x
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QUARTERLY
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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¨
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TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
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For
the transition period from
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to
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Delaware
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36-4151663
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(State
or other jurisdiction of incorporation or
organization)
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(I.R.S.
Employer Identification No.)
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10201
North Loop East
Houston,
Texas
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77029
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(Address
of principal executive offices)
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(Zip
Code)
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Large
Accelerated Filer ¨
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Accelerated
Filer x
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Non-Accelerated
Filer ¨
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Smaller
Reporting Company ¨
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Item
1. Financial Statements (unaudited)
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||||
Consolidated
Balance Sheets
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2 | |||
Consolidated
Statements of Income
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3 | |||
Consolidated
Statements of Cash Flows
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4 | |||
Notes
to Consolidated Financial Statements
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5 | |||
PART
II. OTHER INFORMATION
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||||
Item
6. Exhibits
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7 | |||
Signature
Page
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8 |
March 31,
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December 31,
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|||||||
2009
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2008
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|||||||
(unaudited)
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||||||||
Assets
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||||||||
Current
assets:
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||||||||
Accounts
receivable, net
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$ | 41,838 | $ | 50,798 | ||||
Inventories,
net
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67,505 | 73,459 | ||||||
Deferred
income taxes
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1,559 | 1,384 | ||||||
Prepaid
expenses
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1,011 | 829 | ||||||
Total
current assets
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111,913 | 126,470 | ||||||
Property
and equipment, net
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3,179 | 3,274 | ||||||
Goodwill
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2,996 | 2,996 | ||||||
Deferred
income taxes
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2,092 | 1,926 | ||||||
Other
assets
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63 | 87 | ||||||
Total
assets
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$ | 120,243 | $ | 134,753 | ||||
Liabilities
and stockholders' equity
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||||||||
Current
liabilities:
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||||||||
Book
overdraft
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$ | 887 | $ | 4,933 | ||||
Trade
accounts payable
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7,167 | 10,091 | ||||||
Accrued
and other current liabilities
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10,171 | 11,682 | ||||||
Income
taxes payable
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1,688 | 1,644 | ||||||
Total
current liabilities
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19,913 | 28,350 | ||||||
Long
term obligations
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22,567 | 29,808 | ||||||
Stockholders'
equity:
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||||||||
Common
stock, $0.001 par value; 100,000,000 shares authorized: 20,988,952 shares
issued: 17,644,802 outstanding at March 31, 2009 and 17,642,552
outstanding at December 31, 2008, respectively
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21 | 21 | ||||||
Additional
paid-in-capital
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56,468 | 55,901 | ||||||
Retained
earnings
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76,104 | 75,540 | ||||||
Treasury
stock
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(54,830 | ) | (54,867 | ) | ||||
Total
stockholders' equity
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77,763 | 76,595 | ||||||
Total
liabilities and stockholders' equity
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$ | 120,243 | $ | 134,753 |
Three Months Ended
March 31,
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||||||||
2009
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2008
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|||||||
Sales
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$ | 65,832 | $ | 89,441 | ||||
Cost
of sales
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52,019 | 66,774 | ||||||
Gross
profit
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13,813 | 22,667 | ||||||
Operating
Expenses:
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||||||||
Salaries
and commissions
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5,538 | 6,076 | ||||||
Other
operating expenses
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4,620 | 4,984 | ||||||
Depreciation
and amortization
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142 | 127 | ||||||
Total
operating expenses
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10,300 | 11,187 | ||||||
Operating
income
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3,513 | 11,480 | ||||||
Interest
expense
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155 | 541 | ||||||
Income
before income taxes
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3,358 | 10,939 | ||||||
Income
taxes
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1,294 | 4,202 | ||||||
Net
income
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$ | 2,064 | $ | 6,737 | ||||
Earnings
per share:
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||||||||
Basic
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$ | 0.12 | $ | 0.37 | ||||
Diluted
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$ | 0.12 | $ | 0.37 | ||||
Weighted
average common shares outstanding:
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||||||||
Basic
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17,642,856 | 18,081,809 | ||||||
Diluted
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17,649,340 | 18,121,280 | ||||||
Dividends
declared per share
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$ | 0.085 | $ | 0.085 |
Three
Months
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||||||||
Ended March 31,
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||||||||
2009
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2008
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|||||||
Operating
activities
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||||||||
Net
income
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$ | 2,064 | $ | 6,737 | ||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
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||||||||
Depreciation
and amortization
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142 | 127 | ||||||
Amortization
of capitalized loan costs
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20 | 20 | ||||||
Amortization
of unearned stock compensation
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599 | 519 | ||||||
Provision
for returns and allowances
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(45 | ) | (11 | ) | ||||
Provision
for inventory obsolescence
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147 | (6 | ) | |||||
Deferred
income taxes
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(341 | ) | (447 | ) | ||||
Changes
in operating assets and liabilities:
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||||||||
Accounts
receivable
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9,005 | 2,382 | ||||||
Inventories
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5,807 | (249 | ) | |||||
Prepaid
expenses
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(182 | ) | (193 | ) | ||||
Other
assets
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4 | (18 | ) | |||||
Book
overdraft
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(4,046 | ) | (1,965 | ) | ||||
Trade
accounts payable
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(2,924 | ) | 1,379 | |||||
Accrued
and other current liabilities
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(1,511 | ) | (5,086 | ) | ||||
Income
taxes payable
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44 | 4,533 | ||||||
Net
cash provided by operating activities
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8,783 | 7,722 | ||||||
Investing
activities
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||||||||
Expenditures
for property and equipment
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(48 | ) | (116 | ) | ||||
Net
cash used in investing activities
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(48 | ) | (116 | ) | ||||
Financing
activities
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||||||||
Borrowings
on revolver
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67,124 | 91,157 | ||||||
Payments
on revolver
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(74,365 | ) | (86,387 | ) | ||||
Proceeds
from exercise of stock options
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6 | 18 | ||||||
Payment
of dividends
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(1,500 | ) | (1,527 | ) | ||||
Excess
tax benefit for options
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— | 41 | ||||||
Purchase
of treasury stock
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— | (10,908 | ) | |||||
Net
cash used in financing activities
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(8,735 | ) | (7,606 | ) | ||||
Net
change in cash
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— | — | ||||||
Cash
at beginning of period
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— | — | ||||||
Cash
at end of period
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$ | — | $ | — |
Three Months Ended
March 31,
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||||||||
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2009
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2008
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||||||
Denominator:
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||||||||
Weighted
average common shares for basic earning per share
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17,642,856 | 18,081,809 | ||||||
Effect
of dilutive securities
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6,484 | 39,471 | ||||||
Weighted
average common shares for diluted earnings per share
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17,649,340 | 18,121,280 |
2008
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||||
Expected
volatility
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68 | % | ||
Expected
life in years
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5.5
years
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|||
Risk-free
interest rate
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3.82 | % | ||
Dividend
yield
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2.50 | % |
Exhibit
Number
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Document
Description
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31.1
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Certification by Charles A.
Sorrentino pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act of
2002.
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31.2
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Certification by Nicol G. Graham
pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.
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32.1
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Certification by Charles A.
Sorrentino and Nicol G. Graham pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
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Date: August
4, 2009
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HOUSTON
WIRE & CABLE COMPANY
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BY: /s/ Nicol G. Graham
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Nicol
G. Graham, Chief Financial
Officer
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Exhibit
Number
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Document
Description
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31.1
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Certification by Charles A.
Sorrentino pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant
to Section 302 of the Sarbanes-Oxley Act of
2002.
|
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31.2
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Certification by Nicol G. Graham
pursuant to Rule 13a-14(a) and 15d-14(a), as adopted pursuant to Section
302 of the Sarbanes-Oxley Act of 2002.
|
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32.1
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Certification by Charles A.
Sorrentino and Nicol G. Graham pursuant to 18 U.S.C. Section 1350, as
adopted pursuant to Section 906 of the Sarbanes-Oxley Act of
2002.
|