Hallwood Group Reports Results for the Second Quarter and Six Months Ended June 30, 2008
August 14 2008 - 5:42PM
PR Newswire (US)
DALLAS, Aug. 14 /PRNewswire-FirstCall/ -- The Hallwood Group
Incorporated (AMEX:HWG) today reported results for the second
quarter and six months ended June 30, 2008. For the quarter,
Hallwood reported a net loss of $1.3 million, or $0.87 per share,
compared to a net loss of $573,000, or $0.38 per share, in 2007.
For the six months, net income was $236,000, or $0.15 per share,
compared to a net loss of $7.9 million, or $5.21 per share, in
2007. The 2008 and 2007 six month results included an equity loss
from the Company's Hallwood Energy, L.P. affiliate in the amount of
$12.1 million and $12.4 million, respectively. Following is a
comparison of results for the 2008 and 2007 periods: Operating
Income. For the 2008 and 2007 quarters, operating income, primarily
from textile products operations, was $7.6 million and $1.4
million, on revenue of $47.1 million and $32.1 million,
respectively. For the 2008 and 2007 six months, operating income
was $13.9 million and $795,000, on revenue of $91.1 million and
$60.4 million, respectively. Increased revenue and operating income
were primarily due to higher military sales, which were $32.0
million and $60.1 million for the three months and six months ended
June 30, 2008, compared to $16.7 million and $28.7 million in 2007,
respectively. Other Income (Loss). Other income (loss) consists of
equity losses from the Company's minority investment in its
Hallwood Energy, L.P. affiliate, interest expense, and interest and
other income. For the 2008 and 2007 second quarters, other income
(loss) was a loss of $9.3 million and $2.0 million, including an
equity loss from its energy investment of $9.2 million in 2008 and
$1.9 million in 2007, respectively. For the 2008 and 2007 six
months, other income (loss) was a loss of $12.5 million and $12.6
million, respectively, including an equity loss from its energy
investment of $12.1 million and $12.4 million, respectively. Income
Tax Expense (Benefit). For the 2008 second quarter, the income
taxes was a benefit of $372,000, which included a non cash deferred
federal tax benefit of $686,000 and state tax expense of $314,000.
For the 2007 second quarter, the income taxes was a benefit of
$68,000, which included a non cash deferred federal tax benefit of
$297,000 and state tax expense of $229,000. For the 2008 six
months, income taxes was an expense of $1.1 million, which included
a non cash deferred federal tax expense of $121,000, and state tax
expense of $973,000. For the 2007 six months, income taxes was a
benefit of $3.9 million, which included a non cash deferred federal
tax benefit of $4.1 million, a non cash deferred state tax benefit
of $43,000 and current state tax expense of $269,000. The following
table sets forth selected financial information for the three
months and six months ended June 30, 2008 and 2007. THE HALLWOOD
GROUP INCORPORATED (In thousands, except per share amounts) Three
Months Ended Six Months Ended June 30, June 30, 2008 2007 2008 2007
Revenue $47,134 $32,065 $91,121 $60,373 Operating income $ 7,614 $
1,380 $13,836 $795 Other income (loss) (9,316) (2,021) (12,506)
(12,557) Income (loss) before income taxes (1,702) (641) 1,330
(11,762) Income tax expense (benefit) (372) (68) 1,094 (3,865) Net
income (loss) $(1,330) $(573) $236 $(7,897) PER COMMON SHARE: BASIC
Net income (loss) $(0.87) $(0.38) $0.16 $(5.21) Weighted average
shares outstanding 1,521 1,517 1,521 1,517 DILUTED Net income
(loss) $(0.87) $(0.38) $0.15 $(5.21) Weighted average shares
outstanding 1,521 1,517 1,523 1,517 Certain statements in this
press release may constitute "forward-looking statements" which are
subject to known and unknown risks and uncertainties including,
among other things, certain economic conditions, competition,
development factors and operating costs that may cause the actual
results to differ materially from results implied by such
forward-looking statements. These risks and uncertainties are
described in greater detail in the Company's periodic filings with
the SEC. DATASOURCE: Hallwood Group Incorporated CONTACT: Melvin
Melle, Chief Financial Officer of Hallwood Group Incorporated,
1-800-225-0135, +1-214-528-5588
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