Filed Pursuant to Rule 424(b)(3)
File
No. 333-138750
SUPPLEMENT
TO PROSPECTUS
16,786,895 Shares
Common Stock
This Supplement to the Prospectus, dated May 9, 2007 (this
“Supplement”), supplements and amends the Prospectus,
dated February 28, 2007 (the “Prospectus”),
relating to the Common Stock of Coleman Cable, Inc. (the
“Company”). This Supplement should be read in
conjunction with the Prospectus.
The Prospectus is hereby supplemented as follows:
On May 9, 2007, the Company filed its Report on
Form 10-Q for the quarter ended March 31, 2007. The
10-Q Report includes consolidated financial statements for the
quarter ended March 31, 2007. Summary 2007 first quarter
financial results are as follows: net sales,
$109.4 million; operating income, $7.6 million; net
income, $2.8 million; and earnings per share, $0.17.
Financial data for our business segments is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended March 31,
|
|
|
|
2006
|
|
|
2007
|
|
|
|
Amount
|
|
|
|
|
|
%
|
|
|
Amount
|
|
|
|
|
|
%
|
|
|
|
(In thousands)
|
|
|
Net sales:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical/Wire and Cable
Distributors
|
|
$
|
32,013
|
|
|
|
|
|
|
|
35.3
|
%
|
|
$
|
35,682
|
|
|
|
|
|
|
|
32.6
|
%
|
Specialty Distributors and OEMs
|
|
|
48,844
|
|
|
|
|
|
|
|
53.8
|
|
|
|
55,569
|
|
|
|
|
|
|
|
50.8
|
|
Consumer Outlets
|
|
|
9,941
|
|
|
|
|
|
|
|
10.9
|
|
|
|
18,145
|
|
|
|
|
|
|
|
16.6
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
90,798
|
|
|
|
|
|
|
|
100.0
|
%
|
|
$
|
109,396
|
|
|
|
|
|
|
|
100.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Electrical/Wire and Cable
Distributors
|
|
$
|
4,959
|
|
|
|
|
|
|
|
15.5
|
%
|
|
$
|
2,762
|
|
|
|
|
|
|
|
7.7
|
%
|
Specialty Distributors and OEMs
|
|
|
5,708
|
|
|
|
|
|
|
|
11.7
|
|
|
|
4,321
|
|
|
|
|
|
|
|
7.8
|
|
Consumer Outlets
|
|
|
106
|
|
|
|
|
|
|
|
1.1
|
|
|
|
1,990
|
|
|
|
|
|
|
|
11.0
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
10,773
|
|
|
|
|
|
|
|
|
|
|
|
9,073
|
|
|
|
|
|
|
|
|
|
Corporate
|
|
|
(946
|
)
|
|
|
|
|
|
|
|
|
|
|
(1,431
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated operating income
|
|
$
|
9,827
|
|
|
|
|
|
|
|
10.8
|
%
|
|
$
|
7,642
|
|
|
|
|
|
|
|
7.0
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three
Months Ended March 31, 2007 Compared with Three Months
Ended March 31, 2006
Electrical/Wire
and Cable Distributors
Net sales for our electrical/wire and cable distributors segment
for the three months ended March 31, 2007 were
$35.7 million compared to $32.0 million for the three
months ended March 31, 2006, an increase of
$3.7 million or 11.6%. This increase was due primarily to
selling price increases as a result of inflationary increases in
raw material prices. There was a decrease in volume of 1.5%
primarily due to weaknesses in the residential construction
markets. This decline was somewhat offset by strength in the
MRO, industrial and commercial construction markets.
Operating income for our electrical/wire and cable distributors
segment for the three months ended March 31, 2007 was
$2.8 million compared to $5.0 million for the three
months ended March 31, 2006, a decrease of
$2.2 million, or 44.0%. This decrease was attributed to the
rapid drop in copper prices during the end of 2006 and beginning
of 2007, which resulted in compressed margins due to the lag in
working through our inventory layers, working capital
initiatives, plant realignments, and stock compensation expense,
offset by the ability to spread fixed costs across a larger
revenue base.
Specialty
Distributors and OEMs
Net sales for our specialty distributors and OEMs segment for
the three months ended March 31, 2007 were
$55.6 million compared to $48.8 million for the three
months ended March 31, 2006, an increase of
$6.8 million, or 13.9%. There was a decrease in volume of
6.2% due to declines in demand from our existing customers,
offset by growth and market share gains in our industrial and
irrigation channels.
Operating income for our specialty distributors and OEMs segment
for the three months ended March 31, 2007 was
$4.3 million compared with $5.7 million for the three
months ended March 31, 2006, a decrease of
$1.4 million or 24.6%. This decrease was primarily due to
the rapid drop in copper prices during the end of 2006 and
beginning of 2007, which resulted in compressed margins across
most business channels due to the lag in working through our
inventory layers, working capital initiatives, plant
realignments, and stock compensation expense, offset by the
ability to spread fixed costs across a larger revenue base.
Consumer
Outlets
Net sales for our consumer outlets segment for the three months
ended March 31, 2007 were $18.1 million compared to
$9.9 million for the three months ended March 31,
2006, an increase of $8.2 million or 82.8%. This increase
was due primarily to a volume increase of 43.7% and price
increases associated with raw material cost increases. The
volume increase was due primarily to an increase in automotive
product sales due to improved market conditions compared to 2006
and to initial stocking orders for product line expansions with
existing customers in 2007.
Operating income for our consumer outlets segment for the
quarter ended March 31, 2007 was $2.0 million compared
to $0.1 million for the three months ended March 31,
2006, an increase of approximately $1.9 million . This
increase was largely due to strength in demand in our automotive
channel, expanded product placement with existing customers, the
ability to spread fixed costs across a larger revenue base,
improved operational efficiencies due to the plant realignments
in 2006 and the ability to secure price increases. This was
offset by stock compensation expense and the accrual of
management bonuses due to increased profitability.
Forward-Looking
Statements
This Supplement contains certain forward-looking statements.
These forward-looking statements involve risk and uncertainty.
Actual results could differ from those currently anticipated due
to a number of factors including those mentioned in the
Prospectus. Forward-looking statements are based on information
available to management at the time, and they involve judgments
and estimates. Factors that could cause results to differ from
expectations include the level of market demand for our
products, competitive pressures, economic conditions in the
U.S., price fluctuations of raw materials, environmental
matters, unknown or unforeseeable events or developments and
other specific factors discussed in “Risk Factors.”