Preformed Line Products Announces Second Quarter And First Half 2018 Results
MAYFIELD VILLAGE, Ohio, Aug. 3, 2018 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its second quarter and first six months of 2018.
Net income for the quarter ended June 30, 2018 was $6.7 million, or $1.33 per diluted share, compared to $4.2 million, or $.81 per diluted share, for the comparable period in 2017.
Net sales in the second quarter of 2018 increased 12% to $108.9 million, compared to $97.5 million in the second quarter of 2017.
Net income for the six months ended June 30, 2018 was $12.3 million, or $2.42 per diluted share, compared to $5.7 million, or $1.11 per diluted share, for the comparable period in 2017.
Net sales increased 14% to $207.1 million for the first six months of 2018 compared to $182.1 million in the first six months of 2017.
Currency translation rates favorably impacted net sales by $3.1 million for the first six months and $.4 million for the quarter ended June 30, 2018. Currency had a minimal impact on net income for each of the same periods of less than $.1 million.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our twelve percent sales increase for the quarter was notable on top of the seventeen percent increase we achieved in the same period last year. This evenly distributed sales increase across both our domestic and international business lines supports our global focus on growth, combined with our 71-year commitment to quality, innovation and customer service which continues to resonate with our customers and the markets we serve."
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, except per share data) Three Months Ended June 30 Six Months Ended June 30
2018 2017 2018 2017
---- ---- ---- ----
Net sales $108,915 $97,512 $207,054 $182,081
Cost of products sold 73,712 67,839 140,333 127,743
GROSS PROFIT 35,203 29,673 66,721 54,338
Costs and expenses
Selling 9,471 8,626 18,332 16,910
General and administrative 11,288 10,772 22,203 21,101
Research and engineering 3,646 3,612 7,307 7,301
Other operating expense - net 1,465 369 1,800 474
----- --- ----- ---
25,870 23,379 49,642 45,786
OPERATING INCOME 9,333 6,294 17,079 8,552
Other income (expense)
Interest income 134 160 229 264
Interest expense (348) (277) (628) (577)
Other income - net 105 81 173 137
--- --- --- ---
(109) (36) (226) (176)
---- --- ---- ----
INCOME BEFORE INCOME TAXES 9,224 6,258 16,853 8,376
Income taxes 2,489 2,102 4,590 2,702
NET INCOME $6,735 $4,156 $12,263 $5,674
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BASIC EARNINGS PER SHARE
Net Income $1.34 $0.81 $2.43 $1.11
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DILUTED EARNINGS PER SHARE
Net Income $1.33 $0.81 $2.42 $1.11
===== ===== ===== =====
Cash dividends declared per share $0.20 $0.20 $0.40 $0.40
Weighted-average number of shares outstanding -
basic 5,044 5,116 5,045 5,117
Weighted-average number of shares outstanding -
diluted 5,064 5,127 5,064 5,132
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
June 30, December 31,
(Thousands of dollars, except share and per share data) 2018 2017
---- ----
ASSETS
Cash and cash equivalents $41,395 $44,358
Accounts receivable, less allowances of $3,144 ($3,325 in 2017) 78,107 73,972
Inventories - net 83,212 77,886
Prepaids 5,369 8,700
Other current assets 6,336 2,214
----- -----
TOTAL CURRENT ASSETS 214,419 207,130
Property, plant and equipment - net 105,172 108,598
Other intangibles - net 9,093 10,020
Goodwill 15,867 16,544
Deferred income taxes 8,023 7,774
Other assets 11,506 9,719
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TOTAL ASSETS $364,080 $359,785
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LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable $28,240 $25,141
Notes payable to banks 2,722 864
Current portion of long-term debt 1,448 1,448
Accrued compensation and amounts withheld from employees 13,431 11,461
Accrued expenses and other liabilities 18,981 23,919
------ ------
TOTAL CURRENT LIABILITIES 64,822 62,833
Long-term debt, less current portion 37,308 34,598
Other noncurrent liabilities and deferred income taxes 22,421 23,817
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares -$2 par value, 15,000,000 shares authorized,
5,036,958 and
5,038,207 issued and outstanding, at June 30, 2018 and December 31,
2017 12,639 12,593
Common shares issued to rabbi trust, 269,358 and 289,026 shares
at
June 30, 2018 and December 31, 2017, respectively (10,988) (11,834)
Deferred Compensation Liability 10,988 11,834
Paid-in capital 31,657 29,734
Retained earnings 321,954 311,765
Treasury shares, at cost, 1,282,476 and 1,258,069 shares at
June 30, 2018 and December 31, 2017, respectively (69,929) (68,115)
Accumulated other comprehensive loss (56,792) (47,440)
TOTAL SHAREHOLDERS' EQUITY 239,529 238,537
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $364,080 $359,785
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SOURCE Preformed Line Products
