MAYFIELD VILLAGE, Ohio, March 6, 2020 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full year 2019.
Net sales in the fourth quarter of 2019 were $113.6 million compared to $105.4 million in the fourth quarter of 2018. Net sales for 2019 were $444.9 million compared to $420.9 million in 2018. This represents an 8% increase for the fourth quarter and a 6% increase for the year.
Net income for the quarter ended December 31, 2019 was $5.6 million, or $1.09 per diluted share, compared to $5.3 million, or $1.02 per diluted share, for the comparable period in 2018. Net income for the year ended December 31, 2019 was $23.3 million, or $4.58 per diluted share, compared to $26.6 million, or $5.21 per diluted share in 2018. The U.S. Tax Cuts and Jobs Act enacted during December 2017 resulted in a $1.9 million reduction in the 2018 estimate, which favorably impacted earnings per diluted share by $.37 for the year in 2018.
Currency translation rates unfavorably impacted net sales by $1.5 million for the quarter ended December 31, 2019 and $14.2 million for the full year of 2019. Currency had a negative impact of $.1 million on net income for the quarter and $.3 million for the full year of 2019.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "The fourth quarter completed the second consecutive year of record domestic sales along with back-to-back, double-digit sales growth in local currencies at our international locations. Our acquisitions in Austria and the Czech Republic supported our non-domestic sales growth and expansion of our global substation and telecommunications markets. We have navigated through challenging raw material pricing and tariff impacts to maintain our product margins while achieving record consolidated sales for the Company."
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 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 December 31 | Twelve Months Ended December 31 | |||||||||||
2019 | 2018 | 2019 | 2018 | ||||||||||
Net sales | $ 113,649 | $ 105,411 | $ 444,861 | $ 420,878 | |||||||||
Cost of products sold | 77,469 | 73,392 | 304,266 | 288,647 | |||||||||
GROSS PROFIT | 36,180 | 32,019 | 140,595 | 132,231 | |||||||||
Costs and expenses | |||||||||||||
Selling | $ 9,741 | 9,061 | 36,609 | 36,358 | |||||||||
General and administrative | 13,320 | 11,539 | 51,806 | 45,398 | |||||||||
Research and engineering | 4,378 | 4,094 | 17,187 | 15,107 | |||||||||
Other operating expense - net | 919 | (516) | 2,366 | 2,434 | |||||||||
28,358 | 24,178 | 107,968 | 99,297 | ||||||||||
OPERATING INCOME | 7,822 | 7,841 | 32,627 | 32,934 | |||||||||
Other income (expense) | |||||||||||||
Interest income | $ 170 | 146 | 783 | 486 | |||||||||
Interest expense | (529) | (298) | (2,217) | (1,290) | |||||||||
Other income - net | (40) | 190 | 265 | 458 | |||||||||
(399) | 38 | (1,169) | (346) | ||||||||||
INCOME BEFORE INCOME TAXES | 7,423 | 7,879 | 31,458 | 32,588 | |||||||||
Income taxes | 1,821 | 2,615 | 8,122 | 6,007 | |||||||||
NET INCOME | $ 5,602 | $ 5,264 | $ 23,336 | $ 26,581 | |||||||||
Less: Net income attributable to noncontrolling interests | (22) | - | 33 | - | |||||||||
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS | $ 5,624 | $ 5,264 | $ 23,303 | $ 26,581 | |||||||||
BASIC EARNINGS PER SHARE | |||||||||||||
Net Income Attributable to Preformed Line Products Company Shareholders | $ 1.12 | $ 1.05 | $ 4.63 | $ 5.28 | |||||||||
DILUTED EARNINGS PER SHARE | |||||||||||||
Net Income Attributable to Preformed Line Products Company Shareholders | $ 1.09 | $ 1.02 | $ 4.58 | $ 5.21 | |||||||||
Cash dividends declared per share | $ 0.20 | $ 0.20 | $ 0.80 | $ 0.80 | |||||||||
Weighted-average number of shares outstanding - basic | 5,005 | 5,012 | 5,031 | 5,032 | |||||||||
Weighted-average number of shares outstanding - diluted | 5,147 | 5,173 | 5,087 | 5,107 | |||||||||
PREFORMED LINE PRODUCTS COMPANY | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
December 31, | December 31, | |||||||||
(Thousands of dollars, except share and per share data) | 2019 | 2018 | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ 38,929 | $ 43,609 | ||||||||
Accounts receivable, less allowances of $3,849 ($3,178 in 2018) | 83,517 | 73,139 | ||||||||
Inventories - net | 95,718 | 85,259 | ||||||||
Prepaids | 9,522 | 9,374 | ||||||||
Other current assets | 4,289 | 2,882 | ||||||||
TOTAL CURRENT ASSETS | 231,975 | 214,263 | ||||||||
Property, plant and equipment - net | 124,018 | 102,955 | ||||||||
Other intangibles - net | 15,116 | 8,458 | ||||||||
Goodwill | 27,840 | 15,621 | ||||||||
Deferred income taxes | 7,564 | 6,900 | ||||||||
Other assets | 27,058 | 10,600 | ||||||||
TOTAL ASSETS | $ 433,571 | $ 358,797 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Trade accounts payable | $ 28,282 | $ 26,414 | ||||||||
Notes payable to banks | 8,696 | 9,042 | ||||||||
Current portion of long-term debt | 3,354 | 1,448 | ||||||||
Accrued compensation and amounts withheld from employees | 11,817 | 11,153 | ||||||||
Accrued expenses and other liabilities | 28,924 | 21,430 | ||||||||
TOTAL CURRENT LIABILITIES | 81,073 | 69,487 | ||||||||
Long-term debt, less current portion | 53,722 | 24,960 | ||||||||
Other noncurrent liabilities and deferred income taxes | 30,208 | 14,980 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Shareholders' equity: | ||||||||||
Common shares - $2 par value, 15,000,000 shares authorized, 4,992,979 and | ||||||||||
5,020,410 issued and outstanding, as of December 31, 2019 and December 31, 2018 | 12,848 | 12,662 | ||||||||
Common shares issued to rabbi trust, 267,641 and 269,630 shares at | ||||||||||
December 31, 2019 and December 31, 2018, respectively | (10,981) | (11,008) | ||||||||
Deferred Compensation Liability | 10,981 | 11,008 | ||||||||
Paid-in capital | 38,854 | 34,401 | ||||||||
Retained earnings | 353,292 | 334,170 | ||||||||
Treasury shares, at cost, 1,431,325 and 1,310,387 shares at | ||||||||||
December 31, 2019 and December 31, 2018, respectively | (79,106) | (72,280) | ||||||||
Accumulated other comprehensive loss | (57,353) | (59,583) | ||||||||
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY | 268,535 | 249,370 | ||||||||
Noncontrolling interest | 33 | - | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 268,568 | 249,370 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 433,571 | $ 358,797 | ||||||||
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SOURCE Preformed Line Products Company
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