MAYFIELD VILLAGE, Ohio,
May 2, 2014 /PRNewswire/
-- Preformed Line Products Company (NASDAQ: PLPC)
today reported financial results for the first quarter ended
March 31, 2014.
Net income for the quarter ended March
31, 2014 was $2,738,000, or
$.50 per diluted share, compared to
$4,965,000, or $.91 per diluted share, for the comparable period
in 2013.
Net sales for the first quarter of 2014 were $89,925,000 compared to $98,689,000 in the first quarter of
2013.
Currency exchange rates had a negative impact on 2014 first
quarter net sales and net income of $4,436,000 and $119,000, respectively.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "First quarter results were certainly
disappointing, particularly in comparison to previous periods that
involved significant spending by the utilities on transmission
projects. There are no similar projects taking place at this time.
In fact, the ongoing extreme weakness in the U.S. economy coupled
with a peculiarly harsh and extended winter has placed a
significant damper on both new construction and maintenance
activities. Globally, we are operating in a slow to no growth, yet
highly competitive environment which we are addressing through
constant innovation, exceptional customer service and a constant
focus on improving productivity."
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
2013 Annual Report on Form 10-K filed with the SEC on March 14, 2014 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 March 31,
|
|
|
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
89,925
|
|
$
98,689
|
|
|
Cost of products
sold
|
62,477
|
|
67,390
|
|
|
|
GROSS
PROFIT
|
27,448
|
|
31,299
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
Selling
|
8,505
|
|
9,061
|
|
|
General and
administrative
|
11,158
|
|
11,480
|
|
|
Research and
engineering
|
3,775
|
|
3,770
|
|
|
Other operating
expense (income)
|
(203)
|
|
121
|
|
|
|
|
23,235
|
|
24,432
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
4,213
|
|
6,867
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
Interest
income
|
109
|
|
116
|
|
|
Interest
expense
|
(161)
|
|
(103)
|
|
|
Other income
(expense)
|
(24)
|
|
37
|
|
|
|
|
(76)
|
|
50
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
4,137
|
|
6,917
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
1,399
|
|
1,952
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
2,738
|
|
$
4,965
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
Net Income to PLPC
common shareholders
|
$
0.51
|
|
$
0.92
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
Net Income to PLPC
common shareholders
|
$
0.50
|
|
$
0.91
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
$
0.20
|
|
$
0
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
5,392
|
|
5,377
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
5,431
|
|
5,457
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
Thousands of
dollars, except share and per share data
|
2014
|
|
2013
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
21,173
|
|
$
24,291
|
|
Accounts receivable,
less allowances of $2,100 ($2,136 in 2013)
|
74,957
|
|
67,587
|
|
Inventories -
net
|
79,638
|
|
73,835
|
|
Deferred income
taxes
|
6,463
|
|
7,022
|
|
Prepaids
|
|
10,333
|
|
9,845
|
|
Other current
assets
|
3,736
|
|
3,154
|
|
|
TOTAL CURRENT
ASSETS
|
196,300
|
|
185,734
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
105,146
|
|
100,461
|
|
Other intangibles -
net
|
16,549
|
|
11,787
|
|
Goodwill
|
|
19,181
|
|
13,873
|
|
Deferred income
taxes
|
3,922
|
|
3,416
|
|
Other
assets
|
17,486
|
|
17,135
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
358,584
|
|
$
332,406
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Notes payable to
banks
|
$
2,923
|
|
$
1,105
|
|
Current portion of
long-term debt
|
162
|
|
195
|
|
Trade accounts
payable
|
22,483
|
|
21,750
|
|
Accrued compensation
and amounts withheld from employees
|
11,856
|
|
10,787
|
|
Accrued expenses and
other liabilities
|
14,938
|
|
18,378
|
|
|
TOTAL CURRENT
LIABILITIES
|
52,362
|
|
52,215
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
32,931
|
|
13,054
|
|
Other noncurrent
liabilities and deferred income taxes
|
17,881
|
|
14,807
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,388,733 and 5,391,074
issued and outstanding, net of 783,418 and 779,279 treasury shares
at par, respectively, as of March 31, 2014 and December 31,
2013
|
10,777
|
|
10,782
|
|
Common shares issued to Rabbi Trust, 249,198 and
253,156 shares at March 31, 2014 and December 31,
2013
|
(9,156)
|
|
(9,306)
|
|
Deferred Compensation
Liability
|
9,156
|
|
9,306
|
|
Paid in
capital
|
21,955
|
|
21,082
|
|
Retained
earnings
|
239,548
|
|
238,168
|
|
Accumulated other
comprehensive loss
|
(15,870)
|
|
(17,702)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
256,410
|
|
252,330
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
359,584
|
|
$
332,406
|
|
|
|
|
|
|
SOURCE Preformed Line Products Company