HOUSTON, TX — (Marketwired) — 05/09/13 — Houston Wire & Cable Company (NASDAQ: HWCC) (the “Company”) announced operating results for the first quarter ended March 31, 2013.
Selected highlights were:
Sales of $94.3 million
Record operating cash flow of $12.0 million
Net income of $3.9 million
Diluted EPS of $0.22 per share
Declared a dividend of $0.11 per share
Debt falls to lowest level since 2011
Jim Pokluda, President and Chief Executive Officer commented, “Inconsistent market conditions, and varying levels of regional performance generated sales which grew approximately 2% over the prior year period when adjusted for the reduction in the price of metals. Weakness in certain geographic regions was offset by strong demand in upstream and midstream oil and gas markets and increased industrial demand in the Gulf Coast region. Overall, MRO demand was up slightly while project activity was down slightly.”
“Sales of recently introduced new products such as specialty oil and gas cables and aluminum cables continued to drive performance. Operating cash flow was solid and debt reduction exceeded expectations. Similar to prior quarters, our largest markets performed well and we remain positive in our view that sales and profitability will continue to slowly improve throughout the year.
Gross margin increased to 22.7% as a result of a change in product sales mix. Operating expenses were up $0.7 million or 4.6%, due primarily to additional headcount, principally in sales and marketing. This increase compressed operating margins, which fell to 6.8%, down 40 basis points from 2012.
Interest expense of $0.3 million was flat with the prior year period. An 18% reduction in outstanding debt reduced the balance to its lowest quarterly level since December 2011. The average effective interest rate declined by 9.5%, from 2.1% in 2012 to 1.9% in 2013.
Net income of $3.9 million decreased by 3.8% or $0.2 million from the first quarter of 2012. Diluted earnings per share were $0.22 compared to $0.23 in the comparative year period.
Pokluda further commented, “We are very pleased our strong balance sheet and solid financial performance allowed us to increase our dividend 22.2% to $0.11 per share.”
The Company will host a conference call to discuss first quarter results today, Thursday, May 9, 2013, at 10:00 a.m., C.T. Hosting the call will be James Pokluda, President and Chief Executive Officer and Nicol Graham, Vice President and Chief Financial Officer.
A live audio web cast of the call will be available on the Investor Relations section of the Company-s website .
Approximately two hours after the completion of the live call, a telephone replay will be available until May 16, 2013.
Replay, Toll-Free #: (855) 859-2056
Replay, Toll #: (404) 537-3406
Conference ID # 59574627
With over 35 years experience in the industry, Houston Wire & Cable Company is one of the largest providers of wire and cable in the U.S. market. Headquartered in Houston, Texas, the Company has sales and distribution facilities strategically located throughout the nation.
Standard stock items available for immediate delivery include continuous and interlocked armor, instrumentation, medium voltage, high temperature, portable cord, power cables, primary and secondary aluminum distribution cables, private branded products, including , a low-smoke, zero-halogen cable, and related hardware, including , lifting products and .
Comprehensive value-added services include same-day shipping, knowledgeable sales staff, inventory management programs, just-in-time delivery, logistics support, customized internet-based ordering capabilities and 24/7/365 service.
This release contains comments concerning management-s view of the Company-s future expectations, plans and prospects that constitute forward-looking statements for purposes of the safe harbor provisions under the Private Securities Litigation Reform Act of 1995. Investors are cautioned that forward-looking statements are inherently uncertain and projections about future events may, and often do, vary materially from actual results.
Other risk factors that may cause actual results to differ materially from statements made in this press release can be found in the Company-s Annual Report on Form 10-K and other documents filed with the SEC. These documents are available under the Investor Relations section of the Company-s website at .
Any forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to publicly update such statements.
CONTACT:
Nicol G. Graham
Chief Financial Officer
Direct: 713.609.2125
Fax: 713.609.2168
You must be logged in to post a comment Login