Empire Resources Announces Third Quarter Operating Results

Date : 11/13/2006 @ 4:26PM
Source : PR Newswire
Stock : Empire Res (ERS)
Quote : 2.06  -0.19 (-8.44%) @ 3:00PM
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Empire Resources Announces Third Quarter Operating Results

FORT LEE, N.J., Nov. 13 /PRNewswire-FirstCall/ -- Empire Resources, Inc. (AMEX:ERS), a distributor of value added, semi-finished aluminum products, today announced net income for the three and nine months ended September 30, 2006 of $1,968,000 and $7,061,000 as compared to $2,388,000 and $7,134,000 for the same periods in 2005. Net income for the three and nine months ended September 30, 2006 decreased to $.20 and $.70 per share on a fully diluted basis as compared to $.24 and $.72 per share on a fully diluted basis for the same periods in 2005.

Net sales for the three and nine months were $106,261,000 and $316,168,000 as compared to $90,777,000 and $260,237,000 for the same periods in 2005. Net sales increased 17% for the three month period and 21% for the nine month period as compared to the prior year.

Empire Resources, Inc., is a distributor of a wide range of semi-finished aluminum products to customers in the transportation, automotive, housing, appliance and packaging industries in the U.S., Canada, Australia, New Zealand and Europe. It maintains supply contracts with aluminum mills in various parts of the world.

This press release contains forward-looking statements. Such statements involve various risks that may cause actual results to differ materially. These risks include, but are not limited to, the ability of the company to grow internally or by acquisition and to integrate acquired businesses, not being able to improve operating margins and efficiencies, changing industry and competitive conditions, and other risks referred to in the Company's registration statements and periodic reports filed with the Securities and Exchange Commission.

Unaudited Condensed Consolidated Statements of Income In thousands, except per share amounts

Three Months Ended Nine Months Ended September 30, September 30, 2006 2005 2006 2005

Net sales $106,261 $90,777 $316,168 $260,237 Cost of goods sold 98,839 83,494 292,256 239,492

Gross profit 7,422 7,283 23,912 20,745 Selling, general and administrative expenses 2,717 2,247 8,102 6,692

Operating income 4,705 5,036 15,810 14,053 Interest expense 1,557 1,202 4,509 2,638

Income before income taxes 3,148 3,834 11,301 11,415 Income taxes 1,180 1,446 4,240 4,281

Net income $1,968 $2,388 $7,061 $7,134

Weighted average shares outstanding: Basic 9,785 9,743 9,771 9,654

Diluted 10,058 10,045 10,069 9,932

Earnings per share: Basic $0.20 $0.25 $0.72 $0.74

Diluted $0.20 $0.24 $0.70 $0.72

DATASOURCE: Empire Resources, Inc.

CONTACT: David Kronfeld of Empire Resources, Inc., +1-917-408-1940, or

Web site: http://www.empireresources.com/

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