Kinark Reports Sharp Gain in Third Quarter Earnings
Net earnings of Kinark Corporation for the third quarter of 1999 rose sharply over the same period a year ago, Michael T. Crimmins, chairman and chief executive officer, announced today. The chief executive officer also announced the company had achieved higher net earnings for the first nine months of 1999 versus the comparable 1998 period.
Kinark's net earnings for the third quarter of 1999 were $362,000, or $.05 per share, compared to net earnings of $52,000, or $.01 per share for the third quarter of 1998. Sales for the third quarter of 1999 were $11,504,000 compared to sales of $12,206,000 for the same quarter of 1998.
Net earnings for the nine months ended September 30, 1999, were $880,000, or $.13 per share, versus net earnings of $775,000, or $.11 per share, for the nine-month period a year ago. Kinark's sales for the nine-month period were $34,542,000 compared to $37,280,000 for the same period a year ago.
The company's operating cash flow for the first nine months of 1999 was $2,924,000, an increase of 29% over $2,261,000 for the same period of 1998.
Commenting on the results, Mr. Crimmins said: "Kinark's strong earnings growth is being driven by its core hot dip galvanizing business which achieved operating earnings almost double over the third quarter of 1998. The tonnage of incoming steel was up measurably from the same quarter a year ago, and we are benefitting from planned improvements in productivity from our eleven-plant galvanizing operation. The success of these programs is being reflected in increased margins and improved service for our customers."
During the current third quarter, the company completed a major facilities expansion at its Nashville galvanizing plant, adding a larger 51-foot kettle to increase capacity and meet the requirements of the market in the Southeast.
The company recently announced completion of an expanded $23.7 million loan agreement with Bank One, Oklahoma that replaced a previous loan agreement. The new three-year agreement provides the company credit facilities for projected growth in working capital needs, plus funding for strategic capital expansion. "The new loan arrangement, combined with our continuing improvement in earnings, is expected to have a very positive impact on the company as we evaluate further opportunities for growth in the galvanizing business," stated Mr. Crimmins.
Statements in this release that are not strictly historical may be "forward-looking" statements, which involve risks and uncertainties. These include economic and regulatory conditions, issues with suppliers, market demand, pricing, and competitive factors, among others, which are set forth in the company's filings with the Securities and Exchange Commission.
Tulsa-based Kinark Corporation (AMEX:KIN) conducts business in hot dip galvanizing, bulk liquid storage and warehousing services. Galvanizing plants located in Denver, Houston, Hurst (Dallas/Fort Worth), Kansas City, Louisville, Nashville, St. Louis and Tulsa provide metals corrosion protection for commercial, construction and industrial markets. Chemical storage and warehousing facilities are located in Chicago.