EX-99.1 2 l25778aexv99w1.htm EX-99.1 EX-99.1
 

Exhibit 99.1
     
For immediate release
  Eric R. Graef
April 23, 2007
  Preformed Line Products
 
  (440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES IMPROVED FINANCIAL RESULTS
FOR THE QUARTER ENDED MARCH 31, 2007
    Net income increased 49% for the first quarter on a 7% increase in net sales
    Earnings per diluted share increased 60% for the first three months
Mayfield Village, Ohio, April 23, 2007 — Preformed Line Products Company (Nasdaq:PLPC) today reported financial results for the first quarter ended March 31, 2007.
Net income for the quarter ended March 31, 2007 increased 49% to $3,718,000, or $.69 per diluted share, compared to $2,499,000, or $.43 per diluted share, for the comparable period in 2006.
Sales for the quarter of $56,531,000 were 7% higher than sales of $52,635,000 in the first quarter of 2006.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “We experienced improvements in
our major domestic markets during the quarter. Sales in our domestic core markets of power and telecommunications improved 21% in the first quarter of 2007 compared to 2006. Investment in new projects to upgrade the power grid by the electric utility companies was the major driver of this increase. We also benefited from increasing investment by cable companies to defend their market share as well as the investment by communication companies in running fiber to the premise. Foreign sales were down less than 1% from the previous year; however, currency had a 4% favorable impact on sales. I am pleased with the increase in net income of nearly 50% and am optimistic about the rest of the year.”

 


 

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 four domestic manufacturing centers located in Rogers, Arkansas, Albuquerque, New Mexico, Albemarle, North Carolina, and Asheville, North Carolina. The Company serves its worldwide market through international operations in Australia, Brazil, Canada, China, England, Mexico, New Zealand, 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 heading “Forward-Looking Statements” in the Company’s Form 10-K filed with the SEC on March 15, 2007. The 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 INCOME
(UNAUDITED)
                 
In thousands, except per share data   Three month periods ended March 31,  
    2007     2006  
 
               
Net sales
  $ 56,531     $ 52,635  
Cost of products sold
    37,623       36,164  
 
           
GROSS PROFIT
    18,908       16,471  
 
               
Costs and expenses
               
Selling
    5,963       5,767  
General and administrative
    5,816       5,796  
Research and engineering
    1,946       1,873  
Other operating expenses — net
    186       61  
 
           
 
    13,911       13,497  
 
               
Royalty income — net
    381       346  
 
           
 
               
OPERATING INCOME
    5,378       3,320  
 
               
Other income (expense)
               
Interest income
    305       402  
Interest expense
    (165 )     (102 )
Other expense — net
    (6 )     (19 )
 
           
 
    134       281  
 
           
 
               
INCOME BEFORE INCOME TAXES
    5,512       3,601  
 
               
Income taxes
    1,794       1,102  
 
           
 
               
NET INCOME
  $ 3,718     $ 2,499  
 
           
 
               
Net income per share — basic
  $ 0.69     $ 0.44  
 
           
 
               
Net income per share — diluted
  $ 0.69     $ 0.43  
 
           
 
               
Cash dividends declared per share
  $ 0.20     $ 0.20  
 
           
 
               
Weighted average number of shares outstanding — basic
    5,360       5,731  
 
           
 
               
Weighted average number of shares outstanding — diluted
    5,406       5,792  
 
           
In 2007 we adopted FASB Staff Position No. AUG AIR — 1 retrospectively. Consequently for the three month period ended March 31, 2006 net income increased by $15.


 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                 
    March 31,     December 31,  
Thousands of dollars, except share data   2007     2006  
ASSETS
               
Cash and cash equivalents
  $ 21,392     $ 29,949  
Accounts receivable, less allowances of $1,088 ($1,209 in 2006)
    38,336       30,029  
Inventories — net
    44,183       40,415  
Prepaids and other
    7,289       5,032  
 
           
TOTAL CURRENT ASSETS
    111,200       105,425  
 
               
Property and equipment — net
    54,016       52,810  
Deferred income taxes
    3,914       5,145  
Goodwill — net
    4,793       2,166  
Patents and other intangibles — net
    2,465       2,546  
Other assets
    2,653       2,760  
 
           
TOTAL ASSETS
  $ 179,041     $ 170,852  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
 
               
Notes payable to banks
  $ 4,816     $ 3,738  
Current portion of long-term debt
    2,168       2,157  
Trade accounts payable
    14,865       11,606  
Accrued compensation and amounts withheld from employees
    6,218       5,556  
Accrued expenses and other liabilities
    8,459       10,022  
 
           
TOTAL CURRENT LIABILITIES
    36,526       33,079  
 
               
Long-term debt, less current portion
    1,740       2,204  
Other non-current liabilities and deferred income taxes
    7,074       4,421  
 
               
SHAREHOLDERS’ EQUITY
               
Common shares — $2 par value, 15,000,000 shares authorized, 5,358,437 and 5,360,259 outstanding, net of 367,333 and 365,311 treasury shares at par, respectively
    10,717       10,721  
Paid in capital
    1,629       1,562  
Retained earnings
    133,686       131,949  
Accumulated other comprehensive loss
    (12,331 )     (13,084 )
 
           
TOTAL SHAREHOLDERS’ EQUITY
    133,701       131,148  
 
           
 
               
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 179,041     $ 170,852  
 
           
In 2007 we adopted FASB Staff Position No. AUG AIR — 1 retrospectively. Consequently at December 31, 2006 retained earnings increased by $215, accrued expenses decreased by $326 and deferred income taxes decreased $111.