MAYFIELD VILLAGE, Ohio,
Aug. 6, 2015 /PRNewswire/
-- Preformed Line Products Company (Nasdaq: PLPC)
today reported financial results for its second quarter and first
six months of 2015.
Net income for the quarter ended June 30,
2015 was $3,680,000, or
$.68 per diluted share, compared to
$5,080,000 or $.94 per diluted share, for the comparable period
in 2014.
Net sales in the second quarter of 2015 were $87,869,000, compared to $99,981,000 in the second quarter of 2014.
Currency exchange rates had a negative impact on sales of
$8,320,000 for the second quarter of
2015, but the effect on net income was negligible.
Net income for the six months ended June
30, 2015 was $3,424,000, or
$.63 per diluted share, compared to
$7,818,000, or $1.44 per diluted share, for the comparable
period in 2014.
Net sales were $173,659,000 for
the first six months of 2015 compared to $189,906,000 in the first six months of 2014.
Currency exchange rates had a negative impact on sales of
$14,761,000 and a negligible impact
on net income for the first six months of 2015.
In addition to the negative impact of currency exchange rates,
comparative results were also affected primarily by the translation
of intercompany receivables and payables. The impact was
negligible in the second quarter of 2015 and was a favorable
unrealized gain in the second quarter of 2014, increasing pretax
income by $981,000. For the six
months ended June 30, 2015, an
unrealized loss of $3,376,000 was
recorded compared to an unrealized gain for the six months of 2014
of $1,610,000, resulting in an
unfavorable $4,986,000 difference in
pretax income when comparing the two periods.
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 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, and other factors described under the headings "Risk
Factors" and "Forward-Looking Statements" in the Company's 2014
Annual Report on Form 10-K filed with the SEC on March 12, 2015 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
|
|
|
|
|
|
2015
|
|
2014
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
87,869
|
|
$
99,981
|
|
$
173,659
|
|
$
189,906
|
|
Cost of products
sold
|
|
61,425
|
|
68,784
|
|
122,455
|
|
131,261
|
|
|
|
GROSS
PROFIT
|
|
26,444
|
|
31,197
|
|
51,204
|
|
58,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
7,752
|
|
9,061
|
|
14,960
|
|
17,566
|
|
|
General and
administrative
|
|
9,391
|
|
10,836
|
|
19,577
|
|
21,994
|
|
|
Research and
engineering
|
|
3,864
|
|
4,183
|
|
7,585
|
|
7,958
|
|
|
Other operating
expense (income) - net
|
|
252
|
|
(495)
|
|
3,983
|
|
(698)
|
|
|
|
|
|
21,259
|
|
23,585
|
|
46,105
|
|
46,820
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
5,185
|
|
7,612
|
|
5,099
|
|
11,825
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
112
|
|
98
|
|
214
|
|
207
|
|
|
Interest
expense
|
|
(149)
|
|
(202)
|
|
(282)
|
|
(363)
|
|
|
Other income
(expense) - net
|
|
(682)
|
|
98
|
|
(625)
|
|
74
|
|
|
|
|
|
(719)
|
|
(6)
|
|
(693)
|
|
(82)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
4,466
|
|
7,606
|
|
4,406
|
|
11,743
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
786
|
|
2,526
|
|
982
|
|
3,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
3,680
|
|
$
5,080
|
|
$
3,424
|
|
$
7,818
|
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
0.68
|
|
$
0.94
|
|
$
0.63
|
|
$
1.45
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
Net
Income
|
|
$
0.68
|
|
$
0.94
|
|
$
0.63
|
|
$
1.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
$
0.40
|
|
$
0.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,392
|
|
5,389
|
|
5,394
|
|
5,390
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,393
|
|
5,393
|
|
5,396
|
|
5,430
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December
31,
|
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2015
|
|
2014
|
|
|
|
|
|
|
|
|
|
(Unaudited)
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
|
$
30,730
|
|
$
29,643
|
|
Accounts receivable,
less allowances of $2,499 ($2,370 in 2014)
|
|
|
|
63,270
|
|
67,942
|
|
Inventories -
net
|
|
|
|
|
|
78,133
|
|
80,037
|
|
Deferred income
taxes
|
|
|
|
|
|
8,334
|
|
7,249
|
|
Prepaids
|
|
|
|
|
|
|
12,109
|
|
9,167
|
|
Other current
assets
|
|
|
|
|
|
7,899
|
|
6,625
|
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
200,475
|
|
200,663
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
|
|
|
97,543
|
|
102,531
|
|
Other intangibles -
net
|
|
|
|
|
|
12,484
|
|
14,121
|
|
Goodwill
|
|
|
|
|
|
|
16,575
|
|
17,792
|
|
Deferred income
taxes
|
|
|
|
|
|
7,220
|
|
5,773
|
|
Other
assets
|
|
|
|
|
|
10,747
|
|
13,087
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
345,044
|
|
$
353,967
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable to
banks
|
|
|
|
|
|
$
2,431
|
|
$
1,809
|
|
Current portion of
long-term debt
|
|
|
|
|
112
|
|
116
|
|
Trade accounts
payable
|
|
|
|
|
|
23,582
|
|
22,332
|
|
Accrued compensation
and amounts withheld from employees
|
|
|
|
10,924
|
|
9,876
|
|
Accrued expenses and
other liabilities
|
|
|
|
|
18,287
|
|
21,194
|
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
55,336
|
|
55,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
30,743
|
|
31,749
|
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
23,532
|
|
23,966
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,391,671 and
|
|
|
|
|
|
|
5,397,138 issued and outstanding, net of 827,211 and 819,424
treasury
|
|
|
|
|
|
|
shares at par, respectively, as of June 30, 2015 and December 31,
2014
|
|
10,781
|
|
10,794
|
|
|
Common shares issued
to Rabbi Trust, 290,470 and 292,609 shares at
|
|
|
|
|
|
|
|
June 30, 2015 and December
31, 2014
|
|
|
|
(11,637)
|
|
(11,790)
|
|
|
Deferred Compensation
Liability
|
|
|
|
|
11,637
|
|
11,790
|
|
|
Paid-in
capital
|
|
|
|
|
|
23,311
|
|
22,795
|
|
|
Retained
earnings
|
|
|
|
|
|
245,346
|
|
244,470
|
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(44,005)
|
|
(35,134)
|
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
|
|
235,433
|
|
242,925
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
345,044
|
|
$
353,967
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/preformed-line-products-announces-second-quarter-and-first-half-2015-results-300124882.html
SOURCE Preformed Line Products Company