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8-K - FORM 8-K - OPTICAL CABLE CORPd314183d8k.htm
EX-99.2 - TRANSCRIPT OF EARNINGS CALL ON MARCH 12, 2012 - OPTICAL CABLE CORPd314183dex992.htm

Exhibit 99.1

 

LOGO   

OPTICAL CABLE CORPORATION

5290 Concourse Drive

Roanoke, VA 24019

(Nasdaq GM: OCCF)

www.occfiber.com

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   

FOR IMMEDIATE RELEASE

OPTICAL CABLE CORPORATION REPORTS

FIRST QUARTER 2012 FINANCIAL RESULTS

ROANOKE, VA, March 12, 2012 — Optical Cable Corporation (Nasdaq GM: OCC) (“OCC®” or the “Company”) today announced financial results for its fiscal first quarter ended January 31, 2012.

OCC reported consolidated net sales of $17.3 million and net income attributable to the Company of $0.03 per basic and diluted share for the first quarter of fiscal 2012.

First Quarter 2012 Financial Results

The Company’s consolidated first quarter net sales of $17.3 million decreased by $379,000, or 2.1%, compared to net sales in the comparable prior year period.

OCC’s sales in its commercial markets increased by approximately 14% during the first quarter of fiscal year 2012 compared to the same period last year. However, decreases in the Company’s specialty markets—particularly its military and severe duty markets—offset the increase.

Gross profit for the quarter was $6.2 million, slightly lower than the Company’s gross profit of $6.4 million in the first quarter of fiscal year 2011. Gross profit margin, or gross profit as a percentage of net sales, decreased slightly to 35.5% in the first quarter of fiscal year 2012 from 36.3% in the first quarter of fiscal year 2011.


Optical Cable Corp. – First Quarter 2012 Earnings Release

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OCC recorded net income attributable to the Company of $192,000, or $0.03 per basic and diluted share, for the first quarter of fiscal year 2012, compared to $402,000, or $0.06 per basic and diluted share, for the first quarter of fiscal year 2011.

Management’s Comments

Neil Wilkin, President and Chief Executive Officer of OCC, said “Our 2012 fiscal year is off to a good start—we delivered another solid quarter of profitability and are building on the momentum achieved in 2011. We were encouraged, during our first fiscal quarter, by strong demand for our integrated solutions, which has positively impacted sales of our enterprise connectivity products.”

Mr. Wilkin added, “During our first quarter we maintained our solid balance sheet and continued to return capital to shareholders through the regular quarterly dividend, which the Board recently increased by 50 percent. As we move forward in 2012, we are focused on executing our growth strategy, while further improving operations and controlling costs, to continue delivering positive results and creating value for shareholders. We expect fiscal 2012 to be a year of both sales and earnings growth for OCC.”

Conference Call Information

As previously announced, OCC will host a conference call today, Monday, March 12, 2012, at 10:00 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 March 19, 2012 by dialing (800) 585-8367 or (404) 537-3406, pass code 59480770. 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 communications cabling and connectivity solutions primarily for the enterprise 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, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining 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, patch panels, face plates, multi-media boxes and other cable and connectivity management accessories, and 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.


Optical Cable Corp. – First Quarter 2012 Earnings Release

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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 primarily manufactures its fiber optic cables at its Roanoke facility which is ISO 9001:2008 registered and MIL-STD-790F certified, its enterprise connectivity products at its Asheville facility which is ISO 9001:2008 registered, and its military and harsh environment connectivity products and systems at its Dallas facility which is ISO 9001:2008 registered and MIL-STD-790F certified.

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

Further information about OCC® is available on the Internet 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 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 Corp. – First Quarter 2012 Earnings Release

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OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(thousands, except per share data)

(unaudited)

 

 

 

     Three Months Ended  
     January 31,  
     2012     2011  

Net sales

   $ 17,334      $ 17,713   

Cost of goods sold

     11,184        11,288   
  

 

 

   

 

 

 

Gross profit

     6,150        6,425   

SG&A expenses

     5,965        5,981   

Royalty income, net

     (185     (161

Amortization of intangible assets

     33        108   
  

 

 

   

 

 

 

Income from operations

     337        497   

Interest expense, net

     (144     (150

Other, net

     (1     31   
  

 

 

   

 

 

 

Other expense, net

     (145     (119
  

 

 

   

 

 

 

Income before income taxes

     192        378   

Income tax expense

     40        39   
  

 

 

   

 

 

 

Net income

   $ 152      $ 339   

Net loss attributable to noncontrolling interest

     (40     (63
  

 

 

   

 

 

 

Net income attributable to OCC

   $ 192      $ 402   
  

 

 

   

 

 

 

Net income attributable to OCC per share:

    

Basic and diluted

   $ 0.03      $ 0.06   
  

 

 

   

 

 

 

Weighted average shares outstanding:

    

Basic and diluted

     6,288        6,259   
  

 

 

   

 

 

 

Cash dividends declared per common share

   $ 0.015      $ 0.01   
  

 

 

   

 

 

 

—MORE—


Optical Cable Corp. – First Quarter 2012 Earnings Release

Page 5 of 5

 

OPTICAL CABLE CORPORATION

CONDENSED CONSOLIDATED BALANCE SHEET DATA

(thousands)

(unaudited)

 

 

 

     January 31,
2012
    October 31,
2011
 

Cash and cash equivalents

   $ 455      $ 1,092   

Trade accounts receivable, net

     9,583        10,798   

Inventories

     17,682        16,497   

Other current assets

     3,141        3,136   
  

 

 

   

 

 

 

Total current assets

     30,861        31,523   

Non-current assets

     13,119        13,422   
  

 

 

   

 

 

 

Total assets

   $ 43,980      $ 44,945   
  

 

 

   

 

 

 

Current liabilities

   $ 7,108      $ 8,197   

Non-current liabilities

     8,948        9,025   
  

 

 

   

 

 

 

Total liabilities

     16,056        17,222   

Total shareholders’ equity attributable to OCC

     28,450        28,209   

Noncontrolling interest

     (526     (486
  

 

 

   

 

 

 

Total shareholders’ equity

     27,924        27,723   
  

 

 

   

 

 

 

Total liabilities and shareholders’ equity

   $ 43,980      $ 44,945   
  

 

 

   

 

 

 

###