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On May 8, 2009,
reported that it swung to a net loss during Q1 FY09, hurt by the recession and weak demand in the domestic economy. Net loss stood at $3.55 million or $0.10 per share compared to a profit of $6.07 million or $0.19 per share in the year ago quarter. Loss from continuing operations stood at $3.71 million or $0.10 per share compared to a profit $6.47 million or $0.20 per share in Q1 FY08. The most recent consensus estimate was a loss of $0.19 per share.
Total revenue plunged 68.8% to $53.28 million from $170.55 million a year ago, dragged down by reduced average metal prices due to the impact of the ongoing economic crisis.
The Scrap Metal segment reported unit volume declines of approximately 21.0% in ferrous volumes, 38.0% in non-ferrous volumes, and 70.0% in Platinum Group Metals (PGM's) volumes. Moreover, average price for ferrous decreased 33.3%, while the average nonferrous selling price plunged 51.0% quarter-over-quarter, and PGM's plummeted 61.0% compared to same quarter last year. Finally, the Lead Fabricating segment's unit volumes rose 2.0% quarter-over-quarter, while its average selling prices reduced 47.0% from Q1 FY08 levels.
Total costs and expenses dropped 66.3% to $53.07 million from $157.43 million a year ago. Operating expenses shrunk 70.7% to $43.47 million from $148.25 million, while selling, general, and administrative expenses slipped 11.8% to $6.31 million from $7.15 million. Moreover, depreciation and amortization expenses were $3.29 million, up 62.2% from $2.03 million in the prior year's quarter. Subsequently, operating income slumped 98.4% to $215,000 from $13.12 million, while as a percentage of sales, operating margin contracted 729 basis points to 0.40% from 7.69% in Q1 FY08.