EAST RUTHERFORD, NJ--(Marketwire - Apr 6, 2012) - The Alpine Group, Inc. ("Alpine") (
For the year-ended December 31, 2011 revenues increased by $43.6 million from $123.8 to $167.4 million, due to the net effect of higher copper and silver prices and recording of sales under a tolling agreement with a subsidiary of Wolverine Tube, Inc. The tolling agreement terminated effective November 1, 2011. Average silver and copper prices for 2011 were 74% and 17% higher than 2010, respectively.
For 2011 Alpine had net income of $5.7 million on a GAAP basis (including $4.6 million of after-tax non-cash LIFO and mark-to-market hedge inventory gains) compared to a net loss of $8.5 million for 2010. The $8.5 million GAAP loss for 2010 was due primarily to an after-tax non-cash LIFO charge ($4.0 million), Alpine's share ($1.7 million) of Synergy Cables Ltd. ("Synergy") losses for 2010 and Alpine's share ($2.4 million) of Wolverine Tube Inc.'s Other Comprehensive Losses for 2010. Alpine's EBITDA for 2011 (excluding LIFO and mark-to-market gains) improved to $2.8 million from $0.7 million for 2010 as a result of improvements in earnings at its Exeon and Posterloid subsidiaries and reduced corporate expenses.
For the quarter ended December 31, 2011 Alpine's revenues decreased 52% to $18.0 million from $37.4 million due primarily to the aforementioned termination of the tolling agreement with Wolverine, effective November 1, 2011. Alpine had net income for the quarter of $0.1 million excluding $2.5 million of after-tax non-cash LIFO and hedge mark-to-market credits, which was a slight improvement over the fourth quarter of 2010.
Steven S. Elbaum, Alpine's Chairman and Chief Executive Officer, stated, "Positive fourth quarter and year-to-date operating results, before non-cash LIFO inventory and related adjustments, reflect improvements at Exeon and Posterloid. Additionally, Alpine's majority-owned Synergy Cables' revenue, volumes and EBITDA (appx. $8.5 million) increased significantly in 2011. A core business focus of Synergy Cables is the growing demand for medium and high voltage power cable in Israel and key export markets (which account for more than 50% of its revenues). Alpine carries its $14 million equity investment in and $1.5 subordinated loan to Synergy on its balance sheet at zero. Wolverine Tube emerged from bankruptcy in June 2011 as a strengthened and recapitalized company with good long term prospects to build value in its markets. Alpine owns appx. 7% of Wolverine (including 3.2% granted under a Wolverine incentive plan), an option to purchase an additional 3.2% of Wolverine's outstanding stock at a $70 million equity value and other financial incentives linked to Wolverine's future performance. I am Chairman of the reorganized Wolverine and Alpine continues to perform services under a Management Agreement. We believe that Wolverine should perform well over the long term to deliver value to its shareholders."
"During 2011 Alpine operated with positive net income and increased its shareholders' equity by 46% to $17,512. The loss of income from the winddown of the tolling agreement is expected to be offset, to some extent, by anticipated increases in operating results at Exeon, Posterloid and expense reductions."
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. (