2008-08-07 10:30:00
- Net income increased 54% for the second quarter and 26% for the first six
months
- Net sales increased 30% for the second quarter and 23% for the first six
months
- Earnings per diluted share increased 56% for the second quarter and 27%
for the first six months
MAYFIELD VILLAGE, Ohio, Aug. 7 /EMWNews/ -- Preformed Line
Products Company (Nasdaq: PLPC) today reported financial results for the
second quarter and the first six months of 2008.
Net income for the quarter ended June 30, 2008 increased 54% to
$5,489,000, or $1.03 per diluted share, compared to $3,564,000, or $.66 per
diluted share, for the comparable period in 2007. Net income in the second
quarter of 2008 included a net gain of $495,000, or $.09 per diluted share,
on the sale of Superior Modular Products Company, a wholly owned domestic
subsidiary.
Net sales in the second quarter of 2008 were $75,362,000, an increase
of 30% from sales of $58,072,000 in the second quarter of 2007.
Net income for the six months ended June 30, 2008 increased 26% to
$8,439,000, or $1.57 per diluted share, compared to $6,716,000, or $1.24
per diluted share for the comparable period in 2007. Net sales increased
23% to $135,227,000 for the first six months of 2008 compared to
$110,051,000 in the first six months of 2007.
Currency exchange rates favorably impacted sales by $3,565,000 for the
quarter and $6,623,000 for the first six months of 2008, while the impact
on net income was only $83,000 for the quarter and $202,000 for the first
six months of 2008.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "Our second
quarter performance was solid with double digit increases in sales. We are
pleased with the ongoing successful integration of our acquisitions from
last year. The sale of SMP will allow us to continue to focus on growing
our core business units. We implemented price increases in June to pass on
a portion of the cost increases we are experiencing in raw materials. The
cost increases are ongoing and we are considering additional price
increases in the third quarter. Although the world economy is experiencing
turbulence, our geographical diversity has thus far mitigated this
disturbance. This continues to be a challenge we will face for the
foreseeable future."
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, 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 2007 Annual Report on
Form 10-K filed with the SEC on April 7, 2008. 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 Three month periods Six month periods
data ended June 30, ended June 30,
2008 2007 2008 2007
(restated) (restated)
Net sales $75,362 $58,072 $135,227 $110,051
Cost of products sold 51,685 38,358 92,545 72,768
GROSS PROFIT 23,677 19,714 42,682 37,283
Costs and expenses
Selling 6,186 5,861 11,760 11,054
General and administrative 7,691 6,168 15,047 11,652
Research and engineering 2,338 1,783 4,327 3,455
Other operating expenses - net 233 124 143 310
Goodwill impairment - - - 199
16,448 13,936 31,277 26,670
OPERATING INCOME 7,229 5,778 11,405 10,613
Other income (expense)
Interest income 216 254 430 541
Interest expense (138) (132) (277) (297)
Other income (expense) 22 (7) 20 (13)
100 115 173 231
INCOME BEFORE INCOME TAXES,
MINORITY INTERESTS AND
DISCONTINUED OPERATIONS 7,329 5,893 11,578 10,844
Income taxes 2,382 2,509 3,797 4,175
INCOME BEFORE MINORITY
INTERESTS AND DISCONTINUED
OPERATIONS 4,947 3,384 7,781 6,669
Minority interests, net of tax (78) - (111) -
INCOME FROM CONTINUING
OPERATIONS 4,869 3,384 7,670 6,669
Income from discontinuing
operations, net of tax 620 180 769 47
NET INCOME $5,489 $3,564 $8,439 $6,716
Income per share from continued
operations - basic $0.92 $0.63 $1.44 $1.25
Income per share from discontinued
operations - basic $0.12 $0.04 $0.14 $0.01
Total net income per share - basic $1.04 $0.67 $1.58 $1.26
Income per share from continued
operations - diluted $0.91 $0.63 $1.43 $1.23
Income per share from discontinued
operations - diluted $0.12 $0.03 $0.14 $0.01
Total net income per share - diluted $1.03 $0.66 $1.57 $1.24
Cash dividends declared per share $0.20 $0.20 $0.40 $0.40
Weighted-average number of shares
outstanding - basic 5,296 5,369 5,339 5,364
Weighted-average number of shares
outstanding - diluted 5,345 5,421 5,387 5,408
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, December 31,
Thousands of dollars, except share 2008 2007
data
ASSETS
Cash and cash equivalents $23,331 $23,392
Accounts receivable, less allowances
of $1,065 ($1,199 in 2007) 48,275 37,002
Inventories - net 44,823 43,788
Deferred income taxes 2,976 2,982
Prepaids and other 6,097 4,098
Current assets of discontinued operations - 12,188
TOTAL CURRENT ASSETS 125,502 123,450
Property and equipment - net 63,143 58,506
Patents and other intangibles - net 5,722 5,637
Goodwill 5,063 3,928
Deferred income taxes 4,001 3,744
Other assets 8,911 8,601
TOTAL ASSETS $212,342 $203,866
LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $2,750 $4,076
Current portion of long-term debt 1,630 1,949
Trade accounts payable 19,553 15,178
Accrued compensation and amounts withheld
from employees 9,150 6,995
Accrued expenses and other liabilities 12,369 12,254
Current liabilities of discontinued
operations - 1,897
TOTAL CURRENT LIABILITIES 45,452 42,349
Long-term debt, less current portion 3,200 3,010
Other noncurrent liabilities and deferred
income taxes 8,434 7,882
Minority interests 1,255 904
SHAREHOLDERS' EQUITY
Common shares - $2 par value, 15,000,000
shares authorized, 5,214,830 and 5,380,956
outstanding, net of 551,059 and 378,333
treasury shares at par, respectively 10,430 10,762
Paid in capital 3,012 2,720
Retained earnings 139,547 140,339
Accumulated other comprehensive income (loss) 1,012 (4,100)
TOTAL SHAREHOLDERS' EQUITY 154,001 149,721
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $212,342 $203,866
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