Preformed Line Products Announces Second Quarter And First Half 2014 Results

By PR Newswire,  August 08, 2014, 07:42:00 AM EDT


MAYFIELD VILLAGE, Ohio, Aug. 8, 2014 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the second quarter and the first six months of 2014.

Net income for the quarter ended June 30, 2014 was $5,080,000, or $.94 per diluted share, compared to $6,386,000 or $1.17 per diluted share, for the comparable period in 2013.

Net sales in the second quarter of 2014 were $99,981,000, compared to $111,716,000 in the second quarter of 2013.

Currency exchange rates had a negative impact on sales of $1,723,000 for the second quarter of 2014, but the effect on net income was negligible.

Net income for the six months ended June 30, 2014 was $7,818,000, or $1.44 per diluted share, compared to $11,351,000, or $2.08 per diluted share for the comparable period in 2013.

Net sales were $189,906,000 for the first six months of 2014 compared to $210,405,000 in the first six months of 2013.

Currency exchange rates had a negative impact on sales of $6,163,000 and net income of $102,000 for the first six months of 2014.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "A significant portion of our business is dependent upon utilities investing in their infrastructure.  We have seen a decrease in this investment globally due to weak economies, ever increasing regulation and geopolitical turmoil. Competition for the reduced available business naturally has an impact on margins as well.  As always, we are focused on improving operational efficiencies, disciplined cost management and providing world class product and service to our customers."

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 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, 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 "Risk Factors" and "Forward-Looking Statements" 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 June 30,



Six month periods ended June 30,









2014



2013



2014



2013













































Net sales

$    99,981



$   111,716



$    189,906



$    210,405

Cost of products sold

68,784



74,167



131,261



141,557





GROSS PROFIT

31,197



37,549



58,645



68,848























Costs and expenses

















Selling

9,061



9,291



17,566



18,352



General and administrative

10,836



12,127



21,994



23,607



Research and engineering

4,183



3,571



7,958



7,341



Other operating expense (income)

(495)



2,071



(698)



2,192









23,585



27,060



46,820



51,492



























OPERATING INCOME

7,612



10,489



11,825



17,356























Other income (expense)

















Interest income

98



134



207



250



Interest expense

(202)



(105)



(363)



(208)



Other income (expense)

98



162



74



199







(6)



191



(82)



241

























INCOME BEFORE INCOME TAXES 

7,606



10,680



11,743



17,597























Income taxes

2,526



4,294



3,925



6,246



























NET INCOME

$      5,080



$        6,386



$        7,818



$      11,351























BASIC EARNINGS PER SHARE

















Net Income to PLPC common shareholders

$        0.94



$          1.19



$          1.45



$          2.11























DILUTED EARNINGS PER SHARE

















Net Income to PLPC common shareholders

$        0.94



$          1.17



$          1.44



$          2.08























Cash dividends declared per share

$        0.20



$          0.20



$          0.40



$          0.20























Weighted-average number of shares outstanding - basic

5,389



5,368



5,390



5,372























Weighted-average number of shares outstanding - diluted

5,393



5,450



5,430



5,450























 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS













June 30,



December 31,

Thousands of dollars, except share and per share data

2014



2013



(Unaudited)





ASSETS







Cash and cash equivalents

$     24,585



$      24,291

Accounts receivable, less allowances of $2,341 ($2,136 in 2013)

75,864



67,587

Inventories - net

78,986



73,835

Deferred income taxes 

6,231



7,022

Prepaids

9,890



9,845

Other current assets

8,540



3,154





TOTAL CURRENT ASSETS

204,096



185,734













Property, plant and equipment - net

108,202



100,461

Other intangibles - net

16,494



11,787

Goodwill

19,384



13,873

Deferred income taxes 

4,060



3,416

Other assets

15,697



17,135













TOTAL ASSETS

$   367,933



$    332,406









LIABILITIES AND SHAREHOLDERS' EQUITY















Notes payable to banks

$          597



$        1,105

Current portion of long-term debt

138



195

Trade accounts payable

23,781



21,750

Accrued compensation and amounts withheld from employees

12,640



10,787

Accrued expenses and other liabilities

16,176



18,378





TOTAL CURRENT LIABILITIES

53,332



52,215









Long-term debt, less current portion

34,149



13,054

Other noncurrent liabilities and deferred income taxes

17,718



14,807









SHAREHOLDERS' EQUITY







PLPC shareholders' equity:









Common shares - $2 par value, 15,000,000 shares authorized, 5,389,992 and









    5,391,074 issued and outstanding, net of 783,418 and 779,279 treasury









     shares at par, respectively, as of June 30, 2014 and December 31, 2013

10,778



10,782



Common shares issued to Rabbi Trust, 249,557 and 253,156 shares at









     June 30, 2014 and December 31, 2013

(9,176)



(9,306)



Deferred Compensation Liability

9,176



9,306



Paid in capital

22,007



21,082



Retained earnings

243,521



238,168



Accumulated other comprehensive loss

(13,572)



(17,702)





TOTAL SHAREHOLDERS' EQUITY

262,734



252,330



























TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$   367,933



$    332,406























 

SOURCE Preformed Line Products Company



This article appears in: News Headlines

Referenced Stocks: PLPC


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