MAYFIELD VILLAGE, Ohio,
May 5, 2017 /PRNewswire/
-- Preformed Line Products Company (NASDAQ: PLPC)
today reported financial results for its first quarter ended
March 31, 2017.
Net sales for the first quarter of 2017 were $84.6 million, an increase of 7%, compared to
$78.7 million in the first quarter of
2016.
The Company posted net income for the first quarter of 2017 of
$1.5 million, or $.30 per share, compared to $2.7 million, or $.51 per share, in the first quarter of 2016.
Currency translation rates had a favorable impact on 2017 first
quarter net sales of $1.3 million,
and an immaterial effect on net income. Additionally, gains
on foreign currency transactions had a favorable impact of
$.2 million on pre-tax income for the
first quarter of 2017, compared to a $1.0
million favorable impact for the same period in 2016.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "Despite intense competitive pricing
pressure, sales increased seven percent. Gross profit
increased less than two percent due to sales mix and the impact of
inflation on input costs. Additionally, we had lower foreign
currency transaction gains in 2017 compared to 2016, which
negatively affected net income year over year. We are
cautiously optimistic that investing in infrastructure will
increase during 2017. Our technology and unique access to our
markets provide superior value to our customers."
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, Colombia, 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 and
the mix of products sold, 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
2016 Annual Report on Form 10-K filed with the SEC on March 10, 2017 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 INCOME
|
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
Three Months Ended
March 31
|
|
|
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
84,569
|
|
$
78,682
|
|
|
Cost of products
sold
|
|
59,904
|
|
54,393
|
|
|
|
|
GROSS
PROFIT
|
|
24,665
|
|
24,289
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
Selling
|
|
8,284
|
|
7,631
|
|
|
|
General and
administrative
|
|
10,329
|
|
10,086
|
|
|
|
Research and
engineering
|
|
3,690
|
|
3,738
|
|
|
|
Other operating
expense (income) - net
|
|
104
|
|
(853)
|
|
|
|
|
|
|
22,407
|
|
20,602
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
2,258
|
|
3,687
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
Interest
income
|
|
104
|
|
75
|
|
|
|
Interest
expense
|
|
(299)
|
|
(158)
|
|
|
|
Other income -
net
|
|
55
|
|
52
|
|
|
|
|
|
|
(140)
|
|
(31)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
2,118
|
|
3,656
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
600
|
|
998
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
1,518
|
|
$
2,658
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
Net
Income
|
|
$
0.30
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
Net
Income
|
|
$
0.30
|
|
$
0.51
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,118
|
|
5,211
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,130
|
|
5,229
|
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
31,034
|
|
$
30,737
|
|
Accounts receivable,
less allowances of $3,276 ($3,210 in 2016)
|
|
|
|
70,513
|
|
63,415
|
|
Inventories -
net
|
|
|
|
|
|
77,440
|
|
74,484
|
|
Prepaids
|
|
|
|
|
|
|
4,248
|
|
12,035
|
|
Other current
assets
|
|
|
|
|
|
12,774
|
|
8,436
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
196,009
|
|
189,107
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
|
|
|
106,812
|
|
105,104
|
|
Other intangibles -
net
|
|
|
|
|
|
10,504
|
|
10,475
|
|
Goodwill
|
|
|
|
|
|
|
16,145
|
|
15,769
|
|
Deferred income
taxes
|
|
|
|
|
|
10,469
|
|
10,208
|
|
Other
assets
|
|
|
|
|
|
10,601
|
|
10,274
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
350,540
|
|
$
340,937
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
|
|
|
|
$
23,893
|
|
$
21,978
|
|
Notes payable to
banks
|
|
|
|
|
|
664
|
|
1,315
|
|
Current portion of
long-term debt
|
|
|
|
|
1,448
|
|
1,448
|
|
Accrued compensation
and amounts withheld from employees
|
|
|
|
10,465
|
|
10,040
|
|
Accrued expenses and
other liabilities
|
|
|
|
|
19,420
|
|
20,674
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
55,890
|
|
55,455
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
45,319
|
|
42,943
|
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
19,198
|
|
18,996
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,118,088 and
|
|
|
|
|
5,117,753 issued and outstanding, as of March 31, 2017 and December
31, 2016
|
12,513
|
|
12,508
|
|
Common shares issued
to rabbi trust, 297,408 and 297,281 shares at
|
|
|
|
|
|
|
|
March 31, 2017 and December
31, 2016, respectively
|
|
|
|
|
|
(12,069)
|
|
(12,054)
|
|
Deferred Compensation
Liability
|
|
|
|
|
|
12,069
|
|
12,054
|
|
Paid-in
capital
|
|
|
|
|
|
25,315
|
|
24,629
|
|
Retained
earnings
|
|
|
|
|
|
303,877
|
|
303,415
|
|
Treasury shares, at
cost, 1,138,277 and 1,136,443 shares at
|
|
|
|
|
|
|
|
|
|
March 31, 2017 and December
31, 2016, respectively
|
|
|
|
|
|
(59,747)
|
|
(59,640)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
|
(51,825)
|
|
(57,369)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
230,133
|
|
223,543
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
|
|
|
$
350,540
|
|
$
340,937
|
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-31-2017-300452036.html
SOURCE Preformed Line Products Company