Distributors

Anixter Sales Up 10% In Second Quarter

GLENVIEW, Ill. — Anixter International Inc. today reported quarterly sales of $1.48 billion for the quarter ended July 3, 2015, a 10.2 percent increase compared to the year-ago quarter. The current quarter and year-ago quarter each had 63 billing days. Adjusting for the favorable impact from the third quarter 2014 acquisition of Tri-Ed and the unfavorable impacts of the stronger US dollar and weaker average copper prices, organic sales increased 3.4 percent year-over-year. All commentary in this release reflects continuing operations unless otherwise noted. Please refer to the tables at the end of this release for the reconciliations to GAAP from the adjusted numbers as reported.

“Our Enterprise Cabling & Security Solutions (“ECS”) segment achieved quarterly sales of $1 billion for the first time in our history, reflecting strength in both our security solutions and network infrastructure businesses,” commented Bob Eck, President and CEO. “Sequentially, sales improved in our Electrical and Electronic Wire & Cable (“W&C”) segment, while on a year-over-year basis, the business was negatively affected by copper and slower industrial growth, especially related to the oil and gas sector in Canada. From a geographic perspective, we delivered strong organic growth in the US while overall North America growth was adversely impacted by the weaker Canadian macro environment.”

Operating income of $64.5 million compares to $77.2 million in the prior year quarter. Excluding $14.1 million of expense, which includes restructuring costs, an asset write-off and related business realignment expenses, adjusted operating profit of $78.6 million compares to $77.2 million in the prior year quarter. Adjusted operating income was negatively impacted by higher amortization expense resulting from the Tri-Ed acquisition. ECS adjusted operating profit of $50.9 million compares to $45.5 million in the prior year quarter and W&C adjusted operating profit of $30.0 million compares to $34.7 million in the prior year quarter.

Adjusted EBITDA of $92.7 million, or 6.3 percent of sales, compares to $86.6 million, or 6.5 percent of sales, in the prior year quarter. The decline in margin reflects the impact of mix from the strong growth in our security business, foreign exchange, lower average copper prices and competitive pricing pressure in the market.

Adjusted net income of $38.4 million compares to $43.0 million in the prior year quarter. Versus prior year, currency and copper had a $2.5 million negative impact, higher depreciation and amortization resulting from the Tri-Ed acquisition had a $2.4 million negative impact, and stranded costs associated with the sale of the Fasteners business had a $1.7 million negative impact, respectively.

Adjusted earnings per diluted share of $1.15 compare to $1.29 in the prior year quarter. Current year earnings were negatively impacted by $0.20 from the above-mentioned items.

 

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