Preformed Line Products Announces Second Quarter and First Half 2013 Results

MAYFIELD VILLAGE, Ohio, Aug. 9, 2013 /PRNewswire/ -- Preformed Line Products Company (Nasdaq:  PLPC) today reported financial results for the second quarter and the first six months of 2013.

Net income for the quarter ended June 30, 2013 decreased 3% to $6,386,000, or $1.17 per diluted share, compared to $6,596,000 or $1.21 per diluted share, for the comparable period in 2012.  Currency exchange rates had a negative impact on net income of $138,000 or $.03 per diluted share for the second quarter of 2013.

Net sales in the second quarter of 2013 were $111,716,000, compared to $111,940,000 in the second quarter of 2012.  Currency exchange rates had a negative impact on sales of $1,137,000 for the second quarter of 2013.

Net income for the six months ended June 30, 2013 was $11,351,000, or $2.08 per diluted share, compared to $14,729,000, or $2.71 per diluted share for the comparable period in 2012.  Currency exchange rates had a negative impact on net income of $326,000 or $.06 per diluted share for the first six months of 2013.

Net sales decreased 5% to $210,405,000 for the first six months of 2013 compared to $220,786,000 in the first six months of 2012.  Currency exchange rates had a negative impact on sales of $3,263,000 for the first six months of 2013.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our second quarter was one of our strongest quarters.  With 60 percent of our revenues originating in operations outside of the United States, we were faced with currency headwinds.  Excluding the negative impact of translating foreign denominated financial statements into dollars, our sales were up over last year.  In addition, our U.S. results were negatively impacted by translation losses of $1.7 million in the quarter and $1.6 million for the year on intercompany loans to our subsidiaries.  Although these losses due to intercompany loans are not realized until the loans are repaid, we still recognize these translation losses in our income statement."

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 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 June 30,


Six month periods
ended June 30,






2013


2012


2013


2012


























Net sales


$ 111,716


$ 111,940


$ 210,405


$ 220,786


Cost of products sold


74,167


74,974


141,557


147,808




GROSS PROFIT


37,549


36,966


68,848


72,978














Costs and expenses











Selling


9,291


9,506


18,352


18,402



General and administrative


12,127


12,149


23,607


24,156



Research and engineering


3,571


3,747


7,341


7,402



Other operating expense (income)


2,071


1,890


2,192


1,239






27,060


27,292


51,492


51,199
















OPERATING INCOME


10,489


9,674


17,356


21,779














Other income (expense)











Interest income


134


179


250


316



Interest expense


(105)


(149)


(208)


(345)



Other income


162


209


199


354






191


239


241


325
















INCOME BEFORE INCOME TAXES 


10,680


9,913


17,597


22,104














Income taxes


4,294


3,317


6,246


7,375
















NET INCOME


$     6,386


$     6,596


$   11,351


$   14,729














BASIC EARNINGS PER SHARE











Net Income to PLPC common shareholders


$       1.19


$       1.24


$       2.11


$       2.76














DILUTED EARNINGS PER SHARE











Net Income to PLPC common shareholders


$       1.17


$       1.21


$       2.08


$       2.71














Cash dividends declared per share


$       0.20


$       0.20


$       0.20


$       0.40














Weighted-average number of shares outstanding - basic


5,368


5,332


5,372


5,333














Weighted-average number of shares outstanding - diluted


5,450


5,441


5,450


5,440













 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

(UNAUDITED)




















June 30,


December 31,

Thousands of dollars, except share and per share data


2013


2012












ASSETS










Cash and cash equivalents





$   31,198


$   28,120

Accounts receivable, less allowances of $1,944 ($2,039 in 2012)


67,089


61,695

Inventories - net






78,692


86,916

Deferred income taxes






5,884


6,557

Prepaids







9,315


8,381

Other current assets






3,561


2,432



TOTAL CURRENT ASSETS





195,739


194,101












Property, plant and equipment - net





95,718


93,326

Other intangibles - net






12,447


14,038

Goodwill







14,608


15,537

Deferred income taxes






6,624


6,069

Other assets






9,885


9,993














TOTAL ASSETS





$ 335,021


$ 333,064












LIABILITIES AND SHAREHOLDERS' EQUITY
















Notes payable to banks






$            -


$        217

Current portion of long-term debt





267


251

Trade accounts payable






26,246


21,822

Accrued compensation and amounts withheld from employees


14,295


12,271

Accrued expenses and other liabilities





15,823


23,682



TOTAL CURRENT LIABILITIES




56,631


58,243












Long-term debt, less current portion





12,444


9,322

Other noncurrent liabilities and deferred income taxes


23,151


24,430












SHAREHOLDERS' EQUITY








PLPC shareholders' equity:









Common shares - $2 par value, 15,000,000 shares authorized, 5,360,879 and 5,377,937 issued and outstanding, net of 727,579 and 689,472 treasury shares at par, respectively, as of June 30, 2013 and December 31, 2012


10,722


10,756


Common shares issued to Rabbi Trust, 184,511 and 184,036 shares at June 30, 2013 and December 31, 2012


(6,557)


(6,522)


Deferred Compensation Liability





6,557


6,522


Paid in capital






18,672


16,355


Retained earnings






235,052


227,622


Accumulated other comprehensive loss




(21,651)


(13,664)



TOTAL SHAREHOLDERS' EQUITY


242,795


241,069














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$ 335,021


$ 333,064












 

SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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