Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2013

MAYFIELD VILLAGE, Ohio, March 14, 2014 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for the fourth quarter and the full year 2013.

Net income for the quarter ended December 31, 2013 decreased 41% to $3,132,000, or $.58 per diluted share, compared to $5,273,000, or $.98 per diluted share, for the comparable period in 2012.  Net sales in the fourth quarter of 2013 decreased 5% to $98,543,000 compared to $104,200,000 in the fourth quarter of 2012.

Currency exchange rates had a negative impact on 2013 fourth quarter net sales of $2,993,000 and the impact on net income was insignificant.

Net income for the year ended December 31, 2013 decreased 30% to $20,587,000, or $3.77 per diluted share, compared to $29,286,000, or $5.45 per diluted share in 2012.  Net sales for 2013 decreased 7% to $409,776,000 compared to $439,192,000 in 2012. 

Currency exchange rates had a negative impact on 2013 net income of $444,000 and on net sales of $10,498,000.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "The world economies continued to struggle during the year and utilities deferred spending in the face of economic uncertainty and global turmoil. Most foreign currencies weakened further against the U.S. dollar during the year, resulting in a negative impact when translating foreign denominated income statements into U.S. dollars, as well as having to record currency losses on our loans and receivables from foreign subsidiaries. While the numbers are disappointing, particularly in light of multiple record years to this point, I am proud of the team's performance in the face of adversity. As always, we are focused on product development while controlling expenses and modifying our operational structure where necessary, in the interest of improving productivity. We are fully prepared to provide superior products and service to our customers throughout the world as economies recover."

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, France,  Indonesia, Malaysia, Mexico, New Zealand, Poland, Russia, 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, the Company's ability to develop new products and improve productivity, 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 2012 Annual Report on Form 10-K filed with the SEC on March 15, 2013 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,






2013


2012


2013


2012


























Net sales


$             98,543


$                   104,200


$             409,776


$              439,192


Cost of products sold


68,150


71,247


278,875


294,754




GROSS PROFIT


30,393


32,953


130,901


144,438














Costs and expenses











Selling


8,478


9,347


35,704


37,093



General and administrative


11,426


9,278


44,557


46,222



Research and engineering


3,653


4,152


14,708


15,447



Other operating expense (income)


449


992


3,922


1,554



Goodwill impairment


862


-


862


-






24,868


23,769


99,753


100,316
















OPERATING INCOME


5,525


9,184


31,148


44,122














Other income (expense)











Interest income


164


172


618


648



Interest expense


(121)


(108)


(450)


(597)



Other income


85


65


478


654






128


129


646


705
















INCOME BEFORE INCOME TAXES 


5,653


9,313


31,794


44,827














Income taxes


2,521


4,040


11,207


15,541
















NET INCOME


$               3,132


$                       5,273


$               20,587


$                29,286














BASIC EARNINGS PER SHARE











Net Income to PLPC common shareholders


$                 0.59


$                         0.99


$                   3.84


$                    5.50














DILUTED EARNINGS PER SHARE











Net Income to PLPC common shareholders


$                 0.58


$                         0.98


$                   3.77


$                    5.45














Cash dividends declared per share


$                 0.20


$                         0.40


$                   0.60


$                    1.00














Weighted-average number of shares outstanding - basic


5,340


5,310


5,361


5,324














Weighted-average number of shares outstanding - diluted


5,390


5,363


5,467


5,371













 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)












December 31,


December 31,

Thousands of dollars, except share and per share data


2013


2012








ASSETS






Cash and cash equivalents


$              24,291


$              28,120

Accounts receivable, less allowances of $2,136 ($2,039 in 2012)


67,587


61,695

Inventories - net


73,835


86,916

Deferred income taxes 


7,022


6,557

Prepaids



9,845


8,381

Other current assets


3,154


2,432



TOTAL CURRENT ASSETS


185,734


194,101








Property, plant and equipment - net


100,461


93,326

Other intangibles - net


11,787


14,038

Goodwill



13,873


15,537

Deferred income taxes 


3,416


6,069

Other assets


17,135


9,993










TOTAL ASSETS


$            332,406


$            333,064








LIABILITIES AND SHAREHOLDERS' EQUITY












Notes payable to banks


$                1,105


$                   217

Current portion of long-term debt


195


251

Trade accounts payable


21,750


21,822

Accrued compensation and amounts withheld from employees


10,787


12,271

Accrued expenses and other liabilities


18,378


23,682



TOTAL CURRENT LIABILITIES


52,215


58,243








Long-term debt, less current portion


13,054


9,322

Other noncurrent liabilities and deferred income taxes


14,807


24,430








SHAREHOLDERS' EQUITY





PLPC shareholders' equity:






Common shares - $2 par value, 15,000,000 shares authorized, 5,391,074 and 5,377,937 issued and outstanding, net of 779,279 and 689,472 treasury shares at par, respectively, as of December 31, 2013 and December 31, 2012


10,782


10,756




Common shares issued to Rabbi Trust, 253,156 and 184,036 shares at December 31, 2013 and December 31, 2012


(9,306)


(6,522)



Deferred Compensation Liability


9,306


6,522


Paid in capital


21,082


16,355


Retained earnings


238,168


227,622


Accumulated other comprehensive loss


(17,702)


(13,664)



TOTAL SHAREHOLDERS' EQUITY


252,330


241,069










TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$            332,406


$            333,064








SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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