Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2021

Rhea-AI Summary

Preformed Line Products Company (NASDAQ: PLPC) reported a 14% increase in net sales for Q1 2021, reaching $117.6 million, compared to $102.9 million in Q1 2020. Net income rose to $7.2 million, or $1.45 per diluted share, up from $3.7 million, or $0.74 per diluted share, in the previous year. Growth was driven by the communications product family and U.S. based manufacturing. Despite some revenue declines in sectors dependent on government infrastructure projects delayed by COVID-19, overall geographic diversification contributed to profitability.

Positive

• 14% increase in net sales to $117.6 million in Q1 2021.
• Net income rose to $7.2 million, or $1.45 per diluted share.
• All regions reported net sales growth compared to Q1 2020.
• Ongoing investment in PLP USA operations to support growth.

Negative

• Revenue reductions in sectors reliant on government infrastructure projects delayed due to COVID-19.

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 COMPANY SHAREHOLDERS		$           7,179		$      3,698
	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, 2020, respectively							13,155		13,028
	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

FAQ

What were PLPC's net sales for Q1 2021?

Preformed Line Products Company reported net sales of $117.6 million for Q1 2021.

What is PLPC's net income for Q1 2021?

PLPC's net income for Q1 2021 was $7.2 million, or $1.45 per diluted share.

How did COVID-19 impact PLPC's business in Q1 2021?

COVID-19 caused delays in government infrastructure projects, affecting revenue in certain operations.

What factors contributed to PLPC's sales growth in Q1 2021?

Sales growth was driven by the communications product family and investments in U.S. manufacturing.