Houston Wire & Cable Company Reports Results for the First Quarter of 2012
(firmenpresse) - HOUSTON, TX -- (Marketwire) -- 05/10/12 -- Houston Wire & Cable Company (NASDAQ: HWCC) (the "Company") announced operating results for the first quarter ended March 31, 2012.
Selected highlights were:
Sales of $94.5 million
Gross margin reached 22.4%
Operating margins reached 7.2%
Net income of $4.0 million
Diluted EPS of $0.23
Declared dividends totaling $0.09 cents per share
Jim Pokluda, President and Chief Executive Officer, commented, "I am pleased that our sales in the quarter rebounded from the fourth quarter of 2011, increasing 8%, albeit falling short of the prior year period by just over 5%. Comparisons for the first half of 2012 are difficult, because the 2011 period experienced significant project billings and strong MRO demand from formerly delayed work during the recession. Typically, on a sequential basis, sales performance in the first quarter is similar to that of the fourth quarter in the prior year. Although both project and MRO sales were down on a year-over-year basis, I believe our sequential growth, to be a positive indicator of improving market conditions.
"We have continued to invest in additional sales and marketing resources and expanded our product line. The mechanical product is now being housed in four additional distribution facilities and electrical wire is now being carried in one more facility. All business development initiatives drove continued market penetration and resulted in 107 new customers being added during the quarter."
Overall market strength remained intact and project activity within the five long-term growth initiatives of Utility Power Generation, Environmental Compliance, Engineering & Construction, Industrials and LifeGuard™, our proprietary private-label product, remained a significant component of overall revenue. New project opportunities and sales increased as a result of several small to medium sized orders from plant expansions and upgrades. However total project sales compared to the prior year period, decreased approximately 5% for the quarter due to a reduction in "mega" project billings.
Sales activity in the Repair and Replacement market, also referred to as Maintenance, Repair and Operations (MRO), was down approximately 5% versus the prior year period, which was primarily due to the slow start in activity during the first two months of the quarter. Management also estimates that copper fluctuations had little or no impact on revenues during the quarter.
While gross margins fell slightly on a sequential basis, the resulting 22.4% was still higher than the prior year period and continued the recent upward trend.
Operating expenses increased 1.7% or $0.2 million from the prior year period, primarily the result of costs associated with a higher headcount and higher levels of consulting and professional fees. The sequential increase in sales, coupled with our continuing focus on expense control, moved operating margins up 110 basis points sequentially to 7.2%. The resulting operating income at $6.8 million was up 28.2% sequentially.
Interest expense of $0.3 million was lower than the prior year period, as average debt levels fell from $55.4 million in 2011 to $47.6 million in the first quarter of 2012 and the effective interest rate declined from 2.3% in 2011 to 2.1% in 2012. The effective tax rate for the quarter of 38.6% remained in line with the 2011 annual rate, but was up slightly from the 38.4% level in 2011, primarily due to the impact of higher state income taxes.
Net income increased sequentially by 31.6% to $4.0 million, showing the leverage of our model. Diluted earnings per share were $0.23, compared to the $0.17 on a sequential basis.
The Company will host a conference call to discuss first quarter results on Thursday, May 10, 2012 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 17, 2012.
Replay Dial In: 855.859.2056
International Replay: 404.537.3406
Confirmation Code: 77394778
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, 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.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
The accompanying Notes are an integral part of these Consolidated Financial Statements.
CONTACT:
Nicol G. Graham
Chief Financial Officer
Direct: 713.609.2125
Fax: 713.609.2168
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Datum: 10.05.2012 - 06:52 Uhr
Sprache: Deutsch
News-ID 1112994
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