World News: 22:30 GMT Thursday 8th November 2018. [Houston Wire & Cable via Globe Newswire via SPi World News]
HOUSTON, Nov. 08, 2018 (GLOBE NEWSWIRE) -- Houston Wire & Cable Company (NASDAQ: HWCC) (the “Company”) announced operating results for the third quarter ended September 30, 2018.
Third Quarter 2018 Highlights
Jim Pokluda, President and Chief Executive Officer, commented, “We were pleased to post our fifth consecutive quarter of year-over-year revenue growth, as customer demand and end market strength remained much improved over the prior year. We estimate sales for our project business, which targets end markets for Utility Power Generation, Environmental Compliance, Engineering & Construction, Industrials, and Mechanical Wire Rope, increased 13%, while Maintenance, Repair, and Operations (MRO) sales were up 10%, as compared to the third quarter of 2017.”
Gross margin at 23.8% increased 90 basis points from the third quarter of 2017, primarily due to higher product margins driven by ongoing pricing discipline and product mix as metals prices remained relatively consistent year over year. Operating expenses at $18.3 million were up $1.8 million from Q3 2017 and $0.4 million sequentially. During the quarter, these expenses were elevated by approximately $0.4 million as the Company completed two warehouse moves and one warehouse reorganization. Operating expenses as a percentage of revenue remained relatively flat to 2017 at 20.4%.
Debt for the quarter decreased by $6.7 million to $73.4 million, primarily from increased earnings and improved working capital efficiency, while the effective interest rate increased from 3.7% in the second quarter to 3.8% in the third quarter of 2018.
The effective tax rate for the quarter was a benefit of 6.4%, which included the impact of a release of the Company’s $1.0 million valuation allowance established in 2017 and the impact of lower corporate tax rates under the 2017 Tax Cuts and Jobs Act.
Mr. Pokluda further commented, “Our improved year-over-year results are being driven by on-going recovery of end-market activity, customer demand, and excellent execution of our strategic plan. We are encouraged by these results, and remain laser focused on driving above market performance in the period ahead.”
A live audio web cast of the call will be available on the Investor Relations section of the Company’s website at www.houwire.com.
Live call dial-in numbers are as follow:Toll-Free: (800)-936-7954International: (720)-545-0048Conference ID # 2295115
Approximately two hours after the completion of the live call, a telephone replay will be available until November 16, 2018.
Replay, Toll-Free #: (855)-859-2056 Replay, Toll #: (404)-537-3406 Conference ID # 2295115
Standard stock items available for immediate delivery include continuous and interlocked armor cable; instrumentation cable; medium voltage cable; high temperature wire; portable cord; power cable; primary and secondary aluminum distribution cable; private branded products, including LifeGuard™, a low-smoke, zero-halogen cable; mechanical wire and cable and related hardware, including wire rope, lifting products and synthetic rope and slings; corrosion resistant fasteners, hose clamps, and rivets.
Comprehensive value-added services include same-day shipping, knowledgeable sales staff, inventory management programs, just-in-time delivery, logistics support, customized online ordering capabilities and 24/7/365 service.
Other risk factors that may cause actual results to differ materially from statements made in this press release can be found in the Company’s Annual Report on Form 10-K and other documents filed with the SEC. These documents are available under the Investor Relations section of the Company’s website at .
Any forward-looking statements speak only as of the date of this press release and the Company undertakes no obligation to publicly update such statements.
(Unaudited)(In thousands, except share and per share data)
Christopher M. Micklas
Chief Financial Officer
Globe Newswire: 22:30 GMT Thursday 8th November 2018
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