Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2021

MAYFIELD VILLAGE, Ohio, April 29, 2021 /PRNewswire/ — Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for its first…

MAYFIELD VILLAGE, Ohio, April 29, 2021 /PRNewswire/ — Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for its first quarter ended March 31, 2021.

Net sales for the first quarter of 2021 were $117.6 million, an increase of 14%, compared to $102.9 million in the first quarter of 2020.  Currency translation rates had a favorable impact on 2021 first quarter net sales of $1.8 million, or 2%. 

The Company posted net income for the first quarter of 2021 of $7.2 million, or $1.45 per diluted share, compared to $3.7 million, or $.74 per diluted share, in the first quarter of 2020.  Currency translation rates had a favorable effect on net income of less than $.1 million.   

Rob Ruhlman, Chairman and Chief Executive Officer, said, «We are very pleased with our net sales growth and earnings generation for Q1 2021.  All regions reported an increase in net sales versus Q1 2020 as well as improvement in profitability.  PLP USA continues to lead the increase driven by growth in the communications product family as well as the significance of our U.S. based manufacturing and distribution facilities.  Additional investments will be made within our PLP USA operations to support this growth both today and into the future. Our international operations continue to expand their capabilities and product offerings, resulting in year over year improvement in both net sales and earnings.  Our geographic diversification has helped de-risk our business model during these challenging economic times.  While we have seen reductions in revenue in certain operations that rely more heavily on government sponsored infrastructure projects that have been delayed due to COVID-19, our strength in other markets has more than offset the shortfalls to allow for both top line and bottom-line growth.  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 expect.»

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, France, Great Britain, 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 2020 Annual Report on Form 10-K filed with the SEC on March 5, 2021 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

STATEMENTS OF CONSOLIDATED OPERATIONS












(In thousands, except per share data)


Three Months Ended March 31







2021


2020





















Net sales


$       117,553


$  102,852



Cost of products sold


77,361


69,942





GROSS PROFIT


40,192


32,910












Costs and expenses








Selling


9,601


8,905




General and administrative


14,394


13,434




Research and engineering


4,611


4,296




Other operating expense – net


818


1,122







29,424


27,757














OPERATING INCOME 


10,768


5,153












Other income (expense)








Interest income


21


111




Interest expense


(463)


(709)




Other income – net


228


549







(214)


(49)














INCOME BEFORE INCOME TAXES 


10,554


5,104












Income taxes


3,377


1,451














NET INCOME


$           7,177


$      3,653












Less: Net income attributable to noncontrolling interests


2


45














NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS

COMPANY SHAREHOLDERS


$           7,179


$      3,698












EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE







TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:









Basic


$            1.46


$       0.74





Diluted


$            1.45


$       0.74












Cash dividends declared per share


$            0.20


$       0.20












Weighted-average number of shares outstanding – basic


4,917


5,008












Weighted-average number of shares outstanding – diluted


4,936


5,017


 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS





















March 31,


December 31,

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




2021


2020












ASSETS










Cash and cash equivalents





$              34,685


$              45,175

Accounts receivable, less allowances of $3,436 ($3,464 in 2020)




93,654


92,686

Inventories – net






99,694


97,537

Prepaids







8,722


17,660

Other current assets






3,283


3,256



TOTAL CURRENT ASSETS





240,038


256,314












Property, plant and equipment – net





145,400


125,965

Other intangibles – net






13,811


14,443

Goodwill







28,844


29,508

Deferred income taxes 






5,459


10,863

Other assets






23,451


23,994














TOTAL ASSETS





$            457,003


$            461,087












LIABILITIES AND SHAREHOLDERS’ EQUITY



















Trade accounts payable






$              33,945


$              31,646

Notes payable to banks






12,853


17,428

Current portion of long-term debt





9,033


5,216

Accrued compensation and amounts withheld from employees




16,823


14,736

Accrued expenses and other liabilities





25,019


34,748



TOTAL CURRENT LIABILITIES





97,673


103,774












Long-term debt, less current portion





37,394


33,333

Other noncurrent liabilities and deferred income taxes




30,798


31,911












SHAREHOLDERS’ EQUITY








Shareholders’ equity:










Common shares – $2 par value, 15,000,000 shares authorized, 4,912,959 and






    4,902,233 issued and outstanding, as of March 31, 2021 and December 31, 2020, respectively

13,155


13,028


Common shares issued to rabbi trust, 261,781 and 265,508 shares at







     March 31, 2021 and December 31, 2020, respectively




(10,820)


(10,940)


Deferred Compensation Liability





10,820


10,940


Paid-in capital






44,322


43,134


Retained earnings






385,180


379,035


Treasury shares, at cost, 1,664,517 and 1,611,927 shares at 








     March 31, 2021 and December 31, 2020, respectively




(92,246)


(88,568)


Accumulated other comprehensive loss





(59,266)


(54,551)



TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS’ EQUITY

291,145


292,078


Noncontrolling interest





(7)


(9)



TOTAL SHAREHOLDERS’ EQUITY




291,138


292,069



TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY



$            457,003


$            461,087


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SOURCE Preformed Line Products