Preformed Line Products Announces Financial Results for the Fourth Quarter and Full Year 2010

10 Mar, 2011, 08:34 ET from Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, March 10, 2011 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the fourth quarter and the full year 2010.

Net income for the quarter ended December 31, 2010 was $6,006,000, or $1.13 per diluted share, compared to $10,731,000, or $1.99 per diluted share, for the comparable period in 2009.  Net income in 2009 includes a $9,087,000 gain realized from the acquisition of the Dulmison business and after tax costs related to the acquisition of $3,179,000.   Net sales in the fourth quarter of 2010 increased 34% to $93,318,000 compared to $69,812,000 in the fourth quarter of 2009.

Currency exchange rates had a positive impact on 2010 fourth quarter net income of $250,000 and on net sales of $1,766,000.

Net income for the year ended December 31, 2010 was $23,113,000, or $4.33 per diluted share, compared to $23,357,000, or $4.35 per diluted share in 2009.  Net sales for 2010 increased 32% to $338,305,000 compared to $257,206,000 in 2009.  

Currency exchange rates had a positive impact on 2010 net income of $1,114,000 and on net sales of $14,076,000.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "I am proud of our team for their worldwide dedication to the integration of the Dulmison business, which we acquired in December 2009.  Their success in implementing this acquisition was a major reason we accomplished record sales and net income from our operations in 2010.  Our fourth quarter earnings from operations were the strongest in the Company's history.  Going forward, we expect that the manufacturing leverage provided by this acquisition will assist in partially offsetting sharply increasing commodity pricing worldwide."  

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 headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2009 Annual Report on Form 10-K filed with the SEC on March 15, 2010 and subsequent filings with the SEC.  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)

In thousands, except per share data

Three month periods

ended December 31,

Twelve month periods

ended December 31,

2010

2009

2010

2009

Net sales

$ 93,318

$ 69,812

$ 338,305

$ 257,206

Cost of products sold

64,253

48,086

230,089

172,438

GROSS PROFIT

29,065

21,726

108,216

84,768

Costs and expenses

Selling

8,302

6,062

29,520

22,702

General and administrative

10,865

10,961

39,865

33,993

Research and engineering

3,566

2,585

12,040

9,216

Other operating expense (income)

(944)

(244)

(1,689)

(603)

21,789

19,364

79,736

65,308

OPERATING INCOME

7,276

2,362

28,480

19,460

Other income (expense)

Interest income

113

73

374

380

Interest expense

(191)

(154)

(649)

(523)

Other income

213

9,293

1,978

10,276

135

9,212

1,703

10,133

INCOME BEFORE INCOME TAXES

7,411

11,574

30,183

29,593

Income taxes

1,415

1,259

7,175

6,760

NET INCOME

5,996

10,315

23,008

22,833

Less net (loss) attributable to noncontrolling interests, net of tax

(10)

(416)

(105)

(524)

NET INCOME ATTRIBUTABLE TO PLPC

$   6,006

$ 10,731

$   23,113

$   23,357

BASIC EARNINGS PER SHARE

Net Income to PLPC common shareholders

$     1.15

$     2.05

$       4.41

$       4.46

DILUTED EARNINGS PER SHARE

Net Income to PLPC common shareholders

$     1.13

$     1.99

$       4.33

$       4.35

Cash dividends declared per share

$     0.20

$     0.20

$       0.80

$       0.80

Weighted-average number of shares outstanding - basic

5,225

5,238

5,242

5,232

Weighted-average number of shares outstanding - diluted

5,319

5,387

5,335

5,366

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)

December 31,

December 31,

Thousands of dollars, except share and per share data

2010

2009

ASSETS

Cash and cash equivalents

$              22,655

$              24,097

Accounts receivable, less allowances of $1,213 ($995 in 2009)

56,102

49,245

Inventories - net

73,121

56,036

Deferred income taxes

4,784

2,737

Prepaids

9,069

4,263

Other current assets

1,611

2,062

       TOTAL CURRENT ASSETS

167,342

138,440

Property and equipment - net

76,266

67,766

Other intangibles - net

12,735

8,087

Goodwill

12,346

6,925

Deferred income taxes

3,615

4,877

Other assets

8,675

9,277

       TOTAL ASSETS

$            280,979

$            235,372

LIABILITIES AND SHAREHOLDERS' EQUITY

Notes payable to banks

$                1,246

$                3,181

Current portion of long-term debt

1,276

1,330

Trade accounts payable

27,001

18,764

Accrued compensation and amounts withheld from employees

9,848

8,345

Accrued expenses and other liabilities

17,187

14,720

       TOTAL CURRENT LIABILITIES

56,558

46,340

Long-term debt, less current portion

9,374

3,099

Other noncurrent liabilities and deferred income taxes

19,582

15,112

SHAREHOLDERS' EQUITY

PLPC shareholders' equity:

Common shares - $2 par value, 15,000,000 shares authorized, 5,270,977 and 5,248,298 issued and

outstanding, net of 586,746 and 554,059 treasury shares at par, respectively

10,542

10,497

Common shares issued to Rabbi Trust

(1,200)

-

Paid in capital

8,748

5,885

Retained earnings

184,060

165,953

Accumulated other comprehensive loss

(6,010)

(11,369)

       TOTAL PLPC SHAREHOLDERS' EQUITY

196,140

170,966

Noncontrolling interest

(675)

(145)

       TOTAL SHAREHOLDERS' EQUITY

195,465

170,821

       TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$            280,979

$            235,372

SOURCE Preformed Line Products Company



RELATED LINKS

http://www.preformed.com