product quality and yield benefits," said Robert J. Grow, president and chief operating officer. Caster production is expected to increase as rolling mill throughput continues to improve. Wide Coiled Plate Project. The wide coiled plate project consists of two phases. The first phase includes facilities to direct roll coiled plate up to 96 inches in width and to uncoil and shear plate up to 120" in width. "The Company began rolling wide coiled plate in July 1994 and is now routinely producing coiled plate up to 96 inches in width," said Grow. "The uncoiling and shearing facilities associated with the production of wide plate from coils began operation in early August and are on track with expected production and quality standards." The second phase, which will allow the Company to coil plate up to 120" in width and 1" in thickness, is expected to be completed in early 1995. Rolling Mill Finishing Stand Improvements. The finishing stand improvements include hydraulic gauge control, roll bending and automatic roll change. In light of existing favorable steel market conditions and the Company's improved competitive position resulting from the continuous caster and other modernization projects, the Company has elected to defer completion of the finishing stand improvements. This decision is intended to minimize 4 further production disruptions in the near term, maximize throughput in a strong steel market and conserve capital. The Company has incurred approximately one half of the cost of these projects. Although these projects could be completed earlier, the Company currently anticipates completing the finishing stand improvements in the Spring of 1996. MODERNIZATION COST SAVINGS. As part of the modernization program, the Company modified its soaking pit furnaces to hold hot slabs taken from the continuous caster and to increase their temperature in preparation for rolling. As the continuous caster and other related capital projects have been implemented, the Company has encountered difficulties in achieving sufficient heating capacity from the soaking pits. Consequently, the Company is also utilizing its existing reheat furnaces for additional heating capacity. Using both the soaking pit furnaces and the reheat furnaces has increased manning levels and energy consumption and prevented the realization of approximately $8 to $10 per ton of the estimated operating cost savings associated with the modernization program. The Company is modifying the method of placing slabs in the soaking pits in an attempt to increase the heating capacity of the pits and improve slab handling. In addition, the Company is investigating other means of increasing its slab heating capacity, including induction and gas-fired furnaces. Although the Company believes that a portion of the $8 to $10 per ton operating cost savings may be realized as equipment and handling procedures are modified, the full cost savings will not be achieved until supplemental heating capacity is installed. In the interim, the Company expects to achieve a 1.9 million ton annual production rate with its existing facilities and to achieve the other operating costs savings associated with the modernization program. CAPITAL SPENDING. For fiscal year 1995, the Company has identified 5 approximately $117 million in potential modernization and other capital projects. These projects include preliminary estimates for adding additional slab heating capacity (approximately $30 million) and additional iron making capacity (approximately $29 million). The Company may, however, elect to adjust the timing and budgets of certain capital projects for operational, liquidity or other reasons. LIQUIDITY. As of September 30, 1994 and October 28, 1994, the Company had $32.35 million and $26.23 million, respectively, in borrowings under its $50 million revolving line of credit facility. The Company is in the process of completing a new line of credit facility with a syndicate of banks led by Citicorp, USA. The new $45 million line will be secured primarily by the Company's inventories. The Company is also in the process of completing a receivables securitization facility for up to $65 million. Based on the Company' current inventories base and receivables balance, the two facilities would presently provide the Company with up to $65 million in working capital. Geneva Steel is the only integrated steel mill operating west of the Mississippi River. The Company manufactures hot- rolled steel plate, sheet and pipe for sale primarily in the western and central United States. 6 GENEVA STEEL COMPANY STATEMENTS OF INCOME AND SELECTED FINANCIAL DATA (Unaudited) (In thousands, except per share data)
THREE MONTHS ENDED YEAR ENDED SEPTEMBER 30, SEPTEMBER 30, -------------------- -------------------- 1994 1993 1994 1993 -------- -------- -------- -------- Net sales $124,653 $123,536 $486,062 $465,181 Cost of sales 121,656 112,791 470,548 443,458 -------- -------- -------- -------- Gross margin 2,997 10,745 15,514 21,723 Selling, general and administrative expenses 5,504 5,963 22,305 20,621 -------- -------- -------- -------- Income (loss) from operations (2,507) 4,782 (6,791) 1,102 -------- -------- -------- -------- Other income (expense): Interest and other income 112 873 1,583 1,885 Interest expense (8,326) (4,133) (21,722) (17,096) -------- -------- -------- -------- (8,214) (3,260) (20,139) (15,211) -------- -------- -------- -------- Income (loss) before provision (benefit) for income taxes and extraordinary item (10,721) 1,522 (26,930) (14,109) Provision (benefit) for income taxes (4,069) 594 (10,234) (5,503) -------- -------- -------- -------- Income (loss) before extraordinary item (6,652) 928 (16,696) (8,606) Loss on early extinguishment of debt (net of benefit for income taxes) 276 - 9,534 - -------- -------- -------- -------- Net income (loss) (6,928) 928 (26,230) (8,606) Less - Preferred stock dividend and accretion requirements 1,846 1,627 7,046 3,466 -------- -------- -------- -------- Net loss applicable to common shares $ (8,774) $ (699) $(33,276) $(12,072) ======== ======== ======== ======== Loss per common share before extraordinary item $ (.56) $ (.05) $ (1.57) $ (.80) Extraordinary item per common share (.02) - (.63) - -------- -------- -------- -------- Net loss per common share $ (.58) $ (.05) $ (2.20) $ (.80) ======== ======== ======== ======== Weighted average shares outstanding 15,157 15,079 15,129 15,059 ======== ======== ======== ======== Steel tons shipped 366 383 1,467 1,511 ======== ======== ======== ======== Capital expenditures $ 26,589 $ 40,386 $164,838 $ 82,534 ======== ======== ======== ======== Depreciation expense $ 8,031 $ 5,144 $ 26,111 $ 20,738 ======== ======== ======== ========
--MORE-- 7 GENEVA STEEL COMPANY SUMMARY BALANCE SHEET INFORMATION (Unaudited) (Dollars in thousands)
September 30, ------------------------ 1994 1993 -------- -------- Cash and cash equivalents $ - $ 64,267 Current assets 143,161 175,180 Property, plant and equipment (net) 453,286 314,590 Total assets 606,815 498,384 Current liabilities 96,364 86,013 Long-term debt 357,348 224,991 Total liabilities 460,119 326,623 Redeemable preferred stock 43,032 35,986 Total stockholders' equity 103,664 135,775
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