MAYFIELD VILLAGE, Ohio, March 8, 2019 /PRNewswire/ — Preformed Line Products Company (NASDAQ:  PLPC) today reported financial results for the fourth quarter and the full year 2018.

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Net sales in the fourth quarter of 2018 were $105.4 million compared to $96.9 million in the fourth quarter of 2017.  Net sales for 2018 were $420.9 million compared to $378.2 million in 2017.  This represents a 9% increase for the fourth quarter and an 11% increase for the year.

The U.S. Tax Cuts and Jobs Act (the «Tax Act») enacted during December 2017 adversely impacted net income during the fourth quarter of 2017 and for the year as a result of a one-time estimated net tax expense of $5.8 million.  The expense primarily related to taxes on the Company’s unremitted foreign earnings and profits and re-measurement of the Company’s deferred tax assets and liabilities.  This negatively impacted earnings per diluted share by $1.11 for the fourth quarter of 2017, and $1.14 per diluted share for the year.  In 2018, there was a $1.9 million reduction in the estimate, which favorably impacted earnings per diluted share by $.37 for the year.

Net income for the quarter ended December 31, 2018 was $5.3 million, or $1.02 per diluted share, compared to $.7 million, or $.14 per diluted share, for the comparable period in 2017, including the negative impacts from the Tax Act.  Net income for the year ended December 31, 2018 was $26.6 million, or $5.21 per diluted share, compared to $12.7 million, or $2.47 per diluted share in 2017. 

Rob Ruhlman, Chairman and Chief Executive Officer, said, «The fourth quarter completed a record year of domestic sales and four consecutive quarters of double-digit sales growth in local currencies across the Company.  We recognize the competitive landscape continues to be challenging and world economic conditions uncertain, so we remain committed to expanding our technical expertise and high-quality product offering.  We are confident that our unrivaled customer service will continue to drive top line expansion in the markets we serve.»

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, Brazil, Canada, China, Colombia, England, France, Indonesia, Malaysia, Mexico, New Zealand, Poland, Russia, 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 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 2017 Annual Report on Form 10-K filed with the SEC on March 9, 2018 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 December 31

Twelve Months Ended December 31

2018

2017

2018

2017

Net sales

$             105,411

$        96,892

$             420,878

$      378,212

Cost of products sold

73,392

66,137

288,647

259,584

GROSS PROFIT

32,019

30,755

132,231

118,628

Costs and expenses

Selling

9,061

8,180

36,358

34,048

General and administrative

11,539

11,017

45,398

43,160

Research and engineering

4,094

3,505

15,107

14,327

Other operating expense – net

(516)

307

2,434

985

24,178

23,009

99,297

92,520

OPERATING INCOME 

7,841

7,746

32,934

26,108

Other income (expense)

Interest income

146

104

486

430

Interest expense

(298)

(230)

(1,290)

(1,061)

Other income – net

190

71

458

329

38

(55)

(346)

(302)

INCOME BEFORE INCOME TAXES 

7,879

7,691

32,588

25,806

Income taxes

2,615

6,989

6,007

13,152

NET INCOME

$                 5,264

$             702

$               26,581

$        12,654

BASIC EARNINGS PER SHARE

Net Income

$                   1.05

$            0.14

$                   5.28

$            2.48

DILUTED EARNINGS PER SHARE

Net Income

$                   1.02

$            0.14

$                   5.21

$            2.47

Cash dividends declared per share

$                   0.20

$            0.20

$                   0.80

$            0.80

Weighted-average number of shares outstanding – basic

5,012

5,070

5,032

5,102

Weighted-average number of shares outstanding – diluted

5,173

5,195

5,107

5,133

 

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

December 31,

December 31,

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

2018

2017

ASSETS

Cash and cash equivalents

$              43,609

$              44,358

Accounts receivable, less allowances of $3,178 ($3,325 in 2017)

73,139

73,972

Inventories – net

85,259

77,886

Prepaids

9,374

8,700

Other current assets

2,882

2,214

TOTAL CURRENT ASSETS

214,263

207,130

Property, plant and equipment – net

102,955

108,598

Other intangibles – net

8,458

10,020

Goodwill

15,621

16,544

Deferred income taxes 

6,900

7,774

Other assets

10,600

9,719

TOTAL ASSETS

$            358,797

$            359,785

LIABILITIES AND SHAREHOLDERS’ EQUITY

Trade accounts payable

$              26,414

$              25,141

Notes payable to banks

9,042

864

Current portion of long-term debt

1,448

1,448

Accrued compensation and amounts withheld from employees

11,153

11,461

Accrued expenses and other liabilities

21,430

23,919

TOTAL CURRENT LIABILITIES

69,487

62,833

Long-term debt, less current portion

24,960

34,598

Other noncurrent liabilities and deferred income taxes

14,980

23,817

SHAREHOLDERS’ EQUITY

Shareholders’ equity:

Common shares – $2 par value, 15,000,000 shares authorized, 5,020,410 and

    5,038,207 issued and outstanding, as of December 31, 2018 and December 31, 2017

12,662

12,593

Common shares issued to rabbi trust, 269,630 and 298,026 shares at

     December 31, 2018 and December 31, 2017, respectively

(11,008)

(11,834)

Deferred Compensation Liability

11,008

11,834

Paid-in capital

34,401

29,734

Retained earnings

334,170

311,765

Treasury shares, at cost, 1,310,387 and 1,258,069 shares at 

     December 31, 2018 and December 31, 2017, respectively

(72,280)

(68,115)

Accumulated other comprehensive loss

(59,583)

(47,440)

TOTAL SHAREHOLDERS’ EQUITY

249,370

238,537

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$            358,797

$            359,785

 

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SOURCE Preformed Line Products Company