PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER AND FIRST HALF 2022 FINANCIAL RESULTS
08/04/2022 - 04:30 PM
CLEVELAND , Aug. 4, 2022 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its second quarter ended June 30, 2022 .
Q2 2022 Highlights:
Record quarterly net sales and profit Net sales increased 23% from comparable 2021 period Diluted EPS of $2.77 , an increase of 54% from comparable 2021 period Net sales for the second quarter of 2022 were $163.5 million , an increase of 23% , compared to $133.0 million in the second quarter of 2021. Currency translation rates had an unfavorable impact on 2022 second quarter net sales of $5.5 million , or 3.4% .
The Company posted net income for the second quarter of 2022 of $13.7 million , or $2.77 per diluted share, compared to $8.9 million , or $1.80 per diluted share, in the second quarter of 2021. Second quarter 2022 net income benefited from the significant increase in net sales while leveraging fixed costs and gross margin gains resulting from the previously announced price increases which are beginning to offset the impact of inflation on commodity prices and freight. Currency translation rates had a favorable effect on net income of $0.1 million .
Net sales increased 20% to $301.7 million for the first six months of 2022 compared to $250.6 million for the first six months of 2021. Currency translation rates had an unfavorable impact on net sales of $8.0 million for the six months ended June 30, 2022 .
Net income for the six months ended June 30, 2022 was $26.0 million , or $5.25 per diluted share, compared to $16.0 million or $3.25 per diluted share, for the comparable period in 2021. YTD June 30, 2022 net income benefited from the 20% YTD increase in net sales with related fixed cost leverage as well as the realization of price increases which are beginning to offset the impact of inflation on commodities and freight. Also benefiting the YTD net income was the $4.4 million non-taxable gain from life insurance benefits. Currency translation rates had an unfavorable effect on net income of $0.1 million .
Rob Ruhlman , Chairman and Chief Executive Officer, said, "We continue to record impressive gains in both net sales and earnings, with the second quarter of 2022 being a new record for both. Excluding the impact of currency translation, all regions reported an increase in net sales versus the second quarter of 2021 and on a YTD basis all regions except for Asia-Pacific reported increased net sales. Our sales growth was made possible by strong volume growth in both the energy and communications product families, incremental sales from our newest acquisitions and selling price adjustments required to offset the significant levels of inflation experienced last year and so far this year. We continuously monitor the impact of inflationary increases on our raw material inputs and freight expense. Additional selling price adjustments may be required to offset further inflationary increases. Customer satisfaction remains our primary goal – accomplished by providing high-quality products and services that meet or exceed expectations."
FORWARD-LOOKING STATEMENTS
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, the impact of legal or regulatory matters or global economic conditions (such as the impact of inflation, social unrest, acts of war, military conflict (including the ongoing conflict between Russia and Ukraine ), international hostilities, terrorism and changes in diplomatic and trade relationships) on profitability and future growth opportunities; the Company's ability to identify, complete, obtain funding for and integrate acquisitions for profitable growth; 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 2021 Annual Report on Form 10-K filed with the SEC on March 4, 2022 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.
ABOUT PLP
PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in over 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
June 30,
December 31,
(Thousands of dollars, except share and per share data)
2022
2021
ASSETS
Cash, cash equivalents and restricted cash
$ 30,103
$ 36,406
Accounts receivable, less allowances of $4,931 ($3,744 in 2021)
123,122
98,203
Inventories, net
127,408
114,507
Prepaid expenses
20,855
19,778
Other current assets
5,561
3,217
TOTAL CURRENT ASSETS
307,049
272,111
Property, plant and equipment, net
157,444
149,774
Goodwill
34,792
28,194
Other intangible assets, net
15,104
12,039
Deferred income taxes
5,551
3,839
Other assets
17,116
23,061
TOTAL ASSETS
$ 537,056
$ 489,018
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable
$ 49,217
$ 42,376
Notes payable to banks
16,856
16,423
Current portion of long-term debt
3,217
3,116
Accrued compensation and other benefits
24,313
21,703
Accrued expenses and other liabilities
26,067
21,917
TOTAL CURRENT LIABILITIES
119,670
105,535
Long-term debt, less current portion
57,502
40,048
Other noncurrent liabilities and deferred income taxes
27,197
27,335
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares - $2 par value, 15,000,000 shares authorized, 4,940,578 and
4,907,143 issued and outstanding, as of June 30, 2022 and December 31, 2021, respectively
13,303
13,185
Common shares issued to rabbi trust, 244,969 and 243,138 shares at
June 30, 2022 and December 31, 2021, respectively
(10,231)
(10,102)
Deferred compensation liability
10,231
10,102
Paid-in capital
49,918
47,814
Retained earnings
434,718
410,673
Treasury shares, at cost, 1,714,822 and 1,685,387 shares at
June 30, 2022 and December 31, 2021, respectively
(95,631)
(93,836)
Accumulated other comprehensive loss
(69,629)
(61,719)
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY
332,679
316,117
Noncontrolling interest
8
(17)
TOTAL SHAREHOLDERS' EQUITY
332,687
316,100
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 537,056
$ 489,018
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED OPERATIONS
(Thousands of dollars, except earnings per share data)
Three Months Ended June 30
Six Months Ended June 30
2022
2021
2022
2021
Net sales
$ 163,471
$ 133,038
$ 301,694
$ 250,591
Cost of products sold
110,765
89,999
207,037
167,360
GROSS PROFIT
52,706
43,039
94,657
83,231
Costs and expenses
Selling
11,668
10,099
22,328
19,701
General and administrative
16,948
13,770
33,256
28,164
Research and engineering
5,363
4,763
10,137
9,374
Other operating expense, net
778
1,669
1,536
2,486
34,757
30,301
67,257
59,725
OPERATING INCOME
17,949
12,738
27,400
23,506
Other income (expense)
Interest income
104
26
216
47
Interest expense
(784)
(457)
(1,310)
(920)
Other income, net
495
270
5,599
498
(185)
(161)
4,505
(375)
INCOME BEFORE INCOME TAXES
17,764
12,577
31,905
23,131
Income tax expense
4,043
3,686
5,883
7,063
NET INCOME
$ 13,721
$ 8,891
$ 26,022
$ 16,068
Net income attributable to noncontrolling interests
(9)
(22)
(25)
(20)
NET INCOME ATTRIBUTABLE TO PREFORMED
LINE PRODUCTS COMPANY SHAREHOLDERS
$ 13,712
$ 8,869
$ 25,997
$ 16,048
AVERAGE NUMBER OF SHARES OF COMMON STOCK
OUTSTANDING:
Basic
4,940
4,912
4,934
4,914
Diluted
4,955
4,930
4,954
4,935
EARNINGS PER SHARE OF COMMON STOCK
ATTRIBUTABLE TO PREFORMED LINE PRODUCTS
COMPANY SHAREHOLDERS:
Basic
$ 2.78
$ 1.81
$ 5.27
$ 3.27
Diluted
$ 2.77
$ 1.80
$ 5.25
$ 3.25
Cash dividends declared per share
$ 0.20
$ 0.20
$ 0.40
$ 0.40
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SOURCE Preformed Line Products
Preformed Line Products Co.
PLPC Rankings
#263 Ranked by Stock Gains
PLPC Stock Data
Industry
Optical Instrument and Lens Manufacturing
Sector
Manufacturing
Tags
Producer Manufacturing, Building Products, Manufacturing, Optical Instrument and Lens Manufacturing
Country
US
City
Cleveland
About PLPC
preformed line products (plp) is a worldwide designer, manufacturer and supplier of high quality cable anchoring and control hardware and systems, fiber optic and copper splice closures, and high-speed cross-connect devices. our core markets are divided into four distinct categories: communications, energy, special industries and solar. our customer base includes telecommunications network operators, cable television and broadband service providers, power utilities, corporations and enterprise networks, government agencies and educational institutions. we also serve several specialized areas under our special industries and solar market categories. with groundbreaking and innovative solutions like our line of coyote® fiber optic products, and our thermolign® family of power transmission products, plp has consistently pioneered modern advances in communications and power utility networks since 1947. we deliver added value to our customers through our expertise and our unparalleled custo