PR Newswire | Apr 29, 2021 04:16PM EDT

31, 2021

04/29 15:15 CDT

Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2021 MAYFIELD VILLAGE, Ohio, April 29, 2021

MAYFIELD VILLAGE, Ohio, April 29, 2021 /PRNewswire/ -- Preformed Line Products Company(NASDAQ: PLPC) today reported financial results for its first quarter ended March 31, 2021.

Net sales for the first quarter of 2021 were $117.6 million, an increase of 14%, compared to $102.9 million in the first quarter of 2020. Currency translation rates had a favorable impact on 2021 first quarter net sales of $1.8 million, or 2%.

The Company posted net income for the first quarter of 2021 of $7.2 million, or $1.45 per diluted share, compared to $3.7 million, or $.74 per diluted share, in the first quarter of 2020. Currency translation rates had a favorable effect on net income of less than $.1 million.

Rob Ruhlman, Chairman and Chief Executive Officer, said, "We are very pleased with our net sales growth and earnings generation for Q1 2021. All regions reported an increase in net sales versus Q1 2020 as well as improvement in profitability. PLP USA continues to lead the increase driven by growth in the communications product family as well as the significance of our U.S. based manufacturing and distribution facilities. Additional investments will be made within our PLP USA operations to support this growth both today and into the future. Our international operations continue to expand their capabilities and product offerings, resulting in year over year improvement in both net sales and earnings. Our geographic diversification has helped de-risk our business model during these challenging economic times. While we have seen reductions in revenue in certain operations that rely more heavily on government sponsored infrastructure projects that have been delayed due to COVID-19, our strength in other markets has more than offset the shortfalls to allow for both top line and bottom-line growth. While the extent to which COVID-19 will impact our future operations is unknown, we will continue to focus on the safety and well-being of our employees, their families, our customers and our valued suppliers while continuing to provide the high-quality products and services our customers expect."

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, France, Great Britain, 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 2020 Annual Report on Form 10-K filed with the SEC on March 5, 2021 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 March 31

2021 2020

Net sales $ 117,553 $ 102,852

Cost of products sold 77,361 69,942

GROSS PROFIT 40,192 32,910

Costs and expenses

Selling 9,601 8,905

General and administrative 14,394 13,434

Research and engineering 4,611 4,296

Other operating expense - net 818 1,122

29,424 27,757

OPERATING INCOME 10,768 5,153

Other income (expense)

Interest income 21 111

Interest expense (463) (709)

Other income - net 228 549

(214) (49)

INCOME BEFORE INCOME TAXES 10,554 5,104

Income taxes 3,377 1,451

NET INCOME $ 7,177 $ 3,653

Less: Net income attributable to noncontrolling interests 2 45

NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS $ 7,179 $ 3,698 COMPANY SHAREHOLDERS

EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE

TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:

Basic $ 1.46 $ 0.74

Diluted $ 1.45 $ 0.74

Cash dividends declared per share $ 0.20 $ 0.20

Weighted-average number of shares outstanding - basic 4,917 5,008

Weighted-average number of shares outstanding - diluted 4,936 5,017

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

March 31, December 31,

(Thousands of dollars, except share and per share data) 2021 2020

ASSETS

Cash and cash equivalents $ 34,685 $ 45,175

Accounts receivable, less allowances of $3,436 ($3,464 in 2020) 93,654 92,686

Inventories - net 99,694 97,537

Prepaids 8,722 17,660

Other current assets 3,283 3,256

TOTAL CURRENT ASSETS 240,038 256,314

Property, plant and equipment - net 145,400 125,965

Other intangibles - net 13,811 14,443

Goodwill 28,844 29,508

Deferred income taxes 5,459 10,863

Other assets 23,451 23,994

TOTAL ASSETS $ 457,003 $ 461,087

LIABILITIES AND SHAREHOLDERS' EQUITY

Trade accounts payable $ 33,945 $ 31,646

Notes payable to banks 12,853 17,428

Current portion of long-term debt 9,033 5,216

Accrued compensation and amounts withheld from employees 16,823 14,736

Accrued expenses and other liabilities 25,019 34,748

TOTAL CURRENT LIABILITIES 97,673 103,774

Long-term debt, less current portion 37,394 33,333

Other noncurrent liabilities and deferred income taxes 30,798 31,911

SHAREHOLDERS' EQUITY

Shareholders' equity:

Common shares - $2 par value, 15,000,000 shares authorized, 4,912,959 and

4,902,233 issued and outstanding, as of March 31, 2021 and December 31, 13,155 13,028 2020, respectively

Common shares issued to rabbi trust, 261,781 and 265,508 shares at

March 31, 2021 and December 31, 2020, respectively (10,820) (10,940)

Deferred Compensation Liability 10,820 10,940

Paid-in capital 44,322 43,134

Retained earnings 385,180 379,035

Treasury shares, at cost, 1,664,517 and 1,611,927 shares at

March 31, 2021 and December 31, 2020, respectively (92,246) (88,568)

Accumulated other comprehensive loss (59,266) (54,551)

TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY 291,145 292,078

Noncontrolling interest (7) (9)

TOTAL SHAREHOLDERS' EQUITY 291,138 292,069

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 457,003 $ 461,087

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SOURCE Preformed Line Products