Preformed Line Products Announces Financial Results For The

|May 1|magazine16 min read

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