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 2, 2011.

Third Quarter 2011 Results:

Revenues for the third quarter of 2011 were $102.1 million, an increase of 54.8 percent from revenues of $66.0 million for the third quarter of 2010.

Gross profit as a percentage of revenue was 10.9 percent for the third quarter of 2011, compared with 14.8 percent for the third quarter of 2010.

Operating income for the third quarter of 2011 was $1.8 million, compared with operating income of $0.8 million in the year-ago period. Operating margin was 1.7 percent compared with 1.2 percent in the year-ago period.

Net income for the quarter was $0.7 million, or $0.08 per diluted share, versus net income of $0.3 million, or $0.03 per diluted share, a year ago.

Schuff International’s backlog was $245.0 million ($203.6 million under contracts or purchase orders and $41.3 million under letters of intent) at October 2, 2011 compared with $257.0 million ($198.7 million under contracts or purchase orders and $58.3 million under letters of intent) at July 3, 2011. Approximately $79.5 million, representing 32.5 percent of the company’s backlog at October 2, 2011, was attributable to five contracts, letters of intent, notices to proceed or purchase orders.

Nine Months 2011 Results:

Revenues for the nine months ended October 2, 2011 were $262.6 million, an increase of 22.4 percent from year-ago revenues of $214.5 million.

Gross profit as a percentage of revenue was 11.0 percent for the nine months ended October 2, 2011, compared with 15.4 percent for the nine months ended October 3, 2010.

Operating income for the first nine months of 2011 was $1.7 million, down 64.4 percent from $4.8 million for the first nine months of 2010. Operating margin decreased to 1 percent from 2.3 percent in the year-ago period.

Net income for the nine months ended October 2, 2011 was $0.5 million, or $0.06 per diluted share, versus net income of $2.5 million, or $0.26 per diluted share, a year ago.

“We are beginning to see positive signs for commercial construction in several geographic regions,” said Scott A. Schuff, President and CEO. “This modest improvement, in addition to continued demand for our design-build/design-assist capabilities, allowed us to add quality projects to our backlog, resulting in better margin performance this quarter.

“We are also very pleased with the start-up of Schuff Hopsa Engineering, our Panamanian joint venture. Although they only formally began operations this quarter, they are already experiencing solid margin performance and have quality backlog well into 2012,” added Schuff. “We remain optimistic about their revenue generating opportunities within Central and South America.

“While our third quarter results show promise, we remain cautiously optimistic towards sustained economic recovery in the U.S. markets going into next year. We remain committed to our ongoing cost control efforts and we believe our diverse backlog of quality projects will keep us well-positioned for the recovery in commercial construction activity when it occurs,” Schuff concluded.

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 (UNAUDITED)     Three months ended Nine months ended October 2 October 3 October 2 October 3   2011       2010       2011       2010   (in thousands, except per share data)   Revenues $ 102,104 $ 65,966 $ 262,624 $ 214,482 Cost of revenues   91,018       56,180       233,757       181,552   Gross profit 11,086 9,786 28,867 32,930 General and administrative expenses   9,302       8,999       27,148       28,096   Operating income 1,784 787 1,719 4,834 Interest expense (170 ) (312 ) (580 ) (910 ) Other (expense) income   (156 )     (6 )     (56 )     166   Income before income tax provision 1,458 469 1,083 4,090 Income tax provision   (628 )     (173 )     (458 )     (1,559 ) Income before minority interest 830 296 624 2,531 Minority interest in income   (97 )     -       (97 )     -   Net income $ 733     $ 296     $ 528     $ 2,531     Income per common share: Basic $ 0.08     $ 0.03     $ 0.05     $ 0.26   Diluted $ 0.08     $ 0.03     $ 0.06     $ 0.26     Weighted average shares used in computation: Basic   9,757       9,709       9,757       9,674   Diluted   9,766       9,756       9,763       9,714     SCHUFF INTERNATIONAL, INC. CONSOLIDATED BALANCE SHEETS   October 2   January 2   2011       2011   (in thousands, except for share data) Assets Current assets Cash and cash equivalents $ 32,457 $ 48,003 Receivables 89,881 92,617 Income tax receivable - 1,295 Costs and recognized earnings in excess of billings on uncompleted contracts 17,306 7,869 Inventories 19,152 18,827 Deferred tax asset 1,910 1,910 Prepaid expenses and other current assets   2,289       1,613   Total current assets 162,995 172,134   Property, plant and equipment, net 76,250 74,042 Goodwill 17,115 17,115 Other assets   3,450       3,687   $ 259,810     $ 266,978   Liabilities and stockholders' equity Current liabilities Accounts payable $ 29,303 $ 23,757 Accrued payroll and employee benefits 9,599 6,406 Accrued interest 37 55 Other current liabilities 7,334 5,587 Billings in excess of costs and recognized earnings on uncompleted contracts 30,729 48,288 Income tax payable 694 - Current portion of long-term debt   350       2,025   Total current liabilities 78,046 86,118   Long-term debt 1,789 5,623 Deferred tax liability 7,001 7,001 Other liabilities   165       199     8,955       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 49,724 49,199 Retained earnings 122,747 122,219 Treasury stock - 281,452 shares in both 2011 and 2010, at cost   (3,391 )     (3,391 )   169,090       168,037   Non-controlling interest   3,719       -   Total stockholders' equity   172,809       168,037   $ 259,810     $ 266,978