CDT Cable Design Tech Cp

CDT Announces Third Fiscal Quarter 2004 Results SCHAUMBURG, Ill., June 9 /PRNewswire-FirstCall/ -- Cable Design Technologies (NYSE:CDT) reported today that earnings for the third fiscal quarter ending April 30, 2004, were $3.6 million, or $.08 per diluted share. This compares with a loss for the second fiscal quarter ending January 31, 2004, of $3.4 million, or $0.08 per diluted share, and earnings of $2 million, or $0.05 per diluted share, for the third fiscal quarter ending April 30, 2003. Revenues for the third fiscal quarter 2004 were $148.9 million, compared to revenues of $121.2 million in the previous quarter and $122.1 million for the same period last year. Revenues for the third fiscal quarter 2004 benefited by approximately $7.0 million from the favorable effects of currency translation. There was minimal impact from currency translation in the sequential quarter comparisons. Network Communication segment sales for the third fiscal quarter 2004 were $86.6 million, representing 58.2% of total company revenues, and compares to $69.7 million in the previous quarter and $70.5 million for last year's third fiscal quarter. Specialty Electronic segment sales for the third fiscal quarter 2004 were $62.3 million compared to $51.5 million last quarter and $51.6 million for the same period last year. Third fiscal quarter 2004 Network and Specialty segment revenues benefited from currency translation over the same period last year by $3.6 million and $3.4 million respectively. Operating Expenses: Selling, general and administrative expenses were $25.0 million for the current quarter compared $26.3 million for the quarter ending January 31, 2004 and $23.2 million for the same period last year. The increase in SG&A over the same period last year is due to the effect of foreign currency translation which increased SG&A by approximately $0.9 million and merger-related expenses of $0.8 million. Additional Information: Gross margin was 23.2% for the current quarter compared to 20.7% for the second fiscal quarter 2004 and 23.4% for the same period last year. The company reported positive cashflow of $7.5 million during the quarter, driven largely by cashflow from operations. Depreciation and Amortization for the quarter was $4.9 million, and the Company expects the nine month run-rate to continue throughout the remainder of the year. "We saw improving infrastructure spending in the Network segment and contributions from aviation applications and industrial machinery automation process control applications in the Specialty segment. However, we believe our customers replenished inventory in anticipation of our price increases, and this may affect sales volume in the fourth quarter," Fred Kuznik, CDT CEO stated. "These results re-emphasize our belief that the merger with Belden will provide long term benefit to our shareholders by combining well-known specialty brands for a more comprehensive array of products and a broader range of preferred cabling and connectivity solutions," Mr. Kuznik added. About CDT Cable Design Technologies ( http://www.cdtc.com/ ) is a leading designer and manufacturer of high bandwidth network connectivity products used in computer interconnect, switching and wireless applications and electronic data and signal transmission products that are used in automation and process control and specialty applications. Safe Harbor Provision Certain statements in this press release are forward-looking statements that are based on information currently available to management, management's beliefs and a number of assumptions concerning future events. These statements include future financial results and performance, capital expenditures, length of market downturn, timing of any turnaround, and benefits of the merger with Belden. These forward looking statements are subject to various uncertainties and other factors, which could cause the actual results to differ materially from those currently expected, including the level of market demand for the Company's products, competitive pressures, economic conditions in the U.S. and other countries where the Company operates, working capital needs, information technology spending, the ability to achieve reductions in costs, the ability to continue to integrate acquisitions, price fluctuations of raw materials and the potential unavailability thereof, foreign currency fluctuations, technological obsolescence, environmental matters, industry competition and other specific factors discussed in the Company's Annual Report on Form 10-K for the year ended July 31, 2003 and other Securities and Exchange Commission filings by the Company. The Company does not intend to update this information to reflect developments or information obtained after the date hereof and disclaims any legal obligation to the contrary. Cable Design Technologies Corporation and Subsidiaries CONDENSED CONSOLIDATED INCOME STATEMENTS -- UNAUDITED (in thousands, except share and per share amounts) Three months ended Nine months ended April 30, April 30, 2004 2003 2004 2003 Net sales $148,921 $122,127 $400,768 $355,192 Cost of sales 114,354 93,558 310,246 273,060 Gross profit 34,567 28,569 90,522 82,132 Selling, general and administrative expenses 24,963 23,237 75,000 68,443 Research and development expenses 1,192 1,026 3,447 2,879 (Gain)/loss on sale of assets 30 57 (72) 142 Business restructuring (income)/expense, net (40) (71) (62) 8,457 Income/(loss) from operations 8,422 4,320 12,209 2,211 Interest expense, net 1,405 1,219 3,910 4,310 Other expense/(income), net 86 (409) (69) (245) Income/(loss) from continuing operations before income taxes, minority interest and cumulative effect of change in accounting principle 6,931 3,510 8,368 (1,854) Income tax (benefit)/ provision 3,022 1,187 4,662 (996) Minority interest in earnings of subsidiaries, net 300 267 772 495 Net income/(loss) from continuing operations before cumulative effect of accounting change 3,609 2,056 2,934 (1,353) Discontinued operations: Loss from discontinued operations, net of tax benefit of $293 for the nine months ended April 30, 2003 - - - (636) Loss on sale of business, net of tax benefit of $22 and $12,698 for the three and nine months ended April 30, 2003, respectively - (47) - (32,055) Net loss from discontinued operations - (47) - (32,691) Cumulative effect of change in accounting principle, net of tax benefit - - - (35,723) Net income/(loss) $3,609 $2,009 $2,934 $(69,767) Basic earnings/(loss) per common share: Continuing operations before cumulative effect of accounting change $0.09 $0.05 $0.07 $(0.03) Discontinued operations - 0.00 - (0.73) Cumulative effect of accounting change - - - (0.80) $0.09 $0.05 $0.07 $(1.56) Diluted earnings/(loss) per common share: Continuing operations before cumulative effect of accounting change $0.08 $0.05 $0.07 $(0.03) Discontinued operations - 0.00 - (0.73) Cumulative effect of accounting change - - - (0.80) $0.08 $0.05 $0.07 $(1.56) Basic weighted average common shares outstanding 41,771,293 44,569,872 41,657,354 44,532,838 Diluted weighted average common shares outstanding 54,218,107 44,630,160 41,872,967 44,532,838 Cable Design Technologies Corporation and Subsidiaries CONDENSED CONSOLIDATED BALANCE SHEETS -- UNAUDITED (in thousands, except share amounts) April 30, July 31, 2004 2003 ASSETS Current assets: Cash and cash equivalents $48,928 $32,701 Trade accounts receivable, net of allowance for uncollectible accounts of $6,062 and $6,149, respectively 89,568 79,121 Inventories 118,985 111,589 Other current assets 28,212 30,225 Assets held for sale 5,392 6,648 Total current assets 291,085 260,284 Property, plant and equipment, net 200,407 204,738 Goodwill, net 11,230 10,980 Intangible assets, net 3,309 3,740 Other assets 10,195 12,156 Total assets $516,226 $491,898 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Current maturities of long-term debt $3,404 $1,960 Other current liabilities 76,318 69,244 Liabilities held for sale - 892 Total current liabilities 79,722 72,096 Long-term debt, excluding current maturities 111,173 112,730 Other non-current liabilities 23,881 24,168 Total liabilities 214,776 208,994 Minority interest in subsidiaries 8,185 7,027 Stockholders' equity: Preferred stock, par value $.01 per share -- authorized 1,000,000 shares, no shares issued - - Common stock, par value $.01 per share -- authorized 100,000,000 shares, 48,834,097 and 48,436,803 shares issued, respectively 488 484 Paid-in capital 206,129 202,544 Deferred compensation (997) (727) Retained earnings 141,412 138,478 Treasury stock, at cost, 6,772,334 and 6,764,312 shares, respectively (65,273) (65,188) Accumulated other comprehensive income/(loss) 11,506 286 Total stockholders' equity 293,265 275,877 Total liabilities and stockholders' equity $516,226 $491,898 Cable Design Technologies Corporation and Subsidiaries BUSINESS SEGMENT INFORMATION -- UNAUDITED Network Specialty Communication Electronic Segment Segment Total (in thousands) Three Months Ended April 30, Net sales 2004 $86,631 $62,290 $148,921 2003 70,534 51,593 122,127 Segment income/(loss) from operations 2004 $2,651 $5,761 $8,412 2003 210 4,096 4,306 Note: Segment operating income/(loss) from operations differs from consolidated income/(loss) from operations due to loss on sale of assets and business restructuring income. Contacts: Bill Cann Chief Financial Officer (847) 230-1900 Chuck Cohrs Treasurer (847) 230-1900 DATASOURCE: Cable Design Technologies CONTACT: Bill Cann, Chief Financial Officer, +1-847-230-1900, or Chuck Cohrs, Treasurer, +1-847-230-1900, both of Cable Design Technologies Web site: http://www.cdtc.com/

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