Elah Holdings Inc fka RELYQ (ELLH)

[Enterprising Investor]

Real Industry Reports Fiscal 2016 Second Quarter Results (8/09/16)

Company to host conference call on August 10, 2016, at 1:00 p.m. EDT

SHERMAN OAKS, Calif.--(BUSINESS WIRE)--Real Industry, Inc. (NASDAQ: RELY) (“Real Industry” or the “Company”) today reported financial results for its fiscal second quarter ended June 30, 2016.

Second Quarter 2016 Highlights

• Revenues increased to $320.9 million from $309.4 million sequentially from the fiscal 2016 first quarter

• Net loss reduced by $8.6 million sequentially from the fiscal 2016 first quarter

• Segment Adjusted EBITDA of $20.9 million, up from $18.3 million sequentially from the fiscal 2016 first quarter

• Consolidated liquidity increased to $116.5 million at quarter end, of which $98.0 million relates to Real Alloy

Management Commentary

Craig Bouchard, Real Industry’s Chairman and CEO, stated, “We were pleased with the improved performance Real Alloy achieved in second quarter 2016. Adjusted EBITDA from the Real Alloy business was $20.9 million, which was in-line with expectations. SG&A expenses are beginning to show the positive impact of operating as a stand-alone business following the termination of the Transition Services Agreement with Aleris.

“While market demand remains resilient, we continue to monitor scrap spreads. Our focus is executing on continuous improvement across our 24 plant locations. The Real Alloy team has achieved lean and Six Sigma gains ahead of our original timeline, which helped drive EBITDA through the first half of 2016.”

Second Quarter 2016 Results

Real Industry reported revenues of $320.9 million, which was almost entirely driven by our Real Alloy business’ aggregate 294,000 metric tonnes invoiced in the second quarter of 2016. This compares to $368.6 million in revenues on an aggregate 304,000 metric tonnes invoiced in the second quarter of 2015. The year over year reduction in volume was primarily caused by lower toll business from customers that have elected to use more prime alloy in 2016 given low LME aluminum prices at the beginning of the year. Compared to the 2016 first quarter, revenue was higher by $11.4 million and volumes increased 0.6%, which was in line with expectations.

Adjusted EBITDA at Real Alloy was $20.9 million in the second quarter of 2016, or $71 per tonne, compared to $22.9 million of Adjusted EBITDA in the second quarter of 2015, or $75 per tonne, and to $18.3 million of Adjusted EBITDA, or $63 per tonne, in the first quarter of 2016. Segment gross profit was $22.2 million, and segment adjusted gross margin was 7.0% during the second quarter 2016, compared to $21.2 million, and adjusted gross margin of 6.7% in the second quarter of 2015 (each as adjusted for purchase accounting amortization).

Operating costs in corporate and other were $3.6 million during the quarter, a $0.5 million decrease from the second quarter of 2015, as a result of decreased expenses related to compensation and consulting fees.

Real Industry reported net loss attributable to the Company of $1.5 million in the second quarter of 2016, an $8.6 million improvement over the first quarter loss of $10.1 million. Net loss available to common stockholders was $2.2 million, or $0.07 per share.

Balance Sheet and Liquidity

As of June 30, 2016, Real Industry’s cash and cash equivalents were $40.2 million, total debt was $319.1 million, and stockholders’ equity was $132.2 million. The Company’s total liquidity was $116.5 million as of June 30, 2016, of which $98.0 million relates to Real Alloy.

Conference Call and Webcast Information

The Company will host a conference call at 1:00 p.m. EDT on Wednesday, August 10, 2016, during which management will discuss the results of operations for the second quarter ended June 30, 2016.

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/q2-2016. 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 take significant ownership stakes 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 U.S. federal net operating loss tax carryforwards of more than $870 million. For more information about Real Industry, visit its corporate website at www.realindustryinc.com.

http://www.businesswire.com/news/home/20160809006352/en/Real-Industry-Reports-Fiscal-2016-Quarter-Results