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Preformed Line Products Announces Financial Results for the Fourth Quarter and Full Year 2008

Posted on: Thursday, 12 March 2009, 07:37 CDT

MAYFIELD VILLAGE, Ohio, March 12 /PRNewswire-FirstCall/ -- Preformed Line Products Company (Nasdaq: PLPC) today reported financial results for the fourth quarter and the full year 2008.

Net income for the quarter ended December 31, 2008 increased to $2,761,000, or $.52 per diluted share, compared to $1,851,000, or $.34 per diluted share, for the comparable period in 2007. Net sales in the fourth quarter of 2008 were $60,563,000 compared to $62,825,000 in the fourth quarter of 2007. Currency exchange rates had a negative impact on 2008 fourth quarter sales of $5,564,000 and on net income of $524,000.

Net income for the year ended December 31, 2008 increased 24% to $17,623,000, or $3.30 per diluted share, compared to $14,159,000, or $2.61 per diluted share in 2007. Net income in 2008 included a net gain of $756,000, or $.14 per diluted share, on the sale of Superior Modular Products Company, a former wholly owned domestic subsidiary. Net sales for 2008 increased 16% to $269,742,000 compared to $233,289,000 in 2007.

Currency exchange rates favorably impacted 2008 sales by $3,457,000, while the impact on 2008 net income was unfavorable by $224,000.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "I am pleased with the achievement of sales growth for the fifth consecutive year including three straight years of record sales. Net income has improved for three consecutive years and our 2008 net income is second only to the dot com boom year of 1998. These improvements resulted from product innovation, improvements in production efficiencies, customer focus and strategy integration implemented over the past several years. We have a strong balance sheet and are positioned to succeed in these uncertain economic times. I cannot predict what 2009 will bring, but I am confident we are prepared for the challenges that lie ahead."

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) Three month Twelve month In thousands, except per periods ended periods ended share data December 31, December 31, 2008 2007 2008 2007 (restated) Net sales $60,563 $62,825 $269,742 $233,289 Cost of products sold 41,441 43,645 182,475 155,388 GROSS PROFIT 19,122 19,180 87,267 77,901 Costs and expenses Selling 5,676 6,107 23,555 22,623 General and administrative 7,461 8,417 30,014 26,416 Research and engineering 2,325 2,007 8,870 7,192 Other operating expenses - net 235 197 840 338 Goodwill impairment - - - 199 15,697 16,728 63,279 56,768 OPERATING INCOME 3,425 2,452 23,988 21,133 Other income (expense) Interest income 191 283 846 1,088 Interest expense (129) (158) (544) (595) Other income (expense) 274 (283) 470 (305) 336 (158) 772 188 INCOME BEFORE INCOME TAXES, MINORITY INTERESTS AND DISCONTINUED OPERATIONS 3,761 2,294 24,760 21,321 Income taxes 1,114 663 7,718 7,501 INCOME BEFORE MINORITY INTERESTS AND DISCONTINUED OPERATIONS 2,647 1,631 17,042 13,820 Minority interests, net of tax (20) (30) (288) (54) INCOME FROM CONTINUING OPERATIONS 2,627 1,601 16,754 13,766 Income from discontinued operations, net of tax 134 250 869 393 NET INCOME $2,761 $1,851 $17,623 $14,159 Income per share from continuing operations - basic $0.50 $0.30 $3.17 $2.57 Income per share from discontinued operations - basic $0.03 $0.04 $0.17 $0.07 Total net income per share - basic $0.53 $0.34 $3.34 $2.64 Income per share from continuing operations - diluted $0.50 $0.29 $3.14 $2.54 Income per share from discontinued operations - diluted $0.02 $0.05 $0.16 $0.07 Total net income per share - diluted $0.52 $0.34 $3.30 $2.61 Cash dividends declared per share $0.20 $0.20 $0.80 $0.80 Weighted-average number of shares outstanding - basic 5,223 5,380 5,279 5,372 Weighted-average number of shares outstanding - diluted 5,306 5,439 5,339 5,416 PREFORMED LINE PRODUCTS COMPANY CONSOLIDATED BALANCE SHEETS (UNAUDITED) Thousands of dollars, December 31, December 31, except share data 2008 2007 ASSETS Cash and cash equivalents $19,869 $23,392 Accounts receivable, less allowances of $964 ($1,199 in 2007) 36,899 37,002 Inventories - net 48,412 43,788 Deferred income taxes 2,786 2,982 Prepaids and other 4,704 4,098 Current assets of discontinued operations - 12,188 TOTAL CURRENT ASSETS 112,670 123,450 Property and equipment - net 55,940 58,506 Patents and other intangibles - net 3,858 5,637 Goodwill 5,520 3,928 Deferred income taxes 6,943 3,744 Other assets 5,944 8,601 TOTAL ASSETS $190,875 $203,866 LIABILITIES AND SHAREHOLDERS' EQUITY Notes payable to banks $3,101 $4,076 Current portion of long- term debt 494 1,949 Trade accounts payable 14,632 15,178 Accrued compensation and amounts withheld from employees 6,606 6,995 Accrued expenses and other liabilities 10,415 12,254 Current liabilities of discontinued operations - 1,897 TOTAL CURRENT LIABILITIES 35,248 42,349 Long-term debt, less current portion 2,653 3,010 Other noncurrent liabilities and deferred income taxes 15,973 7,882 Minority interests 736 904 SHAREHOLDERS' EQUITY Common shares - $2 par value, 15,000,000 shares authorized, 5,223,830 and 5,380,956 outstanding, net of 551,059 and 378,333 treasury shares at par, respectively 10,448 10,762 Paid in capital 3,704 2,720 Retained earnings 146,624 140,339 Accumulated other comprehensive loss (24,511) (4,100) TOTAL SHAREHOLDERS' EQUITY 136,265 149,721 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $190,875 $203,866

SOURCE Preformed Line Products Company

Source: PR Newswire

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