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 quarterly period ended June 30, 2004
COMMISSION FILE NUMBER: 1-12881
LONE STAR TECHNOLOGIES, INC.
(A DELAWARE CORPORATION)
I.R.S. EMPLOYER IDENTIFICATION NUMBER: 75-2085454
15660 N. Dallas Parkway, Suite 500
Dallas, Texas 75248
(972) 770-6401
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.
Indicate by check mark whether the registrant is an accelerated filer (as defined in Rule 12b-2 of the Exchange Act). Yes ý. No o.
As of July 23, 2004, the number of shares of Common Stock outstanding at $1.00 par value per share was 28,967,401.
LONE STAR TECHNOLOGIES, INC.
INDEX
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PART I - FINANCIAL INFORMATION |
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Item 1. |
CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED) |
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MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS |
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Off-Balance Sheet Arrangements and Aggregate Contractual Obligations |
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2
LONE STAR TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(unaudited; $ and shares in millions, except per share data)
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For the Quarter Ended |
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For the Six Months Ended |
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2004 |
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2003 |
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2004 |
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2003 |
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Net revenues |
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$ |
246.2 |
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$ |
141.3 |
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$ |
426.0 |
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$ |
269.4 |
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Cost of goods sold |
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198.3 |
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137.9 |
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354.9 |
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261.7 |
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Gross profit |
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47.9 |
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3.4 |
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71.1 |
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7.7 |
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Selling, general and administrative expenses |
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11.6 |
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10.3 |
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22.7 |
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19.9 |
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Operating income (loss) |
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36.3 |
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(6.9 |
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48.4 |
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(12.2 |
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Interest income |
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0.2 |
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0.3 |
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0.4 |
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0.7 |
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Interest expense |
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(4.3 |
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(3.7 |
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(8.5 |
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(7.3 |
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Other income |
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1.0 |
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1.2 |
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1.3 |
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2.2 |
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Other expense |
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(0.1 |
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(0.1 |
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(0.2 |
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(0.4 |
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Income (loss) before income tax |
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33.1 |
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(9.2 |
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41.4 |
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(17.0 |
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Income tax expense |
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(0.9 |
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— |
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(1.2 |
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(0.1 |
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Net income (loss) |
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$ |
32.2 |
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$ |
(9.2 |
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$ |
40.2 |
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$ |
(17.1 |
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Per common share - basic: |
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Net income (loss) available to common shareholders |
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$ |
1.13 |
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$ |
(0.32 |
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$ |
1.41 |
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$ |
(0.60 |
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Per common share - diluted: |
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Net income (loss) available to common shareholders |
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$ |
1.11 |
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$ |
(0.32 |
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$ |
1.39 |
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$ |
(0.60 |
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Weighted average shares outstanding: |
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Basic |
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28.6 |
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28.4 |
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28.5 |
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28.4 |
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Diluted |
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29.0 |
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28.4 |
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28.8 |
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28.4 |
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See Notes to Condensed Consolidated Financial Statements.
3
LONE STAR TECHNOLOGIES, INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(unaudited; $ in millions, except share data)
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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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$ |
50.6 |
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$ |
33.3 |
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Accounts receivable, less allowances of $1.6 and $1.7, respectively |
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129.4 |
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71.8 |
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Inventories |
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135.1 |
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152.8 |
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Other current assets |
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27.9 |
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14.7 |
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Total current assets |
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343.0 |
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272.6 |
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Investments in debt securities |
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6.4 |
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— |
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Property, plant and equipment, net |
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212.1 |
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220.0 |
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Goodwill |
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40.9 |
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40.9 |
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Restricted cash |
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32.4 |
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32.2 |
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Other noncurrent assets |
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9.2 |
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9.9 |
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Total assets |
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$ |
644.0 |
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$ |
575.6 |
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