Steven S. Elbaum
Chairman and Chief Executive Officer
- THE ALPINE GROUP, INC. POSTS SECOND QUARTER 2010 RESULTS -
EAST RUTHERFORD, N.J., August 31, 2010, Market Wire/ -- The Alpine Group, Inc. ("Alpine") (APNI.PK) today posted its financial statements for the quarter ended June 30, 2010 to its Website (www.alpine-group.net).
For the three month period ended June 30, 2010 Alpine had net income of $0.2 million compared to a net loss of $1.6 million for the same period in 2009. The 2009 second quarter included a non cash loss of $1.3 million arising from Alpine’s equity interest in Synergy Cables Ltd. For the six month period ended June 30, 2010 Alpine had a net loss of $42,000 compared to a net loss of $2.0 million for the same period in 2009. The first half of 2009 included a non cash loss of $1.3 million arising from Alpine’s equity interest in Synergy Cables Ltd. The results reflect the continued improvement in Exeon’s scrap reclamation and metals’ operations offset by decreased earnings in Posterloid’s signage business.
Revenues increased 343% for the three months ended June 30, 2010 to $30.6 million compared to $6.9 million for the same period in 2009 and revenues increased nearly 300% for the six months ended June 30, 2010 to $53.7 million compared to $13.6 million for the same period in 2009. Revenues increased 609% and 522% at Exeon for the three and six month periods ended June 30, 2010, respectively, compared to the same periods in 2009. These increases for both periods were due to increased revenues in its scrap reclamation business and, to a larger extent, the implementation of a toll agreement that Exeon entered into with a subsidiary of Wolverine Tube, Inc. during the fourth quarter of 2009. The increase in revenues from its scrap reclamation business was due to higher average copper prices and higher volumes. Copper prices averaged $3.19 in the second quarter of 2010 compared to $2.15 in the same period in 2009 and $3.24 during the first half of 2010 compared to $1.86 for the comparable 2009 period. Scrap pounds sold increased by approximately 80% in the second quarter 2010 compared to 2009 and by over 60% for the six month period ended June 30, 2010 compared to the same period in 2009. At Posterloid revenues decreased by 38% and 36% for the comparative three and six month periods of 2010 compared to 2009. Posterloid’s revenues reflect the slowdown in growth of franchise locations and deferred remodels affecting its key customers and markets in the signage industry. This reflects the sharpest decline in Posterloid revenues in recent history and is due to the overall economic downturn and tightness in credit availability to support remodels.
Exeon’s operating income for the second quarter was nearly $1.0 million compared to a loss of $0.1 for the 2009 quarter. Posterloid’s operating income for the quarter was slightly negative compared to over $200,000 positive for the 2009 quarter. Corporate and other expenses for the 2010 quarter were approximately $500,000 or over 30% below the 2009 quarter of $757,000.
Steven S. Elbaum, Alpine’s Chairman and Chief Executive Officer, stated that “positive second quarter operating results reflect a continuing improvement in Exeon’s operations and results, favorable demand and pricing conditions for scrap and recycled metals offset by negative operating results at Posterloid due to weak overall market conditions. We expect Posterloid’s operations to improve significantly in the second half of 2010.”
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.