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Preformed Line Products Announces Results For The Fourth Quarter And Full Year 2020
[March 05, 2021]

Preformed Line Products Announces Results For The Fourth Quarter And Full Year 2020


MAYFIELD VILLAGE, Ohio, March 5, 2021 /PRNewswire/ -- Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for the fourth quarter and the full year 2020.

Net sales in the fourth quarter of 2020 were $118.5 million compared to $113.6 million in the fourth quarter of 2019.  Net sales for 2020 were $466.4 million compared to $444.9 million in 2019.  This represents an 4% increase for the fourth quarter and a 5% increase for the year.

Net income for the quarter ended December 31, 2020 was $2.7 million, or $0.53 per diluted share, compared to $5.6 million, or $1.09 per diluted share, for the comparable period in 2019. Net income for the year ended December 31, 2020 was $29.8 million, or $5.98 per diluted share, compared to $23.3 million, or $4.58 per diluted share in 2019. 

Rob Ruhlman, Chairman and Chief Executive Officer, said, "The record net sales and earnings per share in 2020, a very unique year, are the result of the commitment and dedication of our global team over several years.  This represents back-to-back record annual net sales and the third consecutive year of record domestic net sales.  While dealing with the added challenges of COVID-19 protocols, our global operations continued to meet growing customer demand.  Net sales increased in all but the Asia-Pacific segment which was more negatively impacted by the COVID-19 pandemic.  Most notably, our PLP-USA operations achieved annual net sales growth of nearly 13%, thanks to the strength and significance of our U.S. based manufacturing facilities which remained fully operational throughout the pandemic.  We anticipate COVID-19 will continue to challenge our business as well as the global economy well into 2021. While disruptive, the pandemic created challenges that were met by our teams which ultimately made us stronger as a company.  As always, we are fully committed to providing our customers with the high-quality products they require, while staying focused on the safety and well-being of our employees, customers, vendors and their families."

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

STATEMENTS OF CONSOLIDATED OPERATIONS












(In thousands, except per share data)

Three Months Ended December 31


Twelve Months Ended December 31




2020


2019


2020


2019





















Net sales

$ 118,506


$ 113,649


$ 466,449


$ 444,861

Cost of products sold

81,883


77,469


312,436


304,266



GROSS PROFIT

36,623


36,180


154,013


140,595











Costs and expenses









Selling

9,408


9,741


35,637


36,609


General and administrative

16,432


13,320


56,335


51,806


Research and engineering

4,676


4,378


17,625


17,187


Other operating expense - net

2,239


919


4,209


2,366




32,755


28,358


113,806


107,968













OPERATING INCOME 

3,868


7,822


40,207


32,627











Other income (expense)









Interest income

33


170


259


783


Interest expense

(464)


(529)


(2,396)


(2,217)


Other income - net

726


(40)


2,501


265




295


(399)


364


(1,169)













INCOME BEFORE INCOME TAXES 

4,163


7,423


40,571


31,458











Income taxes

1,505


1,821


10,810


8,122













NET INCOME

$    2,658


$    5,602


$  29,761


$  23,336

Less: Net income attributable to noncontrolling interests

(11)


(22)


(42)


33













NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS

$    2,669


$    5,624


$  29,803


$  23,303











EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:










Basic

$      0.54


$      1.12


$      6.05


$      4.63



Diluted

$      0.53


$      1.09


$      5.98


$      4.58











Cash dividends declared per share

$      0.20


$      0.20


$      0.80


$      0.80











Weighted-average number of shares outstanding - basic

4,899


5,005


4,923


5,031











Weighted-average number of shares outstanding - diluted

5,027


5,147


4,984


5,087


 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS











December 31,


December 31,

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

2020


2019







ASSETS





Cash and cash equivalents

$        45,175


$        38,929

Accounts receivable, less allowances of $3,464 ($3,849 in 2019)

92,686


83,517

Inventories - net

97,537


95,718

Prepaids


17,660


9,522

Other current assets

3,256


4,289



TOTAL CURRENT ASSETS

256,314


231,975







Property, plant and equipment - net

125,965


124,018

Other intangibles - net

14,443


15,116

Goodwill


29,508


27,840

Deferred income taxes 

10,863


7,564

Other assets

23,994


27,058









TOTAL ASSETS

$      461,087


$      433,571







LIABILITIES AND SHAREHOLDERS' EQUITY










Trade accounts payable

$        31,646


$        28,282

Notes payable to banks

17,428


8,696

Current portion of long-term debt

5,216


3,354

Accrued compensation and amounts withheld from employees

14,736


11,817

Accrued expenses and other liabilities

34,748


28,924



TOTAL CURRENT LIABILITIES

103,774


81,073







Long-term debt, less current portion

33,333


53,722

Other noncurrent liabilities and deferred income taxes

31,911


30,208







SHAREHOLDERS' EQUITY




Shareholders' equity:





Common shares - $2 par value, 15,000,000 shares authorized, 4,902,233 and 4,992,979 issued and outstanding, as of December 31, 2020 and December 31, 2019, respectively

13,028


12,848


Common shares issued to rabbi trust, 265,508 and 267,641 shares at December 31, 2020 and December 31, 2019, respectively

(10,940)


(10,981)


Deferred Compensation Liability

10,940


10,981


Paid-in capital

43,134


38,854


Retained earnings

379,035


353,292


Treasury shares, at cost, 1,611,927 and 1,431,235 shares at December 31, 2020 and December 31, 2019, respectively

(88,568)


(79,106)


Accumulated other comprehensive loss

(54,551)


(57,353)



TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY

292,078


268,535


Noncontrolling interest

(9)


33



TOTAL SHAREHOLDERS' EQUITY

292,069


268,568



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$      461,087


$      433,571

 

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SOURCE Preformed Line Products Company


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