Coleman Cable, Inc. Announces Third-Quarter 2012 Financial Results

Coleman Cable, Inc. Announces Third-Quarter 2012 Financial Results

WAUKEGAN, Ill., Nov. 5, 2012 (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 third-quarter 2012 financial results.


  *Adjusted EPS of $0.37 and Adjusted EBITDA of $22.2 million for the third
    quarter both within management's guidance;
  *Adjusted EBITDA of $22.2 million equals best third-quarter performance
    over past five-year period;
  *Year-to-date Adjusted EBITDA of $65.3 million through first nine months of
    2012 is the highest level since first becoming a public company in 2007;
  *Declared a quarterly cash dividend of $0.02 per common share payable on
    November 30, 2012, to stockholders of record as of the close of business
    on November 15, 2012.


  *For the fourth quarter of 2012, the Company estimates sales between $220.0
    million and $230.0 million and Adjusted EPS between $0.19 and $0.37.

Third-Quarter 2012 Results

Net sales for the third quarter of 2012 were $229.3 million compared to $234.9
million for the third quarter of 2011, with the decrease mainly reflecting
lower selling prices as a result of lower average copper prices, which
declined 13.3 percent on average from the third quarter of 2011 to the third
quarter or 2012. Sales volume (measured in total pounds shipped, on a
comparable basis) declined 0.1 percent for the third quarter of 2012 compared
to the same period last year. The sales decrease was partially offset with the
contribution of sales from a recently-acquired business. Third-quarter 2012
Adjusted EPS and Adjusted EBITDA were $0.37 per diluted share and $22.2
million, respectively, compared to $0.39 per diluted share and $21.9 million,
respectively, for the same quarter of 2011. 

President and CEO Gary Yetman stated, "Our third quarter results benefited
from better than expected seasonal demand, the strength of new industrial
product sales, and an incremental contribution from our engineered solutions
segment, all of which helped partially mitigate the impact of uneven demand
experienced across other areas of our business, as well as a slight decline in
our overall OEM volumes.This uneven demand and generally more challenging
pricing conditions were main factors limiting further improvement in our
Adjusted EBITDA as compared to the third quarter of 2011."

Mr. Yetman concluded, "Although our visibility is limited, recent demand
trends indicate that we may be in a continued period of somewhat weaker
industry demand levels within our OEM and certain distribution end
markets.Additionally, volumes within OEM and certain distribution channels
historically trend lower in the second half of the year, with fourth-quarter
demand in particular typically impacted by OEM industry-related temporary
seasonal and holiday plant shutdowns.Keeping the aforementioned factors in
mind, along with the potential for further copper price volatility and
continued general economic uncertainties, our outlook for the fourth quarter
reflects our belief that, despite the existence of fairly strong industrial
market headwinds, we will continue to perform well given the diversity of our
business and strength of our platform."

On a GAAP basis, the Company recorded earnings of $0.31 per diluted share for
the third quarter of 2012 compared to $0.37 per diluted share last
year.Results for the 2012 and 2011 periods included restructuring charges,
acquisition-related costs and share-based compensation expense (income).All
of these items are excluded from the Company's Adjusted EBITDA and Adjusted
EPS results.Please see the discussion of Non-GAAP results below and the
attached schedules for a full reconciliation of GAAP results to non-GAAP

Quarterly Cash Dividend

On October 30, 2012, Coleman's board of directors declared a quarterly cash
dividend of $0.02 per common share, payable on November 30, 2012, to
stockholders of record as of the close of business on November 15,
2012.Future declarations of quarterly dividends are subject to approval of
the board of directors and may be adjusted as business needs or market
conditions change.

Retirement of Chief Financial Officer

The Company also announced the planned retirement of Richard N. Burger, who
has served as our executive vice president and chief financial officer since
1996.Mr. Burger will retire effective March29, 2013, and Alan C.
Bergschneider, currently our vice president-finance, will become our new CFO
at that time.Mr. Bergschneider, who first joined Coleman's finance team in
2008, has over 20 years of financial management experience serving in a number
of management positions with Sears Holdings and within public accounting prior
to joining the Company.

Mr. Yetman said, "On behalf of our board of directors and our entire
management team, I want to thank Rich Burger for his many contributions to
Coleman over the past 16 years.Rich has been an integral part of Coleman's
senior management team and a key to our success in growing our business.He
will be dearly missed by all of us at the Company.While we will miss his
leadership, we wish him every success as he enters retirement and feel
confident he is leaving Coleman in strong financial shape.We also welcome
Alan Bergschneider as our new CFO.Alan has worked with Rich for five years
and we feel he is well prepared for his new role."


Coleman Cable has scheduled its conference call for today, Monday, November 5,
2012, 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 webcast will be archived for
90 days.

Non-GAAP Results

In addition to net income determined in accordance with GAAP, we use certain
non-GAAP measures in assessing our operating performance. These non-GAAP
measures used by management include: (1)EBITDA, which we define as net income
before net interest, income taxes, depreciation and amortization expense
("EBITDA"), (2)Adjusted EBITDA, which is our measure of EBITDA adjusted to
exclude the impact of certain specifically identified items ("Adjusted
EBITDA"), and (3)Adjusted earnings per share, which we calculate as diluted
earnings per share adjusted to exclude the estimated per share impact of the
same specifically identified items used to calculate Adjusted EBITDA
("Adjusted EPS"). For the periods presented in this report, the specifically
identified items include restructuring charges, gain on available for sale
securities, share-based compensation expense, and acquisition-related costs.

We believe both EBITDA and Adjusted EBITDA serve as appropriate measures to be
used in evaluating the performance of our business. We use these measures in
the preparation of our annual operating budgets and in determining levels of
operating and capital investments. We believe both EBITDA and Adjusted EBITDA
allow us to readily view operating trends, perform analytical comparisons and
identify strategies to improve operating performance. The usefulness of both
EBITDA and Adjusted EBITDA as performance measures is limited by the fact that
they both exclude the impact of interest expense, depreciation and
amortization expense, and taxes. Due to these limitations, we do not, and you
should not, use either EBITDA or Adjusted EBITDA as the only measures of our
performance. We also use, and recommend that you consider, net income in
accordance with GAAP as a measure of our performance. Finally, other
companies may define EBITDA and Adjusted EBITDA differently and, as a result,
our measure of EBITDA and Adjusted EBITDA may not be directly comparable to
EBITDA and Adjusted EBITDA measures of other companies.

Similarly, we believe our use of Adjusted EPS and Adjusted EBITDA provides an
appropriate measure to use in assessing our performance across periods given
that this measure provides an adjustment for certain significant items, the
magnitude of which may vary significantly from period to period.However, we
do not, and do not recommend that you solely use Adjusted EPS to assess our
financial and earnings performance.We also use, and recommend that you use,
diluted earnings per share in addition to Adjusted EPS in assessing our
earnings performance.Finally, other companies may define Adjusted EPS
differently and, as a result, our measure of Adjusted EPS may not be directly
comparable to Adjusted EPS measures of other companies.

About Coleman Cable, Inc.

Coleman Cable, Inc. is a leading manufacturer and innovator of electrical and
electronic wire and cable products for the security, sound,
telecommunications, electrical, commercial, industrial, and automotive
industries. With extensive design and production capabilities and a
long-standing dedication to customer service, Coleman Cable, Inc. is the
preferred choice of cable and wire users throughout North America.For more
information, visit

The Coleman Cable, Inc. logo is available at

Various statements included in this release, including those that express a
belief, expectation or intention, as well as those that are not statements of
historical fact constitute forward-looking statements.These statements
include those made under "Outlook" and may be identified by the use of
forward-looking terminology such as "believes," "plans," "anticipates,"
"expects," "estimates," "continues," "could," "may," "might," "potential,"
"predict," "should," or the negative thereof or other variations thereon or
comparable terminology.In particular, statements about Coleman Cable's
expectations, beliefs, plans, objectives, assumptions or future events,
financial results, earnings guidance or financial performance contained in
this release are forward-looking statements. Coleman Cable has based these
forward-looking statements on its current expectations, assumptions, estimates
and projections. While Coleman Cable believes these expectations,
assumptions, estimates and projections are reasonable, such forward-looking
statements are only predictions and involve known and unknown risks and
uncertainties, many of which are beyond our control.These and other important
factors, including those discussedin Coleman Cable's most recent Annual
Report on Form 10-K (available at, may cause our actual results,
performance or achievements to differ materially from any future results,
performance or achievements expressed or implied by these forward-looking
statements.Some of the key factors that could cause actual results to differ
from Coleman Cable's expectations include:

  *fluctuations in the supply or price of copper and other raw materials;
  *increased competition from other wire and cable manufacturers, including
    foreign manufacturers;
  *pricing pressures causing margins to decrease;
  *our dependence on indebtedness and our ability to satisfy our debt
  *failure to identify, finance or integrate acquisitions;
  *product liability claims and litigation resulting from the design or
    manufacture of our products;
  *advancements in wireless technology;
  *impairment charges related to our goodwill and long-lived assets;
  *restructuring charges;
  *changes in the cost of labor or raw materials, including copper, PVC and
  *disruption in the importation of raw materials and products from
    foreign-based suppliers;
  *our ability to maintain substantial levels of inventory;
  *increase in exposure to political and economic development, crises,
    instability, terrorism, civil strife, expropriation, and other risks of
    doing business in foreign markets;
  *changes in tax legislation relating to our Honduras subsidiary; and
  *other risks and uncertainties, including those described under "Item 1A.
    Risk Factors." in Coleman

Cable's most recent Annual Report on Form 10-K.

In addition, any forward-looking statements represent Coleman's views only as
of today and should not be relied upon as representing its views as of any
subsequent date.While Coleman may elect to update forward-looking statements
at some point in the future, it specifically disclaims any obligation to do
so, even if its estimates change and, therefore, you should not rely on these
forward-looking statements as representing Coleman's views as of any date
subsequent to today.


(Thousands, except per share data)

                                   ThreeMonthsEnded  NineMonthsEnded
                                    September30,        September 30,
                                   2012      2011       2012       2011
NET SALES                          $229,301 $ 234,851 $ 681,023 $ 660,502
COST OF GOODS SOLD                 194,948   200,233    580,018    563,617
GROSS PROFIT                       34,353   34,618    101,005    96,885
SELLING, GENERAL AND ADMINISTRATIVE 15,880   14,986    47,354    46,480
INTANGIBLE ASSET AMORTIZATION      2,189    1,950     5,755     5,282
RESTRUCTURING CHARGES              959      1,061     1,314     1,256
OPERATING INCOME                    15,325   16,621    46,582    43,867
INTEREST EXPENSE                   6,919    7,086     20,963    21,183
GAIN ON AVAILABLE FOR SALE          —       —        —         (753)
OTHER (INCOME) LOSS                 227      418       230       332
INCOME BEFORE INCOME TAXES          8,179    9,117     25,389    23,105
INCOME TAX EXPENSE                 2,725    2,637     8,579     7,023
NET INCOME                          $5,454   $6,480    $ 16,810   $ 16,082
EARNINGS PER COMMON SHARE DATA                                   
NET INCOME PER SHARE:                                            
Basic                               $0.32    $0.37     $0.98     $0.92
Diluted                            0.31     0.37      0.96      0.91
WEIGHTED AVERAGE COMMON SHARES                                   
Basic                               17,071   17,212    17,077    17,141
Diluted                            17,301   17,465    17,311    17,362
CASH DIVIDENDS DECLARED PER COMMON  $0.02    $—        $0.04     $—


(Thousands, except per share data)

                                           September30,2012 December31,2011
ASSETS                                      (unaudited)       
CURRENT ASSETS:                                              
Cash and cash equivalents                  $5,328           $9,746
Accounts receivable, net of allowances of   137,753         120,567
$3,431 and $2,811, respectively
Inventories                                 126,360          108,689
Deferred income taxes                      3,392            3,355
Assets held for sale                       546              546
Prepaid expenses and other current assets  7,105          10,288
Total current assets                       280,484          253,191
PROPERTY, PLANT AND EQUIPMENT, NET         79,359           58,957
GOODWILL                                   66,690           56,724
INTANGIBLE ASSETS, NET                     39,607           28,340
DEFERRED INCOME TAXES                      93               376
OTHER ASSETS                                7,069           8,148
TOTAL ASSETS                               $473,302         $405,736
CURRENT LIABILITIES:                                         
Current portion of long-term debt          $174             $166
Accounts payable                           37,031           29,081
Accrued liabilities                        32,663           35,762
Total current liabilities                  69,868           65,009
LONG-TERM DEBT                             347,536          302,935
OTHER LONG-TERM LIABILITIES                2,510            3,194
DEFERRED INCOME TAXES                      8,073            6,503
COMMITMENTS AND CONTINGENCIES                                
SHAREHOLDERS' EQUITY:                                        
Common stock                                17              17
Treasury stock, at cost: 390 and 320        (3,446)          (2,789 )
shares, respectively
Additional paid-in capital                 94,328           92,871
Accumulated deficit                         (45,713 )        (61,819 )
Accumulated other comprehensive income      129              (185 )
Total shareholders' equity                 45,315           28,095
TOTAL LIABILITIES AND EQUITY               $473,302         $405,736


Non-GAAP Results
(Thousands, except per share data)

Reconciliation of Non-GAAP Financial Measures

Diluted earnings per share,   Three Months Ended       Nine Months Ended
as determined in accordance   September 30,            September 30,
with GAAP, to Adjusted EPS
                             2012             2011    2012         2011
Earnings per share           $0.31     $0.37          $0.96   $0.91
Restructuring charges         0.04       0.04        0.05        0.04
Gain on available for sale    —          —           —            (0.04)
Share-based compensation      0.02        (0.03)      0.04        0.10
expense (income)
Acquisition-related costs     —           0.01       0.02        0.12
Adjusted diluted earnings per $0.37     $0.39      $1.07      $1.13
Net income as determined in   Three Months Ended       Nine Months Ended
accordance with GAAP, to      September 30,            September 30,
EBITDA and Adjusted EBITDA
                             2012        2011         2012         2011
Net income                    $5,454     $6,480      $16,810      $16,082
Interest expense             6,919      7,086       20,963      21,183
Income tax expense           2,725      2,637       8,579       7,023
Depreciation and amortization 5,577      5,137       15,987      14,057
expense (a)
EBITDA                       $ 20,675    $ 21,340     $62,339      $58,345
Restructuring charges        959        1,061       1,314       1,256
Gain on available for sale    —          —           —           (753)
Share-based compensation      457        (739)       1,169       2,781
expense (income)
Acquisition-related costs     77         223         443         2,801
ADJUSTED EBITDA               $22,168    $21,885     $65,265     $64,430

a)Depreciation and amortization expense shown in the above schedule excludes
amortization of debt issuance costs, which are included as a component of
interest expense.

For additional information regarding our non-GAAP financial measures, see
"Non-GAAP Results."

Reconciliation of Fourth Quarter 2012 Earnings Guidance to GAAP

For the fourth quarter of 2012, the Company is currently estimating diluted
Adjusted EPS to be in the range of $0.19 to $0.37 per share. On a GAAP basis,
the Company is currently estimating diluted EPS to be in the range of $0.15 to
$0.35 per share.

* Rounding differences may occur for various calculated amounts.

CONTACT: Investor Contacts:
         Philip Kranz, Dresner Corporate Services

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