Preformed Line Products Announces Second Quarter And First Half 2017 Results
MAYFIELD VILLAGE, Ohio, Aug. 4, 2017 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for its second quarter and first six months of 2017.
Net income for the quarter ended June 30, 2017 was $4.2 million, or $.81 per diluted share, compared to $2.8 million, or $.53 per diluted share, for the comparable period in 2016.
Net sales in the second quarter of 2017 increased 17% to $97.5 million, compared to $83.2 million in the second quarter of 2016.
Net income for the six months ended June 30, 2017 was $5.7 million, or $1.11 per diluted share, compared to $5.4 million, or $1.04 per diluted share, for the comparable period in 2016.
Net sales increased 12% to $182.1 million for the first six months of 2017 compared to $161.9 million in the first six months of 2016.
Currency translation rates favorably impacted net sales by $1.4 million for the first six months and less than $.1 million for the quarter ended June 30, 2017. Currency had a negative impact on net income for each of the same periods of less than $.1 million.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our sales momentum from the first quarter continued to strengthen as we achieved year-over-year, double-digit sales growth across each of our segments in the second quarter. While raw material costs have remained higher, we also expanded our gross profit nearly eleven percent. We have leveraged our cost structure to deliver our strongest bottom line results for this period in the last three 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, Brazil, Canada, China, Colombia, 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 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, the Company's ability to strengthen and retain relationships with the Company's customers and expanding geographically, the Company's ability to identify, complete and integrate acquisitions for profitable growth, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2016 Annual Report on Form 10-K filed with the SEC on March 10, 2017 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 June 30 Six Months June 30
2017 2016 2017 2016
---- ---- ---- ----
Net sales $97,512 $83,220 $182,081 $161,903
Cost of products sold 67,839 56,414 127,743 110,807
GROSS PROFIT 29,673 26,806 54,338 51,096
Costs and expenses
Selling 8,626 8,183 16,910 15,814
General and administrative 10,772 10,962 21,101 21,049
Research and engineering 3,612 3,609 7,301 7,347
Other operating expense (income) -
net 369 (27) 474 (880)
--- --- --- ----
23,379 22,727 45,786 43,330
OPERATING INCOME 6,294 4,079 8,552 7,766
Other income (expense)
Interest income 160 68 264 143
Interest expense (277) (166) (577) (324)
Other income (expense) - net 81 (208) 137 (156)
--- ---- --- ----
(36) (306) (176) (337)
--- ---- ---- ----
INCOME BEFORE INCOME TAXES 6,258 3,773 8,376 7,429
Income taxes 2,102 1,018 2,702 2,016
NET INCOME $4,156 $2,755 $5,674 $5,413
====== ====== ====== ======
BASIC EARNINGS PER SHARE
Net Income $0.81 $0.53 $1.11 $1.04
===== ===== ===== =====
DILUTED EARNINGS PER SHARE
Net Income $0.81 $0.53 $1.11 $1.04
===== ===== ===== =====
Cash dividends declared per share $0.20 $0.20 $0.40 $0.40
Weighted-average number of shares
outstanding - basic 5,116 5,186 5,117 5,198
Weighted-average number of shares
outstanding - diluted 5,127 5,208 5,132 5,218
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(Thousands of dollars, except share and per share data) 2017 2016
---- ----
(Unaudited)
ASSETS
Cash and cash equivalents $28,002 $30,737
Accounts receivable, less allowances of $3,221 ($3,210 in 2016) 79,686 63,415
Inventories - net 75,498 74,484
Prepaids 4,040 12,035
Other current assets 8,290 8,436
----- -----
195,516 189,107
TOTAL CURRENT ASSETS
Property, plant and equipment - net 107,234 105,104
Other intangibles - net 10,468 10,475
Goodwill 16,478 15,769
Deferred income taxes 10,897 10,208
Other assets 10,978 10,274
------ ------
$351,571 $340,937
TOTAL ASSETS
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable $24,145 $21,978
Notes payable to banks 1,379 1,315
Current portion of long-term debt 1,448 1,448
Accrued compensation and amounts withheld from employees 12,355 10,040
Accrued expenses and other liabilities 19,753 20,674
------ ------
59,080 55,455
TOTAL CURRENT LIABILITIES
Long-term debt, less current portion 36,570 42,943
Other noncurrent liabilities and deferred income taxes 19,324 18,996
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares -$2 par value, 15,000,000 shares authorized, 5,115,981
and
5,117,753 issued and outstanding, as of June 30, 2017 and December
31, 2016 12,514 12,508
Common shares issued to rabbi trust, 297,840 and 297,281 shares
at
June 30, 2017 and December 31, 2016, respectively (12,089) (12,054)
Deferred Compensation Liability 12,089 12,054
Paid-in capital 25,916 24,629
Retained earnings 306,979 303,415
Treasury shares, at cost, 1,140,816 and 1,136,443 shares at
June 30, 2017 and December 31, 2016, respectively (59,880) (59,640)
Accumulated other comprehensive loss (48,932) (57,369)
236,597 223,543
TOTAL SHAREHOLDERS' EQUITY
$351,571 $340,937
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
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SOURCE Preformed Line Products Company
