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HORSEHEAD RESOURCE DEVELOPMENT REPORTS SECOND QUARTER RESULTS

 NEW YORK, Aug. 12 /PRNewswire/ -- Horsehead Resource Development Company, Inc. (NASDAQ: HHRD) reported net income for its second quarter ended June 30, 1993 of $1.8 million, or 5 cents per share, versus $3.8 million, or 11 cents per share, in 1992's second quarter.
 Net income for the first six months ended June 30, 1993 was $4.4 million, or 12 cents per share, versus $6.9 million, or 19 cents per share in 1992's first half before the effects of adopting FAS 106.
 The decline in income was attributable to lower zinc prices which were offset in part by higher service fee revenues. Year-to-year average zinc prices declined by 17 cents (or 28 percent) in the quarter and 12 cents (or 20 percent) for the half year.
 The outlook for the remainder of the year is mixed. Zinc prices remain depressed in the face of very large exports from Russia and other CIS countries, which traditionally have been importers, and continued surplus inventories particularly on the London Metal Exchange. However, service fee revenues are expected to remain above last year's level.
 HRD is a leader in specialized hazardous waste/resource recovery service, emphasizing the recovery of zinc, lead and cadmium from electric arc furnace dust and the recycling of these materials into useful products.
 HORSEHEAD RESOURCE DEVELOPMENT COMPANY, INC. AND SUBSIDIARIES
 Consolidated Statements of Operations
 (Unaudited, in thousands except per share data)
 Three Months Ended
 June 30, 1993 1992
 Operating revenues:
 Service fees $14,120 $13,011
 Product sales 7,877 13,849
 Total 21,997 26,860
 Operating costs 13,874 15,866 (A)
 Gross profit 8,123 10,994
 SG&A 3,959 3,754
 Research and development 925 563
 Operating income 3,239 6,677
 Other income, net (97) (162) (A)
 Income before income taxes 3,142 6,515
 Provision for income taxes 1,294 2,668
 Net income 1,848 3,847 (B)
 Earnings per share 0.05 0.11 (B)
 Average common shares
 outstanding 36,237 36,237
 (A) Restated for purposes of comparability to reflect a change made to a contract with a joint venture, effective Jan. 1, 1993.
 (B) In December 1992, the company adopted Statement of Financial Accounting Standards No. 106, "Accounting for Postretirement Benefits Other Than Pensions" as of Jan. 1, 1992. Results previously reported for the quarter ended June 30, 1992 were $3,966,000, or $.11 per share.
 Six Months Ended
 June 30, 1993 1992
 Operating revenues
 Service fees $27,665 $25,495
 Product sales 17,083 25,372
 Total 44,748 50,867
 Operating costs 28,138 31,168 (A)
 Gross profit 16,610 19,699
 SG&A 7,403 6,879
 Research and development 2,004 1,199
 Operating income 7,203 11,621
 Other income, net 226 90 (A)
 Income before income taxes
 and cumulative effect of a
 change in accounting 7,429 11,711
 Provision for income taxes 3,050 4,806
 Income before cumulative effect
 of a change in accounting 4,379 6,905 (B)
 Cumulative effect of a change
 in accounting for SFAS No. 106,
 net of taxes of $2,324 --- (3,344)
 Net income 4,379 3,561
 Earnings per share:
 Before cumulative effect of a
 change in accounting 0.12 0.19 (B)
 Cumulative effect of a change
 in accounting --- (0.09)
 Net income 0.12 0.10
 Average common shares
 outstanding 36,237 36,237
 (A) Restated for purposes of comparability to reflect a change made to a contract with a joint venture, effective Jan. 1, 1993.
 (B) In December 1992, the company adopted Statement of Financial Accounting Standards No. 106, "Accounting for Postretirement Benefits Other than Pensions" as of Jan. 1, 1992. Results previously reported for the six months ended June 30, 1992 were $7,142,000 or $.20 per share.
 -0- 8/12/93
 /CONTACT: Robert L. Hoguet III of Horsehead Resource Development, 212-527-3025/
 (HHRD)


CO: Horsehead Resource Development Company, Inc. ST: New York IN: SU: ERN

MP-LG -- NY060 -- 2201 08/12/93 15:03 EDT
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Publication:PR Newswire
Date:Aug 12, 1993
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