MAYFIELD VILLAGE, Ohio,
March 5, 2021 /PRNewswire/ --
Preformed Line Products Company (NASDAQ: PLPC) today
reported financial results for the fourth quarter and the full year
2020.
Net sales in the fourth quarter of 2020 were $118.5 million compared to $113.6 million in the fourth quarter of
2019. Net sales for 2020 were $466.4
million compared to $444.9
million in 2019. This represents an 4% increase for
the fourth quarter and a 5% increase for the year.
Net income for the quarter ended December
31, 2020 was $2.7 million, or
$0.53 per diluted share, compared to
$5.6 million, or $1.09 per diluted share, for the comparable
period in 2019. Net income for the year ended December 31, 2020 was $29.8 million, or $5.98 per diluted share, compared to $23.3 million, or $4.58 per diluted share in 2019.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "The record net sales and
earnings per share in 2020, a very unique year, are the result of
the commitment and dedication of our global team over several
years. This represents
back-to-back record annual net sales and
the third consecutive year of record domestic net
sales. While dealing with the added challenges of
COVID-19 protocols, our global operations continued
to meet growing customer demand. Net sales
increased in all but the Asia-Pacific segment which was more
negatively impacted by the COVID-19 pandemic. Most
notably, our PLP-USA operations
achieved annual net sales growth of nearly 13%,
thanks to the strength and significance of our U.S.
based manufacturing facilities which remained fully
operational throughout the pandemic. We anticipate
COVID-19 will continue to challenge our business as well as
the global economy well into 2021. While
disruptive, the pandemic created
challenges that were met by our teams which ultimately
made us stronger as a company. As always, we
are fully committed to providing our
customers with the high-quality products they require,
while staying focused on the safety and well-being of our
employees, customers, vendors and their families."
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, Austria, Brazil, Canada, China, Colombia, Czech
Republic, England,
France, Indonesia, Malaysia, Mexico, New
Zealand, Poland,
Russia, South Africa, Spain, Thailand and Vietnam.
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
uncertainty in business conditions and economy due to COVID-19
including the severity and duration of business disruption caused
by the pandemic, 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
2019 Annual Report on Form 10-K filed with the SEC on March 6, 2020 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
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
$ 118,506
|
|
$ 113,649
|
|
$ 466,449
|
|
$ 444,861
|
Cost of products
sold
|
81,883
|
|
77,469
|
|
312,436
|
|
304,266
|
|
|
GROSS
PROFIT
|
36,623
|
|
36,180
|
|
154,013
|
|
140,595
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
Selling
|
9,408
|
|
9,741
|
|
35,637
|
|
36,609
|
|
General and
administrative
|
16,432
|
|
13,320
|
|
56,335
|
|
51,806
|
|
Research and
engineering
|
4,676
|
|
4,378
|
|
17,625
|
|
17,187
|
|
Other operating
expense - net
|
2,239
|
|
919
|
|
4,209
|
|
2,366
|
|
|
|
32,755
|
|
28,358
|
|
113,806
|
|
107,968
|
|
|
|
|
|
|
|
|
|
|
|
|
OPERATING
INCOME
|
3,868
|
|
7,822
|
|
40,207
|
|
32,627
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest
income
|
33
|
|
170
|
|
259
|
|
783
|
|
Interest
expense
|
(464)
|
|
(529)
|
|
(2,396)
|
|
(2,217)
|
|
Other income -
net
|
726
|
|
(40)
|
|
2,501
|
|
265
|
|
|
|
295
|
|
(399)
|
|
364
|
|
(1,169)
|
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE
INCOME TAXES
|
4,163
|
|
7,423
|
|
40,571
|
|
31,458
|
|
|
|
|
|
|
|
|
|
|
Income
taxes
|
1,505
|
|
1,821
|
|
10,810
|
|
8,122
|
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
$
2,658
|
|
$
5,602
|
|
$
29,761
|
|
$
23,336
|
Less: Net income
attributable to noncontrolling interests
|
(11)
|
|
(22)
|
|
(42)
|
|
33
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS
|
$
2,669
|
|
$
5,624
|
|
$
29,803
|
|
$
23,303
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
Basic
|
$
0.54
|
|
$
1.12
|
|
$
6.05
|
|
$
4.63
|
|
|
Diluted
|
$
0.53
|
|
$
1.09
|
|
$
5.98
|
|
$
4.58
|
|
|
|
|
|
|
|
|
|
|
Cash dividends
declared per share
|
$
0.20
|
|
$
0.20
|
|
$
0.80
|
|
$
0.80
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - basic
|
4,899
|
|
5,005
|
|
4,923
|
|
5,031
|
|
|
|
|
|
|
|
|
|
|
Weighted-average
number of shares outstanding - diluted
|
5,027
|
|
5,147
|
|
4,984
|
|
5,087
|
PREFORMED LINE
PRODUCTS COMPANY
|
CONSOLIDATED
BALANCE SHEETS
|
|
|
|
|
|
|
|
|
|
|
December
31,
|
|
December
31,
|
(Thousands of
dollars, except share and per share data)
|
2020
|
|
2019
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
Cash and cash
equivalents
|
$
45,175
|
|
$
38,929
|
Accounts receivable,
less allowances of $3,464 ($3,849 in 2019)
|
92,686
|
|
83,517
|
Inventories -
net
|
97,537
|
|
95,718
|
Prepaids
|
|
17,660
|
|
9,522
|
Other current
assets
|
3,256
|
|
4,289
|
|
|
TOTAL CURRENT
ASSETS
|
256,314
|
|
231,975
|
|
|
|
|
|
|
Property, plant and
equipment - net
|
125,965
|
|
124,018
|
Other intangibles -
net
|
14,443
|
|
15,116
|
Goodwill
|
|
29,508
|
|
27,840
|
Deferred income
taxes
|
10,863
|
|
7,564
|
Other
assets
|
23,994
|
|
27,058
|
|
|
|
|
|
|
|
|
TOTAL
ASSETS
|
$
461,087
|
|
$
433,571
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
$
31,646
|
|
$
28,282
|
Notes payable to
banks
|
17,428
|
|
8,696
|
Current portion of
long-term debt
|
5,216
|
|
3,354
|
Accrued compensation
and amounts withheld from employees
|
14,736
|
|
11,817
|
Accrued expenses and
other liabilities
|
34,748
|
|
28,924
|
|
|
TOTAL CURRENT
LIABILITIES
|
103,774
|
|
81,073
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
33,333
|
|
53,722
|
Other noncurrent
liabilities and deferred income taxes
|
31,911
|
|
30,208
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
|
Shareholders'
equity:
|
|
|
|
|
Common shares - $2
par value, 15,000,000 shares authorized, 4,902,233 and
4,992,979 issued and outstanding, as of
December 31, 2020 and December 31, 2019, respectively
|
13,028
|
|
12,848
|
|
Common shares issued
to rabbi trust, 265,508 and 267,641 shares at December 31, 2020 and December 31, 2019,
respectively
|
(10,940)
|
|
(10,981)
|
|
Deferred Compensation
Liability
|
10,940
|
|
10,981
|
|
Paid-in
capital
|
43,134
|
|
38,854
|
|
Retained
earnings
|
379,035
|
|
353,292
|
|
Treasury shares, at
cost, 1,611,927 and 1,431,235 shares at December 31, 2020 and December 31, 2019,
respectively
|
(88,568)
|
|
(79,106)
|
|
Accumulated other
comprehensive loss
|
(54,551)
|
|
(57,353)
|
|
|
TOTAL PREFORMED
LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY
|
292,078
|
|
268,535
|
|
Noncontrolling
interest
|
(9)
|
|
33
|
|
|
TOTAL
SHAREHOLDERS' EQUITY
|
292,069
|
|
268,568
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
$
461,087
|
|
$
433,571
|
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SOURCE Preformed Line Products Company