Black Box Corporation Reports Fourth Quarter of Fiscal 2013 Results

Black Box Corporation Reports Fourth Quarter of Fiscal 2013 Results

PITTSBURGH--(BUSINESS WIRE)-- Black Box Corporation (NAS: BBOX) , a leading communications system integrator dedicated to designing, sourcing, implementing and maintaining today's complex communications solutions, today reported results for the fourth quarter of Fiscal 2013 and the fiscal year ended March 31, 2013.

Fourth quarter of Fiscal 2013 diluted earnings per share was 44¢ on net income of $7.2 million or 3.0% of revenues compared to diluted earnings per share of 64¢ on net income of $11.2 million or 4.4% of revenues for the same quarter last year. On a sequential quarter comparison basis, third quarter of Fiscal 2013 diluted earnings per share was 52¢ on net income of $8.5 million or 3.4% of revenues. Operating earnings per share (which is a non-GAAP term and is defined below) for the fourth quarter of Fiscal 2013 was 67¢ on operating net income (which is a non-GAAP term and is defined below) of $10.9 million or 4.6% of revenues compared to operating earnings per share of 65¢ on operating net income of $11.4 million or 4.4% of revenues for the same quarter last year. See the information under the caption "Non-GAAP Financial Measures" below for a discussion regarding the usefulness of the non-GAAP financial measures contained in this release, definitions of those non-GAAP financial measures and reconciliations to their most directly comparable GAAP financial measures.

Fourth quarter of Fiscal 2013 total revenues were $238 million, a decrease of 7% from $256 million for the same quarter last year. On a sequential quarter comparison basis, third quarter of Fiscal 2013 total revenues were $252 million.

Fourth quarter of Fiscal 2013 cash provided by operating activities was $16 million or 221% of net income, compared to cash provided by operating activities of $22 million or 195% of net income for the same quarter last year. Fourth quarter of Fiscal 2013 free cash flow (which is a non-GAAP term and is defined below) was $13 million compared to $20 million for the same quarter last year. On a sequential quarter comparison basis, third quarter of Fiscal 2013 cash provided by operating activities was $16 million or 191% of net income and free cash flow was $15 million. During the fourth quarter of Fiscal 2013, Black Box invested $4 million to repurchase common stock and $1 million to pay dividends.

Fiscal 2013 diluted earnings per share was $1.73 on net income of $28.8 million or 2.9% of revenues compared to diluted loss per share of $13.98 on net loss of $247.7 million or (22.8)% of revenues for the same period last year. Fiscal 2013 operating earnings was $2.67 on operating net income of $44.6 million or 4.5% of revenues compared to operating earnings per share of $3.03 on operating net income of $54.0 million or 5.0% of revenues for the same period last year.

Fiscal 2013 total revenues were $998 million, a decrease of 8% from $1,088 million for the same period last year.

Fiscal 2013 cash provided by operating activities was $47 million or 162% of net income, compared to cash provided by operating activities of $66 million or (27)% of net loss for the same period last year. Fiscal 2013 free cash flow was $40 million compared to $56 million for the same period last year. During Fiscal 2013, Black Box invested $37 million to repurchase common stock and $5 million to pay dividends.

The Company's six-month order backlog was $201 million at March 31, 2013, compared to $199 million for the same quarter last year. On a sequential quarter-end comparison basis, the Company's six-month order backlog was $188 million at December 29, 2012.

For Fiscal 2014, the Company is targeting reported revenues of approximately $1.00 billion to $1.02 billion and corresponding operating earnings per share in the range of $2.70 to $2.90. Included in these projections is an effective tax rate of 39.5%. For the first quarter of Fiscal 2014, the Company is targeting reported revenues of approximately $238 million to $243 million and corresponding operating earnings per share in the range of 53¢ to 58¢. These targets exclude intangibles amortization and the impact of changes in the fair market value of the Company's interest-rate swaps, and are before any new mergers and acquisition activity that has not been announced.

Commenting on the fourth quarter of Fiscal 2013 results, Michael McAndrew, President and Chief Executive Officer, said, "Our results from the fourth quarter and Fiscal 2013 reflect both the challenges and opportunities in the markets that we serve. We continue to experience top line revenue pressure however, pricing has stabilized and our business model continues to generate significant positive operating cash flow.

"As we enter Fiscal 2014, I am confident that the programs we are putting in place will allow us to grow share in our existing markets while profitably expanding into new markets. Through execution of these programs, I expect Black Box to deliver organic revenue growth while continuing to generate significant operating cash flow in the new fiscal year."

The Company will conduct a conference call beginning at 5:00 p.m. Eastern Daylight Time today, May 9, 2013. Michael McAndrew, President and Chief Executive Officer, will host the call. To participate in the call, please dial 612-332-0107 approximately 15 minutes prior to the starting time and ask to be connected to the Black Box Earnings Call. A replay of the conference call will be available for one week after the teleconference by dialing 320-365-3844 and using access code 287111. A live, listen-only audio webcast of the call will be available through a link on the Investor Relations page of the Company's Web site at http://www.blackbox.com. A webcast replay of the call will also be archived on Black Box's Web site for a limited period of time following the conference call.

Black Box is a leading communications system integrator dedicated to designing, sourcing, implementing and maintaining today's complex communications solutions. Black Box services more than 175,000 clients in approximately 150 countries with approximately 200 offices throughout the world. To learn more, visit the Black Box Web site at http://www.blackbox.com.

Black Box^® and the Double Diamond logo are registered trademarks of BB Technologies, Inc.

Any forward-looking statements contained in this release are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995 and speak only as of the date of this release. You can identify these forward-looking statements by the fact that they use words such as "should," "anticipate," "estimate," "approximate," "expect," "target," "may," "will," "project," "intend," "plan," "believe" and other words of similar meaning and expression in connection with any discussion of future operating or financial performance. One can also identify forward-looking statements by the fact that they do not relate strictly to historical or current facts. Forward-looking statements are inherently subject to a variety of risks and uncertainties that could cause actual results to differ materially from those projected. Although it is not possible to predict or identify all risk factors, they may include levels of business activity and operating expenses, expenses relating to corporate compliance requirements, cash flows, global economic and business conditions, successful integration of acquisitions, the timing and costs of restructuring programs, successful marketing of the Company's product and services offerings, successful implementation of the Company's M&A program, including identifying appropriate targets, consummating transactions and successfully integrating the businesses, successful implementation of our government contracting programs, competition, changes in foreign, political and economic conditions, fluctuating foreign currencies compared to the U.S. dollar, rapid changes in technologies, client preferences, the Company's arrangements with suppliers of voice equipment and technology, government budgetary constraints and various other matters, many of which are beyond the Company's control. Additional risk factors are included in the Company's Annual Report on Form 10-K for the fiscal year ended March 31, 2012. We can give no assurance that any goal, plan or target set forth in forward-looking statements will be achieved and readers are cautioned not to place undue reliance on such statements, which speak only as of the date made. We undertake no obligation to release publicly any revisions to forward-looking statements as a result of future events or developments and caution you not to unduly rely on any such forward-looking statements.