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 quarter ended April 3, 2011.

First Quarter 2011 Results:

Revenues for the first quarter ended April 3, 2011 were $70.7 million, a decrease of 13.7 percent from year-ago revenues of $82.0 million.

Gross profit as a percentage of revenue was 13.4 percent for the first quarter ended April 3, 2011, compared with 15.6 percent for the first quarter ended April 4, 2010.

Operating income for first quarter of 2011 was $0.7 million, down 75.5 percent from $2.8 million in the year-ago period. Operating margin decreased to 1.0 percent from 3.4 percent in the year-ago period.

Net income for the quarter was $0.3 million, or $0.03 per diluted share, versus $1.6 million, or $0.16 per diluted share, a year ago.

Schuff International’s backlog was $230.6 million ($204.9 million under contracts or purchase orders and $25.7 million under letters of intent) at April 3, 2011 compared with $173.4 million ($168.2 million under contracts or purchase orders and $5.2 million under letters of intent) at January 2, 2011. Approximately $103.9 million, representing 45.1 percent of the company’s backlog at April 3, 2011, was attributable to five contracts, letters of intent, notices to proceed or purchase orders.

“As we expected, continued weakness in the commercial construction sector led to lower revenues and thin margins for the first quarter of 2011,” 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. In addition, there was lower oil and gas-related construction overall, a historically strong market for us.

“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 35-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 1,200 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 volatility of energy prices and its impact on related construction activity; the recovery of the commercial construction market; 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.

Financial tables follow.

SCHUFF INTERNATIONAL, INC. CONSOLIDATED STATEMENTS OF INCOME       Year Ended April 3 April 4   2011       2010   (in thousands, except per share data)   Revenues $ 70,738 $ 81,988 Cost of revenues   61,237       69,216   Gross profit 9,501 12,772 General and administrative expenses   8,819       9,983   Operating income 682 2,789 Interest expense (213 ) (311 ) Other income   31       78   Income before income tax provision 500 2,556 Income tax provision   (242 )     (979 ) Net income $ 258     $ 1,577     Income per common share: Basic $ 0.03     $ 0.16   Diluted $ 0.03     $ 0.16     Weighted average shares used in computation: Basic   9,757       9,656   Diluted   9,758       9,706     SCHUFF INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS   April 3   January 2   2011       2011   (in thousands, except for share data) Assets Current assets Cash and cash equivalents $ 57,179 $ 48,003 Receivables 70,490 92,617 Income tax receivable 1,050 1,295 Costs and recognized earnings in excess of billings on uncompleted contracts 9,806 7,869 Inventories 17,236 18,827 Deferred tax asset 1,910 1,910 Prepaid expenses and other current assets   1,453       1,613   Total current assets 159,124 172,134   Property, plant and equipment, net 72,027 74,042 Goodwill 17,115 17,115 Other assets   3,643       3,687   $ 251,909     $ 266,978   Liabilities and stockholders' equity Current liabilities Accounts payable $ 18,448 $ 23,757 Accrued payroll and employee benefits 8,003 6,406 Accrued interest 50 55 Other current liabilities 5,394 5,587 Billings in excess of costs and recognized earnings on uncompleted contracts 38,514 48,288 Current portion of long-term debt   2,025       2,025   Total current liabilities 72,434 86,118   Long-term debt 3,885 5,623 Deferred tax liability 7,001 7,001 Other liabilities   188       199     11,074       12,823     Stockholders' equity Preferred stock, $.001 par value – authorized 1,000,000 shares, none issued - - Common stock, $.001 par value – 20,000,000 shares authorized, 10,038,707 and 10,038,057 shares issued, and 9,756,605 and 9,655,645 shares outstanding in 2011 and 2010, respectively 10 10 Additional paid-in capital 49,305 49,199 Retained earnings 122,477 122,219 Treasury stock - 281,452 shares in both 2011 and 2010, at cost   (3,391 )     (3,391 ) Total stockholders' equity   168,401       168,037   $ 251,909     $ 266,978