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 September 30, 2002
COMMISSION FILE NUMBER: 1-12881
LONE STAR TECHNOLOGIES, INC.
(A DELAWARE CORPORATION)
15660 N. Dallas Parkway, Suite 500
Dallas, Texas 75248
972/770-6401
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 October 31, 2002, the number of shares of Common Stock outstanding at $1.00 par value per share was 28,492,644.
LONE STAR TECHNOLOGIES, INC.
Index
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PART I - Financial Information |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
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2
ITEM 1. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED).
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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$ |
142.7 |
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$ |
168.9 |
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$ |
416.0 |
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$ |
532.7 |
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Cost of goods sold |
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(141.9 |
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(152.6 |
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(401.3 |
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(464.2 |
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Gross profit |
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0.8 |
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16.3 |
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14.7 |
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68.5 |
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Selling, general and administrative expenses |
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(9.1 |
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(8.9 |
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(27.7 |
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(25.8 |
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Operating income (loss) |
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(8.3 |
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7.4 |
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(13.0 |
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42.7 |
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Interest income |
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0.8 |
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1.0 |
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2.0 |
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2.3 |
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Interest expense |
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(3.2 |
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(3.4 |
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(9.6 |
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(9.7 |
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Other income |
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0.6 |
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0.2 |
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1.7 |
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0.9 |
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Other expense |
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(0.3 |
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(1.2 |
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(0.4 |
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(1.6 |
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Income (loss) before income tax and extraordinary items |
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(10.4 |
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4.0 |
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(19.3 |
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34.6 |
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Income tax benefit (expense) |
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— |
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(0.2 |
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0.6 |
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(1.1 |
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Income (loss) before extraordinary items |
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(10.4 |
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3.8 |
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(18.7 |
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33.5 |
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Extraordinary items |
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— |
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(0.6 |
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— |
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(0.6 |
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Net income (loss) |
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$ |
(10.4 |
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$ |
3.2 |
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$ |
(18.7 |
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$ |
32.9 |
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Per common share - basic: |
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Net income (loss) before extraordinary items |
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$ |
(0.37 |
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$ |
0.15 |
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$ |
(0.69 |
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$ |
1.36 |
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Extraordinary items |
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— |
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(0.02 |
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— |
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(0.02 |
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Net income (loss) available to common shareholders |
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$ |
(0.37 |
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$ |
0.13 |
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$ |
(0.69 |
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$ |
1.34 |
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Per common share - diluted: |
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Net income (loss) before extraordinary items |
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(0.37 |
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0.15 |
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(0.69 |
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1.34 |
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Extraordinary items |
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— |
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(0.02 |
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— |
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(0.02 |
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Net income (loss) available to common shareholders |
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$ |
(0.37 |
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$ |
0.13 |
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$ |
(0.69 |
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$ |
1.32 |
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Weighted average shares outstanding |
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Basic |
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28.5 |
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25.2 |
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27.1 |
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24.5 |
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Diluted |
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28.5 |
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25.4 |
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27.1 |
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25.0 |
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See accompanying notes.
3
LONE STAR TECHNOLOGIES, INC.
CONSOLIDATED BALANCE SHEETS
(unaudited; $ in millions)
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September 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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$ |
139.9 |
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$ |
106.5 |
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Accounts receivable, net |
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74.9 |
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70.3 |
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Current inventories, net |
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138.2 |
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139.4 |
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Other current assets |
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7.6 |
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8.9 |
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Total current assets |
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360.6 |
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325.1 |
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Property, plant, and equipment, net |
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182.9 |
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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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Prepaid acquisition costs |
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36.7 |
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— |
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Other noncurrent assets |
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12.0 |
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