PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER AND FIRST H...| MENAFN.COM

Tuesday, 16 August 2022 07:00 GMT

PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER AND FIRST HALF 2022 FINANCIAL RESULTS'


(MENAFN- PR Newswire)

CLEVELAND, Aug. 4, 2022 /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC ) today reported financial results for its second quarter ended June 30, 2022.

Q2 2022 Highlights:

  • Record quarterly net sales and profit
  • Net sales increased 23% from comparable 2021 period
  • Diluted EPS of $2.77, an increase of 54% from comparable 2021 period

Net sales for the second quarter of 2022 were $163.5 million, an increase of 23%, compared to $133.0 million in the second quarter of 2021. Currency translation rates had an unfavorable impact on 2022 second quarter net sales of $5.5 million, or 3.4%.

The Company posted net income for the second quarter of 2022 of $13.7 million, or $2.77 per diluted share, compared to $8.9 million, or $1.80 per diluted share, in the second quarter of 2021. Second quarter 2022 net income benefited from the significant increase in net sales while leveraging fixed costs and gross margin gains resulting from the previously announced price increases which are beginning to offset the impact of inflation on commodity prices and freight. Currency translation rates had a favorable effect on net income of $0.1 million.

Net sales increased 20% to $301.7 million for the first six months of 2022 compared to $250.6 million for the first six months of 2021. Currency translation rates had an unfavorable impact on net sales of $8.0 million for the six months ended June 30, 2022.

Net income for the six months ended June 30, 2022 was $26.0 million, or $5.25 per diluted share, compared to $16.0 million or $3.25 per diluted share, for the comparable period in 2021. YTD June 30, 2022 net income benefited from the 20% YTD increase in net sales with related fixed cost leverage as well as the realization of price increases which are beginning to offset the impact of inflation on commodities and freight. Also benefiting the YTD net income was the $4.4 million non-taxable gain from life insurance benefits. Currency translation rates had an unfavorable effect on net income of $0.1 million.

Rob Ruhlman, Chairman and Chief Executive Officer, said, 'We continue to record impressive gains in both net sales and earnings, with the second quarter of 2022 being a new record for both. Excluding the impact of currency translation, all regions reported an increase in net sales versus the second quarter of 2021 and on a YTD basis all regions except for Asia-Pacific reported increased net sales. Our sales growth was made possible by strong volume growth in both the energy and communications product families, incremental sales from our newest acquisitions and selling price adjustments required to offset the significant levels of inflation experienced last year and so far this year. We continuously monitor the impact of inflationary increases on our raw material inputs and freight expense. Additional selling price adjustments may be required to offset further inflationary increases. Customer satisfaction remains our primary goal – accomplished by providing high-quality products and services that meet or exceed expectations.'

FORWARD-LOOKING STATEMENTS

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, the impact of legal or regulatory matters or global economic conditions (such as the impact of inflation, social unrest, acts of war, military conflict (including the ongoing conflict between Russia and Ukraine), international hostilities, terrorism and changes in diplomatic and trade relationships) on profitability and future growth opportunities; the Company's ability to identify, complete, obtain funding for and integrate acquisitions for profitable growth; 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 2021 Annual Report on Form 10-K filed with the SEC on March 4, 2022 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 . The Company assumes no obligation to update or supplement forward-looking statements that become untrue because of subsequent events.

ABOUT PLP

PLP protects the world's most critical connections by creating stronger and more reliable networks. The company's precision-engineered solutions are trusted by energy and communications providers worldwide to perform better and last longer. With locations in over 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.

PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

June 30,

December 31,

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

2022

2021

ASSETS

Cash, cash equivalents and restricted cash

$ 30,103

$ 36,406

Accounts receivable, less allowances of $4,931 ($3,744 in 2021)

123,122

98,203

Inventories, net

127,408

114,507

Prepaid expenses

20,855

19,778

Other current assets

5,561

3,217

TOTAL CURRENT ASSETS

307,049

272,111

Property, plant and equipment, net

157,444

149,774

Goodwill

34,792

28,194

Other intangible assets, net

15,104

12,039

Deferred income taxes 

5,551

3,839

Other assets

17,116

23,061

TOTAL ASSETS

$ 537,056

$ 489,018

LIABILITIES AND SHAREHOLDERS' EQUITY

Trade accounts payable

$ 49,217

$ 42,376

Notes payable to banks

16,856

16,423

Current portion of long-term debt

3,217

3,116

Accrued compensation and other benefits

24,313

21,703

Accrued expenses and other liabilities

26,067

21,917

TOTAL CURRENT LIABILITIES

119,670

105,535

Long-term debt, less current portion

57,502

40,048

Other noncurrent liabilities and deferred income taxes

27,197

27,335

SHAREHOLDERS' EQUITY

Shareholders' equity:

Common shares - $2 par value, 15,000,000 shares authorized, 4,940,578 and

4,907,143 issued and outstanding, as of June 30, 2022 and December 31, 2021, respectively

13,303

13,185

Common shares issued to rabbi trust, 244,969 and 243,138 shares at

June 30, 2022 and December 31, 2021, respectively

(10,231)

(10,102)

Deferred compensation liability

10,231

10,102

Paid-in capital

49,918

47,814

Retained earnings

434,718

410,673

Treasury shares, at cost, 1,714,822 and 1,685,387 shares at 

June 30, 2022 and December 31, 2021, respectively

(95,631)

(93,836)

Accumulated other comprehensive loss

(69,629)

(61,719)

TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY

332,679

316,117

Noncontrolling interest

8

(17)

TOTAL SHAREHOLDERS' EQUITY

332,687

316,100

TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY

$ 537,056

$ 489,018

PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED OPERATIONS

(Thousands of dollars, except earnings per share data)

Three Months Ended June 30

Six Months Ended June 30

2022

2021

2022

2021

Net sales

$ 163,471

$ 133,038

$ 301,694

$ 250,591

Cost of products sold

110,765

89,999

207,037

167,360

GROSS PROFIT

52,706

43,039

94,657

83,231

Costs and expenses

Selling

11,668

10,099

22,328

19,701

General and administrative

16,948

13,770

33,256

28,164

Research and engineering

5,363

4,763

10,137

9,374

Other operating expense, net

778

1,669

1,536

2,486

34,757

30,301

67,257

59,725

OPERATING INCOME

17,949

12,738

27,400

23,506

Other income (expense)

Interest income

104

26

216

47

Interest expense

(784)

(457)

(1,310)

(920)

Other income, net

495

270

5,599

498

(185)

(161)

4,505

(375)

INCOME BEFORE INCOME TAXES

17,764

12,577

31,905

23,131

Income tax expense

4,043

3,686

5,883

7,063

NET INCOME

$ 13,721

$ 8,891

$ 26,022

$ 16,068

Net income attributable to noncontrolling interests

(9)

(22)

(25)

(20)

NET INCOME ATTRIBUTABLE TO PREFORMED

LINE PRODUCTS COMPANY SHAREHOLDERS

$ 13,712

$ 8,869

$ 25,997

$ 16,048

AVERAGE NUMBER OF SHARES OF COMMON STOCK

OUTSTANDING:

Basic

4,940

4,912

4,934

4,914

Diluted

4,955

4,930

4,954

4,935

EARNINGS PER SHARE OF COMMON STOCK

ATTRIBUTABLE TO PREFORMED LINE PRODUCTS

COMPANY SHAREHOLDERS:

Basic

$ 2.78

$ 1.81

$ 5.27

$ 3.27

Diluted

$ 2.77

$ 1.80

$ 5.25

$ 3.25

Cash dividends declared per share

$ 0.20

$ 0.20

$ 0.40

$ 0.40

SOURCE Preformed Line Products

MENAFN04082022003732001241ID1104648946


Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.