EX-99.1 2 c91805exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(PREFORMED LINE PRODUCTS LOGO)
     
For immediate release
November 2, 2009
  Eric R. Graef
Preformed Line Products
(440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES FINANCIAL RESULTS FOR
THE THIRD QUARTER AND FIRST NINE MONTHS OF 2009
Mayfield Village, Ohio, November 2, 2009 — Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2009.
Net income for the quarter ended September 30, 2009 was $6,320,000, or $1.19 per diluted share, compared to $6,423,000, or $1.22 per diluted share, for the comparable period in 2008. Currency exchange rates had a negative impact on net income of $359,000.
Net sales in the third quarter of 2009 were $69,132,000, a decrease of 7% from sales of $73,952,000 in the third quarter of 2008. Net sales decreased only 1% excluding the negative impact of currency exchange rates of $3,965,000.
Net income for the nine months ended September 30, 2009 decreased 15% to $12,626,000, or $2.38 per diluted share, compared to $14,862,000, or $2.78 per diluted share for the comparable period in 2008. Currency exchange rates negatively impacted net income for the first nine months of 2009 by $1,205,000. Net income in 2008 included a net gain of $461,000, or $.09 per diluted share, on the sale of Superior Modular Products Company (“SMP”), a former wholly owned domestic subsidiary.
Net sales decreased 10% to $187,394,000 for the first nine months of 2009 compared to $209,179,000 in the first nine months of 2008. Net sales decreased 2% for the first nine months excluding the negative impact of currency exchanges rates of $18,639,000.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “I believe our results are admirable considering the state of the world economy during this past year. Excluding the impact of currency when foreign statements are translated into U.S. dollars, net income was up 4% for the quarter. When the currency impact and discontinued operations are excluded from the first nine months, net income was down only 2%.”
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PAGE 2 / PLP ANNOUNCES THIRD 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 September 30,     Nine month periods ended September 30,  
Thousands, except per share data   2009     2008     2009     2008  
 
                               
Net sales
  $ 69,132     $ 73,952     $ 187,394     $ 209,179  
Cost of products sold
    44,518       48,489       124,352       141,034  
 
                       
GROSS PROFIT
    24,614       25,463       63,042       68,145  
 
                               
Costs and expenses
                               
Selling
    5,750       6,119       16,640       17,879  
General and administrative
    8,609       7,506       23,032       22,553  
Research and engineering
    2,411       2,218       6,631       6,545  
Other operating (income) expenses — net
    (337 )     462       (359 )     605  
 
                       
 
    16,433       16,305       45,944       47,582  
 
                       
 
                               
OPERATING INCOME
    8,181       9,158       17,098       20,563  
 
                               
Other income (expense)
                               
Interest income
    95       225       307       655  
Interest expense
    (153 )     (138 )     (369 )     (415 )
Other income (expense)
    326       176       983       196  
 
                       
 
    268       263       921       436  
 
                       
 
                               
INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS
    8,449       9,421       18,019       20,999  
 
                               
Income taxes
    2,190       2,807       5,501       6,604  
 
                       
 
                               
INCOME FROM CONTINUING OPERATIONS, NET OF TAX
    6,259       6,614       12,518       14,395  
 
                               
Income from discontinued operations, net of tax
          (34 )           735  
 
                               
NET INCOME
    6,259       6,580       12,518       15,130  
 
                               
Less net income (loss) attributable to noncontrolling interests, net of tax
    (61 )     157       (108 )     268  
 
                       
 
                               
NET INCOME ATTRIBUTABLE TO PLPC
  $ 6,320     $ 6,423     $ 12,626     $ 14,862  
 
                       
 
                               
BASIC EARNINGS PER SHARE
                               
Income per share from continuing operations attributable to PLPC common shareholders
  $ 1.21     $ 1.24     $ 2.41     $ 2.67  
 
                       
Discontinued operations attributable to PLPC common shareholders
  $     $ (0.01 )   $     $ 0.14  
 
                       
Net income attributable to PLPC common shareholders
  $ 1.21     $ 1.23     $ 2.41     $ 2.81  
 
                       
DILUTED EARNINGS PER SHARE
                               
Income per share from continuing operations attributable to PLPC common shareholders
  $ 1.19     $ 1.23     $ 2.38     $ 2.64  
 
                       
Discontinued operations attributable to PLPC common shareholders
  $     $ (0.01 )   $     $ 0.14  
 
                       
Net income attributable to PLPC common shareholders
  $ 1.19     $ 1.22     $ 2.38     $ 2.78  
 
                       
 
                               
Cash dividends declared per share
  $ 0.20     $ 0.20     $ 0.60     $ 0.60  
 
                       
 
                               
Weighted-average number of shares outstanding — basic
    5,235       5,218       5,231       5,298  
 
                       
 
                               
Weighted-average number of shares outstanding — diluted
    5,316       5,269       5,309       5,345  
 
                       
 
                               
Amount attributable to PLPC common shareholders:
                               
Income from continuing operations, net of tax
  $ 6,320     $ 6,457     $ 12,626     $ 14,127  
Discontinued operations, net of tax
          (34 )           735  
 
                       
Net Income
  $ 6,320     $ 6,423     $ 12,626     $ 14,862  
 
                       

 

 


 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                 
    September 30,     December 31,  
Thousands of dollars, except share and per share data   2009     2008  
 
ASSETS
               
Cash and cash equivalents
  $ 35,520     $ 19,869  
Accounts receivable, less allowances of $920 ($972 in 2008)
    45,937       36,899  
Inventories — net
    48,439       48,412  
Deferred income taxes
    2,184       2,786  
Prepaids and other
    5,242       4,704  
 
           
TOTAL CURRENT ASSETS
    137,322       112,670  
 
               
Property and equipment — net
    61,124       55,940  
Patents and other intangibles — net
    3,505       3,858  
Goodwill
    6,436       5,520  
Deferred income taxes
    5,885       6,943  
Other assets
    7,072       5,944  
 
           
 
TOTAL ASSETS
  $ 221,344     $ 190,875  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Notes payable to banks
  $ 3,301     $ 3,101  
Current portion of long-term debt
    967       494  
Trade accounts payable
    17,188       14,632  
Accrued compensation and amounts withheld from employees
    10,221       6,606  
Accrued expenses and other liabilities
    13,222       10,415  
 
           
TOTAL CURRENT LIABILITIES
    44,899       35,248  
 
               
Long-term debt, less current portion
    3,441       2,653  
Other noncurrent liabilities and deferred income taxes
    14,206       15,973  
 
               
SHAREHOLDERS’ EQUITY
               
PLPC shareholders’ equity:
               
Common shares — $2 par value, 15,000,000 shares authorized, 5,234,039 and 5,223,830 issued and outstanding, net of 554,059 and 551,059 treasury shares at par, respectively
    10,468       10,448  
Paid in capital
    5,369       3,704  
Retained earnings
    156,086       146,624  
Accumulated other comprehensive loss
    (13,549 )     (24,511 )
 
           
TOTAL PLPC SHAREHOLDERS’ EQUITY
    158,374       136,265  
 
           
Noncontrolling interest
    424       736  
 
           
TOTAL SHAREHOLDERS’ EQUITY
    158,798       137,001  
 
           
 
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 221,344     $ 190,875