SEPTEMBER 2010
                                        

Metalico sees continued improvement

Metalico, Inc. reported net income of $4.4 million and earnings of $0.10 per share for the quarter ended June 30, 2010, with continued increases in volume, revenues and operating income compared to the prior year quarter.

Sales were $144.6 million, an increase of $82.3 million, or 132 percent, over same-quarter 2009 results. Operating income for the 2010 second quarter was $6.7 million, compared to $2.8 million for the prior-year quarter. EBITDA (as defined below) increased by 67 percent to $10.7 million from $6.4 million for the same quarter in 2009.

Second quarter 2010 results include a non-cash fair value benefit for financial instruments of $2.1 million or $.04 per share compared with a $1.5 million expense or ($.04) per share in the prior year quarter.

Compared sequentially with the first quarter of 2010, sales and net income improved but several measures of operating performance declined.

  • Sales of $144.6 million increased by $10.5 million, or 8 percent, over $134.1 million.
  • Net income was $4.4 million, compared to net income of $3.5 million.
  • On a per-diluted-share basis, net income rose to $0.10, compared to $0.08 per share.
  • Operating income was $6.7 million, a decrease of $6.9 million, or 51 percent, from $13.6 million.
  • EBITDA was $10.7 million, a decrease of $6.9 million.
  • Unit volumes shipped decreased by 19 percent for ferrous scrap and remained flat for nonferrous scrap.
  • Platinum Group Metal (PGM) unit volumes were up by 9 percent.
  • Lead product shipments in the quarter rose by 32 percent.

The company said its higher sales were largely driven by strong operating results from its PGM business.

Prior Year’s Second Quarter Comparison: Year-over-year comparison to the second quarter of 2010 reflects substantially improved operating performance:

  • Sales increased to $144.6 million, an increase of $82.3 million, or 132 percent, over $62.3 million.
  • Operating income was $6.7 million, compared to operating income of $2.8 million, an increase of $3.9 million, or 139 percent.
  • Net income increased to $4.4 million, a 300 percent improvement from net income of $1.1 million.

Excluding corporate overhead charges, the company’s Scrap Metal segment reported $8.8 million in operating income in the 2010 second quarter compared to $2.7 million for the same period last year. The company’s Lead Fabrication segment reported an operating loss of $99,000 compared to operating income of $1.6 million in the prior-year period, also excluding corporate overhead charges.