MAYFIELD VILLAGE, Ohio,
Aug. 4, 2017 /PRNewswire/
-- Preformed Line Products Company (Nasdaq: PLPC)
today reported financial results for its second quarter and first
six months of 2017.
Net income for the quarter ended June 30,
2017 was $4.2 million, or
$.81 per diluted share, compared to
$2.8 million, or $.53 per diluted share, for the comparable period
in 2016.
Net sales in the second quarter of 2017 increased 17% to
$97.5 million, compared to
$83.2 million in the second quarter
of 2016.
Net income for the six months ended June
30, 2017 was $5.7 million, or
$1.11 per diluted share, compared to
$5.4 million, or $1.04 per diluted share, for the comparable
period in 2016.
Net sales increased 12% to $182.1
million for the first six months of 2017 compared to
$161.9 million in the first six
months of 2016.
Currency translation rates favorably impacted net sales by
$1.4 million for the first six months
and less than $.1 million for the
quarter ended June 30, 2017.
Currency had a negative impact on net income for each of the same
periods of less than $.1 million.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "Our sales momentum from the first quarter
continued to strengthen as we achieved year-over-year, double-digit
sales growth across each of our segments in the second
quarter. While raw material costs have remained higher, we
also expanded our gross profit nearly eleven percent. We have
leveraged our cost structure to deliver our strongest bottom line
results for this period in the last three years."
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 OPERATIONS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
|
Three Months June
30
|
|
Six Months June
30
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
97,512
|
|
$
83,220
|
|
$
182,081
|
|
$
161,903
|
|
Cost of products
sold
|
|
67,839
|
|
56,414
|
|
127,743
|
|
110,807
|
|
|
|
GROSS
PROFIT
|
|
29,673
|
|
26,806
|
|
54,338
|
|
51,096
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
8,626
|
|
8,183
|
|
16,910
|
|
15,814
|
|
|
General and
administrative
|
|
10,772
|
|
10,962
|
|
21,101
|
|
21,049
|
|
|
Research and
engineering
|
|
3,612
|
|
3,609
|
|
7,301
|
|
7,347
|
|
|
Other operating
expense (income) - net
|
|
369
|
|
(27)
|
|
474
|
|
(880)
|
|
|
|
|
|
23,379
|
|
22,727
|
|
45,786
|
|
43,330
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
6,294
|
|
4,079
|
|
8,552
|
|
7,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
160
|
|
68
|
|
264
|
|
143
|
|
|
Interest
expense
|
|
(277)
|
|
(166)
|
|
(577)
|
|
(324)
|
|
|
Other income
(expense) - net
|
|
81
|
|
(208)
|
|
137
|
|
(156)
|
|
|
|
|
|
(36)
|
|
(306)
|
|
(176)
|
|
(337)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
6,258
|
|
3,773
|
|
8,376
|
|
7,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
2,102
|
|
1,018
|
|
2,702
|
|
2,016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
4,156
|
|
$
2,755
|
|
$
5,674
|
|
$
5,413
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
0.81
|
|
$
0.53
|
|
$
1.11
|
|
$
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
0.81
|
|
$
0.53
|
|
$
1.11
|
|
$
1.04
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
$
0.40
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,116
|
|
5,186
|
|
5,117
|
|
5,198
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,127
|
|
5,208
|
|
5,132
|
|
5,218
|
PREFORMED LINE
PRODUCTS COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
28,002
|
|
$
30,737
|
Accounts receivable,
less allowances of $3,221 ($3,210 in 2016)
|
|
|
|
79,686
|
|
63,415
|
Inventories -
net
|
|
|
|
|
|
75,498
|
|
74,484
|
Prepaids
|
|
|
|
|
|
|
4,040
|
|
12,035
|
Other current
assets
|
|
|
|
|
|
8,290
|
|
8,436
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
195,516
|
|
189,107
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
|
|
|
107,234
|
|
105,104
|
Other intangibles -
net
|
|
|
|
|
|
10,468
|
|
10,475
|
Goodwill
|
|
|
|
|
|
|
16,478
|
|
15,769
|
Deferred income
taxes
|
|
|
|
|
|
10,897
|
|
10,208
|
Other
assets
|
|
|
|
|
|
10,978
|
|
10,274
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
351,571
|
|
$
340,937
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
|
|
|
|
$
24,145
|
|
$
21,978
|
Notes payable to
banks
|
|
|
|
|
|
1,379
|
|
1,315
|
Current portion of
long-term debt
|
|
|
|
|
1,448
|
|
1,448
|
Accrued compensation
and amounts withheld from employees
|
|
|
|
12,355
|
|
10,040
|
Accrued expenses and
other liabilities
|
|
|
|
|
19,753
|
|
20,674
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
59,080
|
|
55,455
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
36,570
|
|
42,943
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
19,324
|
|
18,996
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,115,981 and
|
|
|
|
|
5,117,753 issued and outstanding, as of June 30, 2017 and December
31, 2016
|
12,514
|
|
12,508
|
|
Common shares issued
to rabbi trust, 297,840 and 297,281 shares at
|
|
|
|
|
|
June 30, 2017 and December
31, 2016, respectively
|
|
|
|
(12,089)
|
|
(12,054)
|
|
Deferred Compensation
Liability
|
|
|
|
|
12,089
|
|
12,054
|
|
Paid-in
capital
|
|
|
|
|
|
25,916
|
|
24,629
|
|
Retained
earnings
|
|
|
|
|
|
306,979
|
|
303,415
|
|
Treasury shares, at
cost, 1,140,816 and 1,136,443 shares at
|
|
|
|
|
|
|
June 30, 2017 and December
31, 2016, respectively
|
|
|
|
(59,880)
|
|
(59,640)
|
|
Accumulated other
comprehensive loss
|
|
|
|
(48,932)
|
|
(57,369)
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
|
|
236,597
|
|
223,543
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
351,571
|
|
$
340,937
|
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SOURCE Preformed Line Products Company