Exhibit 99.1
For immediate release August 7, 2009 | Eric R. Graef Preformed Line Products (440) 473-9249 |
PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER
AND FIRST HALF 2009 RESULTS
AND FIRST HALF 2009 RESULTS
Mayfield Village, Ohio, August 7, 2009 —Preformed Line Products Company (Nasdaq: PLPC)today reported financial results for the second quarter and the first six months of 2009.
Net income for the quarter ended June 30, 2009 was $3,584,000, or $.68 per diluted share, compared to $5,489,000 or $1.03 per diluted share, for the comparable period in 2008. 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 2009 were $59,568,000, a decrease of 21% from sales of $75,362,000 in the second quarter of 2008.
Net income for the six months ended June 30, 2009 decreased 25% to $6,306,000, or $1.19 per diluted share, compared to $8,439,000, or $1.57 per diluted share for the comparable period in 2008. Net sales decreased 13% to $118,262,000 for the first six months of 2009 compared to $135,227,000 in the first six months of 2008.
Currency exchange rates negatively impacted sales by $7,014,000 for the quarter and $15,690,000 for the first six months of 2009, while the negative impact on net income was $339,000 for the quarter and $848,000 for the first six months of 2009.
Rob Ruhlman, Chairman and Chief Executive Officer, said, “Although our results for the quarter were disappointing, they were not unexpected based upon the state of the world economy. Our comparisons are to a very strong second quarter in 2008 and the same will be the case for third quarter. We adjusted our cost structure last year while our operations were strong. Currently we are leveraging our costs over a lower sales volume. We expect that sales will improve when the economy improves and we get the anticipated boost from the stimulus package. We feel that we are correctly positioned for the future growth.”
PAGE 2 / PLP ANNOUNCES SECOND QUARTER RESULTS
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 headings “Risk Factors” and “Forward-Looking Statements” in the Company’s 2008 Annual Report on Form 10-K filed with the SEC on March 13, 2009. 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)
STATEMENTS OF CONSOLIDATED OPERATIONS
(UNAUDITED)
Three month periods ended June 30, | Six month periods ended June 30, | |||||||||||||||
Thousands, except per share data | 2009 | 2008 | 2009 | 2008 | ||||||||||||
Net sales | $ | 59,568 | $ | 75,362 | $ | 118,262 | $ | 135,227 | ||||||||
Cost of products sold | 39,718 | 51,685 | 79,834 | 92,545 | ||||||||||||
GROSS PROFIT | 19,850 | 23,677 | 38,428 | 42,682 | ||||||||||||
Costs and expenses | ||||||||||||||||
Selling | 5,526 | 6,186 | 10,890 | 11,760 | ||||||||||||
General and administrative | 7,371 | 7,691 | 14,423 | 15,047 | ||||||||||||
Research and engineering | 2,159 | 2,338 | 4,220 | 4,327 | ||||||||||||
Other operating (income) expenses — net | (311 | ) | 233 | (22 | ) | 143 | ||||||||||
14,745 | 16,448 | 29,511 | 31,277 | |||||||||||||
OPERATING INCOME | 5,105 | 7,229 | 8,917 | 11,405 | ||||||||||||
Other income (expense) | ||||||||||||||||
Interest income | 87 | 216 | 212 | 430 | ||||||||||||
Interest expense | (107 | ) | (138 | ) | (216 | ) | (277 | ) | ||||||||
Other income (expense) | 178 | 22 | 657 | 20 | ||||||||||||
158 | 100 | 653 | 173 | |||||||||||||
INCOME BEFORE INCOME TAXES AND DISCONTINUED OPERATIONS | 5,263 | 7,329 | 9,570 | 11,578 | ||||||||||||
Income taxes | 1,721 | 2,382 | 3,311 | 3,797 | ||||||||||||
INCOME FROM CONTINUING OPERATIONS, NET OF TAX | 3,542 | 4,947 | 6,259 | 7,781 | ||||||||||||
Income from discontinued operations, net of tax | — | 620 | — | 769 | ||||||||||||
NET INCOME | 3,542 | 5,567 | 6,259 | 8,550 | ||||||||||||
Less net income (loss) attributable to noncontrolling interests, net of tax | (42 | ) | 78 | (47 | ) | 111 | ||||||||||
NET INCOME ATTRIBUTABLE TO PLPC | $ | 3,584 | $ | 5,489 | $ | 6,306 | $ | 8,439 | ||||||||
BASIC EARNINGS PER SHARE | ||||||||||||||||
Income per share from continuing operations attributable to PLPC common shareholders | $ | 0.69 | $ | 0.92 | $ | 1.21 | $ | 1.44 | ||||||||
Discontinued operations attributable to PLPC common shareholders | $ | — | $ | 0.12 | $ | — | $ | 0.14 | ||||||||
Net income attributable to PLPC common shareholders | $ | 0.69 | $ | 1.04 | $ | 1.21 | $ | 1.58 | ||||||||
DILUTED EARNINGS PER SHARE | ||||||||||||||||
Income per share from continuing operations attributable to PLPC common shareholders | $ | 0.68 | $ | 0.91 | $ | 1.19 | $ | 1.43 | ||||||||
Discontinued operations attributable to PLPC common shareholders | $ | — | $ | 0.12 | $ | — | $ | 0.14 | ||||||||
Net income attributable to PLPC common shareholders | $ | 0.68 | $ | 1.03 | $ | 1.19 | $ | 1.57 | ||||||||
Cash dividends declared per share | $ | 0.20 | $ | 0.20 | $ | 0.40 | $ | 0.40 | ||||||||
Weighted-average number of shares outstanding — basic | 5,231 | 5,296 | 5,228 | 5,339 | ||||||||||||
Weighted-average number of shares outstanding — diluted | 5,311 | 5,345 | 5,306 | 5,387 | ||||||||||||
Amount attributable to PLPC common shareholders: | ||||||||||||||||
Income from continuing operations, net of tax | $ | 3,584 | $ | 4,869 | $ | 6,306 | $ | 7,670 | ||||||||
Discontinued operations, net of tax | — | 620 | — | 769 | ||||||||||||
Net Income | $ | 3,584 | $ | 5,489 | $ | 6,306 | $ | 8,439 | ||||||||
PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
June 30, | December 31, | |||||||
Thousands of dollars, except share and per share data | 2009 | 2008 | ||||||
ASSETS | ||||||||
Cash and cash equivalents | $ | 27,701 | $ | 19,869 | ||||
Accounts receivable, less allowances of $974 ($972 in 2008) | 41,285 | 36,899 | ||||||
Inventories — net | 49,149 | 48,412 | ||||||
Deferred income taxes | 3,225 | 2,786 | ||||||
Prepaids and other | 4,982 | 4,704 | ||||||
TOTAL CURRENT ASSETS | 126,342 | 112,670 | ||||||
Property and equipment — net | 58,769 | 55,940 | ||||||
Patents and other intangibles — net | 3,538 | 3,858 | ||||||
Goodwill | 6,151 | 5,520 | ||||||
Deferred income taxes | 6,513 | 6,943 | ||||||
Other assets | 6,788 | 5,944 | ||||||
TOTAL ASSETS | $ | 208,101 | $ | 190,875 | ||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||||||||
Notes payable to banks | $ | 4,025 | $ | 3,101 | ||||
Current portion of long-term debt | 894 | 494 | ||||||
Trade accounts payable | 16,037 | 14,632 | ||||||
Accrued compensation and amounts withheld from employees | 8,925 | 6,606 | ||||||
Accrued expenses and other liabilities | 11,206 | 10,415 | ||||||
TOTAL CURRENT LIABILITIES | 41,087 | 35,248 | ||||||
Long-term debt, less current portion | 2,930 | 2,653 | ||||||
Other noncurrent liabilities and deferred income taxes | 15,996 | 15,973 | ||||||
SHAREHOLDERS’ EQUITY | ||||||||
PLPC shareholders’ equity: | ||||||||
Common shares — $2 par value, 15,000,000 shares authorized, 5,236,839 and 5,223,830 issued and outstanding, net of 551,059 treasury shares at par, respectively | 10,474 | 10,448 | ||||||
Paid in capital | 4,610 | 3,704 | ||||||
Retained earnings | 150,938 | 146,624 | ||||||
Accumulated other comprehensive loss | (18,421 | ) | (24,511 | ) | ||||
TOTAL PLPC SHAREHOLDERS’ EQUITY | 147,601 | 136,265 | ||||||
Noncontrolling interest | 487 | 736 | ||||||
TOTAL SHAREHOLDERS’ EQUITY | 148,088 | 137,001 | ||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 208,101 | $ | 190,875 | ||||