Black Box Corporation Reports First Quarter of Fiscal 2014 Results

Black Box Corporation Reports First Quarter of Fiscal 2014 Results

- Generates $21 million in cash flow from operations on a 16% increase in net income -

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 first quarter of Fiscal 2014.

1Q14 Results

• Revenues were $246.9 million, consistent with $247.8 million for the same period last year and up 4% from $237.7 million in the sequential period.

• Net income was $6.9 million, up 16% from $5.9 million for the same period last year and down 4% from $7.2 million in the sequential period.

• Diluted EPS was $0.43, up 25% from $0.34 for the same period last year and down 4% from $0.44 in the sequential period.

• Operating net income* was $8.7 million, down 10% from $9.7 million for the same period last year and down 20% from $10.9 million in the sequential period.

• Operating EPS* was $0.54, down 4% from $0.56 for the same period last year and down 19% from $0.67 in the sequential period.

• Cash flow from operations was $20.5 million, up 710% from cash flow used by operations of $3.4 million for the same period last year and up 29% from $16.0 million in the sequential period.

• We returned $8.1 million to our shareholders by repurchasing $6.8 million of common stock and paying $1.3 million in dividends.

* 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.

Commenting on the first quarter of Fiscal 2014 results, Michael McAndrew, President and Chief Executive Officer, said, "I am pleased with our solid financial results in the first quarter. In particular, execution of our business model continues to generate positive cash flow from operations which enabled us to repurchase stock, pay dividends and reduce our net debt position. The strong balance sheet that we have built is an important foundation for our future growth."

"In addition, I am encouraged by our progress on the organizational changes and growth programs that we initiated over the last six months. I expect financial impact from these initiatives in the second half of this fiscal year."

Guidance

For the second quarter of Fiscal 2014, the Company is targeting:

• Revenues in the range of $244 million to $249 million.

• Operating earnings per share in the range of $0.60 to $0.65.

For Fiscal 2014, the Company is targeting:

• Revenues in the range of $1.00 billion to $1.02 billion.

• Operating earnings per share in the range of $2.70 to $2.90.

Included in these targets is an effective tax rate of 39.5%. 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.

Earnings Conference Call

The Company will conduct a conference call beginning at 5:00 p.m. Eastern Daylight Time today, July 30, 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 297222. 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.

About Black Box

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, 2013. 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.