MAYFIELD VILLAGE, Ohio,
March 9, 2018 /PRNewswire/
-- Preformed Line Products Company (NASDAQ: PLPC)
today reported financial results for the fourth quarter and the
full year 2017.
Net sales in the fourth quarter of 2017 were $96.9 million compared to $86.4 million in the fourth quarter of
2016. Net sales for 2017 were $378.2
million compared to $336.6
million in 2016. This represents a 12% increase for
both the fourth quarter and the year, compared to the same periods
in 2016.
The U.S. Tax Cuts and Jobs Act (the "Tax Act") enacted during
December 2017 adversely impacted net
income during the quarter and for the year as a result of a
one-time net tax expense of $5.8
million. The expense primarily relates to taxes on the
Company's unremitted foreign earnings and profits and
re-measurement of the Company's deferred tax assets and
liabilities. This negatively impacted earnings per diluted
share by $1.11 for the fourth quarter
of 2017, and $1.14 per diluted share
for the year.
Including the negative impacts from the Tax Act, net income for
the quarter ended December 31, 2017
was $.7 million, or $.14 per diluted share, compared to $5.1 million, or $.99 per diluted share, for the comparable period
in 2016. Net income for the year ended December 31, 2017 was $12.7 million, or $2.47 per diluted share, compared to $15.3 million, or $2.95 per diluted share in 2016.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "In our fourth quarter, we continued to
build on the success we achieved across the globe in the first nine
months of 2017. We attained double-digit sales growth in each
of our non-domestic segments while experiencing competitive pricing
pressure throughout these markets. Despite battling increased
raw material and freight costs, our sales growth coupled with
disciplined expense management led to our highest fourth quarter
pre-tax earnings in the last five 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 relative degree of competitive and
customer price pressure on the Company's products, the cost,
availability and quality of raw materials required for the
manufacture of products, and 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, 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
|
|
|
|
|
|
|
|
|
|
|
|
|
(In thousands,
except per share data)
|
Three Months Ended
December 31
|
|
Twelve Months Ended
December 31
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$
96,892
|
|
$
86,433
|
|
$
378,212
|
|
$
336,634
|
|
Cost of products
sold
|
66,137
|
|
56,969
|
|
259,584
|
|
227,220
|
|
|
GROSS
PROFIT
|
30,755
|
|
29,464
|
|
118,628
|
|
109,414
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Selling
|
8,180
|
|
7,963
|
|
34,048
|
|
31,799
|
|
General and
administrative
|
11,017
|
|
10,429
|
|
43,160
|
|
42,057
|
|
Research and
engineering
|
3,505
|
|
3,247
|
|
14,327
|
|
14,025
|
|
Other operating
expense - net
|
307
|
|
737
|
|
985
|
|
54
|
|
|
|
23,009
|
|
22,376
|
|
92,520
|
|
87,935
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
7,746
|
|
7,088
|
|
26,108
|
|
21,479
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest
income
|
104
|
|
85
|
|
430
|
|
291
|
|
Interest
expense
|
(230)
|
|
(256)
|
|
(1,061)
|
|
(844)
|
|
Other income -
net
|
71
|
|
73
|
|
329
|
|
27
|
|
|
|
(55)
|
|
(98)
|
|
(302)
|
|
(526)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
7,691
|
|
6,990
|
|
25,806
|
|
20,953
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
6,989
|
|
1,890
|
|
13,152
|
|
5,698
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
702
|
|
$
5,100
|
|
$
12,654
|
|
$
15,255
|
|
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
Net Income
|
$
0.14
|
|
$
1.00
|
|
$
2.48
|
|
$
2.95
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
Net Income
|
$
0.14
|
|
$
0.99
|
|
$
2.47
|
|
$
2.95
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
$
0.20
|
|
$
0.20
|
|
$
0.80
|
|
$
0.80
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
5,070
|
|
5,120
|
|
5,102
|
|
5,166
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
5,195
|
|
5,134
|
|
5,133
|
|
5,178
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
|
(Thousands of
dollars, except share and per share data)
|
2017
|
|
2016
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
Cash and cash
equivalents
|
$
44,358
|
|
$
30,737
|
|
Accounts receivable,
less allowances of $3,325 ($3,210 in 2016)
|
73,972
|
|
63,415
|
|
Inventories -
net
|
77,886
|
|
74,484
|
|
Prepaids
|
|
8,700
|
|
12,035
|
|
Other current
assets
|
2,214
|
|
8,436
|
|
|
TOTAL CURRENT
ASSETS
|
207,130
|
|
189,107
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
108,598
|
|
105,104
|
|
Other intangibles -
net
|
10,020
|
|
10,475
|
|
Goodwill
|
|
16,544
|
|
15,769
|
|
Deferred income
taxes
|
7,774
|
|
10,208
|
|
Other
assets
|
9,719
|
|
10,274
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
359,785
|
|
$
340,937
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
$
25,141
|
|
$
21,978
|
|
Notes payable to
banks
|
864
|
|
1,315
|
|
Current portion of
long-term debt
|
1,448
|
|
1,448
|
|
Accrued compensation
and amounts withheld from employees
|
11,461
|
|
10,040
|
|
Accrued expenses and
other liabilities
|
23,919
|
|
20,674
|
|
|
TOTAL CURRENT
LIABILITIES
|
62,833
|
|
55,455
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
34,598
|
|
42,943
|
|
Other noncurrent
liabilities and deferred income taxes
|
23,817
|
|
18,996
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 5,038,207 and
|
|
|
|
|
5,117,753 issued and outstanding, as of December 31, 2017 and
December 31, 2016
|
12,593
|
|
12,508
|
|
Common shares issued
to rabbi trust, 289,026 and 297,281 shares at
|
|
|
|
|
December 31, 2017 and
December 31, 2016, respectively
|
(11,834)
|
|
(12,054)
|
|
Deferred Compensation
Liability
|
11,834
|
|
12,054
|
|
Paid-in
capital
|
29,734
|
|
24,629
|
|
Retained
earnings
|
311,765
|
|
303,415
|
|
Treasury shares, at
cost, 1,258,069 and 1,136,443 shares at
|
|
|
|
|
December 31, 2017 and
December 31, 2016, respectively
|
(68,115)
|
|
(59,640)
|
|
Accumulated other
comprehensive loss
|
(47,440)
|
|
(57,369)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
238,537
|
|
223,543
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
359,785
|
|
$
340,937
|
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SOURCE Preformed Line Products