UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): March 24, 2011
EDGEN MURRAY II, L.P.
(Exact name of Registrant as specified in its charter)
| Delaware | 333-165298 | 20-8864225 | ||
| (State or Other Jurisdiction of Incorporation or Organization) |
(Commission File Number) |
(I.R.S. Employer Identification No.) |
18444 Highland Road
Baton Rouge, LA 70809
(225) 756-9868
(Address, Including Zip Code, and Telephone Number, Including Area Code, of Registrant’s Principal Executive Offices)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
| ¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
| ¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR 240.14a-12) |
| ¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
| ¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Item 2.02. Results of Operations and Financial Condition
For the three months ended December 31, 2010, Edgen Murray II, L.P. (“the Company”) generated sales of $173.3 million, income from operations of $3.4 million, and net loss of $11.0 million. This compares to sales of $170.6 million, loss from operations of $3.9 million, and net loss of $18.6 million for the three months ended December 31, 2009. Sales backlog was approximately $212 million at December 31, 2010 compared to sales backlog of approximately $144 million at December 31, 2009 and approximately $168 million at September 30, 2010.
For the year ended December 31, 2010, the Company generated sales of $627.7 million, loss from operations of $57.4 million, and net loss of $98.3 million. This compares to sales of $773.3 million, income from operations of $9.9 million, and net loss of $20.9 million for the year ended December 31, 2009. For the year ended December 31, 2010, loss from operations and net loss includes a goodwill impairment charge of $62.8 million, before taxes.
Net cash provided from operating activities was $30.2 million for the year ended December 31, 2010 compared to net cash from operating activities of $91.9 million for the year ended December 31, 2009. At December 31, 2010 and December 31, 2009, the Company’s cash and cash equivalents, total debt (which includes capital leases), accrued interest and availability under its senior secured credit facility (the “ABL Facility”) and local Dubai credit facility (the “Foreign Facility”) was as follows:
| December 31, | ||||||||
| ($ in millions) | 2010 | 2009 | ||||||
| Cash and cash equivalents |
$ | 62.5 | $ | 65.7 | ||||
| Total debt |
$ | 479.8 | $ | 483.5 | ||||
| Accrued interest |
$ | 26.3 | $ | 2.6 | ||||
| Availability: |
||||||||
| ABL Facility |
$ | 80.8 | $ | 93.9 | ||||
| Foreign Facility |
11.1 | 4.3 | ||||||
| Total |
$ | 91.9 | $ | 98.2 | ||||
At December 31, 2010 and 2009, the Company had no borrowings under the ABL Facility or the Foreign Facility.
Conference Call
A conference call to discuss the 2010 financial results of the Company will be held on Friday, March 25, 2011, at 11 a.m. Eastern time (10:00 a.m. Central time).
Interested parties in the United States may dial 1-877-317-6789. Additionally, interested parties in Canada may dial 1-866-605-3852, and international parties may dial 1-412-317-6789, to listen live to the conference call.
A replay of the teleconference (conference number 449308) will be available in the United States by dialing 1-877-344-7529 and international parties may dial 1-412-317-0088. A replay of the teleconference will also be available through the Investors link on the Company’s website, www.edgenmurray.com, as soon as possible and will remain available for seven days following the date the replay is posted.
The information in this Form 8-K shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, unless expressly set forth by specific reference in such filing.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the Registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| Dated: March 24, 2011 | EDGEN MURRAY II, L.P. | |||
| By: | /s/ David L. Laxton, III | |||
| Name: David L. Laxton, III | ||||
| Title Chief Financial Officer | ||||
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