Optical Cable Corporation Reports Second Quarter 2014 Financial Results - WFXG FOX54 Augusta - Your News One Hour Earlier

Optical Cable Corporation Reports Second Quarter 2014 Financial Results

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SOURCE Optical Cable Corporation

ROANOKE, Va., June 11, 2014 /PRNewswire/ -- Optical Cable Corporation (Nasdaq GM: OCC) ("OCC®" or the "Company") today announced financial results for its fiscal second quarter ended April 30, 2014.

Second Quarter 2014 Financial Results

Consolidated net sales for the second quarter of fiscal year 2014 increased 5.6% to $20.2 million, compared to net sales of $19.1 million for the second quarter of fiscal year 2013.  Sequentially, net sales increased 22.1% in the second quarter of fiscal year 2014, compared to net sales of $16.5 million for the first quarter of fiscal year 2014.

Gross profit for each of the second quarters of fiscal years 2014 and 2013 was $6.7 million.  Gross profit margin, or gross profit as a percentage of net sales, was 33.0% in the second quarter of fiscal year 2014, compared to 34.9% in the second quarter of fiscal year 2013.

OCC recorded a net loss attributable to the Company of $143,000, or $0.02 per basic and diluted share, for the second quarter of fiscal year 2014, compared to net income attributable to the Company of $42,000, or $0.01 per basic and diluted share, for the second quarter of fiscal year 2013. 

Fiscal Year-to-Date 2014 Financial Results

Consolidated net sales for the first half of fiscal year 2014 increased approximately 1.0% to $36.7 million, compared to net sales of $36.4 million for the same period in fiscal year 2013.  The Company experienced a year-over-year increase in net sales during the first half of fiscal year 2014 in its commercial markets; however, this increase was offset by decreases in net sales in its specialty markets.

Gross profit was $12.1 million in the first half of fiscal year 2014, compared to $13.2 million in the first half of fiscal 2013.  Gross profit margin was 32.9% in the first half of fiscal year 2014, compared to 36.2% in the first half of fiscal year 2013. 

OCC recorded a net loss attributable to the Company of $555,000, or $0.09 per basic and diluted share, for the first half of fiscal year 2014, compared to net income attributable to the Company of $172,000, or $0.03 per basic and diluted share, for the same period last year.

Management's Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said, "During the second quarter, we were pleased to achieve increased top-line growth with a 22.1% sequential increase in net sales.  We believe these sales results reflect the underlying strength of our business.  We are also making progress on a number of new product launches planned for later this year. These new product launches will mark a culmination of efforts to maintain and build on OCC's role as a market leader and will enable us to capitalize on additional growth opportunities."

Mr. Wilkin continued, "Our balance sheet remains strong and we continue to deliver value to our shareholders through our regular quarterly dividend, which currently is providing an annual yield of approximately 2.2%.  We are confident that we have the right strategies in place to drive growth and we will continue our efforts to enhance value for shareholders."

Conference Call Information

As previously announced, OCC will host a conference call today, June 11, 2014, at 11:00 a.m. Eastern Time.  Individuals wishing to participate in the conference call should call (888) 868-9083 or (973) 935-8512.  For interested individuals unable to join the call, a replay will be available through June 18, 2014, by dialing (855) 859-2056 or (404) 537-3406, pass code 56418989.  The call will also be broadcast live over the Internet and can be accessed by visiting the investor relations section of the Company's website at www.occfiber.com.

Company Information

Optical Cable Corporation ("OCC®") is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market (or non-carrier market), offering an integrated suite of high quality, warranted products, which operate as a system solution or seamlessly integrate with other providers' offerings.  OCC's product offerings include designs for uses ranging from commercial, enterprise network, datacenter, wireless, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical, wireless carrier and broadcast applications.  OCC products include fiber optic and copper cabling, fiber optic and copper connectors, specialty fiber optic and copper connectors, fiber optic and copper patch cords, pre-terminated fiber optic and copper cable assemblies, racks, cabinets, datacom enclosures, fiber optic and copper patch panels, face plates, multi-media boxes, wireless distributed antenna systems, fiber optic reels and accessories and other cable and connectivity management accessories.  OCC products are designed to meet the most demanding needs of end-users, delivering a high degree of reliability and outstanding performance characteristics. 

OCC® is internationally recognized for pioneering the design and production of fiber optic cables for the most demanding military field applications, as well as of fiber optic cables suitable for both indoor and outdoor use, and creating a broad product offering built on the evolution of these fundamental technologies.  OCC also is internationally recognized for its role in establishing copper connectivity data communications standards, through its innovative and patented technologies.

Founded in 1983, OCC is headquartered in Roanoke, Virginia with offices, manufacturing and warehouse facilities located in each of Roanoke, Virginia, near Asheville, North Carolina and near Dallas, Texas.  OCC's facilities are ISO 9001:2008 registered, and OCC's Roanoke and Dallas facilities are MIL-STD-790F certified.

Optical Cable Corporation, OCC®, Procyon®, Superior Modular Products, SMP Data Communications, Applied Optical Systems, and associated logos are trademarks of Optical Cable Corporation.

Further information about OCC® is available at www.occfiber.com.

FORWARD-LOOKING INFORMATION

This news release by Optical Cable Corporation and its subsidiaries (collectively, the "Company" or "OCC") may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations, and such known and unknown variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company's future results of operations and future financial condition, and/or the future equity value of the Company.  A partial list of such variables, uncertainties, contingencies and risks that could cause or contribute to such differences from our expectations or that could otherwise adversely affect Optical Cable Corporation and its subsidiaries is set forth in Optical Cable Corporation's quarterly and annual reports filed with the Securities and Exchange Commission ("SEC") under the heading "Forward-Looking Information."  OCC's quarterly and annual reports are available to the public on the SEC's website at http://www.sec.gov.  In providing forward-looking information, the Company expressly disclaims any obligation to update this information, whether as a result of new information, future events or otherwise except as required by applicable laws and regulations. 

(Financial Tables Follow)

 

OPTICAL CABLE CORPORATION

Condensed CONSOLIDATED Statements OF OPERATIONS

(thousands, except per share data)

(unaudited)




Three Months Ended


Six Months Ended


April 30,


April 30,






2014


2013


2014


2013









Net sales

$     20,191


$     19,124


$     36,726


$     36,420

Cost of goods sold

13,531


12,459


24,658


23,231









      Gross profit

6,660


6,665


12,068


13,189









SG&A expenses

6,836


6,405


12,882


12,593

Royalty (income) expense, net

17


(44)


46


4

Amortization of intangible assets

10


23


19


47









      Income (loss) from operations

(203)


281


(879)


545









Interest expense, net

(111)


(113)


(224)


(221)

Other, net

1


(11)


23


(15)

      Other expense, net

(110)


(124)


(201)


(236)









      Income (loss) before income taxes

(313)


157


(1,080)


309









Income tax expense (benefit)

(157)


82


(480)


122









      Net income (loss)

$       (156)


$            75


$       (600)


$          187









Net income (loss) attributable to








     noncontrolling interest

(13)


33


(45)


15









Net income (loss) attributable to OCC

$       (143)


$            42


$        (555)


$          172









Net income (loss) attributable to OCC       








     per share: Basic and diluted

$      (0.02)


$         0.01


$      (0.09)


$         0.03









Weighted average shares outstanding:








     Basic and diluted

6,037


6,219


6,039


6,265









Cash dividends declared per common share

$         0.02


$       0.02


$       0.04


$       0.04

 

OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(thousands)

(unaudited)




April 30,


October 31,


2014


2013

Cash

$               291


$             750

Trade accounts receivable, net

11,500


9,952

Inventories

18,473


18,234

Other current assets

3,510


2,874

     Total current assets

33,774


31,810

Non-current assets

13,757


13,605

     Total assets

$         47,531


$       45,415





Current liabilities

$           7,028


$         4,824

Non-current liabilities

11,385


11,031

     Total liabilities

18,413


15,855

Total shareholders' equity attributable to OCC

29,801


30,199

Noncontrolling interest

(683)


(639)

     Total shareholders' equity

29,118


29,560

     Total liabilities and shareholders' equity

$        47,531


$        45,415

 

AT THE COMPANY:                                


Neil Wilkin                                                 

Tracy Smith

Chairman, President & CEO                        

Senior Vice President & CFO

(540) 265-0690                                           

(540) 265-0690

investorrelations@occfiber.com                   

investorrelations@occfiber.com



AT JOELE FRANK, WILKINSON BRIMMER KATCHER:


Andrew Siegel                                            

Aaron Palash

(212) 355-4449 ext. 127                              

(212) 355-4449 ext. 103

occ-jfwbk@joelefrank.com

occ-jfwbk@joelefrank.com

 

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