2014

Preformed Line Products Announces Financial Results for the Fourth Quarter and Full Year 2009

MAYFIELD VILLAGE, Ohio, March 16 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the fourth quarter and the full year 2009.

Net income for the quarter ended December 31, 2009 was $10,731,000, or $1.99 per diluted share, compared to $2,761,000, or $.52 per diluted share, for the comparable period in 2008.  Net income in 2009 includes a $9,087,000 gain from our recent acquisition of the Dulmison product line and after tax expenses related to the acquisition of $3,179,000.   Net sales in the fourth quarter of 2009 increased 15% to $69,812,000 compared to $60,563,000 in the fourth quarter of 2008.

Currency exchange rates had a positive impact on 2009 fourth quarter net income of $201,000 and on net sales of $6,455,000.

Net income for the year ended December 31, 2009 increased 33% to $23,357,000, or $4.35 per diluted share, compared to $17,623,000, or $3.30 per diluted share in 2008.  Net income in 2008 included a net gain of $756,000, or $.14 per diluted share, on the sale of a former wholly owned domestic subsidiary.  Net sales for 2009 were $257,206,000 compared to $269,742,000 in 2008.  

Currency exchange rates had a negative impact on 2009 net income of $1,088,000.   The negative currency exchange rate impact on net sales was $12,184,000.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Considering the challenges we faced in 2009 from the global economic environment, I believe that we had an extremely successful year.  At the beginning of the year, we said flat would be the new up in 2009 as a result of the uncertainties that we faced.  Our sales were indeed flat when viewed in native currency.  Net income was a record as a result of our persistence in pursuing growth initiatives over the past several years.  The acquisition of the Dulmison product line in late 2009 will strengthen our market presence and integration of these operations creates opportunities for our worldwide workforce."  

Founded in 1947, Preformed Line Products is an international designer and manufacturer of products and systems employed in the construction and maintenance of overhead and underground networks for energy, communications and broadband network companies.

Preformed's world headquarters are in Cleveland, Ohio, and the Company operates three domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New Mexico, and Albemarle, North Carolina.  The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Indonesia Malaysia, Mexico, New Zealand, Poland, South Africa, Spain and Thailand.

This news release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 regarding the Company, including those statements regarding the Company's and management's beliefs and expectations concerning the Company's future performance or anticipated financial results, among others. Except for historical information, the matters discussed in this release are forward-looking statements that involve risks and uncertainties which may cause results to differ materially from those set forth in those statements.  Among other things, factors that could cause actual results to differ materially from those expressed in such forward-looking statements include the strength of the economy and demand for the Company's products, increases in raw material prices, the Company's ability to identify, complete and integrate acquisitions for profitable growth, and other factors described under the heading "Forward-Looking Statements" in the Company's 2009 Annual Report on Form 10-K filed with the SEC on March 15, 2010.  The Annual Report on Form 10-K and the Company's other filings with the SEC can be found on the SEC's website at http://www.sec.gov.  The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

    
    
                       PREFORMED LINE PRODUCTS COMPANY                   
                    STATEMENTS OF CONSOLIDATED OPERATIONS                
                                 (UNAUDITED)                             
                                                                         
                                       Three month       Twelve month    
      Thousands, except per share     periods ended      periods ended   
       data                            December 31,       December 31,   
                                     --------------     --------------   
                                       2009     2008      2009      2008 
                                       ----     ----      ----      ---- 
                                                                         
                                                                         
      Net sales                     $69,812  $60,563  $257,206  $269,742 
      Cost of products sold          48,086   41,441   172,438   182,475 
                                     ------   ------   -------   ------- 
          GROSS PROFIT               21,726   19,122    84,768    87,267 
                                                                         
      Costs and expenses                                                 
        Selling                       6,062    5,676    22,702    23,555 
        General and administrative   10,961    7,461    33,993    30,014 
        Research and engineering      2,585    2,325     9,216     8,870 
        Other operating (income)                                         
         expenses - net                (244)     235      (603)      840 
                                     ------   ------    ------    ------ 
                                     19,364   15,697    65,308    63,279 
                                                                         
                                     ------    -----    ------    ------ 
          OPERATING INCOME            2,362    3,425    19,460    23,988 
                                                                         
      Other income (expense)                                             
        Gain on acquisition of                                           
         business                     9,087        -     9,087         - 
        Interest income                  73      191       380       846 
        Interest expense               (154)    (129)     (523)     (544)
        Other income (expense)          206      274     1,189       470 
                                      -----    -----    ------     ----- 
                                      9,212      336    10,133       772 
                                      -----    -----    ------     ----- 
                                                                         
          INCOME BEFORE INCOME TAXES                                     
              AND DISCONTINUED                                           
               OPERATIONS            11,574    3,761    29,593    24,760 
                                                                         
      Income taxes                    1,259    1,114     6,760     7,718 
                                      -----    -----     -----     ----- 
                                                                         
          INCOME FROM CONTINUING                                         
           OPERATIONS, NET OF TAX    10,315    2,647    22,833    17,042 
                                                                         
      Income from discontinued                                           
       operations, net of tax             -      134         -       869 
                                                                         
          NET INCOME                 10,315    2,781    22,833    17,911 
                                                                         
          Less net income (loss)                                         
           attributable to                                               
           noncontrolling                                                
           interests, net of tax       (416)      20      (524)      288 
                                    -------   ------   -------   ------- 
                                                                         
          NET INCOME ATTRIBUTABLE                                        
           TO PLPC                  $10,731   $2,761   $23,357   $17,623 
                                    =======   ======   =======   ======= 
                                                                         
      BASIC EARNINGS PER SHARE                                           
      Income per share from                                              
       continuing operations                                             
       attributable to PLPC common                                       
       shareholders                   $2.05    $0.50     $4.46     $3.17 
                                      =====    =====     =====     ===== 
      Discontinued operations                                            
       attributable to PLPC common                                       
       shareholders                      $-    $0.03        $-     $0.16 
                                      =====    =====     =====     ===== 
      Net income attributable to                                         
       PLPC common shareholders       $2.05    $0.53     $4.46     $3.34 
                                      =====    =====     =====     ===== 
      DILUTED EARNINGS PER SHARE                                         
      Income per share from                                              
       continuing operations                                             
       attributable to PLPC common                                       
       shareholders                   $1.99    $0.50     $4.35     $3.14 
                                      =====    =====     =====     ===== 
      Discontinued operations                                            
       attributable to PLPC common                                       
       shareholders                      $-    $0.03        $-     $0.16 
                                      =====    =====     =====     ===== 
      Net income attributable to                                         
       PLPC common shareholders       $1.99    $0.52     $4.35     $3.30 
                                      =====    =====     =====     ===== 
                                                                         
      Cash dividends declared per                                        
       share                          $0.20    $0.20     $0.80     $0.80 
                                      =====    =====     =====     ===== 
                                                                         
      Weighted-average number of                                         
       shares outstanding - basic     5,238    5,223     5,232     5,279 
                                      =====    =====     =====     ===== 
                                                                         
      Weighted-average number of                                         
       shares outstanding - diluted   5,387    5,306     5,366     5,339 
                                      =====    =====     =====     ===== 
                                                                         
      Amount attributable to PLPC
       common shareholders:                   
        Income from continuing                                           
         operations, net of tax     $10,731   $2,627   $23,357   $16,754 
        Discontinued operations,                                         
         net of tax                       -      134         -       869 
                                    -------   ------   -------   ------- 
        Net Income                  $10,731   $2,761   $23,357   $17,623 
                                    =======   ======   =======   ======= 
    
    
                    PREFORMED LINE PRODUCTS COMPANY                
                      CONSOLIDATED BALANCE SHEETS                  
                              (UNAUDITED)                          
                                                                   
    Thousands of dollars, except         December 31,  December 31, 
     share and per share data                   2009          2008 
                                                ----          ---- 
                                                                   
    ASSETS                                                         
    Cash and cash equivalents                $24,097       $19,869 
    Accounts receivable, less                                      
     allowances of $995 ($972 in 2008)        49,245        36,899 
    Inventories - net                         56,036        48,412 
    Deferred income taxes                      3,256         2,786 
    Prepaids                                   4,263         2,093 
    Other current assets                       2,062         2,611 
                                             -------       ------- 
        TOTAL CURRENT ASSETS                 138,959       112,670 
                                                                   
    Property and equipment - net              67,766        55,940 
    Patents and other intangibles - net        8,087         3,858 
    Goodwill                                   6,925         5,520 
    Deferred income taxes                      4,358         6,943 
    Other assets                               9,277         5,944 
                                            --------      -------- 
                                                                   
        TOTAL ASSETS                        $235,372      $190,875 
                                            ========      ======== 
                                                                   
    LIABILITIES AND SHAREHOLDERS' EQUITY                           
                                                                   
    Notes payable to banks                    $3,181        $3,101 
    Current portion of long-term debt          1,330           494 
    Trade accounts payable                    18,764        14,632 
    Accrued compensation and amounts                               
     withheld from employees                   8,345         6,606 
    Accrued expenses and other                                     
     liabilities                              14,720        10,415 
                                            --------      -------- 
        TOTAL CURRENT LIABILITIES             46,340        35,248 
                                                                   
    Long-term debt, less current                                   
     portion                                   3,099         2,653 
    Other noncurrent liabilities and                               
     deferred income taxes                    15,112        15,973 
                                                                   
    SHAREHOLDERS' EQUITY                                           
    PLPC shareholders' equity:                                     
      Common shares - $2 par value,
       15,000,000 shares authorized,  
       5,248,298 and 5,223,830 issued
       and outstanding, net of 554,059
       and 551,059 treasury shares at
       par, respectively                      10,497        10,448 
      Paid in capital                          5,885         3,704 
      Retained earnings                      165,953       146,624 
      Accumulated other comprehensive                              
       loss                                  (11,369)      (24,511)
                                            --------      -------- 
        TOTAL PLPC SHAREHOLDERS' EQUITY      170,966       136,265 
                                            --------      -------- 
    Noncontrolling interest                     (145)          736 
                                            --------      -------- 
        TOTAL SHAREHOLDERS' EQUITY           170,821       137,001 
                                            --------      -------- 
                                                                   
        TOTAL LIABILITIES AND                                      
         SHAREHOLDERS' EQUITY               $235,372      $190,875 
                                            ========      ======== 

SOURCE Preformed Line Products Company



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