Tarpon Industries Announces 2004 Haines Year-End Results and 2004
Year-End Pro Forma Update
MARYSVILLE, Mich., May 9 /PRNewswire-FirstCall/ -- Tarpon Industries, Inc. ("Tarpon" or "the Company") (AMEX:TPO), a manufacturer and distributor of
structural and mechanical steel tubing and steel storage rack systems, today
announced results for the year ended December 31, 2004 for the Company's
acquisition of the Haines Road Facility of Bolton Steel Tube Co. Ltd. ("Haines
Road"), which was consummated on February 17, 2005, and the Company's 2004 year
end updated unaudited pro forma financial results.
For the fiscal year ending December 31, 2004, Haines Road reported net revenues
of approximately $15,397,000 and net income after taxes of approximately
$763,000.
In addition, on an unaudited pro forma basis for the year ending December 31,
2004, Tarpon reported net revenues of approximately $63,202,000 and net income
after taxes of approximately $23,000 on an earnings per share basis. The
unaudited pro forma results assumes the Company's initial public offering of
its common shares and the acquisitions of EWCO and Haines closed in January 1,
2004, includes the acquisition of Steelbank only from the date of acquisition
in May 2004.
The unaudited pro forma fiscal 2004 net income after taxes also includes
several expenses relating to Tarpon's acquired companies and financing
activities, such as non-employee option expense, professional expenses,
severance costs, foreign exchange loss associated with promissory notes issued
to sellers, and interest expense associated with the Steelbank interim
receivable factoring arrangement.
According to J. Peter Farquhar, Chairman of the Board and Chief Executive
Officer of Tarpon, "the addition of the 2004 Haines Road financial information
certainly provides a clearer picture of Tarpon's 2004 unaudited pro forma
financial performance and we're encouraged by those results." Farquhar added, "We are excited about the acquisition of the Haines Road
facility. We believe this acquisition is complementary to our existing steel
tubing operations. It provides an entrance into mechanical steel tubing
manufacturing, and thereby further diversifies our manufactured product
offering. We also believe the acquisition of Haines Road enhances our existing
Steelbank steel tubing distribution business and affords an excellent platform
for growth. Over the past year, Tarpon has made three significant
acquisitions, and we will continue to focus on expanding our business both
organically and through strategic acquisitions." 2004 TARPON EARNINGS SUMMARY
2004 2004
Actual (1) Pro Forma (2)(3)
(Audited) (Unaudited)
(dollars in thousands except per share data) Net Revenues $37,622 $63,202
Net Income (loss) (1,995) 23
Net Income (Loss) per Common Share -
Basic and Diluted $(1.63) $0.005
Weighted Average Number of Common Shares 1,227 4,638 (1) The consolidated financial summary does not include EWCO and Steelbank for
the period during 2004 in which each entity was not under Tarpon's ownership.
This information also does not include Haines Road.
(2) Assumes the acquisition of EWCO and Haines Road and the Company's initial
public offering of its common shares closed as of January 1, 2004. This
information does not include financial results for Steelbank for the period
during 2004 prior to its date of acquisition by Tarpon, May 17, 2004.
(3) The unaudited pro forma combined information is presented for illustrative
purposes only and is not necessarily indicative of the results of operations or
financial position that would have occurred if the transactions had actually
been completed at the dates indicated, nor is it necessarily indicative of
future results of operations or financial position of the combined company.
Earnings Conference Call The Company will host a conference call to discuss its financial results at
1:00 p.m. EDT on May 12, 2005. To participate in the call, please dial
800-895-3606 or, internationally at, 785-424-1065 approximately ten minutes
prior to the scheduled starting time. The call will be available live on the
internet on the investor relations page of the Company's website,
http://www.tarponind.com/ . A replay of the call will be available until May
19, 2005. To listen to the replay, please call 800-688-4915, or
internationally at 402-220-1319. The online archive of the webcast will be
available for one year following the call.
About Tarpon Industries, Inc.
Tarpon Industries, Inc., through its wholly owned subsidiaries, manufactures
and sells structural and mechanical steel tubing and engineered steel storage
rack systems.
Forward-Looking Statements Certain statements made by Tarpon in this presentation and other periodic oral
and written statements, including filings with the Securities and Exchange
Commission, are "forward-looking" statements within the meaning of the Private
Securities Litigation Reform Act of 1995. These forward-looking statements, as
well as statements which address operating performance, events or developments
that we believe or expect to occur in the future, including those that discuss
strategies, goals, outlook or other non-historical matters, or which relate to
future sales or earnings expectations, cost savings, awarded sales, volume
growth, earnings or a general belief in our expectations of future operating
results, are forward-looking statements. The forward- looking statements are
made on the basis of management's assumptions and estimations. As a result,
there can be no guarantee or assurance that these assumptions and expectations
will in fact occur. The forward-looking statements are subject to risks and
uncertainties that may cause actual results to materially differ from those
contained in the statements. Some, but not all of the risks, include our
ability to obtain future sales, our ability to successfully integrate
acquisitions, changes in worldwide economic and political conditions, including
adverse effects from terrorism or related hostilities including increased
costs, reduced production or other factors, costs related to legal and
administrative matters, our ability to realize cost savings expected,
inefficiencies related to production that are greater than anticipated, changes
in technology and technological risks, increased fuel costs, increased steel
costs as it relates to our selling price, work stoppages and strikes at our
facilities and that of our customers, the presence of downturns in customer
markets where the Company's goods and services are sold, financial and business
downturns of our customers or vendors, and other factors, uncertainties,
challenges, and risks detailed in Tarpon's public filings with the Securities
and Exchange Commission. Tarpon does not intend or undertake any obligation to
update any forward-looking statements. DATASOURCE: Tarpon Industries, Inc.
CONTACT: J. Peter Farquhar, Chairman of the Board and Chief Executive Officer of Tarpon Industries, Inc., +1-810-364-7421, ext. 207 Web site: http://www.tarponind.com/
|