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International Wire Announces Results for the Second Quarter and the First Six Months of 2018

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International Wire Group Holdings, Inc. (the "Company") (OTCMKTS:ITWG)
today announced results for the second quarter and for the six months
ended June 30, 2018. Second quarter 2018 operating income was higher
than in the second quarter of 2017; however operating income was lower
for the six months ended June 30, 2018 compared to the six months ended
June 30, 2017.

"We were pleased with second quarter results as they reflect continued
strength in demand in our largest markets served. Electronics/data
communications and consumer/appliance market demand remained very strong
and demand in the industrial and energy segment strengthened further
from the first quarter of 2018. HPC medical products and aerospace
demand also remained firm. In Europe, demand for our engineered wire
products showed continued strength," said Edwin J. Flynn, Chief
Executive Officer of International Wire Group Holdings, Inc.

Second Quarter Results

Net sales for the quarter ended June 30, 2018 were $164.4 million, an
increase of $32.2 million, or 24.4%, compared to $132.2 million for the
same period in 2017. This increase was partly due to a higher selling
price of copper, partially offset by a higher proportion of tolled
copper. Tolled copper is customer-owned copper. The value of tolled
copper is not included in net sales and costs of sales. Excluding the
effects of higher copper prices and a higher proportion of tolled
copper, net sales increased $17.1 million, or 11.6%, versus the same
period in 2017. This increase resulted from $15.2 million of higher
sales, $1.1 million from the effects of favorable foreign currency
exchange rates and $0.8 million of higher customer pricing/mix. Total
pounds of product sold in the second quarter of 2018 increased by 13.9%
compared to the second quarter of 2017.

Operating income for the three months ended June 30, 2018 was $9.5
million compared to $8.2 million for the 2017 period, an increase of
$1.3 million, or 15.9%, primarily from higher sales volume, higher
LIFO/copper profits and more favorable customer pricing/mix, partially
offset by higher selling, general and administrative expenses.

Net income of $1.8 million for the three months ended June 30, 2018 was
an increase of $1.6 million from $0.2 million for the three months ended
June 30, 2017. The increase was due primarily to higher operating income
and lower interest expense.

Net income per basic and diluted share was $0.39 and $0.03 for the three
months ended June 30, 2018 and 2017, respectively.

Six Months Results

Net sales for the six months ended June 30, 2018 were $311.4 million, an
increase of $43.0 million, or 16.0%, compared to $268.4 million for the
same period in 2017. This increase was partly due to a higher selling
price of copper, partially offset by a higher proportion of tolled
copper. Excluding the effects of higher copper prices and a higher
proportion of tolled copper, net sales increased $24.2 million, or 8.4%,
versus the same period in 2017. This increase resulted from $21.3
million of higher sales and $3.0 million from the effects of favorable
foreign currency exchange rates, partially offset by $0.1 million of
unfavorable customer pricing/mix. Total pounds of product sold in the
first six months of 2018 increased by 10.0% compared to the first six
months of 2017.

Operating income for the six months ended June 30, 2018 was $14.6
million compared to $15.1 million for the same period in 2017, a
decrease of $0.5 million, or 3.3%, primarily from lower LIFO/copper
profits and higher selling, general and administrative expenses,
partially offset by higher sales volume.

Net loss of $0.6 million for the six months ended June 30, 2018 was an
increase of $0.3 million from a net loss of $0.3 million for the six
months ended June 30, 2017, primarily from lower operating income and a
lower income tax benefit, partially offset by lower interest expense.

Net loss per basic and diluted share was $0.12 and $0.06 for the six
months ended June 30, 2018 and 2017, respectively.

Non-GAAP Results and Net Debt

In an effort to better assist investors and noteholders in understanding
the Company's financial results, as part of this release, the Company is
also providing Adjusted EBITDA, which is a measure not defined under
accounting principles generally accepted in the United States (GAAP).
Adjusted EBITDA is net loss excluding interest expense, income tax
benefit, depreciation and amortization expense, amortization of deferred
financing costs, stock-based compensation (income)/expense, impairment
charges, gain/loss on sale of property, plant and equipment, (gain)/loss
on early extinguishment of debt and extraordinary non-recurring gains
and losses. Management uses Adjusted EBITDA as a measure in evaluating
the performance of our business. Other companies may define Adjusted
EBITDA differently. As a result, our measures of Adjusted EBITDA may not
be directly comparable to measures used by other companies. Below is a
reconciliation of this non-GAAP financial measure to net income/(loss),
the most directly comparable financial measure calculated and presented
in accordance with GAAP. Net debt as of June 30, 2018 and December 31,
2017 is also presented below. In $ millions:

Reconciliation of Net Income/Loss to Non-GAAP Adjusted EBITDA
(unaudited)

 
  2Q 2018   2Q 2017
Net income $ 1.8 $ 0.2
Interest expense 7.2 7.4
Income tax provision 0.1 0.1
Depreciation & amortization 4.1 4.0
Amortization of deferred financing costs 0.4 0.4
Other adjustments   0.6     0.3  
Adjusted EBITDA $ 14.2   $ 12.4  
 

First Six

First Six

Months

Months

2018

2017

Net loss $ (0.6 ) $ (0.3 )
Interest expense 14.3 14.8
Income tax expense/(benefit) 0.0 (0.4 )
Depreciation & amortization 8.1 8.2
Amortization of deferred financing costs 0.8 0.9
Other adjustments   0.7     0.4  
Adjusted EBITDA $ 23.3   $ 23.6  
 
Net Debt (unaudited)
June 30, December 31,
2018   2017
Total debt excluding original issue discount $ 276.2 $ 285.3
less cash   3.2       4.9  
Net debt $ 273.0     $ 280.4  
 

Additional financial information will be made available on or about
August 10, 2018 through the Company's investor website (http://internationalwiregroup.gcs-web.com
or http://www.internationalwiregroup.com)
in the section titled "Financial Information."

About International Wire Group Holdings, Inc.

International Wire Group Holdings, Inc., through its subsidiaries, is a
manufacturer and marketer of wire products, including bare,
silver-plated, nickel-plated and tin-plated copper wire, engineered wire
products and high performance conductors, for other wire suppliers,
distributors and original equipment manufacturers. Its products include
a broad spectrum of copper wire configurations and gauges with a variety
of electrical and conductive characteristics and are utilized by a wide
variety of customers primarily in the industrial and energy, electronics
and data communications, automotive/specialty vehicles, aerospace and
defense, medical products and consumer and appliance industries. The
Company has seventeen manufacturing facilities and one distribution
facility located throughout the United States, France, Italy and Poland.

Forward-Looking Information is Subject to Risk
and Uncertainty

Certain statements in this release may constitute "forward-looking"
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. Forward-looking statements include all statements
that are not historical facts and can be identified by the use of
forward-looking terminology such as the words "expect," "may," "will,"
"would," "could," "anticipate" or the negative of any thereof or other
variations thereof or comparable terminology, or by discussions of
strategy or intentions. Undue reliance should not be placed on any
forward-looking statements. These statements are based on management's
current beliefs and assumptions and on information currently available
to management as of the date they were made. These statements are not
guarantees of future performance and involve risks, uncertainties and
assumptions as to future events that may not prove to be accurate.
Actual outcomes and results may differ materially from what is expressed
or forecasted in these forward-looking statements. We undertake no
obligation to update or revise any forward-looking statements, whether
as a result of new information, future events or otherwise, except as
required by law.

Many factors could cause our results to differ materially from those
expressed in forward-looking statements. These factors include, but are
not limited to, fluctuations in our operating results and customer
orders, unexpected decreases in demand or increases in inventory levels,
changes in the price of copper, tin, nickel and silver, developments in
the competitive environments of the markets we serve, our reliance on
our significant customers, lack of long-term contracts, our substantial
dependence on business outside of the U.S. and changes in exchange rates
and other risks associated with our international operations,
limitations due to our indebtedness, potential loss of key employees or
the deterioration in our relationship with employees, litigation,
claims, liability from environmental laws and regulations and other
factors.

For additional information regarding the factors that may cause our
actual results to differ from those expected by our forward-looking
statements, see "Risk Factors" in the Company's 2017 financial report.
This report is accessible on the "Financial Information" page on the
Investor Relations portion of the Company's website, available at http://internationalwiregroup.gcs-web.com
or http://www.internationalwiregroup.com.

ITWG-G

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