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HORSEHEAD HOLDING CORP. (ZINC) filed Quarterly Report for the period ended 2011-09-30.
Horsehead Hldg Corp has a market cap of $391.9 million; its shares were traded at around $8.97 with a P/E ratio of 19.1 and P/S ratio of 1.
This is the annual revenues and earnings per share of ZINC over the last 10 years. For detailed 10-year financial data and charts, go to 10-Year Financials of ZINC.
Highlight of Business Operations:
Net sales. Net sales increased $51.1 million, or 65.7%, to $128.8 million for the three months ended September 30, 2011 compared to $77.7 million for the three months ended September 30, 2010. Net sales for the three months ended September 30, 2011 includes favorable non-cash mark-to market adjustments of $39.0 million related to the June 2011 hedges. Excluding the adjustments related to the June 2011 hedges, net sales increased $12.1 million, or 15.5%, to $89.8 million. The increase was a result of a $0.1 million increase in sales volume primarily reflecting increases in shipments of zinc oxide offset by decreases in shipments of zinc metal, a $7.1 million increase in price realization due to a higher average LME zinc price for the third quarter of 2011 compared to the third quarter of 2010 and an increase of $4.6 million in our zinc co-product and other miscellaneous sales. Miscellaneous sales include $4.2 million related to the resale of excess coal arising from the idling of our power plant in September 2011. Net sales during the three months ended September 2011 was decreased by non-cash mark-to market charges relating to our hedging activities of $2.6 million, which excludes the adjustments related to the June 2011 hedges. Net sales during the three months ended September 30, 2010 included $2.9 million of non-cash mark-to market charges relating to our hedging activities.The cost of zinc material and other zinc related products sold increased $8.8 million, or 12.3%, to $80.6 million for the three months ended September 30, 2011 compared to $71.8 million for the three months ended September 30, 2010. The increase was primarily a result of a net $2.0 million increase in shipment volume, a $0.9 million increase in the cost of products shipped and a $0.8 million increase in other costs. Cost of sales also includes $5.1 million related to the resale of excess coal due to the idling of the power plant in September 2011. Conversion costs reflect an increase in production levels of 13.6% for the three months ended September 30, 2011 compared to the three months ended September 30, 2010. This increase was due in part to the explosion at our Monaca facility in July 2010, which reduced production during the three months ended September 30, 2010. In addition to the increase in production volume, energy costs increased by $4.2 million, the majority of which resulted from an increase in the cost of coke. Labor costs increased by $3.0 million, which was primarily due to the increase in production. The increase in conversion costs was compounded by an increase in purchased feed costs of $7.2 million and an increase in the cost of purchased feeds we pay expressed as a percentage of the LME. The increase in our purchased feed costs also reflects a 13.4% increase in the number of tons of purchased feed consumed. Changes in the average LME zinc price effect only the purchased feed component of our cost of sales, therefore any changes in the average LME zinc price have a smaller effect on our cost of sales than on our net sales.
Consolidated cost of sales (excluding depreciation and amortization). Consolidated cost of sales increased $21.4 million, or 8.8%, to $263.9 million for the nine months ended September 30, 2011 compared to $242.5 million for the nine months ended September 30, 2010. Cost of sales for the nine months ended September 30, 2011 includes a benefit from business interruption and property damage insurance recoveries totaling $10.3 million offset by additional costs of repairs and clean-up totaling $1.0 million relating to the explosion at our Monaca refinery in July 2010. Excluding the additional costs and insurance recoveries associated with the explosion, consolidated cost of sales increased $30.7 million, or 12.7%, to $273.2 million. The increase includes a $28.1 million increase in cost of sales for Horsehead and a $2.6 million increase for INMETCO. As a percentage of consolidated net sales, excluding the net adjustments related to the June 2011 hedges which are included in consolidated net sales and excluding the additional costs and insurance recoveries associated with the explosion included in cost of sales, both adjustments relating to the nine months ended September 30, 2011, consolidated cost of sales was 83.5% for the nine months ended September 30, 2011 compared to 84.8% for the nine months ended September 30, 2010.
Net sales. Net sales increased $54.7 million, or 22.1%, to $302.7 million for the nine months ended September 30, 2011 compared to $247.9 million for the nine months ended September 30, 2010. Net sales for the nine months ended September 30, 2011 include net favorable non-cash mark-to market adjustments of $23.7 million related to the June 2011 hedges. Excluding the net adjustments related to the June 2011 hedges, net sales increased $31.0 million, or 12.5%, to $278.9 million. The increase was a result of a $9.7 million increase in sales volume primarily reflecting increases in shipments of zinc metal and of zinc oxide, a $15.1 million increase in price realization due to a higher average LME zinc price for the first nine months of 2011 compared to the first nine months of 2010 and an increase of $6.9 million in our zinc co-product and other miscellaneous sales. Miscellaneous sales include $4.2 million related to the resale of excess coal arising from the idling of our power plant in September 2011. Net sales during the nine months ended September 2011 was decreased by non-cash charges relating to our hedging activities of $3.1 million, excluding the net adjustments related to the June 2011 hedges, compared to a non-cash charge of $2.4 million for the nine months ended September 30, 2010.
The cost of zinc material and other zinc related products sold, excluding the insurance recoveries and additional costs of $9.3 million included in cost of sales for the nine months ended September 30, 2011, increased $28.2 million, or 14.1%, to $228.0 million for the nine months ended September 30, 2011 compared to $199.8 million for the nine months ended September 30, 2010. The increase was primarily a result of a net $8.4 million increase in shipment volume, an $11.6 million increase in the cost of products shipped and a $3.1 million increase in other costs. Cost of sales also includes $5.1 million related to the resale of excess coal due to the idling of the power plant in September 2011. Conversion costs for the nine months ended September 30, 2011 reflect an increase in production levels for the first nine months of 2011 of 8.3% compared to first nine months of 2010. In addition to the increase in production volume, energy costs increased by $14.8 million , the majority of which resulted from an increase in the cost of coke. Labor costs increased $7.1 million, which reflects the increase in production and includes a one time charge of approximately $2.3 million related to signing bonuses
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