SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Pursuant to Section 13 or 15 (d)
of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): September 28, 2018
(Exact name of registrant as specified in its charter)
(State or other jurisdiction
726 Bell Avenue, Suite 301
|(Address of principal executive offices)||(Zip Code)|
Registrants telephone number, including area code: (412) 456-4400
(Former name or former address, if changed since last report)
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Emerging growth company ☐
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|Item 8.01.|| |
We have not yet completed our third fiscal quarter ended September 30, 2018, which we refer to below as the third quarter. Following the end of the third quarter, we will need to close our books for the third quarter and our independent registered public accounting firm will need to review our operating results for third quarter. Set forth below are preliminary estimates of certain operating results that we expect to report for the third quarter. We announced these preliminary estimates in a press release we issued on September 28, 2018.
Net sales for the third quarter are expected to be in the range of $106 million to $112 million, compared to net sales of $104 million in the third fiscal quarter ended September 30, 2017 and $127 million in the second fiscal quarter ended June 30, 2018.
Loss from operations for the third quarter is expected to be in the range of $5.5 to $7.2 million, compared to losses from operations of $3.2 million in the third fiscal quarter ended September 30, 2017 and $1.6 million in the second fiscal quarter ended June 30, 2018. The increase in loss from operations in the third quarter is being driven primarily by the full-quarter effects of tariffs imposed by the United States, effective as of June 1, 2018, on U.S. imports of steel products from Canada, which have had a significant adverse effect on the operating results of our Canadian subsidiary, ASW Steel Inc.
Both net sales and loss from operations in the third quarter are being adversely affected by continuing equipment reliability issues, which have resulted from a limitation of available maintenance capital and are causing sales delays, higher maintenance costs, and lack of labor and fixed-cost absorption. In addition, a decline in frac block sales and production due to inventory adjustments in the supply chain, as well as continued cost increases for key production materials and transportation, are negatively affecting net sales and loss from operations in the third quarter.
We have provided ranges for the preliminary results described above because we will need to complete our financial closing procedures for the third quarter before actual results will be known and because other developments may arise prior to the time we finalize third quarter results. We currently expect that final results for net sales and loss from operations in the third quarter will be within the ranges described above. It is possible, however, that those final results will not be within the ranges we currently estimate. These preliminary results are not meant to be a comprehensive statement of our unaudited financial results for the third quarter.
We expect to issue a press release with our third quarter operating results on November 8, 2018 and to file our Form 10-Q for the third quarter on November 9, 2018.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Vice President, General Counsel and
Dated: September 28, 2018