Preformed Line Products Announces Financial Results for the Fourth Quarter and Full Year 2011
MAYFIELD VILLAGE, Ohio, March 13, 2012 /PRNewswire/ --
- Net sales in 2011 increased $86.1 million or 25% to $424.4 million, compared to $338.3 million in 2010
- Net income in 2011 of $31 million increased $7.9 million or 34% compared to 2010
- Diluted earnings per share were $5.78 per share in 2011 compared to $4.33 per share in 2010
- 2011 Net sales, net income and diluted earnings per share were all records for the Company
Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full year 2011.
Net income for the quarter ended December 31, 2011 increased 49% to $8,940,000, or $1.67 per diluted share, compared to $6,006,000, or $1.13 per diluted share, for the comparable period in 2010. Net sales in the fourth quarter of 2011 increased 14% to $106,096,000 compared to $93,318,000 in the fourth quarter of 2010.
Currency exchange rates had a negative impact on 2011 fourth quarter net income of $344,000 and on net sales of $4,154,000.
Net income for the year ended December 31, 2011 increased 34% to $30,984,000, or $5.78 per diluted share, compared to $23,113,000, or $4.33 per diluted share in 2010. Net sales for 2011 increased 25% to $424,404,000 compared to $338,305,000 in 2010.
Currency exchange rates had a positive impact on 2011 net income of $582,000 and on net sales of $10,722,000.
Excluding the impact of currency exchange rates, sales improved by 18% for the fourth quarter and 22% for the year.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "2011 was another record year for Preformed Line Products. Our sales exceeded $400 million for the first time in our 65 year history. That we have accomplished this in a weak and unstable global economy is a true testament to the talent and dedication of our worldwide team and the overall strength of the organization."
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 "Forward-Looking Statements" and "Risk Factors" in the Company's 2010 Annual Report on Form 10-K filed with the SEC on March 11, 2011 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 December 31, | Twelve month periods ended December 31, | ||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Net sales | $ 106,096 | $ 93,318 | $ 424,404 | $ 338,305 | ||||||||
Cost of products sold | 71,904 | 64,253 | 283,555 | 230,089 | ||||||||
GROSS PROFIT | 34,192 | 29,065 | 140,849 | 108,216 | ||||||||
Costs and expenses | ||||||||||||
Selling | 9,032 | 8,302 | 35,825 | 29,520 | ||||||||
General and administrative | 9,357 | 10,865 | 44,396 | 39,865 | ||||||||
Research and engineering | 3,544 | 3,566 | 13,360 | 12,040 | ||||||||
Other operating expense (income) | 243 | (944) | 1,914 | (1,689) | ||||||||
22,176 | 21,789 | 95,495 | 79,736 | |||||||||
OPERATING INCOME | 12,016 | 7,276 | 45,354 | 28,480 | ||||||||
Other income (expense) | ||||||||||||
Interest income | 153 | 113 | 575 | 374 | ||||||||
Interest expense | (173) | (191) | (827) | (649) | ||||||||
Other income | 471 | 213 | 892 | 1,978 | ||||||||
451 | 135 | 640 | 1,703 | |||||||||
INCOME BEFORE INCOME TAXES | 12,467 | 7,411 | 45,994 | 30,183 | ||||||||
Income taxes | 3,527 | 1,415 | 15,010 | 7,175 | ||||||||
NET INCOME | 8,940 | 5,996 | 30,984 | 23,008 | ||||||||
Less net (loss) attributable to noncontrolling interests, net of tax | - | (10) | - | (105) | ||||||||
NET INCOME ATTRIBUTABLE TO PLPC | $ 8,940 | $ 6,006 | $ 30,984 | $ 23,113 | ||||||||
BASIC EARNINGS PER SHARE | ||||||||||||
Net Income to PLPC common shareholders | $ 1.70 | $ 1.15 | $ 5.89 | $ 4.41 | ||||||||
DILUTED EARNINGS PER SHARE | ||||||||||||
Net Income to PLPC common shareholders | $ 1.67 | $ 1.13 | $ 5.78 | $ 4.33 | ||||||||
Cash dividends declared per share | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 | ||||||||
Weighted-average number of shares outstanding - basic | 5,249 | 5,225 | 5,259 | 5,242 | ||||||||
Weighted-average number of shares outstanding - diluted | 5,339 | 5,319 | 5,358 | 5,335 | ||||||||
PREFORMED LINE PRODUCTS COMPANY | |||||||||||
CONSOLIDATED BALANCE SHEETS | |||||||||||
(UNAUDITED) | |||||||||||
December 31, | December 31, | ||||||||||
Thousands of dollars, except share and per share data | 2011 | 2010 | |||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ 32,126 | $ 22,655 | |||||||||
Accounts receivable, less allowances of $1,627 ($1,213 in 2010) | 68,949 | 56,102 | |||||||||
Inventories - net | 88,613 | 73,121 | |||||||||
Deferred income taxes | 5,263 | 4,784 | |||||||||
Prepaids | 8,254 | 9,069 | |||||||||
Other current assets | 2,285 | 1,611 | |||||||||
TOTAL CURRENT ASSETS | 205,490 | 167,342 | |||||||||
Property and equipment - net | 82,860 | 76,266 | |||||||||
Other intangibles - net | 11,352 | 12,735 | |||||||||
Goodwill | 12,199 | 12,346 | |||||||||
Deferred income taxes | 5,585 | 3,615 | |||||||||
Other assets | 9,862 | 8,675 | |||||||||
TOTAL ASSETS | $ 327,348 | $ 280,979 | |||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||
Notes payable to banks | $ 2,030 | $ 1,246 | |||||||||
Current portion of long-term debt | 601 | 1,276 | |||||||||
Trade accounts payable | 25,630 | 27,001 | |||||||||
Accrued compensation and amounts withheld from employees | 11,472 | 9,848 | |||||||||
Accrued expenses and other liabilities | 22,100 | 17,187 | |||||||||
TOTAL CURRENT LIABILITIES | 61,833 | 56,558 | |||||||||
Long-term debt, less current portion | 27,991 | 9,374 | |||||||||
Other noncurrent liabilities and deferred income taxes | 24,666 | 18,382 | |||||||||
SHAREHOLDERS' EQUITY | |||||||||||
PLPC shareholders' equity: | |||||||||||
Common shares - $2 par value, 15,000,000 shares authorized, 5,333,630 and | |||||||||||
5,270,977 issued and outstanding, net of 639,138 and 586,746 treasury | |||||||||||
shares at par, respectively, as of December 31, 2011 and December 31, 2010 | 10,667 | 10,542 | |||||||||
Common shares issued to Rabbi Trust | (3,812) | (1,200) | |||||||||
Deferred Compensation Liability | 3,812 | 1,200 | |||||||||
Paid in capital | 12,718 | 8,748 | |||||||||
Retained earnings | 206,512 | 184,060 | |||||||||
Accumulated other comprehensive loss | (17,039) | (6,010) | |||||||||
TOTAL PLPC SHAREHOLDERS' EQUITY | 212,858 | 197,340 | |||||||||
Noncontrolling interest | - | (675) | |||||||||
TOTAL SHAREHOLDERS' EQUITY | 212,858 | 196,665 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 327,348 | $ 280,979 | |||||||||
SOURCE Preformed Line Products Company
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