Coleman Cable, Inc. (Nasdaq:CCIX) (the "Company,"
"Coleman," "we," "us," or "our"), a leading manufacturer and
innovator of electrical and electronic wire and cable products,
announced fourth quarter and full-year 2012 financial results.
Fourth-Quarter 2012 Highlights
- Earnings per share (EPS) of $0.38 per diluted share, an
increase of $0.30 versus $0.08 for 2011;
- Adjusted EPS of $0.40 per diluted share, an increase of $0.33
per diluted share, as compared to $0.07 per diluted share for the
fourth quarter of last year;
- Adjusted EBITDA of $23.4 million in the fourth quarter of 2012,
an increase of 66.0 percent versus $14.1 million in the fourth
quarter of 2011;
- Sales increased to $233.6 million, up 12.9 percent compared to
the fourth quarter of last year.
Full-Year 2012 Highlights
- EPS of $1.34 per diluted share, a record for the Company since
first becoming a public company in 2007, representing an increase
of 35.4 percent versus $0.99 for 2011;
- Adjusted EPS of $1.48 per diluted share, a record for the
Company, representing an increase of 23.3 percent versus $1.20 for
2011;
- Adjusted EBITDA of $88.7 million, a record for the Company,
representing an increase of 12.8 percent versus $78.6 million in
2011;
- Sales increased to $914.6 million, up 5.4 percent compared to
2011.
Outlook and Dividend
- For the first quarter of 2013, the Company estimates sales
between $215.0 million and $225.0 million and Adjusted EPS between
$0.24 and $0.37;
- Declared a quarterly cash dividend of $0.02 per common share
payable on March 30, 2013, to stockholders of record as of the
close of business on March 15, 2013.
Fourth Quarter 2012 Results
Net sales for the fourth quarter of 2012 were $233.6 million
compared to $206.9 million for the fourth quarter of 2011, with the
increase mainly reflecting increased sales volumes and higher
average copper prices. Sales volume (measured in total pounds
shipped, on a comparable basis) increased 6.0 percent for the
fourth quarter of 2012 compared to the same period last year.
Fourth quarter 2012 Adjusted EPS and Adjusted EBITDA were $0.40 per
diluted share and $23.4 million, respectively, compared to $0.07
per diluted share and $14.1 million, respectively, for the same
quarter of 2011.
President and CEO Gary Yetman stated, "We finished 2012 on a
very strong note as our fourth quarter profitability, driven by
higher sales and a significant increase in gross profit, exceeded
our expectations and contributed to an outstanding year. The
year-over-year gross profit improvement during the fourth quarter
was fairly broad based with particularly strong performance within
our Distribution segment. These factors, coupled with the diversity
of our platform and our continued focus on improving our
operations, favorably impacted profitability on a year-over-year
basis."
Mr. Yetman concluded, "Looking to 2013, we anticipate continued
growth throughout the year with additional benefits arising in the
back half of the year as we start to experience the positive
effects of our plant consolidation and expansion efforts which was
a focus of ours in 2012. Additionally, though visibility with
respect to such an occurrence is limited, we would also
significantly benefit in the event of any meaningful and sustained
rebound in the residential and commercial construction markets, as
we are very well positioned from a capacity and product standpoint
to serve any such increased demand in these markets. In short, we
remain confident the Company is well positioned heading into
2013."
On a GAAP basis, the Company recorded earnings of $0.38 per
diluted share for the fourth quarter of 2012 compared to $0.08 per
diluted share for the fourth quarter last year. Results for the
2012 and 2011 periods included restructuring charges and
share-based compensation expense. Additionally, results for the
fourth quarter of 2011 included the favorable impact of an
insurance settlement received in 2011 for a 2005 inventory-related
theft. All of these items are excluded from the Company's Adjusted
EBITDA and Adjusted EPS results. Please see the discussion of
Non-GAAP results below and the attached schedules for a full
reconciliation of GAAP results to non-GAAP results.
Quarterly Cash Dividend
On March 5, 2013, Coleman's board of directors declared a
quarterly cash dividend of $0.02 per common share, payable on March
30, 2013, to stockholders of record as of the close of business on
March 15, 2013. Future declarations of quarterly dividends are
subject to approval of the board of directors and may be adjusted
as business needs or market conditions change.
Webcast
Coleman Cable has scheduled its conference call for Friday,
March 8, 2013, at 10:00 a.m. Central time. Hosting the call will be
Gary Yetman, president and CEO, Richard Burger, executive vice
president and CFO and Alan Bergschneider, vice president-finance. A
live broadcast of the Company's conference call, along with
accompanying visuals, will be available on-line through the
Company's Web site at http://investors.colemancable.com/events.cfm.
The webcast will be archived for 90 days.
Non-GAAP Results
In addition to net income determined in accordance with GAAP, we
use certain non-GAAP measures in assessing our operating
performance. These non-GAAP measures used by management include:
(1) Adjusted EBITDA, which is our measure of EBITDA adjusted to
exclude the impact of certain specifically identified items
("Adjusted EBITDA"), and (2) Adjusted earnings per share, which we
calculate as diluted earnings per share adjusted to exclude the
estimated per share impact of the same specifically identified
items used to calculate Adjusted EBITDA ("Adjusted EPS"). For the
periods presented in this press release, the specifically
identified items include asset impairments, restructuring charges,
the gain on available for sale securities recorded in the second
quarter of 2011 relative to our investment in TRC at the date of
acquisition, acquisition-related costs, the favorable impact of an
insurance settlement received in 2011 for a 2005 inventory-related
theft, the loss recorded in connection with the extinguishment of
our 2012 Senior Notes in 2010, and share-based compensation
expense.
We believe Adjusted EBITDA serves as an appropriate measure to
be used in evaluating the performance of our business. We employ
the use of this measure in the preparation of our annual operating
budgets and in determining levels of operating and capital
investments. We believe Adjusted EBITDA allows us to readily view
operating trends, perform analytical comparisons, determine key
personnel bonuses, and identify strategies to improve operating
performance. We also believe Adjusted EBITDA is a performance
measure that provides investors, securities analysts and other
interested parties a measure of operating results unaffected by
differences in capital structures, business acquisitions, capital
investment cycles and ages of related assets among otherwise
comparable companies in our industry. However, the usefulness of
Adjusted EBITDA as a performance measure is limited by the fact
that it excludes the impact of interest expense, depreciation and
amortization expense, and taxes. We borrow money in order to
finance our operations; therefore, interest expense is a necessary
element of our costs and ability to generate revenue. Similarly,
our use of capital assets makes depreciation and amortization
expense a necessary element of our costs and ability to generate
income. Since we are subject to state and federal income taxes, any
measure that excludes tax expense has material limitations. Due to
these limitations, we do not, and you should not, use Adjusted
EBITDA as the only measure of our performance. We also use, and
recommend that you consider, net income in accordance with GAAP as
a measure of our performance. Finally, other companies may define
Adjusted EBITDA differently and, as a result, our measure of
Adjusted EBITDA may not be directly comparable to Adjusted EBITDA
measures of other companies.
Similarly, we believe our use of Adjusted EPS and Adjusted
EBITDA provides an appropriate measure to use in assessing our
performance across periods given that this measure provides an
adjustment for certain significant items, the magnitude of which
may vary significantly from period to period. However, we do not,
and do not recommend that you solely use Adjusted EPS to assess our
financial and earnings performance. We also use, and recommend that
you use, diluted earnings per share in addition to Adjusted EPS in
assessing our earnings performance. Finally, other companies may
define Adjusted EPS differently and, as a result, our measure of
Adjusted EPS may not be directly comparable to Adjusted EPS
measures of other companies.
About Coleman Cable, Inc.
Coleman Cable, Inc. is a leading manufacturer and innovator of
electrical and electronic wire and cable products for the security,
sound, telecommunications, electrical, commercial, industrial, and
automotive industries. With extensive design and production
capabilities and a long-standing dedication to customer service,
Coleman Cable, Inc. is the preferred choice of cable and wire users
throughout North America. For more information, visit
www.colemancable.com
The Coleman Cable, Inc. logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6583
Various statements included in this release, including
those that express a belief, expectation or intention, as well as
those that are not statements of historical fact constitute
forward-looking statements. These statements include those made
under "Outlook" and may be identified by the use of forward-looking
terminology such as "believes," "plans," "anticipates," "expects,"
"estimates," "continues," "could," "may," "might," "potential,"
"predict," "should," or the negative thereof or other variations
thereon or comparable terminology. In particular, statements about
Coleman Cable's expectations, beliefs, plans, objectives,
assumptions or future events, financial results, earnings guidance
or financial performance contained in this release are
forward-looking statements. Coleman Cable has based these
forward-looking statements on its current expectations,
assumptions, estimates and projections. While Coleman Cable
believes these expectations, assumptions, estimates and projections
are reasonable, such forward-looking statements are only
predictions and involve known and unknown risks and uncertainties,
many of which are beyond our control. These and other important
factors, including those discussed in Coleman Cable's most recent
Annual Report on Form 10-K (available at www.sec.gov), may cause
our actual results, performance or achievements to differ
materially from any future results, performance or achievements
expressed or implied by these forward-looking statements. Some of
the key factors that could cause actual results to differ from
Coleman Cable's expectations include:
- fluctuations in the supply or price of copper and other raw
materials, including PVC and fuel;
- increased competition from other wire and cable manufacturers,
including foreign manufacturers;
- pricing pressures causing margins to decrease;
- our dependence on indebtedness and our ability to satisfy our
debt obligations;
- failure to identify, finance or integrate acquisitions;
- product liability claims and litigation resulting from the
design or manufacture of our products;
- advancements in wireless technology;
- impairment charges related to our goodwill and long-lived
assets;
- restructuring charges;
- changes in the cost of labor;
- disruption in the importation of raw materials and products
from foreign-based suppliers;
- our ability to maintain substantial levels of inventory;
- increase in exposure to political and economic development,
crises, instability, terrorism, civil strife, expropriation, and
other risks of doing business in foreign markets;
- changes in tax legislation relating to our Honduras subsidiary;
and
- other risks and uncertainties, including those described under
"Item 1A. Risk Factors," in Coleman Cable's most recent Annual
Report on Form 10-K.
In addition, any forward-looking statements represent Coleman's
views only as of today and should not be relied upon as
representing its views as of any subsequent date. While Coleman may
elect to update forward-looking statements at some point in the
future, it specifically disclaims any obligation to do so, even if
its estimates change and, therefore, you should not rely on these
forward-looking statements as representing Coleman's views as of
any date subsequent to today.
CCIX-G
Financial Tables Follow
COLEMAN CABLE, INC. AND
SUBSIDIARIES |
CONSOLIDATED STATEMENT
OF INCOME |
(Thousands, except per share
data) |
(Unaudited) |
|
|
|
|
|
|
Three Months Ended |
Twelve Months Ended |
|
December 31, |
December
31, |
|
2012 |
2011 |
2012 |
2011 |
|
NET SALES |
$233,557 |
$206,854 |
$914,581 |
$867,356 |
COST OF GOODS SOLD |
195,981 |
180,970 |
775,999 |
744,587 |
GROSS PROFIT |
37,576 |
25,884 |
138,582 |
122,769 |
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES |
17,860 |
14,626 |
65,211 |
61,107 |
INTANGIBLE ASSET AMORTIZATION |
2,189 |
1,743 |
7,945 |
7,025 |
ASSET IMPAIRMENTS |
— |
— |
— |
— |
RESTRUCTURING CHARGES |
300 |
698 |
1,615 |
1,953 |
OPERATING INCOME |
17,227 |
8,817 |
63,811 |
52,684 |
INTEREST EXPENSE |
7,021 |
6,908 |
27,984 |
28,092 |
GAIN ON AVAILABLE FOR SALE SECURITIES |
— |
— |
— |
(753) |
|
|
|
|
|
OTHER (INCOME)LOSS, NET |
(17) |
(410) |
214 |
(78) |
INCOME BEFORE INCOME
TAXES |
10,223 |
2,319 |
35,613 |
25,423 |
INCOME TAX EXPENSE |
3,530 |
960 |
12,109 |
7,982 |
NET INCOME |
$6,693 |
$1,359 |
$23,504 |
$17,441 |
EARNINGS PER COMMON SHARE DATA |
|
|
|
|
NET INCOME PER
SHARE: |
|
|
|
|
Basic |
$0.38 |
$0.08 |
$1.36 |
$1.00 |
Diluted |
0.38 |
0.08 |
1.34 |
0.99 |
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING |
|
|
|
|
Basic |
17,229 |
16,939 |
17,089 |
17,090 |
Diluted |
17,324 |
17,150 |
17,323 |
17,310 |
|
COLEMAN CABLE, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(Thousands, except per share
data) |
(Unaudited) |
|
|
|
|
December 31, |
|
2012 |
2011 |
|
|
ASSETS |
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$9,562 |
$9,746 |
Accounts receivable, net of
allowances of $3,046 and $2,811, respectively |
125,982 |
120,567 |
Inventories |
112,590 |
108,689 |
Deferred income taxes |
4,271 |
3,355 |
Assets held for sale |
1,074 |
546 |
Prepaid expenses and other
current assets |
4,071 |
10,288 |
Total current assets |
257,550 |
253,191 |
|
|
|
PROPERTY, PLANT AND EQUIPMENT: |
|
|
Land |
1,647 |
1,387 |
Buildings and leasehold
improvements |
24,749 |
14,392 |
Machinery, fixtures and
equipment |
127,540 |
112,606 |
|
153,936 |
128,385 |
Less accumulated depreciation
and amortization |
(86,588) |
(75,936) |
Construction in progress |
11,566 |
6,508 |
Property, plant and equipment, net |
78,914 |
58,957 |
GOODWILL |
66,535 |
56,724 |
INTANGIBLE ASSETS |
37,417 |
28,340 |
DEFERRED INCOME TAXES |
329 |
376 |
OTHER ASSETS |
8,595 |
8,148 |
TOTAL ASSETS |
$449,340 |
$405,736 |
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
CURRENT LIABILITIES: |
|
|
Current portion of long-term
debt |
$35,566 |
$166 |
Accounts payable |
25,748 |
29,081 |
Accrued liabilities |
38,208 |
35,762 |
Total current liabilities |
99,522 |
65,009 |
LONG-TERM DEBT |
288,273 |
302,935 |
OTHER LONG-TERM LIABILITIES |
3,693 |
3,194 |
DEFERRED INCOME TAXES |
6,687 |
6,503 |
COMMITMENTS AND CONTINGENCIES |
|
|
SHAREHOLDERS' EQUITY: |
|
|
Common stock, par value $0.001;
75,000 shares authorized; 16,998 and 16,939 shares issued and
outstanding on December 31, 2012 and 2011 |
17 |
17 |
Treasury stock, at cost: 443
and 320 shares, respectively |
(3,918) |
(2,789) |
Additional paid-in capital |
94,470 |
92,871 |
Accumulated deficit |
(39,371) |
(61,819) |
Accumulated other comprehensive
loss |
(33) |
(185) |
Total shareholders' equity |
51,165 |
28,095 |
TOTAL LIABILITIES AND
EQUITY |
$449,340 |
$405,736 |
|
COLEMAN CABLE, INC. AND
SUBSIDIARIES |
Non-GAAP
Results |
(Thousands, except per share
data) |
(unaudited) |
|
|
|
|
|
Reconciliation of
Non-GAAP Financial Measures |
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share, as
determined in accordance with GAAP, to Adjusted EPS |
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2012 |
2011 |
2012 |
2011 |
Earnings per share |
$0.38 |
$0.08 |
$1.34 |
$0.99 |
Restructuring charges |
0.01 |
0.02 |
0.07 |
0.07 |
Gain on available for sale
securities |
— |
— |
— |
(0.04) |
Share-based compensation expense |
0.01 |
0.01 |
0.05 |
0.11 |
Acquisition-related costs |
— |
— |
0.02 |
0.11 |
Insurance-related settlement |
— |
(0.04) |
— |
(0.04) |
Adjusted diluted earnings per
share |
$0.40 |
$0.07 |
$1.48 |
$1.20 |
|
|
|
|
|
Net income (loss), as determined in
accordance with GAAP, to EBITDA and Adjusted EBITDA |
Three Months
Ended December 31, |
Twelve Months
Ended December 31, |
|
2012 |
2011 |
2012 |
2011 |
|
|
|
|
|
Net income |
$6,693 |
$1,359 |
$23,504 |
$17,441 |
Interest expense |
7,021 |
6,908 |
27,984 |
28,092 |
Income tax expense |
3,530 |
960 |
12,109 |
7,982 |
Depreciation and amortization expense
(a) |
5,818 |
5,046 |
21,809 |
19,103 |
EBITDA |
$23,062 |
$14,273 |
$85,406 |
$72,618 |
Restructuring charges |
300 |
698 |
1,615 |
1,953 |
Gain on available for sale
securities |
— |
— |
— |
(753) |
Share-based compensation expense |
66 |
392 |
1,235 |
3,173 |
Acquisition-related costs |
— |
20 |
443 |
2,821 |
Insurance-related settlement |
— |
(1,250) |
— |
(1,250) |
ADJUSTED EBITDA |
$23,428 |
$14,133 |
$88,699 |
$78,562 |
|
|
|
|
|
a)
Depreciation and amortization expense shown in the above schedule
excludes amortization of debt issuance costs, which are included as
a component of interest expense. |
For additional information regarding our non-GAAP financial
measures, see "Non-GAAP Results."
Reconciliation of First Quarter 2013 Earnings Guidance
to GAAP
For the first quarter of 2013, the Company is currently
estimating diluted Adjusted EPS to be in the range of $0.24 to
$0.37 per share. On a GAAP basis, the Company is currently
estimating diluted EPS to be in the range of $0.21 to $0.36 per
share.
* Rounding differences may occur for various calculated
amounts.
CONTACT: Investor Contacts:
Philip Kranz, Dresner Corporate Services,
312-780-7240, pkranz@dresnerco.com
Churchill Capital Corpor... (NASDAQ:CCIX)
Historical Stock Chart
From Jun 2024 to Jul 2024
Churchill Capital Corpor... (NASDAQ:CCIX)
Historical Stock Chart
From Jul 2023 to Jul 2024