Empire Resources Announces Third Quarter Operating Results

Date : 11/14/2007 @ 6:31PM
Source : PR Newswire
Stock : Empire Resources, (ERS)
Quote : 2.04  -0.1101 (-5.12%) @ 8:00PM
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Empire Resources Announces Third Quarter Operating Results

FORT LEE, N.J., Nov. 14 /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, 2007 of $537,000 and $4,073,000 as compared to $1,968,000 and $7,061,000 for the same periods in 2006. Net income for the three and nine months ended September 30, 2007 decreased to $.05 and $.41 per share on a fully diluted basis as compared to $.20 and $.70 per share on a fully diluted basis for the same periods in 2006.

Net sales for the three and nine months of 2007 were $109,907,000 and $366,528,000 as compared to $106,261,000 and $316,168,000 for the same periods in 2006. Net sales increased 3% for the three month period and 16% for the nine month period as compared to the prior year.

Empire Resources, Inc is principally engaged in the purchase, sale and distribution of semi-finished aluminum products to a diverse customer base located throughout the United States and Canada, Europe, Australia and New Zealand. The Company also manufactures prime aluminum extruded products in its facility located in Baltimore, MD. Empire Resources, Inc. distributes a wide range of semi-finished aluminum products to customers in the distribution, transportation, automotive, housing, appliance and packaging industries in the U.S., Canada, Australia, New Zealand and Europe and 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, 2007 2006 2007 2006

Net sales $109,907 $106,261 $366,528 $316,168 Cost of goods sold 104,783 98,839 346,465 292,256

Gross profit 5,124 7,422 20,063 23,912 Selling, general and administrative expenses 2,313 2,717 7,537 8,102

Operating income 2,811 4,705 12,526 15,810 Interest expense 1,955 1,557 6,062 4,509

Income before income taxes 856 3,148 6,464 11,301 Income taxes 319 1,180 2,391 4,240

Net income $537 $1,968 $4,073 $7,061

Weighted average shares outstanding: Basic 9,790 9,785 9,790 9,771

Diluted 10,035 10,058 10,046 10,069

Earnings per share: Basic $0.05 $0.20 $0.42 $0.72

Diluted $0.05 $0.20 $0.41 $0.70

See Notes to Condensed Consolidated Financial Statements

DATASOURCE: Empire Resources, Inc.

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

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

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