MAYFIELD VILLAGE, Ohio, Nov. 7, 2014 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2014.

Net income for the quarter ended September 30, 2014 was $2,555,000, or $.48 per diluted share, compared to $6,104,000, or $1.12 per diluted share, for the comparable period in 2013.

Net sales in the third quarter of 2014 were $102,100,000 compared to sales of $100,828,000 in the third quarter of 2013.

Net income for the nine months ended September 30, 2014 was $10,373,000, or $1.92 per diluted share, compared to $17,455,000, or $3.20 per diluted share for the comparable period in 2013. 

Net sales were $292,006,000 for the first nine months of 2014 compared to $311,233,000 in the first nine months of 2013.

Currency exchange rates impacted net sales favorably by $514,000 for the quarter and unfavorably by $5,601,000 for the first nine months of 2014, while the positive impact on net income was $123,000 for the quarter and $21,000 for the first nine months of 2014.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our South Africa operation was hindered by a national steel workers strike causing us to lose weeks of production.  Throughout the Asia-Pacific region we are impacted by government turmoil whether it be military rule, inaction due to elections or governments deferral of new power projects.  We reversed previously recognized tax benefits on operating loss carryforwards in the Asia-Pacific region in accordance with generally accepted accounting principles which prevent us from recognizing the benefits until the carryforwards are actually realized.  Additionally, the completion of transmission projects in the U.S. in early 2013 translates to a lower level of sales in 2014 when compared to 2013.  The continuing weakening of foreign currencies against the U.S. dollar had a negative impact on our outstanding loans to the foreign subsidiaries and we recognized $2.1 million of exchange losses in the quarter and $520,000 on a year-to- date basis on these loans.  However, our international backlog is the strongest it has been in the past 2 years and we look forward to rebounding when governments loosen their purse strings."

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 is in Mayfield Village, 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, workforce disruptions and other factors described under the headings "Risk Factors" and "Forward-Looking Statements" 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 months ended September 30,


Nine months ended September 30,






2014


2013


2014


2013


























Net sales

$  102,100


$  100,828


$  292,006


$  311,233


Cost of products sold

69,645


69,168


200,906


210,725




GROSS PROFIT

32,455


31,660


91,100


100,508














Costs and expenses










Selling

9,444


8,874


27,010


27,226



General and administrative

10,153


10,386


32,147


33,993



Research and engineering

4,399


3,714


12,357


11,055



Other operating expense (income)

3,324


419


2,626


2,611






27,320


23,393


74,140


74,885
















OPERATING INCOME

5,135


8,267


16,960


25,623














Other income (expense)










Interest income

138


204


345


454



Interest expense

(141)


(121)


(504)


(329)



Other income (expense)

162


194


236


393






159


277


77


518
















INCOME BEFORE INCOME TAXES 

5,294


8,544


17,037


26,141














Income taxes

2,739


2,440


6,664


8,686
















NET INCOME

$      2,555


$      6,104


$    10,373


$    17,455














BASIC EARNINGS PER SHARE










Net Income to PLPC common shareholders

$        0.48


$        1.14


$        1.93


$        3.25














DILUTED EARNINGS PER SHARE










Net Income to PLPC common shareholders

$        0.48


$        1.12


$        1.92


$        3.20














Cash dividends declared per share

$        0.20


$        0.20


$        0.60


$        0.40














Weighted-average number of shares outstanding - basic

5,372


5,361


5,384


5,369














Weighted-average number of shares outstanding - diluted

5,376


5,449


5,389


5,450













 

 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS





















September 30,


December 31,

Thousands of dollars, except share and per share data

2014


2013









(Unaudited)



ASSETS










Cash and cash equivalents


$      28,722


$      24,291

Accounts receivable, less allowances of $2,317 ($2,136 in 2013)

72,772


67,587

Inventories - net



79,415


73,835

Deferred income taxes 




7,081


7,022

Prepaids




9,118


9,845

Other current assets



7,605


3,154



TOTAL CURRENT ASSETS

204,713


185,734












Property, plant and equipment - net


105,138


100,461

Other intangibles - net



15,009


11,787

Goodwill



18,359


13,873

Deferred income taxes 



4,184


3,416

Other assets



14,711


17,135














TOTAL ASSETS


$    362,114


$    332,406












LIABILITIES AND SHAREHOLDERS' EQUITY















Notes payable to banks



$        1,233


$        1,105

Current portion of long-term debt


123


195

Trade accounts payable



24,686


21,750

Accrued compensation and amounts withheld from employees

14,468


10,787

Accrued expenses and other liabilities


19,374


18,378



TOTAL CURRENT LIABILITIES

59,884


52,215












Long-term debt, less current portion

32,134


13,054

Other noncurrent liabilities and deferred income taxes

17,506


14,807












SHAREHOLDERS' EQUITY





PLPC shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 5,354,460 and





    5,391,074 issued and outstanding, net of 819,424 and 779,279 treasury





     shares at par, respectively, as of September 30, 2014 and December 31, 2013

10,709


10,782


Common shares issued to Rabbi Trust, 249,931 and 253,156 shares at





     September 30, 2014 and December 31, 2013

(9,196)


(9,306)


Deferred Compensation Liability

9,196


9,306


Paid in capital


22,190


21,082


Retained earnings


243,074


238,168


Accumulated other comprehensive loss

(23,383)


(17,702)



TOTAL SHAREHOLDERS' EQUITY

252,590


252,330














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$    362,114


$    332,406












 

SOURCE Preformed Line Products Company

Copyright 2014 PR Newswire

Preformed Line Products (NASDAQ:PLPC)
Historical Stock Chart
From Feb 2024 to Mar 2024 Click Here for more Preformed Line Products Charts.
Preformed Line Products (NASDAQ:PLPC)
Historical Stock Chart
From Mar 2023 to Mar 2024 Click Here for more Preformed Line Products Charts.