DBMG DBM Global Inc (CE)

Schuff International, Inc. (Pink Sheets: SHFK), a family of companies providing fully integrated steel construction services, today reported financial and operating results for the third quarter ended October 3, 2010.

Third Quarter 2010 Results:

Revenues for the third quarter ended October 3, 2010 were $66.0 million, a decrease of 38.6 percent from revenues of $107.4 million for the third quarter ended October 4, 2009.

Gross profit as a percentage of revenue was 14.8 percent for the third quarter ended October 3, 2010, compared with 24.4 percent for the third quarter ended October 4, 2009.

Operating income for the third quarter of 2010 was $0.8 million, down 94.1 percent from $13.4 million in the year-ago quarter. Operating margin decreased to 1.2 percent from 12.5 percent in the year-ago period, due primarily to lower revenues earned during the quarter.

Net income for the quarter was $0.3 million, or $0.03 per diluted share, versus $7.8 million, or $0.85 per diluted share, a year ago.

Schuff International’s backlog was $220.6 million ($187.8 million under contracts or purchase orders and $32.8 million under letters of intent) at October 3, 2010 compared with $165.4 million ($150.1 million under contracts or purchase orders and $15.4 million under letters of intent) at July 4, 2010. Approximately $90.4 million, representing 41.0 percent of the company’s backlog at October 3, 2010, was attributable to five contracts, letters of intent, notices to proceed or purchase orders.

Nine Months 2010 Results:

Revenues for the nine months ended October 3, 2010 were $214.5 million, a decrease of 37.0 percent from year-ago revenues of $340.3 million.

Gross profit as a percentage of revenue was 15.4 percent for the nine months ended October 3, 2010, compared with 23.6 percent for the year-ago period.

Operating income for the first nine months of 2010 was $4.8 million, down 88.7 percent from $42.7 million for the first nine months of 2009. Operating margin decreased to 2.3 percent from 12.6 percent in the year-ago period.

Net income for the nine months ended October 3, 2010 was $2.5 million, or $0.26 per diluted share, versus $25.4 million, or $2.73 per diluted share, a year ago.

“As we expected, continued weakness in the commercial construction sector led to lower revenues and thin margins for the third quarter of 2010,” said Scott A. Schuff, president and CEO. “We’re in the third year of this economic downturn that has all but halted major new commercial construction projects, especially in the Las Vegas market, which had been a major growth driver for Schuff. In addition, relatively low energy prices have slowed new oil and gas-related construction in the Southwest, another historically strong market for us.

“During the third quarter, our backlog grew sequentially by $55 million, to nearly $221 million, the first such increase in several quarters. This move was fueled by major new wins among public works projects and healthcare facilities,” added Schuff.

“However, we believe that a sustained recovery will require the return of commercial construction activity in multiple regions in the U.S. In the meantime, I am extremely proud of the agility and entrepreneurial energy our team has shown in bidding and winning key projects that emerged in this difficult climate. In addition, the disciplined cost controls and reductions we instituted more than a year ago have allowed us to remain profitable and financially sound at a time when others in our industry have not fared as well,” concluded Schuff.

Schuff International, Inc. (Pink Sheets: SHFK) and its family of steel companies is the largest steel fabrication and erection company in the United States. The 34-year old company executes projects throughout the country as well as internationally. Schuff offers integrated steel construction services from a single source including design-build, design-assist, engineering, BIM participation, 3D steel modeling/detailing, fabrication, advanced field erection, joist and joist girder manufacturing, project management, and single-source steel management systems. Schuff International, Inc. employs approximately 1,300 people throughout the country. For more information, visit www.schuff.com.

Certain statements in this news release may contain forward-looking information within the meaning of the Private Securities Litigation Reform Act of 1995, and are subject to the safe harbor created by those rules. All statements, other than statements of fact, included in this release, including, without limitation, statements regarding potential future plans and objectives of the company are forward-looking statements that involve risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. These risks and uncertainties, some of which are beyond the control of the company, include, but are not limited to, the company's ability to successfully and timely complete construction projects; the company’s ability to convert backlog into revenue; the potential delay, suspension, termination, or reduction in scope of a construction project; the continuing validity of the underlying assumptions and estimates of total forecasted project revenues, costs and profits and project schedules; the outcomes of pending or future litigation, arbitration or other dispute resolution proceedings; the availability of borrowed funds on terms acceptable to the company; the ability to retain certain members of management; the ability to obtain surety bonds to secure its performance under certain construction contracts; possible labor disputes or work stoppages within the construction industry; the ability of project owners to obtain and/or continue to maintain financing for projects; possible changes or developments in domestic and worldwide financial, political and social circumstances; and actions taken or not taken by third parties, including the company’s customers, suppliers, business partners, and competitors and legislative, regulatory, judicial and other governmental authorities and officials. The company cautions that these forward-looking statements are further qualified by other factors. The company undertakes no obligation to publicly update or revise any statements in this release, whether as a result of new information, future events or otherwise.

          SCHUFF INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)     Three months ended Nine months ended October 3 October 4 October 3 October 4   2010     2009     2010     2009   (in thousands, except per share data)   Revenues $ 65,966 $ 107,373 $ 214,482 $ 340,296 Cost of revenues   56,180     81,200     181,552     259,911   Gross profit 9,786 26,173 32,930 80,385 General and administrative expenses   8,999     12,782     28,096     37,648   Operating income 787 13,391 4,834 42,737 Interest expense (312 ) (940 ) (910 ) (3,024 ) Other (expense) income   (6 )   (173 )   166     323   Income before income tax provision 469 12,278 4,090 40,036 Income tax provision   (173 )   (4,433 )   (1,559 )   (14,641 ) Net income $ 296   $ 7,843   $ 2,531   $ 25,395     Income per common share: Basic $ 0.03   $ 1.10   $ 0.26   $ 3.58   Diluted $ 0.03   $ 0.85   $ 0.26   $ 2.73     Weighted average shares used in computation: Basic   9,709     7,123     9,674     7,094   Diluted   9,756     9,663     9,714     9,655       SCHUFF INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS (UNAUDITED)       October 3   January 3 2010 2010 (in thousands, except for share data) Assets Current assets Cash and cash equivalents $ 61,646 $ 47,618 Receivables 68,930 93,239 Income tax receivable 128 1,554 Costs and recognized earnings in excess of billings on uncompleted contracts 12,447 7,966 Inventories 13,855 15,915 Deferred tax asset 2,791 2,775 Prepaid expenses and other current assets   1,241     1,263   Total current assets 161,038 170,330   Property, plant and equipment, net 72,054 71,406 Goodwill 17,115 17,115 Other assets   3,821     3,662   $ 254,028   $ 262,513   Liabilities and stockholders' equity Current liabilities Accounts payable $ 17,207 $ 18,723 Accrued payroll and employee benefits 8,823 8,165 Accrued interest 1 84 Other current liabilities 7,910 6,823 Billings in excess of costs and recognized earnings on uncompleted contracts 36,901 43,571 Current portion of long-term debt   2,387     3,470   Total current liabilities 73,229 80,836   Long-term debt 6,419 10,493 Deferred tax liability 5,021 5,226 Other liabilities   209     274     11,649     15,993       Stockholders' equity Preferred stock, $.001 par value – authorized 1,000,000 shares, none issued - - Common stock, $.001 par value – 20,000,000 shares authorized, 10,038,057 and 10,037,557 shares issued, and 9,708,952 and 9,655,645 shares outstanding in FY2010 and FY2009, respectively 10 10 Additional paid-in capital 49,623 49,205 Retained earnings 123,470 120,939

Treasury stock-329,105 and 381,912 shares in FY2010 and FY2009, respectively, at cost

  (3,953 )   (4,470 ) Total stockholders' equity   169,150     165,684   $ 254,028   $ 262,513