Exhibit 99.1
For immediate release Eric R. Graef
April 26, 2004 Preformed Line Products
(440) 473-9249
PREFORMED LINE PRODUCTS ANNOUNCES IMPROVED FINANCIAL RESULTS
FOR THE THREE MONTHS ENDED MARCH 31, 2004
Cleveland, Ohio, April 26, 2004 - PREFORMED LINE PRODUCTS COMPANY (NASDAQ: PLPC)
today reported improved financial results for the first quarter ended March 31,
2004.
Net sales for the three months ended March 31, 2004 were $39,530,000, a 12%
increase over last year's $35,209,000. Net income for the first quarter 2004
increased 26% to $1,364,000 compared to $1,084,000 in 2003. Earnings per share
for the quarter increased to $.24 compared to $.19 in 2003.
Rob Ruhlman, President and Chief Executive Officer, stated, "We are seeing a
stabilization in our markets and sales are on the rise. Domestic sales in our
core markets increased 12%, matching the overall sales increase for the quarter.
This long anticipated sales increase leverages the cost containment effort
initiated over the past several years resulting in the 26% increase in net
income. Incoming orders remain strong, our financial position is solid and I am
optimistic about the rest of 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 are 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, 2004. 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 MONTHS ENDED MARCH 31, 2004 AND 2003
Thousands, except per share data Three months ended March 31,
----------------------------
2004 2003
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(Unaudited)
Net sales $ 39,530 $ 35,209
Cost of products sold 27,460 23,542
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GROSS PROFIT 12,070 11,667
Costs and expenses
Selling 4,487 3,915
General and administrative 4,517 5,071
Research and engineering 1,477 1,373
Other operating expenses (income) - net (128) 116
-------- --------
10,353 10,475
Royalty income - net 426 348
-------- --------
OPERATING INCOME 2,143 1,540
Other income (expense)
Equity in net income of foreign joint ventures 58 199
Interest income 127 75
Interest expense (86) (108)
Other expense (36) (40)
-------- --------
63 126
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INCOME BEFORE INCOME TAXES 2,206 1,666
Income taxes 842 582
-------- --------
NET INCOME $ 1,364 $ 1,084
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Net income per share - basic $ 0.24 $ 0.19
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Net income per share - diluted $ 0.23 $ 0.19
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Cash dividends declared per share $ 0.20 $ 0.20
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Average number of shares outstanding - basic 5,782 5,773
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Average number of shares outstanding - diluted 5,866 5,777
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PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS
AS OF MARCH 31, 2004 AND DECEMBER 31, 2003
March 31, December 31,
Thousands of dollars, except share data 2004 2003
--------- -----------
(Unaudited)
ASSETS
Cash and cash equivalents $ 24,603 $ 28,209
Accounts receivable, less allowance of $2,551 ($2,463 in 2003) 28,428 24,225
Inventories-net 31,529 31,113
Deferred income taxes 3,308 3,740
Prepaids and other 1,722 1,692
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TOTAL CURRENT ASSETS 89,590 88,979
Property and equipment - net 46,964 47,888
Investments in foreign joint venture 2,884 2,826
Deferred income taxes 401 434
Goodwill, patents and other intangibles - net 5,451 5,553
Other 3,214 3,290
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TOTAL ASSETS $ 148,504 $ 148,970
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LIABILITIES AND SHAREHOLDERS' EQUITY
Notes payable to banks $ 982 $ 1,019
Trade accounts payable 10,454 7,648
Accrued compensation and amounts withheld from employees 4,444 3,749
Accrued expenses and other liabilities 3,912 4,356
Accrued profit-sharing and pension contributions 4,201 3,850
Dividends payable 1,143 1,163
Income taxes 650 1,650
Current portion of long-term debt 1,872 1,884
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TOTAL CURRENT LIABILITIES 27,658 25,319
Long-term debt, less current portion 2,504 2,515
Deferred income taxes - long-term 111 97
Pension liability 309
SHAREHOLDERS' EQUITY
Common stock - $2 par value, 15,000,000 shares authorized, 5,714,433 and
5,814,269 outstanding, net of 477,404
and 377,404 treasury shares at par, respectively 11,429 11,629
Paid in capital 472 472
Retained earnings 120,861 123,022
Other comprehensive loss (14,531) (14,393)
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TOTAL SHAREHOLDERS' EQUITY 118,231 120,730
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TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 148,504 $ 148,970
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