MAYFIELD VILLAGE, Ohio, Nov. 7, 2013 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2013.
Net income for the quarter ended September 30, 2013 was $6,104,000, or $1.12 per diluted share, compared to $9,284,000, or $1.71 per diluted share, for the comparable period in 2012.
Net sales in the third quarter of 2013 were $100,828,000 compared to sales of $114,206,000 in the third quarter of 2012.
Net income for the nine months ended September 30, 2013 was $17,455,000, or $3.20 per diluted share, compared to $24,013,000, or $4.42 per diluted share for the comparable period in 2012.
Net sales were $311,233,000 for the first nine months of 2013 compared to $334,992,000 in the first nine months of 2012.
Currency exchange rates negatively impacted net sales by $4,286,000 for the quarter and $7,517,000 for the first nine months of 2013, while the negative impact on net income was $141,000 for the quarter and $465,000 for the first nine months of 2013.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "All four of our regional segments experienced decreases in net income. The decrease in net income is primarily sales and mix driven. We expected a decrease in sales in the United States during 2013 as a number of unique transmissions projects were completed during 2012. Throughout our foreign operations we are seeing government-owned utilities deferring their transmission and distribution projects due to ongoing weak global economic conditions resulting in lower sales for our subsidiaries. We continue to attend to the right sizing of our operations to meet current demand while remaining prepared for projected market growth as projects come back on stream."
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 is 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.
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PREFORMED LINE PRODUCTS COMPANY
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STATEMENTS OF CONSOLIDATED OPERATIONS
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(UNAUDITED)
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In thousands, except per share data
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Three month periods ended September 30,
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Nine month periods ended September 30,
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2013
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2012
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2013
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2012
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Net sales
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$ 100,828
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$ 114,206
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$ 311,233
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$ 334,992
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Cost of products sold
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69,168
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75,699
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210,725
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223,507
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GROSS PROFIT
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31,660
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38,507
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100,508
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111,485
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Costs and expenses
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Selling
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8,874
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9,344
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27,226
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27,746
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General and administrative
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10,386
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12,788
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33,993
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36,944
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Research and engineering
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3,714
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3,893
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11,055
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11,295
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Other operating expense (income)
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419
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(677)
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2,611
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562
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23,393
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25,348
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74,885
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76,547
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OPERATING INCOME
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8,267
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13,159
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25,623
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34,938
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Other income (expense)
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Interest income
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204
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160
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454
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476
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Interest expense
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(121)
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(144)
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(329)
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(489)
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Other income
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194
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235
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393
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589
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277
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251
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518
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576
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INCOME BEFORE INCOME TAXES
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8,544
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13,410
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26,141
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35,514
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Income taxes
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2,440
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4,126
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8,686
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11,501
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NET INCOME
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$ 6,104
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$ 9,284
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$ 17,455
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$ 24,013
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BASIC EARNINGS PER SHARE
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Net Income to PLPC common shareholders
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$ 1.14
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$ 1.75
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$ 3.25
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$ 4.51
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DILUTED EARNINGS PER SHARE
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Net Income to PLPC common shareholders
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$ 1.12
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$ 1.71
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$ 3.20
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$ 4.42
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Cash dividends declared per share
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$ 0.20
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$ 0.20
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$ 0.40
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$ 0.60
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Weighted-average number of shares outstanding - basic
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5,361
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5,319
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5,369
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5,328
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Weighted-average number of shares outstanding - diluted
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5,449
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5,431
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5,450
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5,432
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PREFORMED LINE PRODUCTS COMPANY
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CONSOLIDATED BALANCE SHEETS
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(UNAUDITED)
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September 30,
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December 31,
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Thousands of dollars, except share and per share data
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2013
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2012
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ASSETS
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Cash and cash equivalents
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$ 31,153
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$ 28,120
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Accounts receivable, less allowances of $2,032 ($2,039 in 2012)
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73,917
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61,695
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Inventories - net
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73,930
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86,916
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Deferred income taxes
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6,752
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6,557
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Prepaids
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9,301
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8,381
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Other current assets
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3,638
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2,432
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TOTAL CURRENT ASSETS
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198,691
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194,101
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Property, plant and equipment - net
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98,453
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93,326
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Other intangibles - net
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12,365
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14,038
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Goodwill
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14,972
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15,537
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Deferred income taxes
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6,989
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6,069
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Other assets
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13,572
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9,993
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TOTAL ASSETS
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$ 345,042
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$ 333,064
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Notes payable to banks
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$ 501
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$ 217
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Current portion of long-term debt
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191
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251
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Trade accounts payable
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23,837
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21,822
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Accrued compensation and amounts withheld from employees
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15,214
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12,271
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Accrued expenses and other liabilities
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17,333
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23,682
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TOTAL CURRENT LIABILITIES
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57,076
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58,243
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Long-term debt, less current portion
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14,951
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9,322
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Other noncurrent liabilities and deferred income taxes
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21,960
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24,430
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SHAREHOLDERS' EQUITY
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PLPC shareholders' equity:
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Common shares - $2 par value, 15,000,000 shares authorized, 5,361,155 and 5,377,937 issued and outstanding, net of 732,579 and 689,472 treasury shares at par, respectively, as of September 30, 2013 and December 31, 2012
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10,722
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10,756
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Common shares issued to Rabbi Trust, 184,787 and 184,036 shares at September 30, 2013 and December 31, 2012
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(6,577)
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(6,522)
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Deferred Compensation Liability
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6,577
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6,522
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Paid in capital
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19,828
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16,355
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Retained earnings
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239,703
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227,622
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Accumulated other comprehensive loss
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(19,198)
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(13,664)
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TOTAL SHAREHOLDERS' EQUITY
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251,055
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241,069
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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$ 345,042
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$ 333,064
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SOURCE Preformed Line Products Company