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Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2019




MAYFIELD VILLAGE, Ohio, May 3, 2019 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for its first quarter ended March 31, 2019.

Preformed Line Products - The connection you can count on. (PRNewsfoto/Preformed Line Products)

Net sales for the first quarter of 2019 were $97.2 million, a decrease of less than 1%, compared to $98.1 million in the first quarter of 2018.  Currency translation rates had an unfavorable impact on 2019 first quarter net sales of $4.8 million, or 5%. 

The Company posted net income for the first quarter of 2019 of $1.8 million, or $.36 per diluted share, compared to $5.5 million, or $1.09 per diluted share, in the first quarter of 2018.  Currency translation rates had a favorable effect on net income of $.2 million

Rob Ruhlman, Chairman and Chief Executive Officer, said, "Sales in local currencies increased four percent in the first quarter, building on the sixteen percent gain we achieved in the same period last year.  Regional and product sales mix had an impact on margins in the quarter, but this is not unusual given our global reach and the depth of our product portfolio, which has been expanded further in the first quarter with acquisitions in both Austria and the Czech Republic, further strengthening our energy and communications product lines."

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 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 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 March 31






2019


2018


















Net sales


$              97,153


$       98,139


Cost of products sold


69,888


66,621




GROSS PROFIT


27,265


31,518










Costs and expenses







Selling


8,413


8,861



General and administrative


12,318


10,916



Research and engineering


4,140


3,661



Other operating expense - net


348


335






25,219


23,773












OPERATING INCOME 


2,046


7,745










Other income (expense)







Interest income


179


95



Interest expense


(368)


(280)



Other income - net


71


69






(118)


(116)












INCOME BEFORE INCOME TAXES 


1,928


7,629










Income taxes


104


2,101












NET INCOME


$                1,824


$         5,528










BASIC EARNINGS PER SHARE







Net Income


$                  0.36


$           1.10










DILUTED EARNINGS PER SHARE







Net Income


$                  0.36


$           1.09










Cash dividends declared per share


$                  0.20


$           0.20










Weighted-average number of shares outstanding - basic


5,045


5,046










Weighted-average number of shares outstanding - diluted


5,054


5,064


 


PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS





















March 31,


December 31,

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




2019


2018












ASSETS










Cash and cash equivalents





$            43,457


$            43,609

Accounts receivable, less allowances of $3,536 ($3,178 in 2018)




73,604


73,139

Inventories - net






87,557


85,259

Prepaids







12,261


9,374

Other current assets






4,069


2,882



TOTAL CURRENT ASSETS





220,948


214,263












Property, plant and equipment - net





103,186


102,955

Other intangibles - net






8,318


8,458

Goodwill







25,465


15,621

Deferred income taxes 






6,737


6,900

Other assets






22,474


10,600














TOTAL ASSETS





$          387,128


$          358,797












LIABILITIES AND SHAREHOLDERS' EQUITY


















Trade accounts payable






$            25,743


$            26,414

Notes payable to banks






7,778


9,042

Current portion of long-term debt





1,494


1,448

Accrued compensation and amounts withheld from employees




11,528


11,153

Accrued expenses and other liabilities





24,395


21,430



TOTAL CURRENT LIABILITIES





70,938


69,487












Long-term debt, less current portion





41,769


24,960

Other noncurrent liabilities and deferred income taxes




24,218


14,980












SHAREHOLDERS' EQUITY








Shareholders' equity:










Common shares - $2 par value, 15,000,000 shares authorized, 5,059,380 and






    5,020,410 issued and outstanding, as of March 31, 2019 and December 31, 2018

12,821


12,662


Common shares issued to rabbi trust, 270,335 and 269,630 shares at







     March 31, 2019 and December 31, 2018, respectively




(11,038)


(11,008)


Deferred Compensation Liability





11,038


11,008


Paid-in capital






35,146


34,401


Retained earnings






334,947


334,170


Treasury shares, at cost, 1,351,278 and 1,310,387 shares at 








     March 31, 2019 and December 31, 2018, respectively




(74,574)


(72,280)


Accumulated other comprehensive loss





(58,137)


(59,583)



TOTAL SHAREHOLDERS' EQUITY




250,203


249,370














TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY



$          387,128


$          358,797

 

Cision

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