2014

Preformed Line Products Announces Financial Results For The Third Quarter And First Nine Months Of 2013

MAYFIELD VILLAGE, Ohio, Nov. 7, 2013 /PRNewswire/ -- Preformed Line Products Company (Nasdaq:   PLPC) today reported financial results for the third quarter and the first nine months of 2013.

Net income for the quarter ended September 30, 2013 was $6,104,000, or $1.12 per diluted share, compared to $9,284,000, or $1.71 per diluted share, for the comparable period in 2012.

Net sales in the third quarter of 2013 were $100,828,000 compared to sales of $114,206,000 in the third quarter of 2012.

Net income for the nine months ended September 30, 2013 was $17,455,000, or $3.20 per diluted share, compared to $24,013,000, or $4.42 per diluted share for the comparable period in 2012. 

Net sales were $311,233,000 for the first nine months of 2013 compared to $334,992,000 in the first nine months of 2012.

Currency exchange rates negatively impacted net sales by $4,286,000 for the quarter and $7,517,000 for the first nine months of 2013, while the negative impact on net income was $141,000 for the quarter and $465,000 for the first nine months of 2013.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "All four of our regional segments experienced decreases in net income.  The decrease in net income is primarily sales and mix driven.  We expected a decrease in sales in the United States during 2013 as a number of unique transmissions projects were completed during 2012.  Throughout our foreign operations we are seeing government-owned utilities deferring their transmission and distribution projects due to ongoing weak global economic conditions resulting in lower sales for our subsidiaries.  We continue to attend to the right sizing of our operations to meet current demand while remaining prepared for projected market growth as projects come back on stream."

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 is in Mayfield Village, 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 "Risk Factors" and "Forward-Looking Statements" 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 September 30,


Nine month periods ended September 30,






2013


2012


2013


2012


























Net sales


$  100,828


$   114,206


$   311,233


$   334,992


Cost of products sold


69,168


75,699


210,725


223,507




GROSS PROFIT


31,660


38,507


100,508


111,485














Costs and expenses











Selling


8,874


9,344


27,226


27,746



General and administrative


10,386


12,788


33,993


36,944



Research and engineering


3,714


3,893


11,055


11,295



Other operating expense (income)


419


(677)


2,611


562






23,393


25,348


74,885


76,547
















OPERATING INCOME


8,267


13,159


25,623


34,938














Other income (expense)











Interest income


204


160


454


476



Interest expense


(121)


(144)


(329)


(489)



Other income


194


235


393


589






277


251


518


576
















INCOME BEFORE INCOME TAXES 


8,544


13,410


26,141


35,514














Income taxes


2,440


4,126


8,686


11,501
















NET INCOME


$      6,104


$        9,284


$     17,455


$     24,013














BASIC EARNINGS PER SHARE











Net Income to PLPC common shareholders


$        1.14


$          1.75


$         3.25


$         4.51














DILUTED EARNINGS PER SHARE











Net Income to PLPC common shareholders


$        1.12


$          1.71


$         3.20


$         4.42














Cash dividends declared per share


$        0.20


$          0.20


$         0.40


$         0.60














Weighted-average number of shares outstanding - basic


5,361


5,319


5,369


5,328














Weighted-average number of shares outstanding - diluted


5,449


5,431


5,450


5,432

 


PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)




















September 30,


December 31,

Thousands of dollars, except share and per share data


2013


2012












ASSETS





Cash and cash equivalents


$         31,153


$         28,120

Accounts receivable, less allowances of $2,032 ($2,039 in 2012)


73,917


61,695

Inventories - net


73,930


86,916

Deferred income taxes 


6,752


6,557

Prepaids


9,301


8,381

Other current assets


3,638


2,432



TOTAL CURRENT ASSETS


198,691


194,101












Property, plant and equipment - net


98,453


93,326

Other intangibles - net


12,365


14,038

Goodwill


14,972


15,537

Deferred income taxes 


6,989


6,069

Other assets


13,572


9,993














TOTAL ASSETS


$       345,042


$       333,064












LIABILITIES AND SHAREHOLDERS' EQUITY
















Notes payable to banks


$              501


$              217

Current portion of long-term debt


191


251

Trade accounts payable


23,837


21,822

Accrued compensation and amounts withheld from employees


15,214


12,271

Accrued expenses and other liabilities


17,333


23,682



TOTAL CURRENT LIABILITIES


57,076


58,243












Long-term debt, less current portion


14,951


9,322

Other noncurrent liabilities and deferred income taxes


21,960


24,430












SHAREHOLDERS' EQUITY





PLPC shareholders' equity:






Common shares - $2 par value, 15,000,000 shares authorized, 5,361,155 and 5,377,937 issued and outstanding, net of 732,579 and 689,472 treasury shares at par, respectively, as of September 30, 2013 and December 31, 2012  

10,722


10,756


Common shares issued to Rabbi Trust, 184,787 and 184,036 shares at September 30, 2013 and December 31, 2012


(6,577)


(6,522)


Deferred Compensation Liability


6,577


6,522


Paid in capital


19,828


16,355


Retained earnings


239,703


227,622


Accumulated other comprehensive loss


(19,198)


(13,664)



TOTAL SHAREHOLDERS' EQUITY


251,055


241,069














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$       345,042


$       333,064

 

 

SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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