CLEVELAND, March 1,
2023 /PRNewswire/ -- Preformed Line Products
Company (NASDAQ: PLPC) today reported financial results for
its fourth quarter and full year ended December 31, 2022.
Q4 2022 Highlights:
- Third consecutive record of quarterly net sales; increased 29%
from comparable 2021 period
- Record quarterly net income of $16.5
million
- Diluted EPS of $3.28, an increase
of 83% from Q4 2021, a new quarterly record
Full Year 2022 Highlights:
- Fourth consecutive record of annual net sales; increased 23%
from comparable 2021 period
- Record net income of $54.4
million
- Diluted EPS of $10.88, an
increase of 51% from 2021, a new annual record
Net sales in the fourth quarter of 2022 were $169.9 million compared to $131.4 million in the fourth quarter of 2021, a
29.3% increase and a new record for quarterly shipments. Foreign
currency translation reduced fourth quarter 2022 net sales by
$8.0 million.
Net income for the quarter ended December
31, 2022 was $16.5 million, or
$3.28 per diluted share, compared to
$9.0 million, or $1.79 per diluted share, for the comparable
period in 2021. The fourth quarter of 2022 net income benefited
from the increased gross profit from the incremental sales, selling
price increases and incremental sales from recent
acquisitions. Gross profit as a percentage of net sales was
36.6% for the fourth quarter of 2022, an increase of 630 bps versus
the same quarter in 2021.
Net sales for the full year 2022 were $637.0 million, compared to $517.4 million in 2021. This is the fourth
consecutive year of record net sales and represents a 23.1%
increase versus prior year. Foreign currency translation reduced
full year 2022 net sales by $24.2
million.
Net income for the year ended December
31, 2022 was $54.4 million, or
$10.88 per diluted share, compared to
$35.7 million, or $7.19 per diluted share in 2021. Net income for
the full year 2022 was favorably impacted by the increase in margin
on incremental sales as well as the full year benefit of price
increases which helped offset inflationary raw material and freight
cost increases. Gross profit as a percentage of net sales was
33.8% for 2022, an increase of 170 bps versus 2021.
Rob Ruhlman, Chairman and Chief
Executive Officer, said, "The fourth consecutive year for record
net sales and record earnings per share in 2022 continues to be the
result of the resolve, commitment and dedication of our global
team. This also represents the fifth consecutive year of record
domestic net sales with PLP-USA
posting a year-over-year increase of 32.1%. The Americas and
EMEA regions both enjoyed net sales growth while the Asia-Pacific region showed a slight reduction
in net sales in 2022 with a decline in the pace of year-over-year
reductions from the two preceding years. The price increases
we announced over the last two years have been effective at
offsetting the significant inflation for core raw material
commodities and transportation costs. We continue to invest capital
in our global facilities to increase capacity and we continue to
seek out the right opportunities for inorganic growth completing
four acquisitions in the last five quarters. We are fully
committed to providing our customers with the high quality products
and service they have come to expect from our dedicated
workforce."
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 global business conditions and the economy due to
factors such as inflation, rising interest rates, labor
disruptions, military conflict, political instability, exchange
rates and lingering effects of COVID-19, the strength of demand and
availability of funding 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, opportunities for business growth through acquisitions
and the ability to successfully integrate any acquired businesses,
changes in regulations and tax rates, security breaches, litigation
and claims 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 http://www.sec.gov. 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
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
December 31,
|
(Thousands of
dollars, except share and per share data)
|
|
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
ASSETS
|
|
|
|
|
|
|
|
|
|
Cash, cash equivalents
and restricted cash
|
|
|
|
|
$
37,239
|
|
$
36,406
|
Accounts receivable,
less allowances of $5,600 ($3,744 in 2021)
|
|
|
|
125,261
|
|
98,203
|
Inventories,
net
|
|
|
|
|
|
147,458
|
|
114,507
|
Prepaid
expenses
|
|
|
|
|
|
13,283
|
|
19,778
|
Other current
assets
|
|
|
|
|
|
4,929
|
|
3,217
|
|
|
TOTAL CURRENT
ASSETS
|
|
|
|
|
328,170
|
|
272,111
|
|
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment, net
|
|
|
|
|
175,011
|
|
149,774
|
Goodwill
|
|
|
|
|
|
|
28,004
|
|
28,194
|
Other intangible
assets, net
|
|
|
|
|
14,082
|
|
12,039
|
Deferred income
taxes
|
|
|
|
|
|
5,320
|
|
3,839
|
Other assets
|
|
|
|
|
|
17,892
|
|
23,061
|
|
|
TOTAL
ASSETS
|
|
|
|
|
$
568,479
|
|
$
489,018
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Trade accounts
payable
|
|
|
|
|
|
$
46,839
|
|
$
42,376
|
Notes payable to
banks
|
|
|
|
|
|
18,098
|
|
16,423
|
Current portion of
long-term debt
|
|
|
|
|
3,018
|
|
3,116
|
Accrued compensation
and other benefits
|
|
|
|
|
24,356
|
|
21,703
|
Accrued expenses and
other liabilities
|
|
|
|
|
23,024
|
|
21,917
|
|
|
TOTAL CURRENT
LIABILITIES
|
|
|
|
|
115,335
|
|
105,535
|
|
|
|
|
|
|
|
|
|
|
|
Long-term debt, less
current portion
|
|
|
|
|
68,420
|
|
40,048
|
Other noncurrent
liabilities and deferred income taxes
|
|
|
|
26,100
|
|
27,335
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS'
EQUITY
|
|
|
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|
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|
Shareholders'
equity:
|
|
|
|
|
|
|
|
|
|
Common shares - $2 par
value, 15,000,000 shares authorized, 4,917,020 and
|
|
|
|
|
|
4,907,143 issued and outstanding, as of December 31, 2022 and
December 31, 2021, respectively
|
13,351
|
|
13,185
|
|
Common shares issued to
rabbi trust, 245,386 and 243,138 shares at
|
|
|
|
|
|
|
December 31, 2022 and
December 31, 2021, respectively
|
|
|
|
(10,261)
|
|
(10,102)
|
|
Deferred compensation
liability
|
|
|
|
|
10,261
|
|
10,102
|
|
Paid-in
capital
|
|
|
|
|
|
53,646
|
|
47,814
|
|
Retained
earnings
|
|
|
|
|
|
460,930
|
|
410,673
|
|
Treasury shares, at
cost, 1,758,901 and 1,685,387 shares at
|
|
|
|
|
|
|
|
December 31, 2022 and
December 31, 2021, respectively
|
|
|
|
(99,303)
|
|
(93,836)
|
|
Accumulated other
comprehensive loss
|
|
|
|
|
(69,987)
|
|
(61,719)
|
|
|
TOTAL PREFORMED LINE
PRODUCTS COMPANY SHAREHOLDERS' EQUITY
|
358,637
|
|
316,117
|
|
Noncontrolling
interest
|
|
|
|
|
(13)
|
|
(17)
|
|
|
TOTAL SHAREHOLDERS'
EQUITY
|
|
|
|
358,624
|
|
316,100
|
|
|
TOTAL LIABILITIES
AND SHAREHOLDERS' EQUITY
|
|
|
$
568,479
|
|
$
489,018
|
PREFORMED LINE
PRODUCTS COMPANY
|
STATEMENTS OF
CONSOLIDATED OPERATIONS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Thousands of
dollars, except earnings per share data)
|
|
Three Months Ended
December 31
|
|
Twelve Months Ended
December 31
|
|
|
|
2022
|
|
2021
|
|
2022
|
|
2021
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
$
169,924
|
|
$
131,446
|
|
$
637,021
|
|
$
517,417
|
|
Cost of products
sold
|
|
107,694
|
|
91,598
|
|
421,841
|
|
351,175
|
|
GROSS
PROFIT
|
|
62,230
|
|
39,848
|
|
215,180
|
|
166,242
|
|
|
|
|
|
|
|
|
|
|
|
Costs and
expenses
|
|
|
|
|
|
|
|
|
|
Selling
|
|
12,139
|
|
10,697
|
|
45,712
|
|
40,539
|
|
General and
administrative
|
|
19,593
|
|
12,352
|
|
70,317
|
|
55,257
|
|
Research and
engineering
|
|
4,783
|
|
4,953
|
|
19,661
|
|
19,188
|
|
Goodwill
impairment
|
|
—
|
|
—
|
|
6,529
|
|
—
|
|
Other operating
expense, net
|
|
1,128
|
|
881
|
|
3,600
|
|
3,709
|
|
|
|
37,643
|
|
28,883
|
|
145,819
|
|
118,693
|
|
OPERATING
INCOME
|
|
24,587
|
|
10,965
|
|
69,361
|
|
47,549
|
|
|
|
|
|
|
|
|
|
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest
income
|
|
272
|
|
92
|
|
631
|
|
169
|
|
Interest
expense
|
|
(1,085)
|
|
(544)
|
|
(3,214)
|
|
(2,023)
|
|
Other income,
net
|
|
429
|
|
1,452
|
|
6,926
|
|
3,201
|
|
|
|
(384)
|
|
1,000
|
|
4,343
|
|
1,347
|
|
|
|
|
|
|
|
|
|
|
|
INCOME BEFORE INCOME
TAXES
|
|
24,203
|
|
11,965
|
|
73,704
|
|
48,896
|
|
|
|
|
|
|
|
|
|
|
|
Income tax
expense
|
|
7,715
|
|
3,014
|
|
19,305
|
|
13,175
|
|
|
|
|
|
|
|
|
|
|
|
NET
INCOME
|
|
$
16,488
|
|
$
8,951
|
|
$
54,399
|
|
$
35,721
|
|
Net loss (income)
attributable to noncontrolling interests
|
|
23
|
|
23
|
|
(4)
|
|
8
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO PREFORMED
|
|
|
|
|
|
|
|
|
|
LINE PRODUCTS
COMPANY SHAREHOLDERS
|
|
$
16,511
|
|
$
8,974
|
|
$
54,395
|
|
$
35,729
|
|
|
|
|
|
|
|
|
|
|
|
AVERAGE NUMBER OF
SHARES OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
OUTSTANDING:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
4,927
|
|
4,907
|
|
4,931
|
|
4,907
|
|
Diluted
|
|
5,032
|
|
5,026
|
|
4,999
|
|
4,970
|
|
|
|
|
|
|
|
|
|
|
|
EARNINGS PER SHARE
OF COMMON STOCK
|
|
|
|
|
|
|
|
|
|
ATTRIBUTABLE TO
PREFORMED LINE PRODUCTS
|
|
|
|
|
|
|
|
|
|
COMPANY
SHAREHOLDERS:
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
3.35
|
|
$
1.83
|
|
$
11.03
|
|
$
7.28
|
|
Diluted
|
|
$
3.28
|
|
$
1.79
|
|
$
10.88
|
|
$
7.19
|
|
|
|
|
|
|
|
|
|
|
|
Cash dividends declared
per share
|
|
$
0.20
|
|
$
0.20
|
|
$
0.80
|
|
$
0.80
|
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SOURCE Preformed Line Products