MAYFIELD VILLAGE, Ohio, March 8, 2019 /PRNewswire/ --
Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full
year 2018.
Net sales in the fourth quarter of 2018 were $105.4 million compared to $96.9 million in the fourth quarter of 2017. Net sales for 2018 were $420.9
million compared to $378.2 million in 2017. This represents a 9% increase for the
fourth quarter and an 11% increase for the year.
The U.S. Tax Cuts and Jobs Act (the "Tax Act") enacted during December 2017 adversely impacted
net income during the fourth quarter of 2017 and for the year as a result of a one-time estimated net tax expense of $5.8 million. The expense primarily related to taxes on the Company's unremitted foreign earnings and
profits and re-measurement of the Company's deferred tax assets and liabilities. This negatively impacted earnings per
diluted share by $1.11 for the fourth quarter of 2017, and $1.14 per
diluted share for the year. In 2018, there was a $1.9 million reduction in the estimate,
which favorably impacted earnings per diluted share by $.37 for the year.
Net income for the quarter ended December 31, 2018 was $5.3
million, or $1.02 per diluted share, compared to $.7 million,
or $.14 per diluted share, for the comparable period in 2017, including the negative impacts from
the Tax Act. Net income for the year ended December 31, 2018 was $26.6
million, or $5.21 per diluted share, compared to $12.7
million, or $2.47 per diluted share in 2017.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "The fourth quarter completed a record
year of domestic sales and four consecutive quarters of double-digit sales growth in local currencies across the Company.
We recognize the competitive landscape continues to be challenging and world economic conditions uncertain, so we remain
committed to expanding our technical expertise and high-quality product offering. We are confident that our unrivaled
customer service will continue to drive top line expansion in the markets we serve."
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 relative degree of competitive
and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the
manufacture of products, and 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, and
other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2017 Annual Report on
Form 10-K filed with the SEC on March 9, 2018 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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(In thousands, except per share data)
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Three Months Ended December 31
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Twelve Months Ended December 31
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2018
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2017
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2018
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2017
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Net sales
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$ 105,411
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$ 96,892
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$ 420,878
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$ 378,212
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Cost of products sold
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73,392
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66,137
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288,647
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259,584
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GROSS PROFIT
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32,019
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30,755
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132,231
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118,628
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Costs and expenses
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Selling
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9,061
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8,180
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36,358
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34,048
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General and administrative
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11,539
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11,017
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45,398
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43,160
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Research and engineering
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4,094
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3,505
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15,107
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14,327
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Other operating expense - net
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(516)
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307
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2,434
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985
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24,178
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23,009
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99,297
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92,520
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OPERATING INCOME
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7,841
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7,746
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32,934
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26,108
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Other income (expense)
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Interest income
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146
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104
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|
486
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430
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Interest expense
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(298)
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(230)
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(1,290)
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(1,061)
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Other income - net
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190
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|
71
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|
458
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329
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38
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(55)
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(346)
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(302)
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INCOME BEFORE INCOME TAXES
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7,879
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7,691
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32,588
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25,806
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Income taxes
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2,615
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6,989
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6,007
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13,152
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NET INCOME
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$ 5,264
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$ 702
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$ 26,581
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$ 12,654
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BASIC EARNINGS PER SHARE
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Net Income
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$
1.05
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$ 0.14
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$
5.28
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$ 2.48
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DILUTED EARNINGS PER SHARE
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Net Income
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$
1.02
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$ 0.14
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$
5.21
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$ 2.47
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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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$
0.80
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$ 0.80
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Weighted-average number of shares outstanding - basic
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5,012
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5,070
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5,032
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5,102
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Weighted-average number of shares outstanding - diluted
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5,173
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5,195
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5,107
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5,133
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PREFORMED LINE PRODUCTS COMPANY
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CONSOLIDATED BALANCE SHEETS
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December 31,
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December 31,
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(Thousands of dollars, except share and per share data)
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2018
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2017
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ASSETS
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Cash and cash equivalents
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$ 43,609
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$ 44,358
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Accounts receivable, less allowances of $3,178 ($3,325 in 2017)
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73,139
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73,972
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Inventories - net
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85,259
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77,886
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Prepaids
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9,374
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8,700
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Other current assets
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2,882
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2,214
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TOTAL CURRENT ASSETS
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214,263
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207,130
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Property, plant and equipment - net
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102,955
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108,598
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Other intangibles - net
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8,458
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10,020
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Goodwill
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15,621
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16,544
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Deferred income taxes
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6,900
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7,774
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Other assets
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10,600
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9,719
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TOTAL ASSETS
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$ 358,797
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$ 359,785
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LIABILITIES AND SHAREHOLDERS' EQUITY
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Trade accounts payable
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$ 26,414
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$ 25,141
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Notes payable to banks
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9,042
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864
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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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11,153
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11,461
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Accrued expenses and other liabilities
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21,430
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23,919
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TOTAL CURRENT LIABILITIES
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69,487
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62,833
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Long-term debt, less current portion
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24,960
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34,598
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Other noncurrent liabilities and deferred income taxes
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|
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14,980
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23,817
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|
|
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SHAREHOLDERS' EQUITY
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Shareholders' equity:
|
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|
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Common shares - $2 par value, 15,000,000 shares authorized, 5,020,410
and
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5,038,207 issued and outstanding, as of December 31,
2018 and December 31, 2017
|
12,662
|
|
12,593
|
|
Common shares issued to rabbi trust, 269,630 and 298,026 shares
at
|
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December 31, 2018 and December 31, 2017,
respectively
|
|
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(11,008)
|
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(11,834)
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Deferred Compensation Liability
|
|
|
|
|
11,008
|
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11,834
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Paid-in capital
|
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|
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34,401
|
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29,734
|
|
Retained earnings
|
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|
|
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334,170
|
|
311,765
|
|
Treasury shares, at cost, 1,310,387 and 1,258,069 shares
at
|
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|
|
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|
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December 31, 2018 and December 31, 2017,
respectively
|
|
|
(72,280)
|
|
(68,115)
|
|
Accumulated other comprehensive loss
|
|
|
|
(59,583)
|
|
(47,440)
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|
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TOTAL SHAREHOLDERS' EQUITY
|
|
|
|
249,370
|
|
238,537
|
|
|
|
|
|
|
|
|
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
|
|
$ 358,797
|
|
$ 359,785
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SOURCE Preformed Line Products Company