TMS International Corp. (TMS), an industrial services provider to steel mills and the parent company of Tube City IMS Corp, Monday reported a profit for the third quarter compared to a loss last year, reflecting a surge in revenues and an absence of an accretion on preferred stock. Further, the company backed its adjusted EBITDA guidance for the full year 2011.
For the third quarter, TMS International reported net income attributable to TMS of $6.5 million or $0.17 per share, compared to a loss of $3.76 million or $0.76 per share in the year-ago period.
On average, 4 analysts polled by Thomson Reuters expected earnings of $0.17 per share for the quarter. Analysts' estimates typically exclude special items.
Total revenues for the quarter grew to $709.21 million from $478 million in the year-ago quarter. Five Street analysts had a consensus revenue estimate of $639.2 million for the quarter.
Revenue after raw materials costs increased 19.5 percent to $139.3 million from $116.6 million in the year-ago quarter. Income from Operations for the quarter rose to $18.7 million from $15.1 million last year.
In the prior year, the company had reported an accretion on preferred stock of $5.807 million.
Cash balance at the end of the quarter rose to $98.8 million from $10.4 million a year ago, largely due to the proceeds from the company's initial public offering in April 2011.
The company expects to announce an additional two to four new contract wins by the end of 2011, for a total of between $400 million and $450 million of cumulative total revenue over their contract terms.
The company reaffirmed its previous adjusted EBITDA guidance for the full year 2011 in the range of $133 million to $137 million, representing a year-over-year growth rate of 11 to 14 percent.
TMS is currently trading at $9.80, up $0.92 or 10.36%, on a volume of 0.2 million shares, on the NYSE. Over the past year, the stock traded in a range of $6.48 to $14.85, with three-month average volume of 0.1 million shares.
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