EX-99.1 2 c89025exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(PREFORMED LINE PRODUCTS LOGO)
     
For immediate release
August 7, 2009
  Eric R. Graef
Preformed Line Products
(440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER
AND FIRST HALF 2009 RESULTS
Mayfield Village, Ohio, August 7, 2009 — Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the second quarter and the first six months of 2009.
Net income for the quarter ended June 30, 2009 was $3,584,000, or $.68 per diluted share, compared to $5,489,000 or $1.03 per diluted share, for the comparable period in 2008. Net income in the second quarter of 2008 included a net gain of $495,000, or $.09 per diluted share, on the sale of Superior Modular Products Company, a wholly owned domestic subsidiary.
Net sales in the second quarter of 2009 were $59,568,000, a decrease of 21% from sales of $75,362,000 in the second quarter of 2008.
Net income for the six months ended June 30, 2009 decreased 25% to $6,306,000, or $1.19 per diluted share, compared to $8,439,000, or $1.57 per diluted share for the comparable period in 2008. Net sales decreased 13% to $118,262,000 for the first six months of 2009 compared to $135,227,000 in the first six months of 2008.
Currency exchange rates negatively impacted sales by $7,014,000 for the quarter and $15,690,000 for the first six months of 2009, while the negative impact on net income was $339,000 for the quarter and $848,000 for the first six months of 2009.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “Although our results for the quarter were disappointing, they were not unexpected based upon the state of the world economy. Our comparisons are to a very strong second quarter in 2008 and the same will be the case for third quarter. We adjusted our cost structure last year while our operations were strong. Currently we are leveraging our costs over a lower sales volume. We expect that sales will improve when the economy improves and we get the anticipated boost from the stimulus package. We feel that we are correctly positioned for the future growth.”
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PAGE 2 / PLP ANNOUNCES SECOND QUARTER RESULTS
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 three domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New Mexico, and Albemarle, North Carolina. The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Mexico, New Zealand, Poland, 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, increases in raw material prices, the Company’s ability to identify, complete and integrate acquisitions for profitable growth, and other factors described under the headings “Risk Factors” and “Forward-Looking Statements” in the Company’s 2008 Annual Report on Form 10-K filed with the SEC on March 13, 2009. 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
(UNAUDITED)
                                 
    Three month periods ended June 30,     Six month periods ended June 30,  
Thousands, except per share data   2009     2008     2009     2008  
 
                               
Net sales
  $ 59,568     $ 75,362     $ 118,262     $ 135,227  
Cost of products sold
    39,718       51,685       79,834       92,545  
 
                       
GROSS PROFIT
    19,850       23,677       38,428       42,682  
 
                               
Costs and expenses
                               
Selling
    5,526       6,186       10,890       11,760  
General and administrative
    7,371       7,691       14,423       15,047  
Research and engineering
    2,159       2,338       4,220       4,327  
Other operating (income) expenses — net
    (311 )     233       (22 )     143  
 
                       
 
    14,745       16,448       29,511       31,277  
 
                               
 
                       
OPERATING INCOME
    5,105       7,229       8,917       11,405  
 
                               
Other income (expense)
                               
Interest income
    87       216       212       430  
Interest expense
    (107 )     (138 )     (216 )     (277 )
Other income (expense)
    178       22       657       20  
 
                       
 
    158       100       653       173  
 
                       
 
                               
INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
    5,263       7,329       9,570       11,578  
 
                               
Income taxes
    1,721       2,382       3,311       3,797  
 
                       
 
                               
INCOME FROM CONTINUING OPERATIONS, NET OF TAX
    3,542       4,947       6,259       7,781  
 
                               
Income from discontinued operations, net of tax
          620             769  
 
                               
NET INCOME
    3,542       5,567       6,259       8,550  
 
                               
Less net income (loss) attributable to noncontrolling interests, net of tax
    (42 )     78       (47 )     111  
 
                               
 
                       
NET INCOME ATTRIBUTABLE TO PLPC
  $ 3,584     $ 5,489     $ 6,306     $ 8,439  
 
                       
 
                               
BASIC EARNINGS PER SHARE
                               
Income per share from continuing operations attributable to PLPC common shareholders
  $ 0.69     $ 0.92     $ 1.21     $ 1.44  
 
                       
Discontinued operations attributable to PLPC common shareholders
  $     $ 0.12     $     $ 0.14  
 
                       
Net income attributable to PLPC common shareholders
  $ 0.69     $ 1.04     $ 1.21     $ 1.58  
 
                       
DILUTED EARNINGS PER SHARE
                               
Income per share from continuing operations attributable to PLPC common shareholders
  $ 0.68     $ 0.91     $ 1.19     $ 1.43  
 
                       
Discontinued operations attributable to PLPC common shareholders
  $     $ 0.12     $     $ 0.14  
 
                       
Net income attributable to PLPC common shareholders
  $ 0.68     $ 1.03     $ 1.19     $ 1.57  
 
                       
 
                               
Cash dividends declared per share
  $ 0.20     $ 0.20     $ 0.40     $ 0.40  
 
                       
 
                               
Weighted-average number of shares outstanding — basic
    5,231       5,296       5,228       5,339  
 
                       
 
                               
Weighted-average number of shares outstanding — diluted
    5,311       5,345       5,306       5,387  
 
                       
 
                               
Amount attributable to PLPC common shareholders:
                               
Income from continuing operations, net of tax
  $ 3,584     $ 4,869     $ 6,306     $ 7,670  
Discontinued operations, net of tax
          620             769  
 
                       
Net Income
  $ 3,584     $ 5,489     $ 6,306     $ 8,439  
 
                       

 

 


 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                 
    June 30,     December 31,  
Thousands of dollars, except share and per share data   2009     2008  
 
ASSETS
               
Cash and cash equivalents
  $ 27,701     $ 19,869  
Accounts receivable, less allowances of $974 ($972 in 2008)
    41,285       36,899  
Inventories — net
    49,149       48,412  
Deferred income taxes
    3,225       2,786  
Prepaids and other
    4,982       4,704  
 
           
TOTAL CURRENT ASSETS
    126,342       112,670  
Property and equipment — net
    58,769       55,940  
Patents and other intangibles — net
    3,538       3,858  
Goodwill
    6,151       5,520  
Deferred income taxes
    6,513       6,943  
Other assets
    6,788       5,944  
 
           
 
               
TOTAL ASSETS
  $ 208,101     $ 190,875  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
Notes payable to banks
  $ 4,025     $ 3,101  
Current portion of long-term debt
    894       494  
Trade accounts payable
    16,037       14,632  
Accrued compensation and amounts withheld from employees
    8,925       6,606  
Accrued expenses and other liabilities
    11,206       10,415  
 
           
TOTAL CURRENT LIABILITIES
    41,087       35,248  
 
               
Long-term debt, less current portion
    2,930       2,653  
Other noncurrent liabilities and deferred income taxes
    15,996       15,973  
 
               
SHAREHOLDERS’ EQUITY
               
PLPC shareholders’ equity:
               
Common shares — $2 par value, 15,000,000 shares authorized, 5,236,839 and 5,223,830 issued and outstanding, net of 551,059 treasury shares at par, respectively
    10,474       10,448  
Paid in capital
    4,610       3,704  
Retained earnings
    150,938       146,624  
Accumulated other comprehensive loss
    (18,421 )     (24,511 )
 
           
TOTAL PLPC SHAREHOLDERS’ EQUITY
    147,601       136,265  
 
           
Noncontrolling interest
    487       736  
 
           
TOTAL SHAREHOLDERS’ EQUITY
    148,088       137,001  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 208,101     $ 190,875