Preformed Line Products Co 8-K, filed May 1, 2020
Preformed Line Products Co (PLPC)
About this 8-K
Preformed Line Products Co filed this 8-K on May 1, 2020.
Items reported
- Item 2.02: Financial results
- Item 9.01: Financial statements and exhibits
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 2020
Preformed Line Products Company
(Exact name of Registrant as Specified in Its Charter)
|
Ohio |
0-31164 |
34-0676895 |
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(State or other jurisdiction of incorporation |
(Commission File Number) |
(IRS Employer Identification No.) |
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660 Beta Drive Mayfield Village, Ohio |
44143 |
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(Address of principal executive offices) |
(Zip Code) |
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Securities registered pursuant to Section 12(b) of the Act: |
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Common |
PLPC |
NASDAQ |
|
(Title of each class) |
(Ticker symbol) |
(Name of each exchange on which registered) |
Registrant’s Telephone Number, Including Area Code: (440) 461-5200
Not Applicable
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instructions A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
ITEM 2.02. RESULTS OF OPERATIONS AND FINANCIAL CONDITION
On May 1, 2020, Preformed Line Products Company issued a press release announcing earnings for the three months ended March 31, 2020. A copy of the press release is attached hereto as Exhibit 99.1. This information shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, except, as shall be expressly set forth by specific reference in such a filing.
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
(d) Exhibits
99.1 Press release dated May 1, 2020, announcing earnings for the three months ended March 31, 2020
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
PREFORMED LINE PRODUCTS COMPANY
/s/ Andrew S. Klaus
Andrew S. Klaus, CFO
DATED: May 1, 2020
Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 2020
MAYFIELD VILLAGE, Ohio, May 1, 2020 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its first quarter ended March 31, 2020.
Net sales for the first quarter of 2020 were $102.9 million, an increase of 6%, compared to $97.2 million in the first quarter of 2019. Currency translation rates had an unfavorable impact on 2020 first quarter net sales of $4.1 million, or 4%.
The Company posted net income for the first quarter of 2020 of $3.7 million, or $.74 per diluted share, compared to $1.8 million, or $.36 per diluted share, in the first quarter of 2019. Currency translation rates had an unfavorable effect on net income of $.1 million.
Rob Ruhlman, Chairman and Chief Executive Officer, said, "We entered 2020 in a position of strength coming off a second consecutive year of record domestic sales. The spread of COVID-19 during the second half of the first quarter created challenges for us in countries that were the earliest to be impacted by the pandemic, namely our Asia-Pacific business segment. We quickly reacted by first protecting the health and safety of our employees while we maintained critical operations to protect our customers and suppliers. Amidst the COVID-19 pandemic, except for Asia-Pacific, we were able to deliver profitable sales growth in all other business segments versus the same period last year. While the extent to which the pandemic will impact the future is not yet known, we will continue to focus on the safety and well-being of our employees, our customers and our valued suppliers."
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 | |||||||
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| (In thousands, except per share data) |
| Three Months Ended March 31 | ||||
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| 2020 |
| 2019 |
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| Net sales |
| $ 102,852 |
| $ 97,153 | ||
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| Cost of products sold |
| 69,942 |
| 69,888 | ||
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| GROSS PROFIT |
| 32,910 |
| 27,265 |
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| Costs and expenses |
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| Selling |
| 8,905 |
| 8,413 | |
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| General and administrative |
| 13,434 |
| 12,318 | |
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| Research and engineering |
| 4,296 |
| 4,140 | |
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| Other operating expense - net |
| 1,122 |
| 348 | |
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| 27,757 |
| 25,219 |
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| OPERATING INCOME |
| 5,153 |
| 2,046 |
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| Other income (expense) |
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| Interest income |
| 111 |
| 179 | |
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| Interest expense |
| (709) |
| (368) | |
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| Other income - net |
| 549 |
| 71 | |
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| (49) |
| (118) |
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| INCOME BEFORE INCOME TAXES |
| 5,104 |
| 1,928 |
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| Income taxes |
| 1,451 |
| 104 | ||
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| NET INCOME |
| $ 3,653 |
| $ 1,824 |
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| Less: Net income attributable to noncontrolling interests |
| 45 |
| - | ||
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| NET INCOME ATTRIBUTABLE TO
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| $ 3,698 |
| $ 1,824 |
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| BASIC EARNINGS PER SHARE |
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| Net Income Attributable to Preformed Line Products
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| $ 0.74 |
| $ 0.36 |
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| DILUTED EARNINGS PER SHARE |
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| Net Income Attributable to Preformed Line Products
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| $ 0.74 |
| $ 0.36 |
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| Cash dividends declared per share |
| $ 0.20 |
| $ 0.20 | ||
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| Weighted-average number of shares outstanding - basic |
| 5,008 |
| 5,045 | ||
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| Weighted-average number of shares outstanding - diluted |
| 5,017 |
| 5,054 | ||
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PREFORMED LINE PRODUCTS COMPANY | ||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||
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| March 31, |
| December 31, |
(Thousands of dollars, except share and per share data) |
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| 2020 |
| 2019 | ||||
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ASSETS |
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Cash and cash equivalents |
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| $ 34,117 |
| $ 38,929 | |||
Accounts receivable, less allowances of $3,326 ($3,849 in 2019) |
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| 83,441 |
| 83,517 | ||||
Inventories - net |
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| 92,513 |
| 95,718 | ||
Prepaids |
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| 9,753 |
| 9,522 | |
Other current assets |
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| 2,659 |
| 4,289 | ||
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| TOTAL CURRENT ASSETS |
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| 222,483 |
| 231,975 | |
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Property, plant and equipment - net |
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| 119,356 |
| 124,018 | |||
Other intangibles - net |
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| 13,480 |
| 15,116 | ||
Goodwill |
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| 25,814 |
| 27,840 | |
Deferred income taxes |
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| 6,094 |
| 7,564 | ||
Other assets |
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| 26,030 |
| 27,058 | ||
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| TOTAL ASSETS |
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| $ 413,257 |
| $ 433,571 | |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Trade accounts payable |
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| $ 28,534 |
| $ 28,282 | ||
Notes payable to banks |
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| 10,512 |
| 8,696 | ||
Current portion of long-term debt |
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| 3,309 |
| 3,354 | |||
Accrued compensation and amounts withheld from employees |
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| 11,220 |
| 11,817 | ||||
Accrued expenses and other liabilities |
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| 20,876 |
| 28,924 | |||
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| TOTAL CURRENT LIABILITIES |
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| 74,451 |
| 81,073 | |
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Long-term debt, less current portion |
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| 58,724 |
| 53,722 | |||
Other noncurrent liabilities and deferred income taxes |
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| 28,582 |
| 30,208 | ||||
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SHAREHOLDERS' EQUITY |
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Shareholders' equity: |
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| Common shares - $2 par value, 15,000,000 shares authorized, 4,995,114 and |
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| 4,992,979 issued and outstanding, as of March 31, 2020 and December 31, 2019 | 13,003 |
| 12,848 | ||||||
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| Common shares issued to rabbi trust, 264,283 and 267,431 shares at |
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| March 31, 2020 and December 31, 2019, respectively |
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| (10,880) |
| (10,981) | |||
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| Deferred Compensation Liability |
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| 10,880 |
| 10,981 | ||
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| Paid-in capital |
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| 39,747 |
| 38,854 | |
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| Retained earnings |
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| 355,984 |
| 353,292 | |
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| Treasury shares, at cost, 1,506,481 and 1,431,235 shares at |
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| March 31, 2020 and December 31, 2019, respectively |
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| (83,086) |
| (79,106) | |||
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| Accumulated other comprehensive loss |
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| (74,136) |
| (57,353) | ||
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| TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY | 251,512 |
| 268,535 | |||||
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| Noncontrolling interest |
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| (12) |
| 33 | ||
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| TOTAL SHAREHOLDERS' EQUITY |
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| 251,500 |
| 268,568 | ||
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| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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| $ 413,257 |
| $ 433,571 | |||
CONTACT: Andrew S. Klaus, Preformed Line Products, (440) 473-9246