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Westway Group, Inc. Reports 6% Increase In Second Quarter Financial Results

NEW ORLEANS, Aug. 9, 2012 (GLOBE NEWSWIRE) -- Westway Group, Inc. (Nasdaq:WWAY) today reported a 6% increase in consolidated Adjusted EBITDA for the second quarter of 2012 to $10.9 million compared to $10.2 million for the second quarter of 2011. Westway Group Inc. also recognized $1.7 million of consolidated net income for both the second quarter of 2012 and 2011.

For the six months ended June 30, 2012, the Company reported a 3% increase in consolidated Adjusted EBITDA to $22.9 million compared to $22.2 million for the first six months of 2011. Additionally, the company recognized net income of $4.2 million during the first six months of 2012, an increase of 9% over $3.9 million during the first six months of 2011.

Second Quarter 2012 Highlights :

  • Consolidated net revenue increased $4.2 million, or 5%, to $97.3 million, as compared to $93.1 million in the second quarter of 2011, attributable to higher liquid feed supplement volume.   
  • Our liquid feed supplements business recognized improvements in all three of its key performance indicators in the second quarter of 2012 compared to the same period in 2011. 
  • Tonnage sold totaled 436,000 tons, an increase of 6%.
  • Dollar gross profit increased $1.7 million, or 16%. 
  • Gross profit margin percentage increased to 16.5% compared to 15.2%
  • The liquid feed supplements business also made the following achievements in the second quarter of 2012:
  • Construction began on our $3.4 million SweetLac project which is expected to start contributing revenue in late September 2012. We expect this project to capitalize on our condensed whey patent and allow us to expand our technologies to additional geographic locations.
  • Development continued on new and improved low moisture tubs from our Cooked Tub facility in Catoosa, OK, which is expected to expand our sales.
  • Approval was received from the US patent office for the second phase of our condensed whey patents. Our unique process of treating condensed whey has been one of our largest growth successes.
  • Our total global bulk liquid storage capacity increased to 368 million gallons at June 30, 2012, which is up from 349 million gallons at the end of the second quarter of 2011.   
  • The final four new tanks of a nine tank project were completed at our Amsterdam terminal at the end of the first quarter of 2012, resulting in an additional 1.9 million gallons of storage capacity. All nine of these new tanks were under contract and generating revenue in the second quarter of 2012.   
  • In our bulk liquid storage business, the following construction projects were either completed or under way during the second quarter of 2012:
  • Construction of a new 1.5 million gallon tank at our Jacksonville, FL terminal was completed and began generating revenue at the end of the second quarter of 2012. 
  • Capacity expansion continued at our Houston 1, TX terminal, which will add 6.0 million gallons of storage capacity and three new dock lines, as well as associated inbound and outbound marine and land traffic infrastructure. Half of this capacity is already under a long term agreement for a lease beginning early in the fourth quarter of 2012. The remaining capacity from this expansion is on budget and scheduled for completion at the end of the fourth quarter of 2012.
  • At our Houston 2, TX terminal, our current project which will add 2.5 million gallons of storage capacity is on budget and ahead of schedule with completion expected by the end of the third quarter of 2012. Half of this additional capacity is already under a lease and generating revenue as of June 2012.
  • Construction continues on a new 3.0 million gallon tank at our Port Allen, LA terminal. The tank is scheduled for completion in the fourth quarter of 2012 and is already under a long-term, ten year agreement.
  • Although our total corporate-related general and administrative expenses increased by $618,000 or 16%, during the second quarter of 2012 compared to the second quarter of 2011, this increase resulted from $860,000 of fees relating to our strategic review process that is currently underway.  Our other corporate-related general and administrative expenses decreased 6% during the second quarter of 2012, as compared to the second quarter of 2011, which management believes reflects the effect of its cost control measures.  
  • Interest expense on our bank credit facility decreased by $364,000 or 29% for the second quarter of 2012, compared to the second quarter of 2011, attributable to a lower interest rate environment and the July 2011 credit facility amendment, which reduced interest rates charged and commitment fees payable. The maturity date of the overall facility was also extended to July 2015 by this amendment, which reduced the quarterly amortization of finance costs. 

Second Quarter 2012 Results Compared to Second Quarter 2011 Results

The following is a discussion of results for the second quarter of 2012, compared to results for the second quarter of 2011.

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