Preformed Line Products Co 8-K, filed Apr 29, 2021
Preformed Line Products Co (PLPC)
About this 8-K
Preformed Line Products Co filed this 8-K on April 29, 2021.
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
CURRENT REPORT
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported):
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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):
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Securities registered pursuant to Section 12(b) of the Act: |
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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. ☐
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ITEM 2.02. |
RESULTS OF OPERATIONS AND FINANCIAL CONDITION |
On April 29, 2021, Preformed Line Products Company issued a press release announcing earnings for the three months ended March 31, 2021. 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.
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ITEM 9.01 |
FINANCIAL STATEMENTS AND EXHIBITS |
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(d) |
Exhibits |
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99.1 |
Press release dated April 29, 2021, announcing earnings for the three months ended March 31, 2021 |
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104 |
Cover Page Interactive Data File (embedded within the Inline XBRL document). |
SIGNATURES
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.
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PREFORMED LINE PRODUCTS COMPANY |
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/s/ Andrew S. Klaus |
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Andrew S. Klaus, CFO |
DATED: April 29, 2021
Exhibit 99.1
Preformed Line Products Announces Financial Results For The Quarter Ended March 31, 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 | ||||||||
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| (In thousands, except per share data) |
| Three Months Ended March 31 |
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| 2021 |
| 2020 |
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| Net sales |
| $ 117,553 |
| $ 102,852 |
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| Cost of products sold |
| 77,361 |
| 69,942 |
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| GROSS PROFIT |
| 40,192 |
| 32,910 |
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| Costs and expenses |
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| Selling |
| 9,601 |
| 8,905 |
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| General and administrative |
| 14,394 |
| 13,434 |
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| Research and engineering |
| 4,611 |
| 4,296 |
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| Other operating expense - net |
| 818 |
| 1,122 |
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| 29,424 |
| 27,757 |
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| OPERATING INCOME |
| 10,768 |
| 5,153 |
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| Other income (expense) |
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| Interest income |
| 21 |
| 111 |
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| Interest expense |
| (463) |
| (709) |
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| Other income - net |
| 228 |
| 549 |
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| (214) |
| (49) |
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| INCOME BEFORE INCOME TAXES |
| 10,554 |
| 5,104 |
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| Income taxes |
| 3,377 |
| 1,451 |
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| NET INCOME |
| $ 7,177 |
| $ 3,653 |
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| Less: Net income attributable to noncontrolling interests |
| 2 |
| 45 |
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| NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS
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| $ 7,179 |
| $ 3,698 |
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| EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE |
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| TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS: |
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| Basic |
| $ 1.46 |
| $ 0.74 |
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| Diluted |
| $ 1.45 |
| $ 0.74 |
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| Cash dividends declared per share |
| $ 0.20 |
| $ 0.20 |
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| Weighted-average number of shares outstanding - basic |
| 4,917 |
| 5,008 |
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| Weighted-average number of shares outstanding - diluted |
| 4,936 |
| 5,017 |
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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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| 2021 |
| 2020 | ||||
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ASSETS |
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Cash and cash equivalents |
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| $ 34,685 |
| $ 45,175 | |||
Accounts receivable, less allowances of $3,436 ($3,464 in 2020) |
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| 93,654 |
| 92,686 | ||||
Inventories - net |
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| 99,694 |
| 97,537 | ||
Prepaids |
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| 8,722 |
| 17,660 | |
Other current assets |
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| 3,283 |
| 3,256 | ||
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| TOTAL CURRENT ASSETS |
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| 240,038 |
| 256,314 | |
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Property, plant and equipment - net |
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| 145,400 |
| 125,965 | |||
Other intangibles - net |
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| 13,811 |
| 14,443 | ||
Goodwill |
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| 28,844 |
| 29,508 | |
Deferred income taxes |
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| 5,459 |
| 10,863 | ||
Other assets |
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| 23,451 |
| 23,994 | ||
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| TOTAL ASSETS |
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| $ 457,003 |
| $ 461,087 | |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Trade accounts payable |
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| $ 33,945 |
| $ 31,646 | ||
Notes payable to banks |
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| 12,853 |
| 17,428 | ||
Current portion of long-term debt |
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| 9,033 |
| 5,216 | |||
Accrued compensation and amounts withheld from employees |
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| 16,823 |
| 14,736 | ||||
Accrued expenses and other liabilities |
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| 25,019 |
| 34,748 | |||
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| TOTAL CURRENT LIABILITIES |
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| 97,673 |
| 103,774 | |
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Long-term debt, less current portion |
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| 37,394 |
| 33,333 | |||
Other noncurrent liabilities and deferred income taxes |
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| 30,798 |
| 31,911 | ||||
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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, 4,912,959 and |
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| 4,902,233 issued and outstanding, as of March 31, 2021 and December 31, 2020, respectively | 13,155 |
| 13,028 | ||||||
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| Common shares issued to rabbi trust, 261,781 and 265,508 shares at |
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| March 31, 2021 and December 31, 2020, respectively |
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| (10,820) |
| (10,940) | |||
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| Deferred Compensation Liability |
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| 10,820 |
| 10,940 | ||
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| Paid-in capital |
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| 44,322 |
| 43,134 | |
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| Retained earnings |
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| 385,180 |
| 379,035 | |
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| Treasury shares, at cost, 1,664,517 and 1,611,927 shares at |
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| March 31, 2021 and December 31, 2020, respectively |
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| (92,246) |
| (88,568) | |||
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| Accumulated other comprehensive loss |
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| (59,266) |
| (54,551) | ||
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| TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY | 291,145 |
| 292,078 | |||||
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| Noncontrolling interest |
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| (7) |
| (9) | ||
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| TOTAL SHAREHOLDERS' EQUITY |
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| 291,138 |
| 292,069 | ||
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| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
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| $ 457,003 |
| $ 461,087 | |||
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CONTACT: Andrew S. Klaus, Preformed Line Products, (440) 473-9246