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Houston Wire & Cable Company Reports Results for the Quarter Ended March 31, 2016
Selected quarterly results were:
- Sales of
$64.7 million - Net loss from operations of
$0.2 million - Cash flow of
$7.6 million - Declared a dividend of
$0.06 per share onMay 3, 2016
First Quarter Summary
Gross margin at 20.7% decreased 100 basis points from the first quarter of 2015, as extremely competitive market conditions and lower demand compressed pricing and as we continued to aggressively reduce our inventory investment. Operating expenses at
Interest expense of
The income tax benefit of
Pokluda continued, "Despite the disappointing financial performance results, our healthy operating cash flow allowed us to again reduce debt and strengthen our balance sheet, including the buy-back of an additional 124,000 shares of stock. The Company considers its performance, stock price, dividend yield and financial position in deciding the best way to reward our shareholders. Accordingly, the upcoming dividend will be paid at the rate of
Conference Call
The Company will host a conference call to discuss first quarter results on
A live audio web cast of the call will be available on the Investor Relations section of the Company's website www.houwire.com.
Approximately two hours after the completion of the live call, a telephone replay will be available until
Replay, Toll-Free #: 855-859-2056
Replay, Toll #: 404-537-3406
Conference ID # 1653519
About the Company
With over 40 years' experience in the industry,
Standard stock items available for immediate delivery include continuous and interlocked armor cable; instrumentation cable; medium voltage cable; high temperature wire; portable cord; power cables; primary and secondary aluminum distribution cables; private branded products, including LifeGuard™, a low-smoke, zero-halogen cable; mechanical wire and cable and related hardware, including wire rope, lifting products and synthetic rope and slings.
Comprehensive value-added services include same-day shipping, knowledgeable sales staff, inventory management programs, just-in-time delivery, logistics support, customized online ordering capabilities and 24/7/365 service.
Forward-Looking Statements
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
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
Consolidated Balance Sheets | ||||||||
(In thousands, except share data) | ||||||||
2016 | 2015 | |||||||
(unaudited) | ||||||||
Assets | ||||||||
Current assets: | ||||||||
Accounts receivable, net | $ | 43,078 | $ | 46,250 | ||||
Inventories, net | 70,436 | 75,777 | ||||||
Deferred income taxes | 3,532 | 3,074 | ||||||
Income taxes | 746 | 932 | ||||||
Prepaids | 1,199 | 648 | ||||||
Total current assets | 118,991 | 126,681 | ||||||
Property and equipment, net | 10,917 | 10,899 | ||||||
Intangible assets, net | 5,612 | 5,984 | ||||||
14,866 | 14,866 | |||||||
Deferred income taxes | 11 | 264 | ||||||
Other assets | 369 | 419 | ||||||
Total assets | $ | 150,766 | $ | 159,113 | ||||
Liabilities and stockholders' equity | ||||||||
Current liabilities: | ||||||||
Book overdraft | $ | 1,586 | $ | 3,701 | ||||
Trade accounts payable | 7,837 | 6,380 | ||||||
Accrued and other current liabilities | 8,846 | 9,568 | ||||||
Total current liabilities | 18,269 | 19,649 | ||||||
Debt | 33,647 | 39,188 | ||||||
Other long term obligations | 538 | 275 | ||||||
Total liabilities | 52,454 | 59,112 | ||||||
Stockholders' equity: | ||||||||
Preferred stock, |
-- | -- | ||||||
Common stock, |
21 | 21 | ||||||
Additional paid-in-capital | 54,897 | 54,621 | ||||||
Retained earnings | 104,864 | 106,048 | ||||||
(61,470 | ) | (60,689 | ) | |||||
Total stockholders' equity | 98,312 | 100,001 | ||||||
Total liabilities and stockholders' equity | $ | 150,766 | $ | 159,113 | ||||
Consolidated Statements of Operations | |||||||
(Unaudited) | |||||||
(In thousands, except share and per share data) | |||||||
Three Months Ended | |||||||
2016 | 2015 | ||||||
Sales | $ | 64,711 | $ | 81,600 | |||
Cost of sales | 51,312 | 63,876 | |||||
Gross profit | 13,399 | 17,724 | |||||
Operating expenses: | |||||||
Salaries and commissions | 6,909 | 7,238 | |||||
Other operating expenses | 5,837 | 6,048 | |||||
Depreciation and amortization | 692 | 712 | |||||
Total operating expenses | 13,438 | 13,998 | |||||
Operating income (loss) | (39 | ) | 3,726 | ||||
Interest expense | 175 | 265 | |||||
Income (loss) before income taxes | (214 | ) | 3,461 | ||||
Income tax expense (benefit) | (30 | ) | 1,275 | ||||
Net income (loss) | $ | (184 | ) | $ | 2,186 | ||
Earnings (loss) per share: | |||||||
Basic | $ | (0.01 | ) | $ | 0.13 | ||
Diluted | $ | (0.01 | ) | $ | 0.13 | ||
Weighted average common shares outstanding: | |||||||
Basic | 16,481,122 | 17,296,978 | |||||
Diluted | 16,481,122 | 17,376,928 | |||||
Dividends declared per share | $ | 0.06 | $ | 0.12 | |||
Consolidated Statements of Cash Flows | |||||||||
(Unaudited) | |||||||||
(In thousands) | |||||||||
Three Months Ended |
|||||||||
2016 | 2015 | ||||||||
Operating activities | |||||||||
Net income (loss) | $ | (184 | ) | $ | 2,186 | ||||
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities: | |||||||||
Depreciation and amortization | 692 | 712 | |||||||
Amortization of unearned stock compensation | 209 | 217 | |||||||
Provision for inventory obsolescence | 166 | 356 | |||||||
Deferred income taxes | (205 | ) | (419 | ) | |||||
Other non-cash items | 30 | 44 | |||||||
Changes in operating assets and liabilities: | |||||||||
Accounts receivable | 3,153 | 6,402 | |||||||
Inventories | 5,175 | 6,972 | |||||||
Book overdraft | (2,115 | ) | (1,634 | ) | |||||
Trade accounts payable | 1,457 | (473 | ) | ||||||
Accrued and other current liabilities | (729 | ) | (5,331 | ) | |||||
Income taxes | 186 | 1,697 | |||||||
Other operating activities | (249 | ) | (440 | ) | |||||
Net cash provided by operating activities | 7,586 | 10,289 | |||||||
Investing activities | |||||||||
Expenditures for property and equipment | (337 | ) | (440 | ) | |||||
Net cash used in investing activities | (337 | ) | (440 | ) | |||||
Financing activities | |||||||||
Borrowings on revolver | 61,842 | 76,746 | |||||||
Payments on revolver | (67,383 | ) | (82,874 | ) | |||||
Payment of dividends | (989 | ) | (2,070 | ) | |||||
Purchase of treasury stock | (719 | ) | (1,651 | ) | |||||
Net cash used in financing activities | (7,249 | ) | (9,849 | ) | |||||
Net change in cash | -- | -- | |||||||
Cash at beginning of period | -- | -- | |||||||
Cash at end of period | $ | -- | $ | -- |
Source:
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