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Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2017
[March 09, 2018]

Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2017


MAYFIELD VILLAGE, Ohio, March 9, 2018 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full year 2017.

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

Net sales in the fourth quarter of 2017 were $96.9 million compared to $86.4 million in the fourth quarter of 2016.  Net sales for 2017 were $378.2 million compared to $336.6 million in 2016.  This represents a 12% increase for both the fourth quarter and the year, compared to the same periods in 2016.

The U.S. Tax Cuts and Jobs Act (the "Tax Act") enacted during December 2017 adversely impacted net income during the quarter and for the year as a result of a one-time net tax expense of $5.8 million.  The expense primarily relates to taxes on the Company's unremitted foreign earnings and profits and re-measurement of the Company's deferred tax assets and liabilities.  This negatively impacted earnings per diluted share by $1.11 for the fourth quarter of 2017, and $1.14 per diluted share for the year.

Including the negative impacts from the Tax Act, net income for the quarter ended December 31, 2017 was $.7 million, or $.14 per diluted share, compared to $5.1 million, or $.99 per diluted share, for the comparable period in 2016.  Net income for the year ended December 31, 2017 was $12.7 million, or $2.47 per diluted share, compared to $15.3 million, or $2.95 per diluted share in 2016. 

Rob Ruhlman, Chairman and Chief Executive Officer, said, "In our fourth quarter, we continued to build on the success we achieved across the globe in the first nine months of 2017.  We attained double-digit sales growth in each of our non-domestic segments while experiencing competitive pricing pressure throughout these markets.  Despite battling increased raw material and freight costs, our sales growth coupled with disciplined expense management led to our highest fourth quarter pre-tax earnings in the last five years."

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, Brazil, Canada, China, Colombia, 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 2016 Annual Report on Form 10-K filed with the SEC on March 10, 2017 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 December 31


Twelve Months Ended December 31




2017


2016


2017


2016





















Net sales

$               96,892


$        86,433


$             378,212


$      336,634

Cost of products sold

66,137


56,969


259,584


227,220



GROSS PROFIT

30,755


29,464


118,628


109,414











Costs and expenses









Selling

8,180


7,963


34,048


31,799


General and administrative

11,017


10,429


43,160


42,057


Research and engineering

3,505


3,247


14,327


14,025


Other operating expense - net

307


737


985


54




23,009


22,376


92,520


87,935













OPERATING INCOME 

7,746


7,088


26,108


21,479











Other income (expense)









Interest income

104


85


430


291


Interest expense

(230)


(256)


(1,061)


(844)


Other income - net

71


73


329


27




(55)


(98)


(302)


(526)













INCOME BEFORE INCOME TAXES 

7,691


6,990


25,806


20,953











Income taxes

6,989


1,890


13,152


5,698













NET INCOME

$                    702


$          5,100


$               12,654


$        15,255











BASIC EARNINGS PER SHARE









Net Income

$                   0.14


$            1.00


$                   2.48


$            2.95











DILUTED EARNINGS PER SHARE









Net Income

$                   0.14


$            0.99


$                   2.47


$            2.95











Cash dividends declared per share

$                   0.20


$            0.20


$                   0.80


$            0.80











Weighted-average number of shares outstanding - basic

5,070


5,120


5,102


5,166











Weighted-average number of shares outstanding - diluted

5,195


5,134


5,133


5,178


 

 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS











December 31,


December 31,

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

2017


2016







ASSETS





Cash and cash equivalents

$              44,358


$              30,737

Accounts receivable, less allowances of $3,325 ($3,210 in 2016)

73,972


63,415

Inventories - net

77,886


74,484

Prepaids


8,700


12,035

Other current assets

2,214


8,436



TOTAL CURRENT ASSETS

207,130


189,107







Property, plant and equipment - net

108,598


105,104

Other intangibles - net

10,020


10,475

Goodwill


16,544


15,769

Deferred income taxes 

7,774


10,208

Other assets

9,719


10,274









TOTAL ASSETS

$            359,785


$            340,937







LIABILITIES AND SHAREHOLDERS' EQUITY










Trade accounts payable

$              25,141


$              21,978

Notes payable to banks

864


1,315

Current portion of long-term debt

1,448


1,448

Accrued compensation and amounts withheld from employees

11,461


10,040

Accrued expenses and other liabilities

23,919


20,674



TOTAL CURRENT LIABILITIES

62,833


55,455







Long-term debt, less current portion

34,598


42,943

Other noncurrent liabilities and deferred income taxes

23,817


18,996







SHAREHOLDERS' EQUITY




Shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 5,038,207 and





    5,117,753 issued and outstanding, as of December 31, 2017 and December 31, 2016

12,593


12,508


Common shares issued to rabbi trust, 289,026 and 297,281 shares at





     December 31, 2017 and December 31, 2016, respectively

(11,834)


(12,054)


Deferred Compensation Liability

11,834


12,054


Paid-in capital

29,734


24,629


Retained earnings

311,765


303,415


Treasury shares, at cost, 1,258,069 and 1,136,443 shares at 





     December 31, 2017 and December 31, 2016, respectively

(68,115)


(59,640)


Accumulated other comprehensive loss

(47,440)


(57,369)



TOTAL SHAREHOLDERS' EQUITY

238,537


223,543









TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$            359,785


$            340,937

 

 

Cision View original content with multimedia:http://www.prnewswire.com/news-releases/preformed-line-products-announces-financial-results-for-the-fourth-quarter-and-full-year-2017-300611114.html

SOURCE Preformed Line Products


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