Preformed Line Products Announces Second Quarter And First Half 2014 Results

MAYFIELD VILLAGE, Ohio, Aug. 8, 2014 /PRNewswire/ -- Preformed Line Products Company (Nasdaq:  PLPC) today reported financial results for the second quarter and the first six months of 2014.

Net income for the quarter ended June 30, 2014 was $5,080,000, or $.94 per diluted share, compared to $6,386,000 or $1.17 per diluted share, for the comparable period in 2013.

Net sales in the second quarter of 2014 were $99,981,000, compared to $111,716,000 in the second quarter of 2013.

Currency exchange rates had a negative impact on sales of $1,723,000 for the second quarter of 2014, but the effect on net income was negligible.

Net income for the six months ended June 30, 2014 was $7,818,000, or $1.44 per diluted share, compared to $11,351,000, or $2.08 per diluted share for the comparable period in 2013.

Net sales were $189,906,000 for the first six months of 2014 compared to $210,405,000 in the first six months of 2013.

Currency exchange rates had a negative impact on sales of $6,163,000 and net income of $102,000 for the first six months of 2014.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "A significant portion of our business is dependent upon utilities investing in their infrastructure.  We have seen a decrease in this investment globally due to weak economies, ever increasing regulation and geopolitical turmoil. Competition for the reduced available business naturally has an impact on margins as well.  As always, we are focused on improving operational efficiencies, disciplined cost management and providing world class product and service to our customers."

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, 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, 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 2013 Annual Report on Form 10-K filed with the SEC on March 14, 2014 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,





2014


2013


2014


2013























Net sales

$    99,981


$   111,716


$    189,906


$    210,405

Cost of products sold

68,784


74,167


131,261


141,557



GROSS PROFIT

31,197


37,549


58,645


68,848












Costs and expenses









Selling

9,061


9,291


17,566


18,352


General and administrative

10,836


12,127


21,994


23,607


Research and engineering

4,183


3,571


7,958


7,341


Other operating expense (income)

(495)


2,071


(698)


2,192





23,585


27,060


46,820


51,492














OPERATING INCOME

7,612


10,489


11,825


17,356












Other income (expense)









Interest income

98


134


207


250


Interest expense

(202)


(105)


(363)


(208)


Other income (expense)

98


162


74


199




(6)


191


(82)


241













INCOME BEFORE INCOME TAXES 

7,606


10,680


11,743


17,597












Income taxes

2,526


4,294


3,925


6,246














NET INCOME

$      5,080


$        6,386


$        7,818


$      11,351












BASIC EARNINGS PER SHARE









Net Income to PLPC common shareholders

$        0.94


$          1.19


$          1.45


$          2.11












DILUTED EARNINGS PER SHARE









Net Income to PLPC common shareholders

$        0.94


$          1.17


$          1.44


$          2.08












Cash dividends declared per share

$        0.20


$          0.20


$          0.40


$          0.20












Weighted-average number of shares outstanding - basic

5,389


5,368


5,390


5,372












Weighted-average number of shares outstanding - diluted

5,393


5,450


5,430


5,450












 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS







June 30,


December 31,

Thousands of dollars, except share and per share data

2014


2013


(Unaudited)



ASSETS




Cash and cash equivalents

$     24,585


$      24,291

Accounts receivable, less allowances of $2,341 ($2,136 in 2013)

75,864


67,587

Inventories - net

78,986


73,835

Deferred income taxes 

6,231


7,022

Prepaids

9,890


9,845

Other current assets

8,540


3,154



TOTAL CURRENT ASSETS

204,096


185,734







Property, plant and equipment - net

108,202


100,461

Other intangibles - net

16,494


11,787

Goodwill

19,384


13,873

Deferred income taxes 

4,060


3,416

Other assets

15,697


17,135







TOTAL ASSETS

$   367,933


$    332,406





LIABILITIES AND SHAREHOLDERS' EQUITY








Notes payable to banks

$          597


$        1,105

Current portion of long-term debt

138


195

Trade accounts payable

23,781


21,750

Accrued compensation and amounts withheld from employees

12,640


10,787

Accrued expenses and other liabilities

16,176


18,378



TOTAL CURRENT LIABILITIES

53,332


52,215





Long-term debt, less current portion

34,149


13,054

Other noncurrent liabilities and deferred income taxes

17,718


14,807





SHAREHOLDERS' EQUITY




PLPC shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 5,389,992 and





    5,391,074 issued and outstanding, net of 783,418 and 779,279 treasury





     shares at par, respectively, as of June 30, 2014 and December 31, 2013

10,778


10,782


Common shares issued to Rabbi Trust, 249,557 and 253,156 shares at





     June 30, 2014 and December 31, 2013

(9,176)


(9,306)


Deferred Compensation Liability

9,176


9,306


Paid in capital

22,007


21,082


Retained earnings

243,521


238,168


Accumulated other comprehensive loss

(13,572)


(17,702)



TOTAL SHAREHOLDERS' EQUITY

262,734


252,330














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$   367,933


$    332,406












 

SOURCE Preformed Line Products Company



RELATED LINKS
http://www.preformed.com

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