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.

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

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

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