MAYFIELD VILLAGE, Ohio,
May 6, 2016 /PRNewswire/
-- Preformed Line Products Company (NASDAQ: PLPC)
today reported financial results for its first quarter ended
March 31, 2016.
Net sales for the first quarter of 2016 were $78,682,000, down 8%, compared to $85,790,000 in the first quarter of
2015.
The Company posted net income for the first quarter of 2016 of
$2,658,000, or $.51 per share, compared to a net loss of
$256,000, or ($.05) per share, in the first quarter of
2015.
Currency translation rates had a negative impact on 2016 first
quarter net sales of $5,972,000 and
$551,000 on net income.
However, gains on foreign currency transactions had a favorable
impact of $1,038,000 on pre-tax
income.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "Our sales for the first quarter declined
1% in native currency, due to ongoing weak market demand as
governments and utilities continue to defer their investment in
infrastructure because of anemic global economic conditions.
Despite the sales decline, our gross profit improved 7% after
excluding a negative $2.2 million
impact of currency, reflecting operational improvements, cost
reduction actions and a more profitable product sales mix.
Our first quarter results reflect solid execution of our
operational and commercial initiatives in the face of difficult
macroeconomic conditions. We remain focused on our leading
brand recognition, product innovation, and diversified global
footprint to leverage our competitive advantages."
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, 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, 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, the Company's ability to strengthen and retain
relationships with the Company's customers and expanding
geographically, 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 2015 Annual Report on Form 10-K filed
with the SEC on March 11, 2016 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
|
|
|
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
78,682
|
|
$ 85,790
|
|
|
Cost of products
sold
|
|
54,393
|
|
61,030
|
|
|
|
|
GROSS
PROFIT
|
|
24,289
|
|
24,760
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Selling
|
|
7,631
|
|
7,207
|
|
|
|
General and
administrative
|
|
10,086
|
|
10,186
|
|
|
|
Research and
engineering
|
|
3,738
|
|
3,721
|
|
|
|
Other operating
expense (income) - net
|
|
(853)
|
|
3,731
|
|
|
|
|
|
|
20,602
|
|
24,845
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING INCOME
(LOSS)
|
|
3,687
|
|
(85)
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
75
|
|
102
|
|
|
|
Interest
expense
|
|
(158)
|
|
(133)
|
|
|
|
Other income -
net
|
|
52
|
|
57
|
|
|
|
|
|
|
(31)
|
|
26
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME (LOSS)
BEFORE INCOME TAXES
|
|
3,656
|
|
(59)
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
998
|
|
197
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
(LOSS)
|
|
$
2,658
|
|
$
(256)
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
$
0.51
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
Net Income
(loss)
|
|
$
0.51
|
|
$
(0.05)
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,211
|
|
5,396
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,229
|
|
5,396
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
31,363
|
|
$
30,393
|
Accounts receivable,
less allowances of $2,469 ($2,326 in 2015)
|
|
|
|
67,728
|
|
63,626
|
Inventories -
net
|
|
|
|
|
|
70,302
|
|
69,912
|
Prepaids
|
|
|
|
|
|
|
11,133
|
|
9,615
|
Other current
assets
|
|
|
|
|
|
1,738
|
|
6,343
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
182,264
|
|
179,889
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
|
|
|
96,708
|
|
91,965
|
Other intangibles -
net
|
|
|
|
|
|
11,465
|
|
11,288
|
Goodwill
|
|
|
|
|
|
|
16,290
|
|
15,821
|
Deferred income
taxes
|
|
|
|
|
|
12,746
|
|
12,704
|
Other
assets
|
|
|
|
|
|
11,297
|
|
11,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
330,770
|
|
$
323,370
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable to
banks
|
|
|
|
|
|
$
825
|
|
$
413
|
Current portion of
long-term debt
|
|
|
|
|
117
|
|
110
|
Trade accounts
payable
|
|
|
|
|
|
21,455
|
|
20,377
|
Accrued compensation
and amounts withheld from employees
|
|
|
|
9,481
|
|
9,306
|
Accrued expenses and
other liabilities
|
|
|
|
|
18,642
|
|
21,462
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
50,520
|
|
51,668
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
35,845
|
|
31,754
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
20,137
|
|
20,964
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,204,950 and
|
|
|
|
|
5,221,062 issued and outstanding, as of March 31, 2016 and December
31, 2015
|
12,483
|
|
12,478
|
|
Common shares issued
to Rabbi Trust, 296,326 and 296,635 shares at
|
|
|
|
|
|
March 31, 2016 and December
31, 2015, respectively
|
|
|
|
(12,014)
|
|
(12,052)
|
|
Deferred Compensation
Liability
|
|
|
|
|
12,014
|
|
12,052
|
|
Paid-in
capital
|
|
|
|
|
|
23,299
|
|
22,916
|
|
Retained
earnings
|
|
|
|
|
|
293,923
|
|
292,311
|
|
Treasury shares, at
cost, 1,036,362 and 1,018,013 shares at
|
|
|
|
|
|
|
March 31, 2016 and December
31, 2015
|
|
|
|
(55,230)
|
|
(54,570)
|
|
Accumulated other
comprehensive loss
|
|
|
|
(50,207)
|
|
(54,151)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
|
|
224,268
|
|
218,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
330,770
|
|
$
323,370
|
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SOURCE Preformed Line Products Company