Metals USA Reports Second Quarter 2009 Results

Metals USA Holdings Corp., a provider of a wide range of products and services in the heavy carbon steel, flat-rolled steel, non-ferrous metals, and building products markets, today announced its operating results for the quarter ended June 30, 2009. Sales revenues for the second quarter were $267.8 million compared to $593.1 million of sales revenues for the same period last year.

Adjusted EBITDA (as defined and calculated in the attached table), a non-GAAP financial measure used by Metals USA and its creditors to monitor the performance of the business, was a negative $13.5 million for the second quarter compared to second quarter 2008 Adjusted EBITDA of $92.6 million. Second quarter 2009 net income was $13.8 million compared to net income of $39.8 million for the same period last year.

Lourenco Goncalves, the Company's Chairman, President and CEO stated: "We are pleased with the results of our continuing inventory reduction efforts. The cash generated by our actions allowed us to repay a significant portion of our outstanding debt during the first half of 2009." Mr. Goncalves added: "We believe Metals USA is well positioned to benefit from an improving environment we anticipate for the second half of the year."

The Company had $166.0 million drawn under its asset-based credit facility at June 30, 2009, with excess availability of $69.1 million. Total liquidity, defined as excess availability plus cash, was $122.6 million at June 30, 2009. Net debt of $522.3 million on June 30, 2009 was $255.2 million lower than net debt of $777.5 million on December 31, 2008 due primarily to a decrease in working capital and debt repurchases.

Total debt of $575.8 million at June 30, 2009 consisted of outstanding advances under the $625 Million Asset Based Loan Facility in the amount of $166.0 million, outstanding 11 1/8 percent Senior Secured Notes in the amount of $226.3 million, outstanding PIK Toggle Notes of $177.5 million, and $6.0 million of other long term debt. Capital expenditures were $1.4 million for the current quarter and $2.3 million year-to-date. Net cash provided by operating activities for the first six months of 2009 was $183.0 million.

The Company recognized depreciation and amortization expenses during the quarter of $4.8 million. Interest expense for the quarter was $17.2 million, which included $3.8 million of interest on the Company's Senior Floating Rate Toggle Notes due 2012 that was paid entirely in kind ("PIK Interest"). Operating income (loss), the GAAP measure that we believe is most comparable to Adjusted EBITDA, was a loss of $19.1 million for the second quarter of 2009, compared to $83.4 million of operating income recorded in the same period last year.

Second quarter 2009 results included charges related to lower-of-cost or market adjustments (LCM) consisting of a pre-tax inventory write-down of $20.7 million, partially offset by $14.6 million of increased gross margin from previous LCM write-downs on inventory sold during the period.

Metals USA has scheduled a conference call for Friday, July 24, 2009 at 11 a.m. Eastern Time. Anyone interested in hearing the call live may gain access via the Company's website. A replay of the call will be available approximately two hours after the live broadcast ends and will be available until approximately August 25, 2009. To access the replay, dial (888) 203-1112 and enter the pass code 4551786.

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 benefit, can be found at the Company's website at www.metalsusa.com under "Investor Relations."

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www.metalsusa.com

This press release contains certain forward-looking statements 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. These factors include, but are not limited to, those disclosed in the Company's historic periodic filings with the Securities and Exchange Commission.