CAMDEN, N.Y.–(BUSINESS WIRE)–International Wire Group Holdings, Inc. (“the Company”) (OTC Pink: ITWG) today announced results for the second quarter and for the six months ended June 30, 2016. Operating income and net income decreased for the three and six months ended June 30, 2016 against the three and six months ended June 30, 2015.

“Second quarter and first six months results reflect challenging demand in our largest markets served. Sales to our largest U.S. industrial and energy customers weakened in the second quarter, slightly offset by improved European industrial sales. In the automotive sector, light vehicle demand held steady, but year over year sales volumes decreased as a result of increased competitive capacity supplying the Mexican automotive market and very weak commercial vehicle demand. Medical products order rates improved significantly compared to the first quarter, while demand for standard aerospace products sold through distribution softened in the quarter. Electronics product sales were bolstered by a successful customer de-integration project,” said Edwin J. Flynn, Chief Executive Officer of International Wire Group Holdings, Inc.

As previously announced, on July 26, 2016 subsequent to the end of the second quarter, the Company’s wholly owned subsidiary, International Wire Group, Inc. (“IWG”), issued $260 million of its 10.750% Senior Secured Notes due 2021 and amended its revolving credit facility to, among other things, decrease the maximum permitted borrowings from $175 million to $125 million. The Company used the proceeds of this financing to repurchase all of its outstanding 10.00%/12.00% Senior PIK Toggle Notes due 2020 and to redeem all of IWG’s outstanding 8.500% Senior Secured Notes due 2017. Please refer to Note 10 in the 2016 second quarter financial statements for additional information.

Second Quarter Results

Net sales for the quarter ended June 30, 2016 were $137.1 million, a decrease of $35.3 million, or 20.5%, compared to $172.4 million for the same period in 2015. This decrease was partly due to a lower selling price of copper partially offset by a lower proportion of tolled copper. Tolled copper is customer-owned copper. The value of tolled copper is not included in net sales and costs of sales. Excluding the effects of lower copper prices and a lower proportion of tolled copper, net sales decreased $17.5 million, or 11.3%, versus the same period in 2015. This decrease resulted from $16.6 million of lower sales volume and $1.2 million of lower customer pricing/mix, partially offset by $0.3 million from the effects of favorable foreign currency exchange rates. Total pounds of product sold in the second quarter of 2015 decreased by 12.4% compared to the second quarter of 2015.

Operating income for the three months ended June 30, 2016 was $7.1 million compared to $11.3 million for the three months ended June 30, 2015, a decrease of $4.2 million, or 37.2%, primarily from lower sales volume, lower LIFO/copper profits and less favorable plant utilization, partially offset by higher silver profits and lower selling, general and administrative expenses.

Net income of $0.4 million for the three months ended June 30, 2016 decreased by $2.5 million from net income of $2.9 million for the three months ended June 30, 2015. The decrease was due primarily to lower operating income partially offset by a lower income tax provision.

Net income per basic share of $0.08 for the three months ended June 30, 2016 decreased by $0.54 from the 2015 period net income of $0.62 per basic share. Net income per diluted share of $0.08 for the three months ended June 30, 2016 decreased by $0.53 from the 2015 period net income of $0.61 per diluted share.

The decrease in net income per basic share resulted from lower net income, partially offset by a decrease in outstanding shares in the 2016 period compared to the 2015 period due to the repurchase of common stock since the 2015 period. The decrease in net income per diluted share resulted from lower net income, partially offset by a decrease in the number of outstanding shares and stock options in the 2016 period compared to the 2015.

Six Months Results

Net sales for the six months ended June 30, 2016 were $276.7 million, a decrease of $73.3 million, or 20.9%, compared to 2015 period sales of $350.0 million. This decrease was partly due to a lower selling price of copper partially offset by a lower proportion of tolled copper. Tolled copper is customer-owned copper. The value of tolled copper is not included in net sales and costs of sales. Excluding the effects of lower copper prices and a lower proportion of tolled copper, net sales decreased $36.0 million, or 11.5%, versus the prior year. This decrease resulted from $32.1 million of lower sales volume and $3.9 million of lower customer pricing/mix. Total pounds of product sold in the first six months of 2016 decreased by 12.0% compared to the first six months of 2015.

Operating income for the six months ended June 30, 2016 was $16.7 million compared to $23.9 million for the same period in 2015, a decrease of $7.2 million, or 30.1%, primarily from lower sales volume, lower LIFO/copper profits, less favorable plant utilization and higher selling, general and administrative expenses.

Net income of $2.4 million was lower than net income of $7.3 million in the 2015 period, primarily from lower operating income partially offset by a lower income tax provision.

Net income per basic share of $0.52 for the six months ended June 30, 2016 decreased by $0.91 from the 2015 period net income of $1.43 per basic share. Net income per diluted share of $0.52 for the six months ended June 30, 2016 decreased by $0.89 from the 2015 period net income of $1.41 per diluted share.

The decrease in net income per basic share resulted from lower net income, partially offset by a decrease in outstanding shares in the 2016 period compared to the 2015 period due to the repurchase of common stock since the 2015 period. The decrease in net income per diluted share resulted from lower net income, partially offset by a decrease in the number of outstanding shares and stock options in the 2016 period compared to the 2015.

Net debt (total debt less cash) was $256.0 million as of June 30, 2016, a $2.5 million increase from December 31, 2015 primarily from higher inventory, partially offset by higher accounts payable.

Non-GAAP Results and Net Debt

In an effort to better assist investors and noteholders in understanding the Company’s financial results, as part of this release, the Company is also providing Adjusted EBITDA which is a measure not defined under accounting principles generally accepted in the United States (GAAP). Adjusted EBITDA is net income excluding interest expense, income tax provision, depreciation and amortization expense, amortization of deferred financing costs, stock-based compensation expense, impairment charges, gain/loss on sale of property, plant and equipment, loss on early extinguishment of debt and extraordinary non-recurring gains and losses. Management uses Adjusted EBITDA as a measure in evaluating the performance of our business. Other companies may define Adjusted EBITDA differently. As a result, our measures of Adjusted EBITDA may not be directly comparable to measures used by other companies. Below is a reconciliation of this non-GAAP financial measure to Net income, the most directly comparable financial measures calculated and presented in accordance with GAAP. Net debt as of June 30, 2016 and December 31, 2015 is also presented below. In $ millions:

Additional financial information will be made available on or about August 5, 2016 through the Company’s investor website (http://itwg.client.shareholder.com or http://www.internationalwiregroup.com) in the section titled “Financial Information.”

About International Wire Group Holdings, Inc.

International Wire Group Holdings, Inc., through its subsidiaries, is a manufacturer and marketer of wire products, including bare, silver-plated, nickel-plated and tin-plated copper wire, engineered wire products and high performance conductors, for other wire suppliers, distributors and original equipment manufacturers. Its products include a broad spectrum of copper wire configurations and gauges with a variety of electrical and conductive characteristics and are utilized by a wide variety of customers primarily in the aerospace, automotive/specialty vehicles, consumer and appliance, electronics and data communications, industrial and energy and medical products industries. The Company has eighteen manufacturing facilities and one distribution facility located in the United States, France, Italy and Poland.

Forward-Looking Information is Subject to Risk and Uncertainty

Certain statements in this release may constitute “forward-looking” statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include all statements that are not historical facts and can be identified by the use of forward-looking terminology such as the words “expect,” “may,” “will,” or the negative of any thereof or other variations thereof or comparable terminology, or by discussions of strategy or intentions. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions as to future events that may not prove to be accurate. Actual outcomes and results may differ materially from what is expressed or forecasted in these forward-looking statements. These statements are based on management’s beliefs and assumptions and on information currently available to management as of the date they were made and we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. Many important factors could cause our results to differ materially from those expressed in forward-looking statements. These factors include, but are not limited to, fluctuations in our operating results and customer orders, unexpected decreases in demand or increases in inventory levels, changes in the price of copper, tin, nickel and silver, the competitive environment, our reliance on our significant customers, lack of long-term contracts, substantial dependence on business outside of the U.S. and changes in exchange rates and risks associated with our international operations, limitations due to our indebtedness, loss of key employees or the deterioration in our relationship with employees, litigation, claims, liability from environmental laws and regulations and other factors.

For additional information regarding the factors that may cause our actual results to differ from those expected by our forward-looking statements, see “Risk Factors” in the Company’s 2015 financial report. This report is accessible on the “Financial Information” page on the Investor Relations portion of the Company’s website, available at http://itwg.client.shareholder.com or http://www.internationalwiregroup.com.

ITWG-G