EXHIBIT 99.1
WOLVERINE TUBE, INC.
Contact: James E. Deason
Executive Vice President
Chief Financial Officer
(256) 580-3510
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WOLVERINE STRENGTHENS LIQUIDITY POSITION
REPATRIATES CASH FROM CHINA, PAYS DOWN DEBT
HUNTSVILLE, ALABAMA, (FEBRUARY 28, 2005) - Wolverine Tube, Inc. (NYSE:WLV) today
announced that it had strengthened its liquidity position by repatriating
approximately $10.2 million in cash from its Chinese subsidiary under the
American Jobs Creation Act of 2004, and by increasing the amount of borrowing
capacity available to it under its secured revolving credit facility. Of the
cash received from China, $8 million was used to pay down some of the
outstanding borrowings under its secured revolving credit facility. The
remaining proceeds will be used for future debt reductions or capital
expenditures. Borrowings under the secured revolving credit facility now stand
at $9.5 million, thereby increasing the amount of available borrowings to
Wolverine to $20.5 million as of February 28, 2005, subject to a $2.0 million
excess availability requirement.
Commenting on the announcement, Jed Deason, Executive Vice President & Chief
Financial Officer said "Given the persistent rise in metal prices over the past
18 months, especially copper, this transaction continues our strategy of
strengthening our liquidity position." Deason continued, "With this cash from
China, and the recent increase in the borrowing limit on our secured revolving
credit facility to $40 million, we believe that we have ample liquidity
available to meet our working capital requirements. Our cash needs this year
continue to be in line with normal business activities and expectations, taking
into consideration metal prices. We are also continuing discussions with our
commercial banks regarding new financing arrangements to provide for additional
liquidity that we believe will be available to us in approximately the next
forty-five to sixty days."
The American Jobs Creation Act of 2004 provides for a special one-time 85%
dividends received deduction on the repatriation of certain foreign earnings. In
connection with the repatriation of funds from its Chinese operations, Wolverine
will take a one-time tax charge for US federal income taxes of approximately
$0.5 million in the first quarter 2005.
ABOUT WOLVERINE TUBE, INC. - Wolverine Tube, Inc. is a world-class quality
partner, providing its customers with copper and copper alloy tube, fabricated
products, metal joining products as well as copper and copper alloy rod, bar &
other 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. Statements that are not historical facts,
including statements using such terms as "may", "will", "expect", "believe",
"plan", "anticipate" and other similar terms and concepts, are forward-looking
statements. This press release contains forward-looking statements regarding
Wolverine's expected liquidity position (including its use of repatriated cash,
availability under its secured revolving credit facility and expectations about
future financing arrangements), as well as the expected tax effects of the cash
repatriation. Such statements are based on management's current expectations,
estimates, assumptions and projections about Wolverine's business and other
information currently available, and 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. Wolverine 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
the forward-looking statements contained in this press release, factors that
could affect actual results include, without limitation, Wolverine's ability to
manage available cash and secured revolving credit facility availability to fund
working capital requirements, anticipated capital expenditures and debt
reduction; Wolverine's ability to negotiate and consummate alternative sources
of financing within the expected timeframe; the effect of the issuance of final
Treasury regulations with respect to the American Jobs Creation Act of 2004; raw
material and energy costs and Wolverine's ability to effectively hedge these
costs, fluctuation in the COMEX copper price, the effect of currency
fluctuations, the levels of commercial and residential construction activity,
competitive products and pricing, the effect of regulatory matters, the mix and
seasonality of geographic and product revenues, the effect of general economic
conditions and world events (such as terrorism), and other risks and
uncertainties discussed in Wolverine's Annual Report on Form 10-K and other
reports filed from time to time with the Securities and Exchange Commission.