UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(D)
OF THE SECURITIES EXCHANGE ACT OF 1934
For the quarter ended June 30, 2002
commission file number: 1-12881
LONE STAR TECHNOLOGIES, INC.
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(A DELAWARE CORPORATION) |
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15660 N. Dallas Parkway, Suite 500 |
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Dallas, Texas 75248 |
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972/770-6401 |
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I.R.S. EMPLOYER IDENTIFICATION NUMBER: 75-2085454 |
Indicate by a check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ý No o.
As of July 31, 2002, the number of shares of Common Stock outstanding at $1.00 par value per share was 28,528,675.
LONE STAR TECHNOLOGIES, INC.
INDEX
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PART I – Financial Information |
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Item 1. |
CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
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2
LONE STAR TECHNOLOGIES, INC.
CONSOLIDATED STATEMENTS OF OPERATIONS
(unaudited; $ and shares in millions, except per share data)
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For the |
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For the |
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2002 |
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2001 |
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2002 |
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2001 |
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Net revenues |
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$ |
150.1 |
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$ |
184.4 |
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$ |
273.3 |
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$ |
363.8 |
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Cost of goods sold |
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(141.2 |
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(156.7 |
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(259.4 |
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(311.6 |
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Gross profit |
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8.9 |
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27.7 |
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13.9 |
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52.2 |
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Selling, general and administrative expenses |
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(9.3 |
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(8.5 |
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(18.6 |
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(16.9 |
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Operating income (loss) |
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(0.4 |
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19.2 |
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(4.7 |
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35.3 |
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Interest income |
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0.7 |
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0.8 |
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1.2 |
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1.3 |
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Interest expense |
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(3.2 |
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(3.2 |
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(6.4 |
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(6.2 |
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Other income |
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0.7 |
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0.2 |
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1.1 |
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0.6 |
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Other expense |
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(0.1 |
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(0.2 |
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(0.1 |
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(0.4 |
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Income (loss) before income tax |
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(2.3 |
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16.8 |
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(8.9 |
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30.6 |
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Income tax benefit (expense) |
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(0.1 |
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(0.5 |
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0.6 |
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(0.9 |
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Net income (loss) |
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$ |
(2.4 |
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$ |
16.3 |
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$ |
(8.3 |
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$ |
29.7 |
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Per common share – basic: |
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Net income (loss) |
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$ |
(0.08 |
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$ |
0.66 |
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$ |
(0.31 |
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$ |
1.23 |
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Per common share – diluted: |
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Net income (loss) |
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$ |
(0.08 |
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$ |
0.65 |
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$ |
(0.31 |
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$ |
1.20 |
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Weighted average shares outstanding |
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Basic |
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27.6 |
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24.6 |
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26.4 |
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24.2 |
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Diluted |
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27.6 |
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25.3 |
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26.4 |
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24.8 |
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See accompanying notes.
3
LONE STAR TECHNOLOGIES, INC.
(unaudited; $ in millions)
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June 30, |
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December
31, |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ |
176.3 |
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$ |
106.5 |
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Accounts receivable, net |
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89.5 |
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70.3 |
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Current inventories, net |
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132.4 |
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139.4 |
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Other current assets |
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7.8 |
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8.9 |
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Total current assets |
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406.0 |
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325.1 |
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Property, plant, and equipment, net |
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184.0 |
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187.1 |
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Goodwill, net |
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55.1 |
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55.1 |
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Other noncurrent assets |
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12.7 |
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13.5 |
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Total assets |
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$ |
657.8 |
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$ |
580.8 |
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LIABILITIES AND SHAREHOLDERS’ EQUITY |
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Liabilities: |
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Accounts payable |
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42.5 |
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42.5 |
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Accrued liabilities |
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26.1 |
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23.6 |
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Total current liabilities |
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68.6 |
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66.1 |
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Senior subordinated debt |
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150.0 |
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150.0 |
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Postretirement benefit obligations |
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35.2 |
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35.5 |
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Other noncurrent liabilities |
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13.5 |
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13.9 |
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Total liabilities |
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