Houston Wire & Cable Company Reports Results for the First Quarter of 2012

2012-5-14

HOUSTON, TX--(Marketwire - May 10, 2012) - Houston Wire & Cable Company (NASDAQ: HWCC) (the "Company") announced operating results for the first quarter ended March 31, 2012.

Selected highlights were:
•Sales of $94.5 million
•Gross margin reached 22.4%
•Operating margins reached 7.2%
•Net income of $4.0 million
•Diluted EPS of $0.23
•Declared dividends totaling $0.09 cents per share

Jim Pokluda, President and Chief Executive Officer, commented, "I am pleased that our sales in the quarter rebounded from the fourth quarter of 2011, increasing 8%, albeit falling short of the prior year period by just over 5%. Comparisons for the first half of 2012 are difficult, because the 2011 period experienced significant project billings and strong MRO demand from formerly delayed work during the recession. Typically, on a sequential basis, sales performance in the first quarter is similar to that of the fourth quarter in the prior year. Although both project and MRO sales were down on a year-over-year basis, I believe our sequential growth, to be a positive indicator of improving market conditions.

"We have continued to invest in additional sales and marketing resources and expanded our product line. The mechanical product is now being housed in four additional distribution facilities and electrical wire is now being carried in one more facility. All business development initiatives drove continued market penetration and resulted in 107 new customers being added during the quarter."