Elah Holdings Inc fka RELYQ (ELLH)

[Enterprising Investor]

Real Industry Reports Third Quarter 2015 Results (11/09/15)

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

Third Quarter 2015 Highlights

• Segment Adjusted EBITDA of $22.8 million on $338.6 million in revenues

• Operating profit improved by $4.6 million over second quarter 2015

• Basic and diluted earnings per share of $0.02

Management Commentary

Craig Bouchard, Real Industry’s Chairman and CEO, stated, “In a challenging macroeconomic environment, with the LME and regional premiums hitting new six-year lows, our third quarter pleasantly surprised us on the upside. Real Alloy exceeded targets in operating margins and EBITDA. Our tolling business performed well, and scrap spreads remained reasonably stable for much of the period. Our European operations outperformed.

“We continue to be ahead of budget in our Six Sigma-led Real Alloy transition effort. Productivity improvements were notable. Our 1,700 talented employees embrace the challenge of seeking continuous improvement.

“While it is difficult to predict whether the market will digress or improve from here, we actively plan for and are ready for both possibilities.

“Importantly, it’s clear that turbulence creates an opportunity to grow our platform. Low energy prices, low interest rates, availability of skilled labor and uncertainty surrounding the economic health of China and other developed foreign markets have opened a rare window to acquire valuable assets at reasonable multiples. We are in active pursuit of these opportunities.”

Third Quarter 2015 Results

Real Industry reported revenues of $338.6 million in the third quarter of 2015 driven by the Company’s two reporting segments, Real Alloy North America (RANA) and Real Alloy Europe (RAEU), which invoiced an aggregate 300,000 metric tons during the quarter. Compared to the second quarter of 2015 and the prior-year period, volumes were down by less than 1% globally with RAEU delivering higher performance in both periods and RANA performing slightly weaker. The six-year lows in prime aluminum prices, which directionally impact the price of aluminum scrap, and the higher proportion of revenues from Real Alloy’s tolling business resulted in a larger decrease of revenues than the two comparable periods.

Despite the decreased volume and revenue, Adjusted EBITDA at Real Alloy was flat with the second quarter of 2015 at $22.8 million. Productivity initiatives and a stable scrap spread environment allowed for improvements in profitability per ton. Gross profit was $25.4 million, and gross margin was 7.5%, which compares to 5.8% in the 2015 second quarter. Adjusting for the impact of purchase accounting, which increased cost of sales, gross margin would have been 7.9%, compared to 6.7% in the second quarter of 2015, similarly adjusted.

Operating costs in corporate and other were $3.2 million during the quarter, a decrease of $0.9 million compared to the 2015 second quarter primarily due to lower compensation and professional fees.

Real Industry reported net earnings attributable to the Company of $1.2 million in the third quarter of 2015.

Balance Sheet

At September 30, 2015, Real Industry’s cash and cash equivalents were $44.9 million, total debt was $349.7 million, and stockholders’ equity was $144.8 million.

Conference Call and Webcast Information

The Company will host a conference call at 1:00 p.m. ET on Monday, November 9, 2015, during which management will discuss the results of the third quarter ended September 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/q3-2015. 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/20151109005637/en/Real-Industry-Reports-Quarter-2015-Results