Slide 1: Annual Meeting of Shareholders
OPTICAL CABLE CORPORATION (OCC) Annual Meeting of Shareholders Neil Wilkin President & CEO March 27, 2012 Green Ridge Recreation Center Roanoke, Virginia
Slide 2: Forward Looking Information
Forward Looking Information This presentation may contain —forward looking that involve risks and uncertainties. These statements reflect management’s current expectations about possible future events and performance. Actual future results may differ materially due to a number of factors, including
Slide 3: Agenda
Agenda •Accomplishments in 2011. •Looking Forward to 2012. •Creating Shareholder Value. •New at OCC!
Slide 4: Review of 2011
Review of 2011
Slide 5: FY 2011 Financial Achievements
FY 2011 Financial Achievements •Grew Net Sales – 8.6% to $73.3 million—highest in OCC’s history. •Increased Gross Profit – 10.7% to $26.3 million, with gross profit margin of 35.8%. •Improved Profitability – EPS of 11 cents.
Slide 6: FY 2011 Financial Achievements
FY 2011 Financial Achievements •Strong Operating Cash Flow – $2.4 million—continuing track record of generating annual positive operating cash flow since 2001 (excluding $58,000 used in 2006). •Reduced Bank Debt – Paid down $878,000 during year.
Slide 7: Consolidated Net Sales by Quarter (FY 2009 through FY 2011)
Consolidated Net Sales—by Quarter (FY 2009 through FY 2011) (in thousands $) $18,779 $18,775 $19,667 $19,000 $18,464 $17,713 $18,000 $17,184 $17,000 $16,000 $15,256 $15,007 $15,000 $14,958 $15,343 $14,207 $14,080 $14,000 $13,000 $12,000 $11,000 $10,000 $9,000 2 3 4 Quarter 2009 2010 2011
Slide 8: Looking Forward to 2012
Looking Forward to 2012
Slide 9: First Quarter Fiscal 2012
Looking Forward to 2012 First Quarter fiscal 2012: •Net Sales of $17.3 million in Q1 2012. •Gross Profit of $6.2 million in Q1 2012. •EPS of 3 cents per share.
Slide 10: Looking Forward to 2012: Backlog
Looking Forward to 2012 •Typical Backlog/Forward Load $4 to $5 million (or 3 to 4 weeks). •Backlog/Forward Load of $7.2 million at end of February 2012 (or 5 weeks).
Slide 11: Backlog/Forward Load Q1 2011 – February 2012
Looking Forward to 2012 Backlog/Forward Load Q1 2011 – February 2012 $8.0 $7.5 $7.0 $6.7 $6.5 $7.2 $6.0 $5.5 $5.5 Millions $5.0 $4.9 In $4.5 $4.0 $3.5 $4.0 $4.3 $3.0 Q1-11 Q2-11 Q3-11 Q4-11 Q1-12 Quarter Feb-12
Slide 12: Looking Forward to 2012: Outlook
Looking Forward to 2012 •We believe this will have a positive impact on net sales and earnings in Q2 2012. •At this time, we also believe FY 2012 net sales and earnings will be higher than in FY 2011.
Slide 13: Creating Shareholder Value
Creating Shareholder Value
Slide 14: Creating Shareholder Value: Dividends
Creating Shareholder Value •Cash Dividends to Shareholders – 4 cents per share declared in FY 2011, $409,000 declared and paid to shareholders since dividend initiated in October 2010. •Increased Dividend 50% – Board increased dividend in January 2012 with implied annual rate of 6 cents per share cl
Slide 15: Creating Shareholder Value: Share Repurchases
Creating Shareholder Value •Purchased and Retired Shares – Returned $846,000 to shareholders during FY 2011 by purchasing 183,025 shares, completing plan to purchase and retire 325,848 shares.
Slide 16: Creating Shareholder Value: Total Shareholder Return
Creating Shareholder Value •13.8% Total Shareholder Return – during FY 2011 calculated using stock appreciation plus dividends paid. •OCC Return Beating Major Indexes – during FY 2011, and favorably competing through current month and over longer period.
Slide 17: Comparison of Cumulative Return, Nov 2010 to Oct 2011
Comparison of Cumulative Return of OCC, Russell 2000 Index, DJIA, and S&P 500 November 1, 2010 to October 31, 2011 (Assumes Initial Investment of $100, including OCC dividends) 210.00 190.00 170.00 OCC Russell DJIA 190.00 S&P 500 170.00 $ ) 150.00 ( Value 130.00 110.00 90.00 70.00 Nov-10 Dec-10 Jan-
Slide 18: Comparison of Cumulative Return, Nov 2010 to March 2012
Comparison of Cumulative Return of OCC, Russell 2000 Index, DJIA, and S&P 500 November 1, 2010 to March 23, 2012 (Assumes Initial Investment of $100, including OCC dividends) 210.00 190.00 OCC Russell 190. 00 DJIA 170.00 ) ( $ 150.00 Value 130.00 110.00 90.00 70.00 Nov-10 Dec-10 Jan-11 Feb-11 Mar-11
Slide 19: Comparison of Cumulative Return, Oct 2002 to Feb 2012
Comparison of Cumulative Return of OCC, Russell 2000 Index, DJIA, and S&P 500 October 31, 2002—February 29, 2012 (Assumes Initial Investment of $100, including OCC dividends) Value ($) $ $ $ $ $ $ $ $ $ $ . 50 100 . . 150 200 . . 250 300 . . 350 . 400 450 . - 00 00 00 00 00 00 00 00 00 Oct-02 Jan-03
Slide 20: Value Relative to Share Price
Value Relative to Share Price •Net Book Value Exceeds Current Share Price – $4.55 per share NBV at January 31, 2012 (NBV attributable to OCC). •Net Working Capital Exceeds Current Share Price – $3.80 per share NWC at January 31, 2012.
Slide 21: New at OCC
OPTICAL CABLE CORPORATION New at OCC®
Slide 22: New at OCC
New at OCC
Slide 23: New at OCC
New at OCC
Slide 24: New at OCC
New at OCC
Slide 25: New OCC Product Catalog
New OCC® Product Catalog OCC
Slide 26: iTunes App
iTunes App know about our complete line of Category 5e, Category 6, 6A copper cable?
Slide 27: Google Play (formerly Android Market)
Google play (formerly Android Market)
Slide 28: Continued Focus
Continued Focus •New Product Development. •Growing Sales with New Products and New Customers – Maximizing Operating Leverage. •Controling costs.
Slide 29: Annual Meeting of Shareholders
OPTICAL CABLE CORPORATION (OCC) Annual Meeting of Shareholders Neil Wilkin President & CEO March 27, 2012 Green Ridge Recreation Center Roanoke, Virginia