Elah Holdings Inc fka RELYQ (ELLH)

[Enterprising Investor]

Real Industry Reports Second Quarter 2015 Results (8/17/15)

SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Real Industry, Inc. (NASDAQ:RELY) (“Real Industry” or the “Company”) today reported financial results for its second quarter ended June 30, 2015.

Second Quarter 2015 Highlights

• Revenues of $368.7 million

• Real Alloy Adjusted EBITDA of $22.9 million

• Multimillion dollar reduction in repurchase reserve liability

Outlook

• During the quarter, Real Alloy achieved its operational and budgeted cash flow and Adjusted EBITDA objectives.

• Real Industry is actively pursuing accretive growth of its platform.

Management Commentary

Craig Bouchard, Real Industry’s Chairman and CEO, stated, “In a difficult macroeconomic environment, our recently acquired subsidiary Real Alloy produced one of its better financial quarters in recent years. Thanks and appreciation go out to our 1,700 hard-working employees. The Six Sigma-led transition effort remains ahead of budget and timeline. As to the future, declining commodity prices, including the significant drop in aluminum prices and regional premiums, create problems for others, but uncommon investment opportunities for us. We are active in our pursuit of several such opportunities.”

Second Quarter 2015 Financial Highlights

Real Industry reported revenues of $368.7 million in the second quarter of 2015, which were driven by the first full quarter of performance by the Company’s two reporting segments, Real Alloy North America and Real Alloy Europe. This compares to Real Alloy’s (while under the ownership of Aleris Corporation) revenues of $394.9 million in the second quarter of 2014. Globally volumes were slightly increased over the prior period; however, the decrease in revenues was primarily a result of a decrease in the price of scrap aluminum.

Gross profit was $21.3 million, and gross margin was 5.8%. Adjusting for the impact of purchase accounting, which increased cost of sales, gross margin would have been 6.7%.

Real Industry reported a net loss attributable to the Company of $10.9 million in the second quarter of 2015, which was impacted by a number of one-time events, including a $6.3 million noncash expense associated with a change in the fair value of the Company’s warrant liability; $3.5 million in costs related with the amortization of purchase accounting adjustments to inventories; but positively impacted by a $4.6 million reversal of the Company’s allowance for repurchase reserve liability in discontinued operations, which resulted from its reassessment of its repurchase reserve exposure in light of the final decision of the New York State Court of Appeals in ACE Securities Corp. v. DB Structured Products, Inc.

Balance Sheet

At June 30, 2015, Real Industry’s cash and cash equivalents were $38.5 million, total debt was $341.3 million, and stockholders’ equity was $140.4 million.

Conference Call and Webcast Information

The Company will host a conference call at 4:30 p.m. ET on Monday, August 17, 2015, during which management will discuss the results of the second quarter ended June 30, 2015.

The dial-in numbers are:
[phone] (Toll-free U.S. & Canada)
[phone] (International)

Participants may also access the live call via webcast at http://realindustryinc.equisolvewebcast.com/q2-2015. The webcast will be archived and accessible for approximately 30 days.

A replay will be available shortly after the call on the investor relations section of the Company’s website, www.realindustryinc.com, and will remain available for 90 days.

About Real Industry, Inc.

Real Industry is a North America-based holding company seeking to invest its capital in large, well-managed and consistently profitable businesses concentrated primarily in the United States industrial and commercial marketplace. Real Industry has significant capital resources, and federal net operating loss tax carryforwards of more than $900 million. For more information about Real Industry, visit its corporate website at www.realindustryinc.com.

http://www.businesswire.com/news/home/20150817006163/en/Real-Industry-Reports-Quarter-2015-Results#.VdI_gyGFOUk