Hallwood Group Reports Results for the Fourth Quarter and Year Ended December 31, 2000
Apr 10, 2001, 01:00 ET from The Hallwood Group Incorporated
DALLAS, April 10 /PRNewswire/ -- The Hallwood Group Incorporated
(Amex: HWG) today reported results for the fourth quarter and year ended
December 31, 2000. Results include the former hotels business segment
reported as a discontinued operation; therefore, 1999 results have been
reclassified for comparability.
For the quarter, income from continuing operations was $1.3 million, or
$0.81 per share, compared to a loss of $237,000, or $0.13 per share for 1999,
on revenue of $20.0 million and $19.5 million, respectively. The net loss was
$4.5 million, or $2.57 per share, compared to net loss of $1.5 million, or
$0.84 per share, in 1999. The 2000 quarter loss included a $5.7 million loss
from discontinued operations, a tax benefit of $1.5 million and an
$85,000 extraordinary loss from the early extinguishment of debt of its real
estate affiliate. The 1999 quarter loss included a $1.5 million loss from
discontinued operations, a $1.8 million non-cash loss from redemption of
treasury stock, a tax benefit of $1.2 million and an extraordinary gain from
early extinguishment of debt of $240,000.
For the year, income from continuing operations was $3.5 million, or
$2.25 per share, compared to $4.4 million, or $2.31 per share, in 1999, on
revenue of $83.3 million and $93.4 million, respectively. The net loss was
$4.9 million, or $3.04 per share, compared to net income of $1.7 million, or
$0.88 per share, in 1999. The net loss for 2000 included a $8.3 million loss
from discontinued operations, a tax benefit of $1.2 million and an
extraordinary loss of $85,000. The net income for 1999 included a
$3.0 million loss from discontinued operations, a tax benefit of $1.0 million
and an extraordinary gain of $240,000.
Following is a comparison of results by business segment for the fourth
quarters and years ended December 31, 2000 and 1999:
Real Estate -- The real estate segment reported income of $582,000, on
revenue of $1.5 million in the 2000 quarter, compared to income of
$1.0 million, on revenue of $1.8 million in 1999.
For the year, the real estate segment reported income of $3.8 million, on
revenue of $6.5 million, compared to income of $6.5 million, on revenue of
$9.5 million in 1999.
Energy -- The energy segment reported income of $333,000, on revenue of
$333,000 in the 2000 quarter, compared to income of $164,000 on revenue of
$190,000 in 1999.
For the year, the energy segment reported income and revenue of
$2.8 million, on the equity method of accounting, compared to income of
$438,000 and revenue of $2.9 million in 1999, of which $380,000 was income and
revenue on the equity method. The Company began accounting for its investment
in its energy affiliate, Hallwood Energy Corporation (Nasdaq: HECO), under the
equity method, effective June 8, 1999.
On March 30, 2001, Hallwood Energy Corporation announced that it had
signed a definitive merger agreement pursuant to which Pure Resources II,
Inc., an indirect wholly owned subsidiary of Pure Resources, Inc., will
acquire all the outstanding common stock of Hallwood Energy at a price of
$12.50 per share and all the outstanding shares of Series A Cumulative
Preferred Stock of Hallwood Energy at a price of $10.84 per share. The all-
cash transaction, which is subject to a number of conditions, is structured as
a first step tender offer followed by a cash merger to acquire all remaining
shares of Hallwood Energy. The Company also agreed to tender all of its
shares of common stock in the tender offer and granted to Pure an irrevocable
proxy to vote in favor of the merger, on the same terms as provided in the
merger agreement.
Textile Products -- The textile products segment reported income of
$140,000 in the 2000 quarter, on revenue of $18.1 million, compared to income
of $98,000 in the 1999 quarter, on revenue of $17.5 million.
For the year, the textile products segment reported income of $455,000, on
revenue of $73.9 million, compared to income of $1.6 million, on revenue of
$80.7 million in 1999.
Other, consisting of administrative expenses and debenture and bank loan
interest, principally reported a loss of $1.3 million in the 2000 quarter,
compared to a loss of $2.7 million in the 1999 quarter. The 1999 quarter
included a $1.8 million non-cash loss from redemption of treasury stock.
For the year, the loss was $4.8 million, compared to $5.1 million 1999.
Income taxes (benefit) -- The Company reported an income tax (benefit) of
$1.5 million in the 2000 quarter, compared to an income tax (benefit) of
$1.2 million in 1999.
For the year, the income tax (benefit) was $1.2 million, compared to an
income tax (benefit) of $1.0 million in 1999.
Discontinued Operations -- The discontinued hotels segment reported a loss
of $5.7 million in the 2000 quarter, including non-cash charges of
$4.0 million for impairment of long lived assets and $811,000 for depreciation
and amortization, compared to a loss of $1.5 million, including a non-cash
charge for depreciation and amortization of $791,000 in 1999.
For the year, the loss from discontinued operations was $8.3 million,
compared to a loss of $3.0 million in 1999.
Extraordinary gain (loss) -- The Company reported an extraordinary loss of
$85,000 in the fourth quarter of 2000 from the early extinguishment of debt of
its real estate affiliate, compared to an extraordinary gain of $240,000 in
the fourth quarter of 1999, from the early retirement of the Company's 7%
Debentures.
The following table sets forth selected financial information for the
fourth quarters and years ended December 31, 2000 and 1999, respectively.
THE HALLWOOD GROUP INCORPORATED
(In thousands, except per share amounts)
Fourth Quarters Ended Years Ended
December 31, December 31,
2000 1999 2000 1999
Revenue $19,973 $19,482 $83,252 $93,446
Income (loss) from continuing
operations before income tax
(benefit) and extraordinary
gain (loss) $(202) $(1,471) $ 2,274 $ 3,422
Income tax (benefit) (1,543) (1,234) (1,210) (1,014)
Income (loss) from continuing
operations before
extraordinary gain (loss) 1,341 (237) 3,484 4,436
Loss from discontinued
operations, net of tax (5,747) (1,534) (8,266) (2,957)
Income (loss) before
extraordinary gain (loss) (4,406) (1,771) (4,782) 1,479
Extraordinary gain (loss) (85) 240 (85) 240
Net income (loss) (4,491) (1,531) (4,867) 1,719
Less: Preferred dividends --- --- 50 50
Net income (loss) available
to common stockholders $(4,491) $(1,531) $(4,917) $ 1,669
PER COMMON SHARE
BASIC:
Income (loss) from continuing
operations before
extraordinary gain (loss) $ 0.94 $(0.13) $ 2.41 $2.34
Loss from discontinued
operations (4.03) (0.84) (5.80) (1.58)
Extraordinary gain (loss) (0.06) 0.13 (0.06) 0.13
Net income (loss) $(3.15) $(0.84) $(3.45) $0.89
Weighted average shares
outstanding 1,425 1,833 1,425 1,870
ASSUMING DILUTION:
Income (loss) from continuing
operations before
extraordinary gain (loss) $ 0.81 $(0.13) $ 2.25 $2.31
Loss from discontinued
operations (3.33) (0.84) (5.24) (1.56)
Extraordinary gain (loss) (0.05) 0.13 (0.05) 0.13
Net income (loss) $(2.57) $(0.84) $(3.04) $0.88
Weighted average shares
outstanding 1,727 1,833 1,579 1,899
Certain statements in this press release may constitute "forward-looking
statements", which are subject to known and unknown risks and uncertainties
including, among other things, certain economic conditions, competition,
development factors and operating costs that may cause the actual results to
differ materially from results implied by such forward-looking statements.
SOURCE The Hallwood Group Incorporated
DALLAS, April 10 /PRNewswire/ -- The Hallwood Group Incorporated
(Amex: HWG) today reported results for the fourth quarter and year ended
December 31, 2000. Results include the former hotels business segment
reported as a discontinued operation; therefore, 1999 results have been
reclassified for comparability.
For the quarter, income from continuing operations was $1.3 million, or
$0.81 per share, compared to a loss of $237,000, or $0.13 per share for 1999,
on revenue of $20.0 million and $19.5 million, respectively. The net loss was
$4.5 million, or $2.57 per share, compared to net loss of $1.5 million, or
$0.84 per share, in 1999. The 2000 quarter loss included a $5.7 million loss
from discontinued operations, a tax benefit of $1.5 million and an
$85,000 extraordinary loss from the early extinguishment of debt of its real
estate affiliate. The 1999 quarter loss included a $1.5 million loss from
discontinued operations, a $1.8 million non-cash loss from redemption of
treasury stock, a tax benefit of $1.2 million and an extraordinary gain from
early extinguishment of debt of $240,000.
For the year, income from continuing operations was $3.5 million, or
$2.25 per share, compared to $4.4 million, or $2.31 per share, in 1999, on
revenue of $83.3 million and $93.4 million, respectively. The net loss was
$4.9 million, or $3.04 per share, compared to net income of $1.7 million, or
$0.88 per share, in 1999. The net loss for 2000 included a $8.3 million loss
from discontinued operations, a tax benefit of $1.2 million and an
extraordinary loss of $85,000. The net income for 1999 included a
$3.0 million loss from discontinued operations, a tax benefit of $1.0 million
and an extraordinary gain of $240,000.
Following is a comparison of results by business segment for the fourth
quarters and years ended December 31, 2000 and 1999:
Real Estate -- The real estate segment reported income of $582,000, on
revenue of $1.5 million in the 2000 quarter, compared to income of
$1.0 million, on revenue of $1.8 million in 1999.
For the year, the real estate segment reported income of $3.8 million, on
revenue of $6.5 million, compared to income of $6.5 million, on revenue of
$9.5 million in 1999.
Energy -- The energy segment reported income of $333,000, on revenue of
$333,000 in the 2000 quarter, compared to income of $164,000 on revenue of
$190,000 in 1999.
For the year, the energy segment reported income and revenue of
$2.8 million, on the equity method of accounting, compared to income of
$438,000 and revenue of $2.9 million in 1999, of which $380,000 was income and
revenue on the equity method. The Company began accounting for its investment
in its energy affiliate, Hallwood Energy Corporation (Nasdaq: HECO), under the
equity method, effective June 8, 1999.
On March 30, 2001, Hallwood Energy Corporation announced that it had
signed a definitive merger agreement pursuant to which Pure Resources II,
Inc., an indirect wholly owned subsidiary of Pure Resources, Inc., will
acquire all the outstanding common stock of Hallwood Energy at a price of
$12.50 per share and all the outstanding shares of Series A Cumulative
Preferred Stock of Hallwood Energy at a price of $10.84 per share. The all-
cash transaction, which is subject to a number of conditions, is structured as
a first step tender offer followed by a cash merger to acquire all remaining
shares of Hallwood Energy. The Company also agreed to tender all of its
shares of common stock in the tender offer and granted to Pure an irrevocable
proxy to vote in favor of the merger, on the same terms as provided in the
merger agreement.
Textile Products -- The textile products segment reported income of
$140,000 in the 2000 quarter, on revenue of $18.1 million, compared to income
of $98,000 in the 1999 quarter, on revenue of $17.5 million.
For the year, the textile products segment reported income of $455,000, on
revenue of $73.9 million, compared to income of $1.6 million, on revenue of
$80.7 million in 1999.
Other, consisting of administrative expenses and debenture and bank loan
interest, principally reported a loss of $1.3 million in the 2000 quarter,
compared to a loss of $2.7 million in the 1999 quarter. The 1999 quarter
included a $1.8 million non-cash loss from redemption of treasury stock.
For the year, the loss was $4.8 million, compared to $5.1 million 1999.
Income taxes (benefit) -- The Company reported an income tax (benefit) of
$1.5 million in the 2000 quarter, compared to an income tax (benefit) of
$1.2 million in 1999.
For the year, the income tax (benefit) was $1.2 million, compared to an
income tax (benefit) of $1.0 million in 1999.
Discontinued Operations -- The discontinued hotels segment reported a loss
of $5.7 million in the 2000 quarter, including non-cash charges of
$4.0 million for impairment of long lived assets and $811,000 for depreciation
and amortization, compared to a loss of $1.5 million, including a non-cash
charge for depreciation and amortization of $791,000 in 1999.
For the year, the loss from discontinued operations was $8.3 million,
compared to a loss of $3.0 million in 1999.
Extraordinary gain (loss) -- The Company reported an extraordinary loss of
$85,000 in the fourth quarter of 2000 from the early extinguishment of debt of
its real estate affiliate, compared to an extraordinary gain of $240,000 in
the fourth quarter of 1999, from the early retirement of the Company's 7%
Debentures.
The following table sets forth selected financial information for the
fourth quarters and years ended December 31, 2000 and 1999, respectively.
THE HALLWOOD GROUP INCORPORATED
(In thousands, except per share amounts)
Fourth Quarters Ended Years Ended
December 31, December 31,
2000 1999 2000 1999
Revenue $19,973 $19,482 $83,252 $93,446
Income (loss) from continuing
operations before income tax
(benefit) and extraordinary
gain (loss) $(202) $(1,471) $ 2,274 $ 3,422
Income tax (benefit) (1,543) (1,234) (1,210) (1,014)
Income (loss) from continuing
operations before
extraordinary gain (loss) 1,341 (237) 3,484 4,436
Loss from discontinued
operations, net of tax (5,747) (1,534) (8,266) (2,957)
Income (loss) before
extraordinary gain (loss) (4,406) (1,771) (4,782) 1,479
Extraordinary gain (loss) (85) 240 (85) 240
Net income (loss) (4,491) (1,531) (4,867) 1,719
Less: Preferred dividends --- --- 50 50
Net income (loss) available
to common stockholders $(4,491) $(1,531) $(4,917) $ 1,669
PER COMMON SHARE
BASIC:
Income (loss) from continuing
operations before
extraordinary gain (loss) $ 0.94 $(0.13) $ 2.41 $2.34
Loss from discontinued
operations (4.03) (0.84) (5.80) (1.58)
Extraordinary gain (loss) (0.06) 0.13 (0.06) 0.13
Net income (loss) $(3.15) $(0.84) $(3.45) $0.89
Weighted average shares
outstanding 1,425 1,833 1,425 1,870
ASSUMING DILUTION:
Income (loss) from continuing
operations before
extraordinary gain (loss) $ 0.81 $(0.13) $ 2.25 $2.31
Loss from discontinued
operations (3.33) (0.84) (5.24) (1.56)
Extraordinary gain (loss) (0.05) 0.13 (0.05) 0.13
Net income (loss) $(2.57) $(0.84) $(3.04) $0.88
Weighted average shares
outstanding 1,727 1,833 1,579 1,899
Certain statements in this press release may constitute "forward-looking
statements", which are subject to known and unknown risks and uncertainties
including, among other things, certain economic conditions, competition,
development factors and operating costs that may cause the actual results to
differ materially from results implied by such forward-looking statements.
SOURCE The Hallwood Group Incorporated
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