MAYFIELD VILLAGE, Ohio, Aug. 6, 2015 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for its second quarter and first six months of 2015.
Net income for the quarter ended June 30, 2015 was $3,680,000, or $.68 per diluted share, compared to $5,080,000 or $.94 per diluted share, for the comparable period in 2014.
Net sales in the second quarter of 2015 were $87,869,000, compared to $99,981,000 in the second quarter of 2014.
Currency exchange rates had a negative impact on sales of $8,320,000 for the second quarter of 2015, but the effect on net income was negligible.
Net income for the six months ended June
30, 2015 was $3,424,000, or $.63 per diluted share, compared to $7,818,000, or $1.44 per diluted share, for the comparable period in 2014.
Net sales were $173,659,000 for the first six months of 2015 compared to $189,906,000 in the first six months of 2014.
Currency exchange rates had a negative impact on sales of $14,761,000 and a negligible impact on net income for the first six months of 2015.
In addition to the negative impact of currency exchange rates, comparative results were also affected primarily by the translation of intercompany receivables and payables. The impact was negligible in the second quarter of 2015 and was a favorable unrealized gain in the second quarter of 2014, increasing pretax income by $981,000. For the six months ended June 30, 2015, an unrealized loss of $3,376,000 was recorded compared to an unrealized gain for the six months of 2014
of $1,610,000, resulting in an unfavorable $4,986,000 difference in pretax income when comparing the two periods.
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 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 June 30 |
| Six Months Ended June 30 |
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| 2015 |
| 2014 |
| 2015 |
| 2014 |
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| Net sales |
| $ 87,869 |
| $ 99,981 |
| $ 173,659 |
| $ 189,906 |
| Cost of products sold |
| 61,425 |
| 68,784 |
| 122,455 |
| 131,261 |
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| GROSS PROFIT |
| 26,444 |
| 31,197 |
| 51,204 |
| 58,645 |
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| Costs and expenses |
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| Selling |
| 7,752 |
| 9,061 |
| 14,960 |
| 17,566 |
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| General and administrative |
| 9,391 |
| 10,836 |
| 19,577 |
| 21,994 |
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| Research and engineering |
| 3,864 |
| 4,183 |
| 7,585 |
| 7,958 |
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| Other operating expense (income) - net |
| 252 |
| (495) |
| 3,983 |
| (698) |
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| 21,259 |
| 23,585 |
| 46,105 |
| 46,820 |
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| OPERATING INCOME |
| 5,185 |
| 7,612 |
| 5,099 |
| 11,825 |
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| Other income (expense) |
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| Interest income |
| 112 |
| 98 |
| 214 |
| 207 |
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| Interest expense |
| (149) |
| (202) |
| (282) |
| (363) |
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| Other income (expense) - net |
| (682) |
| 98 |
| (625) |
| 74 |
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| (719) |
| (6) |
| (693) |
| (82) |
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| INCOME BEFORE INCOME TAXES |
| 4,466 |
| 7,606 |
| 4,406 |
| 11,743 |
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| Income taxes |
| 786 |
| 2,526 |
| 982 |
| 3,925 |
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| NET INCOME |
| $ 3,680 |
| $ 5,080 |
| $ 3,424 |
| $ 7,818 |
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| BASIC EARNINGS PER SHARE |
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| Net Income |
| $ 0.68 |
| $ 0.94 |
| $ 0.63 |
| $ 1.45 |
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| DILUTED EARNINGS PER SHARE |
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| Net Income |
| $ 0.68 |
| $ 0.94 |
| $ 0.63 |
| $ 1.44 |
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| Cash dividends declared per share |
| $ 0.20 |
| $ 0.20 |
| $ 0.40 |
| $ 0.40 |
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| Weighted-average number of shares outstanding - basic |
| 5,392 |
| 5,389 |
| 5,394 |
| 5,390 |
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| Weighted-average number of shares outstanding - diluted |
| 5,393 |
| 5,393 |
| 5,396 |
| 5,430 |
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| PREFORMED LINE PRODUCTS COMPANY |
| CONSOLIDATED BALANCE SHEETS |
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| June 30, |
| December 31, |
| (Thousands of dollars, except share and per share data) |
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| 2015 |
| 2014 |
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| (Unaudited) |
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| ASSETS |
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| Cash and cash equivalents |
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| $ 30,730 |
| $ 29,643 |
| Accounts receivable, less allowances of $2,499 ($2,370 in 2014) |
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| 63,270 |
| 67,942 |
| Inventories - net |
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| 78,133 |
| 80,037 |
| Deferred income taxes |
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| 8,334 |
| 7,249 |
| Prepaids |
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| 12,109 |
| 9,167 |
| Other current assets |
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| 7,899 |
| 6,625 |
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| TOTAL CURRENT ASSETS |
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| 200,475 |
| 200,663 |
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| Property, plant and equipment - net |
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| 97,543 |
| 102,531 |
| Other intangibles - net |
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| 12,484 |
| 14,121 |
| Goodwill |
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| 16,575 |
| 17,792 |
| Deferred income taxes |
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| 7,220 |
| 5,773 |
| Other assets |
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| 10,747 |
| 13,087 |
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| TOTAL ASSETS |
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| $ 345,044 |
| $ 353,967 |
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| LIABILITIES AND SHAREHOLDERS' EQUITY |
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| Notes payable to banks |
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| $ 2,431 |
| $ 1,809 |
| Current portion of long-term debt |
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| 112 |
| 116 |
| Trade accounts payable |
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| 23,582 |
| 22,332 |
| Accrued compensation and amounts withheld from employees |
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| 10,924 |
| 9,876 |
| Accrued expenses and other liabilities |
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| 18,287 |
| 21,194 |
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| TOTAL CURRENT LIABILITIES |
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| 55,336 |
| 55,327 |
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| Long-term debt, less current portion |
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| 30,743 |
| 31,749 |
| Other noncurrent liabilities and deferred income taxes |
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| 23,532 |
| 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, 5,391,671 and |
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| 5,397,138 issued and outstanding, net of 827,211 and 819,424 treasury |
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| shares at par, respectively, as of June 30, 2015 and December 31, 2014 |
| 10,781 |
| 10,794 |
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| Common shares issued to Rabbi Trust, 290,470 and 292,609 shares at |
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| June 30, 2015 and December 31, 2014 |
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| (11,637) |
| (11,790) |
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| Deferred Compensation Liability |
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| 11,637 |
| 11,790 |
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| Paid-in capital |
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| 23,311 |
| 22,795 |
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| Retained earnings |
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| 245,346 |
| 244,470 |
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| Accumulated other comprehensive loss |
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| (44,005) |
| (35,134) |
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| TOTAL SHAREHOLDERS' EQUITY |
|
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| 235,433 |
| 242,925 |
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| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ 345,044 |
| $ 353,967 |
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CONTACT: Eric R. Graef, Preformed Line Products, (440) 473-9249