MAYFIELD VILLAGE, Ohio, May 2, 2014 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the first quarter ended March 31, 2014.
Net income for the quarter ended March 31, 2014 was $2,738,000, or $.50 per diluted share, compared to $4,965,000, or $.91 per diluted share, for the comparable period in 2013.
Net sales for the first quarter of 2014 were $89,925,000 compared to $98,689,000 in the first quarter of 2013.
Currency exchange rates had a negative impact on 2014 first quarter net sales and net income of $4,436,000 and $119,000, respectively.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "First quarter results were certainly disappointing, particularly in comparison to previous periods that involved significant spending by the utilities on transmission projects. There are no similar projects taking place at this time. In fact, the ongoing extreme weakness in the U.S. economy coupled with a peculiarly harsh and extended winter has placed a significant damper on both new construction and maintenance activities. Globally, we are operating in a slow to no growth, yet highly competitive environment which we are addressing through constant innovation, exceptional customer service and a constant focus on improving productivity."
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 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 "Forward-Looking Statements" and "Risk Factors" 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 March 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 89,925
|
|
$ 98,689
|
|
|
Cost of products sold
|
62,477
|
|
67,390
|
|
|
|
GROSS PROFIT
|
27,448
|
|
31,299
|
|
|
|
|
|
|
|
|
|
Costs and expenses
|
|
|
|
|
|
Selling
|
8,505
|
|
9,061
|
|
|
General and administrative
|
11,158
|
|
11,480
|
|
|
Research and engineering
|
3,775
|
|
3,770
|
|
|
Other operating expense (income)
|
(203)
|
|
121
|
|
|
|
|
23,235
|
|
24,432
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
|
4,213
|
|
6,867
|
|
|
|
|
|
|
|
|
|
Other income (expense)
|
|
|
|
|
|
Interest income
|
109
|
|
116
|
|
|
Interest expense
|
(161)
|
|
(103)
|
|
|
Other income (expense)
|
(24)
|
|
37
|
|
|
|
|
(76)
|
|
50
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME TAXES
|
4,137
|
|
6,917
|
|
|
|
|
|
|
|
|
|
Income taxes
|
1,399
|
|
1,952
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
|
$ 2,738
|
|
$ 4,965
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER SHARE
|
|
|
|
|
|
Net Income to PLPC common shareholders
|
$ 0.51
|
|
$ 0.92
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS PER SHARE
|
|
|
|
|
|
Net Income to PLPC common shareholders
|
$ 0.50
|
|
$ 0.91
|
|
|
|
|
|
|
|
|
|
Cash dividends declared per share
|
$ 0.20
|
|
$ 0
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding - basic
|
5,392
|
|
5,377
|
|
|
|
|
|
|
|
|
|
Weighted-average number of shares outstanding - diluted
|
5,431
|
|
5,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFORMED LINE PRODUCTS COMPANY
|
|
CONSOLIDATED BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December 31,
|
|
Thousands of dollars, except share and per share data
|
2014
|
|
2013
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash equivalents
|
$ 21,173
|
|
$ 24,291
|
|
Accounts receivable, less allowances of $2,100 ($2,136 in 2013)
|
74,957
|
|
67,587
|
|
Inventories - net
|
79,638
|
|
73,835
|
|
Deferred income taxes
|
6,463
|
|
7,022
|
|
Prepaids
|
|
10,333
|
|
9,845
|
|
Other current assets
|
3,736
|
|
3,154
|
|
|
TOTAL CURRENT ASSETS
|
196,300
|
|
185,734
|
|
|
|
|
|
|
|
Property, plant and equipment - net
|
105,146
|
|
100,461
|
|
Other intangibles - net
|
16,549
|
|
11,787
|
|
Goodwill
|
|
19,181
|
|
13,873
|
|
Deferred income taxes
|
3,922
|
|
3,416
|
|
Other assets
|
17,486
|
|
17,135
|
|
|
|
|
|
|
|
|
TOTAL ASSETS
|
$ 358,584
|
|
$ 332,406
|
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Notes payable to banks
|
$ 2,923
|
|
$ 1,105
|
|
Current portion of long-term debt
|
162
|
|
195
|
|
Trade accounts payable
|
22,483
|
|
21,750
|
|
Accrued compensation and amounts withheld from employees
|
11,856
|
|
10,787
|
|
Accrued expenses and other liabilities
|
14,938
|
|
18,378
|
|
|
TOTAL CURRENT LIABILITIES
|
52,362
|
|
52,215
|
|
|
|
|
|
|
|
Long-term debt, less current portion
|
32,931
|
|
13,054
|
|
Other noncurrent liabilities and deferred income taxes
|
17,881
|
|
14,807
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY
|
|
|
|
|
PLPC shareholders' equity:
|
|
|
|
|
Common shares - $2 par value, 15,000,000 shares authorized, 5,388,733 and 5,391,074 issued and outstanding, net of 783,418 and 779,279 treasury shares at par, respectively, as of March 31, 2014 and December 31, 2013
|
10,777
|
|
10,782
|
|
Common shares issued to Rabbi Trust, 249,198 and 253,156 shares at March 31, 2014 and December 31, 2013
|
(9,156)
|
|
(9,306)
|
|
Deferred Compensation Liability
|
9,156
|
|
9,306
|
|
Paid in capital
|
21,955
|
|
21,082
|
|
Retained earnings
|
239,548
|
|
238,168
|
|
Accumulated other comprehensive loss
|
(15,870)
|
|
(17,702)
|
|
|
TOTAL SHAREHOLDERS' EQUITY
|
256,410
|
|
252,330
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ 359,584
|
|
$ 332,406
|
|
|
|
|
|
|
SOURCE Preformed Line Products Company