EAST RUTHERFORD, NJ--(Marketwire - Aug 14, 2012) - The Alpine Group, Inc. ("Alpine") (
For the three and six months ended June 30, 2012 revenues of $17.7 and $58.8 million, respectively, represented a decrease of $33.8 and $42.7 million, respectively, from the comparative periods in 2011. The decreases were due primarily to the termination of the tolling agreement between Exeon Inc. and Wolverine Tube, Inc. effective November 1, 2011.
The table below reflects Alpine's non-GAAP near breakeven net loss for the three and six month periods ended June 30, 2012 compared to $0.3 and $0.8 million of non-GAAP net income for the comparative periods in 2011, primarily due to the loss of the Wolverine toll business.
| (millions) | Three months ended June 30, 2012 |
Three months ended June 30, 2011 |
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| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||
| Net sales | $ | 17.7 | $ | -- | $ | 17.7 | $ | 51.4 | $ | -- | $ | 51.4 | |||||||||||
| Cost of goods sold | 15.8 | 0.8 | (a) | 16.6 | 47.4 | 2.1 | (a) | 49.5 | |||||||||||||||
| Gross profit (loss) | $ | 1.9 | $ | (0.8 | ) | $ | 1.1 | $ | 4.0 | $ | (2.1 | ) | $ | 1.9 | |||||||||
| Selling, general and administrative expenses | 1.2 |
-- |
1.2 |
1.2 |
-- |
1.2 |
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| Severance Costs | 0.3 | (0.3 | ) | (b) | -- | -- | -- | -- | |||||||||||||||
| Operating income (loss) | $ | 0.4 | $ | (0.5 | ) | $ | (0.1 | ) | $ | 2.8 | $ | (2.1 | ) | $ | 0.7 | ||||||||
| Net income (loss) | $ | 0.3 | $ | (0.3 | ) | $ | (0.0 | ) | $ | 1.5 | $ | (1.2 | ) | $ | 0.3 | ||||||||
| (a)-represents the following adjustments charge / (credit) as recorded: | |||||||||||||||||||||||
| Adjust from FIFO to LIFO | $ | (0.7 | ) | $ | (2.2 | ) | |||||||||||||||||
| Hedge MTM adjustments | (0.1 | ) | 0.1 | ||||||||||||||||||||
| Total non-cash adjustments | $ | (0.8 | ) | $ | (2.1 | ) | |||||||||||||||||
(b)- represents non-recurring expenses related to severance of certain Alpine employees.
| (millions) | Six months ended June 30, 2012 |
Six months ended June 30, 2011 |
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| GAAP | Adjustments | Non-GAAP | GAAP | Adjustments | Non-GAAP | ||||||||||||||||||||
| Net sales | $ | 58.8 | $ | -- | $ | 58.8 | $ | 101.5 | $ | -- | $ | 101.5 | |||||||||||||
| Cost of goods sold | 56.2 | 0.3 | (c) | 56.5 | 98.7 | 1.6 | (c) | 97.1 | |||||||||||||||||
| Gross profit (loss) | $ | 2.6 | $ | (0.3 | ) | $ | 2.3 | $ | 2.8 | $ | 1.6 | $ | 4.4 | ||||||||||||
| Selling, general and administrative expenses | 2.6 |
-- |
2.6 |
2.7 |
-- |
2.7 |
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| Severance costs | 0.3 | (0.3 | ) | (d) | -- | -- | -- | -- | |||||||||||||||||
| Operating income (loss) | $ | (0.3 | ) | $ | (0.0 | ) | $ | (0.3 | ) | $ | 0.1 | $ | 1.6 | $ | 1.7 | ||||||||||
| Net income (loss) | $ | (0.1 | ) | $ | (0.0 | ) | $ | (0.1 | ) | $ | (0.2 | ) | $ | 1.0 | $ | 0.8 | |||||||||
| (c)-represents the following adjustments charge / (credit) as recorded: | |||||||||||||||||||||||||
| Adjust from FIFO to LIFO | $ | (0.3 | ) | $ | 3.3 | ||||||||||||||||||||
| Hedge MTM adjustments | -- | (1.7 | ) | ||||||||||||||||||||||
| Total non-cash adjustments | $ | (0.3 | ) | $ | (1.6 | ) | |||||||||||||||||||
(d)- represents non-recurring expenses related to severance of certain Alpine employees.
Steven S. Elbaum, Alpine's Chairman and Chief Executive Officer, stated, "The near breakeven second quarter operating results, before non-cash LIFO inventory and related adjustments, reflects the loss of income from the Wolverine tolling agreement. At Synergy Cables, Alpine's majority-owned subsidiary, we expect 2012 to continue the trend of revenue, volume and EBITDA improvements posted in 2011. For the quarter ended March 31, 2012, Synergy had revenues of $46.8 million, EBITDA of $3.3 million and net income of $1.1 million."
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. (