Wolverine Tube Reports 2007 Full Year and Fourth Quarter Results


HUNTSVILLE, Ala., March 31, 2008 (PRIME NEWSWIRE) -- Wolverine Tube, Inc. (OTCBB:WLVT) today reported results for the full year and fourth quarter of 2007. The net loss for the year ended December 31, 2007 was $97.0 million or $6.04 per common share compared to a net loss of $79.2 million or $5.26 per common share for 2006. Included in the 2007 results were $112.1 million of pre-tax restructuring and other charges.



 Fourth Quarter Highlights

 * Adjusted earnings before interest, taxes, depreciation and
   amortization ("EBITDA") of $2.4 million compared to $0.4 million in
   2006;
 * Completed shutdown of Decatur, Alabama and Booneville, Mississippi
   operations;
 * Exited domestic plumbing tube business;
 * Completed Rights' Offering with net cash proceeds of $28 million;
 * Named David A. Owen as Chief Financial Officer.

 Full year Highlights

 * Adjusted EBITDA of $45.0 million compared to $37.7 million in 2006;
 * Alpine/Plainfield $50 million convertible preferred investment in
   February 2007;
 * New Board composition with Steven S. Elbaum named Chairman and
   Harold M. Karp named President & COO;
 * Focused business model and strategy around global leadership in
   value added, heat exchange tubing, fabricated products and joining
   technologies;
 * Initiated restructuring, asset sales and related actions to align
   Wolverine's tangible and intangible assets and capital with focused
   business model and strategy.

Fourth Quarter Results

The net loss for the fourth quarter of 2007 was $106.4 million or $3.54 per common share, as compared to a net loss of $34.0 million or $2.25 per common share in the same period of 2006. Included in the 2007 and 2006 results were $97.1 million and $25.0 million in pre-tax charges, relating primarily to restructuring, adjustment to deferred tax valuation allowances, advisory fees and expenses.

Net sales for the fourth quarter of 2007 were $273.7 million, as compared to $271.6 million for the fourth quarter of 2006. Total pounds shipped in the fourth quarter of 2007 were 58.2 million pounds compared to 61.2 million pounds shipped in the fourth quarter of 2006.

Adjusted EBITDA was $2.4 million for the fourth quarter of 2007 compared to $0.4 million for the quarter ended December 31, 2006.

Full Year 2007 Results

Net sales in 2007 declined 7% to $1.2 billion from $1.3 billion in 2006, reflecting a 16% decrease in pounds shipped, partially offset by a $0.44 per pound increase in per unit selling price.

Total pounds shipped in 2007 were 275.1 million pounds compared to 326.5 million pounds in 2006. Of the total pounds shipped, approximately 217.6 million pounds and 277.7 million pounds were manufactured by the Company in 2007 and 2006, respectively. The balance of the pounds shipped by the Company was attributable to products sourced and resold to customers. The decrease in pounds shipped in 2007 was due primarily to the falling demand for industrial tube used in the residential air conditioning market, continued substitution of plastics in the residential plumbing market and the closure of our Montreal facility in late 2006.

Gross profit for 2007 was $63.6 million as compared to $46.3 million in 2006, an improvement of $17.3 million or 37%. The improvement was due primarily to improved pricing and a higher margin mix of products. 2007 EBITDA before restructuring charges was $45.0 million compared to $37.7 million for 2006.

Harold Karp, President and Chief Operating Officer, commented, "2007 was a very pivotal year for Wolverine. We concentrated on restructuring the business and improving its competitiveness. We closed two factories and exited the domestic plumbing tube business and are now focused on our value added, heat transfer tubing products, fabricated products and joining technology products in the global marketplace."

Refinancing and Liquidity

In February 2007, the Company sold 50,000 shares of Series A Convertible Preferred Stock, for $50 million to The Alpine Group, Inc. ("Alpine") and a fund managed by Plainfield Asset Management LLC ("Plainfield") pursuant to a Preferred Stock Purchase Agreement (the "Preferred Stock Purchase Agreement"). On October 25, 2007, the Company completed a common stock rights offering in which stockholders purchased 25.4 million shares of common stock, resulting in proceeds of $28 million. Additionally, under the terms of a call option described in the Preferred Stock Purchase Agreement, Alpine purchased an additional 4,620 shares of Series A Convertible Preferred Stock on January 25, 2008 for $4.6 million. During March 2008, Plainfield refinanced $38.3 million of the 7.375% Senior Notes held by it by extending the maturity date to March 28, 2009, with an increase in the interest rate to 10.5%, and Alpine purchased $10 million of Series B Convertible Preferred Stock under terms substantially similar to the Series A Convertible Preferred Stock.

In addition, during the first quarter of 2008, the Company completed the following:



 * Extended its $35 million secured revolving credit facility to
   April 28, 2009;
 * Extended its $75 million receivables sales facility to
   February 19, 2009;
 * Sold its Small Tube Products business for approximately
   $28 million, including an estimated working capital adjustment;
 * Sold 30% of Wolverine Shanghai to the Wieland Group for
   $9.6 million cash and $2.0 of estimated additional intangible
   value.

David A. Owen, Wolverine's Chief Financial Officer, stated, "The capital invested by Plainfield and Alpine, existing cash sources and credit facilities are adequate to address Wolverine's operational and debt repayment requirements for 2008."

Operations and Market Update

Mr. Karp noted, "The global high performance chiller tube markets were very strong in 2007, and Wolverine achieved record shipments in these markets in 2007. Wolverine's commercial fabricated products shipments increased 22% in 2007 which is in line with our strategy to partner more broadly with our large OEM customers in support of their efforts to improve efficiencies and reduce cost through outsourcing of their fabricated products needs. Wolverine is well positioned to support this continued growth through well established global sourcing capabilities and through its focus on capacity and efficiency improvements at our fabricated products manufacturing locations in Mexico, China, Portugal and in the USA.

"The overall North American market for residential air conditioning, heat pump and refrigeration products was down approximately 10% in 2007; however, Wolverine's inner groove tube shipments increased 6% in 2007 as a result of market share increases with many of our major customers."

Mr. Karp further stated, "Wolverine's operational improvement efforts throughout 2007 were focused on strengthening its managerial and technical talent along with establishing a continuous improvement culture. Significant operational progress was made in 2007 as our continuous improvement culture has been established through a focused implementation of lean manufacturing and six sigma initiatives, as well as new technologies to reduce cost and improve quality performance. These efforts combined with a sharpened focus on customer satisfaction resulted in enhanced key customer relationships, improved manufacturing efficiencies and strengthening the operational base from which to grow the business."

Restructuring and Other Charges

Included in the 2007 results were total pre-tax restructuring, impairment and other charges of $112.1 million in 2007, of which $90.3 million was non-cash. Comparable charges in 2006 were $65.0 million, of which $38.4 million was non-cash. The charges are listed in the following table:



 ($ Millions)                                    2007           2006
                                                -------        -------
 Facility Closures:
   Decatur, Alabama                             $ 61.0         $   --
   Booneville, Mississippi                         3.7             --
   Montreal, Quebec                                2.5           40.7
   Jackson, Tennessee                              7.1           16.5

 Advisory fees & Severance costs                   6.5            7.4
 Goodwill impairment                              30.8             --
 Other                                             0.5            0.4
                                                -------        -------
                                                $112.1         $ 65.0
                                                =======        =======

Steven S. Elbaum, Chairman, stated, "The period following the February 2007 investments by Alpine and Plainfield has been focused on redefining the Company's business strategy and installing a new management team to implement that strategy under an expanded Board of Directors. Significant restructuring activities, including the shutdown and/or sale of non-core operations, are required to achieve a competitive and properly aligned operating base. These actions and the financial and accounting consequences are complex given Wolverine's difficult history and its complicated array of assets, businesses and obligations. We expect Wolverine's business model and reported results to be clearer during the second half of 2008, and the Company's focus and progress will also be more clear and measurable."

ABOUT WOLVERINE TUBE, INC.

Wolverine Tube, Inc. is a world-class quality partner, providing its customers with copper and copper alloy tube, fabricated products, 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. 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 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            Twelve-month
  In thousands, except       period ended            period ended
   per share data      12/31/2007  12/31/2006  12/31/2007  12/31/2006
                       ----------- ----------- ----------- -----------

  Net sales            $  273,682    $271,632  $1,228,651  $1,315,876
  Cost of goods sold      265,572     267,466   1,165,083   1,269,603
 --------------------  ----------- ----------- ----------- -----------
  Gross profit              8,110       4,166      63,568      46,273

  Selling, general and
   administrative
   expenses                 8,653       7,111      32,461      30,634
  Advisory fees and
   severance expenses         356       3,528       6,271       7,434
  Restructuring charges    65,963       2,031      75,097      57,609
 --------------------  ----------- ----------- ----------- -----------
  Operating (loss)        (66,862)     (8,504)    (50,261)    (49,404)

  Loss on sale of
   receivables                352         706       2,531       4,397
  Interest and
   amortization
   expense, net             5,846       5,986      23,515      23,317
  Embedded derivatives
   mark to market              --          --     (15,755)         --
  Other expense, net          310         475       2,605         477
 --------------------  ----------- ----------- ----------- -----------
  (Loss) from
   continuing
   operations before
   income taxes           (73,370)    (15,671)    (63,157)    (77,595)

  Income tax provision      3,440      18,778       8,516       9,385
                       ----------- ----------- ----------- -----------
  Net (loss) from
   continuing operations  (76,810)    (34,449)    (71,673)    (86,980)
  Income/(loss) from
   discontinued
   operations, net of
   income taxes           (29,540)        453     (25,357)      7,756
 --------------------  ----------- ----------- ----------- -----------
  Net (loss)             (106,350)    (33,996)    (97,030)    (79,224)

  Accretion of
   convertible preferred
   stock and beneficial
   conversion
   feature                  1,256          --       4,618          --
  Less: Preferred stock
   dividends, including
   $9,618 million
   non-cash deemed
   dividends recognized
   in the first quarter
   of 2007                  1,062          --      13,284          --
 --------------------  ----------- ----------- ----------- -----------
  Net (loss) applicable
   to common shares    $ (108,668) $  (33,996) $ (114,932) $  (79,224)
                       =========== =========== =========== ===========
 --------------------  ----------- ----------- ----------- -----------
  Net (loss) income
   per share (1):
  Basic:
    Continuing
     operations        $    (2.58) $    (2.28) $    (4.71) $    (5.77)
    Discontinued
     operations             (0.96)       0.03       (1.33)       0.51
  Net (loss) per
   common share
   - Basic             $    (3.54) $    (2.25) $    (6.04) $    (5.26)

  Diluted:
    Continuing
     operations        $    (2.58) $    (2.28) $    (4.71) $    (5.77)
    Discontinued
     operations             (0.96)       0.03       (1.33)       0.51
  Net (loss) per common
   share - Diluted     $    (3.54) $    (2.25) $    (6.04) $    (5.26)

  Common shares
   outstanding:
  Basic                    30,667      15,081      19,038      15,071
  Diluted                  30,667      15,081      19,038      15,071
 --------------------  ----------- ----------- ----------- -----------
 (1) For the quarter ended December 31, 2007, basic EPS is calculated,
 in accordance with GAAP, by using the two-class method. Both the
 three and twelve month periods reported ended with net losses
 applicable to common shares. As preferred shares do not share in the
 losses of our business, 100% of the net loss is allocable to our
 common 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. As a result of the closing of our Montreal, Quebec 
 rod and bar facility, we exited the rod, bar and other products 
 segment at the end of 2006. 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             Twelve-month
                              period ended            period ended
 In thousands           12/31/2007  12/31/2006  12/31/2007  12/31/2006
                        ----------  ----------  ----------  ----------
  Pounds Shipped:
  Commercial                44,616      45,526     203,236     230,377
  Wholesale                 13,577      12,454      71,833      79,114
  Rod, bar, and
   other (1)                    --       3,267          --      17,000
 ---------------------- ----------  ----------  ----------  ----------
  Total pounds shipped      58,193      61,247     275,069     326,491
 ====================== ==========  ==========  ==========  ==========

  Net sales:
  Commercial            $  215,437  $  210,209  $  926,518  $  947,750
  Wholesale                 58,245      49,250     302,133     310,993
  Rod, bar, and
   other (1)                            12,173          --      57,133
 ---------------------- ----------  ----------  ----------  ----------
  Total net sales       $  273,682  $  271,632  $1,228,651  $1,315,876
 ====================== ==========  ==========  ==========  ==========

  Gross Profit:
  Commercial            $    4,013  $    3,394  $   37,327  $   26,415
  Wholesale                  4,097         555      26,241      22,656
  Rod, bar, and
   other (1)                               217          --      (2,798)
 ---------------------- ----------  ----------  ----------  ----------
  Total gross profit    $    8,110  $    4,166  $   63,568  $   46,273
 ====================== ==========  ==========  ==========  ==========
  (1) The Netherlands distribution business is included in the
      Commercial segment in both 2007 and 2006.
  The net sales reclassified in 2006 were $8.5 million for the three-
  month period and $25.6 million for the twelve-month period. 
  The gross profits reclassified in 2006 were $1.1 million for the three-
  month period and $3.7 million for the twelve-month period.


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


  In thousands                                   12/31/2007 12/31/2006
 ---------------------------------------------    ---------  ---------

  Assets

  Cash and cash equivalents                        $63,303   $ 17,354
  Restricted cash                                    2,126      5,629
  Accounts receivable, net                         107,375     62,529
  Inventory                                        110,768    122,943
  Assets held for sale                              43,001     11,135
  Other current assets                              12,536     11,417
  Property, plant and equipment, net                65,762    133,259
  Other assets                                      51,802     91,064
 ---------------------------------------------    -------------------
  Total assets                                    $456,673   $455,330
 =============================================    ===================

  Liabilities and Stockholders' Equity

  Accounts payables and other accrued expenses     $82,858   $ 67,499
  Short-term borrowings                             90,939      1,638
  Liabilities held for sale                          1,853         --
  Deferred income taxes                                677        880
  Pension liabilities                               17,616     28,504
  Long-term debt                                   146,021    238,362
  Other liabilities                                 43,410     29,271
 ---------------------------------------------    -------------------
  Total liabilities                                383,374    366,154
 ---------------------------------------------    -------------------
  Preferred stock                                    4,393         --
  Total stockholders' equity                        68,906     89,176
 ---------------------------------------------    -------------------

  Total liabilities and stockholders' equity      $456,673   $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 (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            Twelve-month
                              period ended           period ended
  In thousands          12/31/2007  12/31/2006  12/31/2007  12/31/2006
                        ----------  ----------  ----------  ----------
  Net loss from
   operations           $(106,350)  $ (33,996)  $ (97,030)  $ (79,224)
  Depreciation and
   amortization             2,720       3,995      13,633      16,977
  Interest expense, net
   (including loss on
   sale of receivables)     5,552       6,050      23,555      25,570
  Impairment of assets
   and non-cash portion
   of restructuring
   charges                 83,975         534      90,318      38,396
  Income tax provision      3,440      18,778       8,516       9,385
                        ----------  ----------  ----------  ----------
  Earnings before
   interest, taxes,
   depreciation and
   amortization           (10,663)     (4,639)     38,992      11,104
  Advisory fees and
   severance expenses         356       3,528       6,271       7,434
  Non-cash gain on
   embedded derivative
   (mark to market)            --          --     (15,755)         --
  Other restructuring
   charges                 12,745       1,496      15,536      19,205
 ---------------------------------  ----------  ----------  ----------
 Adjusted earnings
  before interest,
  taxes, depreciation
  and amortization      $   2,438   $     385   $  45,044   $  37,743
 =================================  ==========  ==========  ==========

            

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