WAUKEGAN, Ill., Aug. 6, 2009 (GLOBE NEWSWIRE) -- Coleman Cable, Inc. (Nasdaq:CCIX) (the "Company," "Coleman," "we," "us," or "our"), a leading manufacturer and innovator of electrical and electronic wire and cable products, announced second-quarter 2009 financial results.

 * Second quarter Adjusted EBITDA of $10.4 million
 * Net income of $0.3 million, or $0.02 per diluted share
 * Sales of $112.9 million for the quarter

Management Comments

"We are pleased to report $10.4 million in Adjusted EBITDA for the second quarter, which exceeded our initial projections," said Gary Yetman, president and CEO. "These results are beginning to show the positive effect of our rationalization efforts within our OEM segment, as well as the favorable impact of recent cost reductions and capacity adjustments. We are also encouraged by recent sales volume trends, which show modest improvement in certain areas and greater overall stability relative to earlier periods this year. These factors are potential indicators that an overall bottoming-out in volumes may have occurred. Furthermore, our performance this quarter reflects the hard work of all of our employees in improving our cost structure and operations during these difficult times. As a result, we believe we are well positioned to take advantage of the eventual rebound in the U.S. economy."

Mr. Yetman added, "During the last two months, we have also reduced our outstanding debt, repurchasing $15.0 million (par value) of our 9.875 percent Senior Notes, with $12.8 million (par value) repurchased during the second quarter. In addition to being repurchased at a discount, these repurchases will also lower our cash interest requirements by nearly $1.5 million annually. At the end of June 2009, we had over $88 million in combined credit availability under our revolver and cash on hand with no required long-term debt repayments until 2012."

Mr. Yetman concluded, "It is likely that economic conditions will remain challenging for the balance of the year, and our visibility for when our business may return to a period of growth remains limited. However, we are optimistic that Coleman's financial performance will improve in the second half of 2009 factoring in a continuation of the demand stabilization seen in the early part of the third quarter, a seasonal up-tick in our Distribution business, stability in copper prices, and higher revenue from our recently introduced industrial cable products designed for the utility and alternative energy markets. Accordingly, we expect Adjusted EBITDA to be between $12.0 million and $15.0 million and Adjusted EPS to be between $0.01 and $0.10 per diluted share for the quarter ended September 30, 2009."

Second-Quarter Financial Results Summary

For the second quarter of 2009, Coleman generated net income of $0.3 million, or $0.02 per diluted share, as compared to net income of $0.8 million, or $0.05 per diluted share, for the same period of 2008. The 2009 results include a pre-tax gain on the repurchase of Senior Notes of $2.9 million, or $0.08 per diluted share, which was recorded as the result of the repurchase of $12.8 million in par value of the Company's 9.875 percent Senior Notes at a discount to their par value. The Company's second-quarter 2009 results also included $1.7 million, or $(0.04) per diluted share, in restructuring charges, primarily incurred in connection with the closure of Coleman's East Longmeadow, Mass., manufacturing facility in May 2009, and for costs incurred for facilities closed during 2008. Moreover, 2009 second-quarter results include $0.7 million, or $0.02 per diluted share, in other income representing the favorable impact of foreign currency exchange rates on our Canadian subsidiary. For the second quarter of 2008, our earnings included restructuring costs of $2.8 million, or $(0.11) per diluted share, primarily attributable to the integration of the Company's 2007 acquisitions.

Excluding the above-noted items, the decline in second-quarter 2009 earnings versus the same quarter last year primarily reflects lower overall sales demand. Coleman reported net sales of $112.9 million for the second quarter of 2009 compared to net sales of $267.6 million in the same period last year, a decrease of 57.8 percent. Volume (total pounds shipped) decreased 42.5 percent in the second quarter of 2009 compared to the same prior-year period. These declines reflect a significant contraction in demand across the Company's business in the face of recessionary conditions, as well as the planned downsizing of Coleman's OEM segment. The negative impact of lower sales demand on net income was partially offset by a significant improvement in the Company's gross profit rate, lower selling, engineering, general and administrative expense, a decrease in intangible amortization expense, and reduced interest expense as a result of lower outstanding debt levels.

The Company continues to strengthen its balance sheet. Net debt (net of cash) was reduced by $137.0 million from $356.2 million at June 30, 2008, to $219.2 million at June 30, 2009.

Non-GAAP Results

In an effort to better assist investors in understanding Coleman's financial results, provided in this release is Adjusted Net Income, Adjusted Earnings Per Share (EPS), and Adjusted EBITDA (Earnings Before Interest, Taxes, Depreciation and Amortization), which are all measures not defined under accounting principles generally accepted in the United States (GAAP). Management believes these numbers are useful to investors in understanding the results of operations because they illustrate the impact that interest, taxes, depreciation, amortization, and other non-recurring and/or non-cash charges had on results. These terms are used in this release as they are calculated in the financial information set forth below.

Webcast

Coleman Cable has scheduled its conference call for Friday, August 7, 2009, at 10:00 a.m. Central time. Hosting the call will be Gary Yetman, president and CEO, and Richard Burger, executive vice president and CFO. A live broadcast of the Company's conference call, along with accompanying visuals, will be available on-line through the Company's Web site at http://investors.colemancable.com/events.cfm. The webcast will be archived for 90 days.

About Coleman Cable, Inc.

Coleman Cable, Inc.