Steven S. Elbaum
Chairman and Chief Executive Officer
- THE ALPINE GROUP, INC. POSTS THIRD QUARTER 2007 RESULTS -
EAST RUTHERFORD, N.J., December 14, 2007, Market Wire/ -- The Alpine Group, Inc. (“Alpine” or the “Company”) (APNI.PK) today posted its unaudited financial statements for the third quarter of 2007 to its Website (www.alpine-group.net).
Alpine recorded income from continuing operations of $972,000 on revenues of $15.1 million for the third quarter of 2007 compared to income from continuing operations of $833,000 on revenues of $8.3 million for the comparable 2006 quarter. The 2007 revenue increase of $6.8 million is due to the inclusion of Posterloid, a designer and manufacturer of signage, which was acquired in February 2007, and a $2.1 million sales increase in Alpine’s scrap metal reprocessing operations. The Company sold 2.8 million pounds of recovered metal in the 2007 third quarter compared to 2.2 million pounds in the comparable 2006 quarter. Reprocessing volume was 5.6 million pounds in the quarter compared to 6.3 million pounds in the 2006 quarter.
Alpine’s third quarter 2007 gross profit and selling, general and administrative expenses increased due primarily to the inclusion of Posterloid. The 2007 quarter also includes income of $1.2 million representing Alpine’s share of the earnings of its 52% owned Israeli affiliate, Synergy Cables Ltd. (“SCL”), which is accounted for on the equity method.
Income from continuing operations for the nine months ended September 30, 2007 was $1.3 million on revenues of $38.7 million compared to income from continuing operations of $0.9 million on revenues of $18.9 million for the nine months ended September 30, 2006. The 2007 revenue increase of $19.8 million is due to the inclusion of Posterloid since its acquisition in February 2007 and a $10.4 million increase in revenues of the Company’s scrap metal reprocessing operations. Comparative income from continuing operations improved by $0.4 million primarily through Alpine’s recording of $2.6 million, representing its share of the net income of SCL. The nine months ended September 2006 includes a gain of $742,000 on the sale of stock of an affiliate.
Steven S. Elbaum, Chairman and Chief Executive Officer, commented, “At Wolverine Tube, Inc. (“Wolverine”) continued progress was made in strengthening and repositioning that company. During the third quarter, Wolverine received cash proceeds of $28.0 million from a completed rights offering. Alpine anticipates exercising its option to purchase $4.6 million in additional Wolverine convertible preferred stock pursuant to a “top-up” option. Last month’s announcement by Wolverine of the closure of its Decatur, AL and Booneville, MS plumbing tube manufacturing facilities underscores a business model transition away from lower margin commodity products toward a focus on value-added, higher performance products. Wolverine reported $42 million in EBITDA for the nine months ended September 30, 2007 and is improving its competitiveness and focus as it enters 2008. Synergy Cables Ltd. had a profitable third quarter and earnings before interest, taxes and depreciation of $6.2 million for the quarter and $17 million for the nine months ended September 30, 2007. Posterloid recorded strong sales and orders during the third quarter along with solid increases in EBITDA and profitability.”
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. (APNI.PK) has substantial experience in operating and actively managing companies in which it invests capital. Alpine has focused on industrial and other businesses that are underperforming, experiencing financial constraints and will benefit from operational improvements, consolidation and an improved capital structure. Alpine has actively invested in and operated leading domestic and global manufacturers of specialty materials, coatings, wire and cable products and electronic components.