Preformed Line Products Announces Results For The Fourth Quarter And Full Year 2019

MAYFIELD VILLAGE, Ohio, March 6, 2020 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full year 2019.

Net sales in the fourth quarter of 2019 were $113.6 million compared to $105.4 million in the fourth quarter of 2018. Net sales for 2019 were $444.9 million compared to $420.9 million in 2018. This represents an 8% increase for the fourth quarter and a 6% increase for the year.

Net income for the quarter ended December 31, 2019 was $5.6 million, or $1.09 per diluted share, compared to $5.3 million, or $1.02 per diluted share, for the comparable period in 2018. Net income for the year ended December 31, 2019 was $23.3 million, or $4.58 per diluted share, compared to $26.6 million, or $5.21 per diluted share in 2018. The U.S. Tax Cuts and Jobs Act enacted during December 2017 resulted in a $1.9 million reduction in the 2018 estimate, which favorably impacted earnings per diluted share by $.37 for the year in 2018.

Currency translation rates unfavorably impacted net sales by $1.5 million for the quarter ended December 31, 2019 and $14.2 million for the full year of 2019. Currency had a negative impact of $.1 million on net income for the quarter and $.3 million for the full year of 2019.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "The fourth quarter completed the second consecutive year of record domestic sales along with back-to-back, double-digit sales growth in local currencies at our international locations. Our acquisitions in Austria and the Czech Republic supported our non-domestic sales growth and expansion of our global substation and telecommunications markets. We have navigated through challenging raw material pricing and tariff impacts to maintain our product margins while achieving record consolidated sales for the Company."

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 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 2018 Annual Report on Form 10-K filed with the SEC on March 8, 2019 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 December 31                       Twelve Months Ended December 31



                                                                                                                                                                                                   2019                                    2018               2019               2018







     
     Net sales                                                                                                                                                         $113,649                                               $105,411         $444,861            $420,878


     
     Cost of products sold                                                                                                                                               77,469                                                 73,392          304,266             288,647



                                                        
     
              GROSS PROFIT                                                                                                                36,180                                  32,019            140,595            132,231




     
     Costs and expenses


     
     Selling                                                                                                                                                             $9,741                                                  9,061           36,609              36,358


     
     General and administrative                                                                                                                                          13,320                                                 11,539           51,806              45,398


     
     Research and engineering                                                                                                                                             4,378                                                  4,094           17,187              15,107


     
     Other operating expense - net                                                                                                                                          919                                                  (516)           2,366               2,434



                                                                                                                                                                                                 28,358                                  24,178            107,968             99,297




                                                        
     
              OPERATING INCOME                                                                                                             7,822                                   7,841             32,627             32,934




     
     Other income (expense)


     
     Interest income                                                                                                                                                       $170                                                    146              783                 486


     
     Interest expense                                                                                                                                                     (529)                                                 (298)         (2,217)            (1,290)


     
     Other income - net                                                                                                                                                    (40)                                                   190              265                 458



                                                                                                                                                                                                  (399)                                     38            (1,169)             (346)





                                                        
     
              INCOME BEFORE INCOME TAXES                                                                                                   7,423                                   7,879             31,458             32,588




     
     Income taxes                                                                                                                                                         1,821                                                  2,615            8,122               6,007





                                                        
     
              NET INCOME                                                                                                                  $5,602                                  $5,264            $23,336            $26,581



       Less: Net income attributable to noncontrolling
        interests                                                                                                                                                            (22)                                                                    33





                                                        
     
              NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS                                                     $5,624                                  $5,264            $23,303            $26,581





     
     
              BASIC EARNINGS PER SHARE


                                                        
     Net Income Attributable to Preformed Line Products Company Shareholders                                                                 $1.12                                   $1.05              $4.63              $5.28





     
     
              DILUTED EARNINGS PER SHARE


                                                        
     Net Income Attributable to Preformed Line Products Company Shareholders                                                                 $1.09                                   $1.02              $4.58              $5.21





     
     Cash dividends declared per share                                                                                                                                    $0.20                                                  $0.20            $0.80               $0.80





       Weighted-average number of shares outstanding -
        basic                                                                                                                                                               5,005                                                  5,012            5,031               5,032





       Weighted-average number of shares outstanding -
        diluted                                                                                                                                                             5,147                                                  5,173            5,087               5,107






                                                                       
          
              PREFORMED LINE PRODUCTS COMPANY


                                                                         
          
              CONSOLIDATED BALANCE SHEETS






                                                                                                                                             
     December 31,             
     December 31,



     
                (Thousands of dollars, except share and per share data)                                                                        2019                        2018





                   ASSETS



     Cash and cash equivalents                                                                                                                   $38,929                     $43,609



     Accounts receivable, less allowances of $3,849 ($3,178 in 2018)                                                                           83,517                      73,139



     Inventories - net                                                                                                                             95,718                      85,259



     Prepaids                                                                                                                                        9,522                       9,374



     Other current assets                                                                                                                           4,289                       2,882



                                                TOTAL CURRENT
                                                 ASSETS                                                                   231,975                      214,263





     Property, plant and equipment - net                                                                                                         124,018                     102,955



     Other intangibles - net                                                                                                                      15,116                       8,458



     Goodwill                                                                                                                                       27,840                      15,621



     Deferred income taxes                                                                                                                         7,564                       6,900



     Other assets                                                                                                                                  27,058                      10,600





                                                TOTAL ASSETS                                                                        $433,571                   $358,797






     
                LIABILITIES AND SHAREHOLDERS' EQUITY





     Trade accounts payable                                                                                                                      $28,282                     $26,414



     Notes payable to banks                                                                                                                        8,696                       9,042



     Current portion of long-term debt                                                                                                             3,354                       1,448



     Accrued compensation and amounts withheld from employees                                                                                  11,817                      11,153



     Accrued expenses and other liabilities                                                                                                      28,924                      21,430



                                                TOTAL CURRENT
                                                 LIABILITIES                                                               81,073                       69,487





     Long-term debt, less current portion                                                                                                         53,722                      24,960



     Other noncurrent liabilities and deferred income taxes                                                                                      30,208                      14,980





     
                SHAREHOLDERS' EQUITY



     Shareholders' equity:


                                   Common shares -$2 par value,
                                    15,000,000 shares authorized,
                                    4,992,979 and


                                       5,020,410 issued and outstanding,
                                        as of December 31, 2019 and
                                        December 31, 2018                                          12,848                 12,662


                                   Common shares issued to rabbi
                                    trust, 267,641 and 269,630 shares
                                    at


                                        December 31, 2019 and December
                                         31, 2018, respectively                                    (10,981)              (11,008)


                                   Deferred Compensation
                                    Liability                                                                              10,981                       11,008


                                   Paid-in
                                    capital                                                                                                            38,854                      34,401


                                   Retained earnings                                                                                 353,292                    334,170


                                   Treasury shares, at cost,
                                    1,431,325 and 1,310,387 shares
                                    at


                                        December 31, 2019 and December
                                         31, 2018, respectively                                    (79,106)              (72,280)


                                   Accumulated other
                                    comprehensive loss                                                                   (57,353)                    (59,583)


                                                TOTAL PREFORMED LINE PRODUCTS
                                                 COMPANY SHAREHOLDERS' EQUITY      268,535                       249,370


                                   Noncontrolling
                                    interest                                                                                              33                          -



                                                TOTAL
                                                 SHAREHOLDERS'
                                                 EQUITY                                                                   268,568                      249,370



                                                TOTAL LIABILITIES AND
                                                 SHAREHOLDERS' EQUITY             $433,571                                        $358,797








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