OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF FISCAL 2023 FINANCIAL RESULTS
- OCC® achieved increases in net sales, gross profit, gross profit margins, and net income for Q3 2023 and the first nine months of FY 2023 compared to the same periods last year. Net sales for the first nine months increased 11.9% to $54.8 million. Gross profit increased 32.6% to $18.4 million. Net income was $3.3 million.
- None.
OCC® Achieves Increases in Net Sales, Gross Profit, Gross Profit Margins and Net Income in First Nine Months of Fiscal 2023 Compared to Prior Year Period
Third Quarter 2023 Financial Results
Consolidated net sales for the third quarter of fiscal year 2023 decreased
Gross profit increased
Gross profit margin, or gross profit as a percentage of net sales, increased to
SG&A expenses were
For the third quarter of fiscal year 2023, OCC recorded net income of
Fiscal Year-to-Date 2023 Financial Results
Consolidated net sales for the first nine months of fiscal year 2023 increased
The Company's sales order backlog/forward load remains at higher than typical levels, but decreased to approximately
OCC reported gross profit of
OCC's gross profit margins tend to be higher when it achieves higher net sales due to its operating leverage, as has been the case in the first nine months of fiscal year 2023, relative to the same period last year. In addition to the positive impact of this operating leverage, OCC's gross profit margins reflect increased production efficiency, as well as the impact of a more fully trained workforce. The Company's gross profit margins are also heavily dependent upon changes in product mix.
SG&A expenses increased
OCC recorded net income of
Gain on Insurance Proceeds
During the second and third quarters of fiscal year 2023, the Company received insurance proceeds in connection with water damage at the Company's
Insurance proceeds received in excess of expenses incurred through July 31, 2023, a net total of
Management's Comments
Neil Wilkin, President and Chief Executive Officer of OCC, said, "With year-over-year increases in key metrics during the first nine months of fiscal year 2023, including net sales, gross profit, gross profit margin, operating income and net income, our results reflect the OCC team's hard work and success executing our strategy in a dynamic market so far this year. We continue to see robust demand for our diversified suite of mission-critical cabling and connectivity products and solutions in certain of our specialty markets, even while certain of our other targeted markets, like enterprise and wireless carrier markets, are softening consistent with industry trends. Propelled by our commitment to capture demand, drive growth, work safely, and operate efficiently, we are focused on finishing the fiscal year strong, serving our valued customers and end-users, and driving enhanced value for shareholders."
Conference Call Information
As previously announced, OCC will host a conference call today, September 12, 2023, at 11:00 a.m. Eastern Time. Individuals wishing to participate in the conference call should call (800) 445-7795 in the
Company Information
Optical Cable Corporation ("OCC®") is a leading manufacturer of a broad range of fiber optic and copper data communication cabling and connectivity solutions primarily for the enterprise market and various harsh environment and specialty markets (collectively, the non-carrier markets) and also the wireless carrier market, offering integrated suites of high-quality products which operate as a system solution or seamlessly integrate with other components.
OCC® is internationally recognized for pioneering innovative fiber optic and copper communications technologies, including fiber optic cable designs for the most demanding environments and applications, copper connectivity designs to meet the highest data communication industry standards, as well as a broad product offering built on the evolution of these fundamental technologies.
OCC uses its expertise to deliver cabling and connectivity products and integrated solutions that are best suited to the performance requirements of each end-user's application. And OCC's solutions offerings cover a broad range of applications—from commercial, enterprise network, datacenter, residential and campus installations to customized products for specialty applications and harsh environments, including military, industrial, mining, petrochemical and broadcast applications, as well as for the wireless carrier market.
Founded in 1983, OCC is headquartered in
Optical Cable Corporation™, OCC®, Procyon®, Superior Modular Products™, SMP Data Communications™, Applied Optical Systems™, and associated logos are trademarks of Optical Cable Corporation.
Further information about OCC® is available at www.occfiber.com.
FORWARD-LOOKING INFORMATION
This news release by Optical Cable Corporation and its subsidiaries (collectively, the "Company" or "OCC") may contain certain forward-looking information within the meaning of the federal securities laws. The forward-looking information may include, among other information, (i) statements concerning our outlook for the future, (ii) statements of belief, anticipation or expectation, (iii) future plans, strategies or anticipated events, and (iv) similar information and statements concerning matters that are not historical facts. Such forward-looking information is subject to known and unknown variables, uncertainties, contingencies and risks that may cause actual events or results to differ materially from our expectations, and such known and unknown variables, uncertainties, contingencies and risks may also adversely affect Optical Cable Corporation and its subsidiaries, the Company's future results of operations and future financial condition, and/or the future equity value of the Company. A partial list of such variables, uncertainties, contingencies and risks that could cause or contribute to such differences from our expectations or that could otherwise adversely affect Optical Cable Corporation and its subsidiaries is set forth in Optical Cable Corporation's quarterly and annual reports filed with the Securities and Exchange Commission ("SEC") under the heading "Forward-Looking Information." OCC's quarterly and annual reports are available to the public on the SEC's website at http://www.sec.gov. In providing forward-looking information, the Company expressly disclaims any obligation to update this information, whether as a result of new information, future events or otherwise except as required by applicable laws and regulations.
(Financial Tables Follow)
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (thousands, except per share data) (unaudited) | |||||||
Three Months Ended July 31, | Nine Months Ended July 31, | ||||||
2023 | 2022 | 2023 | 2022 | ||||
Net sales | $ 17,383 | $ 54,845 | $ 49,024 | ||||
Cost of goods sold | 11,825 | 12,575 | 36,425 | 35,136 | |||
Gross profit | 5,116 | 4,808 | 18,420 | 13,888 | |||
SG&A expenses | 4,957 | 4,954 | 16,075 | 14,771 | |||
Royalty expense, net | 7 | 6 | 20 | 20 | |||
Amortization of intangible assets | 14 | 14 | 41 | 38 | |||
Income (loss) from operations | 138 | (166) | 2,284 | (941) | |||
Interest expense, net | (298) | (198) | (855) | (539) | |||
Gain on insurance proceeds received for | |||||||
damage to property and equipment | 256 | — | 1,952 | ||||
Other, net | 4 | 2 | 59 | (39) | |||
Other income (expense), net | (38) | (196) | 1,156 | (578) | |||
Income (loss) before income taxes | 100 | (362) | 3,440 | (1,519) | |||
Income tax expense (benefit) | (1) | 10 | 106 | 17 | |||
Net income (loss) | $ 101 | $ (372) | $ 3,334 | $ (1,536) | |||
Net income (loss) per share: | |||||||
Basic and diluted | $ 0.01 | $ (0.05) | $ 0.42 | $ (0.20) | |||
Weighted average shares outstanding: | |||||||
Basic and diluted | 7,867 | 7,517 | 7,876 | 7,525 |
OPTICAL CABLE CORPORATION CONDENSED CONSOLIDATED BALANCE SHEET DATA (thousands) (unaudited) | |||
July 31, 2023 | October 31, 2022 | ||
Cash | $ 193 | $ 216 | |
Restricted cash | 1,518 | — | |
Trade accounts receivable, net | 9,300 | 10,964 | |
Inventories | 24,946 | 19,439 | |
Other current assets | 547 | 577 | |
Total current assets | 36,504 | 31,196 | |
Non-current assets | 9,050 | 9,362 | |
Total assets | $ 45,554 | $ 40,558 | |
Current liabilities | $ 11,816 | $ 7,483 | |
Non-current liabilities | 7,897 | 10,915 | |
Total liabilities | 19,713 | 18,398 | |
Total shareholders' equity | 25,841 | 22,160 | |
Total liabilities and shareholders' equity | $ 45,554 | $ 40,558 |
AT THE COMPANY: | |
Neil Wilkin | Tracy Smith |
Chairman, President & CEO | Senior Vice President & CFO |
(540) 265-0690 | (540) 265-0690 |
AT JOELE FRANK, WILKINSON BRIMMER KATCHER: | |
Aaron Palash | Spencer |
(212) 355-4449 ext. 8603 | (212) 355-4449 ext. 8928 |
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SOURCE Optical Cable Corporation
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