Technology

PREFORMED LINE PRODUCTS ANNOUNCES THIRD QUARTER 2024 FINANCIAL RESULTS

Published

2 hours ago

October 30, 2024

CLEVELAND, Oct. 30, 2024 /PRNewswire/ — Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its third quarter of 2024.

Net sales in the third quarter of 2024 were $147.0 million compared to $160.4 million in the third quarter of 2023, an 8% decrease. The decrease in sales is primarily related to a continuation of the slowdown in spending in the communications end market. Foreign currency translation reduced third quarter 2024 net sales by $0.8 million.

Net income for the quarter ended September 30, 2024, was $7.7 million, or $1.54 per diluted share, compared to $15.1 million, or $3.03 per diluted share, for the comparable period in 2023. The third quarter of 2024 net income was impacted by decreased gross profit from lower sales levels, similar to our first half 2024 results, partially offset by lower period expenses from our cost containment initiatives, lower net interest expense and reduced income tax expense. Gross profit as a percentage of net sales was 31.2% for the third quarter of 2024, largely consistent with the second quarter of 2024.

Net sales decreased 19% to $426.6 million for the first nine months of 2024 compared to $524.1 million for the first nine months of 2023. The year-over-year decline in sales is due primarily to the slowdown in spending and inventory destocking within the communications end market. Currency translation rates reduced net sales by $1.1 million for the nine months ended September 30, 2024.

Net income for the nine months ended September 30, 2024 was $26.6 million, or $5.37 per diluted share, compared to $57.0 million, or $11.39 per diluted share, for the comparable period in 2023. YTD September 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 net interest expense and reduced income tax expense.

Rob Ruhlman, Executive Chairman, said, “The decline in net sales continues, albeit at a slower pace, primarily related to the softness in the communications end market, caused primarily by a reduction in deployment due to higher borrowing costs and continued inventory destocking to re-align customer inventory levels with current manufacturing lead times. The slower pace of the net sales decline and an increase in order backlog are indicators that we may be nearing the final stages of inventory destocking. Our gross margin percentage has been consistent throughout 2024 aided by our cost reduction activities implemented in 2023. 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 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.

PREFORMED LINE PRODUCTS COMPANY
STATEMENTS OF CONSOLIDATED INCOME

Three Months Ended September 30,

Nine Months Ended September 30,

2024

2023

2024

2023

(Thousands of dollars, except per share data)

Net sales

$ 146,973

$ 160,438

$ 426,597

$ 524,076

Cost of products sold

101,195

106,301

292,415

337,328

GROSS PROFIT

45,778

54,137

134,182

186,748

Costs and expenses

Selling

12,318

12,732

36,146

38,133

General and administrative

16,414

17,794

48,272

54,624

Research and engineering

5,545

5,840

16,334

16,793

Other operating expense, net

1,109

(2,307)

186

(10)

35,386

34,059

100,938

109,540

OPERATING INCOME

10,392

20,078

33,244

77,208

Other (expense) income

Interest income

538

478

1,856

1,201

Interest expense

(564)

(998)

(1,840)

(3,198)

Other income, net

189

165

(502)

205

(1,832)

INCOME BEFORE INCOME TAXES

10,430

19,576

33,449

75,376

Income tax expense

2,734

4,431

6,783

18,348

NET INCOME

$ 7,696

$ 15,145

$ 26,666

$ 57,028

Net income attributable to noncontrolling interests

(16)

(15)

(24)

(28)

NET INCOME ATTRIBUTABLE TO PREFORMED LINE
PRODUCTS COMPANY SHAREHOLDERS

$ 7,680

$ 15,130

$ 26,642

$ 57,000

AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING:

Basic

4,904

4,906

4,911

4,929

Diluted

4,977

4,990

4,959

5,006

EARNINGS PER SHARE OF COMMON STOCK
ATTRIBUTABLE TO PREFORMED LINE PRODUCTS
COMPANY SHAREHOLDERS:

Basic

$ 1.57

$ 3.08

$ 5.42

$ 11.56

Diluted

$ 1.54

$ 3.03

$ 5.37

$ 11.39

Cash dividends declared per share

$ 0.20

$ 0.60

PREFORMED LINE PRODUCTS COMPANY
CONSOLIDATED BALANCE SHEETS

September 30, 2024

December 31, 2023

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

(Unaudited)

ASSETS

Cash, cash equivalents and restricted cash

$ 47,498

$ 53,607

Accounts receivable, net

110,888

106,892

Inventories, net

142,726

148,814

Prepaid expenses

13,053

8,246

Other current assets

6,479

7,256

TOTAL CURRENT ASSETS

320,644

324,815

Property, plant and equipment, net

201,194

207,892

Goodwill

28,672

29,497

Other intangible assets, net

10,983

12,981

Deferred income taxes

9,502

7,109

Other assets

20,958

20,857

TOTAL ASSETS

$ 591,953

$ 603,151

LIABILITIES AND SHAREHOLDERS’ EQUITY

Trade accounts payable

$ 42,426

$ 37,788

Notes payable to banks

8,006

6,968

Current portion of long-term debt

2,618

6,486

Accrued compensation and other benefits

29,499

28,018

Accrued expenses and other liabilities

31,450

32,057

TOTAL CURRENT LIABILITIES

113,999

111,317

Long-term debt, less current portion

24,582

48,796

Other noncurrent liabilities and deferred income taxes

24,385

26,882

SHAREHOLDERS’ EQUITY

Common shares – $2 par value per share, 15,000,000 shares authorized,
4,897,450 and 4,908,413 issued and outstanding, at September 30, 2024 and
December 31, 2023

13,715

13,607

Common shares issued to rabbi trust, 222,741 and 243,118 shares at September 30,
2024 and December 31, 2023, respectively

(9,557)

(10,183)

Deferred compensation liability

9,557

10,183

Paid-in capital

63,108

60,958

Retained earnings

543,743

520,154

Treasury shares, at cost, 1,959,512 and 1,894,419 shares at September 30, 2024
and December 31, 2023, respectively

(126,503)

(118,249)

Accumulated other comprehensive loss

(65,092)

(60,306)

TOTAL PREFORMED LINE PRODUCTS COMPANY
SHAREHOLDERS’ EQUITY

428,971

416,164

Noncontrolling interest

(8)

TOTAL SHAREHOLDERS’ EQUITY

428,987

416,156

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

$ 591,953

$ 603,151

See notes to consolidated financial statements (unaudited).

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SOURCE Preformed Line Products

Technology

Charles IT Launches Business-Focused Podcast, One Pour Problems, Tackling Real Business Challenges Over a Drink

Published

4 mins ago

October 30, 2024

Charles IT, known for providing cutting-edge IT solutions and compliance expertise, is excited to announce the launch of its brand-new podcast, One Pour Problems. Unlike their traditional tech-focused content, this podcast shifts the spotlight to business, offering a fresh perspective on the most pressing issues businesses face today—all while enjoying the guest’s favorite drink.

MIDDLETOWN, Conn., Oct. 30, 2024 /PRNewswire-PRWeb/ — Charles IT, known for providing cutting-edge IT solutions and compliance expertise, is excited to announce the launch of its brand-new podcast, One Pour Problems. Unlike their traditional tech-focused content, this podcast shifts the spotlight to business, offering a fresh perspective on the most pressing issues businesses face today—all while enjoying the guest’s favorite drink.

“We have leaned on a lot of smart and influential leaders throughout our journey at Charles IT. I am excited to be able to create a space to bring those leaders together to share their insight and memorialize it for others to lean on and what better way to do it than over a great drink!”

The podcast, hosted by Sal Marino, Director of Finance and Operations at Charles IT, aims to bring together the area’s top business leaders to discuss the real-world challenges they encounter. In the pilot episode, released on October 24, Marino sits down with Charles IT’s founder and CEO, Foster Charles, to give listeners a sneak peek of what’s to come in Season 1.

In each episode, Marino invites a special guest to join him for an engaging conversation, covering topics like post-pandemic workplace dynamics and company culture. The first two episodes feature Bryn Tindall, CEO and Founder of Rebellion Group and Michael O’Rourke, Nasdaq’s Head of AI & Emerging Technology.

Listeners can look forward to more than just inspirational stories too. That’s because each guest will also share their favorite drink along with the fun, personal story behind it. Plus, every episode wraps up with a friendly competition – a unique typing test challenge where guests try to out-type their predecessors in a lighthearted showdown!

“It is so exciting bringing the One Pour Problems podcast to life,” said One Pour Problems Producer, Caitlyn Raftery. “Sal has been a wonderful interviewer, and our guests have been outstanding. I can’t wait to see where this journey takes us,” she added.

The pilot episode of One Pour Problems is available to stream now on the Charles IT website, YouTube page, and Spotify. The first episode drops Monday, November 4.

To learn more about One Pour Problems and stay up to date on future episodes, visit www.charlesit.com/one-pour-problems-podcast/.

About Charles IT

Charles IT is a Connecticut-based Managed Service Provider (MSP) and the Northeast’s compliance expert, specializing in comprehensive cybersecurity solutions. Their proactive approach ensures that businesses remain secure, compliant, and resilient against cyber threats. For further updates and information, visit CharlesIT.com.

Media Contact

Charles IT, Charles IT, 1 (860) 344-9628, hello@charlesit.com, Charles IT

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SOURCE Charles IT

Technology

Dot Inc. and WEBTOON Entertainment Release World’s First Tactile Digital Comics

Published

4 mins ago

October 30, 2024

Hit WEBTOON series “Yumi’s Cells” and “Hooky” will be made available for free in braille on Dot Inc.’s Dot Pad technology, expanding access to more fans around the world

Key supporting assets available HERE

SEOUL, South Korea, Oct. 30, 2024 /PRNewswire/ — WEBTOON Entertainment, a leading global entertainment company and home to some of the world’s largest storytelling platforms, today announced a first-of-its-kind collaboration with social venture company Dot Inc. to create tactile digital comics. Through the partnership, popular WEBTOON series will be converted into braille on Dot Inc.’s innovative Dot Pad.

Dot Inc. provides barrier-free products and services to build inclusive public infrastructure for the visually impaired. Its tactile display, the Dot Pad, is the first smart tactile graphics display for the visually impaired, converting any input from a connected device into a tactile graphic.

Hit WEBTOON series “Yumi’s Cells,” by creator Donggeon Lee, and “Hooky,” by Míriam Bonastre Tur, will be the first two series to launch on the Dot Pad. Tactile digital comic versions of both titles will be available globally on the Dot Pad.

“The popularity of webcomics is at an all-time high and we thought it would be great if visually impaired individuals could enjoy them too. This is my first time exploring webcomics, listening to audio descriptions, and reading dialogue. It brought the imagined scenes vividly to life in my mind, and made the content even more engaging,” said Misook Go, the community manager at Dot, who is visually impaired herself. “I was especially curious about how the individual cells in ‘Yumi’s Cells’ looked, and being able to feel their shapes brought a new level of excitement.”

“Part of our mission at WEBTOON is to make webcomics more accessible for fans around the world,” said David S. Lee, Head of US WEBTOON. “Dot Inc. shares WEBTOON’s commitment to innovating for inclusivity. After making comics more accessible to people all over the world in a mobile digital format, we’re thrilled to work with Dot Inc. to create a new content experience for the visually impaired.”

“The new experience of engaging with webcomics through touch was very impressive. Even if you did not know Braille, the process of understanding through illustrations was fascinating, and I hope to help many people visiting the library experience the world through the new tactile opportunities provided by the Dot Pad,” said Monique E. Mariani, Braille instructor at the Braille Institute of America.

The Dot Pad is a real-time tactile graphic and multi-line braille display for the visually impaired and the blind. The Dot Pad is compatible with mobile devices and laptops via Bluetooth. It displays charts, graphs, images and visual data with 320 refreshable braille cells. Users can run their fingers over the display and perceive the image with their fingertips.

About WEBTOON Entertainment
WEBTOON Entertainment is a leading global entertainment company and home to some of the world’s largest storytelling platforms. As the global leader and pioneer of the mobile web-comic format, WEBTOON Entertainment has transformed comics and visual storytelling for fans and creators.

With its CANVAS UGC platform empowering anyone to become a creator, and a growing roster of superstar WEBTOON Originals creators and series, WEBTOON Entertainment’s passionate fandoms are the new face of pop culture. WEBTOON adaptations are available on Netflix, Prime Video, Crunchyroll, and other screens around the world, and the company’s content partners include Discord, HYBE and DC Comics, among many others.

With approximately 170 million monthly active users (as of the quarter ended June 30, 2024), WEBTOON Entertainment’s IP & Creator Ecosystem of aligned companies include WEBTOON, Wattpad–the world’s leading web-novel platform–Wattpad WEBTOON Studios, Studio N, Studio LICO, WEBTOON Unscrolled, LINE MANGA, and eBookJapan, among others.

About Dot Inc.
Dot Inc., a leader in solutions for the visually impaired, has introduced groundbreaking products like the Dot Watch, Dot Pad, and Dot Kiosk since 2015. Recognized as a CES Innovation Award honoree in 2023 and 2024, Dot is expanding partnerships across North and South America. Through collaborations with Google, Microsoft, and Apple, Dot drives global accessibility. With a strong focus on the Social aspect of ESG, Dot strives to address social challenges through technological advancements for people with disabilities.

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SOURCE Dot Inc.