WHX Announces 2000 Fourth Quarter, Year End Financial Results New York-WHX Corp. (NYSE: WHX)

Apr 17, 2001, 01:00 ET from WHX Corp.

    NEW YORK, April 17 /PRNewswire/ -- WHX Corp. (NYSE:   WHX) today reported a
 net loss of $181.0 million, on net sales of $1.75 billion, for the year ended
 December 31, 2000, compared with a net loss of $14.9 million, on net sales of
 $1.77 billion, for the year ended December 31, 1999. After deducting preferred
 stock dividends, basic and diluted net loss per common share was $14.10 for
 2000 compared with a $2.24 loss per common share for 1999. There were no
 extraordinary items in 2000 as compared to $.9 million (net of tax), or
 $.06 per diluted share in 1999, which represents the discount on the purchase
 of $20.5 million aggregate principal amount of the Company's 10-1/2% Senior
 Notes in the open market.
     For the fourth quarter of 2000, the Company reported a net loss of
 $189.5 million, on sales of $329.1 million compared with a net loss of
 $5.9 million on sales of $471.2 million for the fourth quarter of 1999. After
 deducting preferred dividends, basic and diluted net loss per common share was
 $13.55 for the fourth quarter of 2000, compared with a $.78 net loss per share
 for the fourth quarter of 1999.
     On November 16, 2000, Wheeling-Pittsburgh Corporation (WPC), one of the
 Company's wholly owned subsidiaries, and its subsidiaries, filed petitions
 seeking reorganization under Chapter 11 of the United States Bankruptcy Code.
 As a result of the Bankruptcy Filing, the Company has, as of November 16,
 2000, deconsolidated the balance sheet of WPC and its subsidiaries. As a
 result of such deconsolidation, the consolidated balance sheet at December 31,
 2000 does not include any of the assets or liabilities of WPC and its
 subsidiaries, and the accompanying December 31, 2000 Profit and Loss data
 includes the operating results of WPC and its subsidiaries for the period
 January 1, 2000 through November 16, 2000. Since November 16, 2000, the
 Company has accounted for its investment in WPC and its subsidiaries on the
 cost method. The Bankruptcy Filing and the resultant deconsolidation of WPC as
 of November 16, 2000 have affected comparisons between year 2000 and year 1999
 results.
     The Company's Annual Report on Form 10-K was not filed on a timely basis
 primarily due to difficulties in gathering information relating to the
 Bankruptcy Filing of WPC and its subsidiaries. The Company anticipates filing
 the Form 10-K within the next week.
 
     Operating Results
     For the year ended December 31, 2000, loss from operations was
 $5.1 million, compared to operating income of $39.2 million in the year ended
 December 31, 1999. Unimast Incorporated reported operating income of
 $14.6 million in 2000 compared to $18.6 million in 1999. Handy & Harman (H&H)
 reported operating income of $36.0 million for 2000, compared to $40.2 million
 for 1999. WPC reported an operating loss of $49.6 million for 2000 compared to
 $17.6 million of operating income for 1999. For the fourth quarter of 2000,
 the consolidated loss from operations totaled $31.9 million, compared to
 operating income of $21.1 million in the 1999 fourth quarter.
     Other income/loss totaled a loss of $16.1 million in 2000, compared to
 income of $26.4 million in 1999. For the fourth quarter of 2000, other loss
 was $14.3 million, compared to $7.5 million of other loss in the 1999 fourth
 quarter.
     Earnings before interest, taxes, depreciation and amortization, non-cash
 pension and OPEB benefits, other income and extraordinary items totaled
 $90.9 million in 2000, compared to  $140.3 million in 1999.
 
     Liquidity and Capital
     At December 31, 2000, total liquidity, comprising cash, short-term
 investments (net of related investment borrowings) and funds available under
 the Company's bank credit arrangements (excluding liquidity of WPC and its
 subsidiaries), totaled $129.5 million, compared with $255.4 million (excluding
 liquidity of WPC and its subsidiaries) at December 31, 1999. At December 31,
 2000, total liquidity, comprising cash, short-term investments (net of related
 investment borrowings) and funds available under WPC's bank credit
 arrangements, totaled $80.1 million compared with $32.7 million available at
 December 31, 1999. At December 31, 2000, funds available under the Company's
 committed credit arrangements (excluding credit arrangements of WPC and its
 subsidiaries) totaled $55.4 million compared with $80.8 million in 1999. The
 decrease is due primarily to the expiration of H&H's $25.0 million delayed
 draw facility. At December 31, 2000, funds available under WPC's and its
 subsidiaries committed credit arrangements totaled $65.1 million. In 2000, the
 Company did not repurchase any shares of Common Stock or any 10-1/2% Senior
 Notes.
     The Company continues to pursue strategic alternatives to maximize the
 value of its portfolio of businesses. Some of these alternatives have
 included, and will continue to include, selective acquisitions, divestitures
 and sales of certain assets.
     WHX (http://www.whxcorp.com) is a holding company that has been structured
 to invest in and/or acquire a diverse group of businesses on a decentralized
 basis. WHX's primary businesses currently are: H&H, a diversified
 manufacturing company whose strategic business segments encompass, among
 others, specialty wire, tubing, and fasteners, and precious metals plating and
 fabrication; Unimast Incorporated, a leading manufacturer of steel framing and
 other products for commercial and residential construction; and WHX
 Entertainment Corp., a co-owner of a racetrack and video lottery facility
 located in Wheeling, West Virginia. WHX's other business consists of WPC and
 its subsidiaries including Wheeling-Pittsburgh Steel Corporation, a vertically
 integrated manufacturer of value-added and flat rolled steel products.
 
     This press release contains certain forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1993, as amended, and Section
 21E of the Securities Exchange Act of 1934, as amended, which are intended to
 be covered by the safe harbors created thereby. Investors are cautioned that
 all forward-looking statements involve risks and uncertainty, including
 without limitation, the ability of the Company to market and sell its
 products, the effects of competition and pricing and company and industry
 shipment levels and the impact and effect of the bankruptcy filing by WPC and
 its subsidiaries. Although the Company believes that the assumptions
 underlying the forward-looking statements are reasonable, any of the
 assumptions could be inaccurate, and therefore, there cannot be assurance the
 forward-looking statements included in this press release will prove to be
 accurate. In light of the significant uncertainties inherent in the
 forward-looking statement included herein, the inclusion of such information
 should not be regarded as a representation by the Company or any other person
 that the objectives and plans of the Company will be achieved.
 
                                WHX CORPORATION
      Consolidated Statement of Operations (in thousands except per share)
                                  (Unaudited)
 
                                            Year ended December 31,
                                        2000           1999*         1998*
 
     Revenues:
     Net sales                    $1,745,459      $1,764,699    $1,690,846
     Cost and expenses:
     Cost of products sold,
       excluding depreciation      1,509,393       1,483,061     1,425,920
     Depreciation and amortization    98,777         104,856        96,870
     Selling, administrative
       and general expense           142,373         137,615       116,840
                                   1,750,543       1,725,532     1,639,630
     Operating income (loss)         (5,084)          39,167        51,216
     Interest expense on debt         86,222          87,851        78,096
     Other income                   (16,139)          26,420        89,696
     Income (loss) before taxes and
       extraordinary items         (107,445)        (22,270)        62,816
     Tax provision (benefit)          73,600         (6,430)        23,386
     Income (loss) before
       extraordinary items         (181,045)        (15,840)        39,430
     Extraordinary items--
       net of tax                         --             896         2,241
     Net income (loss)             (181,045)        (14,944)        41,671
     Dividend requirement for
       preferred stock                20,607          20,608        20,608
     Net income (loss) available to
       common stock               $(201,652)       $(35,552)       $21,063
 
                   Basic income (loss) per share of common stock
 
     Income (loss) before
       extraordinary item           $(14.10)         $(2.30)         $1.04
     Extraordinary item --
       net of tax                         --             .06           .12
     Net income (loss) per share    $(14.10)         $(2.24)         $1.16
 
                      Income (loss) per share of common stock
 
       -- assuming dilution
     Income (loss) before
       extraordinary item           $(14.10)         $(2.30)          $.99
     Extraordinary item --
       net of tax                         --             .06           .12
     Net income (loss) per share --
       assuming dilution            $(14.10)         $(2.24)         $1.11
     *Reclassified
 
 
 
                                WHX CORPORATION
                          Consolidated Balance Sheets
                                  (Unaudited)
 
 
 Year ended
 
 December 31,
                                                         2000           1999
                                                            (in thousands)
                                       ASSETS
 
     Current assets:
     Cash and cash equivalents                         $4,837        $10,775
     Short term investments                            69,319        659,356
     Trade receivables, less allowance
       for doubtful accounts
       of $1,339 and $2,306                            83,929        141,091
     Inventories                                      150,269        441,869
     Prepaid expenses and deferred charges             11,472         14,622
     Due from WPC                                      20,878             --
     Total current assets                             340,704      1,267,713
     Pledged asset account                             33,000
     Investment in associated companies                18,229         80,490
     Property, plant and equipment, at cost less
       accumulated depreciation
        and amortization                              173,790        816,501
     Intangibles, net of amortization                 282,821        280,766
     Deferred income taxes                                 --        123,033
     Prepaid pension asset                             37,755         40,336
     Deferred charges and other assets                 27,217         64,727
                                                     $913,516     $2,673,566
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
     Trade payables                                   $46,417       $171,229
     Accrued liabilities                               32,273         40,523
     Short term debt                                    6,000        599,447
     Payroll and employee benefits                      6,511         78,162
     Federal, state and local taxes                     1,362         14,473
     Deferred income taxes -- current                  18,562         67,793
     Due to WPC                                        31,952             --
     Long-term debt due in one year                       929          1,810
     Total current liabilities                        144,006        973,437
     Long-term debt                                   504,983        847,720
     Deferred income taxes - non current               21,289             --
     Other employee benefit liabilities                 8,404        400,425
     Loss in excess of investment in WPC               39,783             --
     Other liabilities                                 17,405         71,181
                                                      735,870      2,292,763
     Redeemable common stock --
       245 shares and 282 shares                        2,646          3,332
 
     Stockholders' Equity:
     Preferred stock -- $.10 par value; authorized 10,000
       shares; issued and outstanding:
       5,883 shares                                       589            589
     Common stock $.01 par value; authorized 60,000
       shares; issued and outstanding:
       14,590 and 14,145 shares                           146            141
     Accumulated other comprehensive income           (1,501)            945
     Additional paid-in capital                       555,481        553,861
     Accumulated earnings (deficit)                 (379,715)      (178,065)
                                                      175,000        377,471
                                                     $913,516     $2,673,566
 
 

SOURCE WHX Corp.
    NEW YORK, April 17 /PRNewswire/ -- WHX Corp. (NYSE:   WHX) today reported a
 net loss of $181.0 million, on net sales of $1.75 billion, for the year ended
 December 31, 2000, compared with a net loss of $14.9 million, on net sales of
 $1.77 billion, for the year ended December 31, 1999. After deducting preferred
 stock dividends, basic and diluted net loss per common share was $14.10 for
 2000 compared with a $2.24 loss per common share for 1999. There were no
 extraordinary items in 2000 as compared to $.9 million (net of tax), or
 $.06 per diluted share in 1999, which represents the discount on the purchase
 of $20.5 million aggregate principal amount of the Company's 10-1/2% Senior
 Notes in the open market.
     For the fourth quarter of 2000, the Company reported a net loss of
 $189.5 million, on sales of $329.1 million compared with a net loss of
 $5.9 million on sales of $471.2 million for the fourth quarter of 1999. After
 deducting preferred dividends, basic and diluted net loss per common share was
 $13.55 for the fourth quarter of 2000, compared with a $.78 net loss per share
 for the fourth quarter of 1999.
     On November 16, 2000, Wheeling-Pittsburgh Corporation (WPC), one of the
 Company's wholly owned subsidiaries, and its subsidiaries, filed petitions
 seeking reorganization under Chapter 11 of the United States Bankruptcy Code.
 As a result of the Bankruptcy Filing, the Company has, as of November 16,
 2000, deconsolidated the balance sheet of WPC and its subsidiaries. As a
 result of such deconsolidation, the consolidated balance sheet at December 31,
 2000 does not include any of the assets or liabilities of WPC and its
 subsidiaries, and the accompanying December 31, 2000 Profit and Loss data
 includes the operating results of WPC and its subsidiaries for the period
 January 1, 2000 through November 16, 2000. Since November 16, 2000, the
 Company has accounted for its investment in WPC and its subsidiaries on the
 cost method. The Bankruptcy Filing and the resultant deconsolidation of WPC as
 of November 16, 2000 have affected comparisons between year 2000 and year 1999
 results.
     The Company's Annual Report on Form 10-K was not filed on a timely basis
 primarily due to difficulties in gathering information relating to the
 Bankruptcy Filing of WPC and its subsidiaries. The Company anticipates filing
 the Form 10-K within the next week.
 
     Operating Results
     For the year ended December 31, 2000, loss from operations was
 $5.1 million, compared to operating income of $39.2 million in the year ended
 December 31, 1999. Unimast Incorporated reported operating income of
 $14.6 million in 2000 compared to $18.6 million in 1999. Handy & Harman (H&H)
 reported operating income of $36.0 million for 2000, compared to $40.2 million
 for 1999. WPC reported an operating loss of $49.6 million for 2000 compared to
 $17.6 million of operating income for 1999. For the fourth quarter of 2000,
 the consolidated loss from operations totaled $31.9 million, compared to
 operating income of $21.1 million in the 1999 fourth quarter.
     Other income/loss totaled a loss of $16.1 million in 2000, compared to
 income of $26.4 million in 1999. For the fourth quarter of 2000, other loss
 was $14.3 million, compared to $7.5 million of other loss in the 1999 fourth
 quarter.
     Earnings before interest, taxes, depreciation and amortization, non-cash
 pension and OPEB benefits, other income and extraordinary items totaled
 $90.9 million in 2000, compared to  $140.3 million in 1999.
 
     Liquidity and Capital
     At December 31, 2000, total liquidity, comprising cash, short-term
 investments (net of related investment borrowings) and funds available under
 the Company's bank credit arrangements (excluding liquidity of WPC and its
 subsidiaries), totaled $129.5 million, compared with $255.4 million (excluding
 liquidity of WPC and its subsidiaries) at December 31, 1999. At December 31,
 2000, total liquidity, comprising cash, short-term investments (net of related
 investment borrowings) and funds available under WPC's bank credit
 arrangements, totaled $80.1 million compared with $32.7 million available at
 December 31, 1999. At December 31, 2000, funds available under the Company's
 committed credit arrangements (excluding credit arrangements of WPC and its
 subsidiaries) totaled $55.4 million compared with $80.8 million in 1999. The
 decrease is due primarily to the expiration of H&H's $25.0 million delayed
 draw facility. At December 31, 2000, funds available under WPC's and its
 subsidiaries committed credit arrangements totaled $65.1 million. In 2000, the
 Company did not repurchase any shares of Common Stock or any 10-1/2% Senior
 Notes.
     The Company continues to pursue strategic alternatives to maximize the
 value of its portfolio of businesses. Some of these alternatives have
 included, and will continue to include, selective acquisitions, divestitures
 and sales of certain assets.
     WHX (http://www.whxcorp.com) is a holding company that has been structured
 to invest in and/or acquire a diverse group of businesses on a decentralized
 basis. WHX's primary businesses currently are: H&H, a diversified
 manufacturing company whose strategic business segments encompass, among
 others, specialty wire, tubing, and fasteners, and precious metals plating and
 fabrication; Unimast Incorporated, a leading manufacturer of steel framing and
 other products for commercial and residential construction; and WHX
 Entertainment Corp., a co-owner of a racetrack and video lottery facility
 located in Wheeling, West Virginia. WHX's other business consists of WPC and
 its subsidiaries including Wheeling-Pittsburgh Steel Corporation, a vertically
 integrated manufacturer of value-added and flat rolled steel products.
 
     This press release contains certain forward-looking statements within the
 meaning of Section 27A of the Securities Act of 1993, as amended, and Section
 21E of the Securities Exchange Act of 1934, as amended, which are intended to
 be covered by the safe harbors created thereby. Investors are cautioned that
 all forward-looking statements involve risks and uncertainty, including
 without limitation, the ability of the Company to market and sell its
 products, the effects of competition and pricing and company and industry
 shipment levels and the impact and effect of the bankruptcy filing by WPC and
 its subsidiaries. Although the Company believes that the assumptions
 underlying the forward-looking statements are reasonable, any of the
 assumptions could be inaccurate, and therefore, there cannot be assurance the
 forward-looking statements included in this press release will prove to be
 accurate. In light of the significant uncertainties inherent in the
 forward-looking statement included herein, the inclusion of such information
 should not be regarded as a representation by the Company or any other person
 that the objectives and plans of the Company will be achieved.
 
                                WHX CORPORATION
      Consolidated Statement of Operations (in thousands except per share)
                                  (Unaudited)
 
                                            Year ended December 31,
                                        2000           1999*         1998*
 
     Revenues:
     Net sales                    $1,745,459      $1,764,699    $1,690,846
     Cost and expenses:
     Cost of products sold,
       excluding depreciation      1,509,393       1,483,061     1,425,920
     Depreciation and amortization    98,777         104,856        96,870
     Selling, administrative
       and general expense           142,373         137,615       116,840
                                   1,750,543       1,725,532     1,639,630
     Operating income (loss)         (5,084)          39,167        51,216
     Interest expense on debt         86,222          87,851        78,096
     Other income                   (16,139)          26,420        89,696
     Income (loss) before taxes and
       extraordinary items         (107,445)        (22,270)        62,816
     Tax provision (benefit)          73,600         (6,430)        23,386
     Income (loss) before
       extraordinary items         (181,045)        (15,840)        39,430
     Extraordinary items--
       net of tax                         --             896         2,241
     Net income (loss)             (181,045)        (14,944)        41,671
     Dividend requirement for
       preferred stock                20,607          20,608        20,608
     Net income (loss) available to
       common stock               $(201,652)       $(35,552)       $21,063
 
                   Basic income (loss) per share of common stock
 
     Income (loss) before
       extraordinary item           $(14.10)         $(2.30)         $1.04
     Extraordinary item --
       net of tax                         --             .06           .12
     Net income (loss) per share    $(14.10)         $(2.24)         $1.16
 
                      Income (loss) per share of common stock
 
       -- assuming dilution
     Income (loss) before
       extraordinary item           $(14.10)         $(2.30)          $.99
     Extraordinary item --
       net of tax                         --             .06           .12
     Net income (loss) per share --
       assuming dilution            $(14.10)         $(2.24)         $1.11
     *Reclassified
 
 
 
                                WHX CORPORATION
                          Consolidated Balance Sheets
                                  (Unaudited)
 
 
 Year ended
 
 December 31,
                                                         2000           1999
                                                            (in thousands)
                                       ASSETS
 
     Current assets:
     Cash and cash equivalents                         $4,837        $10,775
     Short term investments                            69,319        659,356
     Trade receivables, less allowance
       for doubtful accounts
       of $1,339 and $2,306                            83,929        141,091
     Inventories                                      150,269        441,869
     Prepaid expenses and deferred charges             11,472         14,622
     Due from WPC                                      20,878             --
     Total current assets                             340,704      1,267,713
     Pledged asset account                             33,000
     Investment in associated companies                18,229         80,490
     Property, plant and equipment, at cost less
       accumulated depreciation
        and amortization                              173,790        816,501
     Intangibles, net of amortization                 282,821        280,766
     Deferred income taxes                                 --        123,033
     Prepaid pension asset                             37,755         40,336
     Deferred charges and other assets                 27,217         64,727
                                                     $913,516     $2,673,566
 
                        LIABILITIES AND STOCKHOLDERS' EQUITY
 
     Current liabilities:
     Trade payables                                   $46,417       $171,229
     Accrued liabilities                               32,273         40,523
     Short term debt                                    6,000        599,447
     Payroll and employee benefits                      6,511         78,162
     Federal, state and local taxes                     1,362         14,473
     Deferred income taxes -- current                  18,562         67,793
     Due to WPC                                        31,952             --
     Long-term debt due in one year                       929          1,810
     Total current liabilities                        144,006        973,437
     Long-term debt                                   504,983        847,720
     Deferred income taxes - non current               21,289             --
     Other employee benefit liabilities                 8,404        400,425
     Loss in excess of investment in WPC               39,783             --
     Other liabilities                                 17,405         71,181
                                                      735,870      2,292,763
     Redeemable common stock --
       245 shares and 282 shares                        2,646          3,332
 
     Stockholders' Equity:
     Preferred stock -- $.10 par value; authorized 10,000
       shares; issued and outstanding:
       5,883 shares                                       589            589
     Common stock $.01 par value; authorized 60,000
       shares; issued and outstanding:
       14,590 and 14,145 shares                           146            141
     Accumulated other comprehensive income           (1,501)            945
     Additional paid-in capital                       555,481        553,861
     Accumulated earnings (deficit)                 (379,715)      (178,065)
                                                      175,000        377,471
                                                     $913,516     $2,673,566
 
 SOURCE  WHX Corp.