Hallwood Group Reports Results for the Third Quarter and Nine Months Ended September 30, 2008
November 14 2008 - 5:40PM
PR Newswire (US)
DALLAS, Nov. 14 /PRNewswire-FirstCall/ -- The Hallwood Group
Incorporated (AMEX:HWG) today reported results for the third
quarter and nine months ended September 30, 2008. For the quarter,
Hallwood reported net income of $1.3 million, or $0.82 per share,
compared to a net loss of $367,000, or $(0.24) per share, in 2007.
For the nine months, Hallwood reported net income of $1.5 million,
or $0.98 per share, compared to a net loss of $8.3 million, or
$(5.44) per share, in 2007. The 2008 and 2007 nine month periods
included equity losses from the Company's Hallwood Energy, L.P.
affiliate in the amount of $12.1 million and $13.6 million,
respectively. Following is a comparison of results for the 2008 and
2007 periods: Operating Income. For the 2008 and 2007 third
quarters, operating income, primarily from textile products
operations, was $1.9 million and $1.2 million, on revenue of $35.6
million and $32.6 million, respectively. For the 2008 and 2007 nine
months, operating income was $15.7 million and $2.0 million, on
revenue of $126.7 million and $92.9 million, respectively. The
increases in revenue and operating income were primarily due to
higher military sales, which were $21.2 million and $81.1 million
for the three months and nine months ended September 30, 2008,
compared to $18.1 million and $46.6 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 third quarters, other income (loss) was a loss of
$109,000 and $1.5 million, respectively, including an equity loss
from its energy investment of $-0- in 2008, and $1.3 million in
2007. For the nine months, other income (loss) was a loss of $12.6
million and $14.1 million, respectively, including an equity loss
from its energy investment of $12.1 million in 2008 and $13.6
million in 2007. Income Tax Expense (Benefit). For the 2008 third
quarter, income taxes was an expense of $529,000, which included a
noncash deferred federal tax expense of $317,000, current federal
tax benefit of $109,000 and state tax expense of $321,000. For the
2007 third quarter, income taxes was an expense of $75,000, which
included a noncash deferred federal tax benefit of $168,000, and
state tax expense of $243,000. For the 2008 nine months, income
taxes was an expense of $1.6 million, which included a noncash
deferred federal tax expense of $438,000, current federal tax
benefit of $109,000 and state tax expense of $1.3 million. For the
2007 nine months, income taxes was a benefit of $3.8 million, which
included a noncash deferred federal tax benefit of $4.3 million,
and state tax expense of $469,000. The following table sets forth
selected financial information for the three months and nine months
ended September 30, 2008 and 2007. THE HALLWOOD GROUP INCORPORATED
(In thousands, except per share amounts) Three Months Ended Nine
Months Ended September 30, September 30, 2008 2007 2008 2007
Revenue $35,568 $32,576 $126,689 $92,949 Operating income $ 1,893 $
1,248 $ 15,729 $ 2,043 Other income (loss) (109) (1,540) (12,615)
(14,097) Income (loss) before income taxes 1,784 (292) 3,114
(12,054) Income tax expense (benefit) 529 75 1,623 (3,790) Net
income (loss) $ 1,255 $(367) $1,491 $(8,264) PER COMMON SHARE:
BASIC Net income (loss) $ 0.83 $(0.24) $ 0.98 $(5.44) Weighted
average shares outstanding 1,521 1,521 1,521 1,518 DILUTED Net
income (loss) $ 0.82 $(0.24) $ 0.98 $(5.44) Weighted average shares
outstanding 1,523 1,521 1,523 1,518 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: The Hallwood Group Incorporated CONTACT:
Melvin Melle, Chief Financial Officer of The Hallwood Group
Incorporated, 1-800-225-0135 or +1-214-528-5588
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