Steven S. Elbaum
Chairman and Chief Executive Officer
- THE ALPINE GROUP, INC. POSTS SECOND QUARTER 2008 RESULTS -
EAST RUTHERFORD, N.J., September 2, 2008, Market Wire/ -- The Alpine Group, Inc. ("Alpine") (APNI.PK) today posted its quarterly financial statements for the three and six month periods ended June 30, 2008 to its Website (www.alpine-group.net).
Alpine had net income of $1.8 million for the second quarter of 2008 compared to $0.4 million for the second quarter of 2007. The 2008 quarter includes an after-tax gain of $4.0 million related to a litigation settlement recorded as income from discontinued operations. The loss from continuing operations of $2.2 million for the second quarter of 2008 compares to a gain of $0.6 million from continuing operations for the second quarter of 2007. The comparative decrease in income from continuing operations is due primarily to recording Alpine’s share of losses related to its equity ownership in Synergy Cables Ltd. ($1.4 million loss in the second quarter of 2008 compared to $1.0 million gain in 2007) and Wolverine Tube, Inc. ($1.2 million loss in the second quarter of 2008, the first period in which Alpine accounted for its investment in Wolverine on an equity basis).
Net income for the six months ended June 30, 2008 was $0.9 million compared to breakeven for the comparable period in 2007. The comparative increase reflects the litigation settlement and approximately $1.0 million in additional net income contributed by Alpine’s subsidiary, Posterloid Corporation, in the first half of 2008, offset by Alpine’s recording of its share of losses related to Synergy and Wolverine.
Revenues were $15.1 million for the second quarter ended June 30, 2008 compared to $12.5 million for the second quarter of 2007. The increase in revenues resulted from volume and copper price increases during the quarter at Exeon Inc. and Posterloid. Revenues for the six months ended June 30, 2008 were $30.4 million, compared to $23.6 million for the 2007 period, due primarily to volume increases at Posterloid.
Mr. Steven S. Elbaum, Chairman and Chief Executive Officer, commented that “second quarter results at Wolverine were negatively impacted by low volumes and Synergy Cables’ results were negatively impacted by a combination of volume shortfalls, foreign currency translation and volatile copper pricing. This was only partially offset by a relatively strong contribution from Exeon and Posterloid plus the contribution from a litigation settlement during the quarter.”
“Period operating results at Wolverine, which is undergoing an operational and financial restructuring, do not reflect the significant progress being made to transform Wolverine into a more productive, focused and durable competitor. As a result of asset dispositions, plant consolidation actions, expense and debt reductions and capital reallocations, we believe that Wolverine will be in good shape by the end of 2008 to operate profitably and build value for shareholders.”
“Synergy’s second quarter results were negatively impacted by a combination of dramatic appreciation of its Israeli based home currency against the US dollar and Euro, along with copper price volatility. Nonetheless, with the successful completion of the sale of its communications’ cable business and addition of a new CV line in its power cable plant, Synergy is well positioned and focused on profitable growth in the power cable markets.”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.