EX-99.1 2 c82510exv99w1.htm EXHIBIT 99.1 Exhibit 99.1
Exhibit 99.1
(PREFORMED LOGO)
     
For immediate release
  Eric R. Graef
March 12, 2009
  Preformed Line Products
 
  (440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES FINANCIAL RESULTS
FOR THE FOURTH QUARTER AND FULL YEAR 2008
   
Record 2008 sales of $269.7 million increased 16%
 
   
Net income increased 24% for the year 2008
 
   
Fourth quarter net income increased 49%
Mayfield Village, Ohio, March 12, 2009 — Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the fourth quarter and the full year 2008.
Net income for the quarter ended December 31, 2008 increased to $2,761,000, or $.52 per diluted share, compared to $1,851,000, or $.34 per diluted share, for the comparable period in 2007. Net sales in the fourth quarter of 2008 were $60,563,000 compared to $62,825,000 in the fourth quarter of 2007. Currency exchange rates had a negative impact on 2008 fourth quarter sales of $5,564,000 and on net income of $524,000.
Net income for the year ended December 31, 2008 increased 24% to $17,623,000, or $3.30 per diluted share, compared to $14,159,000, or $2.61 per diluted share in 2007. Net income in 2008 included a net gain of $756,000, or $.14 per diluted share, on the sale of Superior Modular Products Company, a former wholly owned domestic subsidiary. Net sales for 2008 increased 16% to $269,742,000 compared to $233,289,000 in 2007.
Currency exchange rates favorably impacted 2008 sales by $3,457,000, while the impact on 2008 net income was unfavorable by $224,000.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “I am pleased with the achievement of sales growth for the fifth consecutive year including three straight years of record sales. Net income has improved for three consecutive years and our 2008 net income is second only to the dot com boom year of 1998. These improvements resulted from product innovation, improvements in production efficiencies, customer focus and strategy integration implemented over the past several years. We have a strong balance sheet and are positioned to succeed in these uncertain economic times. I cannot predict what 2009 will bring, but I am confident we are prepared for the challenges that lie ahead.”
 
P.O. Box 91129   |   Cleveland, Ohio 44101   |   440.461.5200   |   www.preformed.com

 

 


 

PAGE 2 / PLP ANNOUNCES FOURTH 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 December 31,     Twelve month periods ended December 31,  
    2008     2007     2008     2007  
          (restated)              
 
                               
Net sales
  $ 60,563     $ 62,825     $ 269,742     $ 233,289  
Cost of products sold
    41,441       43,645       182,475       155,388  
 
                       
GROSS PROFIT
    19,122       19,180       87,267       77,901  
 
                               
Costs and expenses
                               
Selling
    5,676       6,107       23,555       22,623  
General and administrative
    7,461       8,417       30,014       26,416  
Research and engineering
    2,325       2,007       8,870       7,192  
Other operating expenses — net
    235       197       840       338  
Goodwill impairment
                      199  
 
                       
 
    15,697       16,728       63,279       56,768  
 
                       
OPERATING INCOME
    3,425       2,452       23,988       21,133  
 
                               
Other income (expense)
                               
Interest income
    191       283       846       1,088  
Interest expense
    (129 )     (158 )     (544 )     (595 )
Other income (expense)
    274       (283 )     470       (305 )
 
                       
 
    336       (158 )     772       188  
 
                       
 
                               
INCOME BEFORE INCOME TAXES, MINORITY INTERESTS AND DISCONTINUED OPERATIONS
    3,761       2,294       24,760       21,321  
 
                               
Income taxes
    1,114       663       7,718       7,501  
 
                       
 
                               
INCOME BEFORE MINORITY INTERESTS AND DISCONTINUED OPERATIONS
    2,647       1,631       17,042       13,820  
 
                               
Minority interests, net of tax
    (20 )     (30 )     (288 )     (54 )
 
                               
INCOME FROM CONTINUING OPERATIONS
    2,627       1,601       16,754       13,766  
 
                               
Income from discontinued operations, net of tax
    134       250       869       393  
 
                       
 
                               
NET INCOME
  $ 2,761     $ 1,851     $ 17,623     $ 14,159  
 
                       
 
                               
Income per share from continuing operations — basic
  $ 0.50     $ 0.30     $ 3.17     $ 2.57  
 
                       
Income per share from discontinued operations — basic
  $ 0.03     $ 0.04     $ 0.17     $ 0.07  
 
                       
Total net income per share — basic
  $ 0.53     $ 0.34     $ 3.34     $ 2.64  
 
                       
 
                               
Income per share from continuing operations — diluted
  $ 0.50     $ 0.29     $ 3.14     $ 2.54  
 
                       
Income per share from discontinued operations — diluted
  $ 0.02     $ 0.05     $ 0.16     $ 0.07  
 
                       
Total net income per share — diluted
  $ 0.52     $ 0.34     $ 3.30     $ 2.61  
 
                       
 
                               
Cash dividends declared per share
  $ 0.20     $ 0.20     $ 0.80     $ 0.80  
 
                       
 
                               
Weighted-average number of shares outstanding — basic
    5,223       5,380       5,279       5,372  
 
                       
 
                               
Weighted-average number of shares outstanding — diluted
    5,306       5,439       5,339       5,416  
 
                       

 

 


 

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
                 
    December 31,     December 31,  
Thousands of dollars, except share data   2008     2007  
 
               
ASSETS
               
Cash and cash equivalents
  $ 19,869     $ 23,392  
Accounts receivable, less allowances of $964 ($1,199 in 2007)
    36,899       37,002  
Inventories — net
    48,412       43,788  
Deferred income taxes
    2,786       2,982  
Prepaids and other
    4,704       4,098  
Current assets of discontinued operations
          12,188  
 
           
TOTAL CURRENT ASSETS
    112,670       123,450  
 
               
Property and equipment — net
    55,940       58,506  
Patents and other intangibles — net
    3,858       5,637  
Goodwill
    5,520       3,928  
Deferred income taxes
    6,943       3,744  
Other assets
    5,944       8,601  
 
           
TOTAL ASSETS
  $ 190,875     $ 203,866  
 
           
 
               
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
Notes payable to banks
  $ 3,101     $ 4,076  
Current portion of long-term debt
    494       1,949  
Trade accounts payable
    14,632       15,178  
Accrued compensation and amounts withheld from employees
    6,606       6,995  
Accrued expenses and other liabilities
    10,415       12,254  
Current liabilities of discontinued operations
          1,897  
 
           
TOTAL CURRENT LIABILITIES
    35,248       42,349  
 
               
Long-term debt, less current portion
    2,653       3,010  
Other noncurrent liabilities and deferred income taxes
    15,973       7,882  
Minority interests
    736       904  
 
               
SHAREHOLDERS’ EQUITY
               
Common shares — $2 par value, 15,000,000 shares authorized, 5,223,830 and 5,380,956 outstanding, net of 551,059 and 378,333 treasury shares at par, respectively
    10,448       10,762  
Paid in capital
    3,704       2,720  
Retained earnings
    146,624       140,339  
Accumulated other comprehensive loss
    (24,511 )     (4,100 )
 
           
TOTAL SHAREHOLDERS’ EQUITY
    136,265       149,721  
 
           
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
  $ 190,875     $ 203,866