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| 8-K - FORM 8-K - PREFORMED LINE PRODUCTS CO | v239396_8k.htm |
Preformed Line Products Announces Financial Results for the Third Quarter and First Nine Months of 2011
MAYFIELD VILLAGE, Ohio, Nov. 7, 2011 /PRNewswire/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2011.
Net income for the quarter ended September 30, 2011 was $6,660,000, or $1.24 per diluted share, compared to $9,879,000, or $1.83 per diluted share, for the comparable period in 2010.
Net sales in the third quarter of 2011 were $108,690,000, an increase of 16% from sales of $93,942,000 in the third quarter of 2010.
Net income for the nine months ended September 30, 2011 increased 29% to $22,044,000, or $4.09 per diluted share, compared to $17,107,000, or $3.17 per diluted share for the comparable period in 2010.
Net sales increased 30% to $318,308,000 for the first nine months of 2011 compared to $244,987,000 in the first nine months of 2010.
Currency exchange rates favorably impacted sales by $4,704,000 for the quarter and $14,964,000 for the first nine months of 2011, while the favorable impact on net income was $351,000 for the quarter and $936,000 for the first nine months of 2011.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "We experienced significant swings in foreign exchange transaction gains and losses during the quarter. During the third quarter of 2010 we had gains of $2.1 million in transactions denominated in a currency other than the native currency. Conversely, we had losses of $2.1 million in the third quarter of 2011 due to foreign exchange transactions resulting in a $4.2 million change which is included in other operating expense. These resulted primarily from intercompany receivables and payables which are marked to market at the month end date. The weakening Australian dollar was the main cause of this significant change. At September 30, 2011 the Australian dollar weakened temporarily to $1.02 Australian dollar to the U.S. dollar. During October, the Australian dollar recovered to 93 cents to one U.S. Dollar and the $2.1 million loss from September was recovered. When we exclude the impact of these foreign exchange changes, our operating income for the third quarter of 2011 improved 12% over the third quarter of 2010.
Our strong domestic sales are being driven by utilities investment in upgrading the power grid as well as the construction of new lines for transmitting the generation of renewable energy. The realignment of our operations has positioned us to capitalize on this increased demand. Our facilities in the Asia Pacific region continue to benefit from the integration of acquisitions."
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 headings "Risk Factors" and "Forward-Looking Statements" in the Company's 2009 Annual Report on Form 10-K filed with the SEC on March 11, 2011 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 | ||||||||||||
(UNAUDITED) | ||||||||||||
In thousands, except per share data | Three month periods ended September 30, | Nine month periods ended September 30, | ||||||||||
2011 | 2010 | 2011 | 2010 | |||||||||
Net sales | $ 108,690 | $ 93,942 | $ 318,308 | $ 244,987 | ||||||||
Cost of products sold | 71,130 | 62,271 | 211,651 | 165,836 | ||||||||
GROSS PROFIT | 37,560 | 31,671 | 106,657 | 79,151 | ||||||||
Costs and expenses | ||||||||||||
Selling | 9,485 | 7,678 | 26,793 | 21,218 | ||||||||
General and administrative | 12,297 | 9,856 | 35,039 | 29,000 | ||||||||
Research and engineering | 3,239 | 2,915 | 9,816 | 8,474 | ||||||||
Other operating expense (income) | 2,459 | (1,735) | 1,671 | (745) | ||||||||
27,480 | 18,714 | 73,319 | 57,947 | |||||||||
OPERATING INCOME | 10,080 | 12,957 | 33,338 | 21,204 | ||||||||
Other income (expense) | ||||||||||||
Interest income | 131 | 84 | 422 | 261 | ||||||||
Interest expense | (177) | (162) | (654) | (458) | ||||||||
Other income | 194 | 1,005 | 421 | 1,765 | ||||||||
148 | 927 | 189 | 1,568 | |||||||||
INCOME BEFORE INCOME TAXES | 10,228 | 13,884 | 33,527 | 22,772 | ||||||||
Income taxes | 3,568 | 4,002 | 11,483 | 5,760 | ||||||||
NET INCOME | 6,660 | 9,882 | 22,044 | 17,012 | ||||||||
Less net income (loss) attributable | ||||||||||||
to noncontrolling interests, net of tax | - | 3 | - | (95) | ||||||||
NET INCOME ATTRIBUTABLE TO PLPC | $ 6,660 | $ 9,879 | $ 22,044 | $ 17,107 | ||||||||
BASIC EARNINGS PER SHARE | ||||||||||||
Net Income to PLPC common shareholders | $ 1.27 | $ 1.89 | $ 4.19 | $ 3.26 | ||||||||
DILUTED EARNINGS PER SHARE | ||||||||||||
Net Income to PLPC common shareholders | $ 1.24 | $ 1.83 | $ 4.09 | $ 3.17 | ||||||||
Cash dividends declared per share | $ 0.20 | $ 0.20 | $ 0.60 | $ 0.60 | ||||||||
Weighted-average number of shares outstanding - basic | 5,253 | 5,238 | 5,263 | 5,248 | ||||||||
Weighted-average number of shares outstanding - diluted | 5,381 | 5,390 | 5,386 | 5,396 | ||||||||
PREFORMED LINE PRODUCTS COMPANY | ||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||
(UNAUDITED) | ||||||||
September 30, | December 31, | |||||||
Thousands of dollars, except share and per share data | 2011 | 2010 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ 23,751 | $ 22,655 | ||||||
Accounts receivable, less allowances of $1,816 ($1,213 in 2010) | 68,959 | 56,102 | ||||||
Inventories - net | 85,014 | 73,121 | ||||||
Deferred income taxes | 6,262 | 4,784 | ||||||
Prepaids | 9,839 | 9,069 | ||||||
Other current assets | 2,262 | 1,611 | ||||||
TOTAL CURRENT ASSETS | 196,087 | 167,342 | ||||||
Property and equipment - net | 78,855 | 76,266 | ||||||
Other intangibles - net | 11,654 | 12,735 | ||||||
Goodwill | 12,222 | 12,346 | ||||||
Deferred income taxes | 4,032 | 3,615 | ||||||
Other assets | 9,385 | 8,675 | ||||||
TOTAL ASSETS | $ 312,235 | $ 280,979 | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||
Notes payable to banks | $ 2,686 | $ 1,246 | ||||||
Current portion of long-term debt | 605 | 1,276 | ||||||
Trade accounts payable | 27,317 | 27,001 | ||||||
Accrued compensation and amounts withheld from employees | 16,078 | 9,848 | ||||||
Accrued expenses and other liabilities | 24,110 | 17,187 | ||||||
TOTAL CURRENT LIABILITIES | 70,796 | 56,558 | ||||||
Long-term debt, less current portion | 13,381 | 9,374 | ||||||
Other noncurrent liabilities and deferred income taxes | 18,249 | 18,382 | ||||||
SHAREHOLDERS' EQUITY | ||||||||
PLPC shareholders' equity: | ||||||||
Common shares - $2 par value, 15,000,000 shares authorized, | ||||||||
5,248,396 and 5,270,977 issued and outstanding, | ||||||||
net of 639,138 and 586,746 treasury shares at par, respectively | 10,497 | 10,542 | ||||||
Common shares issued to Rabbi Trust | (1,280) | (1,200) | ||||||
Deferred Compensation Liability | 1,280 | 1,200 | ||||||
Paid in capital | 12,092 | 8,748 | ||||||
Retained earnings | 198,668 | 184,060 | ||||||
Accumulated other comprehensive loss | (11,448) | (6,010) | ||||||
TOTAL PLPC SHAREHOLDERS' EQUITY | 209,809 | 197,340 | ||||||
Noncontrolling interest | - | (675) | ||||||
TOTAL SHAREHOLDERS' EQUITY | 209,809 | 196,665 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 312,235 | $ 280,979 | ||||||
CONTACT: Eric R. Graef, Preformed Line Products, +1-440-473-9249