EAST RUTHERFORD, NJ--(Marketwire - Nov 15, 2011) - The Alpine Group, Inc. ("Alpine") (
For the three months ended September 30, 2011 revenues increased $15.0 million from $32.8 million in 2010 to $47.8 million in 2011, due primarily to higher copper and silver prices and increased volumes in the manufacture and sale of copper/silver alloys and joining materials under a toll agreement with a subsidiary of Wolverine Tube, Inc. Average silver and copper prices were 105% and 23% higher in the third quarter of 2011, respectively, compared to the third quarter of 2010. Posterloid's revenues were down 30% in the third quarter of 2011 compared to the same period in 2010, due to lower demand in the signage business. For the nine months ended September 30, 2011 Alpine's revenues increased $62.9 million from $86.5 million to $149.4 million, due to increased volumes related to the Wolverine Tube toll agreements and higher copper and silver prices for the first nine months of 2011 compared to the same period in 2010. Average silver and copper prices were 100% and 29% higher in the nine months ended September 30, of 2011, respectively, compared to the same period in 2010.
For the three month period ended September 30, 2011 Alpine had net income of $3.4 million on a GAAP basis (including a $3.0 million after tax non-cash LIFO and mark-to-market hedge inventory gains) compared to a net loss of $1.1 million for the comparable 2010 period (including a $1.5 million after tax non-cash LIFO inventory charge). Third quarter 2011 earnings before interest, taxes and depreciation (EBITDA) were $0.9 million, an improvement of $0.1 million from an EBITDA of $0.8 million for the third quarter of 2010. The comparative quarterly improvement in the 2011 results reflects increased profitability in Exeon's scrap reclamation and metals' operations offset by lower earnings in Posterloid's signage business. For the nine month period ended September 30, 2011 Alpine had net income of $1.2 million compared to a net loss of $0.2 million for the same period in 2010 (after excluding certain non-cash charges and gains for both periods). The net income for the nine months ended September 30, 2011 of $3.2 million on a GAAP basis was due primarily to $2.1 million of after tax non-cash mark-to-market inventory hedge gain. For the nine months ended September 30, 2011, earnings before interest, taxes and depreciation (EBITDA) were $2.7 million, an improvement of $2.2 million from an EBITDA of $0.5 million for the same period in 2010.
Steven S. Elbaum, Alpine's Chairman and Chief Executive Officer, stated, "Positive third quarter and year to date operating results, before non cash LIFO inventory and related adjustments, reflect improvements at Exeon and Posterloid and extend EBITDA improvements posted in the second half of 2010. Additionally, Alpine's majority-owned Synergy Cables' revenue, volumes and EBITDA all continued to improve comparatively in the third quarter. The completion of the sale of non-core assets by Synergy has reduced Synergy's debt and increased stockholders equity to $15 million at June 30, 2011. 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 as a strengthened and recapitalized company. Thereafter, Alpine was granted 3.2% of the outstanding stock of Wolverine, 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. It is anticipated that Wolverine's shareholders' equity at June 30, 2011 under 'fresh start' accounting will be approximately $70 million. I am Chairman of the Board of the reorganized Wolverine and Alpine continues to perform services under a Management Agreement."
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. (