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Preformed Line Products Announces Financial Results For The Fourth Quarter And Full Year 2012
Submitted by admin on 3/14/2013 @ 4:49 AM
Companies mentioned in this article:
Preformed Line Products Company
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
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED)
In thousands, except per share data Three month periods ended December 31, Twelve month periods ended December
31,
2012 2011 2012 2011
---- ---- ---- ----
Net sales $104,200 $106,096 $439,192 $424,404
Cost of products sold 71,247 71,904 294,754 283,555
GROSS PROFIT 32,953 34,192 144,438 140,849
Costs and expenses
Selling 9,347 9,032 37,093 35,825
General and administrative 9,278 9,357 46,222 44,396
Research and engineering 4,152 3,544 15,447 13,360
Other operating expense (income) 992 243 1,554 1,914
--- --- ----- -----
23,769 22,176 100,316 95,495
OPERATING INCOME 9,184 12,016 44,122 45,354
Other income (expense)
Interest income 172 153 648 575
Interest expense (108) (173) (597) (827)
Other income 65 471 654 892
--- --- --- ---
129 451 705 640
--- --- --- ---
INCOME BEFORE INCOME TAXES 9,313 12,467 44,827 45,994
Income taxes 4,040 3,527 15,541 15,010
NET INCOME $5,273 $8,940 $29,286 $30,984
====== ====== ======= =======
BASIC EARNINGS PER SHARE
Net Income to PLPC common shareholders $0.99 $1.70 $5.50 $5.89
===== ===== ===== =====
DILUTED EARNINGS PER SHARE
Net Income to PLPC common shareholders $0.98 $1.67 $5.45 $5.78
===== ===== ===== =====
Cash dividends declared per share $0.40 $0.20 $1.00 $0.80
Weighted-average number of shares outstanding -
basic 5,310 5,249 5,324 5,259
Weighted-average number of shares outstanding -
diluted 5,363 5,339 5,371 5,358
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
December 31, December 31,
Thousands of dollars, except share and per share data 2012 2011
---- ----
ASSETS
Cash and cash equivalents $28,120 $32,126
Accounts receivable, less allowances of $2,039 ($1,627 in 2011) 61,695 68,949
Inventories - net 86,916 88,613
Deferred income taxes 6,557 5,263
Prepaids 8,381 8,254
Other current assets 2,432 2,285
----- -----
TOTAL CURRENT ASSETS 194,101 205,490
Property, plant and equipment - net 93,326 82,860
Other intangibles - net 14,038 11,352
Goodwill 15,537 12,199
Deferred income taxes 6,069 5,585
Other assets 9,993 9,862
----- -----
TOTAL ASSETS $333,064 $327,348
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $217 $2,030
Current portion of long-term debt 251 601
Trade accounts payable 21,822 25,630
Accrued compensation and amounts withheld from employees 12,271 11,472
Accrued expenses and other liabilities 23,682 22,100
------ ------
TOTAL CURRENT LIABILITIES 58,243 61,833
Long-term debt, less current portion 9,322 27,991
Other noncurrent liabilities and deferred income taxes 24,430 24,666
SHAREHOLDERS' EQUITY
PLPC shareholders' equity:
Common shares -$2 par value, 15,000,000 shares authorized,
5,377,937 and
5,333,630 issued and outstanding, net of 689,472 and 639,138
treasury
shares at par, respectively, as of September 30, 2012 and December
31, 2011 10,756 10,667
Common shares issued to Rabbi Trust, 184,036 and 109,040 shares
at
December 31, 2012 and December 31, 2011 (6,522) (3,812)
Deferred Compensation Liability 6,522 3,812
Paid in capital 16,355 12,718
Retained earnings 227,622 206,512
Accumulated other comprehensive loss (13,664) (17,039)
TOTAL SHAREHOLDERS' EQUITY 241,069 212,858
------- -------
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $333,064 $327,348
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SOURCE Preformed Line Products Company