FOR IMMEDIATE RELEASE:
Steven S. Elbaum
Chairman and Chief Executive Officer
- THE ALPINE GROUP, INC. POSTS FIRST QUARTER 2007 RESULTS -
EAST RUTHERFORD, N.J., June 1, 2007, Market Wire/ -- The Alpine Group, Inc. ("Alpine") (APNI.PK) today posted its unaudited financial statements for the first quarter of 2007 to its Website (www.alpine-group.net).
Alpine recorded a first quarter loss from continuing operations of $0.3 million on revenues of $11.0 million compared to a loss of $0.6 million on revenues of $4.8 million for the same period in 2006. The comparative improvement was primarily due to Alpine’s share of the improved earnings of its 52% owned Israeli affiliate, Synergy Cables Ltd. (“SCL”) (formerly Superior Cables Ltd.), which is accounted for on the equity method.
Alpine’s operating revenues are primarily derived from its scrap metal reprocessing operations, which primarily recovers copper. The Company sold 3.5 million pounds of recovered metal in the 2007 quarter compared to 2.1 million pounds in the comparable period of 2006. Reprocessing volume was 4.9 million pounds in the first quarter compared to 4.3 million pounds in the 2006 quarter. Mr. Steven S. Elbaum, Alpine’s Chairman and Chief Executive Officer, stated that “Alpine’s first quarter operating results successfully reflect its objectives of acquiring ownership or management control of long term investment opportunities, enhancing the value of existing investments and maintaining a reasonable net overhead structure to advance its investment and business development activities.”
First quarter 2007 highlights:
Wolverine Tube, Inc.
During February 2007, Alpine and a co-investor purchased $10 million and $40 million, respectively, of newly issued shares of Series A 8% Convertible Preferred Stock of Wolverine and secured majority control of Wolverine’s Board of Directors. Steven Elbaum was appointed Chairman and Harold Karp was appointed President and Chief Operating Officer. Alpine agreed to provide management and other services to Wolverine for an initial period of two years in consideration of an annual fee of $1.3 million.
Upon conversion of the convertible preferred, Alpine would own 15% of Wolverine’s outstanding common stock. Additionally, Wolverine granted Alpine an option to purchase up to 6% of the outstanding shares of Wolverine on a fully diluted basis. Alpine currently anticipates a further investment in Wolverine contemporaneously with the completion of a planned common stock rights offering by Wolverine in the next 60-90 days. This additional investment will increase Alpine’s ownership, including options, to 25% of Wolverine’s common stock on a fully diluted basis.
Wolverine is a leading manufacturer of copper and copper alloy tubular products fabricated tube assemblies, metal joining and specialty alloy materials, with 2006 revenues of $1.4 billion.
Acquisition of Posterloid Corporation
During February 2007, Alpine acquired 100% of the capital stock of Posterloid Corporation for a purchase price of $2.9 million in cash. Posterloid is a leading designer and manufacturer of menu boards and signage for the food service industry and financial institutions.
SCL common stock rights offering and financing
During March 2007, SCL completed a public offering of units consisting of newly issued convertible and non-convertible bonds and completed a common stock rights offering which was fully subscribed by its existing stockholders including Alpine. Gross proceeds from the completed to date Units’ and rights’ offerings were approximately $36 million. The proceeds of the offerings were used to reduce and refinance short term debt.
Alpine has posted its audited statements for the year ended December 31, 2006. These statements account for SCL under the equity method, which is consistent with prior periods and a more informative and meaningful presentation of Alpine’s financial statements than a full consolidation of SCL’s results and financial statements.
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.