PLPC
$63.25
Preformed Line Prd
($1.05)
(1.63%)
Earnings Details
Quarter September 2020
Friday, October 30, 2020 8:30:00 AM
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Summary

Preformed Line Prd (PLPC) Recent Earnings

Preformed Line Prd (PLPC) reported Quarter September 2020 earnings of $2.59 per share on revenue of $127.5 million.. Revenue grew 6.9% on a year-over-year basis.

Results
Reported Earnings
$2.59
Earnings Whisper
-
Consensus Estimate
Reported Revenue
$127.5 Mil
Revenue Estimate
Growth
Earnings Growth
Revenue Growth
Power Rating
Grade
Earnings Release

Preformed Line Products Announces Third Quarter And First Nine Months Of 2020 Results

MAYFIELD VILLAGE, Ohio, Oct. 30, 2020 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third quarter and first nine months of 2020.

Net income for the quarter ended September 30, 2020 was $13.0 million, or $2.59 per diluted share, compared to $8.0 million, or $1.55 per diluted share, for the comparable period in 2019.

Net sales in the third quarter of 2020 increased 7% to $127.5 million, compared to $119.2 million in the third quarter of 2019.

Net income for the nine months ended September 30, 2020 was $27.1 million, or $5.43 per diluted share, compared to $17.7 million, or $3.48 per diluted share, for the comparable period in 2019.

Net sales increased 5% to $347.9 million for the first nine months of 2020 compared to $331.2 million in the first nine months of 2019.

Currency translation rates unfavorably impacted net sales by $3.7 million for the quarter and $15.0 million for the nine months ended September 30, 2020.  Currency had an unfavorable impact on net income of $.3 million for the quarter and $1.0 million for the first nine months of 2020.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "The record quarterly net sales, net income and diluted earnings per share for the three months ended September 30, 2020 are a testament to the hard work and dedication of every employee at PLP.  COVID-19 has created new challenges for us to deal with as a company but also new opportunities.  Our number one priority continues to be the protection of our employees and their families through rigorous safety measures that we have put in place due to COVID-19.  The sacrifices made by our employees this year have enabled PLP to meet customer requirements in all regions, most notably the U.S. market.  One opportunity created by COVID-19 has been the increase in PLP-USA sales made possible by the significance of our uninterrupted U.S. based manufacturing facilities in Albemarle, North Carolina and Rogers, Arkansas.  Maintaining and growing our U.S. manufacturing footprint enables PLP to provide excellent customer service to our U.S. and export customer base.  The challenges brought on by COVID-19 may be with us for some time.  While the extent to which COVID-19 will impact our future operations is unknown, we will continue to focus on the safety and well-being of our employees, their families, our customers and our valued suppliers while continuing to provide the high quality products and services our customers appreciate."

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 two domestic manufacturing centers located in Rogers, Arkansas, and Albemarle, North Carolina.  The Company serves its worldwide market through international operations in Argentina, Australia, Austria, Brazil, Canada, China, Colombia, Czech Republic, England, France, Indonesia, Malaysia, Mexico, New Zealand, Poland, Russia, South Africa, Spain, Thailand and Vietnam.

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 uncertainty in business conditions and economy due to COVID-19 including the severity and duration of business disruption caused by the pandemic, the strength of the economy and demand for the Company's products and the mix of products sold, the relative degree of competitive and customer price pressure on the Company's products, the cost, availability and quality of raw materials required for the manufacture of products, and the Company's ability to continue to develop proprietary technology and maintain high quality products and customer service to meet or exceed new industry performance standards and individual customer expectations, and other factors described under the headings "Forward-Looking Statements" and "Risk Factors" in the Company's 2019 Annual Report on Form 10-K filed with the SEC on March 6, 2020 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

CONSOLIDATED BALANCE SHEETS









September 30,


December 31,

(Thousands of dollars, except share and per share data)


2020


2019






ASSETS





Cash and cash equivalents


$             41,248


$             38,929

Accounts receivable, less allowances of $3,536 ($3,849 in 2019)


96,712


83,517

Inventories - net


94,315


95,718

Prepaids


11,130


9,522

Other current assets


2,517


4,289



TOTAL CURRENT ASSETS


245,922


231,975









Property, plant and equipment - net


134,440


124,018

Other intangibles - net



13,926


15,116

Goodwill




27,689


27,840

Deferred income taxes 



6,515


7,564

Other assets



23,549


27,058











TOTAL ASSETS


$            452,041


$            433,571









LIABILITIES AND SHAREHOLDERS' EQUITY













Trade accounts payable



$             30,299


$             28,282

Notes payable to banks



15,582


8,696

Current portion of long-term debt


7,198


3,354

Accrued compensation and amounts withheld from employees


17,764


11,817

Accrued expenses and other liabilities


27,352


28,924



TOTAL CURRENT LIABILITIES


98,195


81,073









Long-term debt, less current portion


45,220


53,722

Other noncurrent liabilities and deferred income taxes


29,048


30,208









SHAREHOLDERS' EQUITY





Shareholders' equity:







Common shares - $2 par value, 15,000,000 shares authorized, 4,914,543 and






    4,992,979 issued and outstanding, as of September 30, 2020 and December 31, 2019


13,013


12,848


Common shares issued to rabbi trust, 265,508 and 267,641 shares at






     September 30, 2020 and December 31, 2019, respectively


(10,940)


(10,981)


Deferred Compensation Liability


10,940


10,981


Paid-in capital



42,047


38,854


Retained earnings



377,384


353,292


Treasury shares, at cost, 1,592,027 and 1,431,235 shares at 






     September 30, 2020 and December 31, 2019, respectively


(87,320)


(79,106)


Accumulated other comprehensive loss


(65,549)


(57,353)



TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY


279,575


268,535


Noncontrolling interest


3


33



TOTAL SHAREHOLDERS' EQUITY


279,578


268,568



TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY


$            452,041


$            433,571

 

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED OPERATIONS













(In thousands, except per share data)


Three Months Ended September 30


Nine Months Ended September 30





2020


2019


2020


2019























Net sales


$            127,463


$      119,217


$            347,944


$      331,212

Cost of products sold


82,549


79,874


230,554


226,798



GROSS PROFIT


44,914


39,343


117,390


104,414












Costs and expenses










Selling


8,884


9,410


26,228


26,868


General and administrative


14,037


13,275


39,903


38,486


Research and engineering


4,541


4,240


12,950


12,809


Other operating expense - net


562


775


1,969


1,447





28,024


27,700


81,050


79,610














OPERATING INCOME 


16,890


11,643


36,340


24,804












Other income (expense)










Interest income


36


211


226


613


Interest expense


(504)


(735)


(1,932)


(1,688)


Other income - net


998


138


1,775


306





530


(386)


69


(769)














INCOME BEFORE INCOME TAXES 


17,420


11,257


36,409


24,035












Income taxes


4,458


3,213


9,306


6,302














NET INCOME


$              12,962


$          8,044


$              27,103


$        17,733












Less: Net income attributable to noncontrolling interests


(8)


(93)


30


(54)














NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS
COMPANY SHAREHOLDERS


$              12,954


$          7,951


$              27,133


$        17,679












BASIC EARNINGS PER SHARE











Net Income Attributable to Preformed Line Products
Company Shareholders


$                  2.63


$            1.58


$                  5.47


$            3.51












DILUTED EARNINGS PER SHARE











Net Income Attributable to Preformed Line Products
Company Shareholders


$                  2.59


$            1.55


$                  5.43


$            3.48












Cash dividends declared per share


$                  0.20


$            0.20


$                  0.60


$            0.60












Weighted-average number of shares outstanding - basic


4,917


5,024


4,963


5,039












Weighted-average number of shares outstanding - diluted


5,011


5,119


4,998


5,077


 

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SOURCE Preformed Line Products Company