Printer Friendly

HORSEHEAD RESOURCE DEVELOPMENT REPORTS THIRD QUARTER RESULTS

 NEW YORK, Nov. 9 /PRNewswire/ -- Horsehead Resource Development Company, Inc. (NASDAQ: HHRD) reported net income for its third quarter ended Sept. 30, 1993, of $1.5 million, or 4 cents per share, vs. $3.9 million, or 11 cents per share, in 1992's third quarter.
 Net income for the first nine months ended Sept. 30, 1993, was $5.9 million, or 16 cents per share, vs. $10.8 million, or 30 cents per share, in the first nine months of 1992 before the effects of adopting FAS 106.
 The decline in income was primarily attributable to lower zinc prices which were offset in part by higher service fee revenues. Year- to-year average zinc prices declined by 21 cents (or 34 percent) in the quarter and 15 cents (or 26 percent) for the nine months.
 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 C.I.S. 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 Sept. 30 1993 1992
 Operating revenues:
 Service fees $14,717 $10,976
 Product sales 13,359 12,920
 Total 28,076 23,896
 Operating costs 20,654 12,575 (A)
 Gross profit 7,422 11,321
 SG&A 4,098 3,836
 Research and development 549 692
 Operating income 2,775 6,793
 Other income, net (276) (116)(A)
 Income before income taxes 2,499 6,677
 Provision for income taxes 1,027 2,736
 Net income 1,472 3,941 (B)
 Earnings per share $0.04 $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 Sept. 30, 1992 were $4,059,000, or $.11 per share.
 Nine Months Ended Sept. 30 1993 1992
 Operating revenues
 Service fees $42,382 $36,471
 Product sales 30,442 38,292
 Total 72,824 74,763
 Operating costs 48,792 43,743 (A)
 Gross profit 24,032 31,020
 SG&A 11,501 10,715
 Research and development 2,553 1,891
 Operating income 9,978 18,414
 Other income, net (50) (26)(A)
 Income before income taxes
 and cumulative effect of a
 change in accounting 9,928 18,388
 Provision for income taxes 4,077 7,542
 Income before cumulative effect
 of a change in accounting 5,851 10,846 (B)
 Cumulative effect of a change
 in accounting for SFAS No. 106,
 net of taxes of $2,324 -- (3,344)
 Net income 5,851 7,502
 Earnings per share:
 Before cumulative effect of a
 change in accounting $0.16 $0.30 (B)
 Cumulative effect of a change
 in accounting -- (0.09)
 Net income 0.16 0.21
 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 nine months ended Sept. 30, 1992 were $11,201,000 or $.31 per share.
 -0- 11/9/93
 /CONTACT: Robert L. Hoguet III of Horsehead Resource Development, 212-527-3025/
 (HHRD)


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

CK -- NY003 -- 2015 11/09/93 07:03 EST
COPYRIGHT 1993 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1993 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Nov 9, 1993
Words:678
Previous Article:GARY SILVERMAN APPOINTED VP-HR OF BELDING HEMINWAY
Next Article:ZRC REPORTS 1993 THIRD QUARTER RESULTS
Topics:

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