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 second-quarter 2013 financial results.
Highlights
- Second-quarter 2013 Adjusted Earnings per Share (EPS) of $0.47
per diluted share, a record for the Company since becoming public
in 2007.
- Second-quarter 2013 Adjusted EBITDA of $25.1 million, a record
for the Company.
- First six-month 2013 Adjusted EPS growth of 18.3 percent versus
the same period last year.
Outlook and Dividend
- For the third quarter of 2013, the Company estimates sales
between $230.0 million and $250.0 million and Adjusted EPS between
$0.37 and $0.52.
- Declared quarterly cash dividend of $0.04 per share payable on
August 30, 2013, to stockholders of record as of the close of
business on August 16, 2013.
Second-Quarter 2013 Results
Net sales for the second quarter of 2013 were $233.8 million
compared to $231.2 million, an increase of $2.6 million, from the
second quarter of 2012. Sales volume (measured in total pounds
shipped, on a comparable basis) increased 3.8 percent for the
second quarter of 2013 compared to the same period last year and
increased 7.5 percent compared to the first quarter of 2013. The
increase in net sales mainly reflects higher OEM segment sales, a
greater contribution from the Company's Engineered Solutions
segment, which includes two additional months of results for
Watteredge, partially offset by lower Distribution segment sales
due primarily to lower copper prices, which declined 8.5 percent
for the second quarter on a year-over-year basis. Second-quarter
2013 Adjusted EPS and Adjusted EBITDA were $0.47 per diluted share
and $25.1 million, respectively, compared to $0.46 per diluted
share and $24.1 million, respectively, for the second quarter of
2012.
President and CEO Gary Yetman stated, "Our second quarter 2013
results mark the third consecutive quarter of record Adjusted
EBITDA for the respective calendar quarter, with our second quarter
2013 Adjusted EBITDA of $25.1 million representing an all-time
quarterly high for Coleman. Additionally, our second quarter total
volume was our highest quarterly mark since 2008 and included
all-time highs within several areas of our business."
Mr. Yetman concluded, "Our recent results reflect the diversity
of our business and the strength of our operating platform which
have allowed us to deliver solid results despite copper price
volatility and the negative impact of sequestration on our
Engineered Solutions segment. Looking toward the second half of
2013, we anticipate continued modest demand growth. We also
continue to closely monitor housing and commercial construction
activities and believe we are well positioned to derive additional
benefit from a sustained rebound in these areas. Visibility
with respect to the timing and magnitude of such growth, however,
remains limited and, as such, the benefits from such factors may
not significantly impact our results in the second half of
2013."
On a GAAP basis, the Company recorded earnings of $0.41 per
diluted share for the second quarter of 2013 compared to $0.44 per
diluted share for the second quarter last year. GAAP results
for the 2013 period included restructuring charges and share-based
compensation expense, while results for the 2012 period included
restructuring charges, share-based compensation expense and
acquisition-related costs. 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 August 6, 2013, Coleman's board of directors declared a
quarterly cash dividend of $0.04 per share payable on August 30,
2013, to stockholders of record as of the close of business on
August 16, 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,
August 9, 2013, at 10:00 a.m. Central time. Hosting the call
will be Gary Yetman, President and CEO, and Alan Bergschneider,
Executive Vice President and CFO. 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) EBITDA, which we define as net income before net interest,
income taxes, depreciation and amortization expense ("EBITDA"), (2)
Adjusted EBITDA, which is our measure of EBITDA adjusted to exclude
the impact of certain specifically identified items ("Adjusted
EBITDA"), and (3) 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 report, the specifically identified items include
restructuring charges, share-based compensation expense, and
acquisition-related costs.
We believe both EBITDA and Adjusted EBITDA, when presented in
conjunction with comparable GAAP measures, are useful for investors
because we use that information in evaluating the performance of
our business. We use these measures in the preparation of our
annual operating budgets and serve as an indicator of business
performance and management's effectiveness with specific references
to these indicators. We believe both EBITDA and Adjusted EBITDA
allow us to readily view operating trends, perform analytical
comparisons and identify strategies to improve operating
performance. The usefulness of EBITDA and Adjusted EBITDA as
performance measures is limited by the fact that they both exclude
the impact of interest expense, depreciation and amortization
expense, and taxes. Due to these limitations, we do not, and you
should not, use either EBITDA or Adjusted EBITDA as the only
measures 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 EBITDA and
Adjusted EBITDA differently and, as a result, our measure of EBITDA
and Adjusted EBITDA may not be directly comparable to EBITDA and
Adjusted EBITDA measures of other companies.
Similarly, we believe our use of Adjusted EPS 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 residential
and commercial construction, industrial, OEM, and consumer
applications, with operations in the United States, Honduras, and
Canada. The Company's broad product offering enables it to
provide its customers a single source for many of their wire and
cable requirements. It manufactures the majority of its
products in nine domestic production facilities and sells products
to more than 8,000 active customers in a myriad of end
markets. It operates three segments: Distribution, OEM,
and Engineered Solutions. For more information, visit
www.colemancable.com.
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 Dividends" and also 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 June 30, |
Six Months Ended June 30, |
|
2013 |
2012 |
2013 |
2012 |
NET SALES |
$ 233,798 |
$ 231,232 |
$ 456,311 |
$ 451,723 |
COST OF GOODS SOLD |
198,159 |
195,249 |
386,374 |
385,070 |
|
|
|
|
|
GROSS PROFIT |
35,639 |
35,983 |
69,937 |
66,653 |
SELLING, GENERAL AND ADMINISTRATIVE
EXPENSES |
15,365 |
15,744 |
32,861 |
31,474 |
INTANGIBLE ASSET AMORTIZATION |
1,976 |
1,742 |
4,161 |
3,566 |
RESTRUCTURING CHARGES |
151 |
23 |
369 |
356 |
|
|
|
|
|
OPERATING INCOME |
18,147 |
18,474 |
32,546 |
31,257 |
INTEREST EXPENSE |
6,887 |
7,023 |
13,812 |
14,045 |
OTHER (INCOME) LOSS |
(125) |
(71) |
(233) |
3 |
|
|
|
|
|
INCOME BEFORE INCOME
TAXES |
11,385 |
11,522 |
18,967 |
17,209 |
INCOME TAX EXPENSE |
4,045 |
3,893 |
6,375 |
5,853 |
|
|
|
|
|
NET INCOME |
$ 7,340 |
$ 7,629 |
$ 12,592 |
$ 11,356 |
|
|
|
|
|
EARNINGS PER COMMON SHARE DATA |
|
|
|
|
NET INCOME PER SHARE: |
|
|
|
|
Basic |
$ 0.42 |
$ 0.44 |
$ 0.72 |
$ 0.66 |
Diluted |
0.41 |
0.44 |
0.72 |
0.65 |
|
|
|
|
|
WEIGHTED AVERAGE COMMON SHARES
OUTSTANDING |
|
|
|
|
Basic |
17,445 |
17,086 |
17,269 |
17,072 |
Diluted |
17,675 |
17,309 |
17,433 |
17,308 |
|
|
|
|
|
CASH DIVIDENDS DECLARED PER COMMON SHARE |
$ 0.04 |
$ 0.02 |
$ 0.06 |
$ 0.02 |
|
|
COLEMAN CABLE, INC. AND
SUBSIDIARIES |
CONSOLIDATED BALANCE
SHEETS |
(Thousands, except per share
data) |
(Unaudited) |
|
|
June 30,
2013 |
December 31,
2012 |
|
|
|
ASSETS |
|
|
CURRENT ASSETS: |
|
|
Cash and cash equivalents |
$ 6,408 |
$ 9,562 |
Accounts receivable, net of allowances of
$3,013 and $3,046, respectively |
134,455 |
125,982 |
Inventories |
117,309 |
112,590 |
Deferred income taxes |
4,789 |
4,271 |
Assets held for sale |
1,072 |
1,074 |
Prepaid expenses and other current
assets |
10,864 |
4,071 |
Total current assets |
274,897 |
257,550 |
|
|
|
PROPERTY, PLANT AND EQUIPMENT, NET |
77,526 |
78,914 |
GOODWILL |
66,450 |
66,535 |
INTANGIBLE ASSETS, NET |
33,252 |
37,417 |
DEFERRED INCOME TAXES |
563 |
329 |
OTHER ASSETS |
8,639 |
8,595 |
|
|
|
TOTAL ASSETS |
$ 461,327 |
$ 449,340 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
CURRENT LIABILITIES: |
|
|
Current portion of long-term debt |
$ 18,603 |
$ 35,566 |
Accounts payable |
27,805 |
25,748 |
Accrued liabilities |
33,833 |
38,208 |
|
|
|
Total current liabilities |
80,241 |
99,522 |
|
|
|
LONG-TERM DEBT |
293,804 |
288,273 |
OTHER LONG-TERM LIABILITIES |
4,286 |
3,693 |
DEFERRED INCOME TAXES |
9,670 |
6,687 |
COMMITMENTS AND CONTINGENCIES |
|
|
SHAREHOLDERS' EQUITY: |
|
|
Common stock, par value $0.001; 75,000
authorized; 18,196 and 16,998 issued and outstanding on
June 30, 2013 and December 31, 2012, respectively |
18 |
17 |
Treasury stock, at cost: 484 and 443
shares, respectively |
(4,690) |
(3,918) |
Additional paid-in capital |
106,496 |
94,470 |
Accumulated deficit |
(27,910) |
(39,371) |
Accumulated other comprehensive loss |
(588) |
(33) |
|
|
|
Total shareholders' equity |
73,326 |
51,165 |
|
|
|
TOTAL LIABILITIES AND EQUITY |
$ 461,327 |
$ 449,340 |
|
|
COLEMAN CABLE, INC. AND
SUBSIDIARIES |
Non-GAAP
Results |
(Thousands, except per share
data) |
(unaudited) |
|
Reconciliation of
Non-GAAP Financial Measures |
|
|
Three Months Ended June 30, |
Six Months Ended
June 30, |
|
2013 |
2012 |
2013 |
2012 |
Diluted earnings per share, as
determined in accordance with GAAP, to Adjusted EPS |
|
|
|
|
Earnings per share |
$ 0.41 |
$ 0.44 |
$ 0.72 |
$ 0.65 |
Restructuring charges |
0.01 |
— |
0.01 |
0.01 |
Share-based compensation expense |
0.05 |
— |
0.11 |
0.03 |
Acquisition-related costs |
— |
0.02 |
— |
0.02 |
Adjusted diluted earnings per share |
$ 0.47 |
$ 0.46 |
$ 0.84 |
$ 0.71 |
|
|
|
|
|
|
|
Three Months
Ended June 30, |
Six Months Ended
June 30, |
|
2013 |
2012 |
2013 |
2012 |
Net income, as determined in
accordance with GAAP, to EBITDA and Adjusted EBITDA |
|
|
|
|
Net income |
$ 7,340 |
$ 7,629 |
$ 12,592 |
$ 11,356 |
Interest expense |
6,887 |
7,023 |
13,812 |
14,045 |
Income tax expense |
4,045 |
3,893 |
6,375 |
5,853 |
Depreciation and amortization expense
(a) |
5,362 |
5,083 |
11,102 |
10,414 |
|
|
|
|
|
EBITDA |
$ 23,634 |
$ 23,628 |
$ 43,881 |
$ 41,668 |
|
|
|
|
|
Restructuring charges |
151 |
23 |
369 |
356 |
Share-based compensation expense |
1,273 |
114 |
2,879 |
712 |
Acquisition-related costs |
— |
364 |
— |
366 |
|
|
|
|
|
ADJUSTED EBITDA |
$ 25,058 |
$ 24,129 |
$ 47,129 |
$ 43,102 |
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 Third-Quarter 2013 Earnings Guidance
to GAAP
For the third quarter of 2013, the Company is currently
estimating diluted Adjusted EPS to be in the range of $0.37 to
$0.52 per share. On a GAAP basis, the Company is currently
estimating diluted EPS to be in the range of $0.35 to $0.51 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