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International Wire Announces Record Fourth Quarter and Full Year 2010 Results

Dépèche transmise le 15 mars 2011 par Business Wire

International Wire Announces Record Fourth Quarter and Full Year 2010 Results

International Wire Announces Record Fourth Quarter and Full Year 2010 Results

CAMDEN, N.Y.--(BUSINESS WIRE)--International Wire Group, Inc. (“the Company”) (Pink Sheets: ITWG) today announced its results for the fourth quarter and full year ended December 31, 2010. Fourth quarter and full year 2010 operating income and net income were at record levels, and significantly greater than 2009 results.

“These strong results were driven by increased customer demand across all major products and markets as well as greater plant utilization, various cost reduction initiatives and other positive factors in all three business segments. We are pleased with the increased levels of profitability following the effects of the weak economy in 2009,” said Rodney D. Kent, Chief Executive Officer of International Wire Group, Inc.

Fourth Quarter Results

Net sales for the quarter ended December 31, 2010 were $183.2 million, an increase of $52.2 million, or 39.8%, compared to $131.0 million for the same period in 2009. This increase was primarily due to a higher selling price of copper, increased sales volume and higher customer pricing/mix (including silver, nickel and tin prices), partially offset by a higher proportion of tolled copper (customer-owned copper, the value of which is excluded from net sales and cost of sales) and an unfavorable currency exchange rate. Excluding the effects of higher copper prices and a higher proportion of tolled copper, net sales increased $29.5 million, or 19.2%, versus the 2009 period. Increased volume of $27.3 million and $3.2 million of improved customer pricing/mix contributed to this increase, partially offset by $1.0 million from unfavorable currency rates in Europe. Total pounds of product sold in the fourth quarter of 2010 increased by 21.5% compared to the fourth quarter of 2009.

Operating income for the three months ended December 31, 2010 was $14.6 million compared to $5.5 million for the three months ended December 31, 2010, an increase of $9.1 million, or 165.5%, primarily due to higher sales levels, greater plant utilization and cost reduction initiatives in all three business segments and increased metal profits in one of the Company’s segments.

Net income of $6.3 million, or $0.64 per basic and diluted share, for the three months ended December 31, 2010 increased by $4.8 million, or $0.49 per basic and diluted share, from the prior year period level of $1.5 million, or $0.15 per basic and diluted share. The increase was due primarily to higher operating income, partially offset by higher interest expense related to the Company’s debt refinancing in April 2010 and loss on early extinguishment of debt.

Full Year Results

Net sales for the full year ended December 31, 2010 were $692.8 million, an increase of $243.3 million, or 54.1%, above comparable 2009 levels of $449.5 million. This increase was primarily due to a higher selling price of copper, increased sales volume, higher customer pricing/mix (including silver, nickel and tin prices) and a lower proportion of tolled copper shipped in the 2010 period compared to the 2009 period, partially offset by an unfavorable currency exchange rate. Excluding the effects of higher copper prices and a lower proportion of tolled copper, net sales increased by $102.7 million, or 17.4%, versus the prior year. Increased volume of $94.4 million and $10.2 million of improved customer pricing/mix contributed to this increase, partially offset by $1.9 million from unfavorable currency rates in Europe. Total pounds of product sold for the full year 2010 increased by 19.9% compared to the full year 2009.

Operating income for the full year ended December 31, 2010 was $49.4 million compared to $16.6 million for the 2009 period, or an increase of $32.8 million, or 197.6%, primarily from higher sales levels, greater plant utilization and cost reduction initiatives in all three business segments and higher metal profits and lower medical claims in one of the Company’s segments.

Net income of $20.5 million, or $2.08 per basic and diluted share, for the full year ended December 31, 2010 was greater than net income in the 2009 period of $4.4 million, or $0.44 per basic and diluted share, primarily from increased operating income partially offset by higher interest expense primarily related to the Company’s debt refinancing in April 2010 and a loss on the early extinguishment of debt.

Net debt (total debt less cash) was $123.6 million as of December 31, 2010, representing a $54.3 million increase from December 31, 2009 primarily from the Company’s debt refinancing in April 2010 including the $59.9 million dividend payment partially offset by increased cash flows from operations.

Non-GAAP Results and Net Debt

In an effort to better assist investors and debt holders 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 taxes, 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 fees 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. For reconciliations of the non-GAAP financial measures to the most directly comparable financial measures calculated and presented in accordance with GAAP, see the financial information set forth below. Net debt as of December 31, 2010 and 2009 are also presented below. In $ millions:

     
Reconciliation of Non-GAAP Adjusted EBITDA
2010   2009
4Q     Year 4Q     Year
Net income $ 6.3 $ 20.5 $ 1.5 $ 4.4
Interest expense 3.8 13.2 2.1 8.7
Income tax expense 3.0 11.2 1.7 2.8
Depreciation & amortization 4.3 16.1 5.4 19.8
Other adjustments   1.5   4.6   2.8   4.4
Adjusted EBITDA $ 18.9 $ 65.6 $ 13.5 $ 40.1
 
 
Net Debt
December 31,
2010 2009
Cash $ 16.6 $ 9.3
Total debt   140.2   78.6
Net debt $ 123.6 $ 69.3
 
 

Additional financial information will be made available on or about March 18, 2011 through the Company’s investor website (http://itwg.client.shareholder.com or http://www.internationalwiregroup.com) in the section titled “Additional Financial Information.”

About International Wire Group, Inc.

International Wire Group, Inc. 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, appliance, automotive, electronics/data communications, industrial/energy and medical device industries. The Company manufactures and distributes its products currently at 18 facilities located in the United States, Belgium, France and Italy.

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 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 2009 financial report. This report is accessible on the “Additional 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.

ITWG-G

Business Wire

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