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Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2012

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MAYFIELD VILLAGE, Ohio, March 14, 2013 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:   PLPC) today reported financial results for the fourth quarter and the full year 2012.

Net income for the quarter ended December 31, 2012 decreased 41% to $5,273,000, or $.98 per diluted share, compared to $8,940,000, or $1.67 per diluted share, for the comparable period in 2011.   Net sales in the fourth quarter of 2012 decreased 2% to $104,200,000 compared to $106,096,000 in the fourth quarter of 2011.

Currency exchange rates had a negative impact on 2012 fourth quarter net sales of $1,043,000 and the impact on net income was insignificant.

Net income for the year ended December 31, 2012 decreased 5% to $29,286,000, or $5.45 per diluted share, compared to $30,984,000, or $5.78 per diluted share in 2011.  Net sales for 2012 increased 3% to $439,192,000 compared to $424,404,000 in 2011. 

Currency exchange rates had a negative impact on 2012 net income of $1,262,000 and on net sales of $14,096,000.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our 2012 results reflect another record year for sales.  After excluding the $14.1 million negative impact of translating foreign currency denominated financial statements into US dollars, our sales improved 7% over the prior year.  This comes on top of a 25% increase in 2011 and a 32% increase in 2010.  During 2012 we generated a record $50 million of cash from operating activities.  This enabled us to continue investing in our business while reducing our bank debt by nearly $21 million.  Additionally we accelerated the payment of our first two quarterly 2013 dividends into 2012 due to the uncertainty of tax law changes during December of 2012." 

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 Argentina, 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 2011 Annual Report on Form 10-K filed with the SEC on March 14, 2012 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,







2012


2011


2012


2011





























Net sales


$           104,200


$                   106,096


$             439,192


$              424,404



Cost of products sold


71,247


71,904


294,754


283,555





GROSS PROFIT


32,953


34,192


144,438


140,849
















Costs and expenses












Selling


9,347


9,032


37,093


35,825




General and administrative


9,278


9,357


46,222


44,396




Research and engineering


4,152


3,544


15,447


13,360




Other operating expense (income)


992


243


1,554


1,914







23,769


22,176


100,316


95,495


















OPERATING INCOME


9,184


12,016


44,122


45,354
















Other income (expense)












Interest income


172


153


648


575




Interest expense


(108)


(173)


(597)


(827)




Other income


65


471


654


892







129


451


705


640


















INCOME BEFORE INCOME TAXES


9,313


12,467


44,827


45,994
















Income taxes


4,040


3,527


15,541


15,010


















NET INCOME


$               5,273


$                       8,940


$               29,286


$                30,984
















BASIC EARNINGS PER SHARE












Net Income to PLPC common shareholders


$                 0.99


$                         1.70


$                   5.50


$                    5.89
















DILUTED EARNINGS PER SHARE












Net Income to PLPC common shareholders


$                 0.98


$                         1.67


$                   5.45


$                    5.78
















Cash dividends declared per share


$                 0.40


$                         0.20


$                   1.00


$                    0.80
















Weighted-average number of shares outstanding - basic


5,310


5,249


5,324


5,259
















Weighted-average number of shares outstanding - diluted


5,363


5,339


5,371


5,358















 

 

PREFORMED LINE PRODUCTS COMPANY



CONSOLIDATED BALANCE SHEETS



(UNAUDITED)
























December 31,


December 31,



Thousands of dollars, except share and per share data




2012


2011
















ASSETS












Cash and cash equivalents





$              28,120


$              32,126



Accounts receivable, less allowances of $2,039 ($1,627 in 2011)




61,695


68,949



Inventories - net






86,916


88,613



Deferred income taxes






6,557


5,263



Prepaids







8,381


8,254



Other current assets






2,432


2,285





TOTAL CURRENT ASSETS





194,101


205,490
















Property, plant and equipment - net





93,326


82,860



Other intangibles - net






14,038


11,352



Goodwill







15,537


12,199



Deferred income taxes






6,069


5,585



Other assets






9,993


9,862


















TOTAL ASSETS





$            333,064


$            327,348
















LIABILITIES AND SHAREHOLDERS' EQUITY






















Notes payable to banks






$                   217


$                2,030



Current portion of long-term debt





251


601



Trade accounts payable






21,822


25,630



Accrued compensation and amounts withheld from employees




12,271


11,472



Accrued expenses and other liabilities





23,682


22,100





TOTAL CURRENT LIABILITIES




58,243


61,833
















Long-term debt, less current portion





9,322


27,991



Other noncurrent liabilities and deferred income taxes




24,430


24,666
















SHAREHOLDERS' EQUITY










PLPC shareholders' equity:











Common shares - $2 par value, 15,000,000 shares authorized, 5,377,937 and







    5,333,630 issued and outstanding, net of 689,472 and 639,138 treasury







     shares at par, respectively, as of September 30, 2012 and December 31, 2011

10,756


10,667




Common shares issued to Rabbi Trust, 184,036 and 109,040 shares at









December 31, 2012 and December 31, 2011




(6,522)


(3,812)




Deferred Compensation Liability





6,522


3,812




Paid in capital






16,355


12,718




Retained earnings






227,622


206,512




Accumulated other comprehensive loss




(13,664)


(17,039)





TOTAL SHAREHOLDERS' EQUITY




241,069


212,858


















TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$            333,064


$            327,348













































 

SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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