They supply Boeing (NYSE:BA) and it’s 787 Dream-Liner (uses twice as much aluminum sheeting as rest of BA’s models), among other aerospace companies that will be refurbish fleets over next decade, the oil and gas service industry, The trucking industry, Farm and agriculture equipment, Major Appliance Manufacturers, General Electric (NYSE:GE), They make some electrical components and cabinets for them. Like the aluminum cabinets you see on street corners that house the traffic light controllers. That is bullish in itself for USA infrastructure revamp. This company has a monopoly on many specific things used in a lot of specific industries that will be seeing increased sales and demand soon. They also have some very lucrative Federal Government contracts both military and non. They also make ‘heat exchangers’ for geothermal wells/alternative energy and home heating industry. I personally would give this company any credit facility they needed or wanted and send them on a shopping spree to grow some more. I also see a dividend in future from the cash flow creation taking shape here. They make a lot of products for the automotive business (flat rolled steel) from their Ohio Valley recent acquisition. This is a USA jobs producer company (that goes milessssssssss in my trading book)
June 29, 2010
Metals USA Holdings announced the acquisition of J. Rubin & Co.. A well-established metal service center with locations in Illinois, Wisconsin and Minnesota, J. Rubin’s broad product range consists of carbon steel bars, carbon plate and laser-cut flat-rolled products. J. Rubin’s product mix and value-added services are provided to a diverse range of end-markets.
March 11, 2011
Acquires The Richardson Trident Company. It’s third acquisition since its IPO last April. With sales for the twelve months ending December 31, 2010 at approximately $148 million on 23,000 shipped tons, Trident is also the largest company acquired by Metals USA so far. With the addition of Trident’s eight processing centers located in Texas, Oklahoma, Georgia, California, and Massachusetts, Metals USA significantly increases its geographic coverage toward desired target markets in the Southeast, South central, Northeast and the West Coast of the United States
Metal shipments were 340,600 tons for the third quarter of 2011, up 25% from metal shipments of 272,600 tons in the third quarter of 2010. Metal shipments for the first nine months of 2011 were 1,069,000 tons, up 35% compared to metal shipments of 791,600 tons for the first nine months of 2010. Toll processed tonnage was 36,900 tons during the third quarter of 2011 compared to 15,500 tons for the third quarter of 2010. Toll processed tonnage was 123,600 tons during the first nine months of 2011 compared to 36,000 tons for the first nine months of 2010.
Lourenco Goncalves, the Company’s Chairman, President and C.E.O., stated: “Our third quarter results confirm we are succeeding with our plan to make Metals USA the most efficient company in the service center industry. We operate with a mentality to constantly go after profitable business, regardless of the economic headwinds, and have shifted our business to support markets that are doing well. Growth in automotive, energy, lawn and garden, heavy equipment, and agriculture, to name a few, have all contributed to offset end-markets that continue to struggle with recession overhang, such as non-residential construction.”
*YOY a 25% increase in shipping tonnage
*43% improvement in revenues
*70% improvement in EBITDA
Net sales for the third quarter of 2011 were $492.3 million, up 43% from net sales of $345.3 million for the third quarter of 2010. Net income for the third quarter of 2011 was $16.7 million compared to net income of $5.8 million for the third quarter of 2010. Earnings per diluted share (“EPS”) were $0.45 in the third quarter of 2011 compared to $0.16 for the third quarter of 2010.
Net sales for the first nine months of 2011 were $1,430.2 million, up 48% from net sales of $968.2 million for the first nine months of 2010. Net income for the first nine months of 2011 was $50.6 million compared to net income of $8.4 million for the nine months ended September 30, 2010. EPS was $1.36 in the first nine months of 2011 compared to $0.26 for the first nine months of 2010.
I’m a ‘committed, shares in strong hands’ LONG here! And very bullish on this company here today at $10. I owned the stock higher from here but did some good ‘blood in the streets’ buying in August to dollar cost average down to a nice avg that is well above water now. But frankly, that lack of them NOT doing the same opportunistic buying (and them as insiders and me as only Average Joe Investor) bothers me some. They need to put up some money and do some buying for me to commit more capital to my investment here. But what I do own I feel is going to make a lot of money here!
Disclosure: I am long MUSA.