x
|
ANNUAL
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
¨
|
TRANSITION
REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF
1934
|
Delaware
|
36-4151663
|
(State
or other jurisdiction of incorporation or organization)
|
(I.R.S.
Employer Identification No.)
|
10201
North Loop East
Houston,
Texas
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77029
|
(Address
of principal executive offices)
|
(Zip
Code)
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Title
of Class
|
Name
of Each Exchange on Which Registered
|
|
Common
stock, par value $0.001 per share
|
The
Nasdaq Stock Market
|
Large Accelerated
Filer ¨
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Accelerated Filer x
|
Non-Accelerated Filer ¨
|
Smaller reporting
company ¨
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PART
I.
|
||
Item
1.
|
Business
|
2
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Item
1A.
|
Risk
Factors
|
10
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Item
1B.
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Unresolved
Staff Comments
|
12
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Item
2.
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Properties
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12
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Item
3.
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Legal
Proceedings
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13
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Item
4.
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Reserved
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13
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Supplemental
Item. Executive Officers of the Registrant
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13
|
|
PART
II.
|
||
Item
5.
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Market
for Registrant’s Common Equity, Related Stockholder Matters and Issuer
Purchases of Equity Securities
|
14
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Item
6.
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Selected
Financial Data
|
16
|
Item
7.
|
Management’s
Discussion and Analysis of Financial Condition and Results of
Operations
|
18
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Item
7A.
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Quantitative
and Qualitative Disclosures About Market Risk
|
27
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Item
8.
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Consolidated
Financial Statements and Supplementary Data
|
28
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Item
9.
|
Changes
in and Disagreements with Accountants on Accounting and Financial
Disclosure
|
45
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Item
9A.
|
Controls
and Procedures
|
45
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Item
9B.
|
Other
Information
|
48
|
PART
III.
|
||
Item
10.
|
Directors,
Executive Officers and Corporate Governance
|
48
|
Item
11.
|
Executive
Compensation
|
48
|
Item
12.
|
Security
Ownership of Certain Beneficial Owners and Management and Related
Stockholder Matters
|
48
|
Item
13.
|
Certain
Relationships and Related Transactions, and Director
Independence
|
48
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Item
14.
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Principal
Accountant Fees and Services
|
48
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Part
IV.
|
||
Item
15.
|
Exhibits
and Financial Statement Schedules
|
49
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|
•
|
Continuous Corrugated
Armor. Continuous armor cable is available in low voltage and
medium voltage constructions and is used in harsh environments where
maximum conductor protection is required. The corrugated seamless aluminum
armor sheath prevents the entrance of water, gas and corrosive elements
into the electrical core of the cable. Continuous armor cable is used in a
wide variety of applications including industrial power distribution,
pulp and paper, utility and petrochemical operations. This product can be
used indoors and outdoors, aerially, in conduits, ducts, cable trays and
direct burial applications.
|
|
•
|
Control &
Power. Control and power cable is 600 volt single or multiple
conductor cable used in a broad range of commercial, industrial and
utility applications. Applications include lighting, control and power
circuits in wet and dry locations in conduits, ducts and raceways.
Control and power cable is chemical, gasoline and oil resistant, and may
be directly buried or installed in cable
trays.
|
|
•
|
Electronic. Electronic
cable is primarily used in audio, control, instrumentation and computer
applications. It is highly engineered cable that provides specific
electrical performance characteristics for a broad range of data,
communications and industrial
applications.
|
|
•
|
Flexible & Portable
Cord.
Flexible and portable cord is a highly flexible and durable single or
multiple conductor cable used in heavy-duty industrial applications. These
cables are commonly used for energizing mobile mining equipment, diesel
electric locomotives, lifting magnets, cranes and loaders, as well as for
portable power distribution for tools, equipment, small motors and
machinery.
|
|
•
|
Instrumentation &
Thermocouple. Instrumentation and thermocouple cable is 300 volt or
600 volt, twisted pair or triad cable used to transmit signals for
instrument, process and control, or heat sensing instruments. It may be
used in wet and dry locations, indoors or outdoors, aerially, in conduits,
ducts, cable trays or 600 volt direct burial
applications.
|
|
•
|
Interlocked Armor.
Interlocked armor cable is available in low voltage and medium voltage
constructions and is used in harsh environments where maximum conductor
protection is required. The protective armor sheath is made from a thick
corrugated metal tape that locks together as it is wrapped around the
cable core. It is used in a wide variety of applications including
industrial power distribution, pulp and paper, utility and petrochemical
operations. This product can be used indoors and outdoors, aerially, in
conduits, ducts, cable trays and direct burial
applications.
|
|
•
|
Lead & High
Temperature. Lead and high temperature cable is 600 volt single
conductor cable used to create or complete electrical circuits. Many of
these cables are capable of withstanding flame temperatures in excess of
2,000°C or higher. This product is commonly used for power, control, and
instrumentation circuits in iron, steel, glass, aluminum and refining
applications, and in industrial heating and cooking
equipment.
|
|
•
|
Medium Voltage. Medium
voltage cable is a single or multi-conductor cable that is rated for 2,001
volts to 35,000 volts. This power cable can be used in open air, conduit,
duct, cable tray (when CT rated), wet and dry locations or be directly
buried in earth. It is commonly used in chemical plants, refineries, steel
mills, industrial plants, commercial buildings, utility substations and
generating stations.
|
•
|
Premise & Category
Wiring. Premise wiring is used for general purpose remote control
signaling and voice and data applications. Category cables are used for
high speed data transmission of voice, data and telephony
information.
|
|
•
|
LifeGuard™
cable is a low-smoke, zero-halogen cable constructed with highly
engineered polymers. LifeGuard's™ properties exceed those of standard
cable construction, and have excellent electrical and mechanical
characteristics. The jacket on LifeGuard™ cable is highly flame-retardant,
produces very small amounts of smoke when burned and contains no halogens.
LifeGuard™ is used in harsh environments for power, control and lighting
circuits in a broad range of commercial, industrial and utility
applications. LifeGuard™ cable is ideal for applications where a high
degree of safety and equipment protection is required. Our LifeGuard™
cable has been accepted for use by several hundred end-users, including
leading engineering and construction firms. We are currently marketing
LifeGuard™ to the utility industry for use in power generation and
environmental control applications; to industrial plants for
petrochemical, pharmaceutical and wastewater treatment related uses; to
general industry for use in data centers, such as computer rooms,
switching centers and central offices; and to the engineering and
construction market for use in highly populated facilities, such as
multi-story buildings, schools, hotels, hospitals, sports centers,
airports and mass transit stations.
|
|
•
|
We
introduced our DataGuard® product line in 2006 to service the data and
communications wire and cable market. These expansive and performance
driven markets require cables with exacting electrical characteristics.
Our DataGuard® products are premium quality, highly engineered cables
specifically designed to meet these demanding requirements and are used in
a broad range of audio, control, instrumentation and computer
applications.
|
|
•
|
Our
Houwire® product line has been custom tailored for the sound, security and
fire alarm market. Houwire® products are low-voltage cables that have been
value engineered for multiple applications in both industrial plants and
commercial facilities. These competitively priced items have helped to
position us for additional penetration into the broad and expanding sound
and security market.
|
|
•
|
eliminating
long lead times typically required by
manufacturers;
|
|
•
|
reducing
on-site labor costs;
|
|
•
|
fulfilling
small orders without subjecting customers to purchase order minimums and
price premiums;
|
|
•
|
reducing
waste through our cut-to-length service
offering;
|
|
•
|
moderating
inventory carrying costs by offering next-day delivery for SKUs which take
up substantial warehouse space;
|
|
•
|
providing
access to restricted and exclusive
brands;
|
|
•
|
offering
technical resource capabilities through our product specialists'
24-hours-a-day, seven-days-a-week, 365-days-a-year service;
and
|
|
•
|
managing
large, intermittent product orders through our Cable Management
Program.
|
|
•
|
Application Engineering
Support. Our sales personnel have significant technical knowledge
of the specialty wire and cable we distribute and their applications and
specifications. Our sales staff assists customers with selecting the
appropriate wire and cable products based on the intended use, cost and
performance specifications.
|
|
•
|
Standard Same Day Shipment
from Our Extensive Inventory. Through our nine distribution centers
and two third-party logistics providers, it is our standard practice to
ship product the day it is ordered, and we generally have it delivered by
ground the next business day.
|
|
•
|
24-Hours, 7-Days-a-Week,
365-Days-a-Year Service Anywhere in the United States. Our sales
offices and distribution centers provide
customers with around-the-clock customer support and can deliver
customized orders on short notice from any of our
locations.
|
|
•
|
Custom Color Striping.
We provide custom striping services, including color-coding products for
circuit design applications.
|
|
•
|
Cut-to-Length Capabilities at
No Additional Charge. We estimate that approximately 90% of
our stock orders are cut-to-length, which eliminates excess labor costs
and remnants for our customers.
|
|
•
|
Wire & Cable Training
Programs. We are actively engaged in wire and cable training both
for our distributor customers and for their end-user customers. Typical
training activities include wire schools at both supplier facilities and
our own, plant and site tours at our facilities and our suppliers'
facilities and on-site product training with cable
engineers.
|
|
•
|
Full Extranet
Capabilities. We give our customers internet-based, password
protected access to select areas of our real-time ERP system, which allows
them to check product availability, obtain pricing, and confirm order
status—including detailed shipping information identifying the carrier
used and shipment tracking number.
|
|
•
|
Cable Management
Program. Our Cable Management Program is an inventory management
system that pre-allocates specialty wire and cable for a customer's
specific project and includes a custom program designed to manage all of
the wire and cable requirements for the project. The major benefits of our
Cable Management Program include guaranteed availability of materials,
plus safety stock; immediate shipment of material upon field release; firm
pricing and a dedicated project manager. As part of the program, wire and
cable stock is reserved in our distribution centers and identified with a
unique part number to ensure it is available for sale when requested by
the customer. In addition, customers can review a project's inventory
24 hours a day via a secure internet site and can obtain details on
items such as individual circuit cut history and shipment and order
tracking information. Our Cable Management Program allows customers to
better manage their large projects and helps to eliminate job site theft,
expenses associated with delayed shipments of materials and surplus
materials.
|
|
•
|
Cable Selection System.
As an added feature of our Cable Management Program, we offer customers
our cable selection system. This is an internet-accessible order release
site through our website, that allows customers to self-manage their cable
requirements and initiate cable releases such that the releases arrive
just-in-time at the job site. With our cable selection system, the
customer can request the exact circuit lengths to which cable is cut,
project inventory status is available for review at any time, and the
project engineer or field manager can submit changes to their orders from
the field.
|
|
•
|
eliminating
the need to maintain their own asset intensive distribution system across
the U.S.;
|
|
•
|
placing
large orders, which allow suppliers to have efficient and cost-effective
production planning;
|
|
•
|
reducing
their marketing and sales functions and expenses;
and
|
|
•
|
allowing
them to rely on our technical specialists to provide technical support to
our customers and end-users.
|
|
•
|
driving
the specification of our private branded products such as
LifeGuard™;
|
|
•
|
developing
targeted account lists within regional sales
territories;
|
|
•
|
adding
sales managers in larger regions to assist regional
managers;
|
|
•
|
adding
support personnel for the development of our targeted
markets;
|
|
•
|
partnering
with leading electrical distributor marketing groups to target Fortune 100
companies;
|
|
•
|
revising
the sales commission plan to motivate and compensate personnel for
profitable incremental growth;
|
|
•
|
adding
national account managers to service our largest customers;
and
|
|
•
|
implementing
a customer relationship management platform to help target and develop new
accounts.
|
|
•
|
creating
an executive marketing position responsible for continual strategic
analysis of our marketing channels, customers, products, and brand
awareness;
|
|
•
|
implementing
a sales and marketing organizational infrastructure driven by corporate
market managers and segmented by targeted
markets;
|
|
•
|
adding
marketing personnel to handle customer-specific marketing
programs;
|
|
•
|
adopting
pricing matrices and controls;
|
|
•
|
developing
marketing plans to target new markets and customers;
and
|
|
•
|
developing
new private branded products, such as LifeGuard™, DataGuard® and
Houwire®.
|
Location
|
Total
Space
|
Distribution
Center
|
Owned/Leased
|
|||||
(Sq
Ft)
|
(Sq
Ft)
|
|||||||
Houston,
TX
|
166,720 |
136,720
|
Owned
|
|||||
Chicago,
IL
|
86,705 |
81,635
|
Leased
|
|||||
Charlotte,
NC
|
76,159 |
68,892
|
Leased
|
|||||
Philadelphia,
PA
|
60,000 |
54,500
|
Leased
|
|||||
Los
Angeles, CA
|
52,901 |
47,036
|
Leased
|
|||||
Atlanta,
GA
|
50,733 |
47,483
|
Leased
|
|||||
Tampa,
FL
|
49,776 |
45,374
|
Leased
|
|||||
Seattle,
WA
|
30,363 |
28,275
|
Leased
|
|||||
Baton
Rouge, LA
|
22,200 |
19,700
|
Leased
|
|||||
Total
|
595,557 |
529,615
|
|
•
|
Denver,
Colorado—Inventory and ship pre-packaged and cut-to-order lengths
of specialty wire and cable for a monthly fixed fee plus a per
transaction charge; and
|
|
•
|
San Francisco,
California—Inventory and ship pre-packaged and cut-to-order lengths
of specialty wire and cable for a monthly fixed fee plus a per transaction
charge.
|
Name/Office
|
Age
|
Served as an
Officer
Since
|
Business Experience
During Last 5 Years
|
|||
Charles
A. Sorrentino
President
and Chief Executive Officer
|
65
|
1998
|
President
and Chief Executive Officer of the Company.
|
|||
Nicol
G. Graham
Chief
Financial Officer, Treasurer and Secretary
|
57
|
1997
|
Chief
Financial Officer, Treasurer and Secretary of the
Company.
|
High
|
Low
|
|||||||
Year
ended December 31, 2009:
|
||||||||
First
quarter
|
$ | 9.34 | $ | 4.70 | ||||
Second
quarter
|
$ | 14.76 | $ | 7.45 | ||||
Third
quarter
|
$ | 12.66 | $ | 8.56 | ||||
Fourth
quarter
|
$ | 13.49 | $ | 10.51 | ||||
Year
ended December 31, 2008:
|
||||||||
First
quarter
|
$ | 17.97 | $ | 11.22 | ||||
Second
quarter
|
$ | 22.74 | $ | 15.90 | ||||
Third
quarter
|
$ | 22.00 | $ | 15.63 | ||||
Fourth
quarter
|
$ | 17.47 | $ | 5.61 |
Period
|
Total number of
shares purchased
|
Average
price paid
per share
|
Total number of
shares purchased
as part of publicly
announced plans
or programs (1)
|
Maximum
dollar value
that may yet be
used for
purchases
under the plan
|
||||||||||||
October
1 – 31, 2009
|
— | $ | — | — | $ | 19,385,303 | ||||||||||
November
1 – 30, 2009
|
— | $ | — | — | $ | 19,385,303 | ||||||||||
December
1 – 31, 2009
|
— | $ | — | — | $ | 19,385,303 | ||||||||||
Total
|
— | $ | — | — |
Year Ended December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars in thousands, except share data)
|
||||||||||||||||||||
CONSOLIDATED
STATEMENT OF INCOME DATA:
|
||||||||||||||||||||
Sales
|
$ | 254,819 | $ | 360,939 | $ | 359,115 | $ | 323,467 | $ | 213,957 | ||||||||||
Cost
of sales
|
201,865 | 275,224 | 266,276 | 231,128 | 158,240 | |||||||||||||||
Gross
profit
|
52,954 | 85,715 | 92,839 | 92,339 | 55,717 | |||||||||||||||
Operating
expenses:
|
||||||||||||||||||||
Salaries
and commissions
|
20,596 | 24,080 | 23,861 | 22,706 | 18,707 | |||||||||||||||
Other
operating expenses
|
18,023 | 20,728 | 18,811 | 15,975 | 14,016 | |||||||||||||||
Management fee to stockholder (1)
|
— | — | — | 208 | 500 | |||||||||||||||
Litigation
settlements
|
— | — | — | — | (672 | ) | ||||||||||||||
Depreciation
and amortization
|
563 | 523 | 459 | 376 | 398 | |||||||||||||||
Total
operating expenses
|
39,182 | 45,331 | 43,131 | 39,265 | 32,949 | |||||||||||||||
Operating
income
|
13,772 | 40,384 | 49,708 | 53,074 | 22,768 | |||||||||||||||
Interest
expense
|
520 | 1,825 | 1,188 | 3,075 | 2,955 | |||||||||||||||
Income
before income taxes
|
13,252 | 38,559 | 48,520 | 49,999 | 19,813 | |||||||||||||||
Income
tax provision
|
5,220 | 14,822 | 18,295 | 19,325 | 7,299 | |||||||||||||||
Net
income
|
$ | 8,032 | $ | 23,737 | $ | 30,225 | $ | 30,674 | $ | 12,514 | ||||||||||
Earnings
per share (2):
|
||||||||||||||||||||
Basic
|
$ | 0.46 | $ | 1.33 | $ | 1.49 | $ | 1.63 | $ | 0.75 | ||||||||||
Diluted
|
$ | 0.45 | $ | 1.33 | $ | 1.48 | $ | 1.62 | $ | 0.75 | ||||||||||
Weighted
average common shares outstanding (2):
|
||||||||||||||||||||
Basic
|
17,648,696 | 17,789,739 | 20,328,182 | 18,875,192 | 16,606,672 | |||||||||||||||
Diluted
|
17,665,924 | 17,838,072 | 20,406,000 | 18,984,826 | 16,757,303 |
(1)
|
The
management fee arrangement was terminated as of the completion of our
initial public offering in June
2006.
|
(2)
|
The
2005 and 2006 share information has been restated for the 1.875-for-1
stock split on May 16, 2006.
|
As of December 31,
|
||||||||||||||||||||
2009
|
2008
|
2007
|
2006
|
2005
|
||||||||||||||||
(Dollars
in thousands)
|
||||||||||||||||||||
CONSOLIDATED
BALANCE SHEET DATA:
|
||||||||||||||||||||
Cash
and cash equivalents
|
$ | — | $ | — | $ | — | $ | — | $ | — | ||||||||||
Accounts
receivable, net
|
$ | 46,859 | $ | 50,798 | $ | 58,202 | $ | 52,128 | $ | 41,309 | ||||||||||
Inventories,
net
|
$ | 61,325 | $ | 73,459 | $ | 69,299 | $ | 56,329 | $ | 31,306 | ||||||||||
Total
assets
|
$ | 122,014 | $ | 134,753 | $ | 139,091 | $ | 116,864 | $ | 81,241 | ||||||||||
Book overdraft (1)
|
$ | 907 | $ | 4,933 | $ | 3,854 | $ | 1,265 | $ | 2,119 | ||||||||||
Total debt (2)
(3)
|
$ | 17,479 | $ | 29,808 | $ | 34,507 | $ | 12,059 | $ | 61,406 | ||||||||||
Stockholders’
equity (2)
(3)
|
$ | 80,813 | $ | 76,595 | $ | 71,170 | $ | 81,674 | $ | 742 |
(1)
|
Our
book overdraft is funded by our revolving credit facility as soon as the
related checks clear our disbursement
account.
|
(2)
|
On
December 30, 2005, we paid a special dividend of $20.0 million to our
common stockholders and funded the payment by borrowing under our existing
credit facility.
|
(3)
|
A
stock repurchase program was approved in 2007. During the years ended
December 31, 2008 and 2007, purchases of stock totaling $14,725 and
$40,890, respectively, were made, part of which was funded by debt. No
repurchases were made during the year ended December 31,
2009.
|
Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Sales
|
100.0 | % | 100.0 | % | 100.0 | % | ||||||
Cost
of sales
|
79.2 | % | 76.3 | % | 74.1 | % | ||||||
Gross
profit
|
20.8 | % | 23.7 | % | 25.9 | % | ||||||
Operating
expenses:
|
||||||||||||
Salaries
and commissions
|
8.1 | % | 6.7 | % | 6.6 | % | ||||||
Other
operating expenses
|
7.1 | % | 5.7 | % | 5.2 | % | ||||||
Depreciation
and amortization
|
0.2 | % | 0.1 | % | 0.1 | % | ||||||
Total
operating expenses
|
15.4 | % | 12.6 | % | 12.0 | % | ||||||
Operating
income
|
5.4 | % | 11.2 | % | 13.8 | % | ||||||
Interest
expense
|
0.2 | % | 0.5 | % | 0.3 | % | ||||||
Income
before income taxes
|
5.2 | % | 10.7 | % | 13.5 | % | ||||||
Income
tax provision
|
2.0 | % | 4.1 | % | 5.1 | % | ||||||
Net
income
|
3.2 | % | 6.6 | % | 8.4 | % |
Year Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
(Dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||||||||
Sales
|
$ | 254.8 | $ | 360.9 | $ | (106.1 | ) | (29.4 | ) % |
Year Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
(Dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||||||||
Gross
profit
|
$ | 53.0 | $ | 85.7 | $ | (32.8 | ) | (38.2 | ) % | |||||||
Gross
profit as a percent of sales
|
20.8 | % | 23.7 | % | (2.9 | ) % |
Year Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
(Dollars
in millions)
|
2009
|
2008
|
Change
|
|||||||||||||
Operating
expenses:
|
||||||||||||||||
Salaries
and commissions
|
$ | 20.6 | $ | 24.1 | $ | (3.5 | ) | (14.5 | )% | |||||||
Other
operating expenses
|
18.0 | 20.7 | (2.7 | ) | (13.0 | )% | ||||||||||
Depreciation
and amortization
|
0.6 | 0.5 | 0.1 | 7.6 | % | |||||||||||
Total
operating expenses:
|
$ | 39.2 | $ | 45.3 | $ | (6.1 | ) | (13.6 | )% | |||||||
Operating
expenses as a percent of sales
|
15.4 | % | 12.6 | % | 2.8 | % |
Year Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
(Dollars in millions)
|
2008
|
2007
|
Change
|
|||||||||||||
Sales
|
$ | 360.9 | $ | 359.1 | $ | 1.8 | 0.5 | % |
Year
Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
(Dollars
in millions)
|
2008
|
2007
|
Change
|
|||||||||||||
Gross
profit
|
$ | 85.7 | $ | 92.8 | $ | (7.1 | ) | (7.7 | ) % | |||||||
Gross
profit as a percent of sales
|
23.7 | % | 25.9 | % | (2.2 | ) % |
Year Ended
|
||||||||||||||||
December 31,
|
||||||||||||||||
(Dollars in millions)
|
2008
|
2007
|
Change
|
|||||||||||||
Operating
expenses:
|
||||||||||||||||
Salaries
and commissions
|
$ | 24.1 | $ | 23.9 | $ | 0.2 | 0.9 | % | ||||||||
Other
operating expenses
|
20.7 | 18.8 | 1.9 | 10.2 | % | |||||||||||
Depreciation
and amortization
|
0.5 | 0.5 | 0.0 | 13.9 | % | |||||||||||
Total
operating expenses:
|
$ | 45.3 | $ | 43.1 | $ | 2.2 | 5.1 | % | ||||||||
Operating
expenses as a percent of sales
|
12.6 | % | 12.0 | % | 0.6 | % |
|
·
|
the
adequacy of available bank lines of
credit;
|
|
·
|
the
ability to attract long-term capital with satisfactory
terms;
|
|
·
|
additional
stock repurchases;
|
|
·
|
cash
flows generated from operating
activities;
|
|
·
|
payment
of dividends;
|
|
·
|
capital
expenditures; and
|
|
·
|
acquisitions
|
Total
|
Less than
1 year
|
1-3 years
|
3-5 years
|
More than
5 years
|
||||||||||||||||
(In thousands)
|
||||||||||||||||||||
Loans
payable
|
$ | 17,479 | $ | — | $ | — | $ | 17,479 | $ | — | ||||||||||
Operating
lease obligations
|
9,116 | 2,469 | 4,152 | 2,285 | 210 | |||||||||||||||
Non-cancellable purchase
obligations (1)
|
27,713 | 27,713 | — | — | — | |||||||||||||||
Total
|
$ | 54,308 | $ | 30,182 | $ | 4,152 | $ | 19,764 | $ | 210 |
(1)
|
These
obligations reflect purchase orders outstanding with manufacturers as of
December 31, 2009. We believe that some of these obligations may be
cancellable upon negotiation with our vendors, but we are treating these
as non-cancellable for this disclosure due to the absence of an express
cancellation right.
|
Page
|
|
Report
of Independent Registered Public Accounting Firm
|
29
|
Consolidated
Balance Sheets as of December 31, 2009 and 2008
|
30
|
Consolidated
Statements of Income for the years ended December 31, 2009, 2008 and
2007
|
31
|
Consolidated
Statements of Stockholders’ Equity for the years ended December 31, 2009,
2008 and 2007
|
32
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2009, 2008 and
2007
|
33
|
Notes
to Consolidated Financial Statements
|
34
|
December 31,
|
||||||||
2009
|
2008
|
|||||||
(In thousands, except
share data)
|
||||||||
Assets
|
||||||||
Current
assets:
|
||||||||
Accounts
receivable, net
|
$ | 46,859 | $ | 50,798 | ||||
Inventories,
net
|
61,325 | 73,459 | ||||||
Deferred
income taxes
|
1,776 | 1,591 | ||||||
Prepaids
|
3,649 | 829 | ||||||
Total
current assets
|
113,609 | 126,677 | ||||||
Property
and equipment, net
|
3,169 | 3,274 | ||||||
Goodwill
|
2,362 | 2,362 | ||||||
Deferred
income taxes
|
2,855 | 2,353 | ||||||
Other
assets
|
19 | 87 | ||||||
Total
assets
|
$ | 122,014 | $ | 134,753 | ||||
Liabilities
and stockholders’ equity
|
||||||||
Current
liabilities:
|
||||||||
Book
overdraft
|
$ | 907 | $ | 4,933 | ||||
Trade
accounts payable
|
11,610 | 10,091 | ||||||
Accrued
and other current liabilities
|
10,924 | 11,682 | ||||||
Income
taxes
|
281 | 1,644 | ||||||
Total
current liabilities
|
23,722 | 28,350 | ||||||
Long-term
obligations
|
17,479 | 29,808 | ||||||
Stockholders’
equity:
|
||||||||
Preferred
stock, $0.001 par value; 5,000,000 shares authorized, none issued and
outstanding
|
||||||||
Common
stock, $0.001 par value; 100,000,000 shares authorized: 20,988,952 shares
issued:
|
||||||||
17,732,737
and 17,642,552 shares outstanding at December 31, 2009 and 2008,
respectively
|
21 | 21 | ||||||
Additional
paid-in capital
|
56,609 | 55,901 | ||||||
Retained
earnings
|
77,571 | 75,540 | ||||||
Treasury
stock
|
(53,388 | ) | (54,867 | ) | ||||
Total
stockholders’ equity
|
80,813 | 76,595 | ||||||
Total
liabilities and stockholders’ equity
|
$ | 122,014 | $ | 134,753 |
Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(In thousands, except share and per share
data)
|
||||||||||||
Sales
|
$ | 254,819 | $ | 360,939 | $ | 359,115 | ||||||
Cost
of sales
|
201,865 | 275,224 | 266,276 | |||||||||
Gross
profit
|
52,954 | 85,715 | 92,839 | |||||||||
Operating
expenses:
|
||||||||||||
Salaries
and commissions
|
20,596 | 24,080 | 23,861 | |||||||||
Other
operating expenses
|
18,023 | 20,728 | 18,811 | |||||||||
Depreciation
and amortization
|
563 | 523 | 459 | |||||||||
Total
operating expenses
|
39,182 | 45,331 | 43,131 | |||||||||
Operating
income
|
13,772 | 40,384 | 49,708 | |||||||||
Interest
expense
|
520 | 1,825 | 1,188 | |||||||||
Income
before income taxes
|
13,252 | 38,559 | 48,520 | |||||||||
Income
tax provision
|
5,220 | 14,822 | 18,295 | |||||||||
Net
income
|
$ | 8,032 | $ | 23,737 | $ | 30,225 | ||||||
Earnings
per share:
|
||||||||||||
Basic
|
$ | 0.46 | $ | 1.33 | $ | 1.49 | ||||||
Diluted
|
$ | 0.45 | $ | 1.33 | $ | 1.48 | ||||||
Weighted
average common shares outstanding:
|
||||||||||||
Basic
|
17,648,696 | 17,789,739 | 20,328,182 | |||||||||
Diluted
|
17,665,924 | 17,838,072 | 20,406,000 | |||||||||
Dividends
declared per share
|
$ | 0.34 | $ | 0.34 | $ | 0.15 |
Additional
|
Total
|
|||||||||||||||||||||||||||
Common Stock
|
Paid-In
|
Retained
|
Treasury Stock
|
Stockholders'
|
||||||||||||||||||||||||
Shares
|
Amount
|
Capital
|
Earnings
|
Shares
|
Amount
|
Equity
|
||||||||||||||||||||||
(In
thousands, except share data)
|
||||||||||||||||||||||||||||
Balance
at December 31, 2006
|
20,867,172 | 21 | 50,979 | 30,674 | — | — | 81,674 | |||||||||||||||||||||
Net
income
|
— | — | — | 30,225 | — | — | 30,225 | |||||||||||||||||||||
Exercise
of stock options
|
121,780 | — | 91 | (56 | ) | 3,375 | 62 | 97 | ||||||||||||||||||||
Excess
tax benefit for stock options
|
— | — | 1,235 | — | — | — | 1,235 | |||||||||||||||||||||
Amortization
of unearned stock compensation
|
— | — | 1,826 | — | — | — | 1,826 | |||||||||||||||||||||
Purchase
of treasury stock, net
|
— | — | — | — | (2,414,600 | ) | (40,890 | ) | (40,890 | ) | ||||||||||||||||||
Dividends
paid
|
— | — | — | (2,997 | ) | — | — | (2,997 | ) | |||||||||||||||||||
Balance
at December 31, 2007
|
20,988,952 | 21 | 54,131 | 57,846 | (2,411,225 | ) | (40,828 | ) | 71,170 | |||||||||||||||||||
Net
income
|
— | — | — | 23,737 | — | — | 23,737 | |||||||||||||||||||||
Exercise
of stock options
|
— | — | (628 | ) | — | 42,079 | 686 | 58 | ||||||||||||||||||||
Excess
tax benefit for stock options
|
— | — | 264 | — | — | — | 264 | |||||||||||||||||||||
Amortization
of unearned stock compensation
|
— | — | 2,134 | — | — | — | 2,134 | |||||||||||||||||||||
Purchase
of treasury stock, net
|
— | — | — | — | (977,254 | ) | (14,725 | ) | (14,725 | ) | ||||||||||||||||||
Dividends
paid
|
— | — | — | (6,043 | ) | — | — | (6,043 | ) | |||||||||||||||||||
Balance
at December 31, 2008
|
20,988,952 | 21 | 55,901 | 75,540 | (3,346,400 | ) | (54,867 | ) | 76,595 | |||||||||||||||||||
Net
income
|
— | — | — | 8,032 | — | — | 8,032 | |||||||||||||||||||||
Exercise
of stock options
|
— | — | (145 | ) | — | 10,185 | 167 | 22 | ||||||||||||||||||||
Excess
tax benefit for stock options
|
— | — | 13 | — | — | — | 13 | |||||||||||||||||||||
Deferred
tax adjustment related to stock compensation
|
— | — | (53 | ) | — | — | — | (53 | ) | |||||||||||||||||||
Amortization
of unearned stock compensation
|
— | — | 2,205 | — | — | — | 2,205 | |||||||||||||||||||||
Issuance
of restricted stock awards
|
— | — | (1,312 | ) | — | 80,000 | 1,312 | — | ||||||||||||||||||||
Dividends
paid
|
— | — | — | (6,001 | ) | — | — | (6,001 | ) | |||||||||||||||||||
Balance
at December 31, 2009
|
20,988,952 | $ | 21 | $ | 56,609 | $ | 77,571 | (3,256,215 | ) | $ | (53,388 | ) | $ | 80,813 |
Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
(In
thousands)
|
||||||||||||
Operating
activities
|
||||||||||||
Net
income
|
$ | 8,032 | $ | 23,737 | $ | 30,225 | ||||||
Adjustments
to reconcile net income to net cash provided by operating
activities:
|
||||||||||||
Depreciation
and amortization
|
563 | 523 | 459 | |||||||||
Amortization
of capitalized loan costs
|
99 | 80 | 66 | |||||||||
Amortization
of unearned stock compensation
|
2,205 | 2,134 | 1,826 | |||||||||
Provision
for doubtful accounts
|
— | 214 | (238 | ) | ||||||||
Provision
for returns and allowances
|
(109 | ) | 70 | (37 | ) | |||||||
Provision
for inventory obsolescence
|
529 | 46 | 55 | |||||||||
(Gain)
loss on disposals of property and equipment
|
(15 | ) | 8 | (15 | ) | |||||||
Deferred
income taxes
|
(741 | ) | (900 | ) | (557 | ) | ||||||
Changes
in operating assets and liabilities:
|
||||||||||||
Accounts
receivable
|
4,048 | 7,120 | (5,799 | ) | ||||||||
Inventories
|
11,606 | (4,206 | ) | (13,025 | ) | |||||||
Prepaids
|
(2,820 | ) | 3 | (382 | ) | |||||||
Other
assets
|
(31 | ) | (53 | ) | (45 | ) | ||||||
Book
overdraft
|
(4,026 | ) | 1,079 | 2,589 | ||||||||
Trade
accounts payable
|
1,519 | (2,206 | ) | 1,309 | ||||||||
Accrued
and other current liabilities
|
(758 | ) | (4,861 | ) | 6,185 | |||||||
Income
taxes
|
(1,363 | ) | 3,648 | (2,524 | ) | |||||||
Net
cash provided by operating activities
|
18,738 | 26,436 | 20,092 | |||||||||
Investing
activities
|
||||||||||||
Expenditures
for property and equipment
|
(462 | ) | (572 | ) | (728 | ) | ||||||
Proceeds
from disposals of property and equipment
|
19 | 1 | 23 | |||||||||
Net
cash used in investing activities
|
(443 | ) | (571 | ) | (705 | ) | ||||||
Financing
activities
|
||||||||||||
Borrowings
on revolver
|
255,829 | 371,915 | 397,471 | |||||||||
Payments
on revolver
|
(268,158 | ) | (376,614 | ) | (375,023 | ) | ||||||
Proceeds
from exercise of stock options
|
22 | 58 | 97 | |||||||||
Payment
of dividends
|
(6,001 | ) | (6,043 | ) | (2,997 | ) | ||||||
Excess
tax benefit for options
|
13 | 264 | 1,235 | |||||||||
Purchase
of treasury stock
|
— | (15,445 | ) | (40,170 | ) | |||||||
Net
cash used in financing activities
|
(18,295 | ) | (25,865 | ) | (19,387 | ) | ||||||
Net
change in cash
|
— | — | — | |||||||||
Cash
at beginning of year
|
— | — | — | |||||||||
Cash
at end of year
|
$ | — | $ | — | $ | — | ||||||
Supplemental
disclosures
|
||||||||||||
Cash
paid during the year for interest
|
$ | 514 | $ | 1,920 | $ | 1,119 | ||||||
Cash
paid during the year for income taxes
|
$ | 7,352 | $ | 11,908 | $ | 20,148 |
Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Denominator:
|
||||||||||||
Weighted
average common shares for basic earnings per share
|
17,648,696 | 17,789,739 | 20,328,182 | |||||||||
Effect
of dilutive securities
|
17,228 | 48,333 | 77,818 | |||||||||
Denominator
for diluted earnings per share
|
17,665,924 | 17,838,072 | 20,406,000 |
2009
|
2008
|
2007
|
||||||||||
Balance
at beginning of year
|
$ | 262 | $ | 130 | $ | 490 | ||||||
Bad
debt expense
|
— | 214 | (238 | ) | ||||||||
Write-offs,
net of recoveries
|
20 | (82 | ) | (122 | ) | |||||||
Balance
at end of year
|
$ | 282 | $ | 262 | $ | 130 |
Buildings
|
30
years
|
Machinery
and equipment
|
3
to 5 years
|
At December 31,
|
||||||||
2009
|
2008
|
|||||||
Land
|
$ | 617 | $ | 617 | ||||
Buildings
|
2,209 | 2,166 | ||||||
Machinery
and equipment
|
6,109 | 6,049 | ||||||
8,935 | 8,832 | |||||||
Less
accumulated depreciation
|
5,766 | 5,558 | ||||||
$ | 3,169 | $ | 3,274 |
At December 31,
|
||||||||
2009
|
2008
|
|||||||
Customer
advances
|
$ | 3,756 | $ | 2,080 | ||||
Customer
rebates
|
1,791 | 3,304 | ||||||
Payroll,
commissions, and bonuses
|
1,271 | 1,659 | ||||||
Accrued
inventory purchases
|
1,205 | 2,093 | ||||||
Other
|
2,901 | 2,546 | ||||||
$ | 10,924 | $ | 11,682 |
2010
|
$ | — | ||
2011
|
— | |||
2012
|
— | |||
2013
|
17,479 | |||
Total
|
$ | 17,479 |
Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Current:
|
||||||||||||
Federal
|
$ | 5,307 | $ | 14,022 | $ | 16,607 | ||||||
State
|
654 | 1,700 | 2,245 | |||||||||
Total
current
|
5,961 | 15,722 | 18,852 | |||||||||
Deferred:
|
||||||||||||
Federal
|
(674 | ) | (819 | ) | (511 | ) | ||||||
State
|
(67 | ) | (81 | ) | (46 | ) | ||||||
Total
deferred
|
(741 | ) | (900 | ) | (557 | ) | ||||||
Total
|
$ | 5,220 | $ | 14,822 | $ | 18,295 |
Year Ended December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Federal
statutory rate
|
35.0 | % | 35.0 | % | 35.0 | % | ||||||
State
taxes, net of federal benefit
|
2.8 | 2.7 | 2.9 | |||||||||
Non-deductible
items
|
0.9 | 0.5 | 0.3 | |||||||||
Other
|
0.7 | 0.2 | (0.5 | ) | ||||||||
Total
effective tax rate
|
39.4 | % | 38.4 | % | 37.7 | % |
Year Ended
December 31,
|
||||||||
2009
|
2008
|
|||||||
Deferred
tax assets:
|
||||||||
Property
and equipment
|
$ | 386 | $ | 391 | ||||
Goodwill
|
148 | 339 | ||||||
Uniform
capitalization adjustment
|
634 | 543 | ||||||
Inventory
reserve
|
858 | 854 | ||||||
Allowance
for doubtful accounts
|
109 | 101 | ||||||
Stock
compensation expense
|
2,397 | 1,622 | ||||||
Other
|
99 | 94 | ||||||
Total
deferred tax assets
|
$ | 4,631 | $ | 3,944 |
Year Ended
December 31,
|
||||||||||||
2009
|
2008
|
2007
|
||||||||||
Risk-free
interest rate
|
1.00 | % | 2.51 | % | 4.53 | % | ||||||
Expected
dividend yield
|
3.29 | % | 3.21 | % | 0.25 | % | ||||||
Weighted
average expected life
|
2
years
|
5.5
years
|
5.5
years
|
|||||||||
Expected
volatility
|
81 | % | 55 | % | 45 | % |
2009
|
||||||||||||
Options
(in 000’s)
|
Weighted
Average
Exercise Price
|
Aggregate
Intrinsic
Value
|
||||||||||
Outstanding—Beginning
of year
|
1,178 | $ | 18.99 | $ | 465 | |||||||
Granted
|
35 | 4.04 | ||||||||||
Exercised
|
(10 | ) | 2.20 | |||||||||
Forfeitures
|
(8 | ) | (17.51 | ) | ||||||||
Expired
|
— | — | ||||||||||
Outstanding—End
of year
|
1,195 | $ | 18.93 | $ | 1,146 | |||||||
Exercisable—End
of year
|
300 | $ | 7.16 | $ | 456 | |||||||
Weighted
average fair value of options granted during 2009
|
$ | 4.04 | ||||||||||
Weighted
average fair value of options granted during 2008
|
$ | 5.24 | ||||||||||
Weighted
average fair value of options granted during 2007
|
$ | 11.53 |
Exercise Prices
|
Outstanding
as of
12/31/09
(in 000’s)
|
Weighted
Average
Remaining
Contractual
Life
|
Exercisable
as of 12/31/09
(in 000’s)
|
Weighted
Average
Remaining
Contractual
Life
|
||||||||||
$ |
0.53
|
9
|
2.02 | 9 | 2.02 | |||||||||
$ |
2.67
|
46
|
6.00 | 30 | 6.00 | |||||||||
$ |
9.27
|
215 | 8.96 | 30 | 8.96 | |||||||||
$ |
10.32
|
35 | 9.35 | — | — | |||||||||
$ |
11.99
|
65 | 8.02 | — | — | |||||||||
$ |
13.00
|
15 | 6.47 | 15 | 6.47 | |||||||||
$ |
15.40
|
70 | 7.96 | 28 | 7.96 | |||||||||
$ |
16.98
|
30 | 6.55 | 30 | 6.55 | |||||||||
$ |
17.36
|
45 | 8.35 | 45 | 8.35 | |||||||||
$ |
17.98
|
15 | 6.61 | 15 | 6.61 | |||||||||
$ |
21.73
|
130 | 6.97 | 78 | 6.97 | |||||||||
$ |
26.19
|
500 | 7.19 | — | — | |||||||||
$ |
30.25
|
20 | 7.33 | 20 | 7.33 | |||||||||
1,195
|
7.57
|
300
|
7.16
|
2009
|
||||||||
Shares
(in 000’s)
|
Weighted Average
Market Value at
Grant Date
|
|||||||
Non-vested
—Beginning of year
|
—
|
$ |
—
|
|||||
Granted
|
80
|
12.20
|
||||||
Vested
|
—
|
—
|
||||||
Cancelled/Forfeitures
|
—
|
—
|
||||||
Non-vested
—End of year
|
80
|
$ |
12.20
|
2010
|
$ | 2,469 | ||
2011
|
2,332 | |||
2012
|
1,820 | |||
2013
|
1,332 | |||
2014
|
953 | |||
Thereafter
|
210 | |||
Total
minimum lease payments
|
$ | 9,116 |
Year Ended December 31, 2009
|
||||||||||||||||
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
|||||||||||||
(in thousands, except per share data)
|
||||||||||||||||
Sales
|
$ | 63,526 | $ | 63,579 | $ | 61,882 | $ | 65,832 | ||||||||
Gross
profit
|
$ | 12,707 | $ | 13,462 | $ | 12,972 | $ | 13,813 | ||||||||
Operating
income
|
$ | 3,355 | $ | 3,786 | $ | 3,118 | $ | 3,513 | ||||||||
Net
income
|
$ | 1,882 | $ | 2,241 | $ | 1,845 | $ | 2,064 | ||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ | 0.11 | $ | 0.13 | $ | 0.10 | $ | 0.12 | ||||||||
Diluted
|
$ | 0.11 | $ | 0.13 | $ | 0.10 | $ | 0.12 |
Year Ended December 31,
2008
|
||||||||||||||||
Fourth
Quarter
|
Third
Quarter
|
Second
Quarter
|
First
Quarter
|
|||||||||||||
(in
thousands, except per share data)
|
||||||||||||||||
Sales
|
$ | 75,260 | $ | 98,854 | $ | 97,384 | $ | 89,441 | ||||||||
Gross
profit
|
$ | 16,177 | $ | 22,640 | $ | 24,231 | $ | 22,667 | ||||||||
Operating
income
|
$ | 4,855 | $ | 11,043 | $ | 13,006 | $ | 11,480 | ||||||||
Net
income
|
$ | 2,680 | $ | 6,575 | $ | 7,745 | $ | 6,737 | ||||||||
Earnings
per share:
|
||||||||||||||||
Basic
|
$ | 0.15 | $ | 0.37 | $ | 0.44 | $ | 0.37 | ||||||||
Diluted
|
$ | 0.15 | $ | 0.37 | $ | 0.44 | $ | 0.37 |
/s/ Charles A. Sorrentino
|
/s/ Nicol G. Graham
|
|
Charles
A. Sorrentino
|
Nicol
G. Graham
|
|
President
and Chief Executive Officer
|
Chief
Financial Officer, Treasurer
|
|
and
Secretary (Chief Accounting
Officer)
|
/s/
Ernst & Young LLP
|
|
Houston,
Texas
|
|
March
15, 2010
|
(a)
|
The
following financial statements of our Company and Report of the
Independent Registered Public Accounting Firm are included in Part
II:
|
|
·
|
Report
of Independent Registered Public Accounting
Firm
|
|
·
|
Consolidated
Balance Sheets as of December 31, 2009 and
2008
|
|
·
|
Consolidated
Statements of Income for the years ended December 31, 2009, 2008 and
2007
|
|
·
|
Consolidated
Statements of Stockholders’ Equity for the years ended December 31, 2009,
2008 and 2007
|
|
·
|
Consolidated
Statements of Cash Flows for the years ended December 31, 2009, 2008 and
2007
|
|
·
|
Notes
to Consolidated Financial
Statements
|
(b)
|
Financial
Statement Schedules:
|
(c)
|
Exhibits
|
HOUSTON
WIRE & CABLE COMPANY
(Registrant)
|
||
Date:
March 15, 2010
|
By:
|
/s/
NICOL G. GRAHAM
|
Nicol
G. Graham
Chief
Financial Officer, Treasurer and
Secretary
|
SIGNATURE
|
TITLE
|
DATE
|
||
/s/
CHARLES A. SORRENTINO
|
President,
Chief Executive Officer and Director
|
March
15, 2010
|
||
Charles A.
Sorrentino
|
||||
/s/
NICOL G. GRAHAM
|
Chief
Financial Officer, Treasurer and
Secretary
(Chief Accounting Officer)
|
March
15, 2010
|
||
Nicol G.
Graham
|
||||
/s/
PETER M. GOTSCH
|
Director
|
March
15, 2010
|
||
Peter M.
Gotsch
|
||||
/s/
IAN STEWART FARWELL
|
Director
|
March
15, 2010
|
||
Ian
Stewart Farwell
|
||||
/s/
WILLIAM H. SHEFFIELD
|
Director
|
March
15, 2010
|
||
William
H. Sheffield
|
||||
/s/
SCOTT L. THOMPSON
|
Director
|
March
15, 2010
|
||
Scott
L. Thompson
|
||||
/s/
WILSON B. SEXTON
|
Director
|
March
15, 2010
|
||
Wilson B.
Sexton
|
||||
/s/
MICHAEL T. CAMPBELL
|
Director
|
March
15, 2010
|
||
Michael
T. Campbell
|
EXHIBIT
NUMBER
|
EXHIBIT
|
|
3.1
|
Amended
and Restated Certificate of Incorporation of Houston Wire & Cable
Company (incorporated herein by reference to Exhibit 3.1 to Houston Wire
& Cable Company’s Registration Statement on Form S-1 (Registration No.
333-132703))
|
|
3.2
|
By-Laws
of Houston Wire & Cable Company (incorporated herein by reference
to Exhibit 3.2 to Houston Wire & Cable Company’s Registration Current
Report on Form 8-K filed August 6, 2007)
|
|
4.1
|
Rights
Agreement dated as of May 18, 2009, between Houston Wire & Cable
Company and American Stock Tranfer & Trust Company, LLC (incorporated
herein by reference to Exhibit 4.1 to Houston Wire & Cable Company’s
Current Report on Form 8-K filed on May 19, 2009)
|
|
10.1
|
Houston
Wire & Cable Company 2000 Stock Plan (incorporated herein by
reference to Exhibit 10.2 to Houston Wire & Cable Company’s
Registration Statement on Form S-1 (Registration No.
333-132703))
|
|
10.2
|
Houston
Wire & Cable Company 2006 Stock Plan (incorporated herein by
reference to Exhibit 10.3 to Houston Wire & Cable Company’s
Registration Statement on Form S-1 (Registration No.
333-132703))
|
|
10.18
|
Employment
Agreement, dated as of April 26, 2006, by and between Charles A.
Sorrentino and Houston Wire & Cable Company (incorporated herein
by reference to Exhibit 10.14 to Houston Wire & Cable Company’s
Registration Statement on Form S-1 (Registration No.
333-132703))
|
|
10.23
|
Form
of Employee Stock Option Agreement under Houston Wire & Cable
Company’s 2006 Stock Plan (incorporated herein by reference to Exhibit
10.17 to Houston Wire & Cable Company’s Annual Report on Form 10-K for
the year ended December 31, 2007)
|
|
10.24
|
Form
of Director Stock Option Agreement under Houston Wire & Cable
Company’s 2006 Stock Plan (incorporated herein by reference to Exhibit
10.17 to Houston Wire & Cable Company’s Annual Report on Form 10-K for
the year ended December 31, 2007)
|
|
10.25
|
Description
of Senior Management Bonus Program (incorporated herein by reference to
Exhibit 10.3 to Houston Wire & Cable Company’s Current Report on Form
8-K filed December 27, 2006)
|
|
10.26
|
Form
of Director/Officer Indemnification Agreement by and between Houston Wire
& Cable Company and a director, member of a committee of the Board of
Directors or officer of Houston Wire & Cable Company (incorporated
herein by reference to Exhibit 10.24 to Houston Wire & Cable Company’s
Annual Report on Form 10-K for the year ended December 31,
2006)
|
|
10.27
|
Second
Amended and Restated Loan and Security Agreement, dated as of September
21, 2009 (incorporated herein by reference to Exhibit 10.1 to Houston Wire
& Cable Company’s Current Report on Form 8-K filed September 24,
2009)
|
|
21.1
|
Subsidiaries
of Houston Wire & Cable Company (incorporated herein by reference
to Exhibit 21.1 to Houston Wire & Cable Company’s Registration
Statement on Form S-1 (Registration No. 333-132703))
|
|
23.1*
|
Consent
of Ernst & Young, LLP
|
|
31.1*
|
Certification
of CEO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
31.2*
|
Certification
of CFO Pursuant to Section 302 of the Sarbanes-Oxley Act of
2002
|
|
32.1*
|
Certifications
of CEO and CFO pursuant to 18 U.S.C. Section 1350, as adopted pursuant to
Section 906 of the Sarbanes-Oxley Act of
2002
|