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ALJ Announces Results for Fiscal Year 2009

^{Published on 2009-12-31 11:55:17 - Market Wire}
 

ASHLAND, Ky.--([ BUSINESS WIRE ])--ALJ Regional Holdings, Inc. (Pink Sheets: [ ALJJ ]) today announced that for the fiscal year ended September 30, 2009, it posted net income of $53,161 as compared to net income of $6.332 million for the fiscal year ended September 30, 2008. ALJ is the parent of Kentucky Electric Steel, a steel mini-mill near Ashland, Kentucky. Kentucky Electric Steel produces steel bar flats as both merchant bar quality flats (MBQ Bar Flats) and special bar quality flats (SBQ Bar Flats).

For the 4^th quarter ending September 30, 2009, ALJ's net income was $1.118 million as compared to a net loss of $3.208 million for the 4^th quarter ending September 30, 2008.

According to John Scheel, ALJ's Chief Executive Officer, "Since the KES plant started up in 2004, we have told our employees, our lenders and our owners that anyone could make money in the steel industry in the conditions that prevailed through mid-2008 but that the true test of our success would come with a down market. We got our opportunity in 2009 to prove our assertion and I believe that we passed with high marks. The global recession which negatively impacted virtually every business led to massive red ink in much of the steel industry. Sales revenues and backlogs declined to levels not seen in at least a generation. We had to reduce our breakeven level to below 50% and continue to provide superior customer service. We did both and were rewarded with a profitable year. It wasn't much but not many folks in our business avoided red ink. We feel well-positioned to continue to weather this storm and take advantage when conditions do improve."

This press release contains forward-looking statements.Such statements include information regarding the Company's expectations, goals or intentions regarding the future, including but not limited to statements regarding our ability to weather the recessionary marketplace.Forward-looking statements involve certain risks and uncertainties, and actual results may differ materially from those discussed in any such statements.Among the factors that could cause actual results to differ materially are changes in the Company's stock price, liquidity needs or market fluctuations.Additional factors that could cause actual results to differ are discussed in the Company's Annual Report for the fiscal year ended September 30, 2009 and in its other periodic reports issued through the Pink Sheets News Service and available at [ www.pinksheets.com ].All forward-looking statements in this release are made as of the date hereof and the Company assumes no obligation to update any forward-looking statement.