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International Wire Announces Record First Quarter 2011 Results

^{Published on 2011-05-13 05:51:04 - Market Wire}
 

CAMDEN, N.Y.--([ BUSINESS WIRE ])--International Wire Group, Inc. (athe Companya) (Pink Sheets: ITWG) today announced its results for the first quarter ended March 31, 2011. First quarter 2011 operating income and net income were at record levels, and well above first quarter 2010 results.

"The year started strong following a very successful 2010 driven by continued higher customer demand in all three segments and across all major markets. Our plants are operating effectively and there is open capacity for further growth"

aThe year started strong following a very successful 2010 driven by continued higher customer demand in all three segments and across all major markets. Our plants are operating effectively and there is open capacity for further growth,a said Rodney D. Kent, Chief Executive Officer of International Wire Group, Inc.

First Quarter Results

Net sales for the quarter ended March 31, 2011 were $220.5 million, an increase of $52.8 million, or 31.5%, compared to $167.7 million for the same period in 2010. 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 $38.4 million, or 21.1%, versus the 2010 period. Increased volume of $29.5 million and $9.0 million of improved customer pricing/mix contributed to this increase, partially offset by $0.1 million from unfavorable currency rates in Europe. Total pounds of product sold in the first quarter of 2011 increased by 19.5% compared to the first quarter of 2010.

Operating income for the three months ended March 31, 2011 was $14.4 million, a record first quarter, compared to $11.2 million for the three months ended March 31, 2010, an increase of $3.2 million, or 28.6%, primarily due to higher sales in all three business segments. Operating income increased in all three business segments in the 2011 period compared to the 2010 period.

Net income of $6.7 million, or $0.68 per basic and $0.67 per diluted share, for the three months ended March 31, 2011 increased by $0.9 million, or $0.10 per basic and $0.09 per diluted share, from the prior year period level of $5.8 million, or $0.58 per basic and diluted share. The increase was due primarily to higher operating income, partially offset by higher interest expense related to the Companya™s debt refinancing in April 2010 and loss on early extinguishment of debt.

Non-GAAP Results and Net Debt

In an effort to better assist investors and debt holders in understanding the Companya™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 March 31, 2011 and December 31, 2010 are also presented below. In $ millions:

Additional financial information will be made available on or about May 13, 2011 through the Companya™s investor website ([ http://itwg.client.shareholder.com ] or [ http://www.internationalwiregroup.com ]) in the section titled aAdditional Financial Information.a

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 aforward-lookinga 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 abelieves,a aexpects,a amay,a awill,a ashould,a aseeks,a apro forma,a aanticipates,a aintends,a aplans,a aestimates,a 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 aRisk Factorsa in the Companya™s 2010 financial report. This report is accessible on the aAdditional Financial Informationa page on the Investor Relations portion of the Companya™s website, available at [ http://itwg.client.shareholder.com ] or [ http://www.internationalwiregroup.com ].

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