General Cable Corporation Reports Fourth Quarter Results.Business Editors HIGHLAND HEIGHTS Highland Heights is the name of several places in the United States of America:
General Cable Corporation (NYSE NYSE See: New York Stock Exchange :BGC BGC General Cable Corporation (stock symbol) BGC Billy Graham Center BGC Baptist General Conference (formerly Swedish Baptist Denomination) BGC Boys & Girls Club BGC Bubblegum Crisis ) reported a net loss for the fourth quarter ended December December: see month. 31, 2002 of $(9.2) million or $(0.28) per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share. Included in the fourth quarter results were after-tax af·ter-tax also af·ter·tax adj. Relating to or being that which remains after payment, especially of income taxes: after-tax profits. charges of $6.5 million related primarily to costs associated with its previously announced discontinued operations Discontinued operations Divisions of a business that have been sold or written off and that no longer are maintained by the business. , additional severance The act of dividing, or the state of being divided. The term severance has unique meanings in different branches of the law. Courts use the term in both civil and criminal litigation in two ways: first, when dividing a lawsuit into two or more parts, and second, when and plant closure costs, non-cash charges Non-Cash Charge A charge off, made by a company against earnings, that does not require an initial outlay of cash. Notes: Non-cash charges are typically against the depreciation, amortization, and depletion accounts on a company's balance sheet. resulting from the liquidation The collection of assets belonging to a debtor to be applied to the discharge of his or her outstanding debts. A type of proceeding pursuant to federal Bankruptcy of LIFO (Last In-First Out) A queueing method in which the next item to be retrieved is the item most recently placed in the queue. Contrast with FIFO. LIFO - stack inventory and the write off of unamortized bank fees associated with the October October: see month. 2002 amendment to its credit facility. Excluding these charges, the Company would have reported a net loss for the fourth quarter of $(2.7) million or $(0.08) per diluted share. On a comparable basis, these results were down from net income of $3.4 million or $0.10 per diluted share in the fourth quarter of 2001, driven primarily by an 11% decline in metals-adjusted net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight in the Communications segment. Excluding the items noted above, earnings before interest, taxes, depreciation and amortization Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP metric that can be used to evaluate a company's profitability.
Management Comments "Our base earnings were in line with our expectations for the quarter. Results continued to be negatively impacted by the prolonged pro·long tr.v. pro·longed, pro·long·ing, pro·longs 1. To lengthen in duration; protract. 2. To lengthen in extent. decline in spending by our telecommunications Communicating information, including data, text, pictures, voice and video over long distance. See communications. customers and by lack-luster demand in the industrial and energy segments in North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. ," said Gregory B. Kenny Ken·ny , Elizabeth 1880?-1952. Australian nurse who developed a simple treatment for the paralysis brought on by poliomyelitis. , President and Chief Executive Officer of General Cable. "We have taken prompt and decisive action in response to these ongoing market conditions, including further cost reduction initiatives and aggressive management of our investment in working capital. For example, during the second half of 2002, we rebalanced our production schedules and removed approximately ap·prox·i·mate adj. 1. Almost exact or correct: the approximate time of the accident. 2. $56 million from our global inventories, while also driving service levels to our customers to all time highs. Our total debt, as a result, is at its lowest level in three years. At the same time, all of our 6,000 associates have received 'lean' training, which is a powerful accelerator accelerator: see particle accelerator. (1) A key combination such as Alt-G or Ctrl-Shift H that is used to activate a task. (2) An incubator that expects to develop the company considerably faster than normal. See incubator. for further improvements in cost and seamless integration An addition of a new application, routine or device that works smoothly with the existing system. It implies that the new feature or program can be installed and used without problems. Contrast with "transparent," which implies that there is no discernible change after installation. with our customers," added Kenny. Fourth Quarter Results Net sales for the Company's fourth quarter of 2002 increased 1% versus the third quarter 2002 and declined 4% versus metals-adjusted net sales in the fourth quarter 2001. The average price per pound of copper and aluminum increased $0.05 and $0.01, respectively, from the fourth quarter 2001 to the fourth quarter 2002. The 2001 net sales have been increased in this comparison to put them on a consistent metals-adjusted basis with 2002 net sales. The year over year decline was driven primarily by an 11% decline in Communications cable Communications cable A cable that transmits information signals between geographically separated points. The heart of a communications cable is the transmission medium, which may be optical fibers, coaxial conductors, or twisted wire pairs. sales and a 6% decline in Energy cable sales, partially offset by a 5% increase in Industrial and Specialty A contract under seal. A specialty is a written document that has been sealed and delivered and is given as security for the payment of a specifically indicated debt. cable sales. Net sales for the quarter were positively affected by about 3% as a result of improvements in foreign currency exchange rates for the Company's 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. . The 11% decline in metals-adjusted net sales for the Communications segment was driven by a 20% decline in sales of outside plant telecommunications cable, where the Company experienced a significant decline in sales to one Regional Bell Operating Company The Regional Bell Operating Companies (RBOC) are the result of the U.S. Department of Justice antitrust suit against American Telephone & Telegraph. History compared to a spike A burst of extra voltage in a power line that lasts only a few nanoseconds. See power surge, power swell, sag and surge suppression. (jargon) spike - To defeat a selection mechanism by introducing a (sometimes temporary) device that forces a specific result. in sales to this customer in the fourth quarter of last year. Despite the year over year decline, sales to this RBOC (Regional Bell Operating Company) The Bell telephone companies that were spun off of AT&T by court order in 1984 (the Divestiture). Also known as the "Baby Bells," the initial seven RBOCs were Nynex, Bell Atlantic, BellSouth, Southwestern Bell, US West, customer were up sequentially se·quen·tial adj. 1. Forming or characterized by a sequence, as of units or musical notes. 2. Sequent. se·quen from the third quarter 2002. Additionally, two of the Company's top three RBOC customers actually experienced year over year increases in sales in the fourth quarter of 2002. Metals-adjusted net sales of local area networking cable increased 4% in the fourth quarter 2002 versus the fourth quarter 2001. The 6% decline in metals-adjusted net sales for the Energy segment was driven by a 9% decline in North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. sales partially offset by an increase in sales in Europe Europe (y  r`əp), 6th largest continent, c.4,000,000 sq mi (10,360,000 sq km) including adjacent islands (1992 est. pop. 512,000,000). . The decline in North American sales was
due to a spike in 2001 from post 9/11 activity and continued weak demand
for long haul Long distance. Long haul implies traversing a state or a country. Contrast with short haul. transmission cables in an uncertain regulatory reg·u·late tr.v. reg·u·lat·ed, reg·u·lat·ing, reg·u·lates 1. To control or direct according to rule, principle, or law. 2. environment. The 5% increase in metals-adjusted net sales in the Industrial and Specialty segment was driven primarily by a 24% increase in European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. sales, offset by continued softness in the North American Industrial business. The growth in Europe was driven by the introduction of a zero halogen halogen (hăl`əjĕn) [Gr.,=salt-bearing], any of the chemically active elements found in Group 17 of the periodic table; the name applies especially to fluorine (symbol F), chlorine (Cl), bromine (Br), and iodine (I). 'smoke free' construction cable, a favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. foreign exchange rate versus fourth quarter 2001, and some pre-price increase buying by distributors. Selling, general and administrative expenses, excluding severance related charges, were $30.7 million in the fourth quarter of 2002, up slightly from $28.8 million in the fourth quarter 2001. The quarter over quarter increase primarily reflects increased employee fringe benefit fringe benefit Any nonwage payment or benefit granted to employees by employers. Examples include pension plans, profit-sharing programs, vacation pay, and company-paid life, health, and unemployment insurance. costs. SG&A expense as a percent of sales was 8.7%, in-line In-line Used in the context of general equities. (1) An order or market in a specific security within the inside market; 2) any announcement (earnings) that adheres closely to Wall Street analysts' expectations. with the results achieved on a metals-adjusted basis in the third quarter of 2002. Despite weak sales, the Company has maintained a high level of operating efficiency through a continued Company-wide focus to eliminate fixed costs fixed costs, n.pl the costs that do not change to meet fluctuations in enrollment or in use of services (e.g., salaries, rent, business license fees, and depreciation). and reduce controllable spending. During the quarter, the Company incurred pre-tax pre-tax adj → anterior al impuesto pre-tax adj → avant impôt(s) pre-tax adj → al lordo d'imposta charges of $6.9 million for continuing operations continuing operations Parts of a business that are expected to be maintained as an ongoing segment of an overall business operation. Income and losses from continuing operations are reported separately if any segments have been discontinued during the consisting of $4.0 million for severance and related costs, $1.1 million for the liquidation of LIFO inventory in North America (non-cash charge), $1.1 million for write-off Write-Off A reduction in the value of an asset or earnings by the amount of an expense or loss. Companies are able to write off certain expenses that are required to run the business, or have been incurred in the operation of the business and detract from retained revenues. of unamortized bank fees as a result of the October 2002 amendment to the Company's credit facility (non-cash charge) and $0.7 million for additional costs associated with the prior closure of manufacturing facilities. Additionally, the Company incurred an after tax charge of $2.0 million to discontinued operations related to a longer than anticipated holding period Anticipated holding period The period of time an individual expects to hold an asset. for three distribution centers with unexpired lease commitments as a result of further deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in the property market where these facilities are located. Excluding the effect of the $6.9 million pre-tax charges, operating income Operating Income The profit realized from a business' own operations. Notes: This would not include income from things such as investments in other firms. Also referred to as operating profit or recurring profit. for continuing operations in the fourth quarter of 2002 decreased to $7.3 million, down from $15.4 million for continuing operations in the fourth quarter of 2001. Operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. was down primarily as a result of lower sales in the Communications segment, lower pricing in all three segments and lower fixed cost absorption absorption [Lat.,=sucking from], taking of molecules of one substance directly into another substance. It is contrasted with adsorption, in which the molecules adhere only to the surface of the second substance. in North American factories as inventories were reduced by $29 million during the quarter. Net interest expense was $11.5 million for the fourth quarter of 2002, excluding the $1.1 million write off of bank fees, compared to $10.2 million for continuing operations in the fourth quarter of 2001. The increase in interest expense is primarily the result of the amortization of bank fees and a higher credit spread, both of which resulted from changes in the Company's credit facility implemented in April 2002 and October 2002, partially offset by lower average borrowings in the fourth quarter of 2002. Also in the fourth quarter, as a result of declining equity values in the investment portfolio of its defined benefit pension plans, the Company was required to record a minimum pension liability equal to the under funded status of its plans. At December 31, 2002, the Company recorded an after-tax charge of $29 million to accumulated other comprehensive income In 1997 the Financial Accounting Standards Board issued a Statement on Financial Accounting Standards entitled “Comprehensive Income”. This statement required all income statement items to be reported either as a regular item in the income statement and or a special item as in the equity section of its balance sheet. Absent a recovery in the market value of the plan's equity investments, the Company will experience an increase in both its future pension expense and its contributions to its defined benefit pension plans. The effective tax rate for the fourth quarter of 2002 was unchanged from the fourth quarter of the prior year at 35.5%. Full Year Results The net loss for the year ended December 31, 2002 was $(24.0) million or $(0.73) per diluted share. Excluding certain after-tax charges of $29.8 million for the year, net income would have been $5.8 million or $0.18 per diluted share. These results compare to adjusted earnings of $34.6 million or $1.05 per diluted share for the year ended December 31, 2001. Net sales for the year ended December 31, 2002 were $1,453.9 million, down 11% versus metals-adjusted sales for 2001. The average price per pound of copper and aluminum fell $0.02 and $0.05, respectively, from 2001 to 2002. The 2001 net sales have been lowered in this comparison to put them on a consistent metals-adjusted basis with the 2002 net sales. Primary drivers of the year over year decrease include a 26% reduction in Communications cable sales and a 7% reduction in Industrial and Specialty cable sales. Metals-adjusted net sales in the Energy segment increased 1% in 2002 versus 2001. Selling, general and administrative expense, excluding adjustments for corporate charges, decreased to $123.1 million, down 12% versus the comparable amount in 2001. This reduction reflects the impact of an aggressive program implemented since November November: see month. 2001 to eliminate fixed SG&A expense and further reduce controllable spending. Despite the 11% reduction in metals-adjusted net sales from 2001 to 2002, SG&A expense as a percentage of metals-adjusted sales remained flat in 2002 compared to 2001 at 8.5%. Operating income, excluding the adjustments, decreased 52% to $51.6 million in 2002 from $108.1 million in 2001. Operating income decreased primarily as a result of reduced sales volume in the Communications and Industrial and Specialty segments, reduced selling prices in all three segments, and the negative impact of a $57 million reduction in inventory on factory performance. These negative variances were partially offset by increased volume in the Energy segment as well as lower operating costs operating costs npl → gastos mpl operacionales from the Company's cost containment cost containment, n the features of a dental benefits program or of the administration of the program designed to reduce or eliminate certain charges to the plan. programs. CEO (1) (Chief Executive Officer) The highest individual in command of an organization. Typically the president of the company, the CEO reports to the Chairman of the Board. Comments "The Federal Communications Commission Federal Communications Commission (FCC), independent executive agency of the U.S. government established in 1934 to regulate interstate and foreign communications in the public interest. is expected to propose new rules in favor of upon the side of; favorable to; for the advantage of. See also: favor the Regional Bell Operating Companies, or RBOCs RBOCs Regional Bell Operating Companies (seven original Bell operating companies that were formed as a result of the AT&T divestiture) , that would change how they are compensated compensated /com·pen·sat·ed/ (kom´pen-sa?tid) counterbalanced; offset. for providing competitors COMPETITORS, French law. Persons who compete or aspire to the same office, rank or employment. As an English word in common use, it has a much wider application. Ferriere, Dict. de Dr. h.t. access to their local telephone exchange networks," said Kenny. "The prospect for regulatory relief along with the increased ability of RBOCs to provide long distance service bodes well for the long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. financial health of our RBOC customers. Also, based on Congress' indication that it will give prompt attention to a new Energy Bill (HR-3) there is the potential for our utility customers to step-up step-up A scheduled increase in the exercise or conversion price at which a warrant, an option, or a convertible security may be used to acquire shares of common stock. their capital spending capital spending Spending for long-term assets such as factories, equipment, machinery, and buildings that permits the production of more goods and services in future years. if the new legislation allows them to earn an adequate rate of return on their investment in upgrading the aging energy transmission and distribution grid grid: see electron tube. (1) Any interconnected set of nodes such as the electric power network or a communications network. (2) "The Grid" is a nickname for Internet2. See Internet2. infrastructure in this country." "While both of these recent developments are promising in the long-term, we are not counting on significant recovery in the communications or industrial markets or a step-change in the demand for energy cables in 2003. We are, however, cautiously cau·tious adj. 1. Showing or practicing caution; careful. 2. Tentative or restrained; guarded: felt a cautious optimism that the offer would be accepted. optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that we have reached the minimum maintenance level of spending for telecommunications cable and the low end of the economic cycle for industrial construction spending Construction Spending An economic indicator that measures the amount of spending towards new construction. Released monthly by the U.S. Department of Commerce's Census Bureau, it looks at residential and non-residential construction in the private sector, and state and federal at . Given this market environment, our primary areas of internal focus in 2003 will continue to be cost reduction, improving working capital efficiency, and debt reduction, all items under our direct control. With regard to our first quarter 2003 earnings outlook, our current forecast is for revenues to be flat or marginally mar·gin·al adj. 1. Of, relating to, located at, or constituting a margin, a border, or an edge: the marginal strip of beach; a marginal issue that had no bearing on the election results. 2. up both sequentially and compared to the prior year. Earnings per share should be at about break-even in the first quarter of 2003 compared to the adjusted $0.08 loss per share reported in the fourth quarter of 2002 and a $0.15 profit per share in the first quarter of last year," concluded Kenny. General Cable (NYSE:BGC), headquartered in Highland Heights, Kentucky Highland Heights is a city in Campbell County, Kentucky in the United States. The population was 6,554 at the 2000 census. Highland Heights is home to Northern Kentucky University. , is a leader in the development, design, manufacture, marketing and distribution of copper, aluminum and fiber optic optic /op·tic/ (op´tik) ocular (1). op·tic or op·ti·cal adj. 1. Of or relating to the eye or vision. 2. wire and cable products for the communications, energy, industrial and specialty markets. The Company offers competitive strengths in such areas as breadth Breadth The percentage of assets or stocks advancing relative to those unchanged or declining. Also the number of independent forecasts available per year. A stock picker forecasting returns to 100 stocks every quarter exhibits a breadth of 400, assuming each forecast is of product line, brand recognition, distribution and logistics logistics In military science, all the activities of armed-force units in support of combat units, including transport, supply, communications, and medical aid. The term, first used by Henri Jomini, Alfred Thayer Mahan, and others, was adopted by the U.S. , sales and service and operating efficiency. Communications wire and cable products transmit To send data over a communications line. See transfer. low-voltage adj. 1. (Electricity) subjected to or capable of operating under relative low voltage, usually considered as no greater than 250 volts. Contrasted with high-voltage nt>. Adj. 1. signals for voice, data, video and control applications. Energy cables include low-, medium- and high-voltage adj. 1. having, operating on, or powered by high voltage; as, a high-voltage generator; a high-voltage line s>. 2. same as high-powered. Adj. 1. power distribution and power transmission products. The Industrial and Specialty Segment is comprised of application-specific cables for uses such as electrical power generation (traditional fuels, alternative and renewable sources, and distributed generation Distributed generation generates electricity from many small energy sources. It has also been called also called on-site generation, dispersed generation, embedded generation, decentralized generation, decentralized energy or ), the oil, gas and petrochemical petrochemical, any one of a large group of chemicals derived from a component of petroleum or natural gas. The cracking processes for manufacturing gasoline produce vast quantities of gaseous hydrocarbons. industries, mining, industrial automation, marine, military and aerospace applications, power applications in the telecommunications industry, and other key industrial segments. Visit our website at www.GeneralCable.com. Certain statements in this press release, including statements regarding future financial results and performance, plans and objectives, capital expenditures and the Company's or management's beliefs, expectations or opinions, are 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. . Actual results may differ materially from those statements as a result of factors, risks and uncertainties over which the Company has no control. Such factors include domestic and local country price competition, particularly in certain segments of the power cable market and other competitive pressures; general economic conditions, particularly in construction; changes in customer purchasing patterns in our business segments; the Company's ability to increase manufacturing capacity and productivity; the Company's ability to successfully complete and integrate acquisitions and divestitures; the Company's ability to obtain credit facilities credit facilities npl → facilidades fpl de crédito credit facilities npl → facilités fpl de paiement credit facilities and changes to facilities as market conditions warrant; the Company's ability to reduce long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. ; the cost of raw materials, including copper; the impact of foreign currency fluctuations; the impact of technological changes; the Company's ability to achieve productivity improvements; and other factors which are discussed in the Company's Report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. filed with the Securities and Exchange Commission on March 29, 2002, as well as periodic reports filed with the Commission. TABLES TO FOLLOW Release No. 0408 01/29/03
General Cable Corporation and Subsidiaries
Consolidated Statements of Operations
(in millions, except per share data)
(unaudited)
------------------------------
Three Months Ended December 31
------------------------------
Fav/
2002 2001 (Unfav) %
------- ------- -------- -----
Net sales $351.4 $360.3 (8.9) (2%)
Cost of sales 315.2 316.1 0.9 0%
------- ------- -------
Gross profit 36.2 44.2 (8.0) (18%)
Selling, general and
administrative expenses 34.7 28.8 (5.9) (20%)
------- ------- -------
Operating income 1.5 15.4 (13.9) (90%)
Other income - - - N/A
Interest income (expense):
Interest expense (11.6) (10.6) (1.0) (9%)
Interest income 0.1 0.4 (0.3) (75%)
Other financial
costs (1.1) - (1.1) N/A
------- ------- -------
(12.6) (10.2) (2.4) (24%)
Earnings (loss) before income taxes (11.1) 5.2 (16.3) (313%)
Income tax (provision) benefit 3.9 (1.8) 5.7 317%
------- ------- -------
Income (loss) from continuing
operations (7.2) 3.4 (10.6) (312%)
Discontinued Operations
--------------------------------------
Loss from discontinued operations
(net of tax) - - - N/A
Loss on disposal of discontinued
operations (net of tax) (2.0) - (2.0) N/A
------- ------- -------
Net income (loss) $(9.2) $3.4 (12.6) N/A
======= ======= =======
EPS of Continuing Operations
--------------------------------------
Earnings (loss) per common share $(0.22) $0.10 (0.32) (320%)
======= ======= =======
Weighted average common shares 33.1 32.8 N/A
======= =======
Earnings (loss) per common share-
assuming dilution $(0.22) $0.10 (0.32) (320%)
======= ======= =======
Weighted average common shares-
assuming dilution 33.1 33.2 N/A
======= =======
EPS Including Discontinued Operations
-------------------------------------
Earnings (loss) per common share $(0.28) $0.10 (0.38) (380%)
======= ======= =======
Earnings (loss) per common share-
assuming dilution $(0.28) $0.10 (0.38) (380%)
======= ======= =======
----------------------------------
Twelve Months Ended December 31
----------------------------------
Fav/
2002 2001 (Unfav) %
--------- --------- -------- -----
Net sales $1,453.9 $1,651.4 (197.5) (12%)
Cost of sales 1,287.3 1,410.7 123.4 9%
--------- --------- -------
Gross profit 166.6 240.7 (74.1) (31%)
Selling, general and
administrative expenses 150.9 136.4 (14.5) (11%)
--------- --------- -------
Operating income 15.7 104.3 (88.6) (85%)
Other income - 8.1 (8.1) N/A
Interest income (expense):
Interest expense (43.5) (45.6) 2.1 5%
Interest income 0.9 1.7 (0.8) (47%)
Other financial
costs (1.1) (10.4) 9.3 N/A
--------- --------- -------
(43.7) (54.3) 10.6 20%
Earnings (loss) before income taxes (28.0) 58.1 (86.1) (148%)
Income tax (provision) benefit 9.9 (20.6) 30.5 148%
--------- --------- -------
Income (loss) from continuing
operations (18.1) 37.5 (55.6) (148%)
Discontinued Operations
------------------------------------
Loss from discontinued operations
(net of tax) - (6.8) 6.8 N/A
Loss on disposal of discontinued
operations (net of tax) (5.9) (32.7) 26.8 N/A
--------- --------- -------
Net income (loss) $(24.0) $(2.0) (22.0) N/A
========= ========= =======
EPS of Continuing Operations
------------------------------------
Earnings (loss) per common share $(0.55) $1.14 (1.69) (148%)
========= ========= =======
Weighted average common shares 33.0 32.8 N/A
========= =========
Earnings (loss) per common share-
assuming dilution $(0.55) $1.13 (1.68) (149%)
========= ========= =======
Weighted average common shares-
assuming dilution 33.0 33.1 N/A
========= =========
EPS Including Discontinued
Operations
---------------------------------
Earnings (loss) per common share $(0.73) $(0.06) (0.67) N/A
========= ========= =======
Earnings (loss) per common share-
assuming dilution $(0.73) $(0.06) (0.67) N/A
========= ========= =======
General Cable Corporation and Subsidiaries
Supplement to Press Release
(in millions, except per share data)
(unaudited)
2002
-----------------------------
Three Months Ended
December 31
-----------------------------
Adjusted
Reported Adjustments results
-------- ----------- --------
Net sales $351.4 $ - $351.4
Cost of sales 315.2 (1.8) 313.4
-------- ----------- -------
Gross profit 36.2 1.8 38.0
Selling, general and
administrative expenses 34.7 (4.0) 30.7
-------- ----------- -------
Operating income 1.5 5.8 7.3
Other income - -
Interest income (expense):
Interest expense (11.6) (11.6)
Interest income 0.1 0.1
Other financial costs (1.1) 1.1 -
-------- ----------- -------
(12.6) 1.1 (11.5)
Earnings (loss) before income taxes (11.1) 6.9 (4.2)
Income tax (provision) benefit 3.9 (2.4) 1.5
-------- ----------- -------
Income (loss) from continuing operations (7.2) 4.5 (2.7)
Discontinued Operations
----------------------------------------
Loss from discontinued operations
(net of tax) - -
Loss on disposal of discontinued
operations (net of tax) (2.0) 2.0 -
-------- ----------- -------
Net income (loss) $(9.2) $6.5 $(2.7)
======== =========== =======
EPS of Continuing Operations
----------------------------
Earnings (loss) per common share $(0.22) $(0.08)
======== =======
Weighted average common shares 33.1 33.1
======== =======
Earnings (loss) per common share-
assuming dilution $(0.22) $(0.08)
======== =======
Weighted average common shares-
assuming dilution 33.1 33.1
======== =======
EPS Including Discontinued Operations
-------------------------------------
Earnings (loss) per common share $(0.28) $(0.08)
======== =======
Earnings (loss) per common share-
assuming dilution $(0.28) $(0.08)
======== =======
2001
----------------------------------------
Three Months Ended December 31
----------------------------------------
Adjusted
Reported Adjustments results
------------- ----------- --------------
Net sales $360.3 $ - $360.3
Cost of sales 316.1 316.1
------------- ----------- --------------
Gross profit 44.2 - 44.2
Selling, general and
administrative expenses 28.8 28.8
------------- ----------- --------------
Operating income 15.4 - 15.4
Other income - - -
Interest income (expense):
Interest expense (10.6) (10.6)
Interest income 0.4 0.4
Other financial costs - - -
------------- ----------- --------------
(10.2) - (10.2)
Earnings (loss) before income
taxes 5.2 - 5.2
Income tax (provision)
benefit (1.8) - (1.8)
------------- ----------- --------------
Income (loss) from continuing
operations 3.4 - 3.4
Discontinued Operations
-----------------------------
Loss from discontinued
operations (net of tax) - -
Loss on disposal of
discontinued operations (net
of tax) - - -
------------- ----------- --------------
Net income (loss) $3.4 $- $3.4
============= =========== ==============
EPS of Continuing Operations
-----------------------------
Earnings (loss) per common
share $0.10 $0.10
============= ==============
Weighted average common
shares 32.8 32.8
============= ==============
Earnings (loss) per common
share-assuming dilution $0.10 $0.10
============= ==============
Weighted average common
shares-assuming dilution 33.2 33.2
============= ==============
EPS Including Discontinued
Operations
-----------------------------
Earnings (loss) per common
share $0.10 $0.10
============= ==============
Earnings (loss) per common
share-assuming dilution $0.10 $0.10
============= ==============
General Cable Corporation and Subsidiaries
Supplement to Press Release
(in millions, except per share data)
(unaudited)
2002
-------------------------------
Twelve Months Ended December 31
-------------------------------
Adjusted
Reported Adjustments results
--------- ----------- ---------
Net sales $1,453.9 $ - $1,453.9
Cost of sales 1,287.3 (8.1) 1,279.2
--------- ---------- ---------
Gross profit 166.6 8.1 174.7
Selling, general and
administrative expenses 150.9 (27.8) 123.1
--------- ---------- ---------
Operating income 15.7 35.9 51.6
Other income - - -
Interest income (expense):
Interest expense (43.5) - (43.5)
Interest income 0.9 - 0.9
Other financial costs (1.1) 1.1 -
--------- ---------- ---------
(43.7) 1.1 (42.6)
Earnings (loss) before income taxes (28.0) 37.0 9.0
Income tax (provision) benefit 9.9 (13.1) (3.2)
--------- ---------- ---------
Income (loss) from continuing
operations (18.1) 23.9 5.8
Discontinued Operations
--------------------------------------
Loss from discontinued operations
(net of tax) - -
Loss on disposal of discontinued
operations (net of tax) (5.9) 5.9 -
--------- ---------- ---------
Net income (loss) $(24.0) $29.8 $5.8
========= ========== =========
EPS of Continuing Operations
--------------------------------------
Earnings (loss) per common share $(0.55) $0.18
========= =========
Weighted average common shares 33.0 33.0
========= =========
Earnings (loss) per common share-
assuming dilution $(0.55) $0.18
========= =========
Weighted average common shares-
assuming dilution 33.0 33.0
========= =========
EPS Including Discontinued Operations
--------------------------------------
Earnings (loss) per common share $(0.73) $0.18
========= =========
Earnings (loss) per common share-
assuming dilution $(0.73) $0.18
========= =========
2001
----------------------------------
Twelve Months Ended December 31
----------------------------------
Adjusted
Reported Adjustments results
----------- ----------- ----------
Net sales $1,651.4 $ - $1,651.4
Cost of sales 1,410.7 (7.0) 1,403.7
----------- ----------- ----------
Gross profit 240.7 7.0 247.7
Selling, general and
administrative expenses 136.4 3.2 139.6
----------- ----------- ----------
Operating income 104.3 3.8 108.1
Other income 8.1 (8.1) -
Interest income (expense):
Interest expense (45.6) - (45.6)
Interest income 1.7 - 1.7
Other financial costs (10.4) 10.4 -
----------- ----------- ----------
(54.3) 10.4 (43.9)
Earnings (loss) before income taxes 58.1 6.1 64.2
Income tax (provision) benefit (20.6) (2.2) (22.8)
----------- ----------- ----------
Income (loss) from continuing
operations 37.5 3.9 41.4
Discontinued Operations
------------------------------------
Loss from discontinued operations
(net of tax) (6.8) - (6.8)
Loss on disposal of discontinued
operations (net of tax) (32.7) 32.7 -
----------- ----------- ----------
Net income (loss) $(2.0) $36.6 $34.6
=========== =========== ==========
EPS of Continuing Operations
------------------------------------
Earnings (loss) per common share $1.14 $1.26
=========== ==========
Weighted average common shares 32.8 32.8
=========== ==========
Earnings (loss) per common share-
assuming dilution $1.13 $1.25
=========== ==========
Weighted average common shares-
assuming dilution 33.1 33.1
=========== ==========
EPS Including Discontinued
Operations
------------------------------------
Earnings (loss) per common share $(0.06) $1.05
=========== ==========
Earnings (loss) per common share-
assuming dilution $(0.06) $1.05
=========== ==========
General Cable Corporation and Subsidiaries
Consolidated Statements of Operations (continued)
Segment Information
(in millions, except per share data)
(unaudited)
-------------------------------
Three Months Ended December 31
-------------------------------
Fav/
2002 2001 (Unfav)
----------- ---------- ---------
Revenues (as reported)
-------------------------------------
Communications Group $106.5 $117.9 (11.4)
Energy Group 119.9 125.3 (5.4)
Industrial & Specialty Group 125.0 117.1 7.9
----------- ---------- --------
Total 351.4 360.3 (8.9)
=========== ========== ========
Revenues (metal adjusted)
-------------------------------------
Communications Group $106.5 $119.7 (13.2)
Energy Group 119.9 127.2 (7.3)
Industrial & Specialty Group 125.0 119.2 5.8
----------- ---------- --------
Total 351.4 366.1 (14.7)
=========== ========== ========
Operating Profit (Loss)
-------------------------------------
Communications Group $(4.5) $3.5 (8.0)
Energy Group 9.4 7.6 1.8
Industrial & Specialty Group 2.4 4.3 (1.9)
----------- ---------- --------
Subtotal 7.3 15.4 (8.1)
Adjustments (5.8) - (5.8)
----------- ---------- --------
Total 1.5 15.4 (13.9)
=========== ========== ========
Return on Metal Adjusted Sales
-------------------------------------
Communications Group (4.2%) 2.9% (7.1%)
Energy Group 7.8% 6.0% 1.8%
Industrial & Specialty Group 1.9% 3.6% (1.7%)
----------- ---------- --------
Subtotal 2.1% 4.2% (2.1%)
Adjustments (1.7%) - N/A
----------- ---------- --------
Total 0.4% 4.2% (3.8%)
=========== ========== ========
Capital Expenditures
-------------------------------------
Communications Group $2.5 $6.4 (3.9)
Energy Group 2.9 3.2 (0.3)
Industrial & Specialty Group 3.2 3.9 (0.7)
----------- ---------- --------
Total 8.6 13.5 (4.9)
=========== ========== ========
Depreciation
-------------------------------------
Communications Group $3.7 $3.5 0.2
Energy Group 0.9 0.9 0.0
Industrial & Specialty Group 2.2 2.2 0.0
----------- ---------- --------
Total 6.8 6.6 0.2
=========== ========== ========
--------------------------------
Twelve Months Ended December 31
--------------------------------
Fav/
2002 2001 (Unfav)
----------- ---------- ---------
Revenues (as reported)
--------------------------------------
Communications Group $438.5 $592.0 (153.5)
Energy Group 516.0 521.8 (5.8)
Industrial & Specialty Group 499.4 537.6 (38.2)
----------- ---------- ---------
Total 1,453.9 1,651.4 (197.5)
=========== ========== =========
Revenues (metal adjusted)
--------------------------------------
Communications Group $438.5 $589.4 (150.9)
Energy Group 516.0 511.2 4.8
Industrial & Specialty Group 499.4 534.9 (35.5)
----------- ---------- ---------
Total 1,453.9 1,635.5 (181.6)
=========== ========== =========
Operating Profit (Loss)
--------------------------------------
Communications Group $3.7 $48.5 (44.8)
Energy Group 37.3 35.3 2.0
Industrial & Specialty Group 10.6 24.3 (13.7)
----------- ---------- ---------
Subtotal 51.6 108.1 (56.5)
Adjustments (35.9) (3.8) (32.1)
----------- ---------- ---------
Total 15.7 104.3 (88.6)
=========== ========== =========
Return on Metal Adjusted Sales
--------------------------------------
Communications Group 0.8% 8.2% (7.4%)
Energy Group 7.2% 6.9% 0.3%
Industrial & Specialty Group 2.1% 4.5% (2.4%)
----------- ---------- ---------
Subtotal 3.5% 6.6% (3.1%)
Adjustments (2.5%) (0.2%) N/A
----------- ---------- ---------
Total 1.1% 6.4% (5.3%)
=========== ========== =========
Capital Expenditures
--------------------------------------
Communications Group $8.1 $24.0 (15.9)
Energy Group 9.9 17.0 (7.1)
Industrial & Specialty Group 13.4 12.1 1.3
----------- ---------- ---------
Total 31.4 53.1 (21.7)
=========== ========== =========
Depreciation
--------------------------------------
Communications Group $15.8 $14.9 0.9
Energy Group 3.8 2.7 1.1
Industrial & Specialty Group 8.5 8.5 0.0
----------- ---------- ---------
Total 28.1 26.1 2.0
=========== ========== =========
GENERAL CABLE CORPORATION AND SUBSIDIARIES
Consolidated Balance Sheets
(in millions, except share data)
December 31, December 31,
ASSETS 2002 2001
--------------- ------------ -------------
Current Assets: (unaudited)
Cash $29.1 $16.6
Receivables, net 190.7 188.9
Inventories 258.3 315.4
Deferred income taxes 12.2 27.5
Prepaid expenses and other 42.6 23.9
------------ -------------
Total current assets 532.9 572.3
Property, plant and equipment, net 323.3 320.9
Deferred income taxes 68.3 65.0
Other non-current assets 48.8 47.1
------------ -------------
Total assets $973.3 $1,005.3
============ =============
LIABILITIES AND SHAREHOLDERS' EQUITY
-------------------------------------------
Current Liabilities:
Accounts payable $242.1 $249.4
Accrued liabilities 118.1 128.5
Current portion of long-term debt 21.9 24.5
------------ -------------
Total current liabilities 382.1 402.4
Long-term debt 411.1 421.0
Deferred income taxes 2.1 2.9
Other liabilities 117.1 74.1
------------ -------------
Total liabilities 912.4 900.4
------------ -------------
Shareholders' Equity:
Common stock, $0.01 par value:
Issued and outstanding shares:
December 31, 2002 -
33,141,619 (net of
4,745,425 treasury shares)
December 31, 2001 -
32,838,227 (net of
4,745,425 treasury shares) 0.4 0.4
Additional paid-in capital 100.0 96.4
Treasury stock (50.0) (50.0)
Retained earnings 59.9 88.9
Accumulated other comprehensive loss (44.6) (25.7)
Other shareholders' equity (4.8) (5.1)
------------ -------------
Total shareholders' equity 60.9 104.9
------------ -------------
Total liabilities and
shareholders' equity $973.3 $1,005.3
============ =============
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