Metalico Inc. (MEA)

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METALICO TURNS PROFIT IN SECOND QUARTER

http://ih.advfn.com/p.php?pid=nmona&article=63237062


CRANFORD, NJ, August 13, 2014 – Metalico, Inc. (NYSE MKT: MEA) reported net income of $300,000 or $.01 per share, for the second quarter of 2014, compared to a net loss of $2.7 million or $.06 loss per share for the same period in the prior year.

The Company posted sales of $142 million for the June 2014 quarter, compared to $130 million for the 2013 second quarter. The current year period was principally impacted by higher scrap volumes, higher ferrous selling prices and a favorable non-ferrous product mix. Lead product selling prices rose, while unit shipments were lower versus Q2 of 2013.

Metalico’s Scrap Metal Recycling segment returned to profitability, generating $3.5 million before corporate overhead of $1.3 million. The Lead Fabricating segment continued to report strong results with $822,000 operating income before corporate overhead of $165,000. The quarter saw significant improvement in consolidated operating income to a gain of $2.7 million from a loss of $2 million in the same quarter in 2013.

Prior Year’s Second Quarter Comparison

Year-over-year second quarter comparisons reflect improved financial results on increased volumes and selling prices for most commodities:

• Sales rose 9% to $142 million from $130 million.
• Operating income improved by $4.7 million to $2.7 million from an operating loss of $2 million.
• Net income of $300,000 was up from a net loss of $2.7 million.
• Net income per share of $0.01 compares to a loss per share of $0.06.
• EBITDA rose by $5.3 million to $7 million from $2.7 million.
• Non-ferrous unit volume shipments jumped 28% to a record 56.6 million pounds
• Ferrous volume rose by 9%, while lead product shipments fell 20%
Commenting on the results for the quarter, Carlos E. Agüero, Metalico’s President and Chief Executive Officer, said, “Our results confirm business improvement on multiple fronts. We continue to maintain disciplined scrap buying practices which has increased metal margins. Ferrous shipments were the second highest ever and non-ferrous shipments surpassed our previous record by a significant quantity despite unimpressive commodity selling prices.”

He added, “We are also seeing reduced commodity selling price volatility, increased scrap flows and more rational scrap buying decisions by competitors throughout our markets, resulting in improving metal margins. These positive developments have carried over into the third quarter and hopefully will remain in place through the remainder of the year.”