MAYFIELD VILLAGE, Ohio,
Nov. 7, 2013 /PRNewswire/
-- Preformed Line Products Company (Nasdaq: PLPC)
today reported financial results for the third quarter and the
first nine months of 2013.
Net income for the quarter ended September 30, 2013 was $6,104,000, or $1.12 per diluted share, compared to $9,284,000, or $1.71 per diluted share, for the comparable
period in 2012.
Net sales in the third quarter of 2013 were $100,828,000 compared to sales of $114,206,000 in the third quarter of 2012.
Net income for the nine months ended September 30, 2013 was $17,455,000, or $3.20 per diluted share, compared to $24,013,000, or $4.42 per diluted share for the comparable period
in 2012.
Net sales were $311,233,000 for
the first nine months of 2013 compared to $334,992,000 in the first nine months of
2012.
Currency exchange rates negatively impacted net sales by
$4,286,000 for the quarter and
$7,517,000 for the first nine months
of 2013, while the negative impact on net income was $141,000 for the quarter and $465,000 for the first nine months of 2013.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "All four of our regional segments
experienced decreases in net income. The decrease in net
income is primarily sales and mix driven. We expected a
decrease in sales in the United
States during 2013 as a number of unique transmissions
projects were completed during 2012. Throughout our foreign
operations we are seeing government-owned utilities deferring their
transmission and distribution projects due to ongoing weak global
economic conditions resulting in lower sales for our
subsidiaries. We continue to attend to the right sizing of
our operations to meet current demand while remaining prepared for
projected market growth as projects come back on stream."
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, Indonesia, Malaysia, Mexico, New
Zealand, Poland,
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 2012
Annual Report on Form 10-K filed with the SEC on March 15, 2013 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 month periods
ended September 30,
|
|
Nine month periods
ended September 30,
|
|
|
|
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
100,828
|
|
$
114,206
|
|
$
311,233
|
|
$
334,992
|
|
Cost of products
sold
|
|
69,168
|
|
75,699
|
|
210,725
|
|
223,507
|
|
|
|
GROSS
PROFIT
|
|
31,660
|
|
38,507
|
|
100,508
|
|
111,485
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
8,874
|
|
9,344
|
|
27,226
|
|
27,746
|
|
|
General and
administrative
|
|
10,386
|
|
12,788
|
|
33,993
|
|
36,944
|
|
|
Research and
engineering
|
|
3,714
|
|
3,893
|
|
11,055
|
|
11,295
|
|
|
Other operating
expense (income)
|
|
419
|
|
(677)
|
|
2,611
|
|
562
|
|
|
|
|
|
23,393
|
|
25,348
|
|
74,885
|
|
76,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
8,267
|
|
13,159
|
|
25,623
|
|
34,938
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
204
|
|
160
|
|
454
|
|
476
|
|
|
Interest
expense
|
|
(121)
|
|
(144)
|
|
(329)
|
|
(489)
|
|
|
Other
income
|
|
194
|
|
235
|
|
393
|
|
589
|
|
|
|
|
|
277
|
|
251
|
|
518
|
|
576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
8,544
|
|
13,410
|
|
26,141
|
|
35,514
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
2,440
|
|
4,126
|
|
8,686
|
|
11,501
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
6,104
|
|
$
9,284
|
|
$
17,455
|
|
$
24,013
|
|
|
|
|
|
|
|
|
|
|
|
|
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BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income to PLPC
common shareholders
|
|
$
1.14
|
|
$
1.75
|
|
$
3.25
|
|
$
4.51
|
|
|
|
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
|
|
|
Net Income to PLPC
common shareholders
|
|
$
1.12
|
|
$
1.71
|
|
$
3.20
|
|
$
4.42
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
$
0.40
|
|
$
0.60
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,361
|
|
5,319
|
|
5,369
|
|
5,328
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,449
|
|
5,431
|
|
5,450
|
|
5,432
|
PREFORMED LINE
PRODUCTS COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
(UNAUDITED)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
September
30,
|
|
December
31,
|
Thousands of
dollars, except share and per share data
|
|
2013
|
|
2012
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
|
$
31,153
|
|
$
28,120
|
Accounts receivable,
less allowances of $2,032 ($2,039 in 2012)
|
|
73,917
|
|
61,695
|
Inventories -
net
|
|
73,930
|
|
86,916
|
Deferred income
taxes
|
|
6,752
|
|
6,557
|
Prepaids
|
|
9,301
|
|
8,381
|
Other current
assets
|
|
3,638
|
|
2,432
|
|
|
TOTAL CURRENT
ASSETS
|
|
198,691
|
|
194,101
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
98,453
|
|
93,326
|
Other intangibles -
net
|
|
12,365
|
|
14,038
|
Goodwill
|
|
14,972
|
|
15,537
|
Deferred income
taxes
|
|
6,989
|
|
6,069
|
Other
assets
|
|
13,572
|
|
9,993
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
$
345,042
|
|
$
333,064
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes payable to
banks
|
|
$
501
|
|
$
217
|
Current portion of
long-term debt
|
|
191
|
|
251
|
Trade accounts
payable
|
|
23,837
|
|
21,822
|
Accrued compensation
and amounts withheld from employees
|
|
15,214
|
|
12,271
|
Accrued expenses and
other liabilities
|
|
17,333
|
|
23,682
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
57,076
|
|
58,243
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
14,951
|
|
9,322
|
Other noncurrent
liabilities and deferred income taxes
|
|
21,960
|
|
24,430
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
PLPC shareholders'
equity:
|
|
|
|
|
|
Common shares - $2 par value, 15,000,000 shares
authorized, 5,361,155 and 5,377,937 issued and outstanding, net of
732,579 and 689,472 treasury shares at par, respectively, as of
September 30, 2013 and December 31,
2012
|
10,722
|
|
10,756
|
|
Common shares issued
to Rabbi Trust, 184,787 and 184,036 shares at September 30,
2013 and December 31, 2012
|
|
(6,577)
|
|
(6,522)
|
|
Deferred Compensation
Liability
|
|
6,577
|
|
6,522
|
|
Paid in
capital
|
|
19,828
|
|
16,355
|
|
Retained
earnings
|
|
239,703
|
|
227,622
|
|
Accumulated other
comprehensive loss
|
|
(19,198)
|
|
(13,664)
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
251,055
|
|
241,069
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
$
345,042
|
|
$
333,064
|
SOURCE Preformed Line Products Company