MAYFIELD VILLAGE, Ohio, May 5, 2015 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter ended March 31, 2015.
Net sales for the first quarter of 2015 were $85,790,000, down 5% compared to $89,925,000 in the first quarter of 2014.
The Company posted a net loss for the first quarter 2015 of $256,000, or $.05 per share, compared to net income of $2,738,000, or $.50 per diluted share, in the first quarter of 2014.
Currency translation rates had a negative impact on 2015 first quarter net sales of $6,484,000 and a negligible impact on net income. However, losses on foreign
currency transactions had an unfavorable impact of $3,354,000 on pre-tax income.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Exceptionally weak foreign currencies eroded sales and net income during the first quarter. Excluding the impact of foreign currency translation, the Company delivered sales growth of 3%. Unrealized losses on intercompany receivables and payables had a negative $3 million impact on pretax earnings compared to a favorable impact of $700,000 in the first quarter of 2014. We also incurred over $500,000 of restructuring charges in the first quarter of 2015. Excluding the impact of the unrealized foreign currency transactions and restructuring costs, our operating income improved over the first quarter of 2014. We continue to focus on tightly controlling our expenses and maximizing our global sourcing capabilities to mitigate the impact of
geopolitical factors on our business."
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 2014 Annual Report on Form 10-K filed with the SEC on March 12, 2015 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) |
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| In thousands, except per share data |
| Three Months Ended March 31, |
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| 2015 |
| 2014 |
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| Net sales |
| $ 85,790 |
| $ 89,925 |
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| Cost of products sold |
| 61,030 |
| 62,477 |
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| GROSS PROFIT |
| 24,760 |
| 27,448 |
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| Costs and expenses |
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| Selling |
| 7,207 |
| 8,505 |
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| General and administrative |
| 10,186 |
| 11,158 |
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| Research and engineering |
| 3,721 |
| 3,775 |
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| Other operating expense (income) - net |
| 3,731 |
| (203) |
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| 24,845 |
| 23,235 |
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| OPERATING INCOME (LOSS) |
| (85) |
| 4,213 |
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| Other income (expense) |
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| Interest income |
| 102 |
| 109 |
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| Interest expense |
| (133) |
| (161) |
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| Other income (expense) - net |
| 57 |
| (24) |
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| 26 |
| (76) |
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| INCOME (LOSS) BEFORE INCOME TAXES |
| (59) |
| 4,137 |
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| Income taxes |
| 197 |
| 1,399 |
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| NET INCOME (LOSS) |
| $ (256) |
| $ 2,738 |
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| BASIC EARNINGS PER SHARE |
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| Net Income (Loss) to PLPC common shareholders |
| $ (0.05) |
| $ 0.51 |
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| DILUTED EARNINGS PER SHARE |
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| Net Income (Loss) to PLPC common shareholders |
| $ (0.05) |
| $ 0.50 |
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| Cash dividends declared per share |
| $ 0.20 |
| $ 0.20 |
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| Weighted-average number of shares outstanding - basic |
| 5,396 |
| 5,392 |
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| Weighted-average number of shares outstanding - diluted |
| 5,396 |
| 5,431 |
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PREFORMED LINE PRODUCTS COMPANY |
CONSOLIDATED BALANCE
SHEETS |
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| March 31, |
| December 31, |
Thousands of dollars, except share and per share data | 2015 |
| 2014 |
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| (Unaudited) |
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ASSETS |
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Cash and cash equivalents | $ 30,530 |
| $ 29,643 |
Accounts receivable, less allowances of $2,383 ($2,370 in 2014) | 63,426 |
| 67,942 |
Inventories - net | 76,097 |
| 80,037 |
Deferred income taxes | 8,052 |
| 7,249 |
Prepaids | 8,840 |
| 9,167 |
Other current assets | 4,262 |
| 6,625 |
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| TOTAL CURRENT ASSETS | 191,207 |
| 200,663 |
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Property, plant and equipment - net | 97,886 |
| 102,531 |
Other intangibles - net | 13,016 |
| 14,121 |
Goodwill | 16,958 |
| 17,792 |
Deferred income taxes | 7,044 |
| 5,773 |
Other assets | 11,758 |
| 13,087 |
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| TOTAL ASSETS | $ 337,869 |
| $ 353,967 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Notes payable to banks | $ 1,735 |
| $ 1,809 |
Current portion of long-term debt | 111 |
| 116 |
Trade accounts payable | 19,572 |
| 22,332 |
Accrued compensation and amounts withheld from employees | 10,318 |
| 9,876 |
Accrued expenses and other liabilities | 16,980 |
| 21,194 |
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| TOTAL CURRENT LIABILITIES | 48,716 |
| 55,327 |
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Long-term debt, less current portion | 30,741 |
| 31,749 |
Other noncurrent liabilities and deferred income taxes | 25,045 |
| 23,966 |
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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, 5,393,371 and |
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| 5,397,138 issued and outstanding, net of 824,011 and 819,424 treasury |
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| shares at par, respectively, as of March 31, 2015 and December 31, 2014 | 10,787 |
| 10,794 |
| Common shares issued to Rabbi Trust, 289,942 and 292,609 shares at |
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| March 31, 2015 and December 31, 2014 | (11,617) |
| (11,790) |
| Deferred Compensation Liability | 11,617 |
| 11,790 |
| Paid-in capital | 23,342 |
| 22,795 |
| Retained earnings | 242,900 |
| 244,470 |
| Accumulated other comprehensive loss | (43,662) |
| (35,134) |
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| TOTAL SHAREHOLDERS' EQUITY | 233,367 |
| 242,925 |
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| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 337,869 |
| $ 353,967 |
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CONTACT: Eric R. Graef, Preformed Line Products, (440) 473-9249