Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2011
-- Sales of $95 million represent a quarterly record
-- Sales were up 33% from the 1st quarter of 2010, excluding the favorable impact of currency
-- Diluted EPS of $1.30 were the 2nd highest in the Company's history
MAYFIELD VILLAGE, Ohio, May 4, 2011 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the first quarter ended March 31, 2011.
Net income for the quarter ended March 31, 2011 was $6,998,000, or $1.30 per diluted share, compared to $1,132,000, or $.21 per diluted share, for the comparable period in 2010.
Net sales for the first quarter of 2011 increased 38% to $95,088,000 compared to $68,908,000 in the first quarter of 2010.
Currency translation had a positive impact on sales and net income for the quarter of $3.3 million and $.2 million, respectively.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our first quarter results were very gratifying especially considering the continuing unstable economic environment throughout the world. I am proud of the continuing success we have achieved in integrating our two most recent acquisitions. Commodity prices continue to rise, but our programs of continuous improvement in our manufacturing processes are assisting in reducing their impact."
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, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We also provide solar hardware systems and mounting hardware for a variety of solar power applications.
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 March 31, | |||||||
2011 | 2010 | |||||||
Net sales | $ 95,088 | $ 68,908 | ||||||
Cost of products sold | 62,697 | 48,883 | ||||||
GROSS PROFIT | 32,391 | 20,025 | ||||||
Costs and expenses | ||||||||
Selling | 8,036 | 6,502 | ||||||
General and administrative | 10,962 | 9,478 | ||||||
Research and engineering | 3,362 | 2,859 | ||||||
Other operating expense (income) | (94) | (145) | ||||||
22,266 | 18,694 | |||||||
OPERATING INCOME | 10,125 | 1,331 | ||||||
Other income (expense) | ||||||||
Interest income | 151 | 83 | ||||||
Interest expense | (211) | (170) | ||||||
Other income | 184 | 351 | ||||||
124 | 264 | |||||||
INCOME BEFORE INCOME TAXES | 10,249 | 1,595 | ||||||
Income taxes | 3,395 | 561 | ||||||
NET INCOME | 6,854 | 1,034 | ||||||
Less net (loss) attributable to noncontrolling interests, net of tax | (144) | (98) | ||||||
NET INCOME ATTRIBUTABLE TO PLPC | $ 6,998 | $ 1,132 | ||||||
BASIC EARNINGS PER SHARE | ||||||||
Net Income to PLPC common shareholders | $ 1.33 | $ 0.22 | ||||||
DILUTED EARNINGS PER SHARE | ||||||||
Net Income to PLPC common shareholders | $ 1.30 | $ 0.21 | ||||||
Cash dividends declared per share | $ 0.20 | $ 0.20 | ||||||
Weighted-average number of shares outstanding - basic | 5,272 | 5,252 | ||||||
Weighted-average number of shares outstanding - diluted | 5,400 | 5,403 | ||||||
PREFORMED LINE PRODUCTS COMPANY | ||||||
CONSOLIDATED BALANCE SHEETS | ||||||
(UNAUDITED) | ||||||
March 31, | December 31, | |||||
Thousands of dollars, except share and per share data | 2011 | 2010 | ||||
ASSETS | ||||||
Cash and cash equivalents | $ 24,146 | $ 22,655 | ||||
Accounts receivable, less allowances of $1,511 ($1,213 in 2010) | 62,294 | 56,102 | ||||
Inventories - net | 81,114 | 73,121 | ||||
Deferred income taxes | 5,974 | 4,784 | ||||
Prepaids | 10,698 | 9,069 | ||||
Other current assets | 1,959 | 1,611 | ||||
TOTAL CURRENT ASSETS | 186,185 | 167,342 | ||||
Property and equipment - net | 77,987 | 76,266 | ||||
Other intangibles - net | 12,407 | 12,735 | ||||
Goodwill | 12,388 | 12,346 | ||||
Deferred income taxes | 2,882 | 3,615 | ||||
Other assets | 10,014 | 8,675 | ||||
TOTAL ASSETS | $ 301,863 | $ 280,979 | ||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||
Notes payable to banks | $ 3,584 | $ 1,246 | ||||
Current portion of long-term debt | 1,258 | 1,276 | ||||
Trade accounts payable | 27,710 | 27,001 | ||||
Accrued compensation and amounts withheld from employees | 12,419 | 9,848 | ||||
Accrued expenses and other liabilities | 17,745 | 17,187 | ||||
TOTAL CURRENT LIABILITIES | 62,716 | 56,558 | ||||
Long-term debt, less current portion | 14,798 | 9,374 | ||||
Other noncurrent liabilities and deferred income taxes | 19,831 | 19,582 | ||||
SHAREHOLDERS' EQUITY | ||||||
PLPC shareholders' equity: | ||||||
Common shares - $2 par value, 15,000,000 shares authorized, | ||||||
5,272,804 and 5,270,977 issued and outstanding, | ||||||
net of 586,746 and 586,746 treasury shares at par, respectively | 10,546 | 10,542 | ||||
Common shares issued to Rabbi Trust | (1,220) | (1,200) | ||||
Paid in capital | 9,514 | 8,748 | ||||
Retained earnings | 189,957 | 184,060 | ||||
Accumulated other comprehensive loss | (3,447) | (6,010) | ||||
TOTAL PLPC SHAREHOLDERS' EQUITY | 205,350 | 196,140 | ||||
Noncontrolling interest | (832) | (675) | ||||
TOTAL SHAREHOLDERS' EQUITY | 204,518 | 195,465 | ||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 301,863 | $ 280,979 | ||||
SOURCE Preformed Line Products Company
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