TMS International Corp. Reports Second Quarter 2012 Results

August 2, 2012

PITTSBURGH, PA, August 2, 2012 – TMS International Corp.(NYSE: TMS), the parent company of Tube City IMS Corporation, a leading provider of outsourced industrial services to steel mills globally, today announced results for its second quarter ended June 30, 2012.

2012 Second Quarter Highlights

  • Revenue After Raw Materials Costs in the quarter was $153.6 million, a 12.1% increase compared to $137.0 million in the second quarter of 2011.
  • Adjusted EBITDA for the quarter was $37.8 million compared to $33.5 million in the second quarter of 2011, a 13.1% increase.
  • Basic and diluted earnings per share were $0.25 for the 2012 second quarter, a 92.3% percent increase compared with $0.13 earnings per share for the second quarter of 2011.
  • Company reaffirmed its previous 2012 Adjusted EBITDA guidance in a range of $142 million to $148 million, representing a year-over-year growth rate of 6% to 10%

2012 Second Quarter Financial Results

Revenue After Raw Materials Costs, the company’s measurement of sales performance, was $153.6 million, an increase of 12.1%, compared to $137.0 million in the second quarter of 2011.

Adjusted EBITDA for the second quarter of 2012 was $37.8 million compared to $33.5 million of Adjusted EBITDA in the second quarter of 2011. Net income attributable to common stock was $9.8 million for the second quarter compared to $4.5 million in the second quarter of 2011, an increase of 117%. Basic and diluted earnings per share were $0.25 for the second quarter of 2012.

The company’s Adjusted EBITDA Margin for the second quarter of 2012 was 24.6% compared to 24.4% in the second quarter of 2011. Total Revenue for the second quarter was $669.4 million compared to $670.8 million in the second quarter of 2011.

Fiscal 2012 Six Month Results

Revenue After Raw Materials Costs for the six months ended June 30, 2012 increased 13.7% to $309.5 million from $272.3 million for the first six months of 2011. Excluding the $12.3 million of debt extinguishment costs relating to the company’s refinancing, Adjusted EBITDA for the first six months of 2012 increased 9.7% to $74.7 million from $68.1 million for the first six months of 2011. Adjusted EBITDA margin for the first six months of 2012 was 24.1% compared to 25.0 % for the first six months of 2011.

Total revenue for the first six months of 2012 was $1.4 billion compared with $1.3 billion for the first six months of 2011. For the first six months of 2012, the company produced Discretionary Cash Flow of $57.2 million compared with $50.2 million for the first six months of 2011, a 14.1% increase.

Joseph Curtin, Chairman, President and Chief Executive Officer of TMS International Corp., said with respect to the company’s second quarter 2012 results, “TMS International produced solid second quarter results driven in large part by our successful new contract startups. We are also pleased that the risk-minimizing features of our business model enabled us to avoid material inventory write-downs despite significant declines in commodity pricing which occurred during the quarter. Despite the continued uncertain global economic environment, we continued to produce strong financial results by focusing on creating value and delivering exceptional service for our customers globally.”

Contract Wins

Year-to-date, TMS International has announced wins of four new contracts to provide mill services. These new contracts, together with various 2012 expansions of services under existing agreements, represent more than $270 million of cumulative total revenue over the life of the contracts at expected production levels.

Outlook

The company reaffirmed its previous 2012 Adjusted EBITDA guidance in a range of $142 million to $148 million, representing a year-over-year growth rate of 6% to 10%.

Conference Call Information

The company will hold a conference call to discuss second quarter 2012 results at 11 a.m. EDT this morning. The call will be web cast live over the Internet from the company's Web site at www.tmsinternationalcorp.com under "Investor Relations." Participants should follow the instructions provided on the Web site for downloading and installing the necessary audio applications. The conference call also is available by dialing 1-800-860-2442 (domestic toll free) or 1-412-858-4600 (international) and asking for the TMS International Corp. second quarter earnings conference call.

Following the live conference call, a replay will be available beginning one hour after the call. The replay will be available on the company's web site or by dialing 1-877-344-7529 (domestic toll free) or 1-412-317-0088 (international) and entering the replay passcode 10011956. The telephonic replay will be available until Thursday, August 9, 2012.

About TMS International Corp.

TMS International Corp., through its subsidiaries, including Tube City IMS Corporation, is the largest provider of outsourced industrial services to steel mills in North America as measured by revenue and has a substantial and growing international presence. The company provides mill services at 82 customer sites in 11 countries and operates 34 brokerage offices from which it buys and sells raw materials across five continents.

Forward Looking Statements

Certain information in this news release contains forward-looking statements with respect to the company’s financial condition, results of operations or business or its expectations or beliefs concerning future events. Such forward-looking statements include the discussions of the potential new debt refinancing, the company’s business strategies, estimates of future global steel production and other market metrics and the company’s expectations concerning future operations, margins, profitability, liquidity and capital resources. Although the company believes that such forward-looking statements are reasonable, it cannot assure you that any forward-looking statements will prove to be correct. Forward-looking statements may be preceded by, followed by or include the words “may,” “will,” “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” “could,” “might,” or “continue” or the negative or other variations thereof or comparable terminology. Such forward-looking statements are not guarantees of future performance and involve risks, uncertainties, estimates and assumptions that may cause the company’s actual results, performance or achievements to be materially different. Additional information relating to factors that may cause actual results to differ from the company’s forward-looking statements can be found in the company’s most recent Annual Report on Form 10-K and elsewhere in the company’s filings with the Securities and Exchange Commission. You should not place undue reliance on any of these forward- looking statements. Any forward-looking statement speaks only as of the date on which it is made, and we undertake no obligation to update any such statement to reflect new information, or the occurrence of future events or changes in circumstances.

Click here to view the original document