EAST RUTHERFORD, NJ--(Marketwire - August 16, 2010) - The Alpine Group, Inc. ("Alpine") (
For the three month period ended March 31, 2010 Alpine had a net loss of $0.3 million compared to a net loss of $0.4 million for the same period in 2009. The reduced loss compared to 2009 was due primarily to continued improvement in Exeon's scrap reclamation and metals' operations offset by decreased earnings in Posterloid's signage business.
Revenues increased 244% for the three months ended March 31, 2010 to $23.1 million compared to $6.7 million for the same period in 2009. Revenues increased 433% at Exeon due to increased revenues in its scrap reclamation business and to a larger extent the impact of a new 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 $3.28 in the first quarter of 2010 compared to $1.57 in the same period in 2009. Scrap pounds sold increased by approximately 50% in the 2010 period compared to 2009. At Posterloid the 34% decrease in comparative first quarter 2010 revenues reflects 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 current quarter was $310,000 compared to ($137,000) for the 2009 quarter. Posterloid's operating income for the quarter was slightly negative compared to $300,000 positive for the 2009 quarter. Corporate and other expenses for the 2010 quarter were $539,000 or 30% below the 2009 quarter of $758,000.
The delay in the posting of first quarter results was due primarily to the full impact of transition accounting for the full implementation of Exeon's operations under the aforementioned toll agreement. We anticipate release of Alpine's second quarter results within the next several weeks.
Steven S. Elbaum, Alpine's Chairman and Chief Executive Officer, stated that "Exeon has commendably improved the operating profitability of its base scrap reclamation business and has successfully concluded a toll agreement with Wolverine and related financing to support its operations under the toll agreement. This will significantly increase Exeon's profitability and return on capital allocated to its business. The comparative decline in Posterloid's results is directly due to the extreme downturn and credit tightening, especially as it impacts small franchisees and commercial construction markets for stadiums, airports and other signage users. We fully expect this trend to reverse in the future and during the second quarter Posterloid was awarded one of the larger menuboard signage contracts in its recent history, with deliveries to begin in the third quarter and continuing through the first half of next year.
"As part of an agreement to significantly extend debt maturities at Synergy Cables, Ltd., Alpine plans to make a further $2 million investment in Synergy in the third quarter through the form of a 10% convertible loan. Synergy's operations have recently improved and reflect comparative and sequential improvements in revenues, volumes and operating profitability. Recently, it was competitively awarded and shipped land based medium voltage cable related to two offshore wind farms in the U.K. and has earned a competitive advantage for short lead time delivery of quality higher voltage cabling.
"Wolverine Tube continues to struggle through the economic downturn. A significant part of its business is geared to new commercial construction, which is decidedly soft everywhere except Asia. It participates in the Asian market through a joint venture that produces copper tubing for commercial chillers. We expect that Wolverine will recapitalize at some point to deleverage, and we hope to maintain an economic interest in the business such as to be able to benefit in any recovery of this business."
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. (