Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2018
MAYFIELD VILLAGE, Ohio, May 4, 2018 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter ended March 31, 2018.
Net sales for the first quarter of 2018 were $98.1 million, an increase of 16%, compared to $84.6 million in the first quarter of 2017.
The Company posted net income for the first quarter of 2018 of $5.5 million, or $1.09 per share, compared to $1.5 million, or $.30 per share, in the first quarter of 2017.
Currency translation rates had a favorable impact on 2018 first quarter net sales of $2.7 million, with only a $.1 million favorable effect on net income. Additionally, gains on foreign currency transactions had a favorable impact of $.1 million on pre-tax income for the first quarter of 2018 compared to a $.2 million favorable impact for the same period in 2017.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "The first quarter of 2018 marked our fourth consecutive quarter of double-digit sales growth. Leveraging our global manufacturing infrastructure allowed us to expand our profit margins during this period. Raw material cost increases, competitive pricing and an uncertain tariff picture point to a challenging future. We believe our goal of consistent, profitable growth is best served through our ongoing concentration on high-quality products and focused customer service."
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 March 31 | ||||||
2018 | 2017 | ||||||
Net sales | $ 98,139 | $ 84,569 | |||||
Cost of products sold | 66,621 | 59,904 | |||||
GROSS PROFIT | 31,518 | 24,665 | |||||
Costs and expenses | |||||||
Selling | 8,861 | 8,284 | |||||
General and administrative | 10,916 | 10,329 | |||||
Research and engineering | 3,661 | 3,690 | |||||
Other operating expense - net | 335 | 104 | |||||
23,773 | 22,407 | ||||||
OPERATING INCOME | 7,745 | 2,258 | |||||
Other income (expense) | |||||||
Interest income | 95 | 104 | |||||
Interest expense | (280) | (299) | |||||
Other income - net | 69 | 55 | |||||
(116) | (140) | ||||||
INCOME BEFORE INCOME TAXES | 7,629 | 2,118 | |||||
Income taxes | 2,101 | 600 | |||||
NET INCOME | $ 5,528 | $ 1,518 | |||||
BASIC EARNINGS PER SHARE | |||||||
Net Income | $ 1.10 | $ 0.30 | |||||
DILUTED EARNINGS PER SHARE | |||||||
Net Income | $ 1.09 | $ 0.30 | |||||
Cash dividends declared per share | $ 0.20 | $ 0.20 | |||||
Weighted-average number of shares outstanding - basic | 5,046 | 5,118 | |||||
Weighted-average number of shares outstanding - diluted | 5,064 | 5,130 | |||||
PREFORMED LINE PRODUCTS COMPANY | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
March 31, | December 31, | |||||||||
(Thousands of dollars, except share and per share data) | 2018 | 2017 | ||||||||
ASSETS | ||||||||||
Cash and cash equivalents | $ 45,488 | $ 44,358 | ||||||||
Accounts receivable, less allowances of $3,302 ($3,325 in 2017) | 77,421 | 73,972 | ||||||||
Inventories - net | 83,342 | 77,886 | ||||||||
Prepaids | 8,932 | 8,700 | ||||||||
Other current assets | 2,592 | 2,214 | ||||||||
TOTAL CURRENT ASSETS | 217,775 | 207,130 | ||||||||
Property, plant and equipment - net | 109,836 | 108,598 | ||||||||
Other intangibles - net | 9,818 | 10,020 | ||||||||
Goodwill | 16,622 | 16,544 | ||||||||
Deferred income taxes | 7,908 | 7,774 | ||||||||
Other assets | 14,002 | 9,719 | ||||||||
TOTAL ASSETS | $ 375,961 | $ 359,785 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||
Trade accounts payable | $ 27,653 | $ 25,141 | ||||||||
Notes payable to banks | 1,835 | 864 | ||||||||
Current portion of long-term debt | 1,448 | 1,448 | ||||||||
Accrued compensation and amounts withheld from employees | 11,653 | 11,461 | ||||||||
Accrued expenses and other liabilities | 19,003 | 23,919 | ||||||||
TOTAL CURRENT LIABILITIES | 61,592 | 62,833 | ||||||||
Long-term debt, less current portion | 43,793 | 34,598 | ||||||||
Other noncurrent liabilities and deferred income taxes | 23,555 | 23,817 | ||||||||
SHAREHOLDERS' EQUITY | ||||||||||
Shareholders' equity: | ||||||||||
Common shares - $2 par value, 15,000,000 shares authorized, 5,048,758 and | ||||||||||
5,038,207 issued and outstanding, as of March 31, 2018 and December 31, 2017 | 12,635 | 12,593 | ||||||||
Common shares issued to rabbi trust, 289,138 and 289,026 shares at | ||||||||||
March 31, 2018 and December 31, 2017, respectively | (11,849) | (11,834) | ||||||||
Deferred Compensation Liability | 11,849 | 11,834 | ||||||||
Paid-in capital | 30,576 | 29,734 | ||||||||
Retained earnings | 316,275 | 311,765 | ||||||||
Treasury shares, at cost, 1,268,976 and 1,258,069 shares at | ||||||||||
March 31, 2018 and December 31, 2017, respectively | (68,948) | (68,115) | ||||||||
Accumulated other comprehensive loss | (43,517) | (47,440) | ||||||||
TOTAL SHAREHOLDERS' EQUITY | 247,021 | 238,537 | ||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 375,961 | $ 359,785 | ||||||||
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SOURCE Preformed Line Products
