Printer Friendly

HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS

    HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS
    PALMERTON, Pa., Nov. 13 /PRNewswire/ -- Horsehead Resource Development Co., Inc. (NASDAQ: HHRD), today reported revenues of $19.9 million for the third quarter ended Sept. 30, 1991, a 30 percent increase over 1990s third quarter revenues of $15.3 million.
    The company reported a net loss of $1.1 million, or $0.03 per share, after non-cash inventory adjustments totalling $8.1 million pre-tax which reduced earnings per share by $0.13.  Net income in 1990s third quarter was $6.2 million or $0.17 per share.  For the nine months ended Sept. 30, 1991, the company reported revenues of $53.5 million and net income of $5.6 million or $0.16 per share compared to revenues of $39.4 million, net earnings of $14.5 million and earnings per share of $0.43 in the prior year's period.
   James H. Davis, HRD's president and CEO commented as follows: "HRD continues to realize substantial increases in revenues over the comparable periods in 1990 as a result of higher service fees and increased product sales volume which more than doubled due to production from our new calcining kiln.  However, EAF dust receipts remain below expectations as a result of the recession in the EAF steel industry.  In addition, product pricing remains substantially behind last year with the third quarter 1991 price of zinc $0.25 below 1990s third quarter.
    "Third quarter revenues also include an initial license fee of $3 million for use of our patented Flame Reactor technology for applications in Europe.  This brings total 1991 Flame Reactor licensing revenues to $4 million which demonstrates the potential for this versatile technology.
    "Operating costs in 1991 include a $6.4 million inventory write down resulting from the low price of zinc.  Operating costs also increased due to the recognition of more costs associated with the greater volume of zinc products sold, higher unit costs resulting from late 1990 capacity additions without a commensurate increase in the volume of EAF receipts and the inclusion of Memtek.
    "Joint venture results include a $1.7 million loss on our share of an inventory write down at the Bartlesville, Okla., lead fume processing facility.  We believe theme adjustments reflect appropriate values in the current economic climate.
    "We are cautious for the fourth quarter as the steel industry remains slow and the price of zinc continues to be a concern.  Over the longer term we are well positioned to benefit from an economic recovery from both the service fee and product sales sides of our business.  We continue to expand our core business beyond EAF dust by processing additional zinc-containing wastes, while broadening our involvement in the environmental service business.  In particular, the outlook for our aluminum salt slag technology was enhanced by the recent decision of a major aluminum producer to advise its secondary smelting contractors to handle all aluminum salt slag as a hazardous waste."
    HRD is a leader in specialized hazardous waste/resource recovery services 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)
    Periods Ended                  Three Months           Nine Months
    Sept. 30                     1991       1990       1991       1990
    Operating revenues:
         Service fees           $8,955     $6,773    $27,283    $19,808
         Product sales          10,942      8,531     26,173     19,629
    Total                       19,897     15,304     53,456     39,437
    Operating costs             18,916      4,977     36,464     12,379
    GROSS PROFIT                   981     10,327     16,992     27,058
    Selling, general and
     administrative              2,200      1,758      5,837      3,942
    Research and development       555        (88)     1,727        614
    Management fees                198        150        534        390
    OPERATING INCOME            (1,972)     8,507      8,894     22,112
    Other income (expense):
       Interest, net              (187)       (32)      (428)      (938)
       Results of joint venture (2,263)        --     (3,319)        --
       Technology fee            3,000         --      4,000         --
       Other, net                   85        541        344      1,219
    Total                          635        509        597        281
    INCOME BEFORE INCOME TAXES  (1,337)     9,016      9,491     22,393
    Provision for income taxes    (229)     2,851      3,858      7,885
    Net income                  (1,108)     6,165      5,633     14,508
    Earnings per share          ($0.03)     $0.17      $0.16      $0.43
    Average common shares
     outstanding            36,237,500 35,871,875 36,237,500 33,636,310
    -0-          11/13/91
   /CONTACT:  Robert L. Hoguet of Horsehead Resource Development, 212-527-3025/
    (HHRD) CO:  Horsehead Resource Development Co., Inc. ST:  Pennsylvania IN: SU:  ERN PS -- NY005 -- 3719 11/13/91 06:30 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 13, 1991
Words:763
Previous Article:ECOLOGY TO REPORT ON JOINT INSPECTIONS OF PUGET SOUND MILLS
Next Article:HOLIDAY
Topics:


Related Articles
HORSEHEAD RESOURCE DEVELOPMENT NET UP 56 PERCENT IN SECOND QUARTER
HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS
HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS
HORSEHEAD RESOURCE DEVELOPMENT DECLARES DIVIDEND
HORSEHEAD RESOURCE DEVELOPMENT REPORTS REVENUE AND EARNINGS GAINS
HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS
HORSEHEAD RESOURCE DEVELOPMENT CO. REPORTS FOURTH QUARTER RESULTS
HRD CORRECTS ENVIROSOURCE STATEMENT
HORSEHEAD RESOURCE DEVELOPMENT CO. REPORTS THIRD QUARTER RESULTS
Horsehead Resource Development Co., Inc. Ends Lawsuit

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters