Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2015

Mar 04, 2016, 08:48 ET from Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, March 4, 2016 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for the fourth quarter and the full year 2015.

Net income for the quarter ended December 31, 2015 was $3,045,000, or $.58 per diluted share, compared to $2,488,000, or $.46 per diluted share, for the comparable period in 2014.  Net sales in the fourth quarter of 2015 were $91,961,000 compared to $96,179,000 in the fourth quarter of 2014.

Currency exchange rates had an unfavorable impact on 2015 fourth quarter net sales of $10,547,000, and $36,874,000 for the year.  The unfavorable impact on net income was $670,000 for the fourth quarter, and $60,000 for the year.

Net income for the year ended December 31, 2015 was $6,675,000, or $1.24 per diluted share, compared to $12,861,000, or $2.39 per diluted share in 2014.  Net sales for 2015 were $354,666,000 compared to $388,185,000 in 2014. 

Rob Ruhlman, Chairman and Chief Executive Officer, said, "The fourth quarter was our strongest sales quarter of the year.  In local currencies, sales improved 6 ½% over the fourth quarter of 2014.  Improvements in our Asia Pacific and Americas segments offset lower sales in our EMEA and U.S.A. segments reflecting the benefit of our geographic diversity.  Our full-year results include $4 million of restructuring charges as well as $7.5 million of unrealized currency losses primarily on intercompany transactions compared to $3 million in 2014."

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 two domestic manufacturing centers located in Rogers, Arkansas, 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 2014 Annual Report on Form 10-K filed with the SEC on March 12, 2015 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






(In thousands, except per share data)


Three Months Ended December 31


Year Ended December 31





2015


2014


2015


2014























Net sales


$ 91,961


$ 96,179


$ 354,666


$ 388,185

Cost of products sold


65,872


66,331


251,214


267,237



GROSS PROFIT


26,089


29,848


103,452


120,948












Costs and expenses










Selling


7,739


8,645


30,593


35,655


General and administrative


9,281


10,416


36,878


42,563


Research and engineering


3,559


3,945


14,879


16,302


Other operating expense (income) - net


347


2,564


8,753


5,190





20,926


25,570


91,103


99,710














OPERATING INCOME


5,163


4,278


12,349


21,238












Other income (expense)










Interest income


74


138


391


483


Interest expense


(142)


(154)


(565)


(658)


Other income (expense) - net


63


111


(469)


347





(5)


95


(643)


172














INCOME BEFORE INCOME TAXES 


5,158


4,373


11,706


21,410












Income taxes


2,113


1,885


5,031


8,549














NET INCOME


$   3,045


$   2,488


$     6,675


$   12,861












BASIC EARNINGS PER SHARE










Net Income


$     0.58


$     0.46


$       1.25


$       2.39












DILUTED EARNINGS PER SHARE










Net Income


$     0.58


$     0.46


$       1.24


$       2.39












Cash dividends declared per share


$     0.20


$     0.20


$       0.80


$       0.80












Weighted-average number of shares outstanding - basic


5,258


5,354


5,350


5,377












Weighted-average number of shares outstanding - diluted


5,276


5,361


5,366


5,382

 

 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS













December 31,


December 31,

(Thousands of dollars, except share and per share data)


2015


2014








ASSETS






Cash and cash equivalents


$       30,393


$       29,643

Accounts receivable, less allowances of $2,326 ($2,370 in 2014)


63,626


67,942

Inventories - net


69,912


80,037

Deferred income taxes 


8,608


7,249

Prepaids



9,615


9,167

Other current assets


6,343


6,625



TOTAL CURRENT ASSETS


188,497


200,663








Property, plant and equipment - net


91,965


102,531

Other intangibles - net


11,288


14,121

Goodwill



15,821


17,792

Deferred income taxes 


5,299


5,773

Other assets


11,703


13,087










TOTAL ASSETS


$     324,573


$     353,967








LIABILITIES AND SHAREHOLDERS' EQUITY












Notes payable to banks


$            413


$         1,809

Current portion of long-term debt


110


116

Trade accounts payable


20,377


22,332

Accrued compensation and amounts withheld from employees


9,306


9,876

Accrued expenses and other liabilities


21,685


21,194



TOTAL CURRENT LIABILITIES


51,891


55,327








Long-term debt, less current portion


31,754


31,749

Other noncurrent liabilities and deferred income taxes


21,944


23,966








SHAREHOLDERS' EQUITY





PLPC shareholders' equity:






Common shares - $2 par value, 15,000,000 shares authorized, 5,221,062 and 5,397,138 issued and outstanding, as of December 2015 and December 2014


12,478


12,433


Common shares issued to Rabbi Trust, 296,635 and 292,609 shares at December 31, 2015 and December 31, 2014, respectively


(12,052)


(11,790)


Deferred Compensation Liability


12,052


11,790


Paid-in capital


22,916


22,795


Retained earnings


292,311


289,849


Treasury shares, at cost, 1,018,013 and 819,424 shares at December 31, 2015 and December 31, 2014


(54,570)


(47,018)


Accumulated other comprehensive loss


(54,151)


(35,134)



TOTAL SHAREHOLDERS' EQUITY


218,984


242,925










TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$     324,573


$     353,967

 

SOURCE Preformed Line Products Company



RELATED LINKS

http://www.preformed.com