Preformed Line Products Announces Third Quarter And First Nine Months Of 2020 Results
10/30/2020 - 08:30 AM
MAYFIELD VILLAGE, Ohio , Oct. 30, 2020 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third quarter and first nine months of 2020.
Net income for the quarter ended September 30, 2020 was $13.0 million , or $2.59 per diluted share, compared to $8.0 million , or $1.55 per diluted share, for the comparable period in 2019.
Net sales in the third quarter of 2020 increased 7% to $127.5 million , compared to $119.2 million in the third quarter of 2019.
Net income for the nine months ended September 30, 2020 was $27.1 million , or $5.43 per diluted share, compared to $17.7 million , or $3.48 per diluted share, for the comparable period in 2019.
Net sales increased 5% to $347.9 million for the first nine months of 2020 compared to $331.2 million in the first nine months of 2019.
Currency translation rates unfavorably impacted net sales by $3.7 million for the quarter and $15.0 million for the nine months ended September 30 , 2020. Currency had an unfavorable impact on net income of $.3 million for the quarter and $1.0 million for the first nine months of 2020.
Rob Ruhlman , Chairman and Chief Executive Officer, said, "The record quarterly net sales, net income and diluted earnings per share for the three months ended September 30, 2020 are a testament to the hard work and dedication of every employee at PLP. COVID-19 has created new challenges for us to deal with as a company but also new opportunities. Our number one priority continues to be the protection of our employees and their families through rigorous safety measures that we have put in place due to COVID-19. The sacrifices made by our employees this year have enabled PLP to meet customer requirements in all regions, most notably the U.S. market. One opportunity created by COVID-19 has been the increase in PLP-USA sales made possible by the significance of our uninterrupted U.S. based manufacturing facilities in Albemarle, North Carolina and Rogers , Arkansas. Maintaining and growing our U.S. manufacturing footprint enables PLP to provide excellent customer service to our U.S. and export customer base. The challenges brought on by COVID-19 may be with us for some time. While the extent to which COVID-19 will impact our future operations is unknown, we will continue to focus on the safety and well-being of our employees, their families, our customers and our valued suppliers while continuing to provide the high quality products and services our customers appreciate."
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
CONSOLIDATED BALANCE SHEETS
September 30,
December 31,
(Thousands of dollars, except share and per share data)
2020
2019
ASSETS
Cash and cash equivalents
$ 41,248
$ 38,929
Accounts receivable, less allowances of $3,536 ($3,849 in 2019)
96,712
83,517
Inventories - net
94,315
95,718
Prepaids
11,130
9,522
Other current assets
2,517
4,289
TOTAL CURRENT ASSETS
245,922
231,975
Property, plant and equipment - net
134,440
124,018
Other intangibles - net
13,926
15,116
Goodwill
27,689
27,840
Deferred income taxes
6,515
7,564
Other assets
23,549
27,058
TOTAL ASSETS
$ 452,041
$ 433,571
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable
$ 30,299
$ 28,282
Notes payable to banks
15,582
8,696
Current portion of long-term debt
7,198
3,354
Accrued compensation and amounts withheld from employees
17,764
11,817
Accrued expenses and other liabilities
27,352
28,924
TOTAL CURRENT LIABILITIES
98,195
81,073
Long-term debt, less current portion
45,220
53,722
Other noncurrent liabilities and deferred income taxes
29,048
30,208
SHAREHOLDERS' EQUITY
Shareholders' equity:
Common shares - $2 par value, 15,000,000 shares authorized, 4,914,543 and
4,992,979 issued and outstanding, as of September 30, 2020 and December 31, 2019
13,013
12,848
Common shares issued to rabbi trust, 265,508 and 267,641 shares at
September 30, 2020 and December 31, 2019, respectively
(10,940)
(10,981)
Deferred Compensation Liability
10,940
10,981
Paid-in capital
42,047
38,854
Retained earnings
377,384
353,292
Treasury shares, at cost, 1,592,027 and 1,431,235 shares at
September 30, 2020 and December 31, 2019, respectively
(87,320)
(79,106)
Accumulated other comprehensive loss
(65,549)
(57,353)
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY
279,575
268,535
Noncontrolling interest
3
33
TOTAL SHAREHOLDERS' EQUITY
279,578
268,568
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
$ 452,041
$ 433,571
PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED OPERATIONS
(In thousands, except per share data)
Three Months Ended September 30
Nine Months Ended September 30
2020
2019
2020
2019
Net sales
$ 127,463
$ 119,217
$ 347,944
$ 331,212
Cost of products sold
82,549
79,874
230,554
226,798
GROSS PROFIT
44,914
39,343
117,390
104,414
Costs and expenses
Selling
8,884
9,410
26,228
26,868
General and administrative
14,037
13,275
39,903
38,486
Research and engineering
4,541
4,240
12,950
12,809
Other operating expense - net
562
775
1,969
1,447
28,024
27,700
81,050
79,610
OPERATING INCOME
16,890
11,643
36,340
24,804
Other income (expense)
Interest income
36
211
226
613
Interest expense
(504)
(735)
(1,932)
(1,688)
Other income - net
998
138
1,775
306
530
(386)
69
(769)
INCOME BEFORE INCOME TAXES
17,420
11,257
36,409
24,035
Income taxes
4,458
3,213
9,306
6,302
NET INCOME
$ 12,962
$ 8,044
$ 27,103
$ 17,733
Less: Net income attributable to noncontrolling interests
(8)
(93)
30
(54)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS
$ 12,954
$ 7,951
$ 27,133
$ 17,679
BASIC EARNINGS PER SHARE
Net Income Attributable to Preformed Line Products Company Shareholders
$ 2.63
$ 1.58
$ 5.47
$ 3.51
DILUTED EARNINGS PER SHARE
Net Income Attributable to Preformed Line Products Company Shareholders
$ 2.59
$ 1.55
$ 5.43
$ 3.48
Cash dividends declared per share
$ 0.20
$ 0.20
$ 0.60
$ 0.60
Weighted-average number of shares outstanding - basic
4,917
5,024
4,963
5,039
Weighted-average number of shares outstanding - diluted
5,011
5,119
4,998
5,077
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SOURCE Preformed Line Products Company