<PAGE>
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
 
                       SECURITIES AND EXCHANGE COMMISSION
                             WASHINGTON, D.C. 20549
                            ------------------------
 
                                   FORM 10-Q
 
/X/ QUARTERLY REPORT PURSUANT TO SECTION 13 OF THE SECURITIES EXCHANGE ACT OF
    1934
  FOR THE QUARTERLY PERIOD ENDED JANUARY 31, 1998
 
/ / TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE
    ACT OF 1934
  FOR THE TRANSITION PERIOD FROM                  TO
 
                         COMMISSION FILE NUMBER 1-9078
 
                            ------------------------
 
                             THE ALPINE GROUP, INC.
 
             (Exact name of registrant as specified in its charter)
 
<TABLE>
<S>                              <C>
           DELAWARE                 22-1620387
 (State or other jurisdiction    (I.R.S. Employer
              of                  Identification
incorporation or organization)         No.)
 
        1790 BROADWAY               10019-1412
      NEW YORK, NEW YORK            (Zip code)
    (Address of principal
      executive offices)
</TABLE>
 
        Registrant's telephone number, including area code 212-757-3333
 
                            ------------------------
 
    Indicate by check mark whether the Registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months and (2) has been subject to such filing
requirements for the past 90 Days.    Yes /X/    No / /
 
    INDICATE THE NUMBER OF SHARES OUTSTANDING OF EACH OF THE ISSUER'S CLASSES OF
COMMON STOCK, AS OF THE LATEST PRACTICABLE DATE.
 
<TABLE>
<CAPTION>
                                       OUTSTANDING AT MARCH 17,
               CLASS                             1998
-----------------------------------  ----------------------------
<S>                                  <C>
   Common Stock, $.10 Par Value               16,930,789
</TABLE>
 
--------------------------------------------------------------------------------
--------------------------------------------------------------------------------
<PAGE>
                         PART I. FINANCIAL INFORMATION
 
ITEM 1. FINANCIAL STATEMENTS
 
    The accompanying unaudited condensed consolidated financial statements have
been prepared in accordance with the requirements of Form 10-Q and, therefore,
do not include all information and footnotes required by generally accepted
accounting principles. However, in the opinion of management, all adjustments
(which, except as disclosed elsewhere herein, consist only of normal recurring
accruals) necessary for a fair presentation of the results of operations for the
relevant periods have been made. Results for the interim periods are not
necessarily indicative of the results to be expected for the year. These
financial statements should be read in conjunction with the summary of
significant accounting policies and the notes to the consolidated financial
statements included in the Company's Annual Report on Form 10-K for the year
ended April 30, 1997.
 
                                       2
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                     CONDENSED CONSOLIDATED BALANCE SHEETS
 
<TABLE>
<CAPTION>
                                                                                                       JANUARY 31,
                                                                                                          1998
                                                                                           APRIL 30,   -----------
                                                                                              1997
                                                                                           ----------  (UNAUDITED)
                                                                                               (IN THOUSANDS)
<S>                                                                                        <C>         <C>
                                                      ASSETS
Current assets:
  Cash and cash equivalents..............................................................  $   21,606   $   9,321
  Marketable securities..................................................................      15,807      14,377
  Accounts receivable (less allowance for doubtful accounts of:
    April, $2,631; January $3,267).......................................................     119,506     152,562
  Inventories............................................................................     119,234     140,839
  Other current assets...................................................................      17,321      16,086
                                                                                           ----------  -----------
      Total current assets...............................................................     293,474     333,185
Property, plant and equipment, net.......................................................     155,484     186,248
Long-term investments and other assets...................................................      32,388      38,587
Goodwill (less accumulated amortization: April, $8,036; January$11,183)..................     106,878     200,026
                                                                                           ----------  -----------
      Total assets.......................................................................  $  588,224   $ 758,046
                                                                                           ----------  -----------
                                                                                           ----------  -----------
                                       LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
  Accounts payable.......................................................................  $   85,906   $  93,695
  Accrued expenses.......................................................................      69,948      93,818
  Current portion of long-term debt......................................................       2,653       7,416
                                                                                           ----------  -----------
      Total current liabilities..........................................................     158,507     194,929
Long-term debt, less current portion.....................................................     308,171     379,831
Other long-term liabilities..............................................................      45,026      67,062
Minority interest in subsidiary..........................................................      22,094      44,968
                                                                                           ----------  -----------
      Total liabilities..................................................................     533,798     686,790
                                                                                           ----------  -----------
Commitments and contingencies
Stockholders' equity:
  9% cumulative convertible preferred stock at liquidation value.........................       1,927         427
  Common stock, $.10 par value; authorized 25,000,000 shares; issued: April, 18,834,256
    shares; January, 19,573,639 shares...................................................       1,883       1,957
  Capital in excess of par value.........................................................     113,459     133,579
  Cumulative translation adjustment......................................................      (1,316)       (170)
  Unrealized loss on securities available for sale, net of deferred tax..................        (716)       (716)
  Accumulated deficit....................................................................     (48,048)    (37,553)
                                                                                           ----------  -----------
                                                                                               67,189      97,524
Shares of common stock in treasury, at cost: April, 1,612,047 shares; January, 2,624,732
  shares.................................................................................     (12,130)    (25,310)
Receivable from stockholders.............................................................        (633)       (958)
                                                                                           ----------  -----------
  Total stockholders' equity.............................................................      54,426      71,256
                                                                                           ----------  -----------
      Total liabilities and stockholders' equity.........................................  $  588,224   $ 758,046
                                                                                           ----------  -----------
                                                                                           ----------  -----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       3
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                  (UNAUDITED)
 
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)
 
<TABLE>
<CAPTION>
                                                                                              THREE MONTHS ENDED
                                                                                                 JANUARY 31,
                                                                                            ----------------------
<S>                                                                                         <C>         <C>
                                                                                               1997        1998
                                                                                            ----------  ----------
Net sales.................................................................................  $  121,172  $  206,504
Cost of goods sold........................................................................      99,587     169,077
                                                                                            ----------  ----------
  Gross profit............................................................................      21,585      37,427
Selling, general and administrative expense...............................................       8,480      17,859
Restructuring charge......................................................................      --           3,626
Amortization of goodwill..................................................................         767       1,067
                                                                                            ----------  ----------
  Operating income........................................................................      12,338      14,875
Interest income...........................................................................         782       1,048
Interest (expense)........................................................................      (4,345)     (6,959)
Other income, net.........................................................................         362          70
                                                                                            ----------  ----------
  Income before income tax expense and minority interest..................................       9,137       9,034
Provision for income taxes................................................................      (3,749)     (3,500)
                                                                                            ----------  ----------
  Income before minority interest.........................................................       5,388       5,534
Minority interest in earnings of subsidiary...............................................      (3,059)     (4,212)
                                                                                            ----------  ----------
  Income before extraordinary (loss)......................................................       2,329       1,322
Extraordinary (loss) on early extinguishment of debt......................................      (5,977)     --
                                                                                            ----------  ----------
  Net income (loss).......................................................................      (3,648)      1,322
Preferred stock dividends.................................................................         (69)         (9)
                                                                                            ----------  ----------
  Net income (loss) applicable to common stock............................................  $   (3,717) $    1,313
                                                                                            ----------  ----------
                                                                                            ----------  ----------
  Net income (loss) per share of common stock:
  Basic:
    Income before extraordinary (loss)....................................................  $     0.13  $     0.08
    Extraordinary (loss) on early extinguishment of debt..................................       (0.34)     --
                                                                                            ----------  ----------
      Net income (loss) per basic share of common stock...................................  $    (0.21) $     0.08
                                                                                            ----------  ----------
                                                                                            ----------  ----------
  Diluted:
    Income before extraordinary (loss)....................................................  $     0.12  $     0.07
    Extraordinary (loss) on early extinguishment of debt..................................       (0.31)     --
                                                                                            ----------  ----------
    Net income (loss) per diluted share of common stock...................................  $    (0.19) $     0.07
                                                                                            ----------  ----------
                                                                                            ----------  ----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       4
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS
 
                                  (UNAUDITED)
 
                     (IN THOUSANDS, EXCEPT PER SHARE DATA)
 
<TABLE>
<CAPTION>
                                                                                              NINE MONTHS ENDED
                                                                                                 JANUARY 31,
                                                                                            ----------------------
<S>                                                                                         <C>         <C>
                                                                                               1997        1998
                                                                                            ----------  ----------
Net sales.................................................................................  $  426,638  $  646,532
Cost of goods sold........................................................................     353,730     525,265
                                                                                            ----------  ----------
  Gross profit............................................................................      72,908     121,267
Selling, general and administrative expense...............................................      29,480      52,215
Restructuring charge......................................................................      --           3,626
Amortization of goodwill..................................................................       2,292       3,160
                                                                                            ----------  ----------
  Operating income........................................................................      41,136      62,266
Interest income...........................................................................       1,123       2,603
Interest (expense)........................................................................     (17,954)    (21,686)
Gain on sale of subsidiary stock..........................................................      80,397      --
Other income, net.........................................................................         357         119
                                                                                            ----------  ----------
  Income before income tax expense and minority interest..................................     105,059      43,302
Provision for income taxes................................................................     (48,151)    (17,220)
                                                                                            ----------  ----------
  Income before minority interest.........................................................      56,908      26,082
Minority interest in earnings of subsidiary...............................................      (3,392)    (14,307)
                                                                                            ----------  ----------
  Income before extraordinary (loss)......................................................      53,516      11,775
Extraordinary (loss) on early extinguishment of debt......................................     (19,389)     (1,221)
                                                                                            ----------  ----------
  Net income..............................................................................      34,127      10,554
Preferred stock dividends.................................................................        (537)        (59)
Preferred stock redemption premium........................................................      (5,195)     --
                                                                                            ----------  ----------
  Net income applicable to common stock...................................................  $   28,395  $   10,495
                                                                                            ----------  ----------
                                                                                            ----------  ----------
Net income per share of common stock:
  Basic:
    Income before extraordinary (loss)....................................................  $     2.93  $     0.69
    Extraordinary (loss) on early extinguishment of debt..................................       (1.07)      (0.07)
    Preferred stock redemption premium....................................................       (0.29)     --
                                                                                            ----------  ----------
      Net income per basic share of common stock..........................................  $     1.57  $     0.62
                                                                                            ----------  ----------
                                                                                            ----------  ----------
  Diluted:
    Income before extraordinary (loss)....................................................  $     2.63  $     0.62
    Extraordinary (loss) on early extinguishment of debt..................................       (0.95)      (0.06)
    Preferred stock redemption premium....................................................       (0.26)     --
                                                                                            ----------  ----------
      Net income per diluted share of common stock........................................  $     1.42  $     0.55
                                                                                            ----------  ----------
                                                                                            ----------  ----------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       5
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
            CONDENSED CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY
                   FOR THE NINE MONTHS ENDED JANUARY 31, 1998
                                  (UNAUDITED)
                      (IN THOUSANDS, EXCEPT SHARE AMOUNTS)
<TABLE>
<CAPTION>
                                                                                    9% CUMULATIVE                      UNREALIZED
                                                                                     CONVERTIBLE                        (LOSS) ON
                                               COMMON STOCK         CAPITAL        PREFERRED STOCK         FOREIGN     SECURITIES
                                          ----------------------   IN EXCESS   ------------------------   CURRENCY      AVAILABLE
                                           SHARES      AMOUNT       OF PAR       SHARES       AMOUNT     TRANSLATION    FOR SALE
                                          ---------  -----------  -----------  -----------  -----------  -----------  -------------
<S>                                       <C>        <C>          <C>          <C>          <C>          <C>          <C>
Balance at April 30, 1997...............  18,834,256  $   1,883    $ 113,459        1,927    $   1,927    $  (1,316)    $    (716)
Conversion of preferred stock...........    189,873          19        1,481       (1,500)      (1,500)
Exercise of stock options...............    437,680          44        2,093
Employee stock purchase plan............     18,697           2          157
Purchase of treasury stock..............
Compensation expense related to stock
  options and grants....................     93,133           9        1,167
Dividends on preferred stock............
Issuance of minority equity interest in
  subsidiary............................                              15,222
Foreign currency translation............                                                                      1,146
Loan to stockholders....................
Net income for the nine months ended
  January 31, 1998......................
                                          ---------  -----------  -----------  -----------  -----------  -----------        -----
Balance at January 31, 1998.............  19,573,639  $   1,957    $ 133,579          427    $     427    $    (170)    $    (716)
                                          ---------  -----------  -----------  -----------  -----------  -----------        -----
                                          ---------  -----------  -----------  -----------  -----------  -----------        -----
 
<CAPTION>
 
                                                           TREASURY STOCK       RECEIVABLE
                                          ACCUMULATED   --------------------       FROM
                                            DEFICIT      SHARES     AMOUNT     STOCKHOLDERS      TOTAL
                                          ------------  ---------  ---------  ---------------  ---------
<S>                                       <C>           <C>        <C>        <C>              <C>
Balance at April 30, 1997...............   $  (48,048)  (1,612,047) $ (12,130)    $    (633)   $  54,426
Conversion of preferred stock...........                                                          --
Exercise of stock options...............                                                           2,137
Employee stock purchase plan............                                                             159
Purchase of treasury stock..............                (1,012,685)   (13,180)                   (13,180)
Compensation expense related to stock
  options and grants....................                                                           1,176
Dividends on preferred stock............          (59)                                               (59)
Issuance of minority equity interest in
  subsidiary............................                                                          15,222
Foreign currency translation............                                                           1,146
Loan to stockholders....................                                              (325)         (325)
Net income for the nine months ended
  January 31, 1998......................       10,554                                             10,554
                                          ------------  ---------  ---------         -----     ---------
Balance at January 31, 1998.............   $  (37,553)  (2,624,732) $ (25,310)    $    (958)   $  71,256
                                          ------------  ---------  ---------         -----     ---------
                                          ------------  ---------  ---------         -----     ---------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       6
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
                     CONSOLIDATED STATEMENTS OF CASH FLOWS
 
                                  (UNAUDITED)
                                 (IN THOUSANDS)
 
<TABLE>
<CAPTION>
                                      NINE MONTHS ENDED
                                         JANUARY 31,
                                     -------------------
                                       1997      1998
                                     --------  ---------
<S>                                  <C>       <C>
Cash flows from operating
  activities:
  Net income before extraordinary
    item...........................  $ 53,516  $  11,775
  Adjustments to reconcile net
    income to net cash provided by
    operating activities:
    Depreciation and
      amortization.................    10,523     15,950
    Amortization of deferred debt
      issuance costs and accretion
      of debt discount.............     1,699      1,651
    Compensation expense related to
      stock options and grants.....     1,727      1,176
    Minority interest in earnings
      of subsidiary................     3,392     14,307
    Gain on sale of subsidiary
      stock, net of income taxes...   (41,427)    --
    Provision for deferred taxes...     9,651          6
    Change in assets and
      liabilities, net of effects
      from companies acquired:
      Accounts receivable..........     9,898     (8,109)
      Inventories..................     7,410      6,580
      Other current and non-current
        assets.....................     5,514       (879)
      Accounts payable and accrued
        expenses...................   (14,396)     1,362
      Other long-term
        liabilities................       497        (90)
                                     --------  ---------
Cash provided by operating
  activities.......................    48,004     43,729
                                     --------  ---------
 
Cash flows from investing
  activities:
  Acquisition, net of cash.........     --      (101,424)
  Capital expenditures.............    (8,790)   (15,379)
  Investment in marketable
    securities.....................      (465)     1,430
  Advances to PolyVision
    Corporation....................    (1,695)      (140)
  Purchase of subsidiary common
    stock..........................    (8,055)    --
  Net proceeds from the sale of
    assets.........................     2,003      5,726
                                     --------  ---------
Cash used for investing
  activities.......................   (17,002)  (109,787)
                                     --------  ---------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       7
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
               CONSOLIDATED STATEMENTS OF CASH FLOWS (CONTINUED)
 
                                  (UNAUDITED)
                                 (IN THOUSANDS)
 
<TABLE>
<CAPTION>
                                      NINE MONTHS ENDED
                                         JANUARY 31,
                                     --------------------
                                       1997       1998
                                     ---------  ---------
<S>                                  <C>        <C>
Cash flows from financing
  activities:
  Borrowings (repayments) under
    revolving credit facilities,
    net............................  $ 102,146  $ (28,083)
  Long-term borrowings.............     10,000    115,000
  Repayments of long-term
    borrowings.....................   (144,745)   (17,696)
  Proceeds from sale of stock of
    subsidiary, net of current
    income tax.....................     62,672     --
  Proceeds from exercise of stock
    options........................        713      2,137
  Redemption of preferred stock....    (15,590)    --
  Purchase of treasury shares......     (7,331)   (13,180)
  Dividends on subsidiary common
    stock..........................     --         (1,011)
  Dividends on preferred stock.....       (537)       (59)
  Capitalized financing costs......     (5,352)    (3,335)
                                     ---------  ---------
Cash provided by financing
  activities.......................      1,976     53,773
                                     ---------  ---------
Net increase (decrease) in cash and
  cash equivalents.................     32,978    (12,285)
Cash and cash equivalents at
  beginning of period..............      1,119     21,606
                                     ---------  ---------
Cash and cash equivalents at end of
  period...........................  $  34,097  $   9,321
                                     ---------  ---------
                                     ---------  ---------
 
Supplemental disclosures:
  Cash paid for interest...........  $  21,090  $  21,496
                                     ---------  ---------
                                     ---------  ---------
  Cash paid for income taxes.......  $  17,973  $  21,910
                                     ---------  ---------
                                     ---------  ---------
  Non cash financing activity:
    Exchange of preferred stock for
      common stock:
      Common stock issued..........  $   1,000  $   1,500
                                     ---------  ---------
                                     ---------  ---------
      Preferred stock redeemed.....  $   1,000  $   1,500
                                     ---------  ---------
                                     ---------  ---------
  Acquisition of business:
    Assets, net of cash acquired...             $ 186,920
    Issuance of minority equity
      interest in subsidiary.......               (34,792)
    Liabilities assumed............               (50,704)
                                     ---------  ---------
    Net cash (paid)................             $(101,424)
                                     ---------  ---------
                                     ---------  ---------
</TABLE>
 
  The accompanying notes are an integral part of these condensed consolidated
                             financial statements.
 
                                       8
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
              NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
1. BASIS OF PRESENTATION
 
    The accompanying unaudited condensed consolidated financial statements
include the accounts of The Alpine Group, Inc. and its majority-owned
subsidiaries ("Alpine" or the "Company"). Certain reclassifications have been
made to the prior period presentation to conform to the current period
presentation.
 
2. INVENTORIES
 
    The components of inventories are:
 
<TABLE>
<CAPTION>
                                                                       APRIL 30,   JANUARY 31,
                                                                         1997         1998
                                                                      -----------  -----------
<S>                                                                   <C>          <C>
                                                                           (IN THOUSANDS)
Raw materials.......................................................   $  32,894    $  45,918
Work in process.....................................................      19,211       20,863
Finished goods......................................................      67,129       74,058
                                                                      -----------  -----------
                                                                       $ 119,234    $ 140,839
                                                                      -----------  -----------
                                                                      -----------  -----------
</TABLE>
 
3. EARNINGS PER SHARE
<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED JANUARY 31,      NINE MONTHS ENDED JANUARY 31,
                                                                           1998                               1998
                                                             ---------------------------------  ---------------------------------
<S>                                                          <C>        <C>        <C>          <C>        <C>        <C>
                                                                           (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
<CAPTION>
                                                                                    PER SHARE                          PER SHARE
                                                              INCOME     SHARES      AMOUNT      INCOME     SHARES      AMOUNT
                                                             ---------  ---------  -----------  ---------  ---------  -----------
<S>                                                          <C>        <C>        <C>          <C>        <C>        <C>
Income attributable to common stock before extraordinary
  (loss)...................................................  $   1,322                          $  11,775
Less: preferred stock dividends............................         (9)                               (59)
                                                             ---------                          ---------
Basic earnings per common share............................  $   1,313     16,990   $    0.08   $  11,716     16,995   $    0.69
                                                                                        -----                              -----
                                                                                        -----                              -----
Dilutive impact of stock options, warrants and grants......     --          2,118                  --          1,888
Convertible preferred stock................................          9         82                      59        148
                                                             ---------  ---------               ---------  ---------
Diluted earnings per common share..........................  $   1,322     19,190   $    0.07   $  11,775     19,031   $    0.62
                                                             ---------  ---------       -----   ---------  ---------       -----
                                                             ---------  ---------       -----   ---------  ---------       -----
</TABLE>
 
                                       9
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
3. EARNINGS PER SHARE (CONTINUED)
<TABLE>
<CAPTION>
                                                              THREE MONTHS ENDED JANUARY 31,      NINE MONTHS ENDED JANUARY 31,
                                                                           1997                               1997
                                                             ---------------------------------  ---------------------------------
<S>                                                          <C>        <C>        <C>          <C>        <C>        <C>
                                                                           (IN THOUSANDS, EXCEPT PER SHARE AMOUNTS)
 
<CAPTION>
                                                                                    PER SHARE                          PER SHARE
                                                              INCOME     SHARES      AMOUNT      INCOME     SHARES      AMOUNT
                                                             ---------  ---------  -----------  ---------  ---------  -----------
<S>                                                          <C>        <C>        <C>          <C>        <C>        <C>
Income attributable to common stock before extraordinary
  (loss)...................................................  $   2,329                          $  53,516
Less: preferred stock dividends............................        (69)                              (537)
                                                             ---------                          ---------
Basic earnings per common share............................  $   2,260     17,649   $    0.13   $  52,979     18,068   $    2.93
                                                                                        -----                              -----
                                                                                        -----                              -----
Dilutive impact of stock options, warrants and grants......     --            839                  --            548
Convertible preferred stock................................         69        543                     537      1,723
                                                             ---------  ---------               ---------  ---------
Diluted earnings per common share..........................  $   2,329     19,031   $    0.12   $  53,516     20,339   $    2.63
                                                             ---------  ---------       -----   ---------  ---------       -----
                                                             ---------  ---------       -----   ---------  ---------       -----
</TABLE>
 
    Basic earnings per common share were computed by dividing net income by the
weighted average number of shares of common stock outstanding during the period.
Diluted earnings per common share were determined assuming that stock options
outstanding were converted under the treasury stock method and that the weighted
average number of the convertible preferred stock outstanding during the period
was assumed to be converted at the beginning of each respective fiscal period.
The Company has retroactively adopted SFAS No. 128, "Earnings per Share,"
effective with its quarter ended January 31, 1998. As a result, the Company's
reported earnings per share for the periods ended January 31, 1997 were
restated.
 
    The effect of the SFAS No. 128 accounting change on previously reported
earnings per share (EPS) data was as follows:
 
<TABLE>
<CAPTION>
                                                                            THREE MONTHS ENDED JANUARY 31, 1997
                                                                         -----------------------------------------
<S>                                                                      <C>            <C>            <C>
                                                                          PRIMARY EPS     EFFECT OF     BASIC EPS
                                                                          AS REPORTED   SFAS NO. 128   AS RESTATED
                                                                         -------------  -------------  -----------
Income before extraordinary (loss).....................................    $    0.12      $    0.01     $    0.13
Extraordinary (loss) on early extinguishment of debt...................        (0.32)         (0.02)        (0.34)
                                                                              ------         ------    -----------
Net (loss) per share of common stock...................................    $   (0.20)     $   (0.01)    $   (0.21)
                                                                              ------         ------    -----------
                                                                              ------         ------    -----------
</TABLE>
 
<TABLE>
<CAPTION>
                                                                            NINE MONTHS ENDED JANUARY 31, 1997
                                                                         -----------------------------------------
<S>                                                                      <C>            <C>            <C>
                                                                          PRIMARY EPS     EFFECT OF     BASIC EPS
                                                                          AS REPORTED   SFAS NO. 128   AS RESTATED
                                                                         -------------  -------------  -----------
Income before extraordinary loss.......................................    $    2.85      $    0.08     $    2.93
Extraordinary (loss) on early extinguishment ofdebt....................        (1.04)         (0.03)        (1.07)
Preferred stock redemption premium.....................................        (0.28)         (0.01)        (0.29)
                                                                              ------         ------    -----------
Net income per share of common stock...................................    $    1.52      $    0.05     $    1.57
                                                                              ------         ------    -----------
                                                                              ------         ------    -----------
</TABLE>
 
                                       10
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
4. ACQUISITION OF AMERICAN PREMIER HOLDINGS, INC.
 
    On January 30, 1998, Refraco Inc. ("Refraco"), a wholly-owned subsidiary of
Alpine, acquired American Premier Holdings, Inc. ("APHI"), a manufacturer and
distributor of refractory products in the United States and Canada, through the
merger of APHI with and into Refraco. The consideration paid by the Company in
the merger amounted to $134.9 million and consisted of (i) the payment of $31.7
million in cash to the stockholders of APHI, (ii) the repayment or assumption of
$68.4 million of indebtedness of APHI, and (iii) the issuance to the
stockholders of APHI of shares representing 16.6% of the issued and outstanding
common stock of Refraco. In connection with the APHI acquisition, Refraco and
its principal wholly-owned subsidiaries entered into an Amended and Restated
Credit Agreement (the "Refraco Credit Agreement") which provides for an increase
in total borrowing availability under such facility from $130.0 to $260.0
million. Upon consummation of the APHI acquisition, incremental borrowings of
$115.0 million were drawn under the Refraco Credit Agreement and were used to
(i) pay the cash portion of the aforementioned purchase price, (ii) repay
certain APHI indebtedness, (iii) repay existing outstanding bank debt and (iv)
pay related transaction expenses (see Note 6 for a description of the Refraco
Credit Agreement).
 
    The acquisition has been accounted for using the purchase method and,
accordingly, the results of operations of APHI will be included in the
consolidated financial statements on a prospective basis from the date of
acquisition. As such, the results of operations of APHI are not reflected in the
accompanying consolidated statements of operations for the periods ended January
31, 1998 and 1997.
 
    The purchase price has been allocated based upon estimated fair values of
assets and liabilities at the date of acquisition, and is subject to adjustment.
The excess of the purchase price over the net assets acquired was approximately
$90.9 million and is being amortized on a straight line basis over 40 years.
 
PRO FORMA FINANCIAL DATA
 
    Unaudited condensed pro forma results of operations, which give effect to
the APHI acquisition and the acquisition of Hepworth Refractories (Holdings)
Limited (see Note 6 to the Company's Annual Report on Form 10-K for the year
ended April 30, 1997) as if both transactions had occurred on May 1, 1996, are
presented below. The pro forma amounts reflect acquisition related purchase
accounting adjustments, including adjustments to depreciation and amortization
expense and interest expense on acquisition debt
 
                                       11
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
4. ACQUISITION OF AMERICAN PREMIER HOLDINGS, INC. (CONTINUED)
and certain other adjustments, together with related income tax effects. The pro
forma financial information does not purport to be indicative of either the
results of operations that would have occurred had the acquisition taken place
at the beginning of the periods presented or of future results of operations.
<TABLE>
<CAPTION>
                                                                          NINE MONTHS ENDED
                                                                             JANUARY 31,
                                                                              PRO FORMA
                                                                        ----------------------
<S>                                                                     <C>         <C>
                                                                           1997        1998
                                                                        ----------  ----------
 
<CAPTION>
                                                                        (IN THOUSANDS, EXCEPT
                                                                          PER SHARE AMOUNTS)
                                                                             (UNAUDITED)
<S>                                                                     <C>         <C>
Net sales.............................................................  $  784,314  $  786,356
Income before income taxes............................................     108,148      45,864
Income before extraordinary (loss)....................................      55,779      13,120
Extraordinary (loss) on early extinguishment of debt..................     (19,389)     (1,221)
Net income applicable to common stock.................................      30,658      11,840
 
  Net income (loss) per diluted share of common stock:
  Income before extraordinary (loss)..................................  $     2.72  $     0.68
  Extraordinary (loss) on early extinguishment of debt................       (0.95)      (0.06)
  Preferred stock redemption premium..................................       (0.26)     --
                                                                        ----------  ----------
    Net income per diluted share......................................  $     1.51  $     0.62
                                                                        ----------  ----------
                                                                        ----------  ----------
</TABLE>
 
    As previously mentioned, as part of the purchase consideration paid for the
APHI acquisition, Alpine caused Refraco to issue 16.6% of the common stock of
Refraco currently outstanding to the APHI shareholders. In connection with this
transaction, the Company reflected as a component of stockholders' equity a
$15.2 million gain, net of tax, on the issuance of a minority equity interest in
Refraco. The gain has not been reflected as a component of the statement of
operations since the common stock issued is, by its terms, subject to repurchase
by Refraco under certain circumstances following the fifth anniversary of the
APHI acquisition.
 
5. RESTRUCTURING CHARGE
 
    In conjunction with the acquisition of APHI, the Company recorded a
non-recurring restructuring charge of $3.6 million, or $2.2 million, net of tax.
The charge relates to costs to be incurred at the Company's existing refractory
facilities in connection with the consolidation of duplicative manufacturing
capacity and administrative functions.
 
6. DEBT
 
    In connection with the acquisition of APHI, the Company amended its existing
Refraco Credit Agreement. The Amended and Restated Refraco Credit Agreement
provides for total borrowing availability of up to $260 million; consisting of a
$50.0 million revolving credit facility, a $60.0 million term loan A facility, a
$75.0 million term loan B facility and a $75.0 million term loan C facility.
Proceeds from these facilities were used to complete the acquisition of APHI and
Hepworth (see Note 4 herein; and Note 6 to the Company's Annual Report on Form
10-K for the year ended April 30, 1997).
 
                                       12
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
6. DEBT (CONTINUED)
    At April 30, 1997 and January 31, 1998, long-term debt consists of the
following:
 
<TABLE>
<CAPTION>
                                                                       APRIL 30,   JANUARY 31,
                                                                          1997        1998
                                                                       ----------  -----------
<S>                                                                    <C>         <C>
                                                                           (IN THOUSANDS)
Schedule not indented due to size
Superior revolving credit facility (a)...............................  $  111,657   $  80,493
Refraco floating rate note (b).......................................      60,000      60,000
Refraco revolving credit facility (c)................................       5,805       8,886
Refraco term loan A (c)..............................................      50,000      61,301
Refraco term loan B (c)..............................................      45,000      74,663
Refraco term loan C (c)..............................................      --          75,000
12.25% Senior Secured Notes (principal amount $21.1 million at April
  30, 1997 and $14.2 million at January 31, 1998) (d)................      19,382      13,169
Other................................................................      18,980      13,735
                                                                       ----------  -----------
    Total debt.......................................................     310,824     387,247
Less current portion of long-term debt...............................       2,653       7,416
                                                                       ----------  -----------
                                                                       $  308,171   $ 379,831
                                                                       ----------  -----------
                                                                       ----------  -----------
</TABLE>
 
    At January 31, 1998, the fair value of Alpine's debt, based on the quoted
market prices for the same or similar issues or on the current rates offered to
Alpine for debt of the same remaining maturities, approximates its recorded
value.
 
    The aggregate maturities of long-term debt for the five years subsequent to
January 31, 1998, are as follows (in thousands):
 
<TABLE>
<CAPTION>
                                                                                   JANUARY 31,
                                                                                   -----------
<S>                                                                                <C>
1999.............................................................................   $   7,416
2000.............................................................................       8,320
2001.............................................................................      10,790
2002.............................................................................     100,276
2003.............................................................................      37,825
Thereafter.......................................................................     222,620
                                                                                   -----------
                                                                                    $ 387,247
                                                                                   -----------
                                                                                   -----------
</TABLE>
 
------------------------
 
(a) Interest on the Superior Credit Facility is payable quarterly based upon the
    base rate (prime) plus 0.5% or the Eurodollar rate plus 0.625%. The variable
    components of these rates are subject to periodic adjustment based on the
    ratio of debt to cash flow (as defined). The Superior Credit Facility has a
    five-year term with a total commitment of $150.0 million, which is reduced
    by $25.0 million in each of October 1999 and October 2000. Loans under the
    Superior Credit Facility are guaranteed by Superior TeleCom's domestic
    subsidiaries (but not by Alpine) and are secured by substantially all of the
    assets of Superior TeleCom and by the stock of each of Superior TeleCom's
    domestic subsidiaries.
 
                                       13
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
6. DEBT (CONTINUED)
(b) The Refraco floating rate note facility is due in 2006. Interest is based
    upon the base rate (prime) plus 2.75% or the Eurodollar rate plus 3.75%.
    Interest is payable quarterly in the case of base rate notes but may be
    payable over shorter periods in the case of Eurodollar rate notes. The
    Refraco floating rate notes are secured by a pledge of substantially all of
    the common stock of Refraco's operating subsidiaries and are guaranteed by
    Alpine. The Alpine guaranty is secured by the pledge of the common stock of
    Refraco owned by Alpine and a portion of the common stock of Superior
    TeleCom owned by Alpine with a market value of $60.0 million.
 
(c) The Refraco revolving credit facility represents borrowings by Refraco's
    principal operating subsidiaries. Borrowings under the facility are
    allowable up to $50.0 million in the aggregate. Interest on the outstanding
    balance is based upon the base rate (prime) plus 1.50% or the Eurodollar
    rate plus 2.50% and is payable at least quarterly. The facility terminates
    on April 15, 2003.
 
   The Refraco term loan A represents the dollar equivalent of pounds sterling
    borrowings and is repayable in varying amounts over six years with interest
    payable at least quarterly based upon the base rate (prime) plus 1.50% or
    the Eurodollar rate plus 2.50%.
 
   The Refraco term loan B is repayable in varying amounts over eight years with
    interest payable at least quarterly based upon base rate (prime) plus 2.00%
    or the Eurodollar rate plus 3.00%.
 
   The Refraco term loan C is repayable in varying amounts over eight years with
    interest payable at least quarterly based upon the base rate (prime) plus
    2.25% or the Eurodollar rate plus 3.25%.
 
(d) The Senior Notes are due 2003 and pay interest semiannually on January 15
    and July 15 of each year. The Senior Notes were issued at a price of 91.74%
    and the discount is being added to the recorded amount through maturity
    utilizing the effective interest method.
 
    On February 6, 1998, Alpine entered into a $25.0 million senior secured
credit agreement (the "Alpine Credit Facility"), including $15.0 million under a
revolving credit facility and $10.0 million under a senior secured term loan.
Proceeds from these facilities are for ongoing general working capital and
corporate needs of Alpine. Interest on the revolving credit facility is at base
rate (prime) plus 0.50% or Eurodollar rate plus 1.50% and interest on the term
loan is at base rate (prime) plus 1.00% or Eurodollar rate plus 2.00%. All
borrowings under the Alpine Credit Facility are secured by the pledge of
Superior TeleCom common stock owned by Alpine.
 
7. SALE OF SUBSIDIARY STOCK
 
    On October 2, 1996, the Company completed a reorganization and refinancing
(the "Reorganization") of its wholly-owned subsidiaries Superior
Telecommunication Inc. ("Superior") and DNE Systems, Inc. ("DNE"). In connection
with the Reorganization, the Company (i) recapitalized Superior, resulting in
Superior issuing to Alpine 20,000 shares of 6% Cumulative Preferred Stock
("Superior Preferred Stock"), par value $1.00 per share, with a liquidation
preference of $1,000 per share, (ii) caused Superior and DNE to declare a
dividend to Alpine of $117.1 million, (iii) contributed all of the common stock
of both Superior and DNE to a newly-formed wholly-owned subsidiary, Superior
TeleCom Inc. ("Superior TeleCom") and (iv) caused Superior TeleCom to enter into
a revolving credit facility (the "Superior Credit
 
                                       14
<PAGE>
                    THE ALPINE GROUP, INC. AND SUBSIDIARIES
 
        NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (CONTINUED)
 
                                JANUARY 31, 1998
 
                                  (UNAUDITED)
 
7. SALE OF SUBSIDIARY STOCK (CONTINUED)
Facility"), the proceeds of which were used to repay the intercompany debt then
owed to Alpine and to pay $63.8 million of the declared dividend.
 
    On October 17, 1996, Superior TeleCom sold 6,000,000 shares of its common
stock through an initial public offering. Superior TeleCom used the net proceeds
of approximately $88.3 million to repay $34.4 million of the aforementioned
Superior Credit Facility and to pay the remaining balance on the previously
declared dividend.
 
    In November 1996, the underwriters of the initial public offering exercised
their overallotment option to purchase an additional 900,000 shares of Superior
TeleCom common stock. Superior TeleCom used the net proceeds of approximately
$13.3 million to repurchase 450,000 shares of its common stock for approximately
$8.1 million with the balance of such proceeds being used to reduce the amount
outstanding under the Superior Credit Facility. The Superior TeleCom common
stock repurchased was then transferred to the Company in exchange for $8.1
million in liquidation value of Superior Preferred Stock. As a result of the
foregoing transactions, the Company's ownership interest in Superior TeleCom
declined to 50.1% and the Company recorded a gain on sale of subsidiary stock of
$80.4 million ($41.4 million, or $2.04 per diluted share, after provision for
current and deferred income taxes).
 
8. EXTRAORDINARY (LOSS) ON EARLY EXTINGUISHMENT OF DEBT
 
    During the nine months ended January 1998, the Company retired $7.0 million
face amount ($6.4 million recorded amount) of its 12.25% Senior Secured Notes
("Alpine Senior Notes") and $5.0 million face amount ($4.7 million recorded
amount) of its Adience 11% Senior Secured Notes. In connection with this early
extinguishment of debt, the Company recorded an after tax extraordinary charge
of $1.2 million, or $0.06 per diluted share.
 
    During fiscal 1997, the Company refinanced substantially all of its bank
debt and redeemed $131.9 million face amount ($122.3 million recorded amount) of
Alpine Senior Notes. In connection with the bank refinancing and Alpine Senior
Note redemption, the Company recorded an after tax extraordinary charge of $19.4
million, or $0.95 per diluted share, on the early extinguishment of debt.
 
9. REDEMPTION OF PREFERRED STOCK
 
    On October 31, 1996, the Company entered into an agreement to repurchase for
$13.2 million, 160,000 shares of the Company's 8% Cumulative Convertible Senior
Preferred Stock ("8% Preferred Stock"), with a carrying value of $8.0 million.
In accordance with generally accepted accounting principles, the repurchase
price paid in excess of the carrying value has been recorded as a redemption
premium and, therefore, as a reduction to net income attributable to common
stockholders.
 
                                       15
<PAGE>
ITEM 2. MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL
  CONDITION AND RESULTS OF OPERATIONS
 
    Alpine, through its subsidiaries, Superior TeleCom Inc. ("Superior TeleCom")
and Refraco Inc. ("Refraco"), operates in three industry segments. Superior
TeleCom, a 50.1% owned subsidiary, operates in the following industry segments:
(i) telecommunications distribution wire and cable products for the
telecommunications industry through its subsidiary, Superior Telecommunications
Inc. ("Superior") and (ii) data communications and electronics products and
systems for defense, governmental and commercial applications through its
subsidiary, DNE Systems, Inc. ("DNE"). Refraco, an 83.4% owned subsidiary,
provides refractory products and services for the iron and steel, glass and
aluminum industries, as well as for other industrial applications. Refraco's
operations through January 31, 1998 include those of its North American
subsidiary, BMI-France, acquired on December 21, 1994 and its European
subsidiaries acquired on April 15, 1997 as part of the Hepworth acquisition (see
Note 6 to the Company's Annual Report on Form 10-K for the year ended April 30,
1997). On January 30, 1998, the Company acquired American Premier Holdings, Inc.
("APHI"), (see Note 4 to the accompanying unaudited Condensed Consolidated
Financial Statements). This acquisition was accounted for as a purchase and,
therefore, the results of operations of APHI will be consolidated with Refraco
on a prospective basis from the date of acquisition, and accordingly, are not
reflected in the following discussion of results of operations for the fiscal
periods ended January 31, 1997 or 1998.
 
                                       16
<PAGE>
RESULTS OF OPERATIONS
 
    The following table compares operating statement data for Alpine on an
industry segment basis. Such industry segment operating data is presented on an
historical reporting basis for the three month and nine months ended January 31,
1997 and 1998.
<TABLE>
<CAPTION>
                                                                     THREE MONTHS ENDED      NINE MONTHS ENDED
                                                                         JANUARY 31,            JANUARY 31,
                                                                    ---------------------  ----------------------
<S>                                                                 <C>        <C>         <C>         <C>
                                                                      1997        1998        1997        1998
                                                                    ---------  ----------  ----------  ----------
 
<CAPTION>
                                                                               (DOLLARS IN THOUSANDS)
<S>                                                                 <C>        <C>         <C>         <C>
Net sales:
  Telecommunications wire and cable...............................  $  92,872  $  107,499  $  327,728  $  365,613
  Data communications and electronics.............................      4,519       6,162      16,413      18,493
  Refractories....................................................     23,781      92,843      82,497     262,426
                                                                    ---------  ----------  ----------  ----------
    Consolidated..................................................    121,172     206,504     426,638     646,532
Gross profit:
  Telecommunications wire and cable...............................  $  16,447  $   19,489  $   52,255  $   65,500
  Data communications and electronics.............................        980       2,191       4,134       5,864
  Refractories....................................................      4,158      15,747      16,519      49,903
                                                                    ---------  ----------  ----------  ----------
    Consolidated..................................................     21,585      37,427      72,908     121,267
Gross profit percentage:
  Telecommunications wire and cable...............................       17.7%       18.1%       15.9%       17.9%
  Data communications and electronics.............................       21.7%       35.6%       25.2%       31.7%
  Refractories....................................................       17.5%       17.0%       20.0%       19.0%
    Consolidated..................................................       17.8%       18.1%       17.1%       18.8%
Selling, general and administrative expense:
  Telecommunications wire and cable...............................  $   2,227  $    2,914  $    7,199  $    9,315
  Data communications and electronics.............................      1,335       1,487       4,587       4,340
  Refractories....................................................      3,098      10,225      10,817      31,092
  Corporate and other expenses....................................      1,820       3,233       6,877       7,468
                                                                    ---------  ----------  ----------  ----------
    Consolidated..................................................      8,480      17,859      29,480      52,215
Amortization of goodwill:
  Telecommunications wire and cable...............................  $     434  $      428  $    1,297  $    1,288
  Refractories....................................................        333         639         995       1,872
                                                                    ---------  ----------  ----------  ----------
    Consolidated..................................................        767       1,067       2,292       3,160
Operating income:(a)
  Telecommunications wire and cable...............................  $  13,786  $   16,147  $   43,759  $   54,897
  Data communications and electronics.............................       (355)        704        (453)      1,524
  Refractories(a).................................................        727       4,883       4,707      16,939
  Corporate and other expenses....................................     (1,820)     (3,233)     (6,877)     (7,468)
                                                                    ---------  ----------  ----------  ----------
    Consolidated(a)...............................................  $  12,338  $   18,501  $   41,136  $   65,892
                                                                    ---------  ----------  ----------  ----------
</TABLE>
 
------------------------
 
(a) Operating income for the three month and nine months ended January 31, 1998
    presented above excludes a non-recurring restructuring charge of $3.6
    million recorded with respect to the Company's refractories operations (see
    Note 5 to the accompanying unaudited Condensed Consolidated Financial
    Statements).
 
                                       17
<PAGE>
SUPPLEMENTAL DATA FOR THE TELECOMMUNICATIONS WIRE AND CABLE SEGMENT:
 
    Copper is a significant raw material component of Superior's finished
products. Fluctuations in the price of copper affect per unit product pricing
and related revenues. However, the cost of copper has not had a material impact
on Superior's profitability due to contractually mandated copper-based price
adjustments contained in Superior's customer sales contracts. The Company
believes that the following supplemental comparative data, which are based upon
a constant copper cost of $1.00 per pound for the indicated periods, provide
additional meaningful information concerning Superior's sales and its gross
profit percentage.
<TABLE>
<CAPTION>
                                                 THREE MONTHS ENDED      NINE MONTHS ENDED
                                                     JANUARY 31,            JANUARY 31,
                                                ---------------------  ----------------------
<S>                                             <C>        <C>         <C>         <C>
                                                  1997        1998        1997        1998
                                                ---------  ----------  ----------  ----------
 
<CAPTION>
                                                           (DOLLARS IN THOUSANDS)
<S>                                             <C>        <C>         <C>         <C>
Net sales.....................................  $  93,220  $  105,477  $  317,879  $  355,290
Gross profit..................................     16,447      19,489      52,255      65,500
Gross profit percentage.......................       17.6%       18.5%       16.4%       18.4%
</TABLE>
 
TELECOMMUNICATIONS WIRE AND CABLE--RESULTS OF OPERATIONS
 
    Superior's net sales for the quarter ended January 1998 were $107.5 million,
representing an increase of $14.6 million, or 15.7%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1998,
Superior's net sales were $365.6 million, representing an increase of $37.9
million, or 11.6%, as compared to the same period in the prior fiscal year.
Adjusted to a constant copper cost of $1.00 per pound, the comparative
percentage increases in net sales for the three and nine months ended January
1998 were 13.1% and 11.8%, respectively (see "Supplemental Data for the Superior
Telecommunications Wire and Cable Segment" included in the industry segment
operating statement data). The increase in comparative net sales that the
Company has experienced in the first three quarters of fiscal 1998 has resulted
primarily from increased demand for copper wire and cable products due to
continuing growth in new copper-based telephone access lines and an increase in
maintenance spending by several of Superior's major telephone company customers.
The growth in access lines is believed to be the result of increased demand for
support of computer, facsimile and internet connections. Additionally,
comparative net sales for the quarter ended January 31, 1998, which is typically
a seasonally slow period, were favorably impacted by the tightness in supply of
telephone wire and cable products, resulting in customer orders and shipment
patterns reflecting less seasonality. Severe weather conditions in the
Northeastern sector also resulted in an increase in demand for replacement wire
and cable products in the January 1998 fiscal quarter. To a lesser degree, the
growth in net sales in fiscal 1998 has been favorably impacted by a modest
increase in market share under long term customer contracts.
 
    In order to keep pace with the growth in demand and increased market share,
Superior has a continuing program to increase its production capacity to a level
that will be sufficient to provide internally for anticipated product demand
levels. However, when required, inventory is supplemented with product purchased
from other wire and cable manufacturers. The Company expects to continue to
increase its production capacity over the next 9-12 months, to a level that will
be sufficient to provide internally for anticipated product demand levels.
 
    Superior's gross profit increased by $3.0 million, or 18.5%, to $19.5
million for the quarter ended January 1998, as compared to the same period in
the prior fiscal year. For the nine months ended January 1998, Superior's gross
profit was $65.5 million, representing an increase of $13.2 million, or 25.3%,
as compared to the same period in the prior fiscal year. Superior's gross profit
percentage, based on actual net sales, was 18.1% for the quarter ended January
1998 and 17.9% for the nine months ended January 1998, as compared to 17.7% for
the quarter ended January 1997 and 15.9% for the nine months ended January 1997.
Adjusted to a constant copper cost of $1.00 per pound, the gross profit
percentage
 
                                       18
<PAGE>
increased to 18.5% and 18.4%, respectively, for the quarter and nine months
ended January 1998, as compared to 17.6% and 16.4%, respectively, for the
quarter and nine months ended January 1997. The comparative increase in
Superior's gross profit percentage was attributable to a combination of factors,
including manufacturing cost reductions resulting from production efficiencies,
improved cost absorption resulting from higher sales volume, generally higher
comparative market prices and the impact of product mix (particularly in the
quarter ended January 31, 1998).
 
    Superior's SG&A expense for the quarter ended January 1998 was $2.9 million,
representing an increase of $0.7 million, or 30.8%, as compared to SG&A expense
of $2.2 million for the same period in the prior fiscal year. For the nine
months ended January 1998, Superior's SG&A expense was $9.3 million,
representing an increase of $2.1 million, or 29.4%, as compared to the same
period in the prior fiscal year. The increase in SG&A expense for the quarter
and nine months ended January 1998 was attributable primarily to costs
associated with the incremental staff required to support the increased level of
sales activity and the expansion of product development activities, including
the establishment and staffing of a product development facility during the
fourth quarter of fiscal 1997.
 
    Superior's operating income for the quarter ended January 1998 was $16.1
million, representing an increase of $2.4 million, or 17.1%, as compared to the
quarter ended January 1997. For the nine months ended January 1998, Superior's
operating income was $54.9 million, representing an increase of $11.1 million,
or 25.5%, as compared to the same period in the prior fiscal year. The
substantial comparative increase in operating income resulted from higher net
sales and the improvement in gross profit percentage.
 
DNE--RESULTS OF OPERATIONS
 
    For the quarter ended January 1998, DNE's net sales were $6.2 million,
representing an increase of $1.6 million, or 36.4%, as compared to the same
period in the prior fiscal year. For the nine months ended January 1998, DNE's
net sales were $18.5 million, representing an increase of $2.1 million, or
12.7%, as compared to the same period in the prior fiscal year. The fiscal 1998
comparative increase in net sales was the result of significant shipments under
DNE's first major commercial multiplexer project, along with an improvement in
government-related revenues, offset by a decline in DNE's contract manufacturing
activities.
 
    DNE's gross profit percentage increased to 35.6% for the quarter ended
January 1998 and to 31.7% for the nine months ended January 1998, as compared to
21.7% and 25.2% for the three and nine months ended January 1997, respectively.
The increase in gross profit percentage was attributable to the higher margin
associated with the aforementioned commercial multiplexer sales and the increase
in higher margin government-related revenues.
 
    DNE's SG&A expense in the current fiscal year was comparable to prior
periods, increasing by $0.2 million in the January 1998 quarter and decreasing
by $0.2 million in the January 1998 nine month period, as compared to the same
periods in the prior fiscal year.
 
    As a result of the increase in net sales and gross profit percentage, DNE
generated operating income of $0.7 million during the quarter ended January 1998
and $1.5 million for the nine months ended January 1998, which was an
improvement over DNE's operating losses of $0.4 million and $0.5 million,
respectively, in the same periods of the prior fiscal year.
 
REFRACTORIES--RESULTS OF OPERATIONS
 
    Refraco's net sales for the quarter ended January 1998 were $92.8 million,
representing an increase of $69.1 million, or 290.4%, as compared to the same
period in the prior fiscal year. Refraco's net sales for the nine months ended
January 1998 were $262.4 million, representing an increase of $179.9 million, or
218.1%, as compared to the same period in the prior fiscal year. The increase in
net sales was due to the
 
                                       19
<PAGE>
inclusion in the January 1998 fiscal periods of the operations of the European
subsidiaries, which contributed net sales of $65.4 million and $181.1 million,
respectively, for the quarter and nine months ended January 1998. Net sales for
BMI-France for the quarter and nine months ended January 1998 were $27.4 million
and $81.3 million, respectively, representing a comparative increase of 15.5%
for the three months ended January 1998 and a decline of 1.4% for the nine
months ended January 1998. On a comparative basis, the increase in BMI-France's
net sales for the January 1998 quarter was the result of higher revenues at
Furnco, Refraco's coke oven construction services division. The increase in
Furnco's net sales resulted primarily from an anticipated increase in coke oven
relining projects for several major U.S. steel companies. The decline in
Refraco's comparative net sales for the nine months ended January 1998 primarily
resulted from lower sales of specialty refractory block to the plate glass
industry due to an industry-wide slow down.
 
    Refraco's gross profit for the quarter ended January 1998 was $15.7 million,
representing an increase of $11.6 million, or 278.7%, as compared to the same
period in the prior fiscal year. Refraco's gross profit for the nine months
ended January 1998 was $49.9 million, representing an increase of $33.4 million,
or 202.1%, as compared to the same period in the prior fiscal year. The increase
in gross profit was attributable to the inclusion of the operations of the
European subsidiaries in the current fiscal quarter and nine months ended
January 1998, which generated a gross profit of $11.1 million and $35.2 million,
respectively, partially offset by a decline in gross profit at BMI-France of
$1.8 million for the nine months ended January 1998. The combined gross profit
percentage for the quarter and nine months ended January 1998 was 17.0% and
19.0%, respectively, as compared to 17.5% and 20.0%, respectively, for the same
periods in the prior fiscal year. The decline in gross profit percentage
resulted from a change in overall product mix, resulting primarily from the
inclusion of the European operations of Refraco, as well as from the impact of
competitive pricing pressures in the iron and steel industry.
 
    Refraco's SG&A expense for the quarter ended January 1998 was $10.2 million,
representing an increase of $7.1 million, as compared to the same period in the
prior fiscal year. Refraco's SG&A expense for the nine months ended January 1998
was $31.1 million, representing an increase of $20.3 million, as compared to the
same period in the prior fiscal year. The increase in SG&A expense was
attributable primarily to the inclusion of the European operations of Refraco in
the current fiscal periods and an increase in BMI-France's SG&A expense of $0.8
million and $1.2 million for the three and nine months ended January 1998,
respectively. The increase in BMI-France's SG&A expense resulted primarily from
costs associated with the transfer and consolidation of personnel and
administrative functions from Hepworth's North American operations into
BMI-France's operations.
 
    Refraco's operating income, before the non-recurring restructuring charge of
$3.6 million, for the quarter ended January 1998 was $4.9 million, representing
an increase of $4.2 million, or 571.7%, as compared to the same period in the
prior fiscal year. Refraco's comparative operating income, before the
non-recurring restructuring charge, for the nine months ended January 1998 was
$16.9 million, representing an increase of $12.2 million, or 259.9%, as compared
to the same period in the prior fiscal year. The increase in operating income
resulted from the inclusion of $4.5 million and $15.3 million in operating
income from the European operations of Refraco for the quarter and nine months
ended January 1998, respectively. On a comparative basis, operating income for
the BMI-France operations declined by $0.3 million and $3.1 million,
respectively, for the quarter and nine months ended January 1998 with such
decline being primarily the result of lower revenues and the costs associated
with the transfer of certain administrative functions from the European
operations to BMI-France.
 
CONSOLIDATED RESULTS OF OPERATIONS
 
    The acquisition of the European operations of Refraco and the growth in
sales of Superior TeleCom's telecommunications wire and cable products resulted
in comparative consolidated net sales increasing by $85.3 million, or 70.4%, for
the quarter ended January 1998 and by $219.9 million, or 51.5%, for the nine
months ended January 1998. The increase in net sales and an increase in the
telecommunications wire and
 
                                       20
<PAGE>
cable products' gross profit percentage, gave rise to a consolidated comparative
increase in gross profit of $15.8 million, or 73.4%, for the quarter ended
January 1998 and by $48.4 million, or 66.3%, for the nine months ended January
1998.
 
    Consolidated SG&A expense for the quarter ended January 1998 was $17.9
million, representing an increase of $9.4 million, or 110.6%, as compared to the
same period in the prior fiscal year. Consolidated SG&A expense for the nine
months ended January 1998 was $52.2 million, representing an increase of $22.7
million, or 77.1%, as compared to the same period in the prior fiscal year. The
increase in consolidated SG&A expense resulted primarily from the inclusion of
the European operations of Refraco for the current fiscal period along with
higher SG&A expense at Superior.
 
    During the quarter ended January 1998, the Company recorded a non-recurring
restructuring charge of $3.6 million ($2.2 million, or $0.11 per diluted share,
after tax). The charge relates to costs to be incurred in the consolidation of
manufacturing capacity and administrative functions in connection with the
integration of American Premier's recently acquired operations with Refraco's
existing North American operations. Administrative head count reductions
associated with this restructuring are expected to be completed in the near term
with immediate synergistic cost savings being realized. The consolidation of
manufacturing facilities and the related cost savings expected to be realized
from manufacturing cost efficiencies and raw material cost savings are expected
to be accomplished over the next twelve months.
 
    Consolidated operating income for the quarter ended January 1998 was $14.9
million, representing an increase of $2.5 million, or 20.6%, as compared to the
same period in the prior fiscal year. Consolidated operating income for the nine
months ended January 1998 was $62.3 million, representing an increase of $21.1
million, or 51.4%, as compared to the same period in the prior fiscal year.
Excluding the impact of the aforementioned restructuring charge, operating
income for the three month and nine month periods ended January 31, 1998 was
$18.5 million (representing a comparative 50.0% increase) and $65.9 million
(representing a comparative 60.3% increase), respectively. The increase in
operating income was primarily the result of the contribution from the European
operations of Refraco and from the growth in net sales and gross profit in
Superior TeleCom's telecommunications wire and cable operations.
 
    Consolidated interest expense for the quarter ended January 1998 was $7.0
million, representing an increase of $2.6 million, or 60.2%, as compared to
consolidated interest expense of $4.3 million for the same period in the prior
fiscal year. Consolidated interest expense for the nine months ended January
1998 was $21.7 million, representing an increase of $3.7 million, or 20.8%, as
compared to consolidated interest expense of $18.0 million for the same period
in the prior fiscal year. The increase in consolidated interest expense
reflected the net increase in consolidated debt resulting from the acquisition
of Refraco's European operations, offset by a reduction in borrowing cost
resulting from the Reorganization (see Note 5 to the Company's Annual Report on
Form 10-K for the year ended April 30, 1997) and associated refinancing of
substantially all of the Company's outstanding debt at lower effective interest
rates during the second and third quarters of fiscal 1997.
 
    In fiscal 1997, the Company completed the sale of 49.9% of the outstanding
shares of its Superior TeleCom subsidiary (see Note 7 to the accompanying
Condensed Consolidated Financial Statements), with such sale resulting in a
pre-tax gain of $80.4 million being recorded as non-operating income. Current
and deferred income tax expense related to this transaction of $39.0 million has
been included in the Company's provision for income taxes. Thus, on an after tax
basis, the net gain on sale of subsidiary stock amounted to $41.4 million, or
$2.04 per diluted share, for the nine months ended January 31, 1998.
 
    For the quarter and nine months ended January 1998, the provision for income
taxes was $3.5 million and $17.2 million, respectively, as compared to a
provision for income taxes of $3.7 million and $48.2 million, respectively, for
the same periods in the prior fiscal year. Included in the provision for income
taxes for the nine months ended January 1997 was $39.0 million related to the
non recurring gain on sale of subsidiary stock. The effective tax rates for the
quarter and nine months ended January 1998 was 38.7% and 39.8%, respectively,
which compares with effective tax rates, excluding income taxes associated with
 
                                       21
<PAGE>
the aforementioned non recurring gain, of 41.0% and 37.2%, respectively, for the
three and nine months ended January 1997.
 
    As a result of the October 1996 sale of a 49.9% interest in the common stock
of Superior TeleCom, a minority interest charge of $4.2 million and $14.3
million was recorded for the three and nine months ended January 1998,
respectively, as compared to $3.1 million and $3.4 million, respectively, for
the same periods in the prior fiscal year; with such charge representing the
minority stockholders' interest in Superior TeleCom's net income for the
respective periods.
 
    Net income attributable to common stock before extraordinary (loss) and
before non-recurring restructuring charges was $3.5 million, or $0.18 per
diluted share, for the quarter ended January 1998, as compared to net income
attributable to common stock before extraordinary (loss) of $2.3 million, or
$0.12 per diluted share, for the prior year quarterly period. For the nine
months ended January 1998, net income attributable to common stock before
extraordinary (loss) and before a non-recurring restructuring charge was $13.9
million, or $0.73 per diluted share, as compared to net income attributable to
common stock before extraordinary (loss) and before after tax non-recurring
gains and charges of $11.6 million, or $0.59 per share, for the prior year nine
month period. The comparative increase in net income was due to the significant
increase in operating income, partially offset by higher interest charges
(associated with acquisition related debt at Refraco) and the aforementioned
minority interest charge.
 
EXTRAORDINARY ITEM
 
    During the nine months ended January 1998, the Company incurred an
extraordinary loss of $1.2 million on the early extinguishment of debt. During
the quarter and nine months ended January 1997, the Company incurred an
extraordinary loss of $6.0 million and $19.4 million, respectively, on the early
extinguishment of debt. The extraordinary loss during the January 1997 and 1998
fiscal periods related to the early retirement of debt (see Note 6 to the
accompanying unaudited Condensed Consolidated Financial Statements and Note 10
to the Company's Annual Report on Form 10-K for the year ended April 30, 1997).
 
                                       22
<PAGE>
                        LIQUIDITY AND CAPITAL RESOURCES
 
    For the nine months ended January 31, 1998, the Company generated $43.7
million in cash flow from operating activities, consisting of $44.9 million in
cash flow generated from operations (net income plus non-cash charges) reduced
by $1.2 million in cash flow used for net working capital changes. The major
working capital changes included a $8.1 million increase in accounts receivable,
offset by a $6.6 million reduction in inventories and a $1.4 million increase in
accounts payable and accrued expenses. Cash used for investing activities
amounted to $109.8 million consisting principally of $101.4 million in net cash
paid for the acquisition of American Premier Holdings, Inc. ("APHI") and $15.4
million in capital expenditures, offset by $5.7 million in net proceeds from the
sale of assets. Cash provided by financing activities amounted to $53.8 million,
consisting of $115.0 million in long-term borrowings, offset by $17.7 million in
long-term borrowing repayments (largely due to the redemption of $11.1 million
recorded amount ($12.0 million face amount) of Senior Notes), $28.1 million in
repayments of revolving credit loans and $13.2 million used for repurchases of
Company common stock.
 
    The Company had $23.7 million in cash and marketable securities on a
consolidated basis at January 31, 1998. Of such amount, $15.3 million was
maintained by the Company with the balance held by Refraco and Superior TeleCom.
 
    In addition to the cash and marketable securities discussed above, the
Company also holds 50.1% common share ownership of Superior TeleCom (NYSE: SUT);
which investment, based on the closing price on the New York Stock Exchange on
March 13, 1998, had a market value of approximately $339.7 million and a
consolidated carrying value as recorded by the Company (net of minority
interest) of $36.4 million. The Superior TeleCom common stock owned by Alpine,
with a fair market value of $75.0 million, is pledged as collateral to secure
certain debt of the Company's and of the Company's Refraco subsidiary.
 
    As of January 31, 1998, Superior TeleCom had $1.9 million in cash and cash
equivalents and approximately $69.5 million in excess funds availability under
its revolving credit facility. Superior TeleCom's principal debt service
commitments over the next 12 months amount to $0.1 million and management
anticipates that capital expenditures of $12 to $17 million will be required
over such period. Superior TeleCom has typically generated substantial cash
flows from operating activities. Management anticipates that the Company will be
able to generate sufficient cash flows from operating activities to meet its
annual commitments. However, should any shortfall arise due to working capital
fluctuations or other factors, funds available under the revolving credit
facility should be sufficient to cover any such shortfall.
 
    As discussed in Note 4 to the accompanying unaudited Condensed Consolidated
Financial Statements, Refraco completed the acquisition of APHI on January 30,
1998. In connection with the acquisition, Refraco entered into an Amended and
Restated Credit Agreement (the "Refraco Credit Agreement") aggregating $260.0
million in borrowing availability, with Refraco's incremental borrowings
thereunder being used to complete the APHI acquisition. Included in the Refraco
Credit Agreement is a $50.0 million revolving credit arrangement of which $8.9
million was drawn at January 31, 1998. As of January 31, 1998, Refraco had $41.1
million in excess funds availability under its revolving credit facility and an
additional $6.5 million in cash and cash equivalents. Refraco's principal debt
service commitments for the next 12 months amount to $7.3 million and capital
expenditures over the next 12 months are expected to approximate $12 to $15
million. The Company anticipates that Refraco will generate sufficient cash
flows from its operating activities to meet its annual principal debt service
and capital expenditures commitments. However, should any shortfall arise due to
working capital fluctuations or other factors, funds available under the
revolving credit facility should be sufficient to cover any such shortfall.
 
    The balance of the Company's operations consist of the corporate activities
of Alpine. At January 31, 1998, Alpine had $13.2 million recorded amount ($14.2
million face amount) of debt, none of which is repayable during the next 12
months. On February 6, 1998, Alpine entered into a $25.0 million credit facility
consisting of a revolving credit line of $15.0 million and a term loan of $10.0
million. Proceeds from the facility are to be used for general working capital
and corporate requirements. For the next 12 months,
 
                                       23
<PAGE>
Alpine expects to fund its corporate activities (which include approximately
$6.0 million in estimated corporate overhead expenses and $3.0 million in
interest expense) from management fees and dividends payable by its subsidiaries
to Alpine and from interest income, with any shortfall funded from Alpine's
cash, cash equivalents and marketable securities and from funds available under
the aforementioned $25.0 million corporate credit facility.
 
------------------------
 
    Except for the historical information herein, the matters discussed in this
Form 10-Q include forward-looking statements that may involve a number of risks
and uncertainties. Actual results may vary significantly based on a number of
factors, including, market acceptance of new products and continuing product
demand, the impact of competitive products and pricing and changing economic
conditions, including changes in short term interest rates, fluctuations in
foreign currency exchange rates and other risk factors detailed in the Company's
most recent annual report and other filings with the Securities and Exchange
Commission.
 
                                       24
<PAGE>
                           PART II. OTHER INFORMATION
 
ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
 
<TABLE>
<C>        <C>        <C>        <S>
   (a)     Exhibits
           EXHIBIT
           NUMBER
           ---------------------------------------------------------------------------------------------------
                  27         --  FINANCIAL DATA SCHEDULE
                99.1         --  Certificate of Incorporation of Refraco Inc.
                99.2         --  Certificate of Amendment of Certificate of Incorporation of Refraco Inc.
                99.3         --  By-laws of Refraco Inc.
                99.4         --  Stockholders Agreement
 
   (b)     Reports on Form 8-K
</TABLE>
 
        The Company filed one Report on Form 8-K during the third quarter of
    fiscal 1998. The report, dated January 30, 1998 and filed February 12, 1998,
    reported the acquisition of American Premier Holdings, Inc. and the Refraco
    Inc. Credit Agreement entered into in connection therewith.
 
                                       25
<PAGE>
                                   SIGNATURES
 
    Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned thereunto duly authorized.
 
<TABLE>
<S>                             <C>  <C>
                                THE ALPINE GROUP, INC.
                                (Registrant)
 
Date: March 17, 1998            By:            /s/ DAVID S. ALDRIDGE
                                     -----------------------------------------
                                                 David S. Aldridge
                                              CHIEF FINANCIAL OFFICER
</TABLE>
 
                                       26