BATON ROUGE, La.--(BUSINESS WIRE)-- Edgen Group Inc. a leading global distributor of specialized products including steel pipe, valves, plate, and related components to the energy sector and industrial infrastructure markets, today reported its financial results for the three months ended March 31, 2013.
“Our OCTG business performance was excellent during the quarter considering the decline in rig count and weakness in selling prices,” stated Dan O’Leary, the Company’s Chairman and Chief Executive Officer. “The near term prospects of our E&I business are being affected by the steel pricing environment and delays in contract awards and customer purchasing decisions. We expect to get a clearer picture soon regarding the timing of these anticipated customer expenditures. As a result, we are withdrawing our previous guidance and plan to address 2013 guidance at a later time.”
Three Months Ended March 31, 2013 and 2012
- Net sales were $406.1 million for the first quarter of 2013, down from $505.8 million for the same period in 2012.
- Net sales from our Energy & Infrastructure (“E&I”) segment decreased 28% to $201.2 million in 2013 compared to $277.7 million in 2012. Gross margins in 2013 and 2012 were 14.4% and 13.5%, respectively.
- Net sales from our Oil Country Tubular Goods (“OCTG”) segment decreased 10% to $205.2 million in 2013 compared to $228.1 million in 2012. Gross margins in 2013 and 2012 were 10.0% and 9.2%, respectively.
- Selling, general and administrative ("SG&A") expenses for the first quarter of 2013 and 2012 were 6.6% and 4.6%, respectively, of net sales.
- Interest expense decreased 32% for the first quarter of 2013 as compared to the first quarter of 2012 due to lower outstanding debt as well as the debt refinancing we completed in the fourth quarter of 2012.
- Net loss of $(5.4) million in 2013, as compared to net income of $4.1 million in 2012, includes a loss on prepayment of debt of $1.7 million pre-tax ($1.4 million after tax) and a $2.3 million pre-tax ($1.5 million after tax) charge related to our obligation under our tax receivable agreement. Excluding charges, adjusted net loss was $(2.5) million for the first quarter of 2013.
- Adjusted EBITDA was $23.9 million in 2013 compared to $36.4 million in 2012.
Mr. O’Leary continued, “We continue to remain optimistic about the long term growth of our end markets and the power of our business model.”