MAYFIELD VILLAGE, Ohio,
May 1, 2020 /PRNewswire/
-- Preformed Line Products Company (NASDAQ: PLPC)
today reported financial results for its first quarter ended
March 31, 2020.
Net sales for the first quarter of 2020 were $102.9 million, an increase of 6%, compared to
$97.2 million in the first quarter of
2019. Currency translation rates had an unfavorable impact on
2020 first quarter net sales of $4.1
million, or 4%.
The Company posted net income for the first quarter of 2020 of
$3.7 million, or $.74 per diluted share, compared to $1.8 million, or $.36 per diluted share, in the first quarter of
2019. Currency translation rates had an unfavorable effect on
net income of $.1 million.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "We entered 2020 in a position of strength
coming off a second consecutive year of record domestic
sales. The spread of COVID-19 during the second half of the
first quarter created challenges for us in countries that were the
earliest to be impacted by the pandemic, namely our Asia-Pacific business segment. We
quickly reacted by first protecting the health and safety of our
employees while we maintained critical operations to protect our
customers and suppliers. Amidst the COVID-19 pandemic, except
for Asia-Pacific, we were able to
deliver profitable sales growth in all other business segments
versus the same period last year. While the extent to which
the pandemic will impact the future is not yet known, we will
continue to focus on the safety and well-being of our employees,
our customers and our valued suppliers."
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, Austria, Brazil, Canada, China, Colombia, Czech
Republic, England,
France, Indonesia, Malaysia, Mexico, New
Zealand, Poland,
Russia, South Africa, Spain, Thailand and Vietnam.
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
uncertainty in business conditions and economy due to COVID-19
including the severity and duration of business disruption caused
by the pandemic, 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
2019 Annual Report on Form 10-K filed with the SEC on March 6, 2020 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
March 31
|
|
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
102,852
|
|
$
97,153
|
|
Cost of products
sold
|
|
69,942
|
|
69,888
|
|
|
|
GROSS
PROFIT
|
|
32,910
|
|
27,265
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
Selling
|
|
8,905
|
|
8,413
|
|
|
General and
administrative
|
|
13,434
|
|
12,318
|
|
|
Research and
engineering
|
|
4,296
|
|
4,140
|
|
|
Other operating
expense - net
|
|
1,122
|
|
348
|
|
|
|
|
|
27,757
|
|
25,219
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
|
5,153
|
|
2,046
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
Interest
income
|
|
111
|
|
179
|
|
|
Interest
expense
|
|
(709)
|
|
(368)
|
|
|
Other income -
net
|
|
549
|
|
71
|
|
|
|
|
|
(49)
|
|
(118)
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
|
5,104
|
|
1,928
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
|
1,451
|
|
104
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
3,653
|
|
$
1,824
|
|
|
|
|
|
|
|
|
|
Less: Net income
attributable to noncontrolling interests
|
|
45
|
|
-
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO
PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS
|
|
$
3,698
|
|
$
1,824
|
|
|
|
|
|
|
|
|
|
BASIC EARNINGS PER
SHARE
|
|
|
|
|
|
|
|
Net Income
Attributable to Preformed Line Products
Company Shareholders
|
|
$
0.74
|
|
$
0.36
|
|
|
|
|
|
|
|
|
|
DILUTED EARNINGS
PER SHARE
|
|
|
|
|
|
|
|
Net Income
Attributable to Preformed Line Products
Company Shareholders
|
|
$
0.74
|
|
$
0.36
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
|
$
0.20
|
|
$
0.20
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
|
5,008
|
|
5,045
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
|
5,017
|
|
5,054
|
|
|
|
|
|
|
|
|
|
PREFORMED LINE
PRODUCTS COMPANY
|
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
|
|
December
31,
|
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
|
|
$
34,117
|
|
$
38,929
|
|
Accounts receivable,
less allowances of $3,326 ($3,849 in 2019)
|
|
|
|
83,441
|
|
83,517
|
|
Inventories -
net
|
|
|
|
|
|
92,513
|
|
95,718
|
|
Prepaids
|
|
|
|
|
|
|
9,753
|
|
9,522
|
|
Other current
assets
|
|
|
|
|
|
2,659
|
|
4,289
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
222,483
|
|
231,975
|
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
|
|
|
|
119,356
|
|
124,018
|
|
Other intangibles -
net
|
|
|
|
|
|
13,480
|
|
15,116
|
|
Goodwill
|
|
|
|
|
|
|
25,814
|
|
27,840
|
|
Deferred income
taxes
|
|
|
|
|
|
6,094
|
|
7,564
|
|
Other
assets
|
|
|
|
|
|
26,030
|
|
27,058
|
|
|
|
|
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
413,257
|
|
$
433,571
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
|
|
|
|
$
28,534
|
|
$
28,282
|
|
Notes payable to
banks
|
|
|
|
|
|
10,512
|
|
8,696
|
|
Current portion of
long-term debt
|
|
|
|
|
3,309
|
|
3,354
|
|
Accrued compensation
and amounts withheld from employees
|
|
|
|
11,220
|
|
11,817
|
|
Accrued expenses and
other liabilities
|
|
|
|
|
20,876
|
|
28,924
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
|
74,451
|
|
81,073
|
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
58,724
|
|
53,722
|
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
28,582
|
|
30,208
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
|
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 4,995,114 and
|
|
|
|
|
|
4,992,979 issued and outstanding, as of March 31, 2020 and December
31, 2019
|
13,003
|
|
12,848
|
|
Common shares issued
to rabbi trust, 264,283 and 267,431 shares at
|
|
|
|
|
|
|
March 31, 2020 and December
31, 2019, respectively
|
|
|
|
(10,880)
|
|
(10,981)
|
|
Deferred Compensation
Liability
|
|
|
|
|
10,880
|
|
10,981
|
|
Paid-in
capital
|
|
|
|
|
|
39,747
|
|
38,854
|
|
Retained
earnings
|
|
|
|
|
|
355,984
|
|
353,292
|
|
Treasury shares, at
cost, 1,506,481 and 1,431,235 shares at
|
|
|
|
|
|
|
|
March 31, 2020 and December
31, 2019, respectively
|
|
|
|
(83,086)
|
|
(79,106)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(74,136)
|
|
(57,353)
|
|
|
TOTAL PREFORMED
LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY
|
251,512
|
|
268,535
|
|
Noncontrolling
interest
|
|
|
|
|
(12)
|
|
33
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
|
|
|
251,500
|
|
268,568
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
$
413,257
|
|
$
433,571
|
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SOURCE Preformed Line Products Company