UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): March 14, 2013
Preformed Line Products Company
(Exact name of registrant as specified in its charter)
| Ohio | 0-31164 | 34-0676895 |
| (State or other jurisdiction of incorporation) | (Commission File Number) |
(IRS Employer Identification No.) |
|
660 Beta Drive Mayfield Village, Ohio |
44143 |
| (Address of principal executive offices) | (Zip Code) |
Registrant’s telephone number, including area code: (440) 461-5200
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
¨ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
¨ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
¨ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On March 14, 2013, Preformed Line Products Company issued a press release announcing earnings for the three months ended December 31, 2012. A copy of the press release is attached hereto as Exhibit 99.1. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except, as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
| 99.1 | Press release dated March 14, 2013, announcing earnings for the three months ended December 31, 2012 |
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
| PREFORMED LINE PRODUCTS COMPANY | |||
| By: | /s/ Eric R. Graef | ||
Eric R. Graef, Vice President – Finance & | |||
DATED: March 14, 2013
| 2 |
Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2012
MAYFIELD VILLAGE, Ohio, March 14, 2013 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the fourth quarter and the full year 2012.
Net income for the quarter ended December 31, 2012 decreased 41% to $5,273,000, or $.98 per diluted share, compared to $8,940,000, or $1.67 per diluted share, for the comparable period in 2011. Net sales in the fourth quarter of 2012 decreased 2% to $104,200,000 compared to $106,096,000 in the fourth quarter of 2011.
Currency exchange rates had a negative impact on 2012 fourth quarter net sales of $1,043,000 and the impact on net income was insignificant.
Net income for the year ended December 31, 2012 decreased 5% to $29,286,000, or $5.45 per diluted share, compared to $30,984,000, or $5.78 per diluted share in 2011. Net sales for 2012 increased 3% to $439,192,000 compared to $424,404,000 in 2011.
Currency exchange rates had a negative impact on 2012 net income of $1,262,000 and on net sales of $14,096,000.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our 2012 results reflect another record year for sales. After excluding the $14.1 million negative impact of translating foreign currency denominated financial statements into US dollars, our sales improved 7% over the prior year. This comes on top of a 25% increase in 2011 and a 32% increase in 2010. During 2012 we generated a record $50 million of cash from operating activities. This enabled us to continue investing in our business while reducing our bank debt by nearly $21 million. Additionally we accelerated the payment of our first two quarterly 2013 dividends into 2012 due to the uncertainty of tax law changes during December of 2012."
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 Argentina, 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 "Forward-Looking Statements" and "Risk Factors" in the Company's 2011 Annual Report on Form 10-K filed with the SEC on March 14, 2012 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 |
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STATEMENTS OF CONSOLIDATED OPERATIONS |
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(UNAUDITED) |
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| In thousands, except per share data |
| Three month periods ended December 31, |
| Twelve month periods ended December 31, |
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| 2012 |
| 2011 |
| 2012 |
| 2011 |
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| Net sales |
| $ 104,200 |
| $ 106,096 |
| $ 439,192 |
| $ 424,404 |
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| Cost of products sold |
| 71,247 |
| 71,904 |
| 294,754 |
| 283,555 |
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| GROSS PROFIT |
| 32,953 |
| 34,192 |
| 144,438 |
| 140,849 |
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| Costs and expenses |
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| Selling |
| 9,347 |
| 9,032 |
| 37,093 |
| 35,825 |
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| General and administrative |
| 9,278 |
| 9,357 |
| 46,222 |
| 44,396 |
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| Research and engineering |
| 4,152 |
| 3,544 |
| 15,447 |
| 13,360 |
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| Other operating expense (income) |
| 992 |
| 243 |
| 1,554 |
| 1,914 |
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| 23,769 |
| 22,176 |
| 100,316 |
| 95,495 |
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| OPERATING INCOME |
| 9,184 |
| 12,016 |
| 44,122 |
| 45,354 |
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| Other income (expense) |
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| Interest income |
| 172 |
| 153 |
| 648 |
| 575 |
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| Interest expense |
| (108) |
| (173) |
| (597) |
| (827) |
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| Other income |
| 65 |
| 471 |
| 654 |
| 892 |
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| 129 |
| 451 |
| 705 |
| 640 |
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| INCOME BEFORE INCOME TAXES |
| 9,313 |
| 12,467 |
| 44,827 |
| 45,994 |
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| Income taxes |
| 4,040 |
| 3,527 |
| 15,541 |
| 15,010 |
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| NET INCOME |
| $ 5,273 |
| $ 8,940 |
| $ 29,286 |
| $ 30,984 |
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| BASIC EARNINGS PER SHARE |
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| Net Income to PLPC common shareholders |
| $ 0.99 |
| $ 1.70 |
| $ 5.50 |
| $ 5.89 |
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| DILUTED EARNINGS PER SHARE |
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| Net Income to PLPC common shareholders |
| $ 0.98 |
| $ 1.67 |
| $ 5.45 |
| $ 5.78 |
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| Cash dividends declared per share |
| $ 0.40 |
| $ 0.20 |
| $ 1.00 |
| $ 0.80 |
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| Weighted-average number of shares outstanding - basic |
| 5,310 |
| 5,249 |
| 5,324 |
| 5,259 |
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| Weighted-average number of shares outstanding - diluted |
| 5,363 |
| 5,339 |
| 5,371 |
| 5,358 |
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PREFORMED LINE PRODUCTS COMPANY |
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CONSOLIDATED BALANCE SHEETS |
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(UNAUDITED) |
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| December 31, |
| December 31, |
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Thousands of dollars, except share and per share data |
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| 2012 |
| 2011 |
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ASSETS |
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Cash and cash equivalents |
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| $ 28,120 |
| $ 32,126 |
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Accounts receivable, less allowances of $2,039 ($1,627 in 2011) |
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| 61,695 |
| 68,949 |
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Inventories - net |
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| 86,916 |
| 88,613 |
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Deferred income taxes |
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| 6,557 |
| 5,263 |
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Prepaids |
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| 8,381 |
| 8,254 |
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Other current assets |
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| 2,432 |
| 2,285 |
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| TOTAL CURRENT ASSETS |
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| 194,101 |
| 205,490 |
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Property, plant and equipment - net |
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| 93,326 |
| 82,860 |
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Other intangibles - net |
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| 14,038 |
| 11,352 |
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Goodwill |
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| 15,537 |
| 12,199 |
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Deferred income taxes |
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| 6,069 |
| 5,585 |
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Other assets |
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| 9,993 |
| 9,862 |
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| TOTAL ASSETS |
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| $ 333,064 |
| $ 327,348 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Notes payable to banks |
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| $ 217 |
| $ 2,030 |
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Current portion of long-term debt |
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| 251 |
| 601 |
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Trade accounts payable |
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| 21,822 |
| 25,630 |
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Accrued compensation and amounts withheld from employees |
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| 12,271 |
| 11,472 |
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Accrued expenses and other liabilities |
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| 23,682 |
| 22,100 |
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| TOTAL CURRENT LIABILITIES |
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| 58,243 |
| 61,833 |
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Long-term debt, less current portion |
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| 9,322 |
| 27,991 |
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Other noncurrent liabilities and deferred income taxes |
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| 24,430 |
| 24,666 |
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SHAREHOLDERS' EQUITY |
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PLPC shareholders' equity: |
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| Common shares - $2 par value, 15,000,000 shares authorized, 5,377,937 and |
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| 5,333,630 issued and outstanding, net of 689,472 and 639,138 treasury |
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| shares at par, respectively, as of September 30, 2012 and December 31, 2011 | 10,756 |
| 10,667 |
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| Common shares issued to Rabbi Trust, 184,036 and 109,040 shares at |
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| December 31, 2012 and December 31, 2011 |
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| (6,522) |
| (3,812) |
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| Deferred Compensation Liability |
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| 6,522 |
| 3,812 |
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| Paid in capital |
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| 16,355 |
| 12,718 |
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| Retained earnings |
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| 227,622 |
| 206,512 |
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| Accumulated other comprehensive loss |
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| (13,664) |
| (17,039) |
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| TOTAL SHAREHOLDERS' EQUITY |
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| 241,069 |
| 212,858 |
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| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
| $ 333,064 |
| $ 327,348 |
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CONTACT: Eric R. Graef, Preformed Line Products, +1-440-473-9249