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)
|
|
|
|
|
|
|
|
|
|
|
In thousands,
except per share data
|
|
Three Months Ended
March 31,
|
|
|
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
85,790
|
|
$
89,925
|
|
|
Cost of products
sold
|
|
61,030
|
|
62,477
|
|
|
|
|
GROSS
PROFIT
|
|
24,760
|
|
27,448
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Selling
|
|
7,207
|
|
8,505
|
|
|
|
General and
administrative
|
|
10,186
|
|
11,158
|
|
|
|
Research and
engineering
|
|
3,721
|
|
3,775
|
|
|
|
Other operating
expense (income) - net
|
|
3,731
|
|
(203)
|
|
|
|
|
|
|
24,845
|
|
23,235
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
(85)
|
|
4,213
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
102
|
|
109
|
|
|
|
Interest
expense
|
|
(133)
|
|
(161)
|
|
|
|
Other income
(expense) - net
|
|
57
|
|
(24)
|
|
|
|
|
|
|
26
|
|
(76)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
|
(59)
|
|
4,137
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
197
|
|
1,399
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
(256)
|
|
$
2,738
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
Net Income (Loss) to
PLPC common shareholders
|
|
$
(0.05)
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
Net Income (Loss) to
PLPC common shareholders
|
|
$
(0.05)
|
|
$
0.50
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,396
|
|
5,392
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,396
|
|
5,431
|
|
|
|
|
|
|
|
|
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
Thousands of
dollars, except share and per share data
|
2015
|
|
2014
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
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
|
|
|
TOTAL CURRENT
ASSETS
|
191,207
|
|
200,663
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
337,869
|
|
$
353,967
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
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
|
|
|
TOTAL CURRENT
LIABILITIES
|
48,716
|
|
55,327
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
30,741
|
|
31,749
|
Other noncurrent
liabilities and deferred income taxes
|
25,045
|
|
23,966
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,393,371 and
|
|
|
|
|
5,397,138 issued and outstanding, net of 824,011 and 819,424
treasury
|
|
|
|
|
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
|
|
|
|
|
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)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
233,367
|
|
242,925
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
337,869
|
|
$
353,967
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/preformed-line-products-announces-financial-results-for-the-quarter-ended-march-31-2015-300077625.html
SOURCE Preformed Line Products Company