EX-99.1 2 c76634exv99w1.htm EXHIBIT 99.1 Filed by Bowne Pure Compliance
Exhibit 99.1
(PREFORMED LINE PRODUCTS LOGO)
     
For immediate release
  Eric R. Graef
November 3, 2008
  Preformed Line Products
 
  (440) 473-9249 
PREFORMED LINE PRODUCTS ANNOUNCES FINANCIAL RESULTS FOR
THE THIRD QUARTER AND FIRST NINE MONTHS OF 2008
  •  
Net income increased 15% for the third quarter and 21% for the first nine months
 
  •  
Net sales increased 22% for the third quarter and 23% for the first nine months
 
  •  
Earnings per diluted share increased 18% for the third quarter and 22% for the first nine months
Mayfield Village, Ohio, November 3, 2008 — Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the third quarter and the first nine months of 2008.
Net income for the quarter ended September 30, 2008 increased 15% to $6,423,000, or $1.22 per diluted share, compared to $5,592,000, or $1.03 per diluted share, for the comparable period in 2007. Net sales in the third quarter of 2008 were $73,952,000, an increase of 22% from sales of $60,413,000 in the third quarter of 2007.
Net income for the nine months ended September 30, 2008 increased 21% to $14,862,000, or $2.78 per diluted share, compared to $12,308,000, or $2.27 per diluted share for the comparable period in 2007. 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 increased 23% to $209,179,000 for the first nine months of 2008 compared to $170,464,000 in the first nine months of 2007.
Currency exchange rates favorably impacted sales by $1,882,000 for the quarter and $9,020,000 for the first nine months of 2008, while the impact on net income was $97,000 for the quarter and $299,000 for the first nine months of 2008.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “Our increase in sales and profitability is gratifying coming in the face of difficult and uncertain economic conditions throughout the world. This is a challenge we will continue to face during the remainder of this year and next as our customers deal with limited borrowing opportunities in the capital markets. The successful integration of our two acquisitions during 2007 and the divestiture of SMP in May of this year were instrumental in the improvement in our operating results to date.”
P.O. Box 91129       Cleveland, Ohio 44101       440.461.5200       www.preformed.com

 

 

 

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 heading “Forward-Looking Statements” in the Company’s 2007 Annual Report on Form 10-K filed with the SEC on April 7, 2008. 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)
                                 
In thousands, except per share data   Three month periods ended September 30,     Nine month periods ended September 30,  
    2008     2007     2008     2007  
          (restated)           (restated)  
 
                                
Net sales
   $ 73,952     $ 60,413     $ 209,179     $ 170,464  
Cost of products sold
     48,489       38,974       141,034       111,743  
 
                        
GROSS PROFIT
     25,463       21,439       68,145       58,721  
 
                                
Costs and expenses
                                
Selling
     6,119       5,462       17,879       16,516  
General and administrative
     7,506       6,347       22,553       17,999  
Research and engineering
     2,218       1,731       6,545       5,185  
Other operating expenses — net
     462       (169 )     605       141  
Goodwill impairment
     —       —       —       199  
 
                        
 
     16,305       13,371       47,582       40,040  
 
                        
OPERATING INCOME
     9,158       8,068       20,563       18,681  
 
                                
Other income (expense)
                                
Interest income
     225       264       655       805  
Interest expense
     (138 )     (140 )     (415 )     (437 )
Other income (expense)
     176       (9 )     196       (22 )
 
                        
 
     263       115       436       346  
 
                        
 
                                
INCOME BEFORE INCOME TAXES, MINORITY INTERESTS AND DISCONTINUED OPERATIONS
     9,421       8,183       20,999       19,027  
 
                                
Income taxes
     2,807       2,663       6,604       6,838  
 
                        
 
                                
INCOME BEFORE MINORITY INTERESTS AND DISCONTINUED OPERATIONS
     6,614       5,520       14,395       12,189  
 
                                
Minority interests, net of tax
     (157 )     (24 )     (268 )     (24 )
 
                                
INCOME FROM CONTINUING OPERATIONS
     6,457       5,496       14,127       12,165  
 
                                
Income (loss) from discontinued operations, net of tax
     (34 )     96       735       143  
 
                        
 
                                
NET INCOME
   $ 6,423     $ 5,592     $ 14,862     $ 12,308  
 
                        
 
                                
Income per share from continuing operations — basic
   $ 1.24     $ 1.02     $ 2.67     $ 2.27  
 
                        
Income (loss) per share from discontinued operations — basic
   $ (0.01 )   $ 0.02     $ 0.14     $ 0.03  
 
                        
Total net income per share — basic
   $ 1.23     $ 1.04     $ 2.81     $ 2.30  
 
                        
 
                                
Income per share from continuing operations — diluted
   $ 1.23     $ 1.01     $ 2.64     $ 2.25  
 
                        
Income (loss) per share from discontinued operations — diluted
   $ (0.01 )   $ 0.02     $ 0.14     $ 0.02  
 
                        
Total net income per share — diluted
   $ 1.22     $ 1.03     $ 2.78     $ 2.27  
 
                        
 
                                
Cash dividends declared per share
   $ 0.20     $ 0.20     $ 0.60     $ 0.60  
 
                        
 
                                
Weighted-average number of shares outstanding — basic
     5,218       5,379       5,298       5,369  
 
                        
 
                                
Weighted-average number of shares outstanding — diluted
     5,269       5,437       5,345       5,418  
 
                        

 

 

 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                 
    September 30,     December 31,  
Thousands of dollars, except share data   2008     2007  
          (restated)  
ASSETS
                
Cash and cash equivalents
   $ 24,775     $ 23,392  
Accounts receivable, less allowances of $1,177 ($1,199 in 2007)
     46,752       37,002  
Inventories — net
     47,020       43,788  
Deferred income taxes
     3,218       2,982  
Prepaids and other
     5,811       4,098  
Current assets of discontinued operations
     —       12,188  
 
            
TOTAL CURRENT ASSETS
     127,576       123,450  
 
                
Property and equipment — net
     60,934       58,506  
Patents and other intangibles — net
     4,287       5,637  
Goodwill
     6,140       3,928  
Deferred income taxes
     4,213       3,744  
Other assets
     8,193       8,601  
 
            
 
                
TOTAL ASSETS
   $ 211,343     $ 203,866  
 
            
 
                
LIABILITIES AND SHAREHOLDERS’ EQUITY
                
 
                
Notes payable to banks
   $ 2,858     $ 4,076  
Current portion of long-term debt
     948       1,949  
Trade accounts payable
     19,041       15,178  
Accrued compensation and amounts withheld from employees
     9,742       6,995  
Accrued expenses and other liabilities
     15,695       12,254  
Current liabilities of discontinued operations
     —       1,897  
 
            
TOTAL CURRENT LIABILITIES
     48,284       42,349  
 
                
Long-term debt, less current portion
     2,854       3,010  
Other noncurrent liabilities and deferred income taxes
     7,501       7,882  
Minority interests
     1,381       904  
 
                
SHAREHOLDERS’ EQUITY
                
Common shares — $2 par value, 15,000,000 shares authorized, 5,223,180 and 5,380,956 outstanding, net of 551,059 and 378,333 treasury shares at par, respectively
     10,446       10,762  
Paid in capital
     3,402       2,720  
Retained earnings
     144,917       140,339  
Accumulated other comprehensive loss
     (7,442 )     (4,100 )
 
            
TOTAL SHAREHOLDERS’ EQUITY
     151,323       149,721  
 
            
 
                
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 211,343     $ 203,866