Preformed Line Products Announces Second Quarter and First Half 2012 Results

MAYFIELD VILLAGE, Ohio, Aug. 8, 2012 /PRNewswire/ -- Preformed Line Products Company (Nasdaq:   PLPC) today reported financial results for the second quarter and the first six months of 2012.

Net income for the quarter ended June 30, 2012 decreased 21% to $6,596,000, or $1.21 per diluted share, compared to $8,386,000 or $1.55 per diluted share, for the comparable period in 2011.  Currency exchange rates had a negative impact on net income of $502,000 or $.09 per diluted share for the second quarter of 2012.

Net sales in the second quarter of 2012 were $111,940,000, compared to $114,530,000 in the second quarter of 2011.  Currency exchange rates had a negative impact on sales of $6,333,000 for the second quarter of 2012.

Net income for the six months ended June 30, 2012 was $14,729,000, or $2.71 per diluted share, compared to $15,384,000, or $2.85 per diluted share for the comparable period in 2011.  Currency exchange rates had a negative impact on net income of $693,000 or $.13 per diluted share for the first six months of 2012.

Net sales increased 5% to $220,786,000 for the first six months of 2012 compared to $209,618,000 in the first six months of 2011.  Currency exchange rates had a negative impact on sales of $7,260,000 for the first six months of 2012.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our domestic operations continue to remain strong with a 20% sales growth for the first half of the year.  Currency headwinds had a significant negative impact on our worldwide results as foreign currencies weakened against the U.S. Dollar.  In addition to the $.5 million impact on the quarter and nearly $.7 million impact on the year resulting from translating foreign denominated financial statements into Dollars, we had pre-tax changes in unrealized translation losses of $1.8 million for the quarter and $1.2 million for the year resulting from intercompany receivables and loans. Excluding the impact of currency, our net income improved for the year and was 3% lower for the quarter. Considering the condition of the global economy, these results are on par if not slightly above those of our peers."

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 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 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 June 30,


Six month periods ended June 30,






2012


2011


2012


2011


























Net sales


$           111,940


$                   114,530


$          220,786


$         209,618


Cost of products sold


74,974


77,824


147,808


140,521




GROSS PROFIT


36,966


36,706


72,978


69,097














Costs and expenses











Selling


9,506


9,272


18,402


17,308



General and administrative


12,149


11,780


24,156


22,742



Research and engineering


3,747


3,215


7,402


6,577



Other operating expense (income)


1,890


(694)


1,239


(788)






27,292


23,573


51,199


45,839
















OPERATING INCOME


9,674


13,133


21,779


23,258














Other income (expense)











Interest income


179


140


316


291



Interest expense


(149)


(266)


(345)


(477)



Other income


209


43


354


227






239


(83)


325


41
















INCOME BEFORE INCOME TAXES 


9,913


13,050


22,104


23,299














Income taxes


3,317


4,520


7,375


7,915
















NET INCOME


6,596


8,530


14,729


15,384
















Less net loss attributable to noncontrolling interests, net of tax


-


144


-


-
















NET INCOME ATTRIBUTABLE TO PLPC 


$               6,596


$                       8,386


$            14,729


$           15,384














BASIC EARNINGS PER SHARE











Net Income to PLPC common shareholders


$                 1.24


$                         1.59


$                2.76


$               2.92














DILUTED EARNINGS PER SHARE











Net Income to PLPC common shareholders


$                 1.21


$                         1.55


$                2.71


$               2.85














Cash dividends declared per share


$                 0.20


$                         0.20


$                0.40


$               0.40














Weighted-average number of shares outstanding - basic


5,332


5,263


5,333


5,268














Weighted-average number of shares outstanding - diluted


5,441


5,393


5,440


5,390

 

 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)




















June 30,


December 31,

Thousands of dollars, except share and per share data




2012


2011












ASSETS










Cash and cash equivalents





$              30,398


$              32,126

Accounts receivable, less allowances of $1,887 ($1,627 in 2011)




73,343


68,949

Inventories - net






88,685


88,613

Deferred income taxes 






6,111


5,263

Prepaids







8,224


8,254

Other current assets






2,824


2,285



TOTAL CURRENT ASSETS





209,585


205,490












Property, plant and equipment - net





88,360


82,860

Other intangibles - net






15,116


11,352

Goodwill







14,309


12,199

Deferred income taxes 






5,975


5,585

Other assets






9,613


9,862














TOTAL ASSETS





$            342,958


$            327,348












LIABILITIES AND SHAREHOLDERS' EQUITY


















Notes payable to banks






$                   281


$                2,030

Current portion of long-term debt





453


601

Trade accounts payable






26,342


25,630

Accrued compensation and amounts withheld from employees




15,416


11,472

Accrued expenses and other liabilities





24,033


22,100



TOTAL CURRENT LIABILITIES




66,525


61,833












Long-term debt, less current portion





25,464


27,991

Other noncurrent liabilities and deferred income taxes




25,961


24,666












SHAREHOLDERS' EQUITY








PLPC shareholders' equity:









Common shares - $2 par value, 15,000,000 shares authorized, 5,333,018 and





    5,333,630 issued and outstanding, net of 642,388 and 639,138 treasury






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


10,666


10,667


Common shares issued to Rabbi Trust





(3,847)


(3,812)


Deferred Compensation Liability





3,847


3,812


Paid in capital






14,190


12,718


Retained earnings






218,844


206,512


Accumulated other comprehensive loss




(18,692)


(17,039)



TOTAL SHAREHOLDERS' EQUITY




225,008


212,858














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$            342,958


$            327,348

 

SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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