Coleman Cable Fourth-Quarter 2009 Financial Results Show Significant Improvement

Friday, Mar 05, 2010

Coleman Cable, Inc., a leading manufacturer and innovator of electrical and electronic wire and cable products, announced fourth-quarter 2009 financial results.

-- Sales of $140.1 million

-- Adjusted Earnings Before Interest, Taxes, Depreciation and Amortization (Adjusted EBITDA) of $14.6 million

-- Adjusted Earnings Per Share (Adjusted EPS) of $0.09 per diluted share

Management Comments

"We are pleased to report fourth-quarter 2009 Adjusted EBITDA and Adjusted EPS that show significant improvement on a year-over-year basis and represent the fourth consecutive quarter of sequential improvement," said Gary Yetman, president and CEO. "This continued improvement reflects the positive effect of our cost reductions and capacity adjustments. In light of our 2009 efforts to improve our cost structure, we believe we are well positioned to benefit from any future improvement in the economy and increased demand."

Mr. Yetman continued, "We have also continued to improve our capital structure. In February 2010, we successfully completed the refinancing of our 9.875% unsecured senior notes due 2012 through the private placement of $235.0 million of 9.0% unsecured senior notes due in 2018. We undertook this refinancing to capitalize on what we believe were favorable conditions in the bond market at the time and to extend the maturity of our senior notes from 2012 to 2018, while at the same time reducing our annual cash interest requirements by approximately $1.0 million."

Mr. Yetman concluded, "Despite stable volume levels, our outlook remains fairly cautious as we believe economic conditions will remain challenging in the near term, with continued pricing pressures resulting from excess industry capacity and weak overall demand. Additionally, our visibility of when we may experience a sustained period of volume growth remains limited. Factoring in a continuation of the demand trends seen thus far in 2010, stability in copper prices, higher revenue from our recently introduced industrial cable products, and the fact that the first quarter of 2010, as in prior years, will likely reflect a degree of seasonal softness as compared to the back half of the year, we expect first-quarter 2010 net sales to be between $140 million and $150 million, Adjusted EBITDA to be between $12.5 million and $14.5 million, and Adjusted EPS to be between $0.05 and $0.11 per diluted share."

 

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Source: Street Insider