Attached files
| file | filename |
|---|---|
| 8-K - PREFORMED LINE PRODUCTS CO | v183010_8k.htm |
|
For
immediate release
|
Eric
R. Graef
|
|
April
30, 2010
|
Preformed
Line Products
|
|
(440)
473-9249
|
PREFORMED
LINE PRODUCTS ANNOUNCES FINANCIAL RESULTS
FOR
THE QUARTER ENDED MARCH 31, 2010
Mayfield
Village, Ohio, April 30, 2010 – Preformed Line Products Company
(Nasdaq:PLPC) today reported financial results for the first quarter
ended March 31, 2010.
Net
income for the quarter ended March 31, 2010 was $1,132,000, or $.21 per diluted
share, compared to $2,722,000, or $.51 per diluted share, for the comparable
period in 2009.
Net sales
for the first quarter of 2010 increased 17% to $68,908,000 compared to
$58,694,000 in the first quarter of 2009.
Currency
translation had a positive impact on sales and net income for the quarter of
$6.9 million and $.4 million, respectively.
Rob
Ruhlman, Chairman and Chief Executive Officer, said, “Our overall results for
the current quarter were disappointing given the 17% increase in
sales. Increases in our raw material costs and integration expenses
related to the acquisition of Dulmison in December 2009 contributed to the
decline in our operating profit. The improvement in sales as a
result of adding Dulmison was offset by the continuing faltering economy in
Europe as well as the ongoing economic challenges in the U.S. If we
have an uptick in sales in the second quarter, there should be a corresponding
improvement in leveraging our expenses.”
PAGE
2/PLP ANNOUNCES FIRST QUARTER RESULTS
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 three
domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New
Mexico, and Albemarle, North Carolina. The Company serves its
worldwide market through international operations in Australia, Brazil, Canada,
China, England, Indonesia, Malaysia, Mexico, New Zealand, Poland, 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, increases in raw material prices, the Company's ability to identify,
complete and integrate acquisitions for profitable growth, and other factors
described under the heading “Forward-Looking Statements" in the Company's 2009
Annual Report on Form 10-K filed with the SEC on March 15, 2010. 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
(UNAUDITED)
|
Thousands,
except per share data
|
Three month periods ended March
31,
|
|||||||
|
2010
|
2009
|
|||||||
|
Net
sales
|
$ | 68,908 | $ | 58,694 | ||||
|
Cost
of products sold
|
48,883 | 40,116 | ||||||
|
GROSS
PROFIT
|
20,025 | 18,578 | ||||||
|
Costs
and expenses
|
||||||||
|
Selling
|
6,502 | 5,364 | ||||||
|
General
and administrative
|
9,478 | 7,052 | ||||||
|
Research
and engineering
|
2,859 | 2,061 | ||||||
|
Other
operating (expense) income
|
(145 | ) | 289 | |||||
| 18,694 | 14,766 | |||||||
|
OPERATING
INCOME
|
1,331 | 3,812 | ||||||
|
Other
income (expense)
|
||||||||
|
Interest
income
|
83 | 125 | ||||||
|
Interest
expense
|
(170 | ) | (109 | ) | ||||
|
Other
income
|
351 | 479 | ||||||
| 264 | 495 | |||||||
|
INCOME
BEFORE INCOME TAXES
|
1,595 | 4,307 | ||||||
|
Income
taxes
|
561 | 1,590 | ||||||
|
NET
INCOME
|
1,034 | 2,717 | ||||||
|
Less
net (loss) attributable to noncontrolling interests, net of
tax
|
(98 | ) | (5 | ) | ||||
|
NET
INCOME ATTRIBUTABLE TO PLPC
|
$ | 1,132 | $ | 2,722 | ||||
|
BASIC
EARNINGS PER SHARE
|
||||||||
|
Net
Income to PLPC common shareholders
|
$ | 0.22 | $ | 0.52 | ||||
|
DILUTED
EARNINGS PER SHARE
|
||||||||
|
Net
Income to PLPC common shareholders
|
$ | 0.21 | $ | 0.51 | ||||
|
Cash
dividends declared per share
|
$ | 0.20 | $ | 0.20 | ||||
|
Weighted-average
number of shares outstanding - basic
|
5,252 | 5,225 | ||||||
|
Weighted-average
number of shares outstanding - diluted
|
5,403 | 5,305 | ||||||
PREFORMED
LINE PRODUCTS COMPANY
CONSOLIDATED
BALANCE SHEETS
(UNAUDITED)
|
March
31,
|
December
31,
|
|||||||
|
Thousands
of dollars, except share and per share data
|
2010
|
2009
|
||||||
|
ASSETS
|
||||||||
|
Cash
and cash equivalents
|
$ | 24,751 | $ | 24,097 | ||||
|
Accounts
receivable, less allowances of $794 ($995 in 2009)
|
49,277 | 49,245 | ||||||
|
Inventories
- net
|
58,293 | 56,036 | ||||||
|
Deferred
income taxes
|
3,142 | 3,256 | ||||||
|
Prepaids
|
5,873 | 4,263 | ||||||
|
Other
current assets
|
1,138 | 2,062 | ||||||
|
TOTAL
CURRENT ASSETS
|
142,474 | 138,959 | ||||||
|
Property
and equipment - net
|
69,592 | 67,766 | ||||||
|
Patents
and other intangibles - net
|
7,988 | 8,087 | ||||||
|
Goodwill
|
6,992 | 6,925 | ||||||
|
Deferred
income taxes
|
4,858 | 4,358 | ||||||
|
Other
assets
|
8,514 | 9,277 | ||||||
|
TOTAL
ASSETS
|
$ | 240,418 | $ | 235,372 | ||||
|
LIABILITIES
AND SHAREHOLDERS' EQUITY
|
||||||||
|
Notes
payable to banks
|
$ | 3,570 | $ | 3,181 | ||||
|
Current
portion of long-term debt
|
1,480 | 1,330 | ||||||
|
Trade
accounts payable
|
19,484 | 18,764 | ||||||
|
Accrued
compensation and amounts withheld from employees
|
9,770 | 8,345 | ||||||
|
Accrued
expenses and other liabilities
|
12,106 | 14,720 | ||||||
|
TOTAL
CURRENT LIABILITIES
|
46,410 | 46,340 | ||||||
|
Long-term
debt, less current portion
|
7,646 | 3,099 | ||||||
|
Other
noncurrent liabilities and deferred income taxes
|
15,153 | 15,112 | ||||||
|
SHAREHOLDERS'
EQUITY
|
||||||||
|
PLPC
shareholders' equity:
|
||||||||
|
Common
shares - $2 par value, 15,000,000 shares authorized, 5,253,140 and
5,248,298 issued and outstanding, net of 554,205 and 554,059 treasury
shares at par, respectively
|
10,506 | 10,497 | ||||||
|
Paid
in capital
|
6,448 | 5,885 | ||||||
|
Retained
earnings
|
166,122 | 165,953 | ||||||
|
Accumulated
other comprehensive loss
|
(11,481 | ) | (11,369 | ) | ||||
|
TOTAL
PLPC SHAREHOLDERS' EQUITY
|
171,595 | 170,966 | ||||||
|
Noncontrolling
interest
|
(386 | ) | (145 | ) | ||||
|
TOTAL
SHAREHOLDERS' EQUITY
|
171,209 | 170,821 | ||||||
|
TOTAL
LIABILITIES AND SHAREHOLDERS' EQUITY
|
$ | 240,418 | $ | 235,372 | ||||