Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2020

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

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