FORT LAUDERDALE, Fla., Feb. 14, 2011 /PRNewswire/ -- Metals USA Holdings Corp. (NYSE: MUSA) announced today that the Defense Logistics Agency, the Department of Defense's combat logistics support agency, has exercised its option to extend the existing Metals Prime Vendor contract with Metals USA Holdings Corp. ("Metals USA"), through its wholly-owned subsidiary, I-Solutions Direct, Inc., to supply the Southeast Region of the United States. The contract extension represents the first option year of the contract's potential five year term, consisting of a two year base and three one-year option extensions. The Southeast Region Metals Prime Vendor contract is subject to a five-year maximum limit of $230 million.
The Defense Logistics Agency's Prime Vendor concept enables all branches of the military and other federal agencies to acquire a vast array of metals in virtually every product form and metal related services on a just-in-time basis via an online electronic catalog, all conforming to government regulations and specifications. For several years, Metals USA has continuously supplied metal and metal services to federal government customers, primarily through its Metal Prime Vendor contracts. In addition to the Southeast Region, Metals USA also holds Metal Prime Vendor contracts for the Western Region and for the Central Region of the United States, constituting three of four total existing Metal Prime Vendor contracts.
Lourenco Goncalves, Metals USA's Chairman, President and C.E.O. stated: "We are pleased to have prevailed in the Defense Logistics Agency proposal process for the Southeast Region, and look forward to another year serving the needs of our Southeast Region government customers. We believe our dedicated Metal Prime Vendor web-portal, combined with our industry leading service proposition, uniquely qualifies Metals USA to support the Defense Logistics Agency in its critical mission."
About Metals USA
Metals USA provides a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets. For more information, visit the Company's website at www.metalsusa.com. The information contained in this release is limited and the Company encourages interested parties to read the Company's historical Form 10-Ks and Form 10-Qs which are on file with the Securities and Exchange Commission for more complete historical information about the Company. Additionally, copies of the Company's filings with the Securities and Exchange Commission, together with press releases and other information investors may find of interest, can be found at the Company's website at www.metalsusa.com under "Investor Relations."
CAUTIONARY NOTE CONCERNING FORWARD-LOOKING STATEMENTS
This press release contains certain forward-looking statements within the meaning of the federal securities law which involve known and unknown risks, uncertainties or other factors not under the Company's control which may cause the actual results, performance or achievement of the Company to be materially different from the results, performance or other expectations implied by these forward-looking statements. Such statements include, but are not limited to, statements concerning the Company's receipt of orders under the Metals Prime Vendor contracts. Factors that could cause the Company's results to differ materially from actual results or current expectations include, but are not limited to, termination or modification by the government of the Metals Prime Vendor contracts, decreased demand under the Metals Prime Vendor contracts due to Department of Defense budget cuts or otherwise, increased competition, changes in metal prices, the effect of economic conditions generally in the United States and international economies and within major product markets, including a prolonged or substantial economic downturn; the effect of consolidation or other actions of our suppliers; disruptions in our sources of supply; increased competition and the other factors detailed in the Company's Registration Statement on Form S-1 relating to its IPO under the caption "Risk Factors" and other reports filed with the Securities and Exchange Commission. In addition, these statements are based on a number of assumptions that are subject to change. This press release speaks only as of this date and the Company disclaims any duty to update the information herein.
SOURCE Metals USA Holdings Corp.