DALLAS, May 16, 2011 /PRNewswire/ -- The Hallwood Group
Incorporated (NYSE Amex-HWG) today reported results for the first
quarter ended March 31, 2011.
For the 2011 first quarter, the Company had a net loss of
$1.0 million, or $(0.65) per share, compared to net income of
$5.3 million, or $3.44 per share, in 2010, on revenue of
$26.8 million and $47.2 million, respectively.
Following is a comparison of results for the 2011 and 2010
periods:
Operating Income. The operating income (loss) for the
2011 and 2010 first quarters, primarily from textile products
operations, was $(1.6) million and
$8.2 million, respectively. The
decrease was principally due to a decrease in sales of specialty
fabric to U.S. military contractors as a result of decreases in
orders from the military to Brookwood's customers, partially offset
by increased sales in its other market segments. Military sales
accounted for $10.2 million and
$34.7 million in the 2011 and 2010
first quarters, which represented 38.0% and 73.5% of Brookwood's
sales, respectively. Military sales have historically been cyclical
in nature. Orders for military goods in the 2010 fourth quarter and
2011 first quarter declined significantly, which affected the 2011
first quarter military sales. Brookwood has noted an increased
level of military orders in late March and April, that will be
processed in the remaining 2011 periods, however, not to the same
level as the first half of 2010.
Other Income (Loss). Other income (loss) consists of
interest expense, and interest and other income. For the 2011 first
quarter, other income (loss) was a loss of $9,000, compared to a loss of $60,000 in 2010, principally due to reduced
interest expense on Brookwood's revolving credit facility.
Income Tax Expense (Benefit). For the 2011 first quarter,
the income tax benefit was $584,000,
which included a $590,000 current
federal tax benefit and a $6,000
state tax expense, compared to the 2010 first quarter income tax
expense of $2.9 million, which
included a $2.6 million current
federal tax expense and a $313,000
state tax expense.
The following table sets forth selected financial information
for the three months ended March 31,
2011 and 2010.
|
THE HALLWOOD
GROUP INCORPORATED
|
|
|
(In
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
|
March
31,
|
|
|
|
|
|
|
2011
|
2010
|
|
|
|
|
|
|
Revenue
|
$26,769
|
$47,150
|
|
|
|
|
|
|
Operating income
(loss)
|
$ (1,571)
|
$ 8,181
|
|
|
Other income (loss)
|
(9)
|
(60)
|
|
|
|
|
|
|
Income (loss) before income
taxes
|
(1,580)
|
8,121
|
|
|
Income tax expense
(benefit)
|
(584)
|
2,871
|
|
|
|
|
|
|
Net income (loss)
|
$
(996)
|
$
5,250
|
|
|
|
|
|
|
PER COMMON SHARE
|
|
|
|
|
BASIC:
|
|
|
|
|
Net income
(loss)
|
$
(0.65)
|
$
3.44
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
1,525
|
1,525
|
|
|
|
|
|
|
DILUTED:
|
|
|
|
|
Net income
(loss)
|
$
(0.65)
|
$
3.44
|
|
|
|
|
|
|
Weighted
average shares outstanding
|
1,525
|
1,525
|
|
|
|
|
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