Westway Group, Inc. Reports 10% Increase In Financial Results
NEW ORLEANS, Nov. 9, 2010 (GLOBE NEWSWIRE) -- Westway Group, Inc. (Nasdaq:WWAY) today reported consolidated Adjusted EBITDA for the first nine months of 2010 of $30.2 million, up $2.8 million or 10% from the pro forma results for the first nine months of 2009. Consolidated Adjusted EBITDA for the third quarter of 2010 totaled $8.3 million and $9.8 million for the same period in 2009.
Consolidated Adjusted EBITDA reflects income before income tax provision, depreciation, interest expense, and other related non-cash items. The pro forma numbers are calculated as though Westway had acquired the bulk liquid storage and liquid feed supplements businesses of the ED&F Man group on January 1, 2009, rather than May 28, 2009, with certain adjustments, as described in our 10-Q, to be filed later today.
During the third quarter, the Company successfully completed a tender offer for its publicly traded warrants with the purchase of 34,107,870 warrants on September 22, 2010 for an aggregate purchase price of $4,427,331 and 1,715 shares of our Class A Common Stock, excluding fees and expenses relating to the tender offer. Following the completion of the tender offer, there were 11,892,030 warrants outstanding as of September 30, 2010, excluding the founder warrants and underwriter warrants.James Jenkins, Chief Executive Officer of the Company stated, "We are very pleased with the successful completion of our warrant tender offer, as it provides the Company with a much improved capital structure for the future. It is also our intention to continue exploring further opportunities to improve our capital structure." Mr. Jenkins further commented that "Westway continues to evaluate opportunities to increase its bulk liquid storage capacity both in the U.S. and globally while maintaining a high utilization rate. Our existing contract terminal customers provide a core earnings base, with growth coming from expansion of our storage capacity. Margins in our liquid feed supplement business have recently declined as the market has become increasingly competitive, which we have been able to partially offset through declines in the cost of our product inputs. Margins may improve in the future as our products become more competitive to corn and other commodities, if these inputs continue their current trend of price escalation making molasses based products more attractive."
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