Preformed Line Products Announces Second Quarter And First Half 2020 Results
MAYFIELD VILLAGE, Ohio, Aug. 6, 2020 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: 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
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SOURCE Preformed Line Products Company
