EX-99.1 2 v192592_ex99-1.htm Unassociated Document
 
For immediate release
Eric R. Graef
August 5, 2010
Preformed Line Products
 
(440) 473-9249
 
PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER
 AND FIRST HALF 2010 RESULTS

Ø 
Net income increased 70% for the second quarter and 15% for the first six months
Ø 
Net sales increased 38% for the second quarter and 28% for the first six months
Ø 
Earning per diluted share increased 66% for the second quarter and 13% for the first six months

Mayfield Village, Ohio, August 5, 2010 – Preformed Line Products Company (Nasdaq:  PLPC) today reported financial results for the second quarter and the first six months of 2010.

Net income for the quarter ended June 30, 2010 increased 70% to $6,096,000, or $1.13 per diluted share, compared to $3,584,000 or $.68 per diluted share, for the comparable period in 2009.

Net sales in the second quarter of 2010 were $82,137,000, an increase of 38% from sales of $59,568,000 in the second quarter of 2009.

Net income for the six months ended June 30, 2010 increased 15% to $7,228,000, or $1.34 per diluted share, compared to $6,306,000, or $1.19 per diluted share for the comparable period in 2009.  Net sales increased 28% to $151,045,000 for the first six months of 2010 compared to $118,262,000 in the first six months of 2009.

Currency exchange rates favorably impacted sales by $3,661,000 for the quarter and $10,597,000 for the first six months of 2010, while the favorable impact on net income was $245,000 for the quarter and $599,000 for the first six months of 2010.

Rob Ruhlman, Chairman and Chief Executive Officer, said, “We had a strong second quarter enabling us to overcome the disappointing results of the first quarter.  The integration of the Dulmison product line acquired in December of last year continues to proceed smoothly.  Although we have additional work to do in merging the Dulmison operations with our existing operations, I am happy with the cooperation and progress made between the two operations.  This acquisition certainly contributed to our second quarter growth but I am particularly impressed with the performance and success of our legacy operations in the face of an ongoing difficult world economic environment.  We continue to feel the pressure of higher raw material costs and we are countering by improving our production efficiencies and capitalizing on the strength of our geographical diversity.”
 
 
 
 
 
 
 
 
 
 
P.O. Box 91129   |   Cleveland, Ohio 44101   |   440.461.5200    |   www.preformed.com
 
 
 

 
 
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, Indonesia, Malaysia, 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 2009 Annual Report on Form 10-K filed with the SEC on March 15, 2010.  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)
 
Thousands, except per share data
 
Three month periods ended June 30,
   
Six month periods ended June 30,
 
   
2010
 
 
2009
 
 
2010
   
2009
 
                                 
Net sales
  $ 82,137     $ 59,568     $ 151,045     $ 118,262  
Cost of products sold
    54,682       39,718       103,565       79,834  
GROSS PROFIT
    27,455       19,850       47,480       38,428  
                                 
Costs and expenses
                               
Selling
    7,038       5,526       13,540       10,890  
General and administrative
    9,666       7,371       19,144       14,423  
Research and engineering
    2,700       2,159       5,559       4,220  
Other operating expense (income)
    1,135       (311 )     990       (22 )
      20,539       14,745       39,233       29,511  
                                 
OPERATING INCOME
    6,916       5,105       8,247       8,917  
                                 
Other income (expense)
                               
Interest income
    94       87       177       212  
Interest expense
    (126 )     (107 )     (296 )     (216 )
Other income
    409       178       760       657  
      377       158       641       653  
                                 
INCOME BEFORE INCOME TAXES
    7,293       5,263       8,888       9,570  
                                 
Income taxes
    1,197       1,721       1,758       3,311  
                                 
NET INCOME
    6,096       3,542       7,130       6,259  
                                 
Less net (loss) attributable to noncontrolling interests, net of tax
    -       (42 )     (98 )     (47 )
                                 
NET INCOME ATTRIBUTABLE TO PLPC
  $ 6,096     $ 3,584     $ 7,228     $ 6,306  
                                 
BASIC EARNINGS PER SHARE
                               
Net Income to PLPC common shareholders
  $ 1.16     $ 0.69     $ 1.38     $ 1.21  
                                 
DILUTED EARNINGS PER SHARE
                               
Net Income to PLPC common shareholders
  $ 1.13     $ 0.68     $ 1.34     $ 1.19  
                                 
Cash dividends declared per share
  $ 0.20     $ 0.20     $ 0.40     $ 0.40  
                                 
Weighted-average number of shares outstanding - basic
    5,253       5,231       5,253       5,228  
                                 
Weighted-average number of shares outstanding - diluted
    5,402       5,311       5,401       5,306  

 
 

 
 
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)

   
June 30,
   
December 31,
 
Thousands of dollars, except share and per share data
 
2010
   
2009
 
             
ASSETS
           
Cash and cash equivalents
  $ 22,110     $ 24,097  
Accounts receivable, less allowances of $1,157 ($995 in 2009)
    51,894       49,245  
Inventories - net
    57,131       56,036  
Deferred income taxes
    3,452       3,256  
Prepaids
    7,464       4,263  
Other current assets
    1,241       2,062  
TOTAL CURRENT ASSETS
    143,292       138,959  
                 
Property and equipment - net
    68,304       67,766  
Patents and other intangibles - net
    7,501       8,087  
Goodwill
    6,654       6,925  
Deferred income taxes
    5,038       4,358  
Other assets
    9,287       9,277  
                 
TOTAL ASSETS
  $ 240,076     $ 235,372  
                 
LIABILITIES AND SHAREHOLDERS' EQUITY
               
                 
Notes payable to banks
  $ 3,268     $ 3,181  
Current portion of long-term debt
    1,080       1,330  
Trade accounts payable
    20,405       18,764  
Accrued compensation and amounts withheld from employees
    11,167       8,345  
Accrued expenses and other liabilities
    12,755       14,720  
TOTAL CURRENT LIABILITIES
    48,675       46,340  
                 
Long-term debt, less current portion
    3,704       3,099  
Other noncurrent liabilities and deferred income taxes
    14,700       15,112  
                 
SHAREHOLDERS' EQUITY
               
PLPC shareholders' equity:
               
Common shares - $2 par value, 15,000,000 shares authorized,
               
5,253,306 and 5,248,298 issued and outstanding,
               
net of 553,747 and 554,059 treasury shares at par, respectively
    10,507       10,497  
Paid in capital
    7,301       5,885  
Retained earnings
    171,048       165,953  
Accumulated other comprehensive loss
    (15,591 )     (11,369 )
TOTAL PLPC SHAREHOLDERS' EQUITY
    173,265       170,966  
Noncontrolling interest
    (268 )     (145 )
TOTAL SHAREHOLDERS' EQUITY
    172,997       170,821  
                 
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY
  $ 240,076     $ 235,372