FORM 8-K |
Delaware (State of incorporation) | 001-12983 (Commission File Number) | 06-1398235 (IRS Employer Identification No.) |
4 Tesseneer Drive Highland Heights, Kentucky 41076-9753 (Address of principal executive offices, including zip code) | ||
(859) 572-8000 (Registrant’s telephone number, including area code) |
¨ | Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) |
¨ | Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) |
¨ | Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) |
¨ | Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) |
Exhibit No. | Description | |
99.1 | Press Release dated May 6, 2015 | |
99.2 | Certain slides contained in General Cable’s First Quarter 2015 Investor Presentation |
GENERAL CABLE CORPORATION | ||
May 6, 2015 | By: | /s/ BRIAN J. ROBINSON |
Brian J. Robinson | ||
Executive Vice President and Chief Financial Officer |
Exhibit No. | Description | |
99.1 | Press Release dated May 6, 2015 | |
99.2 | Certain slides contained in General Cable’s First Quarter 2015 Investor Presentation |
• | First quarter adjusted operating income of $48 million and adjusted EPS of $0.35 reflect the strong performance of the Company’s European submarine turnkey project business and the electric utility and telecommunication businesses in North America |
• | Reduced net debt by $108 million and maintained availability of $391 million under the Company’s North American and European based credit facility after retiring $125 million senior floating rate notes |
◦ | Strong management of working capital in the Company’s core operations in North America, Latin America and Europe generated cash of $80 million |
• | Completed the sale of the Company’s interests in joint ventures in Dominion Wire and Cable (Fiji) and Keystone Electric Wire and Cable (China) for cash consideration of $21 million, building on the momentum generated at the end of the year with the previously announced sale of the Company’s interest in the Philippines for $67 million, continuing our plan to simplify our global portfolio |
• | Announced incremental restructuring actions during the first quarter including SG&A cost reductions and further asset optimization plans in North America and Europe |
1st Quarter | 4th Quarter | |||||||||||||||||||
2015 | 2014 | 2014 | ||||||||||||||||||
In millions, except per share amounts | Operating Income | EPS | Operating Income | EPS | Operating Income | EPS | ||||||||||||||
As reported | $ | 7.9 | $ | (0.780 | ) | $ | (237.10 | ) | $ | (6.420 | ) | $ | (9.80 | ) | $ | (3.350 | ) | |||
Adjustments to Reconcile Operating Income/EPS | ||||||||||||||||||||
Non-cash convertible debt interest expense | - | 0.01 | - | 0.01 | - | 0.01 | ||||||||||||||
Mark to market (gain) loss on derivative instruments | - | 0.01 | - | 0.13 | - | 0.04 | ||||||||||||||
Restructuring and severance charges | 17.2 | 0.23 | 2.1 | 0.02 | 25.5 | 0.36 | ||||||||||||||
Restatement and legal costs | 7.4 | 0.10 | 2.9 | 0.04 | 3.9 | 0.05 | ||||||||||||||
Projects and insurance settlements | - | - | - | - | (17.20) | (0.210) | ||||||||||||||
European Commission | - | - | 2.5 | 0.03 | - | - | ||||||||||||||
Gain on the sale of divested assets | (0.90) | (0.010) | - | - | (17.60) | (0.220) | ||||||||||||||
Foreign Corrupt Practices Act (FCPA) accrual | - | - | - | - | 24.0 | 0.49 | ||||||||||||||
Goodwill/intangible asset impairment | - | - | 248.5 | 4.29 | - | - | ||||||||||||||
Venezuela (income)/loss(1) (2) | 5.1 | 0.59 | 4.2 | 1.80 | 37.6 | 2.98 | ||||||||||||||
Non-core operations (income)/loss – Asia Pacific and Africa | 11.7 | 0.20 | (2.00) | 0.05 | (6.00) | (0.020) | ||||||||||||||
Total Adjustments | 40.5 | 1.13 | 258.2 | 6.37 | 50.2 | 3.48 | ||||||||||||||
Adjusted | $ | 48.4 | $ | 0.35 | $ | 21.1 | $ | (0.050 | ) | $ | 40.4 | $ | 0.13 |
(1) | First quarter 2015 EPS reflects a loss of $22 million due to the adoption of the SIMADI currency exchange system and remeasurement of the local balance sheet at 193 bolivars per US dollar |
(2) | Fourth quarter 2014 operating income reflects the impact of a non-cash impairment charge of $43 million in Venezuela; also reflected in the EPS loss is the adoption of SICAD II currency exchange system and remeasurement of the local balance sheet at 50 bolivars per US dollar which resulted in a loss of $90 million |
Three Fiscal Months Ended | |||||
April 3, | March 28, | ||||
2015 | 2014 | ||||
Net sales | $ 1,262.3 | $ 1,430.1 | |||
Cost of sales | 1,141.6 | 1,298.0 | |||
Gross profit | 120.7 | 132.1 | |||
Selling, general and | |||||
administrative expenses | 109.6 | 120.7 | |||
Goodwill impairment charge | 3.2 | 155.1 | |||
Intangible asset impairment charges | — | 93.4 | |||
Operating income (loss) | 7.9 | (237.1) | |||
Other income (expense) | (24.9) | (97.7) | |||
Interest income (expense): | |||||
Interest expense | (25.2) | (27.4) | |||
Interest income | 0.9 | 1.2 | |||
(24.3) | (26.2) | ||||
Income (loss) before income taxes | (41.3) | (361.0) | |||
Income tax (provision) benefit | 0.2 | 21.4 | |||
Equity in net earnings (losses) of affiliated companies | 0.2 | 0.2 | |||
Net income (loss) including noncontrolling interest | (40.9) | (339.4) | |||
Less: net income (loss) attributable to noncontrolling interest | (2.8) | (24.0) | |||
Net income (loss) attributable to Company common shareholders | $ (38.1) | $ (315.4) | |||
Earnings (loss) per share | |||||
Earnings (loss) per common share - basic | $ (0.78) | $ (6.42) | |||
Weighted average common shares - basic | 48.8 | 49.1 | |||
Earnings (loss) per common share- | |||||
assuming dilution | $ (0.78) | $ (6.42) | |||
Weighted average common shares- | |||||
assuming dilution | 48.8 | 49.1 |
Three Fiscal Months Ended | |||||
April 3, | March 28, | ||||
2015 | 2014 | ||||
Revenues (as reported) | |||||
North America | $ 638.2 | $ 594.7 | |||
Europe | 261.8 | 323.1 | |||
Latin America | 205.3 | 288.7 | |||
Asia Pacific and Africa | 157.0 | 223.6 | |||
Total | $ 1,262.3 | $ 1,430.1 | |||
Revenues (metal adjusted) (1) | |||||
North America | $ 638.2 | $ 568.4 | |||
Europe | 261.8 | 306.8 | |||
Latin America | 205.3 | 265.0 | |||
Asia Pacific and Africa | 157.0 | 204.8 | |||
Total | $ 1,262.3 | $ 1,345.0 | |||
Metal Pounds Sold | |||||
North America | 146.1 | 134.7 | |||
Europe | 41.7 | 51.4 | |||
Latin America | 68.4 | 76.0 | |||
Asia Pacific and Africa | 38.4 | 46.7 | |||
Total | 294.6 | 308.8 | |||
Operating Income (loss) | |||||
North America | $ 29.6 | $ 32.7 | |||
Europe | 5.9 | (10.3) | |||
Latin America | (15.9 | ) | (165.0) | ||
Asia Pacific and Africa | (11.7) | (94.5) | |||
Total | $ 7.9 | $ (237.1) | |||
Adjusted Operating Income (loss) (2) | |||||
North America | $ 38.9 | $ 36.6 | |||
Europe | 15.0 | (6.7) | |||
Latin America | (5.5 | ) | (8.8) | ||
Total | $ 48.4 | $ 21.1 | |||
Return on Metal Adjusted Sales (3) | |||||
North America | 6.1% | 6.4% | |||
Europe | 5.7% | -2.2% | |||
Latin America | -2.6% | -3.3% | |||
Total | 4.4% | 1.9% |
Capital Expenditures | |||||
North America | $ 6.6 | $ 9.3 | |||
Europe | 3.0 | 2.9 | |||
Latin America | 5.6 | 10.9 | |||
Asia Pacific and Africa | 5.3 | 3.9 | |||
Total | $ 20.5 | $ 27.0 | |||
Depreciation & Amortization | |||||
North America | $ 10.3 | $ 11.2 | |||
Europe | 8.0 | 9.0 | |||
Latin America | 5.2 | 7.1 | |||
Asia Pacific and Africa | 4.1 | 5.0 | |||
Total | $ 27.6 | $ 32.3 | |||
Revenues by Major Product Lines | |||||
Electric Utility | $ 446.0 | $ 452.8 | |||
Electrical Infrastructure | 345.1 | 399.4 | |||
Construction | 246.1 | 350.1 | |||
Communications | 143.1 | 126.9 | |||
Rod Mill Products | 82.0 | 100.9 | |||
Total | $ 1,262.3 | $ 1,430.1 | |||
(1) Metal-adjusted revenues, a non-GAAP financial measure, is provided in order to eliminate an estimate of metal price volatility from the comparison of revenues from one period to another. | |||||
(2) Adjusted operating income is a non-GAAP financial measure. The Company is providing adjusted operating income on a segment basis because management believes it is useful in analyzing the operating performance of the business and is consistent with how management reviews the underlying business trends. A reconciliation of segment reported operating income to segment adjusted operating income is provided in the appendix of the First Quarter 2015 Investor Presentation, located on the Company's website. | |||||
(3) Return on Metal Adjusted Sales is calculated on Adjusted Operating Income (Loss) |
April 3, 2015 | December 31, 2014 | ||||||
(unaudited) | |||||||
Assets | |||||||
Current assets: | |||||||
Cash and cash equivalents | $ | 167.6 | $ | 205.8 | |||
Receivables, net of allowances of $29.2 million at April 3, 2015 and $32.0 million at December 31, 2014 | 969.4 | 1,007.0 | |||||
Inventories | 978.1 | 1,018.8 | |||||
Deferred income taxes | 31.7 | 32.4 | |||||
Prepaid expenses and other | 79.8 | 106.4 | |||||
Assets held for sale | 13.1 | 25.7 | |||||
Total current assets | 2,239.7 | 2,396.1 | |||||
Property, plant and equipment, net | 704.6 | 758.4 | |||||
Deferred income taxes | 34.8 | 24.8 | |||||
Goodwill | 22.4 | 26.1 | |||||
Intangible assets, net | 61.2 | 65.1 | |||||
Unconsolidated affiliated companies | 9.1 | 17.5 | |||||
Other non-current assets | 71.2 | 78.7 | |||||
Total assets | $ | 3,143.0 | $ | 3,366.7 | |||
Liabilities and Total Equity | |||||||
Current liabilities: | |||||||
Accounts payable | $ | 730.1 | $ | 672.1 | |||
Accrued liabilities | 366.6 | 407.2 | |||||
Current portion of long-term debt | 221.4 | 403.5 | |||||
Total current liabilities | 1,318.1 | 1,482.8 | |||||
Long-term debt | 991.9 | 933.9 | |||||
Deferred income taxes | 184.0 | 183.0 | |||||
Other liabilities | 220.9 | 240.0 | |||||
Total liabilities | 2,714.9 | 2,839.7 | |||||
Commitments and contingencies | |||||||
Redeemable noncontrolling interest | 12.8 | 13.8 | |||||
Total equity: | |||||||
Common stock, $0.01 par value, issued and outstanding shares: | |||||||
April 3, 2015 – 48,882,616 (net of 9,927,350 treasury shares) | |||||||
December 31, 2014 – 48,683,493 (net of 10,126,473 treasury shares) | 0.6 | 0.6 | |||||
Additional paid-in capital | 711.3 | 714.8 | |||||
Treasury stock | (180.4 | ) | (184.3 | ) | |||
Retained earnings | 137.4 | 184.4 | |||||
Accumulated other comprehensive loss | (301.4 | ) | (263.4 | ) | |||
Total Company shareholders’ equity | 367.5 | 452.1 | |||||
Noncontrolling interest | 47.8 | 61.1 | |||||
Total equity | 415.3 | 513.2 | |||||
Total liabilities, redeemable noncontrolling interest and equity | $ | 3,143.0 | $ | 3,366.7 |
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