Metals USA Holdings Corp. recorded net sales for the fourth quarter 2009 of $245.3 million, compared to $456.4 million posted during the same period in 2008.
Adjusted EBITDA, a non-GAAP financial measure used by Metals USA and its creditors to monitor the performance of the business, was $11.5 million for the quarter ended December 31, 2009, compared to fourth quarter 2008 adjusted EBITDA of $19.1 million.
Fourth quarter 2009 net loss was $4.4 million compared to a net loss of $7.0 million in fourth quarter 2008. For the 2009 fiscal year, the company's net income was $3.5 million vs. net income for fiscal 2008 of $72.6 million.
"Last year's market conditions allowed us to demonstrate our ability to efficiently manage our working capital needs in a declining steel pricing environment,” said Lourenco Goncalves, the company's Chairman, President, and CEO. “In addition to inventory reduction initiatives, we also implemented significant permanent cost-cutting actions and made opportunistic debt repurchases at discounted prices, thereby allowing us to pay down a meaningful portion of our outstanding debt.
"We are pleased to have shown that our service center business model works both when the economy is doing well as in 2008, or poorly like last year,” Goncalves added. “We see the current business environment with rising steel prices and longer mill lead times as positive indications that market fundamentals are already improving in 2010."
Metals USA had $75.0 million drawn under its asset based loan (ABL) facility at December 31, 2009, with excess availability of $122.9 million. Total liquidity, defined as excess availability plus cash, was $128.9 million.
Net debt of $462.3 million at year end was $315.2 million lower than net debt of $777.5 million on December 31, 2008, due primarily to a decrease in working capital needs and debt repurchases. Total debt of $468.3 million at December 31, 2009, consisted of outstanding advances under the ABL facility in the amount of $75.0 million, outstanding 11 1/8% Senior Secured Notes in the amount of $226.3 million, outstanding Senior Floating Rate Toggle Notes due 2012 (PIK Toggle Notes) of $161.1 million, and $5.9 million of other long-term debt.
Capital expenditures for 2009 were $4.1 million. Net cash provided by operating activities during 2009 was $243.9 million.
The company recognized depreciation and amortization expenses during the fourth quarter 2009 of $4.7 million, and $18.9 million for the twelve months ended December 31, 2009. Interest expense for the quarter was $13.0 million, which included $3.1 million of interest on its PIK Toggle Notes that was paid entirely in kind (PIK Interest).
For the year, the company paid cash interest in the amount of $41.0 million. Operating income (loss), the GAAP measure that Metals USA believes is most comparable to adjusted EBITDA, was $5.2 million for the fourth quarter 2009 and ($22.1) million for fiscal year 2009 compared to $7.4 million and $206.4 million for the same periods, respectively, in 2008.
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, nonferrous metals, and building products markets.