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
As enterprises work to take advantage of Big Data technologies, they frequently become distracted by product-level decisions. In most new Big Data builds this approach is completely counter-productive: it presupposes tools that may not be a fit for development teams, forces IT to take on the burden of evaluating and maintaining unfamiliar technology, and represents a major up-front expense. In his session at @BigDataExpo at @ThingsExpo, Andrew Warfield, CTO and Co-Founder of Coho Data, will dis...
SYS-CON Events announced today that Fusion, a leading provider of cloud services, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Fusion, a leading provider of integrated cloud solutions to small, medium and large businesses, is the industry's single source for the cloud. Fusion's advanced, proprietary cloud service platform enables the integration of leading edge solutions in the cloud, including clou...
As someone who has been dedicated to automation and Application Release Automation (ARA) technology for almost six years now, one of the most common questions I get asked regards Platform-as-a-Service (PaaS). Specifically, people want to know whether release automation is still needed when a PaaS is in place, and why. Isn't that what a PaaS provides? A solution to the deployment and runtime challenges of an application? Why would anyone using a PaaS then need an automation engine with workflow ...
With the Apple Watch making its way onto wrists all over the world, it’s only a matter of time before it becomes a staple in the workplace. In fact, Forrester reported that 68 percent of technology and business decision-makers characterize wearables as a top priority for 2015. Recognizing their business value early on, FinancialForce.com was the first to bring ERP to wearables, helping streamline communication across front and back office functions. In his session at @ThingsExpo, Kevin Roberts...
SYS-CON Events announced today that Commvault, a global leader in enterprise data protection and information management, has been named “Bronze Sponsor” of SYS-CON's 18th International Cloud Expo, which will take place on June 7–9, 2016, at the Javits Center in New York City, NY, and the 19th International Cloud Expo, which will take place on November 1–3, 2016, at the Santa Clara Convention Center in Santa Clara, CA. Commvault is a leading provider of data protection and information management...
Your business relies on your applications and your employees to stay in business. Whether you develop apps or manage business critical apps that help fuel your business, what happens when users experience sluggish performance? You and all technical teams across the organization – application, network, operations, among others, as well as, those outside the organization, like ISPs and third-party providers – are called in to solve the problem.
SYS-CON Events announced today that Alert Logic, Inc., the leading provider of Security-as-a-Service solutions for the cloud, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. Alert Logic, Inc., provides Security-as-a-Service for on-premises, cloud, and hybrid infrastructures, delivering deep security insight and continuous protection for customers at a lower cost than traditional security solutions. Ful...
@DevOpsSummit taking place June 7-9, 2016 at Javits Center, New York City, and Nov 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with the 18th International @CloudExpo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. @DevOpsSummit at Cloud Expo New York Call for Papers is now open.
SYS-CON Events announced today that VAI, a leading ERP software provider, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. VAI (Vormittag Associates, Inc.) is a leading independent mid-market ERP software developer renowned for its flexible solutions and ability to automate critical business functions for the distribution, manufacturing, specialty retail and service sectors. An IBM Premier Business Part...
SYS-CON Events announced today that Catchpoint Systems, Inc., a provider of innovative web and infrastructure monitoring solutions, has been named “Silver Sponsor” of SYS-CON's DevOps Summit at 18th Cloud Expo New York, which will take place June 7-9, 2016, at the Javits Center in New York City, NY. Catchpoint is a leading Digital Performance Analytics company that provides unparalleled insight into customer-critical services to help consistently deliver an amazing customer experience. Designed...
Let’s face it, embracing new storage technologies, capabilities and upgrading to new hardware often adds complexity and increases costs. In his session at 18th Cloud Expo, Seth Oxenhorn, Vice President of Business Development & Alliances at FalconStor, will discuss how a truly heterogeneous software-defined storage approach can add value to legacy platforms and heterogeneous environments. The result reduces complexity, significantly lowers cost, and provides IT organizations with improved effi...
SYS-CON Events announced today that Pythian, a global IT services company specializing in helping companies adopt disruptive technologies to optimize revenue-generating systems, has been named “Bronze Sponsor” of SYS-CON's 18th Cloud Expo, which will take place on June 7-9, 2015 at the Javits Center in New York, New York. Founded in 1997, Pythian is a global IT services company that helps companies compete by adopting disruptive technologies such as cloud, Big Data, advanced analytics, and DevO...
SYS-CON Events announced today that Men & Mice, the leading global provider of DNS, DHCP and IP address management overlay solutions, will exhibit at SYS-CON's 18th International Cloud Expo®, which will take place on June 7-9, 2016, at the Javits Center in New York City, NY. The Men & Mice Suite overlay solution is already known for its powerful application in heterogeneous operating environments, enabling enterprises to scale without fuss. Building on a solid range of diverse platform support,...
Cognitive Computing is becoming the foundation for a new generation of solutions that have the potential to transform business. Unlike traditional approaches to building solutions, a cognitive computing approach allows the data to help determine the way applications are designed. This contrasts with conventional software development that begins with defining logic based on the current way a business operates. In her session at 18th Cloud Expo, Judith S. Hurwitz, President and CEO of Hurwitz & ...
One of the bewildering things about DevOps is integrating the massive toolchain including the dozens of new tools that seem to crop up every year. Part of DevOps is Continuous Delivery and having a complex toolchain can add additional integration and setup to your developer environment. In his session at @DevOpsSummit at 18th Cloud Expo, Miko Matsumura, Chief Marketing Officer of Gradle Inc., will discuss which tools to use in a developer stack, how to provision the toolchain to minimize onboa...