Click here to close now.




















Welcome!

News Feed Item

Hammond Power Solutions Inc. Announces Quarter 4, 2013 Financial Results Building for the Future

GUELPH, ONTARIO -- (Marketwired) -- 03/13/14 --

(Dollar amounts are in thousands unless otherwise specified)

NOTE: ALL NUMBERS HAVE BEEN STATED UNDER IFRS

Hammond Power Solutions Inc. ("HPS") (TSX:HPS.A) a leading manufacturer of dry-type and cast resin transformers and related magnetics, today announced its financial results for the fourth quarter of 2013.

Bill Hammond, Chairman & Chief Executive Officer of Hammond Power Solutions Inc. commented, "Hammond Power Solutions has come through one of the most challenging years since the recession started in 2008. A number of unexpected circumstances as well as higher levels of economic volatility buffeted our sales and profit performance during 2013. We are confident that our financial strength, core competencies and long term strategies will accelerate our growth as the global recovery begins."

FOURTH QUARTER RESULTS

Sales for the quarter ended December 31, 2013 were $62,804 a slight increase of $271 or 0.4% from the comparative quarter last year, which is reflective of the impact of the continued demand for our product, market share and favorable product mix. U.S. sales were stable at $35,201 in Quarter 4, 2013, an increase of $637 or 1.8% from Quarter 4, 2012. In 2013, sales to the U.S. market of $138,481 decreased by $6,604, or 4.6%, compared to 2012 sales of $145,085. Canadian sales were $20,081 for the quarter, a decrease over Quarter 4, 2012, of $4,052 or 16.8%. Year to date Canadian sale were $79,766 in 2013 compared to $95,467 in 2012 a drop of $15,701 or 16.4%. International sales in Quarter 4, 2013 were $7,522 versus $3,824 in Quarter 4, 2012, an increase of $3,698 or 96.7%. International sales were $24,694 in 2013 compared to $16,824 in 2012, an increase of $7,870 or 46.8%.

The Company realized an increase in bookings of 1.12% over Quarter 3, 2013 and an increase of 2.7% as compared against Quarter 4, 2012. Due to the softer North American, European and Asian economies, year-to-date bookings were lower by 1.1%.

Quarter 4, 2013 gross margin dollars decreased by $529 compared to Quarter 4, 2012. Gross margin rate decreased to 27.1% in Quarter 4, 2013 versus 28.1% in Quarter 4, 2012 as a result of market pricing pressures and lower manufacturing throughput and were 25.0% year to date 2013 versus 25.2% year to date 2012.

Bill Hammond further commented, "We are pleased with our solid gross margin rates for the year. Despite a slower than expected economy, we continued to increase our sales and market share through our U.S. distributor channel. Our expanded channel and geographical presence will benefit HPS even more as the U.S. economy begins to improve."

Total selling and distribution expenses were $7,461 in Quarter 4, 2013 versus $6,773 in Quarter 4, 2012, an increase of $688 or 10.2%. These expenses represent 11.9% of sales in Quarter 4, 2013 and 10.8% of sales in Quarter 4, 2012. Year-to-date selling and distribution expenses were $27,156 or 11.2% of sales in 2013, compared to $25,894 or 10.1% of sales in 2012.

The general and administrative expenses for Quarter 4, 2013 totaled $5,394, a slight increase of $171 or 3.2% when compared to Quarter 4, 2012 expenses of $5,223. This represents 8.6% of sales in Quarter 4, 2013 as compared to 8.4% of sales in Quarter 4, 2012. Year-to-date general and administrative expenses were $22,409 or 9.2% of sales in 2013, compared to $20,714 or 8.0% of sales in 2012.

Earnings from operations were $4,157 in Quarter 4, 2013 versus $5,545 in Quarter 4, 2013, a decrease of $1,388 or 25.0% and were $11,036 year-to-date in 2013, as compared to $18,180 in 2012, a decrease of $7,144 or 39.3%.

Interest expense for Quarter 4, 2013 finished at $155 and was comparable to $146 in Quarter 4, 2012. Year-to-date interest cost was $860, an increase of $165 when compared to the 2012 year-to-date expense of $695. The increase in interest expense year-to-date was a result of higher operating debt levels related to the assumption of debt associated with the Italian acquisition in the year.

There was a foreign exchange gain of $217 in the Quarter 4, 2013 versus $393 in Quarter 4, 2012 and a foreign exchange loss in 2013 of $80 related primarily to the transactional exchange gain or loss pertaining to the Company's U.S. dollar trade accounts payable in Canada, compared to a foreign exchange gain of $775 in 2012.

Net earnings for Quarter 4, 2013 decreased by $1,835, finishing at $2,895 compared to net earnings of $4,730 in Quarter 4, 2012. Year-to-date net earnings were $6,104 in 2013 and $12,611 in 2012, a decrease of $6,507 or 51.6. This decrease is mostly due to lower sales in the year.

Net cash used in operating activities for Quarter 4, 2013 was $2,819 versus cash generated of $10,461 in Quarter 4, 2012, a decrease of $13,280 as a result of lower net earnings. Year-to-date cash generated by operating activities was $620 in 2013 and $21,371 in 2012, a change of $20,751.

Overall cash balances net of debt bank lines of credit resulted in net debt of $15,959 as at December 31 2013, a decrease of $17,111 as compared to a net cash balance of $1,152 as at December 31, 2012. This is primarily reflecting acquisition activity, capital investment and debt repayment in the year.

The Company continued with its regular quarterly dividend program, paying five cents ($0.05) per Class A Subordinate Voting Share of HPS and five cents ($0.05) per Class B Common Share of HPS on December 30, 2013. Year to date, the Company has paid a quarterly cash dividend of twenty cents ($0.20) per Class A Subordinate Voting Share and twenty cents ($0.20) per Class B Common Share.

Mr. Hammond concluded, "We continue to implement operational and strategic initiatives to grow our sales, control our expenses, manage the company and build for the future."

FINANCIAL RESULTS


THREE MONTHS ENDED:                                                         
(dollars in thousands)                                                      
                                                                            
----------------------------------------------------------------------------
                                  December 31,   December 31,               
                                          2013           2012         Change
----------------------------------------------------------------------------
                        Sales   $      62,804  $      62,533  $         271 
----------------------------------------------------------------------------
                                                                            
     Earnings from Operations   $       4,157  $       5,545  $      (1,388)
----------------------------------------------------------------------------
                                                                            
                Exchange Gain   $        (217) $        (393) $        (176)
----------------------------------------------------------------------------
                                                                            
                 Net Earnings   $       2,895  $       4,730  $      (1,835)
----------------------------------------------------------------------------
                                                                            
           Earnings per share                                               
                        Basic   $        0.25  $        0.41  $       (0.16)
                      Diluted   $        0.25  $        0.41  $       (0.16)
----------------------------------------------------------------------------
     Cash (used) generated by                                               
                   Operations   $      (2,819)       $10,461  $     (13,280)
                                                                            
----------------------------------------------------------------------------
                                                                            
TWELVE MONTHS ENDED:                                                        
(dollars in thousands)                                                      
                                                                            
----------------------------------------------------------------------------
                                  December 31,   December 31,               
                                         2013           2012         Change 
----------------------------------------------------------------------------
                        Sales   $     242,941  $     257,376  $     (14,435)
----------------------------------------------------------------------------
                                                                            
     Earnings from Operations   $      11,036  $      18,180  $      (7,144)
----------------------------------------------------------------------------
                                                                            
         Exchange Loss/(Gain)   $          80  $        (775) $        (855)
----------------------------------------------------------------------------
                                                                            
                 Net Earnings   $       6,104  $      12,611  $      (6,507)
----------------------------------------------------------------------------
                                                                            
           Earnings per share                                               
                        Basic   $        0.52  $        1.08  $       (0.56)
                      Diluted   $        0.52  $        1.08  $       (0.56)
----------------------------------------------------------------------------
 Cash generated by Operations   $         620  $      21,371  $     (20,751)
                                                                            
----------------------------------------------------------------------------

TELECONFERENCE

Hammond Power Solutions Inc. will hold a conference call on Friday, March 14, 2014 at 10:00 a.m. EST, to discuss the Company's financial results for the fourth quarter 2013.

Listeners may attend the conference by dialing:


1-416-340-2216 / 1-866-226-1792 / 1-800-9559-6849                          
                                                                           
Instant Replay                                                             
Dial in numbers          905-694-9451 or 1-800-408-3053                    
Pass code                7239947                                           
End date                 March 28, 2014                                    

Caution Regarding Forward-Looking Information

This press release contains forward-looking statements that involve a number of risks and uncertainties, including statements that relate to among other things, HPS' strategies, intentions, plans, beliefs, expectations and estimates, and can generally be identified by the use of words such as "may", "will", "could", "should", "would", "likely", "expect", "intend", "estimate", "anticipate", "believe", "plan", "objective" and "continue" and words and expressions of similar import. Although HPS believes that the expectations reflected in such forward-looking statements are reasonable, such statements involve risks and uncertainties, and undue reliance should not be placed on such statements. Certain material factors or assumptions are applied in making forward-looking statements, and actual results may differ materially from those expressed or implied in such statements. Important factors that could cause actual results to differ materially from expectations include but are not limited to: general business and economic conditions (including but not limited to currency rates); changes in laws and regulations; legal and regulatory proceedings; and the ability to execute strategic plans. HPS does not undertake any obligation to update publicly or to revise any of the forward-looking statements contained in this document, whether as a result of new information, future events or otherwise, except as required by law.

ABOUT HAMMOND POWER SOLUTIONS INC.

Hammond Power Solutions Inc. (TSX:HPS.A) is a North American leader for the design and manufacture of dry-type custom electrical engineered magnetics, electrical dry-type and cast resin transformers. Leading edge engineering capabilities, high quality products, and responsive service to customers' needs have all served to establish HPS as a technical and innovative leader in the electrical and electronic industries.

HPS has operations in Canada, the United States, Mexico, India and Italy.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
Whether you like it or not, DevOps is on track for a remarkable alliance with security. The SEC didn’t approve the merger. And your boss hasn’t heard anything about it. Yet, this unruly triumvirate will soon dominate and deliver DevSecOps faster, cheaper, better, and on an unprecedented scale. In his session at DevOps Summit, Frank Bunger, VP of Customer Success at ScriptRock, will discuss how this cathartic moment will propel the DevOps movement from such stuff as dreams are made on to a prac...
SYS-CON Events announced today that DataClear Inc. will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. The DataClear ‘BlackBox’ is the only solution that moves your PC, browsing and data out of the United States and away from prying (and spying) eyes. Its solution automatically builds you a clean, on-demand, virus free, new virtual cloud based PC outside of the United States, and wipes it clean...
With the proliferation of connected devices underpinning new Internet of Things systems, Brandon Schulz, Director of Luxoft IoT – Retail, will be looking at the transformation of the retail customer experience in brick and mortar stores in his session at @ThingsExpo. Questions he will address include: Will beacons drop to the wayside like QR codes, or be a proximity-based profit driver? How will the customer experience change in stores of all types when everything can be instrumented and a...
Contrary to mainstream media attention, the multiple possibilities of how consumer IoT will transform our everyday lives aren’t the only angle of this headline-gaining trend. There’s a huge opportunity for “industrial IoT” and “Smart Cities” to impact the world in the same capacity – especially during critical situations. For example, a community water dam that needs to release water can leverage embedded critical communications logic to alert the appropriate individuals, on the right device, as...
Manufacturing connected IoT versions of traditional products requires more than multiple deep technology skills. It also requires a shift in mindset, to realize that connected, sensor-enabled “things” act more like services than what we usually think of as products. In his session at @ThingsExpo, David Friedman, CEO and co-founder of Ayla Networks, will discuss how when sensors start generating detailed real-world data about products and how they’re being used, smart manufacturers can use the ...
WebRTC services have already permeated corporate communications in the form of videoconferencing solutions. However, WebRTC has the potential of going beyond and catalyzing a new class of services providing more than calls with capabilities such as mass-scale real-time media broadcasting, enriched and augmented video, person-to-machine and machine-to-machine communications. In his session at @ThingsExpo, Luis Lopez, CEO of Kurento, will introduce the technologies required for implementing thes...
Organizations from small to large are increasingly adopting cloud solutions to deliver essential business services at a much lower cost. According to cyber security experts, the frequency and severity of cyber-attacks are on the rise, causing alarm to businesses and customers across a variety of industries. To defend against exploits like these, a company must adopt a comprehensive security defense strategy that is designed for their business. In 2015, organizations such as United Airlines, Sony...
SYS-CON Events announced today that HPM Networks will exhibit at the 17th International Cloud Expo®, which will take place on November 3–5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. For 20 years, HPM Networks has been integrating technology solutions that solve complex business challenges. HPM Networks has designed solutions for both SMB and enterprise customers throughout the San Francisco Bay Area.
Any Ops team trying to support a company in today’s cloud-connected world knows that a new way of thinking is required – one just as dramatic than the shift from Ops to DevOps. The diversity of modern operations requires teams to focus their impact on breadth vs. depth. In his session at DevOps Summit, Adam Serediuk, Director of Operations at xMatters, Inc., will discuss the strategic requirements of evolving from Ops to DevOps, and why modern Operations has begun leveraging the “NoOps” approa...
While many app developers are comfortable building apps for the smartphone, there is a whole new world out there. In his session at @ThingsExpo, Narayan Sainaney, Co-founder and CTO of Mojio, will discuss how the business case for connected car apps is growing and, with open platform companies having already done the heavy lifting, there really is no barrier to entry.
To assist customers with legacy Windows Server 2003 that is no longer supported by Microsoft, Racemi has introduced fixed price packages for upgrading and migrating Windows Server 2003 servers to either Windows 2008 R2 or Windows 2012 R2 and the choice of Amazon Web Services (AWS) or SoftLayer cloud. "We're extending a lifeline by upgrading the legacy servers to more modern Windows Server platforms while taking advantage of cloud computing," said James Strayer, vice president of product managem...
All major researchers estimate there will be tens of billions devices - computers, smartphones, tablets, and sensors - connected to the Internet by 2020. This number will continue to grow at a rapid pace for the next several decades. With major technology companies and startups seriously embracing IoT strategies, now is the perfect time to attend @ThingsExpo, November 3-5, 2015, at the Santa Clara Convention Center in Santa Clara, CA. Learn what is going on, contribute to the discussions, and e...
As more intelligent IoT applications shift into gear, they’re merging into the ever-increasing traffic flow of the Internet. It won’t be long before we experience bottlenecks, as IoT traffic peaks during rush hours. Organizations that are unprepared will find themselves by the side of the road unable to cross back into the fast lane. As billions of new devices begin to communicate and exchange data – will your infrastructure be scalable enough to handle this new interconnected world?
In today's digital world, change is the one constant. Disruptive innovations like cloud, mobility, social media, and the Internet of Things have reshaped the market and set new standards in customer expectations. To remain competitive, businesses must tap the potential of emerging technologies and markets through the rapid release of new products and services. However, the rigid and siloed structures of traditional IT platforms and processes are slowing them down – resulting in lengthy delivery ...
The Internet of Things is in the early stages of mainstream deployment but it promises to unlock value and rapidly transform how organizations manage, operationalize, and monetize their assets. IoT is a complex structure of hardware, sensors, applications, analytics and devices that need to be able to communicate geographically and across all functions. Once the data is collected from numerous endpoints, the challenge then becomes converting it into actionable insight.