Metal Management releases fiscal numbers

Chicago, IL— Metal Management, Inc. announced results for the first fiscal quarter ended June 30, 2005.

The company generated consolidated net sales of $382 million in the first quarter of fiscal 2006 and net income of $5.4 million. EBITDA[1] (as defined) was $13 million, and earnings per share were $0.22 per diluted common share.

•Consolidated net sales of $382 million for the quarter ended June 30, 2005 represented an increase of 4% over net sales of $367 million for the quarter ended June 30, 2004.

•EBITDA of $13 million in the quarter ended June 30, 2005, compared to EBITDA of $26 million in the quarter ended June 30, 2004.

•Net income was $5.4 million or $0.22 per diluted common share, compared to $12.5 million or $0.52 per common diluted share for the quarter ended June 30, 2004.

•Approximately 1.2 million tons of metal were processed and sold or brokered, including ferrous yard shipments of approximately 1.1 million tons and non-ferrous shipments of approximately 120 million pounds.

•The company turned ferrous inventories 13 times and non-ferrous inventories (excluding stainless and alloy) 14 times.

•A dividend of $0.075 per share was paid to all shareholders of record.

•The company ended the fiscal quarter with no borrowings under its line of credit and a solid cash position including marketable securities of $47 million.

The company noted that weakness in the ferrous markets during the first half of calendar 2005 was without precedent both in terms of percentage and absolute dollar declines in unit pricing. These price changes were extreme and significantly reduced the spreads that the company was able to realize.

•Prices for prime grades of ferrous scrap declined by more than $300 per ton since late 2004 through June 2005.

•Prices for prime grades of ferrous scrap declined from approximately $250 per ton at the start of the first quarter to about $140 per ton in June 2005.

•Obsolete grades of ferrous scrap also declined precipitously in the first half of calendar 2005 and during the first quarter of fiscal 2006.