wiredinUSA December 2011

Houston Wire & Cable Company report

Houston Wire & Cable Company has released operating results for the third quarter of 2011. Highlights for the third quarter of 2011, compared to the prior year period, include: Record sales of $105.8 million, increased 16.8% from $90.5 million Gross margin at 21.7%, increased 230 basis points from 19.4% Net income of $5 million, increased 122.3% from $2.2 million Diluted EPS of $0.28, increased 115.4% from $0.13 per share Declared dividend of $0.09 cents per share, an increase of 5.9% from $0.085 cents per share in 2010 Repair and Replacement business, also referred to as maintenance, repair and operations (MRO), was negatively impacted in the quarter, as a result of implementing a new software system in the acquired mechanical wire

businesses. Management expects this situation to improve during the fourth quarter, as the new software system will allow for increased efficiencies in reporting and management. Excluding the estimated impact of these software issues, MRO sales were up approximately 10-15% for the third quarter of 2011. Management estimates that increased copper prices, which primarily affects stock shipments and trails current market movements due to the company’s average cost inventory accounting treatment, had a favorable impact

on sales of approximately 8%. Gross profit increased 30.9 % to $23 million from $17.6 million, due to higher sales volume and improved gross margin.

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wiredInUSA - December 2011