Preformed Line Products Announces Financial Results for the Fourth Quarter and Full Year 2011

MAYFIELD VILLAGE, Ohio, March 13, 2012 /PRNewswire/ --

  • Net sales in 2011 increased $86.1 million or 25% to $424.4 million, compared to $338.3 million in 2010
  • Net income in 2011 of $31 million increased $7.9 million or 34% compared to 2010
  • Diluted earnings per share were $5.78 per share in 2011 compared to $4.33 per share in 2010
  • 2011 Net sales, net income and diluted earnings per share were all records for the Company

Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for the fourth quarter and the full year 2011.

Net income for the quarter ended December 31, 2011 increased 49% to $8,940,000, or $1.67 per diluted share, compared to $6,006,000, or $1.13 per diluted share, for the comparable period in 2010.   Net sales in the fourth quarter of 2011 increased 14% to $106,096,000 compared to $93,318,000 in the fourth quarter of 2010.

Currency exchange rates had a negative impact on 2011 fourth quarter net income of $344,000 and on net sales of $4,154,000.

Net income for the year ended December 31, 2011 increased 34% to $30,984,000, or $5.78 per diluted share, compared to $23,113,000, or $4.33 per diluted share in 2010.  Net sales for 2011 increased 25% to $424,404,000 compared to $338,305,000 in 2010.  

Currency exchange rates had a positive impact on 2011 net income of $582,000 and on net sales of $10,722,000.

Excluding the impact of currency exchange rates, sales improved by 18% for the fourth quarter and 22% for the year.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "2011 was another record year for Preformed Line Products.  Our sales exceeded $400 million for the first time in our 65 year history. That we have accomplished this in a weak and unstable global economy is a true testament to the talent and dedication of our worldwide team and the overall strength of the organization."  

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 2010 Annual Report on Form 10-K filed with the SEC on March 11, 2011 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,






2011


2010


2011


2010


























Net sales


$ 106,096


$ 93,318


$ 424,404


$ 338,305


Cost of products sold


71,904


64,253


283,555


230,089




GROSS PROFIT


34,192


29,065


140,849


108,216














Costs and expenses











Selling


9,032


8,302


35,825


29,520



General and administrative


9,357


10,865


44,396


39,865



Research and engineering


3,544


3,566


13,360


12,040



Other operating expense (income)


243


(944)


1,914


(1,689)






22,176


21,789


95,495


79,736
















OPERATING INCOME


12,016


7,276


45,354


28,480














Other income (expense)











Interest income


153


113


575


374



Interest expense


(173)


(191)


(827)


(649)



Other income


471


213


892


1,978






451


135


640


1,703
















INCOME BEFORE INCOME TAXES


12,467


7,411


45,994


30,183














Income taxes


3,527


1,415


15,010


7,175
















NET INCOME


8,940


5,996


30,984


23,008
















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


-


(10)


-


(105)
















NET INCOME ATTRIBUTABLE TO PLPC


$     8,940


$   6,006


$   30,984


$   23,113














BASIC EARNINGS PER SHARE











Net Income to PLPC common shareholders


$       1.70


$     1.15


$       5.89


$       4.41














DILUTED EARNINGS PER SHARE











Net Income to PLPC common shareholders


$       1.67


$     1.13


$       5.78


$       4.33














Cash dividends declared per share


$       0.20


$     0.20


$       0.80


$       0.80














Weighted-average number of shares outstanding - basic


5,249


5,225


5,259


5,242














Weighted-average number of shares outstanding - diluted


5,339


5,319


5,358


5,335



PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)




















December 31,


December 31,

Thousands of dollars, except share and per share data




2011


2010












ASSETS










Cash and cash equivalents





$        32,126


$        22,655

Accounts receivable, less allowances of $1,627 ($1,213 in 2010)



68,949


56,102

Inventories - net






88,613


73,121

Deferred income taxes






5,263


4,784

Prepaids







8,254


9,069

Other current assets






2,285


1,611



TOTAL CURRENT ASSETS





205,490


167,342












Property and equipment - net





82,860


76,266

Other intangibles - net






11,352


12,735

Goodwill







12,199


12,346

Deferred income taxes






5,585


3,615

Other assets






9,862


8,675














TOTAL ASSETS





$      327,348


$      280,979












LIABILITIES AND SHAREHOLDERS' EQUITY


















Notes payable to banks






$          2,030


$          1,246

Current portion of long-term debt





601


1,276

Trade accounts payable






25,630


27,001

Accrued compensation and amounts withheld from employees




11,472


9,848

Accrued expenses and other liabilities





22,100


17,187



TOTAL CURRENT LIABILITIES





61,833


56,558












Long-term debt, less current portion





27,991


9,374

Other noncurrent liabilities and deferred income taxes




24,666


18,382












SHAREHOLDERS' EQUITY








PLPC shareholders' equity:









Common shares - $2 par value, 15,000,000 shares authorized, 5,333,630 and





   5,270,977 issued and outstanding, net of 639,138 and 586,746 treasury






    shares at par, respectively, as of December 31, 2011 and December 31, 2010

10,667


10,542


Common shares issued to Rabbi Trust





(3,812)


(1,200)


Deferred Compensation Liability





3,812


1,200


Paid in capital






12,718


8,748


Retained earnings






206,512


184,060


Accumulated other comprehensive loss




(17,039)


(6,010)



TOTAL PLPC SHAREHOLDERS' EQUITY




212,858


197,340

Noncontrolling interest






-


(675)



TOTAL SHAREHOLDERS' EQUITY




212,858


196,665














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



$      327,348


$      280,979



SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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