Preformed Line Products Announces Financial Results for the Fourth Quarter and Full Year 2009
MAYFIELD VILLAGE, Ohio, March 16 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the fourth quarter and the full year 2009.
Net income for the quarter ended December 31, 2009 was $10,731,000, or $1.99 per diluted share, compared to $2,761,000, or $.52 per diluted share, for the comparable period in 2008. Net income in 2009 includes a $9,087,000 gain from our recent acquisition of the Dulmison product line and after tax expenses related to the acquisition of $3,179,000. Net sales in the fourth quarter of 2009 increased 15% to $69,812,000 compared to $60,563,000 in the fourth quarter of 2008.
Currency exchange rates had a positive impact on 2009 fourth quarter net income of $201,000 and on net sales of $6,455,000.
Net income for the year ended December 31, 2009 increased 33% to $23,357,000, or $4.35 per diluted share, compared to $17,623,000, or $3.30 per diluted share in 2008. Net income in 2008 included a net gain of $756,000, or $.14 per diluted share, on the sale of a former wholly owned domestic subsidiary. Net sales for 2009 were $257,206,000 compared to $269,742,000 in 2008.
Currency exchange rates had a negative impact on 2009 net income of $1,088,000. The negative currency exchange rate impact on net sales was $12,184,000.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Considering the challenges we faced in 2009 from the global economic environment, I believe that we had an extremely successful year. At the beginning of the year, we said flat would be the new up in 2009 as a result of the uncertainties that we faced. Our sales were indeed flat when viewed in native currency. Net income was a record as a result of our persistence in pursuing growth initiatives over the past several years. The acquisition of the Dulmison product line in late 2009 will strengthen our market presence and integration of these operations creates opportunities for our worldwide workforce."
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, 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 heading "Forward-Looking Statements" in the Company's 2009 Annual Report on Form 10-K filed with the SEC on March 15, 2010. 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)
Three month Twelve month
Thousands, except per share periods ended periods ended
data December 31, December 31,
-------------- --------------
2009 2008 2009 2008
---- ---- ---- ----
Net sales $69,812 $60,563 $257,206 $269,742
Cost of products sold 48,086 41,441 172,438 182,475
------ ------ ------- -------
GROSS PROFIT 21,726 19,122 84,768 87,267
Costs and expenses
Selling 6,062 5,676 22,702 23,555
General and administrative 10,961 7,461 33,993 30,014
Research and engineering 2,585 2,325 9,216 8,870
Other operating (income)
expenses - net (244) 235 (603) 840
------ ------ ------ ------
19,364 15,697 65,308 63,279
------ ----- ------ ------
OPERATING INCOME 2,362 3,425 19,460 23,988
Other income (expense)
Gain on acquisition of
business 9,087 - 9,087 -
Interest income 73 191 380 846
Interest expense (154) (129) (523) (544)
Other income (expense) 206 274 1,189 470
----- ----- ------ -----
9,212 336 10,133 772
----- ----- ------ -----
INCOME BEFORE INCOME TAXES
AND DISCONTINUED
OPERATIONS 11,574 3,761 29,593 24,760
Income taxes 1,259 1,114 6,760 7,718
----- ----- ----- -----
INCOME FROM CONTINUING
OPERATIONS, NET OF TAX 10,315 2,647 22,833 17,042
Income from discontinued
operations, net of tax - 134 - 869
NET INCOME 10,315 2,781 22,833 17,911
Less net income (loss)
attributable to
noncontrolling
interests, net of tax (416) 20 (524) 288
------- ------ ------- -------
NET INCOME ATTRIBUTABLE
TO PLPC $10,731 $2,761 $23,357 $17,623
======= ====== ======= =======
BASIC EARNINGS PER SHARE
Income per share from
continuing operations
attributable to PLPC common
shareholders $2.05 $0.50 $4.46 $3.17
===== ===== ===== =====
Discontinued operations
attributable to PLPC common
shareholders $- $0.03 $- $0.16
===== ===== ===== =====
Net income attributable to
PLPC common shareholders $2.05 $0.53 $4.46 $3.34
===== ===== ===== =====
DILUTED EARNINGS PER SHARE
Income per share from
continuing operations
attributable to PLPC common
shareholders $1.99 $0.50 $4.35 $3.14
===== ===== ===== =====
Discontinued operations
attributable to PLPC common
shareholders $- $0.03 $- $0.16
===== ===== ===== =====
Net income attributable to
PLPC common shareholders $1.99 $0.52 $4.35 $3.30
===== ===== ===== =====
Cash dividends declared per
share $0.20 $0.20 $0.80 $0.80
===== ===== ===== =====
Weighted-average number of
shares outstanding - basic 5,238 5,223 5,232 5,279
===== ===== ===== =====
Weighted-average number of
shares outstanding - diluted 5,387 5,306 5,366 5,339
===== ===== ===== =====
Amount attributable to PLPC
common shareholders:
Income from continuing
operations, net of tax $10,731 $2,627 $23,357 $16,754
Discontinued operations,
net of tax - 134 - 869
------- ------ ------- -------
Net Income $10,731 $2,761 $23,357 $17,623
======= ====== ======= =======
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
Thousands of dollars, except December 31, December 31,
share and per share data 2009 2008
---- ----
ASSETS
Cash and cash equivalents $24,097 $19,869
Accounts receivable, less
allowances of $995 ($972 in 2008) 49,245 36,899
Inventories - net 56,036 48,412
Deferred income taxes 3,256 2,786
Prepaids 4,263 2,093
Other current assets 2,062 2,611
------- -------
TOTAL CURRENT ASSETS 138,959 112,670
Property and equipment - net 67,766 55,940
Patents and other intangibles - net 8,087 3,858
Goodwill 6,925 5,520
Deferred income taxes 4,358 6,943
Other assets 9,277 5,944
-------- --------
TOTAL ASSETS $235,372 $190,875
======== ========
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $3,181 $3,101
Current portion of long-term debt 1,330 494
Trade accounts payable 18,764 14,632
Accrued compensation and amounts
withheld from employees 8,345 6,606
Accrued expenses and other
liabilities 14,720 10,415
-------- --------
TOTAL CURRENT LIABILITIES 46,340 35,248
Long-term debt, less current
portion 3,099 2,653
Other noncurrent liabilities and
deferred income taxes 15,112 15,973
SHAREHOLDERS' EQUITY
PLPC shareholders' equity:
Common shares - $2 par value,
15,000,000 shares authorized,
5,248,298 and 5,223,830 issued
and outstanding, net of 554,059
and 551,059 treasury shares at
par, respectively 10,497 10,448
Paid in capital 5,885 3,704
Retained earnings 165,953 146,624
Accumulated other comprehensive
loss (11,369) (24,511)
-------- --------
TOTAL PLPC SHAREHOLDERS' EQUITY 170,966 136,265
-------- --------
Noncontrolling interest (145) 736
-------- --------
TOTAL SHAREHOLDERS' EQUITY 170,821 137,001
-------- --------
TOTAL LIABILITIES AND
SHAREHOLDERS' EQUITY $235,372 $190,875
======== ========
SOURCE Preformed Line Products Company
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