MAYFIELD VILLAGE, Ohio,
March 14, 2014 /PRNewswire/
-- Preformed Line Products Company (NASDAQ: PLPC)
today reported financial results for the fourth quarter and the
full year 2013.
Net income for the quarter ended December
31, 2013 decreased 41% to $3,132,000, or $.58
per diluted share, compared to $5,273,000, or $.98
per diluted share, for the comparable period in
2012. Net sales in the fourth quarter of 2013 decreased
5% to $98,543,000 compared to
$104,200,000 in the fourth quarter of
2012.
Currency exchange rates had a negative impact on 2013 fourth
quarter net sales of $2,993,000 and
the impact on net income was insignificant.
Net income for the year ended December
31, 2013 decreased 30% to $20,587,000, or $3.77 per diluted share, compared to $29,286,000, or $5.45 per diluted share in 2012. Net sales
for 2013 decreased 7% to $409,776,000
compared to $439,192,000 in
2012.
Currency exchange rates had a negative impact on 2013 net income
of $444,000 and on net sales of
$10,498,000.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "The world economies continued to struggle
during the year and utilities deferred spending in the face of
economic uncertainty and global turmoil. Most foreign currencies
weakened further against the U.S. dollar during the year, resulting
in a negative impact when translating foreign denominated income
statements into U.S. dollars, as well as having to record currency
losses on our loans and receivables from foreign subsidiaries.
While the numbers are disappointing, particularly in light of
multiple record years to this point, I am proud of the team's
performance in the face of adversity. As always, we are focused on
product development while controlling expenses and modifying our
operational structure where necessary, in the interest of improving
productivity. We are fully prepared to provide superior products
and service to our customers throughout the world as economies
recover."
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
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, the
Company's ability to develop new products and improve productivity,
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
2012 Annual Report on Form 10-K filed with the SEC on March 15, 2013 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 December 31,
|
|
Twelve month periods
ended December 31,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
98,543
|
|
$
104,200
|
|
$
409,776
|
|
$
439,192
|
|
Cost of products
sold
|
|
68,150
|
|
71,247
|
|
278,875
|
|
294,754
|
|
|
|
GROSS
PROFIT
|
|
30,393
|
|
32,953
|
|
130,901
|
|
144,438
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
8,478
|
|
9,347
|
|
35,704
|
|
37,093
|
|
|
General and
administrative
|
|
11,426
|
|
9,278
|
|
44,557
|
|
46,222
|
|
|
Research and
engineering
|
|
3,653
|
|
4,152
|
|
14,708
|
|
15,447
|
|
|
Other operating
expense (income)
|
|
449
|
|
992
|
|
3,922
|
|
1,554
|
|
|
Goodwill
impairment
|
|
862
|
|
-
|
|
862
|
|
-
|
|
|
|
|
|
24,868
|
|
23,769
|
|
99,753
|
|
100,316
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
5,525
|
|
9,184
|
|
31,148
|
|
44,122
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
164
|
|
172
|
|
618
|
|
648
|
|
|
Interest
expense
|
|
(121)
|
|
(108)
|
|
(450)
|
|
(597)
|
|
|
Other
income
|
|
85
|
|
65
|
|
478
|
|
654
|
|
|
|
|
|
128
|
|
129
|
|
646
|
|
705
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
5,653
|
|
9,313
|
|
31,794
|
|
44,827
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
2,521
|
|
4,040
|
|
11,207
|
|
15,541
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
3,132
|
|
$
5,273
|
|
$
20,587
|
|
$
29,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income to PLPC
common shareholders
|
|
$
0.59
|
|
$
0.99
|
|
$
3.84
|
|
$
5.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income to PLPC
common shareholders
|
|
$
0.58
|
|
$
0.98
|
|
$
3.77
|
|
$
5.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.40
|
|
$
0.60
|
|
$
1.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,340
|
|
5,310
|
|
5,361
|
|
5,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,390
|
|
5,363
|
|
5,467
|
|
5,371
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
Thousands of
dollars, except share and per share data
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
24,291
|
|
$
28,120
|
Accounts receivable,
less allowances of $2,136 ($2,039 in 2012)
|
|
67,587
|
|
61,695
|
Inventories -
net
|
|
73,835
|
|
86,916
|
Deferred income
taxes
|
|
7,022
|
|
6,557
|
Prepaids
|
|
|
9,845
|
|
8,381
|
Other current
assets
|
|
3,154
|
|
2,432
|
|
|
TOTAL CURRENT
ASSETS
|
|
185,734
|
|
194,101
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
100,461
|
|
93,326
|
Other intangibles -
net
|
|
11,787
|
|
14,038
|
Goodwill
|
|
|
13,873
|
|
15,537
|
Deferred income
taxes
|
|
3,416
|
|
6,069
|
Other
assets
|
|
17,135
|
|
9,993
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
332,406
|
|
$
333,064
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable to
banks
|
|
$
1,105
|
|
$
217
|
Current portion of
long-term debt
|
|
195
|
|
251
|
Trade accounts
payable
|
|
21,750
|
|
21,822
|
Accrued compensation
and amounts withheld from employees
|
|
10,787
|
|
12,271
|
Accrued expenses and
other liabilities
|
|
18,378
|
|
23,682
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
52,215
|
|
58,243
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
13,054
|
|
9,322
|
Other noncurrent
liabilities and deferred income taxes
|
|
14,807
|
|
24,430
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,391,074
and 5,377,937 issued and
outstanding, net of 779,279 and 689,472 treasury
shares at par, respectively, as of
December 31, 2013 and December 31, 2012
|
|
10,782
|
|
10,756
|
|
|
|
Common shares issued
to Rabbi Trust, 253,156 and 184,036 shares
at December 31, 2013 and
December 31, 2012
|
|
(9,306)
|
|
(6,522)
|
|
|
Deferred Compensation
Liability
|
|
9,306
|
|
6,522
|
|
Paid in
capital
|
|
21,082
|
|
16,355
|
|
Retained
earnings
|
|
238,168
|
|
227,622
|
|
Accumulated other
comprehensive loss
|
|
(17,702)
|
|
(13,664)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
252,330
|
|
241,069
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
332,406
|
|
$
333,064
|
|
|
|
|
|
|
|
SOURCE Preformed Line Products Company