Wolverine Tube Reports Second Quarter 2007 Results

$383 Million Revenues, $12.7 Million Net Income, $20.2 Million EBITDA


HUNTSVILLE, Ala., July 26, 2007 (PRIME NEWSWIRE) -- Wolverine Tube, Inc. (OTCBB:WLVT) today reported its results for the second quarter ended July 1, 2007. Net sales for the second quarter of 2007 were $383.2 million compared to $418.0 million in the second quarter of 2006, reflecting, among other items, the closing of Wolverine's Montreal, Quebec plant in late 2006 and the related discontinuance of rod and bar and smooth alloy tube product sales.

Net income for the current quarter was $12.7 million compared with net income of $6.4 million for the comparative quarter in 2006. Fully diluted earnings per share were $0.17 for the current quarter compared to $0.42 per share for the second quarter of 2006. The 2007 fully diluted earnings per share reflects the impact of accounting for the issuance of $50 million of convertible preferred stock in the first quarter of 2007 as if fully converted.

Operating income before restructuring charges for the second quarter of 2007 was $16.1 million as compared to $17.3 million in the second quarter of 2006. Adjusted earnings before interest, taxes, and depreciation and amortization ("EBITDA") was $20.2 million for the current quarter as compared with $23.2 million for the comparative 2006 quarter.

Steven S. Elbaum, Chairman, stated that, "The second quarter performance reflected further progress in strengthening and repositioning Wolverine. After a delay in the filing of the Company's amended 10-K for 2006, we anticipate completing a common stock rights offering in the third quarter, and a refinancing of the Company's funded debt shortly thereafter. The Company is concentrated on improving its competitiveness, operating performance and customer service, and is strategically focused on higher value added products and technical services within a deleveraged capital structure."

Commenting on the results, Harold M. Karp, President and Chief Operating Officer said, "Second quarter operating results were solid despite the negative impact of an industry wide reduction in residential air conditioning demand and demand for residential plumbing and refrigeration tube in our Wholesale Products segment. This was offset by improved margins and pricing, and stronger demand for technical and fabricated tube products in the commercial chiller and other markets. We are at the beginning of improving operating performance through productivity gains, yield improvements and lean initiatives. These are expected to yield measureable improvements in the future."

Jed Deason, Chief Financial Officer stated, "Our liquidity position continues to improve over the prior year even with the continuation of historically high prices for copper, which averaged $3.46 per pound in the second quarter of 2007. Funds available under our $35 million secured revolving credit facility and our $90 million receivables sale facility are adequate to support our working capital requirements. As of July 24, 2007, we had utilized $37.0 million of the receivables sale facility and had no outstanding borrowings under the secured revolving facility, although this facility is used to support $23.3 million in outstanding letters of credit. Therefore, including North American cash of approximately $6.3 million, our available liquidity was $54.9 million. As planned, we anticipate commencing a common stock rights offering and expect to finalize the Form S-1 Registration Statement with the Securities and Exchange Commission in August."

SEGMENT RESULTS

The Company currently operates in Commercial Products and Wholesale Products segments. Commercial Products include technical, industrial, and copper alloy tubes, fabricated products, and metal joining products. Wholesale Products include plumbing and refrigeration tube. Prior to 2007, the Company's business also included a Rod, Bar and Other Products segment comprising a broad range of copper and copper alloy solid products as well as a distribution business in The Netherlands. The Netherlands distribution business, which was historically included in the Rod, Bar and Other products segment, is now included in the Commercial Products segment for the current quarter and the comparable period in 2006.

Commercial Products gross profit increased by 75.6 percent to $15.1 million in 2007 compared to the prior year's second quarter gross profit of $8.6 million. Shipments decreased to 63.2 million pounds from 68.5 million pounds. Net sales increased 2.2 percent to $284.5 million. These results reflect the impact of higher copper prices, higher unit fabrication revenue due to a richer mix of products, and reduced manufacturing costs, offset by a slow start in the residential air conditioning season which impacted demand for industrial tube, fabricated products and metal joining products, and the higher cost to procure metal this year as compared with last year. Demand for technical tube and fabricated products utilized in the commercial air conditioning industry improved year over year.

Wholesale Products gross profit was $11.8 million in 2007 as compared to $22.3 million in the second quarter of 2006. Shipments totaled 21.8 million pounds as compared to last year's 28.5 million pounds. Net sales were $98.6 million, compared with the prior year's $123.5 million. Higher copper prices and unit fabrication revenues were more than offset by lower volume which resulted in comparatively lower net sales. Manufacturing cost increases and higher metal costs accounted for the lower gross profit.

ABOUT WOLVERINE TUBE, INC.

Wolverine Tube, Inc. is a world-class quality partner, providing its customers with copper and copper alloy tube and fabricated and metal joining products. Internet addresses: http://www.wlv.com and http://www.silvaloy.com.

FORWARD-LOOKING STATEMENTS

Forward-looking statements in this press release are made pursuant to the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements use such words as "may", "should", "will", "expect", "believe", "plan", "anticipate" and other similar terminologies. This press release contains forward-looking statements regarding factors affecting the Company's expectations of future operating and financial results and liquidity. Such statements are based on current expectations, estimates and projections about the industry and markets in which the Company operates, as well as management's beliefs and assumptions about the Company's business and other information currently available. These forward-looking statements are subject to various risks and uncertainties that could cause actual results to differ materially from those stated or implied by such forward-looking statements. The Company undertakes no obligation to publicly release any revision of any forward-looking statements contained herein to reflect events or circumstances occurring after the date hereof or to reflect the occurrence of unanticipated events. With respect to expectations of future operating and financial results and liquidity factors that could affect actual results include, without limitation, the effect of currency fluctuation; energy and raw material costs and our ability to effectively hedge these costs; fluctuation in the COMEX copper, silver and other metals pricing; continuation of historical trends in customer inventory levels and expected demand for our products; outsourcing levels of OEMs; the seasonality of our business; the level of customer use of inventory and demand; competitive products and pricing; environmental contingencies; regulatory matters; changes in technology and our ability to maintain technologically competitive products; the mix of geographic and product revenues; the success of our product and process development activities, productivity and strategic initiatives, including related to transportation and natural gas, electricity and other utilities, global expansion activities, market share penetration efforts, working capital management programs and capital spending initiatives; our ability to sustain long-term value to our stockholders; the success of our efforts for improvements in operating metrics; our ability to repatriate foreign cash without unexpected delay or expense and our ability to continue de-levering our balance sheet. A discussion of risks and uncertainties which could cause actual results to differ from those contained in the forward-looking statements can be found in the Company's Annual Report on Form 10-K for the most recently ended fiscal year (as amended) and reports filed from time to time with the Securities and Exchange Commission.


                      WOLVERINE TUBE, INC. FINANCIAL DATA
               Consolidated Statements of Operations (Unaudited)

                                Three-month           Six-month
  In thousands, except per     period ended          period ended
   share data               7/1/2007   7/2/2006   7/1/2007   7/2/2006
                           ---------  ---------  ---------  ---------
  Net sales                $ 383,151  $ 417,984  $ 669,854  $ 716,296
  Cost of goods sold         356,334    388,847    627,496    676,277
  ------------------------ ---------  ---------  ---------  ---------
  Gross profit                26,817     29,137     42,358     40,019

  Selling, general and
   administrative expenses     8,344      9,764     15,785     17,393
  Advisory fees and
   severance expenses          2,405      2,119      6,085      2,106
  Restructuring charges          779         --      3,702         --
  ------------------------  --------  ---------  ---------  ---------
  Operating income            15,289     17,254     16,786     20,520

  Loss on sale of
   receivables                   810      1,441      1,318      2,032
  Interest and amortization
   expense, net                5,876      6,882     11,793     12,552
  Embedded derivatives mark
   to market                  (7,086)        --    (11,177)        --
  Other expense (income),
   net                         1,257          8      1,674        290
  ------------------------ ---------  ---------  ---------  ---------
  Income before income
   taxes                      14,432      8,923     13,178      5,646

  Income tax provision         1,716      2,514      2,612      1,355
  ------------------------ ---------  ---------  ---------  ---------
  Net income                  12,716      6,409     10,566      4,291

  Less: Accretion of
   convertible preferred
   stock to redemption value   1,255         --      2,107         --
  Less: Preferred stock
   dividends                   1,000         --     11,118         --
  ------------------------ ---------  ---------  ---------  ---------
  Net income (loss)
   applicable to common
   shares                  $  10,461  $   6,409  $  (2,659) $   4,291
                           =========  =========  =========  =========

  ------------------------ ---------  ---------  ---------  ---------
  Net income (loss) per
   share (a):
  Basic                    $    0.17  $    0.43  $   (0.18)      0.28
  Diluted                  $    0.17  $    0.42  $   (0.18)      0.28

  Common shares outstanding:
  Basic                       15,177     15,073     15,155     15,066
  Diluted                     15,256     15,183     15,155     15,161
  ------------------------ ---------  ---------  ---------  ---------

 (a) For the quarter ended July 1, 2007, basic EPS is calculated
     after allocating net income (loss) applicable to common shares
     of $10.5 million multiplied by the percentage that common shares
     represent of the total shares outstanding assuming outstanding
     preferred shares are fully converted (15.2 million common shares
     outstanding divided by 60.6 million common shares on a diluted
     basis (15.2 million common shares outstanding plus 45.4 million
     common shares issuable upon conversion of outstanding preferred
     shares) or 25%, multiplied by the total net income (loss) per
     share, or $2.6 million). Diluted earnings per share takes into
     account the dilutive effect of stock options (79 thousand
     shares).

                  Segment Information (Unaudited)

 The Company currently operates in Commercial Products and Wholesale
 Products segments. Commercial Products include technical, industrial
 and copper alloy tubes, fabricated products, and metal joining
 products. Wholesale Products include plumbing and refrigeration
 tube. Prior to 2007, the Company's business also included a Rod, Bar
 and Other Products segment comprising a broad range of copper and
 copper alloy solid products as well as a distribution business in
 The Netherlands. The Netherlands distribution business, which was
 historically included in the Rod, Bar and Other Products segment, is
 now included in the Commercial Products segment for the current
 quarter and the comparable period in 2006.

                               Three-month            Six-month
                              period ended          period ended
 In thousands              7/1/2007   7/2/2006   7/1/2007   7/2/2006
                          ---------  ---------  ---------  ---------
 Pounds Shipped:
 Commercial                  63,182     68,453    113,737    133,233
 Wholesale                   21,836     28,480     40,672     51,263
 Rod, bar, and other (a)         --      4,981         --      9,622
 -----------------------  ---------  ---------  ---------  ---------
 Total pounds shipped        85,018    101,914    154,409    194,118
 =======================  =========  =========  =========  =========

 Net sales:
 Commercial               $ 284,545  $ 278,445  $ 505,731  $ 498,105
 Wholesale                   98,606    123,454    164,123    189,320
 Rod, bar, and other (a)         --     16,085         --     28,871
 -----------------------  ---------  ---------  ---------  ---------
 Total net sales          $ 383,151  $ 417,984  $ 669,854  $ 716,296
 =======================  =========  =========  =========  =========

 Gross Profit:
 Commercial               $  15,066  $   8,582  $  26,781  $  17,745
 Wholesale                   11,751     22,286     15,577     24,454
 Rod, bar, and other (a)         --     (1,731)        --     (2,180)
 -----------------------  ---------  ---------  ---------  ---------
 Total gross profit       $  26,817  $  29,137  $  42,358  $  40,019
 =======================  =========  =========  =========  =========

 (a) The Netherlands distribution business is included in the
     Commercial segment in both 2007 and 2006.
     The net sales reclassified in 2006 were $5.6 million for the
     three-month period and $10.7 million for the six-month period. 
     The gross profits reclassified in 2006 were $0.8 million for the
     three-month period and $1.6 million for the six-month period.


                           WOLVERINE TUBE, INC.
             Condensed Consolidated Balance Sheet (Unaudited)


  In thousands                        7/1/2007   7/2/2006  12/31/2006
  ----------------------------------- --------   --------   --------
  Assets

  Cash and cash equivalents           $ 14,035   $ 15,987   $ 17,745
  Restricted cash                        3,097      5,518      5,988
  Accounts receivable                  113,693    103,464     62,529
  Inventory                            170,748    182,139    122,943
  Other current assets                  21,397     19,560     11,417
  Property, plant and equipment, net   130,459    176,341    133,259
  Other assets                         104,473     99,201    101,449
 ------------------------------------ --------   --------   --------
  Total assets                        $557,902   $602,210   $455,330
 ==================================== ========   ========   ========

  Liabilities and Stockholders'
   Equity

  Accounts payables and other
   accrued expenses                   $109,470   $124,493   $ 63,992
  Short-term borrowings                  1,514        949      1,638
  Derivative liability                   6,954     14,769      3,507
  Deferred income taxes                    123        680        880
  Pension liabilities                   32,387     36,270     28,504
  Long-term debt                       236,465    234,642    238,362
  Other liabilities                     35,092     21,044     29,271
 ------------------------------------ --------   --------   --------
  Total liabilities                    422,005    432,847    366,154
 ------------------------------------ --------   --------   --------
  Preferred stock                        1,883         --         --
  Stockholders' equity                 134,014    169,363     89,176
 ------------------------------------ --------   --------   --------

  Total liabilities and stockholders'
   equity                             $557,902   $602,210   $455,330
 ==================================== ========   ========   ========

 This press release contains references to adjusted earnings before
 interest, taxes, depreciation and amortization (EBITDA), a non-GAAP
 financial measure. The following table provides a reconciliation of
 adjusted EBITDA to net income (loss). Management believes adjusted
 EBITDA is a meaningful measure of liquidity and the Company's
 ability to service debt because it provides a measure of cash
 available for such purposes. Additionally, management provides an
 adjusted EBITDA measure so that investors will have the same
 financial information that management uses with the belief that it
 will assist investors in properly assessing the Company's
 performance on a year-over-year and quarter-over-quarter basis.

   Reconciliation of Net Income to Adjusted Earnings Before Interest,
         Taxes, Depreciation and Amortization (Unaudited)


                                  Three-month          Six-month
                                 period ended         period ended
 In thousands                 7/1/2007  7/2/2006  7/1/2007  7/2/2006
                              --------  --------  --------  --------
 Net Income                   $ 12,716  $  6,409  $ 10,566  $  4,291
 Depreciation and
  amortization                   3,621     4,356     7,201     8,614
 Interest expense, net           6,067     6,780    11,899    12,613
 Impairment of assets and
  non-cash portion of
  restructuring charges             --     1,021     1,313     1,021
 Income tax provision            1,716     2,514     2,612     1,355
                              --------  --------  --------  --------
 Earnings before interest,
  taxes, depreciation and
  amortization                  24,120    21,080    33,591    27,894
 Advisory fees and severance
  expenses                       2,405     2,119     6,085     2,106
 Non-cash gain on embedded
  derivative (mark to market)   (7,086)       --   (11,177)       --
 Restructuring charges             779        --     2,389        --
 ---------------------------  --------  --------  --------  --------
 Adjusted earnings before
  interest, taxes,
  depreciation and
  amortization                $ 20,218  $ 23,199  $ 30,888  $ 30,000
 ===========================  ========  ========  ========  ========


            

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