Preformed Line Products Announces Second Quarter And First Half 2020 Results

MAYFIELD VILLAGE, Ohio, Aug. 6, 2020 /PRNewswire/ -- Preformed Line Products Company PLPC today reported financial results for its second quarter and first six months of 2020.

Net income for the quarter ended June 30, 2020 was $10.5 million, or $2.11 per diluted share, compared to $7.9 million, or $1.56 per diluted share, for the comparable period in 2019.

Net sales in the second quarter of 2020 increased 2% to $117.6 million, compared to $114.8 million in the second quarter of 2019.

Net income for the six months ended June 30, 2020 was $14.1 million, or $2.84 per diluted share, compared to $9.7 million, or $1.92 per diluted share, for the comparable period in 2019.

Net sales increased 4% to $220.5 million for the first six months of 2020 compared to $212.0 million in the first six months of 2019.

Currency translation rates unfavorably impacted net sales by $7.1 million for the quarter and $11.3 million for the six months ended June 30, 2020.  Currency had an unfavorable impact on net income of $.5 million for the quarter and $.7 million for the first six months of 2020.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "I am so proud of our PLP employees who have gone above and beyond to serve our customers during these challenging times.  Our year over year increase in net sales was largely attributable to growth in PLP USA which was certainly aided by our commitment to maintaining a significant manufacturing footprint in the USA.  We appreciate the relationships we have with our PLP USA customers who value our ability to serve their product needs from our plants in Albemarle, North Carolina and Rogers, Arkansas allowing them to quickly support their customers.  The challenges brought on by COVID-19 will unfortunately be with us for some time.  While the extent to which COVID-19 will impact our future operations is largely unknown, we will continue to focus on the safety and well-being of our employees, their families, 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

CONSOLIDATED BALANCE SHEETS





















June 30,



December 31,

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

2020



2019













ASSETS









Cash and cash equivalents

$       36,507



$         38,929

Accounts receivable, less allowances of $3,340 ($3,849 in 2019)

94,840



83,517

Inventories - net

95,454



95,718

Prepaids



8,369



9,522

Other current assets

3,051



4,289





TOTAL CURRENT ASSETS

238,221



231,975













Property, plant and equipment - net

124,261



124,018

Other intangibles - net

13,786



15,116

Goodwill



27,048



27,840

Deferred income taxes 

6,275



7,564

Other assets

26,675



27,058

















TOTAL ASSETS

$     436,266



$       433,571













LIABILITIES AND SHAREHOLDERS' EQUITY



















Trade accounts payable

$       30,866



$         28,282

Notes payable to banks

12,402



8,696

Current portion of long-term debt

2,789



3,354

Accrued compensation and amounts withheld from employees

15,216



11,817

Accrued expenses and other liabilities

23,065



28,924





TOTAL CURRENT LIABILITIES

84,338



81,073













Long-term debt, less current portion

57,657



53,722

Other noncurrent liabilities and deferred income taxes

30,115



30,208













SHAREHOLDERS' EQUITY







Shareholders' equity:









Common shares - $2 par value, 15,000,000 shares authorized, 4,934,506 and 4,992,979 issued and outstanding, as of June 30, 2020 and December 31, 2019

13,003



12,848



Common shares issued to rabbi trust, 264,886 and 267,641 shares at June 30, 2020 and December 31, 2019, respectively

(10,910)



(10,981)



Deferred Compensation Liability

10,910



10,981



Paid-in capital

40,385



38,854



Retained earnings

365,443



353,292



Treasury shares, at cost, 1,567,692 and 1,431,235 shares at June 30, 2020 and December 31, 2019, respectively

(86,097)



(79,106)



Accumulated other comprehensive loss

(68,573)



(57,353)





TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY

264,161



268,535



Noncontrolling interest

(5)



33





TOTAL SHAREHOLDERS' EQUITY

264,156



268,568





TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$     436,266



$       433,571

 

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED OPERATIONS





























(In thousands, except per share data)



Three Months Ended June 30



Six Months Ended June 30











2020



2019



2020



2019



















































Net sales



$     117,629



$      114,842



$      220,481



$     211,995



Cost of products sold



78,063



77,035



148,005



146,923







GROSS PROFIT



39,566



37,807



72,476



65,072



























Costs and expenses





















Selling



8,439



9,046



17,344



17,458





General and administrative



12,432



12,893



25,865



25,211





Research and engineering



4,113



4,428



8,408



8,569





Other operating (income) expense - net



(225)



325



1,408



673











24,759



26,692



53,025



51,911































OPERATING INCOME 



14,807



11,115



19,451



13,161



























Other income (expense)





















Interest income



79



223



190



402





Interest expense



(719)



(585)



(1,428)



(952)





Other (expense) income - net



(282)



97



776



167











(922)



(265)



(462)



(383)































INCOME BEFORE INCOME TAXES 



13,885



10,850



18,989



12,778



























Income taxes



3,397



2,984



4,848



3,088































NET INCOME



$       10,488



$          7,866



$       14,141



$         9,690



























Less: Net income attributable to noncontrolling interests



(7)



38



38



38































NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS



$       10,481



$          7,904



$        14,179



$         9,728



























BASIC EARNINGS PER SHARE























Net Income Attributable to Preformed Line Products Company Shareholders



$           2.11



$            1.57



$            2.84



$          1.93



























DILUTED EARNINGS PER SHARE























Net Income Attributable to Preformed Line Products Company Shareholders



$           2.11



$            1.56



$            2.84



$          1.92



























Cash dividends declared per share



$           0.20



$            0.20



$            0.40



$          0.40



























Weighted-average number of shares outstanding - basic



4,966



5,049



4,987



5,047



























Weighted-average number of shares outstanding - diluted



4,973



5,058



4,994



5,056

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/preformed-line-products-announces-second-quarter-and-first-half-2020-results-301107381.html

SOURCE Preformed Line Products Company

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