August 2, 2019 - 9:27 AM EDT
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Preformed Line Products Announces Second Quarter And First Half 2019 Results

MAYFIELD VILLAGE, Ohio, Aug. 2, 2019 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for its second quarter and first six months of 2019.

Preformed Line Products - The connection you can count on. (PRNewsfoto/Preformed Line Products)

Net income for the quarter ended June 30, 2019 was $7.9 million, or $1.56 per diluted share, compared to $6.7 million, or $1.33 per diluted share, for the comparable period in 2018.

Net sales in the second quarter of 2019 increased 5% to $114.8 million, compared to $108.9 million in the second quarter of 2018.

Net income for the six months ended June 30, 2019 was $9.7 million, or $1.92 per diluted share, compared to $12.3 million, or $2.42 per diluted share, for the comparable period in 2018.

Net sales increased 2% to $212.0 million for the first six months of 2019 compared to $207.1 million in the first six months of 2018.

Currency translation rates unfavorably impacted net sales by $4.6 million for the quarter and $9.4 million for the six months ended June 30, 2019.  Currency had an unfavorable impact on net income of $.4 million for the quarter and $.2 million for the first six months of 2019.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "We are very pleased with the double-digit increase in Q2 sales over the same period last year, excluding the impact of currency exchange rates.  The strong sales performance was aided by our recent acquisitions in Austria and the Czech Republic.  Leveraging our global manufacturing infrastructure has enabled us to diminish the impact of increased tariffs and raw material costs, driving our second quarter comparative margins to the highest level in six 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, Austria, Brazil, Canada, China, Colombia, Czech Republic, 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 2018 Annual Report on Form 10-K filed with the SEC on March 8, 2019 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 June 30


Six Months Ended June 30






2019


2018


2019


2018


























Net sales


$             114,842


$      108,915


$             211,995


$      207,054


Cost of products sold


77,035


73,712


146,923


140,333




GROSS PROFIT


37,807


35,203


65,072


66,721














Costs and expenses











Selling


9,046


9,471


17,458


18,332



General and administrative


12,893


11,288


25,211


22,203



Research and engineering


4,428


3,646


8,569


7,307



Other operating expense - net


325


1,465


673


1,800






26,692


25,870


51,911


49,642
















OPERATING INCOME 


11,115


9,333


13,161


17,079














Other income (expense)











Interest income


223


134


402


229



Interest expense


(585)


(348)


(952)


(628)



Other income - net


97


105


167


173






(265)


(109)


(383)


(226)
















INCOME BEFORE INCOME TAXES 


10,850


9,224


12,778


16,853














Income taxes


2,984


2,489


3,088


4,590
















NET INCOME


$                 7,866


$          6,735


$                 9,690


$        12,263


Less: Net loss attributable to noncontrolling interests


(38)


-


(38)


-
















NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS


$                 7,904


$          6,735


$                 9,728


$        12,263














BASIC EARNINGS PER SHARE











Net Income Attributable
To Preformed Line Products Company
Shareholders


$                   1.57


$            1.34


$                   1.92


$            2.43














DILUTED EARNINGS PER SHARE











Net Income Attributable
To Preformed Line Products Company
Shareholders


$                   1.56


$            1.33


$                   1.92


$            2.42














Cash dividends declared per share


$                   0.20


$            0.20


$                   0.40


$            0.40














Weighted-average number of shares outstanding - basic


5,049


5,044


5,047


5,045














Weighted-average number of shares outstanding - diluted


5,058


5,064


5,056


5,064













 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS





















June 30,


December 31,

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




2019


2018












ASSETS










Cash and cash equivalents





$              41,260


$              43,609

Accounts receivable, less allowances of $3,753 ($3,178 in 2018)




91,767


73,139

Inventories - net






92,732


85,259

Prepaids







9,426


9,374

Other current assets






2,036


2,882



TOTAL CURRENT ASSETS





237,221


214,263












Property, plant and equipment - net





112,263


102,955

Other intangibles - net






12,859


8,458

Goodwill







28,726


15,621

Deferred income taxes 






7,462


6,900

Other assets






26,622


10,600














TOTAL ASSETS





$            425,153


$            358,797












LIABILITIES AND SHAREHOLDERS' EQUITY


















Trade accounts payable






$              28,727


$              26,414

Notes payable to banks






9,846


9,042

Current portion of long-term debt





2,279


1,448

Accrued compensation and amounts withheld from employees




14,413


11,153

Accrued expenses and other liabilities





28,237


21,430



TOTAL CURRENT LIABILITIES





83,502


69,487












Long-term debt, less current portion





55,222


24,960

Other noncurrent liabilities and deferred income taxes




28,615


14,980












SHAREHOLDERS' EQUITY








Shareholders' equity:










Common shares - $2 par value, 15,000,000 shares authorized, 5,030,181 and






    5,020,410 issued and outstanding, as of June 30, 2019 and December 31, 2018


12,822


12,662


Common shares issued to rabbi trust, 270,860 and 269,630 shares at







     June 30, 2019 and December 31, 2018, respectively




(11,066)


(11,008)


Deferred Compensation Liability





11,066


11,008


Paid-in capital






36,200


34,401


Retained earnings






341,766


334,170


Treasury shares, at cost, 1,381,002 and 1,310,387 shares at 








     June 30, 2019 and December 31, 2018, respectively




(75,992)


(72,280)


Accumulated other comprehensive loss





(56,944)


(59,583)



TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY

257,852


249,370


Noncontrolling interest





(38)


-



TOTAL SHAREHOLDERS' EQUITY




257,814


249,370



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



$            425,153


$            358,797












 

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SOURCE Preformed Line Products Company


Source: PR Newswire (August 2, 2019 - 9:27 AM EDT)

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