To all,
Earning press release-----est.for 49c, actual reported= 52c.
Farward looking portion of the press release is very upbeat. Based on fiscal 1998,which started Aug.1st, est. earning of 2.14, this stock is cheap as compared to its growth rate of about 34%, and 1998 p/e of about 16, and is at a discount to its peers.
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EARNING PRESS RELEASE.
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CABLE DESIGN TECHNOLOGIES (CDT) REPORTS YEAR-END AND FOURTH QUARTER
RESULTS
PITTSBURGH, Sept. 9 /PRNewswire/ -- Cable Design Technologies
Corporation (NYSE: CDT) today reported results for the fiscal year
ended July 31, 1997. Net sales rose by $159.6 million, or 44.7% to a
record $517.0 million versus $357.4 million last year including the
addition of sales by CDT's recently acquired Dearborn/CDT operations as
well as a full year of sales attributable to NORDX/CDT acquired in
February 1996. Net income for fiscal 1997 jumped 36.4% to a record
$36.0 million ($1.75 per share) versus $26.4 million ($1.42 per share)
a year ago, excluding non-recurring and extraordinary charges reported
in fiscal 1996.
For the fourth quarter of fiscal 1997, net sales increased 39.2% to
$157.1 million compared to $112.8 million for the same period last
year. Net income for the final quarter of fiscal 1997 rose 32.1% to
$10.8 million ($0.52 per share) compared to $8.2 million ($0.40 per
share) in the previous year.
Results for fiscal 1997 reflect increased sales in all of CDT's
principal business groups with the addition of sales of CDT's
acquisitions. The gross margin for fiscal 1997 was 30.0% compared to
31.3% in fiscal 1996. The lower gross margin reflects in part, the
lower margins associated with CDT's communication cable and
Dearborn/CDT acquisitions together with the competitive pricing
experienced in the plenum Category 5 network cable market. The
operating margin for fiscal 1997 was 12.1% versus 13.5% a year ago,
excluding non-recurring and extraordinary charges recorded in fiscal
1996, reflecting, in part, the lower overall operating margin
attributable to the NORDX/CDT acquisition in fiscal 1996. Sales
outside of North America were $104.7 million versus $85.1 million last
year, an increase of 23%. CDT continues to build on opportunities for
increased sales in China, Australia, Latin America, and the former
Eastern Bloc.
Paul M. Olson, President and CEO, stated, "Over the past five years
CDT's compound annual growth rate is 34% for sales; 28% for operating
income; and 38% for earnings per share. Fiscal 1997 was perhaps the
most challenging year in our history and yet we still achieved a 45%
increase in sales and a 36% increase in net income over the previous
year. CDT's ability to find and integrate synergistic acquisitions is
one of the best in our industry. We are extremely pleased with our
recent purchase of the Dearborn/CDT operations, which includes
Thermax/CDT. This acquisition has exceeded our expectations for both
sales and net income and is currently undergoing a capacity expansion
at its Mexican manufacturing facility. Our fiscal 1996 purchase of
NORDX/CDT's NORCOM Division has been another success story. Sales at
this Canadian-based communication cables facility were very strong in
fiscal 1997 as demand continued for additional residential phone lines
to support Internet, facsimile and telecommuting needs. We anticipate
continued strong sales of communication cables throughout fiscal 1998."
"One of the most challenging markets during fiscal 1997 was plenum
Category 5 network cable products. Following a competitive pricing
environment during much of fiscal 1997, we witnessed a market upturn in
the fourth quarter resulting in higher sales. Today, prices for
Category 5 cable are increasing, providing an opportunity for greater
profitability, but of more importance to CDT has been the migration in
customer demand to higher speed, more sophisticated products. This
next generation of specialty cables -- Levels 6 and 7 -- represents an
excellent opportunity for CDT. We are one of the leading manufacturers
who have made the investment in technology and equipment that enables
us to develop these more profitable, enhanced cable products. And with
higher speed has come a greater demand for complete end-to-end systems
which places us in an excellent position to increase market share."
"We enter fiscal 1998 with a number of exciting initiatives. First, we
are continuing to look aggressively, both domestically and overseas,
for acquisitions to complement our high-growth niche markets. Second,
our investment in manufacturing and facilities continues to be a top
priority. Plans to expand capacity are currently underway at
Thermax/CDT, NORCOM/CDT, Raydex/CDT, and Cekan/CDT. Finally, we are
committed to staying on the cutting edge of new product development
across all our business lines. Our new NORDX/CDT manufacturing,
administration and R&D facility is scheduled for completion in February
1998 and we continue to work closely with the leading standards
organizations to keep us at the forefront of new product design and
certification. In short, we are very excited about the opportunities
in our business and CDT's strong position in its markets. We look
forward to an excellent year in fiscal 1998."
Cable Design Technologies is a leading designer and manufacturer of
technologically advanced electronic data transmission cables for
network, computer interconnect, automation, sound & safety
applications, transportation and complete voice and data wiring
solutions, communication cables, the DynaTrax(TM) automated
cross-connect switch, fiber optic solutions and other components
required to build high performance telecommunications infrastructures.
The Company's products are manufactured or distributed under the trade
names Montrose/CDT, Phalo/CDT, West Penn/CDT, Mohawk/CDT,
Manhattan/CDT, X-Mark/CDT, Dearborn/CDT, Thermax/CDT, NORDX/CDT in
Canada, NEK/CDT in Sweden, Anglo American/CDT and Raydex/CDT in the
U.K., and Cekan/CDT in Denmark.
Safe Harbor Statement under the Private Securities Litigation Act
of 1995: Certain of the statements in this press release are
forward-looking statements. These statements are subject to various
risks and uncertainties, many of which are outside the control of the
Corporation, including the level of market demand for the Corporation's
products, competitive pressures, the ability to achieve reductions in
operating costs and to continue to integrate acquisitions, price
fluctuations of raw materials and potential unavailability thereof,
foreign currency fluctuations, technological obsolescence,
environmental matters and other specific factors discussed in the
Corporation's Prospectus, date February 27, 1996, and other SEC
filings. The information contained herein represents management's best
judgment as of the date hereof based on information currently
available; however, the Corporation does not intend to update this
information to reflect developments or information obtained after date
hereof and disclaims any legal obligation to the contrary.
CABLE DESIGN TECHNOLOGIES CORPORATION & SUBSIDIARIES
Condensed Consolidated Statements of Income
(In thousands, except share and per share data)
Unaudited
Three Months Ended Year Ended
July 31, July 31,
1997 1996 1997 1996
NET SALES $157,103 $112,833 $516,996 $357,352
Cost of sales 110,791 78,635 362,060 245,533
GROSS PROFIT 46,312 34,198 154,936 111,819
Selling, general and
administrative expense 26,959 20,349 92,334 63,562
Non-recurring charges --- --- --- 16,730(a)
INCOME FROM OPERATIONS 19,353 13,849 62,602 31,527
Interest expense, net 1,785 1,053 5,338 5,362
Other (income) expense 378 276 (58) 271
Income before income taxes 17,190 12,520 57,322 25,894
Income tax provision 6,424 4,368 21,287 10,013
Income before extraordinary
item 10,766 8,152 36,035 15,881
Extraordinary item
(net of tax):
Loss on early extinguishment
of debt --- --- --- (596)(a)
NET INCOME $10,766 $8,152 $36,035 $15,285
INCOME PER COMMON SHARE:
Income before extraordinary
item $0.52 $0.40 $1.75 $0.85
Extraordinary item --- --- --- (0.03)
Net income $0.52 $0.40 $1.75 $0.82
Weighted average number
of common shares
and equivalents 20,671,380 20,413,480 20,591,855 18,626,792
(a) During the third fiscal quarter 1996 non-recurring and extraordinary
charges totaling $11.1 million (net of tax) were incurred in
connection with the acquisition of NORDX/CDT Inc., and the related
debt refinancing and the common stock offering completed in February
1996. Excluding non-recurring and extraordinary charges, net income
for the year ended July 31, 1996, would have been $26.4 million
($1.42 per share).
CABLE DESIGN TECHNOLOGIES CORPORATION & SUBSIDIARIES
Condensed Consolidated Balance Sheet
(In thousands, except share data)
As of As of
July 31, July 31,
1997 1996
ASSETS
Current Assets:
Cash and cash equivalents $9,017 $16,097
Accounts receivable, net 112,051 96,490
Inventories 120,974 90,618
Other current assets 5,503 5,251
Total current assets 247,545 208,456
Net property, plant and equipment 127,568 89,519
Goodwill, net 47,625 16,692
Other assets 6,761 5,438
Total assets $429,499 $320,105
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities:
Current liabilities $85,520 $72,682
Long-term debt, excluding
current maturities 126,661 73,068
Other non-current liabilities 12,193 8,898
Total liabilities $224,374 $154,648
Stockholders' Equity:
Common stock 188 181
Paid in capital 158,670 152,864
Deferred compensation (87) (208)
Retained earnings 48,219 12,184
Currency translation adjustment (1,865) 436
Total stockholders' equity 205,125 165,457
Total liabilities and
stockholders' equity $429,499 $320,105
SOURCE Cable Design Technologies Corporation
-0- 09/09/97 /CONTACT: Jane Strauss,
Investor Relations or Kenneth Hale, Vice President & CFO of Cable
Design Technologies, 412-937-2300/
(CDT)
CO: Cable Design Technologies Corporation ST: Pennsylvania IN: CPR
SU: ERN
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