This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Handy & Harman Ltd. Reports First Quarter Financial Results And Outlook For 2014

Stocks in this article: HNH

Handy & Harman Ltd. (NASDAQ:HNH) ("HNH" or the "Company"), a diversified global industrial company, today announced operating results for the first quarter ended March 31, 2014, which are summarized in the following paragraphs. For a full discussion of the results, please see the Company's Form 10-Q, which can be found at

HNH reported net sales of $161.8 million for the quarter, as compared to $149.0 million for the same period in 2013. Income from continuing operations before tax and equity investment was $8.2 million in the first quarter of 2014, as compared to $2.2 million in the 2013 period. Loss from continuing operations, net of tax, for the first quarter of 2014 was $0.4 million, or $(0.03) per basic and diluted common share, as compared to a loss of $1.5 million, or $(0.11) per basic and diluted common share for the same period in 2013.

HNH generated Adjusted EBITDA of $16.6 million for the first quarter of 2014, as compared to $17.6 million for the same period in 2013, a decrease of $(1.1) million, or (6.0)%. See "Note Regarding Use of Non-GAAP Financial Measurements" below for the definition of Adjusted EBITDA.

Based on current information, the Company currently anticipates full-year 2014 net sales and Adjusted EBITDA in the ranges of $640 million to $782 million, and $82 million to $100 million, respectively. The Company's outlook for the second quarter of 2014 is for net sales between $180 million and $220 million and Adjusted EBITDA between $27 million and $33 million.

Financial Summary

  Three Months Ended
(in thousands, except per share) March 31,
2014     2013  
Net sales $ 161,847 $ 148,957
Gross profit 45,400 43,972
Gross profit margin 28.1 % 29.5 %
Operating income 9,690 11,199
Income from continuing operations before tax and equity investment 8,228 2,178
Tax provision 3,342 867
Loss from associated company, net of tax 5,298   2,837  
Loss from continuing operations, net of tax (412 ) (1,526 )
Net income from discontinued operations 42   9,541  
Net (loss) income $ (370 ) $ 8,015  
Basic and diluted (loss) income per share of common stock
Loss from continuing operations, net of tax, per share $ (0.03 ) $ (0.11 )
Discontinued operations, net of tax, per share   0.72  
Net (loss) income per share $ (0.03 ) $ 0.61  

Segment Results

Statement of Operations Data   Three Months Ended
(in thousands) March 31,
2014     2013  
Net sales:
Joining Materials $ 51,713 $ 44,530
Tubing 20,706 22,014
Building Materials 48,531 46,639
Arlon 26,360 21,305
Kasco 14,537   14,469  
Total net sales $ 161,847   $ 148,957  
Segment operating income:
Joining Materials $ 5,378 $ 5,747
Tubing 3,068 3,752
Building Materials 3,010 4,068
Arlon 4,368 3,091
Kasco 726   1,291  
Total segment operating income 16,550   17,949  
Unallocated corporate expenses and non-operating units (5,747 ) (5,489 )
Unallocated pension expense (1,136 ) (1,274 )
Gain from asset dispositions 23   13  
Operating income 9,690   11,199  
Interest expense (1,552 ) (8,446 )
Realized and unrealized gain (loss) on derivatives 140 (439 )
Other expense (50 ) (136 )
Income from continuing operations before tax and equity investment $ 8,228   $ 2,178  

Supplemental Non-GAAP Disclosures

Adjusted EBITDA   Three Months Ended
(in thousands) March 31,
2014     2013  
Loss from continuing operations, net of tax $ (412 ) $ (1,526 )
Add (Deduct):
Loss from associated company, net of tax 5,298 2,837
Tax provision 3,342 867
Interest expense 1,552 8,446
Unrealized loss on embedded derivatives related to sub-notes 793
Non-cash derivative and hedge gain on precious metal contracts (140 ) (354 )
Non-cash adjustment to precious metal inventory valued at LIFO 131 (350 )
Depreciation and amortization 4,377 3,934
Non-cash pension expense 1,136 1,274
Non-cash stock-based compensation 1,078 1,190
Other items, net 190   505  
Adjusted EBITDA $ 16,552   $ 17,616  

Note Regarding Use of Non-GAAP Financial Measurements

The financial data contained in this press release includes certain non-GAAP financial measurements as defined by the Securities and Exchange Commission ("SEC"), including "Adjusted EBITDA." The Company is presenting Adjusted EBITDA because it believes that it provides useful information to investors about HNH, its business, and its financial condition. The Company defines Adjusted EBITDA as income or loss from continuing operations before the effects of gains or losses from investment in associated company, realized and unrealized gains or losses on derivatives, interest expense, taxes, depreciation and amortization, LIFO liquidation gains or losses, and non-cash pension expense, and excludes certain non-recurring and non-cash items. The Company believes Adjusted EBITDA is useful to investors because it is one of the measures used by the Company's Board of Directors and management to evaluate its business, including in internal management reporting, budgeting, and forecasting processes, in comparing operating results across the business, as an internal profitability measure, as a component in evaluating the ability and the desirability of making capital expenditures and significant acquisitions, and as an element in determining executive compensation.

1 of 4

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs