OPTICAL CABLE CORPORATION REPORTS THIRD QUARTER OF 2022 FINANCIAL RESULTS
OCC® Achieves Year-over-Year Increases in
Consolidated net sales for the third quarter of fiscal year 2022 increased 11.2% to
During the third quarter of fiscal year 2022, the Company continued to see product demand, sales and production volume increase compared to the same period last year. Its sales order backlog/forward load exceeded
Production volumes continued to be tempered during the third quarter of fiscal year 2022 by supply chain and labor constraints, hindering further net sales increases. The Company experienced improvement in production labor recruitment during the third quarter of fiscal year 2022, from which the Company expects to benefit in the future. The training of new production employees impacts production volumes (and labor costs) until those employees are fully trained and operating at capacity.
Gross profit increased 17.6% to
Gross profit margin, or gross profit as a percentage of net sales, was 27.7% in the third quarter of fiscal year 2022 compared to 26.2% in the third quarter of fiscal year 2021.
Gross profit margins during the third quarter of fiscal year 2022 were impacted by increases in production labor and material costs, partially offset by necessary prospective price increases on new sales orders for many of the Company's products.
SG&A expenses increased to
For the third quarter of fiscal year 2022, OCC recorded a net loss of
Consolidated net sales for the first nine months of fiscal year 2022 increased 13.3% to
OCC reported gross profit of
The Company's gross profit margins tend to be higher when it achieves higher net sales levels due to its operating leverage, as certain fixed manufacturing costs are spread over higher sales. This operating leverage positively impacted the gross profit margin during the first nine months of fiscal year 2022, particularly during the first quarter of fiscal year 2022. This positive impact during the first quarter of fiscal year 2022 was partially offset during the second and third quarters by the impact of increasing costs of raw materials, created by rapidly occurring inflation, for sales orders accepted prior to raw material cost increases.
SG&A expenses increased 10.0% to
OCC recorded a net loss of
As previously announced, OCC will host a conference call today,
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
Further information about OCC® is available at www.occfiber.com.
This news release by
(Financial Tables Follow)
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Condensed CONSOLIDATED Statements OF OPERATIONS |
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(thousands, except per share data) |
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(unaudited) |
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Three Months Ended |
Nine Months Ended |
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2022 |
2021 |
2022 |
2021 |
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Net sales |
$ 17,383 |
$ 15,635 |
$ 49,024 |
$ 43,252 |
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Cost of goods sold |
12,575 |
11,545 |
35,136 |
32,033 |
|||
Gross profit |
4,808 |
4,090 |
13,888 |
11,219 |
|||
SG&A expenses |
4,954 |
4,531 |
14,771 |
13,428 |
|||
Royalty (income) expense, net |
6 |
5 |
20 |
(45) |
|||
Amortization of intangible assets |
14 |
11 |
38 |
34 |
|||
Loss from operations |
(166) |
(457) |
(941) |
(2,198) |
|||
Interest expense, net |
(198) |
(175) |
(539) |
(530) |
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Other, net |
2 |
6,009 |
(39) |
9,322 |
|||
Other income (expense), net |
(196) |
5,834 |
(578) |
8,792 |
|||
Income (loss) before income taxes |
(362) |
5,377 |
(1,519) |
6,594 |
|||
Income tax expense (benefit) |
10 |
4 |
17 |
(22) |
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Net income (loss) |
$ (372) |
$ 5,373 |
$ (1,536) |
$ 6,616 |
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Net income (loss) per share: |
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Basic and diluted |
$ (0.05) |
$ 0.71 |
$ (0.20) |
$ 0.88 |
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Weighted average shares outstanding: |
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Basic and diluted |
7,517 |
7,548 |
7,525 |
7,540 |
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CONDENSED CONSOLIDATED BALANCE SHEET DATA |
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(thousands) |
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(unaudited) |
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2022 |
2021 |
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Cash |
$ 192 |
$ 132 |
|
Trade accounts receivable, net |
10,154 |
8,376 |
|
Inventories |
18,687 |
16,304 |
|
Other current assets |
368 |
2,754 |
|
Total current assets |
29,401 |
27,566 |
|
Non-current assets |
9,607 |
10,351 |
|
Total assets |
$ 39,008 |
$ 37,917 |
|
Current liabilities |
$ 7,076 |
$ 6,168 |
|
Non-current liabilities |
11,048 |
9,543 |
|
Total liabilities |
18,124 |
15,711 |
|
Total shareholders' equity |
20,884 |
22,206 |
|
Total liabilities and shareholders' equity |
$ 39,008 |
$ 37,917 |
AT THE COMPANY: |
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Chairman, President & CEO |
Senior Vice President & CFO |
(540) 265-0690 |
(540) 265-0690 |
AT |
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(212) 355-4449 ext. 8627 |
(212) 355-4449 ext. 8603 |
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