Steven S. Elbaum
Chairman and Chief Executive Officer
- THE ALPINE GROUP, INC. POSTS FIRST QUARTER 2009 RESULTS -
EAST RUTHERFORD, N.J., July 20, 2009, Market Wire/ -- The Alpine Group, Inc. ("Alpine") (APNI.PK) today posted its quarterly financial statements for the three month period ended March 31, 2009 to its Website (www.alpine-group.net).
Alpine had a loss from continuing operations of $0.4 million for the first quarter of 2009 compared to income of $0.5 million (before non-cash charges of $1.2 million for a LIFO inventory adjustment and hedge mark-to-market) for the same quarter in 2008. The comparative decrease in income from continuing operations in the first quarter of 2009 was primarily due to a decrease in earnings at Posterloid Corporation and accrual of dividends related to Alpine’s investment in Wolverine Tube, Inc.
Revenues from continuing operations were $6.7 million for the first quarter of 2009, a decrease of $8.7 million compared to revenues of $15.4 million for the same quarter in 2008. The decrease was due to revenue declines at its Exeon and Posterloid subsidiaries. The decrease in revenues at Exeon was due primarily to comparatively lower copper prices during the first quarter of 2009 ($1.57/lb.) compared to the first quarter 2008 ($3.53/lb). The decline in copper prices did not have a significant impact on Exeon’s earnings. Posterloid’s revenues declined 57% from a particularly strong 2008 and also reflected a slowing of growth in franchise locations resulting from overall decline in the United States economy.
Steven S. Elbaum, Alpine’s Chairman and Chief Executive Officer, stated that “Alpine’s investments in Wolverine Tube and Synergy Cables are significantly and adversely affected by the economic downturn. Wolverine revenues in some key product lines are down 40-50% from prior year levels. Nonetheless, we believe that these comparative declines reflect similar declines and inventory destocking experienced by key customers and not market share losses. In the case of Wolverine, it successfully concluded an exchange offer that extended the maturity of all of its debt until 2012. While costly, this extension will hopefully take Wolverine through to a recovery in the economy and demand for its products. Wolverine has restructured, improved its competitiveness and is well positioned to strongly benefit from a recovery in the commercial markets and the development of new electronic cooling applications for new markets such as aerospace and power electronics. Synergy’s business will benefit greatly from, among other factors, the renewed availability of credit for infrastructure products in which power cable is used.
“While currently under substantial pressure due to the punishing downturn, we believe these businesses offer much potential for attractive value creation as part of a larger economic recovery. At the same time we are alert to opportunities for synergistic investments in complementary businesses or stand alone distressed investment opportunities where new ownership can add value”.
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.