PR Newswire | Mar 5, 2021 09:56AM EST

2020

03/05 08:55 CST

Preformed Line Products Announces Results For The Fourth Quarter And Full Year 2020 MAYFIELD VILLAGE, Ohio, March 5, 2021

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 $ 2,669 $ 5,624 $ 29,803 $ 23,303 COMPANY SHAREHOLDERS

EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TOPREFORMED 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, 13,028 12,848 2020 and December 31, 2019, respectively

Common shares issued to rabbi trust, 265,508 and 267,641 shares at (10,940) (10,981) December 31, 2020 and December 31, 2019, respectively

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 (88,568) (79,106) at December 31, 2020 and December 31, 2019, respectively

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