PLPC Preformed Line Products Company

 

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): July 31, 2024

 

 

Preformed Line Products Company

(Exact name of Registrant as Specified in Its Charter)

 

 

Ohio			0-31164	34-0676895
(State or Other Jurisdiction of Incorporation)			(Commission File Number)	(IRS Employer Identification No.)
660 Beta Drive
Mayfield Village, Ohio				44143
(Address of Principal Executive Offices)				(Zip Code)

 

Registrant’s Telephone Number, Including Area Code: 440 461-5200

 

(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:

 

	☐	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))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class		Trading Symbol(s)		Name of each exchange on which registered
Common		PLPC		The Nasdaq Global Market

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 July 31, 2024, Preformed Line Products Company issued a press release announcing earnings for the quarter ended June 30, 2024. 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

 

Exhibit No.		Description
99.1		Press release dated July 31, 2024, announcing earnings for the second quarter 2024 financial results
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

 

 

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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.

			PREFORMED LINE PRODUCTS COMPANY
Date:	July 31, 2024	By:	/s/ Andrew S. Klaus
			Andrew S. Klaus, CFO

 

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PREFORMED LINE PRODUCTS ANNOUNCES SECOND QUARTER 2024 FINANCIAL RESULTS

CLEVELAND, OHIO – July 31, 2024 - Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its second quarter of 2024.

Net sales in the second quarter of 2024 were $138.7 million compared to $181.8 million in the second quarter of 2023, a 24% decrease. The decrease in sales is a continuation of the slowdown in spending in the communications end market. Foreign currency translation reduced second quarter 2024 net sales by $1.1 million.

Net income for the quarter ended June 30, 2024, was $9.4 million, or $1.89 per diluted share, compared to $20.5 million, or $4.08 per diluted share, for the comparable period in 2023. The second quarter of 2024 net income was impacted by decreased gross profit from lower sales levels, similar to our Q1 2024 results, partially offset by lower period expenses, lower interest expense and reduced income tax expense. Gross profit as a percentage of net sales was 31.9% for the second quarter of 2024, a decrease of 460 basis points versus the same quarter in 2023.

Net sales decreased 23% to $279.6 million for the first six months of 2024 compared to $363.6 million for the first six months of 2023. The year-over-year decline in sales is due primarily to the slowdown in spending and inventory de-stocking within the communications end market. Foreign currency translation rates reduced net sales by $0.3 million for the six months ended June 30, 2024.

Net income for the six months ended June 30, 2024 was $19.0 million, or $3.83 per diluted share, compared to $41.9 million, or $8.35 per diluted share, for the comparable period in 2023. YTD June 30, 2024 net income was impacted by decreased gross profit resulting from the decrease in sales which was partially offset by lower period expenses, lower interest expense and reduced income tax expense.

Rob Ruhlman, Executive Chairman, said, “The decline in net sales continues to be primarily related to the softness in the communications end market, caused primarily by a reduction in deployment due to higher borrowing costs, a delay in BEAD stimulus funding and continued inventory de-stocking to re-align customer inventory levels with current manufacturing lead times. Our cost reduction activities implemented in 2023 have helped us maintain solid financial results during this expected temporary slow-down within our end markets. We remain optimistic about the prospects of the markets that we serve and will continue our investment in new product development, streamlining our manufacturing operations and expanding our customer service portfolio. These actions, along with our continued strong liquidity, will allow us to take advantage of favorable market conditions when they return. Our current focus is unchanged: provide our customers with the high-quality products and timely service they have come to expect from PLP.”

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

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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 2023 Annual Report on Form 10-K filed with the SEC on March 8, 2024 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 20 countries, PLP works as a united global corporation, delivering high-quality products and unparalleled service to customers around the world.

 

MEDIA RELATIONS INVESTOR RELATIONS

JOSH NELSON ANDREW S. KLAUS

MANAGER, MARKETING COMMUNICATIONS CHIEF FINANCIAL OFFICER

+1 440 473 9120 +1 440 473 9246

JOSH.NELSON@PLP.COM ANDY.KLAUS@PLP.COM

 

 

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PREFORMED LINE PRODUCTS COMPANY

CONSOLIDATED BALANCE SHEETS

		June 30, 2024				December 31, 2023
(Thousands of dollars, except share and per share data)		(Unaudited)
ASSETS
Cash, cash equivalents and restricted cash		$	47,424			$	53,607
Accounts receivable, net			101,460				106,892
Inventories, net			141,812				148,814
Prepaid expenses			7,394				8,246
Other current assets			6,983				7,256
TOTAL CURRENT ASSETS			305,073				324,815
Property, plant and equipment, net			200,441				207,892
Goodwill			27,901				29,497
Other intangible assets, net			11,059				12,981
Deferred income taxes			7,721				7,109
Other assets			20,392				20,857
TOTAL ASSETS		$	572,587			$	603,151
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade accounts payable		$	42,945			$	37,788
Notes payable to banks			6,938				6,968
Current portion of long-term debt			2,812				6,486
Accrued compensation and other benefits			24,398				28,018
Accrued expenses and other liabilities			26,891				32,057
TOTAL CURRENT LIABILITIES			103,984				111,317
Long-term debt, less current portion			28,820				48,796
Other noncurrent liabilities and deferred income taxes			23,565				26,882
SHAREHOLDERS' EQUITY
Common shares – $2 par value per share, 15,000,000 shares authorized, 4,913,496 and 4,908,413 issued and outstanding, at June 30, 2024 and December 31, 2023			13,711				13,607
Common shares issued to rabbi trust, 238,787 and 243,118 shares at June 30, 2024 and December 31, 2023, respectively			(10,233	)			(10,183	)
Deferred compensation liability			10,233				10,183
Paid-in capital			62,361				60,958
Retained earnings			537,079				520,154
Treasury shares, at cost, 1,941,690 and 1,894,419 shares at June 30, 2024 and December 31, 2023, respectively			(124,269	)			(118,249	)
Accumulated other comprehensive loss			(72,664	)			(60,306	)
TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY			416,218				416,164
Noncontrolling interest			-				(8	)
TOTAL SHAREHOLDERS' EQUITY			416,218				416,156
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY		$	572,587			$	603,151

 

 

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PREFORMED LINE PRODUCTS COMPANY

STATEMENTS OF CONSOLIDATED INCOME

	Three Months Ended June 30,								Six Months Ended June 30,
	2024				2023				2024				2023
(Thousands of dollars, except per share data)
Net sales	$	138,720			$	181,813			$	279,625			$	363,637
Cost of products sold		94,447				115,486				191,220				231,026
GROSS PROFIT		44,273				66,327				88,405				132,611
Costs and expenses
Selling		11,928				13,013				23,828				25,401
General and administrative		15,250				18,220				31,858				36,830
Research and engineering		5,358				5,760				10,789				10,953
Other operating expense, net		445				1,186				(921	)			2,298
		32,981				38,179				65,554				75,482
OPERATING INCOME		11,292				28,148				22,851				57,129
Other (expense) income
Interest income		346				419				1,318				723
Interest expense		(568	)			(1,134	)			(1,276	)			(2,199	)
Other income, net		91				108				126				147
		(131	)			(607	)			168				(1,329	)
INCOME BEFORE INCOME TAXES		11,161				27,541				23,019				55,800
Income tax expense		1,794				7,077				4,049				13,917
NET INCOME	$	9,367			$	20,464			$	18,970			$	41,883
Net income attributable to noncontrolling interests		(1	)			8				(8	)			(13	)
NET INCOME ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS	$	9,366			$	20,472			$	18,962			$	41,870
AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:
Basic		4,915				4,944				4,915				4,940
Diluted		4,964				5,024				4,955				5,013
EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS:
Basic	$	1.91			$	4.14			$	3.86			$	8.48
Diluted	$	1.89			$	4.08			$	3.83			$	8.35
Cash dividends declared per share	$	0.20			$	0.20			$	0.40			$	0.40

 

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v3.24.2

Document And Entity Information	Jul. 31, 2024
Cover [Abstract]
Document Type	8-K
Amendment Flag	false
Document Period End Date	Jul. 31, 2024
Entity Registrant Name	Preformed Line Products Company
Entity Central Index Key	0000080035
Entity Emerging Growth Company	false
Securities Act File Number	0-31164
Entity Incorporation, State or Country Code	OH
Entity Tax Identification Number	34-0676895
Entity Address, Address Line One	660 Beta Drive
Entity Address, City or Town	Mayfield Village
Entity Address, State or Province	OH
Entity Address, Postal Zip Code	44143
City Area Code	440
Local Phone Number	461-5200
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common
Trading Symbol	PLPC
Security Exchange Name	NASDAQ

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