DALLAS, April 15, 2011 /PRNewswire/ -- The Hallwood Group
Incorporated (NYSE Amex-HWG) today reported results for the fourth
quarter and year ended December 31,
2010.
For the fourth quarter, Hallwood reported a net loss of
$573,000, or $0.38 per share, compared to net income of
$6.5 million, or $4.24 per share, in 2009.
For the year, Hallwood reported net income of $9.9 million, or $6.48 per share, compared to net income of
$17.1 million, or $11.18 per share, in 2009.
Following is a comparison of results for the 2010 and 2009
periods:
Operating Income (Loss). For the 2010 and 2009 fourth
quarters, operating income (loss) was $(558,000) and $8.8
million, on revenues of $36.5
million and $51.4 million,
respectively.
For the 2010 and 2009 years, operating income was $16.2 million and $25.6
million, on revenues of $168.4
million and $179.6 million,
respectively. The decreases were principally due to reduced sales
of specialty fabric to U.S. military subcontractors as a result of
reduced orders from the military to Brookwood's customers.
Military sales represented 57.6% and 67.9% for the 2010 fourth
quarter and annual periods, respectively, compared to 72.5% and
72.5% for the 2009 fourth quarter and annual periods, respectively.
Sales of other products in the commercial market segment, sailcloth
and flag products increased in the 2010 periods as compared to 2009
sales levels. The gross profit margin was 25.2% in 2010 versus
28.3% in 2009. The lower gross profit margin for 2010 was
attributed to the lower sales volume, changes in product mix and
higher royalty costs, partially offset by manufacturing
efficiencies such as reductions in material working loss.
Other Income (Loss). Other income (loss) consists of
interest expense partially offset by interest and other income.
For the fourth quarter, other income (loss) was a loss of
$92,000 in 2010, compared to a loss
of $78,000 in 2009.
For the year, other income (loss) was a loss of $291,000, compared to a loss of $216,000 in 2009.
Income Tax Expense. For the 2010 fourth quarter, the
income tax benefit was $77,000, which
included a current federal tax benefit of $579,000, a noncash deferred federal tax expense
of $65,000, and a current and
deferred state tax expense of $9,000
and $428,000, respectively.
For the 2009 fourth quarter, the income tax expense was
$2.2 million, which included a
current federal tax expense of $4.1
million, a noncash deferred federal tax benefit of
$1.6 million, and a state tax benefit
of $235,000.
For the 2010 year, the income tax expense was $6.0 million, which included a current federal
tax expense of $4.6 million, a
noncash deferred federal tax expense of $239,000, and current and deferred state tax
expense of $740,000 and $428,000, respectively.
For the 2009 year, the income tax expense was $8.4 million, which included a current federal
tax expense of $5.4 million, a
noncash deferred federal tax expense of $2.5
million, current and deferred state tax expense (benefit) of
$1,144,000 and $(429,000), respectively, and a foreign tax
benefit of $280,000.
The following table sets forth
selected financial information for the quarters and years ended
December 31, 2010 and 2009.
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THE HALLWOOD
GROUP INCORPORATED
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(In
thousands, except per share amounts)
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Quarter
Ended
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Year
Ended
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December
31,
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December
31,
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2010
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2009
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2010
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2009
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Revenue
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$36,506
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$51,388
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$168,354
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$179,554
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Operating income
(loss)
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$(558)
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$8,776
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$16,156
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$25,632
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Other income (loss)
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(92)
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(78)
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(291)
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(216)
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Income (loss) before income
taxes
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(650)
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8,698
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15,865
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25,416
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Income tax expense
(benefit)
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(77)
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2,234
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5,985
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8,361
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Net income (loss)
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$(573)
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$6,464
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$9,880
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$17,055
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PER COMMON SHARE:
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BASIC
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Net income
(loss)
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$(0.38)
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$4.24
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$6.48
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$11.18
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Weighted average
shares outstanding
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1,525
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1,525
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1,525
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1,525
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DILUTED
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Net income
(loss)
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$(0.38)
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$4.24
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$6.48
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$11.18
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Weighted average
shares outstanding
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1,525
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1,525
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1,525
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1,525
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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.
SOURCE The Hallwood Group Incorporated