International Wire Announces First Quarter 2015 Results
By Business Wire News
By Business Wire News
International Wire Group Holdings, Inc. (“the Company”) (OTC Pink: ITWG) today announced results for the first quarter ended March 31, 2015. First quarter 2015 operating income was lower than in the first quarter of 2014.
“First quarter 2015 results were mixed for our major markets. Sales were higher in the aerospace and defense, electronics and data communications, medical device and European markets, but declined in the automotive/specialty vehicles, medical electronics, industrial and energy and consumer and appliance markets. Demand for our silver-plated and tin-plated products in the industrial and energy market, as well as those used in mining, oil exploration and drilling applications, remained soft,” said Edwin J. Flynn, Chief Executive Officer of International Wire Group Holdings, Inc.
First Quarter Results
Net sales for the quarter ended March 31, 2015 were $177.6 million, a decrease of $16.7 million, or 8.6%, compared to $194.3 million for the same period in 2014. Excluding the effects of lower copper prices and a lower proportion of tolled copper, net sales decreased $11.4 million, or 5.9%, versus the same period in 2014. This decrease resulted from $10.9 million of lower sales volume and $2.7 million due to the effects of unfavorable foreign currency exchange rates, partially offset by $2.2 million of higher customer pricing/mix. Total pounds of product sold in the first quarter of 2015 decreased by 5.8% compared to the first quarter of 2014.
Operating income for the three months ended March 31, 2015 was $12.6 million compared to $14.5 million for the 2014 period, a decrease of $1.9 million, or 13.1%, primarily from lower sales volume, lower silver and non-silver metal profits and less favorable plant utilization, partially offset by higher LIFO/copper profits.
Net income was $4.3 million and $5.2 million for the three months ended March 31, 2015 and 2014, respectively. The decrease was due primarily to lower operating income in the 2015 period.
Net income per basic share of $0.80 for the three months ended March 31, 2015 decreased by $0.06 from the 2014 period net income of $0.86 per basic share. Net income per diluted share of $0.79 for the three months ended March 31, 2015 decreased by $0.02 from the 2014 period net income of $0.81 per basic share.
The decrease in net income per basic share resulted from lower net income, partially offset by a decrease in outstanding shares in the 2015 period compared to the 2014 period due to the repurchase of common stock in the 2014 period. The decrease in net income per diluted share resulted from lower net income, partially offset by a decrease in the number of outstanding shares and stock options in the 2015 period compared to the 2014 period due to the repurchase of common stock and stock options in the 2014 period.
Non-GAAP Results and Net Debt
In an effort to better assist investors and noteholders in understanding the Company’s financial results, as part of this release, the Company is also providing Adjusted EBITDA which is a measure not defined under accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA is net income excluding interest expense, income tax expense, depreciation and amortization expense, impairment charges, stock compensation expense, gain/loss on sale of property, plant and equipment and assets held for sale, amortization of deferred financing costs and loss on early extinguishment of debt. Management uses Adjusted EBITDA as a measure in evaluating the performance of our business. Other companies may define Adjusted EBITDA differently. As a result, our measures of Adjusted EBITDA may not be directly comparable to measures used by other companies. Below is a reconciliation of this non-GAAP financial measure to the most directly comparable financial measures calculated and presented in accordance with GAAP. Net debt as of March 31, 2015 and December 31, 2014 is also presented below. In $ millions:
Reconciliation of Net Income to Non-GAAP Adjusted EBITDA
|1Q 2015||1Q 2014|
|Income tax expense||2.2||3.2|
|Depreciation & amortization||4.3||4.3|
|Amortization of deferred financing costs||0.5||0.4|
|March 31,||December 31,|
Additional financial information will be made available on or about May 15, 2015 through the Company’s investor website (http://itwg.client.shareholder.com or http://www.internationalwiregroup.com) in the section titled “Financial Information.”
About International Wire Group Holdings, Inc.
International Wire Group Holdings, Inc., through its subsidiaries, is a manufacturer and marketer of wire products, including bare, silver-plated, nickel-plated and tin-plated copper wire, for other wire suppliers, distributors and original equipment manufacturers. Its products include a broad spectrum of copper wire configurations and gauges with a variety of electrical and conductive characteristics and are utilized by a wide variety of customers primarily in the aerospace, automotive/specialty vehicles, consumer and appliance, electronics and data communications, industrial and energy, medical device and medical electronics markets. The Company has eighteen manufacturing and two distribution facilities located in the United States, Belgium, France, Italy and Poland.
Forward-Looking Information is Subject to Risk and Uncertainty
Certain statements in this release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “believes,” “expects,” “may,” “will,” “should,” “seeks,” “pro forma,” “anticipates,” “intends,” “plans,” “estimates,” or the negative of any thereof or other variations thereof or comparable terminology, or by discussions of strategy or intentions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. As a result, these statements speak only as of the date they were made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Many important factors could cause our results to differ materially from those expressed in forward-looking statements. These factors include, but are not limited to, fluctuations in our operating results and customer orders, unexpected decreases in demand or increases in inventory levels, changes in the price of copper, tin, nickel and silver, the failure of our acquisitions and expansion plans to perform as expected, the competitive environment, our reliance on our significant customers, lack of long-term contracts, substantial dependence on business outside of the U.S. and changes in exchange rates and risks associated with our international operations, limitations due to our indebtedness, loss of key employees or the deterioration in our relationship with employees, litigation, claims, liability from environmental laws and regulations and other factors.
For additional information regarding the factors that may cause our actual results to differ from those expected by our forward-looking statements, see “Risk Factors” in the Company’s 2014 financial report. This report is accessible on the “Financial Information” page on the Investor Relations portion of the Company’s website, available at http://itwg.client.shareholder.com or http://www.internationalwiregroup.com.
International Wire Group Holdings, Inc.
Donald F. DeKay, 315-245-3800
Senior Vice-President, Chief Financial Officer and Secretary