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
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STATEMENTS OF
CONSOLIDATED OPERATIONS
|
(UNAUDITED)
|
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|
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|
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In thousands,
except per share data
|
Three months ended
September 30,
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Nine months ended
September 30,
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|
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|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
|
|
|
|
|
|
|
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|
|
|
|
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|
|
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|
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Net sales
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$ 102,100
|
|
$ 100,828
|
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$ 292,006
|
|
$ 311,233
|
|
Cost of products
sold
|
69,645
|
|
69,168
|
|
200,906
|
|
210,725
|
|
|
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GROSS
PROFIT
|
32,455
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|
31,660
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|
91,100
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|
100,508
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|
|
|
|
|
|
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|
|
|
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Costs and
expenses
|
|
|
|
|
|
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Selling
|
9,444
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|
8,874
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|
27,010
|
|
27,226
|
|
|
General and
administrative
|
10,153
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|
10,386
|
|
32,147
|
|
33,993
|
|
|
Research and
engineering
|
4,399
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|
3,714
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|
12,357
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|
11,055
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|
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Other operating
expense (income)
|
3,324
|
|
419
|
|
2,626
|
|
2,611
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|
|
|
|
|
27,320
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|
23,393
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|
74,140
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|
74,885
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|
|
|
|
|
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OPERATING
INCOME
|
5,135
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|
8,267
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|
16,960
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|
25,623
|
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|
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Other income
(expense)
|
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Interest
income
|
138
|
|
204
|
|
345
|
|
454
|
|
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Interest
expense
|
(141)
|
|
(121)
|
|
(504)
|
|
(329)
|
|
|
Other income
(expense)
|
162
|
|
194
|
|
236
|
|
393
|
|
|
|
|
|
159
|
|
277
|
|
77
|
|
518
|
|
|
|
|
|
|
|
|
|
|
|
|
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INCOME BEFORE
INCOME TAXES
|
5,294
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|
8,544
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17,037
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26,141
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|
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Income
taxes
|
2,739
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|
2,440
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|
6,664
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|
8,686
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|
|
|
|
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NET
INCOME
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$ 2,555
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$ 6,104
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$ 10,373
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$ 17,455
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BASIC EARNINGS PER
SHARE
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Net Income to PLPC
common shareholders
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$ 0.48
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$ 1.14
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$ 1.93
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$ 3.25
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DILUTED EARNINGS
PER SHARE
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Net Income to PLPC
common shareholders
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$ 0.48
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|
$ 1.12
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$ 1.92
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$ 3.20
|
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Cash dividends
declared per share
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$ 0.20
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$ 0.20
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$ 0.60
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$ 0.40
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Weighted-average
number of shares outstanding - basic
|
5,372
|
|
5,361
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|
5,384
|
|
5,369
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|
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|
|
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Weighted-average
number of shares outstanding - diluted
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5,376
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5,449
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|
5,389
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5,450
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PREFORMED LINE
PRODUCTS COMPANY
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CONSOLIDATED
BALANCE SHEETS
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September
30,
|
|
December
31,
|
Thousands of
dollars, except share and per share data
|
2014
|
|
2013
|
|
|
|
|
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(Unaudited)
|
|
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ASSETS
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Cash and cash
equivalents
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$ 28,722
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$ 24,291
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Accounts receivable,
less allowances of $2,317 ($2,136 in 2013)
|
72,772
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67,587
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Inventories -
net
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|
79,415
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|
73,835
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Deferred income
taxes
|
|
|
|
7,081
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|
7,022
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Prepaids
|
|
|
|
9,118
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|
9,845
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Other current
assets
|
|
|
7,605
|
|
3,154
|
|
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TOTAL CURRENT
ASSETS
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204,713
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|
185,734
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|
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Property, plant and
equipment - net
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105,138
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100,461
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Other intangibles -
net
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15,009
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|
11,787
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Goodwill
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|
18,359
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|
13,873
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Deferred income
taxes
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|
|
4,184
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|
3,416
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Other
assets
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|
|
14,711
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|
17,135
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|
|
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|
TOTAL
ASSETS
|
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$ 362,114
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|
$ 332,406
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LIABILITIES AND
SHAREHOLDERS' EQUITY
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|
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Notes payable to
banks
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$ 1,233
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$ 1,105
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Current portion of
long-term debt
|
|
123
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|
195
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Trade accounts
payable
|
|
|
24,686
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|
21,750
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Accrued compensation
and amounts withheld from employees
|
14,468
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10,787
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Accrued expenses and
other liabilities
|
|
19,374
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|
18,378
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|
|
TOTAL CURRENT
LIABILITIES
|
59,884
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|
52,215
|
|
|
|
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|
|
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|
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Long-term debt, less
current portion
|
32,134
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|
13,054
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Other noncurrent
liabilities and deferred income taxes
|
17,506
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|
14,807
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|
|
|
|
|
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|
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SHAREHOLDERS'
EQUITY
|
|
|
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|
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
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|
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
|
|
|
|
|
|
|
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|
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SOURCE Preformed Line Products Company