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Preformed Line Products Announces Financial Results for the Quarter Ended March 31, 2013

May 3, 2013

MAYFIELD VILLAGE, Ohio, May 3, 2013 /PRNewswire/ — Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for the first quarter ended March 31, 2013.

Net income for the quarter ended March 31, 2013 was $4,965,000, or $.91 per diluted share, compared to $8,133,000, or $1.50 per diluted share, for the comparable period in 2012.

Net sales for the first quarter of 2013 were $98,689,000 compared to $108,846,000 in the first quarter of 2012.

Currency exchange rates had a negative impact on 2013 first quarter net sales and net income of $2.1 million and $.2 million, respectively.

Rob Ruhlman, Chairman and Chief Executive Officer, said, “Historically speaking, this was a relatively strong quarter. While we are disappointed, the results are certainly understandable given the ongoing uncertainty within our domestic economy, the weakness of the Eurozone and the depressed spending in the Asia Pacific region.”

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, telecommunication, cable operators, information (data communication), and other similar industries. Our primary products support, protect, connect, terminate, and secure cables and wires. We also provide solar hardware systems and mounting hardware for a variety of solar power applications.

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 Argentina, Australia, Brazil, Canada, China, England, Indonesia, Malaysia, 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 “Forward-Looking Statements” and “Risk Factors” in the Company’s 2012 Annual Report on Form 10-K filed with the SEC on March 15, 2013 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

                                                                                     (UNAUDITED)

                      In thousands, except per            Three month periods
                      share data                            ended March 31,
                                                         --------------------

                                                                                                                                      2013                                  2012
                                                                                                                                      ----                                  ----

                     Net sales                                              $98,689           $108,846

                     Cost of products sold                                   67,390             72,834
                                                                             ------

                                                   GROSS PROFIT                                                                     31,299                                36,012

                     Costs and expenses

                     Selling                                                  9,061              8,896

                      General and
                      administrative                                         11,480             12,007

                     Research and engineering                                 3,770              3,655

                      Other operating expense
                      (income)                                                  121               (651)
                                                                                ---               ----

                                                                                                                                    24,432                                23,907

                                                   OPERATING INCOME                                                                  6,867                                12,105

                     Other income (expense)

                     Interest income                                            116                137

                     Interest expense                                          (103)              (196)

                     Other income                                                37                145
                                                                                ---                ---

                                                                                                                                        50                                    86
                                                                                                                                       ---                                   ---

                                                   INCOME BEFORE INCOME TAXES                                                        6,917                                12,191

                     Income taxes                                             1,952              4,058
                                                                              -----

                                                   NET INCOME                                                                       $4,965                                $8,133
                                                                                                                                    ======                                ======

                     BASIC EARNINGS PER SHARE

                      Net Income attributable
                      to PLPC common
                      shareholders                                            $0.92                       $1.52
                                                                              =====                       =====

                     DILUTED EARNINGS PER SHARE

                      Net Income attributable
                      to PLPC common
                      shareholders                                            $0.91                       $1.50
                                                                              =====                       =====

                      Cash dividends declared per
                      share                                           $           -                       $0.20
                                                                      =============

                      Weighted-average number of
                      shares outstanding - basic                              5,377              5,334
                                                                              =====

                      Weighted-average number of
                      shares outstanding -
                      diluted                                                 5,457              5,438
                                                                              =====


                                                             PREFORMED LINE PRODUCTS COMPANY

                                                               CONSOLIDATED BALANCE SHEETS

                                                                       (UNAUDITED)

                                                                                      March 31,                               December 31,

    Thousands of dollars, except share and per share data                                           2013                                         2012
                                                                                                    ----                                         ----

    ASSETS

    Cash and cash equivalents                                                                    $27,024                                      $28,120

    Accounts receivable, less allowances of $1,865 ($2,039 in 2012)                               66,713                                       61,695

    Inventories - net                                                                             86,308                                       86,916

    Deferred income taxes                                                                          6,091                                        6,557

    Prepaids                                                                                      10,060                                        8,381

    Other current assets                                                                           2,987                                        2,432
                                                                                                   -----                                        -----

                      TOTAL CURRENT
                      ASSETS           199,183            194,101

    Property, plant and equipment - net                                                           96,943                                       93,326

    Other intangibles - net                                                                       13,710                                       14,038

    Goodwill                                                                                      15,570                                       15,537

    Deferred income taxes                                                                          6,782                                        6,069

    Other assets                                                                                  10,569                                        9,993
                                                                                                  ------                                        -----

                     TOTAL ASSETS     $342,757                    $333,064
                                      ========                    ========

    LIABILITIES AND SHAREHOLDERS' EQUITY

    Notes payable to banks                                                                           $97                                         $217

    Current portion of long-term debt                                                                184                                          251

    Trade accounts payable                                                                        24,212                                       21,822

    Accrued compensation and amounts withheld from employees                                      13,684                                       12,271

    Accrued expenses and other liabilities                                                        17,528                                       23,682
                                                                                                  ------                                       ------

                      TOTAL CURRENT
                      LIABILITIES       55,705             58,243

    Long-term debt, less current portion                                                          16,077                                        9,322

    Other noncurrent liabilities and deferred income taxes                                        24,136                                       24,430

    SHAREHOLDERS' EQUITY

    PLPC shareholders' equity:

                      Common shares -$2 par
                      value, 15,000,000
                      shares authorized,
                      5,376,254 and
                      5,377,937 issued and
                      outstanding, net of
                      691,472 and 689,472
                      treasury shares at
                      par, respectively, as
                      of March 31, 2013 and
                      December 31, 2012

                               10,753             10,756

                      Common shares issued
                      to Rabbi Trust,
                      183,929 and 184,036
                      shares            (6,517)            (6,522)

                      Deferred Compensation
                      Liability          6,517              6,522

                     Paid in capital    16,797             16,355

                     Retained earnings   232,456            227,622

                      Accumulated other
                      comprehensive loss  (13,167)           (13,664)

                      TOTAL SHAREHOLDERS'
                      EQUITY           246,839            241,069
                                       -------            -------

                      TOTAL LIABILITIES
                      AND SHAREHOLDERS'
                      EQUITY          $342,757                    $333,064
                                      ========                    ========

SOURCE Preformed Line Products Company


Source: PR Newswire