Exhibit 99.1
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For immediate release Eric R. Graef
February 25, 2004 Preformed Line Products
(440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES FINANCIAL RESULTS FOR THE
2003 FOURTH QUARTER AND FULL YEAR AND A REGULAR QUARTERLY DIVIDEND
Cleveland, Ohio, February 25, 2004 - PREFORMED LINE PRODUCTS COMPANY (NASDAQ:
PLPC) today reported improved financial results for the fourth quarter and the
full year ended December 31, 2003.
Net income was $2,976,000 or $.52 per share in the fourth quarter of 2003
compared to a net loss of $2,079,000 or $.36 per share in the prior year. Sales
for the fourth quarter 2003 were $38,679,000, a decrease of 2% from last year's
$39,393,000. Included in the 2003 fourth quarter was a gain of $2,209,000 or
$.38 per share on the sale of the Company's interest in a Japanese joint
venture. In the third quarter of 2003 the Company recorded tax expense of
$1,327,000 ($.23 per share) which represented tax on the Company's portion of
undistributed earnings of this joint venture. The loss for the fourth quarter of
2002 included a $1.6 million or $.19 per share charge for goodwill impairment as
well as $.5 million or $.08 per share for a non-recurring charge related to the
abandonment of an operation. Excluding these non-recurring gains and charges,
the fourth quarter results would have been a net income of $.14 per share in
2003 and a net loss of $.09 per share in 2002.
Net sales for 2003 were $153,333,000, a decrease of 10% from the prior year's
$169,842,000. Net income was $4,383,000 or $.76 per share in 2003 compared to a
net loss of $1,140,000 or $.20 per share in 2002. In addition to the charges
mentioned previously, the year-to-date results for 2002 included a $.8 million
or $.14 per share non-recurring charge and a $4.7 million or $.57 per share
charge for abandoning an operation headquartered in Scotland. Excluding all of
these charges, earnings per share would have been $.78 for 2002.
Rob Ruhlman, President and Chief Executive Officer, stated, "For the past two
years our sales have been depressed as a result of difficult times in our served
markets. We have taken advantage of this slow period to improve the efficiency
of our operations, reduce costs and maintain close, supportive relationships
with our customers. The positive impact of these efforts began to surface in
fourth quarter sales. When we exclude the same period sales of our Scottish
operation in 2002, sales actually improved 8% in the fourth quarter of 2003.
Similarly, sales for the entire year would have decreased less than 1%.
Worldwide sales, outside of North and Latin America remained strong throughout
the year. We have further strengthened our overall financial position and
continue to look for attractive acquisition candidates with which to leverage
our financial strength."
PAGE 2 / PLP ANNOUNCES FOURTH QUARTER RESULTS & DIVIDEND
On Wednesday, February 18, 2004, the Board of Directors declared a regular
quarterly dividend in the amount of $.20 per share on the Company's common
shares, payable April 20, 2004 to shareholders of record April 1, 2004.
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 is in Cleveland, Ohio, and the Company operates
three domestic manufacturing centers, located in Rogers, Arkansas, Albemarle,
North Carolina, and Asheville, North Carolina. The Company serves its worldwide
market through international operations in Australia, Brazil, Canada, China,
England, Japan, Mexico, New Zealand, South Africa and Spain.
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 that 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 Form 10-K filed with the SEC on
March 26, 2003. The 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 INCOME
FOR THE THREE AND TWELVE MONTHS ENDED DECEMBER 31, 2003 AND 2002
Thousands of dollars, except per share data Three months ended December 31, Twelve months ended December 31,
------------------------------- --------------------------------
2003 2002 2003 2002
--------- --------- --------- ---------
Net sales $ 38,679 $ 39,393 $ 153,333 $ 169,842
Cost of products sold 27,265 28,753 107,366 119,173
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GROSS PROFIT 11,414 10,640 45,967 50,669
Costs and expenses
Selling 4,406 4,424 17,092 21,870
General and administrative 4,997 5,344 19,603 22,346
Research and engineering 1,267 1,100 5,210 5,604
Other operating expenses (income) 190 905 (50) 1,020
Asset Impairment -- 1,621 -- 1,621
--------- --------- --------- ---------
10,860 13,394 41,855 52,461
Royalty income - net 379 189 1,372 1,366
--------- --------- --------- ---------
OPERATING INCOME (LOSS) 933 (2,565) 5,484 (426)
Other income (expense)
Equity in net income of foreign joint ventures 3,553 122 3,710 447
Interest income 143 94 421 287
Interest expense (158) (150) (490) (687)
Other expense (40) (50) (161) (200)
--------- --------- --------- ---------
3,498 16 3,480 (153)
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INCOME (LOSS) BEFORE INCOME TAXES 4,431 (2,549) 8,964 (579)
Income taxes (benefit) 1,455 (470) 4,581 561
--------- --------- --------- ---------
NET INCOME (LOSS) $ 2,976 $ (2,079) $ 4,383 $ (1,140)
========= ========= ========= =========
Net income (loss) per share - basic and diluted $ 0.52 $ (0.36) $ 0.76 $ (0.20)
========= ========= ========= =========
Cash dividends declared per share $ 0.20 $ 0.20 $ 0.80 $ 0.80
========= ========= ========= =========
Average number of shares outstanding - basic 5,794 5,773 5,783 5,766
========= ========= ========= =========
Average number of shares outstanding - diluted 5,840 5,773 5,801 5,766
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PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
AS OF DECEMBER 31, 2003 AND DECEMBER 31, 2002
December 31
2003 2002
--------- ---------
(Thousands of dollars,
except share data)
ASSETS
Cash and cash equivalents $ 28,209 $ 11,629
Accounts receivable, less allowance of $2,463 ($3,770 in 2002) 24,225 24,763
Inventories-net 31,113 33,750
Deferred income taxes - short-term 3,740 5,276
Prepaids and other 2,344 3,104
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TOTAL CURRENT ASSETS 89,631 78,522
Property and equipment - net 47,888 48,569
Investments in foreign joint ventures 2,826 8,087
Deferred income taxes - long-term 434 863
Goodwill, patents and other intangibles - net 5,553 5,596
Other 3,290 3,147
--------- ---------
TOTAL ASSETS $ 149,622 $ 144,784
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LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $ 1,019 $ 1,246
Trade accounts payable 7,648 7,844
Accrued compensation and amounts withheld from employees 3,749 3,269
Accrued expenses and other liabilities 4,356 4,251
Accrued profit-sharing and pension contributions 3,850 4,176
Dividends payable 1,163 1,155
Income taxes 2,302 337
Current portion of long-term debt 1,884 1,676
--------- ---------
TOTAL CURRENT LIABILITIES 25,971 23,954
Long-term debt, less current portion 2,515 5,847
Deferred income taxes - long-term 97 161
Minimum pension liability 309 726
SHAREHOLDERS' EQUITY
Common stock - $2 par value, 15,000,000 shares authorized, 5,814,269 and
5,772,710 issued and outstanding, net of 377,404
and 389,188 treasury shares at par, respectively 11,629 11,545
Paid in capital 472 82
Retained earnings 123,022 123,124
Other comprehensive loss (14,393) (20,655)
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TOTAL SHAREHOLDERS' EQUITY 120,730 114,096
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 149,622 $ 144,784
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