EAST RUTHERFORD, NJ--(Marketwire - May 21, 2010) - The Alpine Group, Inc. ("Alpine") (
For the year-ended December 31, 2009, Alpine had a cash loss from continuing operations of $0.4 million compared to a cash gain of $1.8 million for the same period in 2008. The $7.8 million GAAP loss for 2009 includes $3.4 million (Alpine's share of Synergy Cables Ltd. ("Synergy") losses for 2009), a non-cash loss of $9.8 million on the sale of $20 million of preferred stock of Wolverine Tube Inc. ("Wolverine"), offset by a $6.9 million tax benefit from the carry back of losses generated by the sale. As of December 31, 2009, Alpine's investment in both Synergy and Wolverine have been written-down to zero.
2009 revenues declined $15.3 million from $52 million in 2008 to $36.7 million in 2009, due to comparative revenue decreases at Alpine's Exeon Inc. ("Exeon") and Posterloid Corporation ("Posterloid") subsidiaries. At Exeon, the decrease in revenues was due primarily to a 25% reduction in average copper prices for 2009 compared to 2008. Copper prices are largely passed through to customers and do not impact profitability of Exeon's scrap recycling and distribution operations. Posterloid's 2009 revenues declined 36% due to the slowdown in growth of franchise locations and remodels affecting its key customers and markets in the signage industry.
Steven S. Elbaum, Alpine's Chairman and Chief Executive Officer, stated that "Wolverine and Synergy continued to experience significant market and demand driven challenges in 2009, along with the cost associated with significant financial leverage in those operating businesses. However, Wolverine and Synergy are well positioned, from a cost and competitive perspective, to operate substantially more profitably with increased demand and capacity utilization. Early 2010 conditions reflect a bottoming of demand and, in some product segments, for example, higher voltage cabling products and industrial copper tubing, an increase in demand and shipments over earlier forecasts. A persistent increase in demand should improve profitability from operations and potentially provide a basis for refinancing or other deleveraging of the balance sheets of Wolverine and Synergy. This would benefit Alpine's effort to enhance the long term value or recoverability of investments in Wolverine and Synergy."
All statements in this press release other than statements of historical fact are forward-looking statements within the meaning of the "safe harbor" provision of the Private Securities Litigation Reform Act of 1995. These statements are based on management's current expectations and beliefs and are subject to a number of factors and uncertainties that could cause actual results to differ materially from those described in this press release. The forward-looking statements speak only as of the date of this press release, and the Company expressly disclaims any obligations to release publicly any update or revision to any forward-looking statement contained herein if there are any changes in conditions or circumstances on which any such forward-looking statement is based.
The Alpine Group, Inc. (