First Quarter Highlights
First Quarter Earnings per diluted share of
First Quarter Net Income of
Gross Profit of 21.5% in the first quarter of 2024; 31.1% in the first quarter of 2023
Copper volume shipped in the first quarter of 2024 increased 19.7% over the first quarter of 2023
Cash on hand of
Capital expenditures of
Net sales for the first quarter ended
Gross profit percentage for the first quarter of 2024 was 21.5% compared to 31.1% in the first quarter of 2023. The average selling price of wire per copper pound sold decreased 16.2% in the first quarter of 2024 versus the first quarter of 2023, while the average cost of copper per pound purchased decreased 5.0%. The overall increase in total volumes shipped, offset by an anticipated decrease in the average selling price, resulted in the decreased gross profit margin in the first quarter of 2024 compared to the first quarter of 2023.
Net income for the first quarter of 2024 was
On a sequential quarter basis, net sales for the first quarter ended
Gross profit percentage for the first quarter of 2024 was 21.5% compared to 21.5% in the fourth quarter of 2023. The average selling price of wire per copper pound sold increased 3.2% in the first quarter of 2024 versus the fourth quarter of 2023, while the average cost of copper per pound purchased increased 3.6%. This resulted in a small increase of copper spreads during the quarter, partially offset by a decrease in the unit volume shipped, which resulted in a gross profit margin in the first quarter of 2024 consistent with the fourth quarter of 2023.
We believe the overall gross margin levels we experienced in the fourth quarter of 2023 and the first quarter of 2024 are representative of both current market conditions as well as the investments we have made and continue to make in improving our service model.
Net income for the first quarter of 2024 was
Commenting on the results,
Our balance sheet remains very strong. We have no long-term debt, and our revolving line of credit remains untapped. We had
We remain committed to reinvesting in our business with current and planned projects focused on increasing capacity, efficiency and vertical integration across our campus, which will continue to improve our service model. In 2023, we began construction of a state-of-the-art residential wire and cable manufacturing facility which will replace our original residential manufacturing plant, leveraging automation and advanced manufacturing technology to increase capacity, improve order fill and further modernize our campus. This investment will strengthen our position in the residential market segment while also supporting the production of feed wire used across our campus. We anticipate this facility will be substantially complete in early Q3 2024 and will help to further elevate our ability to ship 100% complete orders quickly.
Capital spending in 2024 through 2026 will further expand vertical integration in our manufacturing processes to reduce costs as well as modernize select wire manufacturing facilities to increase capacity and efficiency and improve our position as a sustainable and environmentally responsible company. Total capital expenditures were
We continue to believe that our operational agility, speed to market, and deep supplier relationships remain competitive advantages in serving our customers' evolving needs and capturing market share in the current economic environment. As we continue to address near-term challenges, we remain focused on the long-term opportunities for our business. We thank our employees and associates for their outstanding effort and our shareholders for their continued support.'
Following the previously announced entry into the Agreement and Plan of Merger with
The matters discussed in this news release may include 'forward-looking statements' within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including statements related to the expected timing of the closing of the pending merger and expectations following the closing of the merger. Forward-looking statements can be identified by words such as: 'anticipate', 'intend', 'plan', 'goal', 'seek', 'believe', 'project', 'estimate', 'expect', 'strategy', 'future', 'likely', 'may', 'should', 'will' and similar references to future periods. Forward-looking statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, such statements are subject to certain risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or projected. Therefore, you should not rely on any of these forward-looking statements. Examples of such uncertainties and risks include, but are not limited to, the possibility that we may be unable to obtain the required stockholder approval, antitrust or other regulatory approvals or that other conditions to consummation of the merger may not be satisfied, such that the merger may not be consummated or that the consummation may be delayed, the reaction of distributors, vendors, other partners and employees to the announcement or consummation of the merger, general macro-economic conditions, including risks associated with unforeseeable events such as pandemics, wars and other hostilities, emergencies or other disasters, risks associated with certain covenants in the Agreement and Plan of Merger that may limit or disrupt our current plans and operations, the amount of the costs, fees, expenses and charges related to the merger that may not be recovered if the merger is not consummated for any reason, the outcome of any legal proceedings that may be brought related to the merger, the occurrence of any event, change or other circumstances that could give rise to the termination of the Agreement and Plan of Merger, other risks and uncertainties described in Item 1A. Risk Factors, the pricing environment of copper, aluminum and other raw materials, our order fill rates, profitability and stockholder value, payment of future dividends, future purchases of stock, the impact of competitive pricing and other risks detailed from time to time in the Company's reports filed with the
Contact:
Executive Vice President & CFO
Tel: 972-562-9473
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