MAYFIELD VILLAGE, Ohio, Nov. 3, 2017 /PRNewswire/
-- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for its third quarter and first
nine months of 2017.
Net income for the quarter ended September 30, 2017 was $6.3
million, or $1.23 per diluted share, compared to $4.7 million,
or $.92 per diluted share, for the comparable period in 2016.
Net sales in the third quarter of 2017 were $99.2 million, compared to $88.3 million in the third quarter of 2016.
Net income for the nine months ended September 30, 2017 was $12.0
million, or $2.33 per diluted share, compared to $10.2
million, or $1.95 per diluted share, for the comparable period in 2016.
Net sales were $281.3 million for the first nine months of 2017 compared to $250.2 million in the first nine months of 2016.
Currency translation rates favorably impacted net sales by $1.6 million for the third quarter
and $3.0 million for the first nine months of 2017, and had a negligible impact on net income for
the third quarter and for the first nine months of 2017.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our world-wide balanced business
portfolio has now delivered double-digit consolidated sales growth in back-to-back quarters. Even though there has been no
relief in rising raw material costs, our gross profit growth exceeded our sales growth for the quarter. This led us to our
largest third quarter bottom line results and generation of cash flow from operations in the last five years."
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 two domestic
manufacturing centers located in Rogers, Arkansas and Albemarle, North Carolina. The
Company serves its worldwide market through international operations in Argentina, Australia, Brazil, Canada, China, Colombia, 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 and the mix of products sold, the Company's ability to continue to
develop proprietary technology and maintain high quality products and customer service to meet or exceed new industry performance
standards and individual customer expectations, the Company's ability to strengthen and retain relationships with the Company's
customers and expand geographically, 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 2016
Annual Report on Form 10-K filed with the SEC on March 10, 2017 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 Months September 30
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Nine Months September 30
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2017
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2016
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2017
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2016
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Net sales
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$ 99,239
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$ 88,299
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$ 281,320
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$ 250,202
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Cost of products sold
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65,704
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59,444
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193,446
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170,252
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GROSS PROFIT
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33,535
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28,855
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87,874
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79,950
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Costs and expenses
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Selling
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8,957
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8,022
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25,867
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23,836
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General and administrative
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11,042
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10,579
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32,143
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31,628
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Research and engineering
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3,520
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3,433
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10,821
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10,778
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Other operating expense (income) - net
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206
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196
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681
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(683)
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23,725
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22,230
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69,512
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65,559
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OPERATING INCOME
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9,810
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6,625
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18,362
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14,391
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Other income (expense)
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Interest income
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62
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63
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325
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206
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Interest expense
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(255)
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(264)
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(831)
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(588)
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Other income (expense) - net
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122
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110
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259
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(46)
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(71)
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(91)
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(247)
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(428)
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INCOME BEFORE INCOME TAXES
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9,739
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6,534
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18,115
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13,963
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Income taxes
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3,461
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1,792
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6,163
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3,809
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NET INCOME
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$ 6,278
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$ 4,742
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$ 11,952
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$ 10,154
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BASIC EARNINGS PER SHARE
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Net Income
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$
1.23
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$ 0.92
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$
2.34
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$ 1.96
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DILUTED EARNINGS PER SHARE
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Net Income
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$
1.23
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$ 0.92
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$
2.33
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$ 1.95
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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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$
0.60
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$ 0.60
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Weighted-average number of shares outstanding - basic
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5,104
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5,146
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5,113
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5,180
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Weighted-average number of shares outstanding - diluted
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5,120
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5,169
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5,129
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5,200
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PREFORMED LINE PRODUCTS COMPANY
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CONSOLIDATED BALANCE SHEETS
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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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2017
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2016
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(Unaudited)
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ASSETS
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Cash and cash equivalents
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$ 39,163
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$ 30,737
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Accounts receivable, less allowances of $3,440 ($3,210 in 2016)
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80,370
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63,415
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Inventories - net
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75,675
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74,484
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Prepaids
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4,814
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12,035
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Other current assets
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6,750
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8,436
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TOTAL CURRENT ASSETS
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206,772
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189,107
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Property, plant and equipment - net
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108,307
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105,104
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Other intangibles - net
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10,404
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10,475
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Goodwill
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16,689
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15,769
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Deferred income taxes
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10,321
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10,208
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Other assets
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10,132
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10,274
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TOTAL ASSETS
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$ 362,625
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$ 340,937
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Trade accounts payable
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$ 24,725
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$ 21,978
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Notes payable to banks
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562
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1,315
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Current portion of long-term debt
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1,448
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1,448
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Accrued compensation and amounts withheld from employees
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13,849
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10,040
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Accrued expenses and other liabilities
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24,984
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20,674
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TOTAL CURRENT LIABILITIES
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65,568
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55,455
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Long-term debt, less current portion
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32,828
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42,943
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Other noncurrent liabilities and deferred income taxes
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19,577
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18,996
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SHAREHOLDERS' EQUITY
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Shareholders' equity:
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Common shares - $2 par value, 15,000,000 shares authorized, 5,091,381
and
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5,117,753 issued and outstanding, as of
September 30, 2017 and December 31, 2016
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12,514
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12,508
|
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Common shares issued to rabbi trust, 298,160 and 297,281 shares
at
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September 30,
2017 and December 31, 2016, respectively
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(12,109)
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(12,054)
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Deferred Compensation Liability
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12,109
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12,054
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Paid-in capital
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26,983
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24,629
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Retained earnings
|
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312,206
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303,415
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Treasury shares, at cost, 1,165,736 and 1,136,443 shares at
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September 30, 2017
and December 31, 2016, respectively
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(61,129)
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(59,640)
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Accumulated other comprehensive loss
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(45,922)
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(57,369)
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TOTAL SHAREHOLDERS' EQUITY
|
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244,652
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223,543
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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|
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$ 362,625
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$ 340,937
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SOURCE Preformed Line Products