Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2013

MAYFIELD VILLAGE, Ohio, May 3, 2013 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for the first quarter ended March 31, 2013.

Net income for the quarter ended March 31, 2013 was $4,965,000, or $.91 per diluted share, compared to $8,133,000, or $1.50 per diluted share, for the comparable period in 2012.

Net sales for the first quarter of 2013 were $98,689,000 compared to $108,846,000 in the first quarter of 2012. 

Currency exchange rates had a negative impact on 2013 first quarter net sales and net income of $2.1 million and $.2 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Historically speaking, this was a relatively strong quarter.  While we are disappointed, the results are certainly understandable given the ongoing uncertainty within our domestic economy, the weakness of the Eurozone and the depressed spending in the Asia Pacific region."

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, telecommunication, cable operators, information (data communication), and other similar industries.  Our primary products support, protect, connect, terminate, and secure cables and wires.  We also provide solar hardware systems and mounting hardware for a variety of solar power applications.

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 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 March 31,









2013


2012

























Net sales

$ 98,689


$ 108,846



Cost of products sold

67,390


72,834





GROSS PROFIT




31,299


36,012














Costs and expenses







Selling

9,061


8,896




General and administrative

11,480


12,007




Research and engineering

3,770


3,655




Other operating expense (income)

121


(651)









24,432


23,907
















OPERATING INCOME




6,867


12,105














Other income (expense)







Interest income

116


137




Interest expense

(103)


(196)




Other income

37


145









50


86
















INCOME BEFORE INCOME TAXES 




6,917


12,191














Income taxes

1,952


4,058
















NET INCOME




$   4,965


$     8,133














BASIC EARNINGS PER SHARE







Net Income attributable to PLPC common shareholders

$     0.92


$       1.52














DILUTED EARNINGS PER SHARE







Net Income attributable to PLPC common shareholders

$     0.91


$       1.50














Cash dividends declared per share

$           -


$       0.20














Weighted-average number of shares outstanding - basic

5,377


5,334














Weighted-average number of shares outstanding - diluted

5,457


5,438













  














PREFORMED LINE PRODUCTS COMPANY



CONSOLIDATED BALANCE SHEETS



(UNAUDITED)
























March 31,


December 31,



Thousands of dollars, except share and per share data

2013


2012
















ASSETS






Cash and cash equivalents

$   27,024


$       28,120



Accounts receivable, less allowances of $1,865 ($2,039 in 2012)

66,713


61,695



Inventories - net

86,308


86,916



Deferred income taxes 

6,091


6,557



Prepaids

10,060


8,381



Other current assets

2,987


2,432





TOTAL CURRENT ASSETS

199,183


194,101
















Property, plant and equipment - net

96,943


93,326



Other intangibles - net

13,710


14,038



Goodwill

15,570


15,537



Deferred income taxes 

6,782


6,069



Other assets

10,569


9,993


















TOTAL ASSETS

$ 342,757


$     333,064
















LIABILITIES AND SHAREHOLDERS' EQUITY



















Notes payable to banks

$          97


$            217



Current portion of long-term debt

184


251



Trade accounts payable

24,212


21,822



Accrued compensation and amounts withheld from employees

13,684


12,271



Accrued expenses and other liabilities

17,528


23,682





TOTAL CURRENT LIABILITIES

55,705


58,243
















Long-term debt, less current portion

16,077


9,322



Other noncurrent liabilities and deferred income taxes

24,136


24,430
















SHAREHOLDERS' EQUITY






PLPC shareholders' equity:







Common shares - $2 par value, 15,000,000 shares authorized, 5,376,254 and 5,377,937 issued and outstanding, net of 691,472 and 689,472 treasury shares at par, respectively, as of March 31, 2013 and December 31, 2012

10,753


10,756




Common shares issued to Rabbi Trust, 183,929 and 184,036 shares

(6,517)


(6,522)




Deferred Compensation Liability

6,517


6,522




Paid in capital

16,797


16,355




Retained earnings

232,456


227,622




Accumulated other comprehensive loss

(13,167)


(13,664)





TOTAL SHAREHOLDERS' EQUITY

246,839


241,069


















TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 342,757


$     333,064
















SOURCE Preformed Line Products Company



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http://www.preformed.com

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