Washington, D.C. 20549

Form 8-K


Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of Report (Date of earliest event Reported): August 9, 2018  

Houston Wire & Cable Company
(Exact Name of Registrant as Specified in Charter)

(State or Other Jurisdiction of Incorporation)(Commission File Number)(I.R.S. Employer Identification Number)


10201 North Loop East, Houston, Texas 77029
(Address of Principal Executive Offices) (Zip Code)

(713) 609-2100
(Registrant's telephone number, including area code)

Not Applicable
(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 [ ]  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
 [ ]  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
 [ ]  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
 [ ]  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))


Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2). Emerging growth company [   ]


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. [   ]


Item 2.02. Results of Operations and Financial Condition.

On August 9, 2018, Houston Wire & Cable Company announced financial results for the quarter ended June 30, 2018. A copy of Houston Wire & Cable Company’s press release is attached as Exhibit 99.1 and incorporated by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits

99.1 Press Release of Houston Wire & Cable Company dated August 9, 2018


Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 Houston Wire & Cable Company
Date: August 9, 2018By: /s/ Christopher M. Micklas        
  Christopher M. Micklas
  Vice President & CFO



Exhibit Number Description
99.1 Press Release of Houston Wire & Cable Company dated August 9, 2018



Houston Wire & Cable Company Reports Results for the Quarter Ended June 30, 2018

HOUSTON, Aug. 09, 2018 (GLOBE NEWSWIRE) -- Houston Wire & Cable Company (NASDAQ: HWCC) (the “Company”) announced operating results for the second quarter ended June 30, 2018.

Second Quarter 2018 Highlights

Second Quarter Summary
Houston Wire & Cable Company reported net income of $2.6 million, or $0.16 per diluted share, for the quarter ended June 30, 2018, compared to a net loss of $0.1 million, or zero cents loss per diluted share, for the same quarter in 2017.  Operating income in the second quarter 2018 was $4.4 million compared to an operating loss of $0.2 million during the second quarter of 2017.

Jim Pokluda, President and Chief Executive Officer, commented, “We were pleased to post our fourth consecutive quarter of year-over-year revenue growth, as the upward momentum we experienced in the first quarter of 2018 continued into the second quarter. We estimate sales for our project business, which targets end markets for Utility Power Generation, Environmental Compliance, Engineering & Construction, Industrials, and Mechanical Wire Rope, increased 26%, while Maintenance, Repair, and Operations (MRO) sales were up 23% as compared to the second quarter of 2017.”

Gross margin at 23.8% increased 220 basis points from the second quarter of 2017, primarily due to higher product margins driven by ongoing pricing discipline and metals inflation. Operating expenses at $18.0 million were up $1.5 million from Q2 2017 and $0.7 million sequentially, as higher sales activity and margins resulted in more sales commissions and warehouse activity. Operating expenses as a percentage of revenue decreased 270 basis points to 19.1% for Q2 2018 and declined 120 basis points sequentially versus Q1 2018.

Average debt levels for the quarter increased 13.7% from $72.6 million in 2017 to $82.5 million in 2018, primarily for working capital to support higher sales activity and commodity price levels, while the effective interest rate increased from 2.7% in 2017 to 3.7% in 2018.

The effective tax rate for the quarter was 28.0% which includes our best estimate of the impact of the 2017 Tax Cuts and Jobs Act.

Mr. Pokluda further commented, “We are encouraged with the continued improvement in sales, the attainment of higher margin levels and our ability to realize operating expense leverage as activity levels continued to increase. This has resulted in the generation of the highest level of operating income since the fourth quarter of 2014.”

Conference Call
The Company will host a conference call to discuss fourth quarter results today, Thursday August 9, 2018, at 10:00 a.m., C.D.T.  Hosting the call will be James Pokluda, President and Chief Executive Officer, and Christopher Micklas, 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 at www.houwire.com.  

Live call dial-in numbers are as follow:
Toll-Free: (800)-936-7954
International: (720)-545-0048
Conference ID # 7667594

Approximately two hours after the completion of the live call, a telephone replay will be available until August 16, 2018.

Replay, Toll-Free #: (855)-859-2056
Replay, Toll #: (404)-537-3406
Conference ID # 7667594

About the Company 

With 43 years of experience in the industry, Houston Wire & Cable Company, an industrial distributor, is a large provider of products in the U.S market. Headquartered in Houston, Texas, the Company has sales and distribution facilities strategically located throughout the United States.

Standard stock items available for immediate delivery include continuous and interlocked armor cable; instrumentation cable; medium voltage cable; high temperature wire; portable cord; power cable; primary and secondary aluminum distribution cable; 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; corrosion resistant fasteners, hose clamps, and rivets.

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 SEC. These documents are available under the Investor Relations section of the Company’s website at www.houwire.com.

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)

  June 30,  December 31, 
  2018  2017 
Current assets:        
Accounts receivable, net        
  Trade $59,685  $51,031 
  Other  3,006   6,365 
Inventories, net  87,819   88,115 
Income taxes  848   449 
Prepaids  1,742   1,938 
Total current assets  153,100   147,898 
Property and equipment, net  11,399   11,355 
Intangible assets, net  11,627   12,015 
Goodwill  22,353   22,353 
Other assets  409   418 
Total assets $198,888  $194,039 
Liabilities and stockholders' equity        
Current liabilities:        
Book overdraft $1,312  $3,028 
Trade accounts payable  8,010   8,449 
Accrued and other current liabilities  12,301   16,823 
Total current liabilities  21,623   28,300 
Debt  80,149   73,555 
Deferred income taxes  332   414 
Other long term obligations  752   1,026 
Total liabilities  102,856   103,295 
Stockholders' equity:        
Preferred stock, $0.001 par value; 5,000,000 shares authorized, none issued and
Common stock, $0.001 par value; 100,000,000 shares authorized: 20,988,952
  shares issued: 16,526,439 and 16,491,181 outstanding at June 30, 2018 and
  December 31, 2017, respectively
  21   21 
Additional paid-in-capital  54,147   54,006 
Retained earnings  101,889   97,336 
Treasury stock  (60,025)  (60,619)
Total stockholders' equity  96,032   90,744 
Total liabilities and stockholders' equity $198,888  $194,039 


Consolidated Statements of Operations
(In thousands, except share and per share data)

  Three Months Ended  Six Months Ended 
  June 30,  June 30, 
  2018  2017  2018  2017 
Sales $93,852  $75,646  $178,878  $154,355 
Cost of sales  71,505   59,328   136,042   121,106 
Gross profit  22,347   16,318   42,836   33,249 
Operating expenses:                
Salaries and commissions  9,906   8,828   19,100   17,672 
Other operating expenses  7,508   6,827   14,988   14,304 
Depreciation and amortization  541   825   1,086   1,685 
Total operating expenses  17,955   16,480   35,174   33,661 
Operating income (loss)  4,392   (162  7,662   (412)
Interest expense  773   499   1,417   949 
Income (loss) before income taxes  3,619   (661  6,245   (1,361)
Income tax expense (benefit)  1,013   (607  1,692   (854)
Net income (loss) $2,606  $(54 $4,553  $(507)
Earnings (loss) per share:                
Basic $0.16  $(0.00 $0.28  $(0.03)
Diluted $0.16  $(0.00 $0.28  $(0.03)
Weighted average common shares outstanding:                
Basic  16,387,112   16,266,342   16,368,610   16,253,848 
Diluted  16,489,671   16,266,342   16,459,736   16,253,848 


Consolidated Statements of Cash Flows
(In thousands)

  Six Months
Ended June 30,
  2018  2017 
Operating activities        
Net income (loss) $4,553  $(507)
Adjustments to reconcile net income (loss) to net cash used in operating activities:        
Depreciation and amortization  1,086   1,685 
Amortization of unearned stock compensation  703   513 
Provision for inventory obsolescence  191   111 
Deferred income taxes  (82)  1,033 
Other non-cash items  129   99 
Changes in operating assets and liabilities:        
Accounts receivable  (5,403)  (3,624
Inventories  105   1,172 
Prepaids  196   (740)
Income taxes  (399)  (1,826
Book overdraft  (1,716)  (2,663)
Trade accounts payable  (439)  (2,132
Accrued and other current liabilities  (4,483)  (1,454)
Other operating activities  (116)  (59)
Net cash used in operating activities  (5,675)  (8,392
Investing activities        
Expenditures for property and equipment  (741)  (1,226)
Cash received for acquisition     134 
Net cash used in investing activities  (741)  (1,092)
Financing activities        
Borrowings on revolver  179,994   165,025 
Payments on revolver  (173,401)  (155,483)
Payment of dividends  (39)  (34)
Purchase of treasury stock/stock surrendered on vested awards  (138)  (24)
Net cash provided by financing activities  6,416   9,484 
Net change in cash      
Cash at beginning of period      
Cash at end of period $  $ 


     Christopher M. Micklas
     Chief Financial Officer
     Direct:  713.609.2114
     Fax:  713.609.2168