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 November 9, 2015 - 10:38 AM EST
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Preformed Line Products Announces Financial Results for the Third Quarter and First Nine Months of 2015

MAYFIELD VILLAGE, Ohio, Nov. 9, 2015 /PRNewswire/ -- Preformed Line Products Company (Nasdaq:  PLPC) today reported financial results for the third quarter and the first nine months of 2015.

Net income for the nine months ended September 30, 2015, was $3,630,000, or $.67 per diluted share, compared to $10,373,000, or $1.92 per diluted share, for the same period in 2014.  Net income for the quarter ended September 30, 2015, was $206,000, or $.04 per diluted share, compared to net income of $2,555,000, or $.48 per diluted share, for the comparable period in 2014.

Net sales were $262,705,000 for the first nine months of 2015 compared to $292,006,000 in the first nine months of 2014.  Net sales in the third quarter of 2015 were $89,046,000 compared to sales of $102,100,000 in the third quarter of 2014.

Currency exchange rates unfavorably impacted net sales $11,574,000 for the quarter and $26,327,000 for the first nine months of 2015, while there was a favorable impact on net income of $673,000 for the quarter and $610,000 for the first nine months of 2015.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Excluding the negative impact of currency exchange rates, sales year-to-date and for the quarter were down one percent.  In addition to the impact on sales and net income of translating foreign denominated financials, we also recorded currency losses of $7.5 million for the year and $4.1 million in the quarter, primarily from translating intercompany activity denominated in foreign currencies.  We continue to reconfigure our worldwide operations in response to market demands and the changes we have made to date have resulted in restructuring costs of $2.1 million for the quarter and $2.7 million for the year."

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, 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, workforce disruptions 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 September 30


Nine Months Ended September 30






2015


2014


2015


2014


























Net sales


$               89,046


$      102,100


$          262,705


$       292,006


Cost of products sold


62,887


69,645


185,342


200,906




GROSS PROFIT


26,159


32,455


77,363


91,100














Costs and expenses











Selling


7,893


9,444


22,852


27,010



General and administrative


8,010


10,153


27,596


32,147



Research and engineering


3,745


4,399


11,320


12,357



Other operating expense (income) - net


4,425


3,324


8,410


2,626






24,073


27,320


70,178


74,140
















OPERATING INCOME


2,086


5,135


7,185


16,960














Other income (expense)











Interest income


103


138


317


345



Interest expense


(141)


(141)


(423)


(504)



Other income (expense) - net


93


162


(531)


236






55


159


(637)


77
















INCOME BEFORE INCOME TAXES 


2,141


5,294


6,548


17,037














Income taxes


1,935


2,739


2,918


6,664
















NET INCOME


$                    206


$          2,555


$              3,630


$         10,373














BASIC EARNINGS PER SHARE











Net Income


$                   0.04


$            0.48


$                0.67


$             1.93














DILUTED EARNINGS PER SHARE











Net Income


$                   0.04


$            0.48


$                0.67


$             1.92














Cash dividends declared per share


$                   0.20


$            0.20


$                0.60


$             0.60














Weighted-average number of shares outstanding - basic


5,356


5,372


5,381


5,384














Weighted-average number of shares outstanding - diluted


5,372


5,376


5,397


5,389













 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS





















September 30,


December 31,

(Thousands of dollars, except share and per share data)




2015


2014









(Unaudited)



ASSETS










Cash and cash equivalents





$              26,870


$              29,643

Accounts receivable, less allowances of $2,135 ($2,370 in 2014)




66,195


67,942

Inventories - net






73,071


80,037

Deferred income taxes 






8,886


7,249

Prepaids







10,579


9,167

Other current assets






7,904


6,625



TOTAL CURRENT ASSETS





193,505


200,663












Property, plant and equipment - net





92,209


102,531

Other intangibles - net






11,323


14,121

Goodwill







15,551


17,792

Deferred income taxes 






6,656


5,773

Other assets






12,477


13,087














TOTAL ASSETS





$            331,721


$            353,967












LIABILITIES AND SHAREHOLDERS' EQUITY


















Notes payable to banks






$                1,027


$                1,809

Current portion of long-term debt





104


116

Trade accounts payable






22,392


22,332

Accrued compensation and amounts withheld from employees




12,318


9,876

Accrued expenses and other liabilities





19,917


21,194



TOTAL CURRENT LIABILITIES




55,758


55,327












Long-term debt, less current portion





31,659


31,749

Other noncurrent liabilities and deferred income taxes




23,718


23,966












SHAREHOLDERS' EQUITY








PLPC shareholders' equity:









Common shares - $2 par value, 15,000,000 shares authorized, 5,296,036 and





    5,397,138 issued and outstanding, net of 922,425 and 819,424 treasury






    shares at par, respectively, as of September 30, 2015 and December 31, 2014

10,592


10,794


Common shares issued to Rabbi Trust, 291,021 and 292,609 shares at






     September 30, 2015 and December 31, 2014




(11,657)


(11,790)


Deferred Compensation Liability





11,657


11,790


Paid-in capital






22,344


22,795


Retained earnings






241,557


244,470


Accumulated other comprehensive loss




(53,907)


(35,134)



TOTAL SHAREHOLDERS' EQUITY




220,586


242,925














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$            331,721


$            353,967












 

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/preformed-line-products-announces-financial-results-for-the-third-quarter-and-first-nine-months-of-2015-300174802.html

SOURCE Preformed Line Products Company


Source: PR Newswire (November 9, 2015 - 10:38 AM EST)

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