ASPHALT MAKER EXPECTS SMOOTH GOING.Byline: Deborah Adamson Daily News Staff Writer Huntway Partners L.P. reported a second consecutive annual net income after years of losses. The Newhall-based maker of liquid asphalt asphalt (ăs`fôlt, –fălt), brownish-black substance used commonly in road making, roofing, and waterproofing. Chemically, it is a natural mixture of hydrocarbons. says its improved earnings are the result of debt restructuring Debt Restructuring A method used by companies with outstanding debt obligations to alter the terms of the debt agreements in order to achieve some advantage. Notes: , lower operating and interest costs, and an improving economy. ``We're hoping that as the California economy improves . . . that margins on asphalt products will start to increase as well,'' said Warren Nelson, the company's chief financial officer. ``We think demand for asphalt will improve in 1998.'' Huntway Partners, a publicly traded partnership Publicly Traded Partnership A limited partnership that also has interests traded in the equity securities market. Notes: This is also known as a master limited partnership. See also: Master Limited Partnership, Partnership, Public Company , also hopes to convert into a corporation by April. At the time, its units will become common shares. The company wiped out $71.7 million in debt after emerging from a prepackaged bankruptcy Prepackaged Bankruptcy When acompany prepares a reorganization plan that is negotiated and voted on by creditors and shareholders before the company actually files for bankruptcy. in December 1996. However, in October 1997, it issued $21.8 million in convertible debt. Total debt now stands at $37.8 million. For the fourth quarter, Huntway reported a net income of $35,000 (less than a cent a share) on revenues of $25.5 million. That compares with a net income of $56 million ($3.20) on revenues of $25 million a year ago. But 1996 results include a $58.7 million extraordinary gain related to the restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). of debt and a $2.18 million one-time charge in refinancing Refinancing An extension and/or increase in amount of existing debt. costs. Without the one-time gain and charge, Huntway would have reported a loss from operations of $565,000 (3 cents) for the 1996 fourth quarter. |
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