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Preformed Line Products Announces Third Quarter And First Nine Months Of 2018 Results
[November 08, 2018]

Preformed Line Products Announces Third Quarter And First Nine Months Of 2018 Results


MAYFIELD VILLAGE, Ohio, Nov. 8, 2018 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third quarter and first nine months of 2018.

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

Net income for the quarter ended September 30, 2018 was $9.1 million, or $1.76 per diluted share, compared to $6.3 million, or $1.23 per diluted share, for the comparable period in 2017.

Net sales in the third quarter of 2018 increased 9% to $108.4 million compared to $99.2 million in the third quarter of 2017.

Net income for the nine months ended September 30, 2018 was $21.3 million, or $4.19 per diluted share, compared to $12.0 million, or $2.33 per diluted share, for the comparable period in 2017.

Net sales increased 12% to $315.5 million for the first nine months of 2018 compared to $281.3 million in the first nine months of 2017.

The Company's results for the third quarter benefitted from an adjustment to its 2017 estimated tax expense that it previously recorded associated with the U.S. Tax Cuts and Jobs Act enacted last year.  The Company also recorded a one-time tax savings due to a pension contribution made during the third quarter.  Both of these events will contribute to a lower effective tax rate going forward, thereby reducing the Company's tax liability for the current year.

Currency translation rates negatively impacted net sales by $4.3 million for the quarter ended September 30, 2018 and $1.2 million for the first nine months of 2018.  Currency had a minimal positive impact on net income of $.3 million for each of the periods.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "An all-time record for domestic operation sales in a quarter was further supported by double-digit sales growth in our international operations for the third consecutive quarter.  We continue to perform consistently as changing economic conditions, including an uncertain tariff environment, remain challenging.  We believe our commitment to continuous product and process improvement is key to our ongoing success."

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 2017 Annual Report on Form 10-K filed with the SEC on March 9, 2018 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 September 30


Nine Months Ended September 30




2018


2017


2018


2017





















Net sales

$             108,413


$        99,239


$             315,467


$      281,320

Cost of products sold

74,922


65,704


215,255


193,446



GROSS PROFIT

33,491


33,535


100,212


87,874











Costs and expenses









Selling

8,965


8,957


27,297


25,867


General and administrative

11,655


11,042


33,859


32,143


Research and engineering

3,706


3,520


11,013


10,821


Other operating expense - net

1,150


206


2,950


681




25,476


23,725


75,119


69,512













OPERATING INCOME 

8,015


9,810


25,093


18,362











Other income (expense)









Interest income

111


62


340


325


Interest expense

(364)


(255)


(992)


(831)


Other income - net

94


122


267


259




(159)


(71)


(385)


(247)













INCOME BEFORE INCOME TAXES 

7,856


9,739


24,708


18,115











Income taxes

(1,198)


3,461


3,390


6,163













NET INCOME

$                 9,054


$          6,278


$               21,318


$        11,952











BASIC EARNINGS PER SHARE









Net Income

$                   1.80


$            1.23


$                   4.23


$            2.34











DILUTED EARNINGS PER SHARE









Net Income

$                   1.76


$            1.23


$                   4.19


$            2.33











Cash dividends declared per share

$                   0.20


$            0.20


$                   0.60


$            0.60











Weighted-average number of shares outstanding - basic

5,025


5,104


5,038


5,113











Weighted-average number of shares outstanding - diluted

5,138


5,120


5,088


5,129


 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS











September 30,


December 31,

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

2018


2017







ASSETS





Cash and cash equivalents

$              34,032


$              44,358

Accounts receivable, less allowances of $3,289 ($3,325 in 2017)

87,034


73,972

Inventories - net

82,402


77,886

Prepaids


8,700


8,700

Other current assets

3,742


2,214



TOTAL CURRENT ASSETS

215,910


207,130







Property, plant and equipment - net

104,608


108,598

Other intangibles - net

8,857


10,020

Goodwill


15,882


16,544

Deferred income taxes 

7,830


7,774

Other assets

10,882


9,719









TOTAL ASSETS

$            363,969


$            359,785







LIABILITIES AND SHAREHOLDERS' EQUITY










Trade accounts payable

$              29,749


$              25,141

Notes payable to banks

3,795


864

Current portion of long-term debt

1,448


1,448

Accrued compensation and amounts withheld from employees

14,347


11,461

Accrued expenses and other liabilities

21,064


23,919



TOTAL CURRENT LIABILITIES

70,403


62,833







Long-term debt, less current portion

32,681


34,598

Other noncurrent liabilities and deferred income taxes

14,480


23,817







SHAREHOLDERS' EQUITY




Shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 5,012,109 and





    5,038,207 issued and outstanding, at September 30, 2018 and December 31, 2017

12,643


12,593


Common shares issued to rabbi trust, 269,630 and 289,026 shares at





     September 30, 2018 and December 31, 2017, respectively

(11,008)


(11,834)


Deferred Compensation Liability

11,008


11,834


Paid-in capital

33,284


29,734


Retained earnings

329,959


311,765


Treasury shares, at cost, 1,309,617 and 1,258,069 shares at 





     September 30, 2018 and December 31, 2017, respectively

(72,242)


(68,115)


Accumulated other comprehensive loss

(57,239)


(47,440)



TOTAL SHAREHOLDERS' EQUITY

246,405


238,537









TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$            363,969


$            359,785

 

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/preformed-line-products-announces-third-quarter-and-first-nine-months-of-2018-results-300746101.html

SOURCE Preformed Line Products Company


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