Preformed Line Products Announces Second Quarter and First Half 2015 Results

Aug 06, 2015, 09:02 ET from Preformed Line Products Company

MAYFIELD VILLAGE, Ohio, Aug. 6, 2015 /PRNewswire/ -- Preformed Line Products Company (Nasdaq:   PLPC) today reported financial results for its second quarter and first six months of 2015.

Net income for the quarter ended June 30, 2015 was $3,680,000, or $.68 per diluted share, compared to $5,080,000 or $.94 per diluted share, for the comparable period in 2014.

Net sales in the second quarter of 2015 were $87,869,000, compared to $99,981,000 in the second quarter of 2014.

Currency exchange rates had a negative impact on sales of $8,320,000 for the second quarter of 2015, but the effect on net income was negligible.

Net income for the six months ended June 30, 2015 was $3,424,000, or $.63 per diluted share, compared to $7,818,000, or $1.44 per diluted share, for the comparable period in 2014.

Net sales were $173,659,000 for the first six months of 2015 compared to $189,906,000 in the first six months of 2014.

Currency exchange rates had a negative impact on sales of $14,761,000 and a negligible impact on net income for the first six months of 2015. 

In addition to the negative impact of currency exchange rates, comparative results were also affected primarily by the translation of intercompany receivables and payables.  The impact was negligible in the second quarter of 2015 and was a favorable unrealized gain in the second quarter of 2014, increasing pretax income by $981,000.  For the six months ended June 30, 2015, an unrealized loss of $3,376,000 was recorded compared to an unrealized gain for the six months of 2014 of $1,610,000, resulting in an unfavorable $4,986,000 difference in pretax income when comparing the two periods.

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 2014 Annual Report on Form 10-K filed with the SEC on March 12, 2015 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 Months Ended June 30


Six Months Ended June 30






2015


2014


2015


2014


























Net sales


$                87,869


$          99,981


$           173,659


$        189,906


Cost of products sold


61,425


68,784


122,455


131,261




GROSS PROFIT


26,444


31,197


51,204


58,645














Costs and expenses











Selling


7,752


9,061


14,960


17,566



General and administrative


9,391


10,836


19,577


21,994



Research and engineering


3,864


4,183


7,585


7,958



Other operating expense (income) - net


252


(495)


3,983


(698)






21,259


23,585


46,105


46,820
















OPERATING INCOME


5,185


7,612


5,099


11,825














Other income (expense)











Interest income


112


98


214


207



Interest expense


(149)


(202)


(282)


(363)



Other income (expense) - net


(682)


98


(625)


74






(719)


(6)


(693)


(82)
















INCOME BEFORE INCOME TAXES 


4,466


7,606


4,406


11,743














Income taxes


786


2,526


982


3,925
















NET INCOME


$                 3,680


$           5,080


$               3,424


$            7,818














BASIC EARNINGS PER SHARE











Net Income


$                   0.68


$             0.94


$                0.63


$             1.45














DILUTED EARNINGS PER SHARE











Net Income 


$                   0.68


$             0.94


$                0.63


$             1.44














Cash dividends declared per share


$                   0.20


$             0.20


$                0.40


$             0.40














Weighted-average number of shares outstanding - basic


5,392


5,389


5,394


5,390














Weighted-average number of shares outstanding - diluted


5,393


5,393


5,396


5,430













 


PREFORMED LINE PRODUCTS COMPANY


CONSOLIDATED BALANCE SHEETS
























June 30,


December 31,


(Thousands of dollars, except share and per share data)




2015


2014










(Unaudited)




ASSETS











Cash and cash equivalents






$               30,730


$               29,643


Accounts receivable, less allowances of $2,499 ($2,370 in 2014)




63,270


67,942


Inventories - net






78,133


80,037


Deferred income taxes 






8,334


7,249


Prepaids







12,109


9,167


Other current assets






7,899


6,625




TOTAL CURRENT ASSETS





200,475


200,663














Property, plant and equipment - net





97,543


102,531


Other intangibles - net






12,484


14,121


Goodwill







16,575


17,792


Deferred income taxes 






7,220


5,773


Other assets






10,747


13,087
















TOTAL ASSETS





$             345,044


$             353,967














LIABILITIES AND SHAREHOLDERS' EQUITY




















Notes payable to banks






$                2,431


$                1,809


Current portion of long-term debt





112


116


Trade accounts payable






23,582


22,332


Accrued compensation and amounts withheld from employees




10,924


9,876


Accrued expenses and other liabilities





18,287


21,194




TOTAL CURRENT LIABILITIES




55,336


55,327














Long-term debt, less current portion





30,743


31,749


Other noncurrent liabilities and deferred income taxes




23,532


23,966














SHAREHOLDERS' EQUITY









PLPC shareholders' equity:










Common shares - $2 par value, 15,000,000 shares authorized, 5,391,671 and







    5,397,138 issued and outstanding, net of 827,211 and 819,424 treasury







    shares at par, respectively, as of June 30, 2015 and December 31, 2014


10,781


10,794



Common shares issued to Rabbi Trust, 290,470 and 292,609 shares at








     June 30, 2015 and December 31, 2014




(11,637)


(11,790)



Deferred Compensation Liability





11,637


11,790



Paid-in capital






23,311


22,795



Retained earnings






245,346


244,470



Accumulated other comprehensive loss





(44,005)


(35,134)




TOTAL SHAREHOLDERS' EQUITY




235,433


242,925
















TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$             345,044


$             353,967













 

 

 

 

SOURCE Preformed Line Products Company



RELATED LINKS

http://www.preformed.com