Empire Resources Announces 2000 Operating Results; Posts Record Sales Of $165 Million

Apr 03, 2001, 01:00 ET from Empire Resources, Inc.

    FORT LEE, N.J., April 3 /PRNewswire/ -- Empire Resources, Inc.
 (Amex:   ERS), a distributor of value-added, semi-finished aluminum products,
 today announced revenues for the year 2000 increased $58.2 million or 54% from
 $107.1 million in 1999 to $165.3 million in 2000.
     Gross profit increased $2.6 million or 32% from $8.2 million in 1999 to
 $10.8 million in 2000, however gross profit as a percentage of sales declined
 from 7.6% to 6.5%.
     The Company reported net income of $1.0 million for 2000, compared to pro
 forma net income of $1.3 million (net of pro forma income taxes) for 1999.
     Net income amounted to $0.09 per share on a fully diluted basis, as
 compared to pro-forma net income of $0.18 per share, fully diluted, in 1999.
 There were 11.3 million shares reflected as outstanding this year as compared
 with 7.3 million a year ago, as required by applicable accounting rules
 related to the merger.
     Results for the year reflect the benefit of the higher sales partially
 offset by a decrease in direct margin and certain operating inefficiencies
 associated with the increase in sales.  The Company also incurred increased
 general and administrative expenses and interest costs to support the higher
 sales levels.
     "We are pleased that additional supply capacity has resulted in our
 achieving record sales this year," said Nathan Kahn, Chief Executive Officer.
 "We are directing our efforts to improving operating margins and efficiencies
 to drive bottom line performance in our second year of public ownership."
     On September 17, 1999, in a transaction treated for accounting and
 financial reporting purposes as a reverse acquisition, Empire, a privately
 owned company, merged with and into publicly-owned Integrated Technology USA,
 Inc.  The publicly owned company has been treated as a continuation of Empire,
 and the merger was treated as an issuance of shares by Empire to the
 stockholders of Integrated.  Because of a change effective with the merger of
 the Company's tax status from an S corporation to a C corporation, pro-forma
 income taxes have been reflected for 1999 to present the results of operations
 on a comparable basis.
 
     Empire Resources, Inc., is a distributor of a wide range of semi-finished
 aluminum products to customers in the transportation, automotive, housing,
 appliance and packaging industries in the U.S., Canada, Australia and New
 Zealand.  It maintains supply contracts with aluminum mills in various parts
 of the world.  Empire currently derives approximately 85% of its operating
 results from customers in North America.
 
     This press release contains forward-looking statements.  Such statements
 involve various risks that may cause actual results to differ materially.
 These risk include, but are not limited to, the ability of the company to grow
 internally or by acquisition and to integrate acquired businesses, not being
 able to improve operating margins and efficiencies, changing industry and
 competitive conditions, and other risks referred to in the company's
 registration statements and periodic reports filed with the
 Securities & Exchange Commission
 
 
                             Empire Resources, Inc.
                       Consolidated Statements of Income
 
                                                      Year Ended December 31,
                                                         2000           1999
 
     Net sales                                   $165,327,827   $107,112,064
     Cost of goods sold                           154,579,092     98,925,131
 
     Gross profit                                  10,748,735      8,186,933
     Selling, general and administrative expenses   5,707,741      3,913,597
 
     Operating income                               5,040,994      4,273,336
     Interest expense                               3,123,084      2,162,568
 
     Income before income taxes                     1,917,910      2,110,768
     Income taxes                                     877,123        154,553
 
     Net income                                    $1,040,787     $1,956,215
 
     Income before income taxes                            --     $2,110,768
     Pro forma income taxes                                --        802,092
 
     Pro forma net income                                  --     $1,308,676
 
     Weighted average shares outstanding:
     Basic                                         11,346,347      7,327,663
 
     Diluted                                       11,445,432      7,356,186
 
     Earnings per share:
     Basic                                               $.09             --
 
     Diluted                                             $.09             --
 
     Pro forma earnings per share:
     Basic                                                 --           $.18
 
     Diluted                                               --           $.18
 
 

SOURCE Empire Resources, Inc.
    FORT LEE, N.J., April 3 /PRNewswire/ -- Empire Resources, Inc.
 (Amex:   ERS), a distributor of value-added, semi-finished aluminum products,
 today announced revenues for the year 2000 increased $58.2 million or 54% from
 $107.1 million in 1999 to $165.3 million in 2000.
     Gross profit increased $2.6 million or 32% from $8.2 million in 1999 to
 $10.8 million in 2000, however gross profit as a percentage of sales declined
 from 7.6% to 6.5%.
     The Company reported net income of $1.0 million for 2000, compared to pro
 forma net income of $1.3 million (net of pro forma income taxes) for 1999.
     Net income amounted to $0.09 per share on a fully diluted basis, as
 compared to pro-forma net income of $0.18 per share, fully diluted, in 1999.
 There were 11.3 million shares reflected as outstanding this year as compared
 with 7.3 million a year ago, as required by applicable accounting rules
 related to the merger.
     Results for the year reflect the benefit of the higher sales partially
 offset by a decrease in direct margin and certain operating inefficiencies
 associated with the increase in sales.  The Company also incurred increased
 general and administrative expenses and interest costs to support the higher
 sales levels.
     "We are pleased that additional supply capacity has resulted in our
 achieving record sales this year," said Nathan Kahn, Chief Executive Officer.
 "We are directing our efforts to improving operating margins and efficiencies
 to drive bottom line performance in our second year of public ownership."
     On September 17, 1999, in a transaction treated for accounting and
 financial reporting purposes as a reverse acquisition, Empire, a privately
 owned company, merged with and into publicly-owned Integrated Technology USA,
 Inc.  The publicly owned company has been treated as a continuation of Empire,
 and the merger was treated as an issuance of shares by Empire to the
 stockholders of Integrated.  Because of a change effective with the merger of
 the Company's tax status from an S corporation to a C corporation, pro-forma
 income taxes have been reflected for 1999 to present the results of operations
 on a comparable basis.
 
     Empire Resources, Inc., is a distributor of a wide range of semi-finished
 aluminum products to customers in the transportation, automotive, housing,
 appliance and packaging industries in the U.S., Canada, Australia and New
 Zealand.  It maintains supply contracts with aluminum mills in various parts
 of the world.  Empire currently derives approximately 85% of its operating
 results from customers in North America.
 
     This press release contains forward-looking statements.  Such statements
 involve various risks that may cause actual results to differ materially.
 These risk include, but are not limited to, the ability of the company to grow
 internally or by acquisition and to integrate acquired businesses, not being
 able to improve operating margins and efficiencies, changing industry and
 competitive conditions, and other risks referred to in the company's
 registration statements and periodic reports filed with the
 Securities & Exchange Commission
 
 
                             Empire Resources, Inc.
                       Consolidated Statements of Income
 
                                                      Year Ended December 31,
                                                         2000           1999
 
     Net sales                                   $165,327,827   $107,112,064
     Cost of goods sold                           154,579,092     98,925,131
 
     Gross profit                                  10,748,735      8,186,933
     Selling, general and administrative expenses   5,707,741      3,913,597
 
     Operating income                               5,040,994      4,273,336
     Interest expense                               3,123,084      2,162,568
 
     Income before income taxes                     1,917,910      2,110,768
     Income taxes                                     877,123        154,553
 
     Net income                                    $1,040,787     $1,956,215
 
     Income before income taxes                            --     $2,110,768
     Pro forma income taxes                                --        802,092
 
     Pro forma net income                                  --     $1,308,676
 
     Weighted average shares outstanding:
     Basic                                         11,346,347      7,327,663
 
     Diluted                                       11,445,432      7,356,186
 
     Earnings per share:
     Basic                                               $.09             --
 
     Diluted                                             $.09             --
 
     Pro forma earnings per share:
     Basic                                                 --           $.18
 
     Diluted                                               --           $.18
 
 SOURCE  Empire Resources, Inc.