Channell Announces First Quarter Results.Business Editors TEMECULA, Calif.--(BUSINESS WIRE)--April 24, 2003 Channell Commercial Corp. (Nasdaq:CHNL CHNL Channel ) today announced unaudited financial results for the first quarter ending March 31, 2003. For the three months ended March 31, 2003, Channell's net revenues were $16.2 million compared with $19.8 million in the same period of 2002. Channell's net loss in the first quarter of 2003 was ($0.3) million or ($0.03) per share compared with net income of $0.5 million or $0.05 per share. Thomas (language) Thomas - A language compatible with the language Dylan(TM). Thomas is NOT Dylan(TM). The first public release of a translator to Scheme by Matt Birkholz, Jim Miller, and Ron Weiss, written at Digital Equipment Corporation's Cambridge Research Laboratory runs Liguori, Chief Financial Officer, said: "First quarter results were in line with expectations. In January January: see month. we sold a building in the U.K. for $2.2 million in cash and intend to relocate re·lo·cate v. re·lo·cat·ed, re·lo·cat·ing, re·lo·cates v.tr. To move to or establish in a new place: relocated the business. v.intr. our U.K. operations to another site in the London London, city, Canada London, city (1991 pop. 303,165), SE Ont., Canada, on the Thames River. The site was chosen in 1792 by Governor Simcoe to be the capital of Upper Canada, but York was made capital instead. London was settled in 1826. area later this year. We expect 2003 earnings to be in the range of $0.26 to $0.30 per share." Today's Conference Call There will be a conference call webcast at www.companyboardroom.com at 2:30 p.m. Eastern time today to discuss today's release. About Channell Channell Commercial is a global designer and manufacturer of telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. equipment primarily supplied to telephone and broadband broadband Term describing the radiation from a source that produces a broad, continuous spectrum of frequencies (contrasted with a laser, which produces a single frequency or very narrow range of frequencies). network operators worldwide. Major product lines include a complete line of thermoplastic A polymer material that turns to liquid when heated and becomes solid when cooled. There are more than 40 types of thermoplastics, including acrylic, polypropylene, polycarbonate and polyethylene. and metal fabricated fab·ri·cate tr.v. fab·ri·cat·ed, fab·ri·cat·ing, fab·ri·cates 1. To make; create. 2. To construct by combining or assembling diverse, typically standardized parts: enclosures, advanced copper termination The point where a line, channel or circuit ends. See SCSI termination and hybrid. and connectorization products, and fiber-optic See fiber optics. cable management systems. Channell's headquarters and U.S. manufacturing facilities are in Temecula. International operations Internal Operations (I.O., IO or I/O) is a fictional American Intelligence Agency in Wildstorm comics. It was originally called International Operations. I.O. first appeared in WildC.A.T.S. volume 1 #1 (August, 1992) and was created by Brandon Choi and Jim Lee. include facilities in Toronto Toronto (tərŏn`tō), city (1998 est pop. 2,400,000), provincial capital, S Ont., Canada, on Lake Ontario. Toronto is the largest city in Canada and since the 1970s has been one of the fastest-changing cities in North America, experiencing , London and Sydney Sydney, city, Australia Sydney, city (1991 pop. 3,097,956), capital of New South Wales, SE Australia, surrounding Port Jackson inlet on the Pacific Ocean. Sydney is Australia's largest city, chief port, and main cultural and industrial center. (Australia Australia (ôstrāl`yə), smallest continent, between the Indian and Pacific oceans. With the island state of Tasmania to the south, the continent makes up the Commonwealth of Australia, a federal parliamentary state (2005 est. pop. ). Forward-Looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Forward-looking statements contained within this news release are subject to many uncertainties in the company's operations and business environments. Examples of such uncertainties include customer demand, material costs, integration of acquired businesses and worldwide economic conditions among others. Such uncertainties are discussed further in the company's annual report/10K and S-1 filed with the Securities and Exchange Commission.
CHANNELL COMMERCIAL CORPORATION
CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)
(amounts in thousands, except per share data)
Three months ended
March 31,
2003 2002
Net sales $16,218 $19,841
Cost of goods sold 11,736 13,359
Gross profit 4,482 6,482
Operating expenses
Selling 2,302 2,169
General and administrative 1,852 2,001
Research and development 395 392
4,549 4,562
(Loss) income from operations (67) 1,920
Interest expense, net 121 770
(Loss) income before income taxes (188) 1,150
Income taxes 100 654
Net (loss) income $(288) $496
Net (loss) income per share
Basic $(0.03) $0.05
Diluted $(0.03) $0.05
Weighted average number of shares outstanding
Basic 9,125 9,025
Diluted 9,125 9,066
Net (loss) income $(288) $496
Other comprehensive income (loss), net of tax
Foreign currency translation adjustments 470 (66)
Comprehensive net income $182 $430
EBITDA $1,566 $3,613
CHANNELL COMMERCIAL CORPORATION
CONSOLIDATED BALANCE SHEETS
(amounts in thousands)
March 31, Dec. 31,
2003 2002
(Unaudited)
ASSETS
Current assets
Cash and cash equivalents $4,061 $3,162
Accounts receivable, net 9,695 10,156
Inventories 8,036 7,757
Deferred income taxes 1,037 1,037
Prepaid expenses and misc. receivables 1,315 1,090
Income taxes receivable 406 247
Total current assets 24,550 23,449
Property and equipment at cost, net 21,353 25,431
Deferred income taxes 4,467 4,367
Intangible assets, net 504 504
Other assets 424 412
$51,298 $54,163
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities
Accounts payable $4,487 $5,820
Short term debt (including current
maturities of long term debt) 952 952
Current maturities of capital lease
obligations 474 694
Accrued restructuring liability 1,941 2,155
Accrued expenses 3,638 3,625
Total current liabilities 11,492 13,246
Long term debt, less current maturities 3,597 4,877
Capital lease obligations, less current
maturities 27 25
Deferred gain on sale leaseback
transaction 559 574
Commitments and contingencies -- --
Stockholders' equity
Preferred stock, par value $0.01 per
share, authorized -- 1,000
shares, none issued and
outstanding -- --
Common stock, par value $0.01 per share,
authorized -- 19,000 shares; issued -- 9,369
shares in Dec. 31, 2002 and March 31, 2003;
outstanding -- 9,125 shares in
Dec. 31, 2002 and March 31, 2003 94 94
Additional paid-in capital 28,655 28,655
Treasury stock -- 244 shares in 2002 and
2003 (1,871) (1,871)
Retained earnings 10,268 10,556
Accumulated other comprehensive income
(loss) --
Foreign currency translation (1,523) (1,993)
Total stockholders' equity 35,623 35,441
Total liabilities and stockholders'
equity $51,298 $54,163
CHANNELL COMMERCIAL CORPORATION
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)
(amounts in thousands)
Three months ended
March 31,
2003 2002
Cash flows from operating activities:
Net (loss) income $(288) $496
Depreciation and amortization 1,633 1,693
Deferred income taxes (100) 667
Loss on disposal of fixed asset 95 --
Foreign currency transaction gain 38 --
Change in assets and liabilities:
(Increase) decrease in assets:
Accounts receivable 416 315
Inventories (202) 460
Prepaid expenses (10) 314
Other (13) 35
Income taxes receivable (215) --
Increase (decrease) in liabilities:
Accounts payable (983) 421
Accrued expenses 43 (131)
Restructuring liability (196) (220)
Income taxes payable -- 100
Net cash provided by operating activities 218 4,150
Cash flows from investing activities:
Acquisition of property and equipment (126) (296)
Proceeds from the sales of property and equipment 2,277 --
Net cash provided by (used in) investing activities 2,151 (296)
Cash flows from financing activities:
Repayment of debt (1,280) (7,283)
Repayment of obligations under capital lease (223) (604)
Net cash (used in) financing activities (1,503) (7,887)
Effect of exchange rates on cash 33 6
Increase (decrease) in cash and cash equivalents 899 (4,027)
Cash and cash equivalents, beginning of period 3,162 8,762
Cash and cash equivalents, end of period $4,061 $4,735
Cash paid during the period for:
Interest $88 $658
Income taxes $282 $36
CHANNELL COMMERCIAL CORPORATION
RECONCILIATION OF EBITDA (Unaudited)
(amounts in thousands)
Three months ended
March 31,
2003 2002
Net (loss) income $(288) $496
Interest expense, net 121 770
Income taxes 100 654
Depreciation & amortization 1,633 1,693
EBITDA $1,566 $3,613
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