Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2018
Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2018
MAYFIELD VILLAGE, Ohio, May 4, 2018 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter ended March 31, 2018.
Net sales for the first quarter of 2018 were $98.1 million, an increase of 16%, compared to $84.6 million in the first quarter of 2017.
The Company posted net income for the first quarter of 2018 of $5.5 million, or $1.09 per share, compared to $1.5 million, or $.30 per share, in the first quarter of 2017.
Currency translation rates had a favorable impact on 2018 first quarter net sales of $2.7 million, with only a $.1 million favorable effect on net income. Additionally, gains on foreign currency transactions had a favorable impact of $.1 million on pre-tax income for the first quarter of 2018 compared to a $.2 million favorable impact for the same period in 2017.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "The first quarter of 2018 marked our fourth consecutive quarter of double-digit sales growth. Leveraging our global manufacturing infrastructure allowed us to expand our profit margins during this period. Raw material cost increases, competitive pricing and an uncertain tariff picture point to a challenging future. We believe our goal of consistent, profitable growth is best served through our ongoing concentration on high-quality products and focused customer service."
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 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 2017 Annual Report on Form 10-K filed with the SEC on March 9, 2018 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, Three Months Ended
except per share March 31
data)
2018 2017
---- ----
Net sales $98,139 $84,569
Cost of products
sold 66,621 59,904
GROSS PROFIT 31,518 24,665
Costs and expenses
Selling 8,861 8,284
General and
administrative 10,916 10,329
Research and
engineering 3,661 3,690
Other operating
expense -net 335 104
--- ---
23,773 22,407
OPERATING INCOME 7,745 2,258
Other income
(expense)
Interest income 95 104
Interest expense (280) (299)
Other income -
net 69 55
--- ---
(116) (140)
---- ----
INCOME BEFORE INCOME TAXES 7,629 2,118
Income taxes 2,101 600
NET INCOME $5,528 $1,518
====== ======
BASIC EARNINGS PER
SHARE
Net Income $1.10 $0.30
===== =====
DILUTED EARNINGS
PER SHARE
Net Income $1.09 $0.30
===== =====
Cash dividends
declared per share $0.20 $0.20
Weighted-average
number of shares
outstanding -
basic 5,046 5,118
Weighted-average
number of shares
outstanding -
diluted 5,064 5,130
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
March 31, December 31,
(Thousands of dollars, except share and per share data) 2018 2017
---- ----
ASSETS
Cash and cash equivalents $45,488 $44,358
Accounts receivable, less allowances of $3,302 ($3,325 in 2017) 77,421 73,972
Inventories - net 83,342 77,886
Prepaids 8,932 8,700
Other current assets 2,592 2,214
----- -----
TOTAL CURRENT ASSETS 217,775 207,130
Property, plant and equipment - net 109,836 108,598
Other intangibles - net 9,818 10,020
Goodwill 16,622 16,544
Deferred income taxes 7,908 7,774
Other assets 14,002 9,719
------ -----
TOTAL ASSETS $375,961 $359,785
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable $27,653 $25,141
Notes payable to banks 1,835 864
Current portion of long-term debt 1,448 1,448
Accrued compensation and amounts withheld from employees 11,653 11,461
Accrued expenses and other liabilities 19,003 23,919
------ ------
TOTAL CURRENT LIABILITIES 61,592 62,833
Long-term debt, less current portion 43,793 34,598
Other noncurrent liabilities and deferred income taxes 23,555 23,817
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares -$2 par value, 15,000,000 shares authorized,
5,048,758 and
5,038,207 issued and outstanding, as of March 31, 2018 and December
31, 2017 12,635 12,593
Common shares issued to rabbi trust, 289,138 and 289,026 shares
at
March 31, 2018 and December 31, 2017, respectively (11,849) (11,834)
Deferred Compensation Liability 11,849 11,834
Paid-in capital 30,576 29,734
Retained earnings 316,275 311,765
Treasury shares, at cost, 1,268,976 and 1,258,069 shares
at
March 31, 2018 and December 31, 2017, respectively (68,948) (68,115)
Accumulated other comprehensive loss (43,517) (47,440)
TOTAL SHAREHOLDERS' EQUITY 247,021 238,537
------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $375,961 $359,785
======== ========
CONTACT: Michael A. Weisbarth, Preformed Line Products, (440) 473-9246
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SOURCE Preformed Line Products
