MAYFIELD VILLAGE, Ohio,
Aug. 5, 2016 /PRNewswire/ --
Preformed Line Products Company (Nasdaq: PLPC) today
reported financial results for its second quarter and first six
months of 2016.
Net income for the quarter ended June 30,
2016 was $2,755,000, or
$.53 per diluted share, compared to
$3,680,000, or $.68 per diluted share, for the comparable period
in 2015.
Net sales in the second quarter of 2016 were $83,220,000, compared to $87,869,000 in the second quarter of 2015.
Net income for the six months ended June
30, 2016 was $5,413,000, or
$1.04 per diluted share, compared to
$3,424,000, or $.63 per diluted share, for the comparable period
in 2015.
Net sales were $161,903,000 for
the first six months of 2016 compared to $173,659,000 in the first six months of 2015.
Currency translation rates unfavorably impacted net sales by
$4,575,000 for the quarter and
$10,585,000 for the first six months
of 2016, and had an unfavorable impact on net income of
$484,000 for the quarter and
$916,000 for the first six months of
2016.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "In constant dollars, our worldwide sales
were flat in the second quarter in the face of continuing sluggish
global economies. Our persistent focus on efficiencies in our
manufacturing processes and cost reductions coupled with a more
profitable product sales mix led to consecutive quarters of gross
profit improvement. We remain committed to operational
improvements, pursuing margin enhancements and providing superior
customer service during a period of reduced governmental
infrastructure expansion that extends beyond our domestic
markets."
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, 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, 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 2015 Annual Report on Form 10-K filed
with the SEC on March 11, 2016 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
June 30
|
|
Six Months Ended June
30
|
|
|
|
|
|
2016
|
|
2015
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
83,220
|
|
$
87,869
|
|
$
161,903
|
|
$
173,659
|
|
Cost of products
sold
|
|
56,414
|
|
61,425
|
|
110,807
|
|
122,455
|
|
|
|
GROSS
PROFIT
|
|
26,806
|
|
26,444
|
|
51,096
|
|
51,204
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
8,183
|
|
7,752
|
|
15,814
|
|
14,960
|
|
|
General and
administrative
|
|
10,962
|
|
9,391
|
|
21,049
|
|
19,577
|
|
|
Research and
engineering
|
|
3,609
|
|
3,864
|
|
7,347
|
|
7,585
|
|
|
Other operating
expense (income) - net
|
|
(27)
|
|
252
|
|
(880)
|
|
3,983
|
|
|
|
|
|
22,727
|
|
21,259
|
|
43,330
|
|
46,105
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
4,079
|
|
5,185
|
|
7,766
|
|
5,099
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
68
|
|
112
|
|
143
|
|
214
|
|
|
Interest
expense
|
|
(166)
|
|
(149)
|
|
(324)
|
|
(282)
|
|
|
Other expense -
net
|
|
(208)
|
|
(682)
|
|
(156)
|
|
(625)
|
|
|
|
|
|
(306)
|
|
(719)
|
|
(337)
|
|
(693)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
3,773
|
|
4,466
|
|
7,429
|
|
4,406
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
1,018
|
|
786
|
|
2,016
|
|
982
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
2,755
|
|
$
3,680
|
|
$
5,413
|
|
$
3,424
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
0.53
|
|
$
0.68
|
|
$
1.04
|
|
$
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
0.53
|
|
$
0.68
|
|
$
1.04
|
|
$
0.63
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
$
0.40
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,186
|
|
5,392
|
|
5,198
|
|
5,394
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,208
|
|
5,393
|
|
5,218
|
|
5,396
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2016
|
|
2015
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
28,143
|
|
$
30,393
|
|
Accounts receivable,
less allowances of $2,485 ($2,326 in 2015)
|
|
|
|
65,060
|
|
63,626
|
|
Inventories -
net
|
|
|
|
|
|
72,139
|
|
69,912
|
|
Prepaids
|
|
|
|
|
|
|
11,080
|
|
9,615
|
|
Other current
assets
|
|
|
|
|
|
6,209
|
|
6,343
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
182,631
|
|
179,889
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
|
|
|
107,235
|
|
91,965
|
|
Other intangibles -
net
|
|
|
|
|
|
11,400
|
|
11,288
|
|
Goodwill
|
|
|
|
|
|
|
16,282
|
|
15,821
|
|
Deferred income
taxes
|
|
|
|
|
|
13,642
|
|
12,704
|
|
Other
assets
|
|
|
|
|
|
11,055
|
|
11,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
342,245
|
|
$
323,370
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable to
banks
|
|
|
|
|
|
$
826
|
|
$
413
|
|
Current portion of
long-term debt
|
|
|
|
|
1,564
|
|
110
|
|
Trade accounts
payable
|
|
|
|
|
|
20,677
|
|
20,377
|
|
Accrued compensation
and amounts withheld from employees
|
|
|
|
11,338
|
|
9,306
|
|
Accrued expenses and
other liabilities
|
|
|
|
|
19,984
|
|
21,462
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
54,389
|
|
51,668
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
44,593
|
|
31,754
|
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
20,246
|
|
20,964
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,170,214 and
|
|
|
|
|
5,221,062 issued and outstanding, as of June 30, 2016
and
|
|
|
12,484
|
|
12,478
|
|
December 31, 2015, respectively
|
|
|
|
|
|
|
|
|
Common shares issued
to Rabbi Trust, 296,817 and 296,635 shares at
|
|
|
|
|
|
June 30, 2016 and December
31, 2015, respectively
|
|
|
|
(12,034)
|
|
(12,052)
|
|
Deferred Compensation
Liability
|
|
|
|
|
12,034
|
|
12,052
|
|
Paid-in
capital
|
|
|
|
|
|
23,536
|
|
22,916
|
|
Retained
earnings
|
|
|
|
|
|
295,618
|
|
292,311
|
|
Treasury shares, at
cost, 1,071,589 and 1,018,013 shares at
|
|
|
|
|
|
|
June 30, 2016 and December
31, 2015, respectively
|
|
|
|
(56,635)
|
|
(54,570)
|
|
Accumulated other
comprehensive loss
|
|
|
|
(51,986)
|
|
(54,151)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
|
|
223,017
|
|
218,984
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
342,245
|
|
$
323,370
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/preformed-line-products-announces-second-quarter-and-first-half-2016-results-300309705.html
SOURCE Preformed Line Products Company