PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

, /PRNewswire/ -- Preformed Line Products Company (NASDAQ: PLPC) today reported financial results for its fourth quarter of 2024 and full year ended December 31, 2024. Q4/Full Year 2024 Highlights: Quarterly net sales of $167.1 million, an increase of 15% from Q4 2023 and 14% from Q3 2024 Diluted EPS of $2.13, an increase of 65% from Q4 2023 and 38% from Q3 2024 Debt reduction of $33.7 million in 2024 due to strong cash generation Net sales in the fourth quarter of 2024 were $167.1 million compared to $145.6 million in the fourth quarter of 2023, a 15% increase. The international subsidiaries accounted for the majority of the sales increase primarily due to an increase in energy market sales and to a lesser extent the communications end market. Foreign currency translation reduced fourth quarter 2024 net sales by $3.0 million. Net income for the quarter ended December 31, 2024, was $10.5 million, or $2.13 per diluted share, compared to $6.3 million, or $1.29 per diluted share, for the comparable period in 2023. The fourth quarter of 2024 net income was impacted by an increase in gross profit from higher sales levels, lower period expenses, and lower interest expense. Gross profit as a percentage of net sales was 33.3% for the fourth quarter of 2024, an increase of 30 basis points versus the same quarter in 2023. Net sales decreased 11% to $593.7 million for the full year 2024 compared to $669.7 million in 2023. The year-over-year decline in sales is due primarily to the slowdown in spending and inventory de-stocking within the U.S. energy and communications end markets. Foreign currency translation rates reduced net sales by $4.2 million for the year ended December 31, 2024. Net income for the year ended December 31, 2024 was $37.1 million, or $7.50 per diluted share, compared to $63.3 million, or $12.68 per diluted share, for the comparable period in 2023. YTD December 31, 2024 net income was impacted by decreased gross profit resulting from the decrease in sales, which was partially offset by lower period expenses and lower interest expense. Rob Ruhlman, Executive Chairman, said, "The increase in fourth quarter sales of 15% versus the fourth quarter of 2023, as well as the sequential increase of 14% from last quarter, indicate we are approaching the end of inventory destocking within our primary end markets. Full year net sales declined 11% versus 2023, primarily due to the softness in the U.S. communications end market, caused by a reduction in customer deployment due to higher borrowing costs, a delay in Broadband Equity, Access, and Deployment ("BEAD") Program stimulus funding and customer inventory de-stocking to re-align inventory levels with current manufacturing lead times. While 2024 was a challenging year, I am encouraged by the contributions made by our international subsidiaries, which mitigated some of the weakness in our U.S. business. Our cost reduction activities along with reduced capital expenditures, reduced acquisition activity and lower borrowing costs in 2024 resulted in strong cash generation enabling debt reduction of $33.7 million. Our strong balance sheet and liquidity allows for continued investment in new product development to satisfy customer requirements, facility modernization and automation for our global manufacturing operations as well as opportunities for continued growth through logical acquisitions. Our current focus is unchanged: provide our customers with the high-quality products and timely service they have come to expect from PLP." A presentation on fourth quarter and full-year results will also be available on PLP's website at www.plp.com/investor-relations. 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, tariffs, labor disruptions, military conflict, political instability, exchange rates, natural disasters and health epidemics, 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, the Company's continued access to financing, 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 COMPANYCONSOLIDATED BALANCE SHEETS December 31, 2024 December 31, 2023 (Thousands of dollars, except share and per share data) ASSETS Cash, cash equivalents and restricted cash $ 57,244 $ 53,607 Accounts receivable, net 111,402 106,892 Inventories, net 129,913 148,814 Prepaid expenses 11,720 8,246 Other current assets 5,514 7,256 TOTAL CURRENT ASSETS 315,793 324,815 Property, plant and equipment, net 195,086 207,892 Goodwill 26,685 29,497 Other intangible assets, net 9,656 12,981 Deferred income taxes 6,546 7,109 Other assets 20,111 20,857 TOTAL ASSETS $ 573,877 $ 603,151 LIABILITIES AND SHAREHOLDERS' EQUITY Trade accounts payable $ 41,951 $ 37,788 Notes payable to banks 7,782 6,968 Current portion of long-term debt 2,430 6,486 Accrued compensation and other benefits 25,904 28,018 Accrued expenses and other liabilities 30,346 32,057 TOTAL CURRENT LIABILITIES 108,413 111,317 Long-term debt, less current portion 18,357 48,796 Other noncurrent liabilities and deferred income taxes 24,783 26,882 SHAREHOLDERS' EQUITY Common shares – $2 par value per share, 15,000,000 shares authorized, 4,913,621 and 4,908,413 issued and outstanding, at December 31, 2024 and December 31, 2023 13,752 13,607 Common shares issued to rabbi trust, 222,887 and 243,118 shares at December 31, 2024 and December 31, 2023, respectively (9,575) (10,183) Deferred compensation liability 9,575 10,183 Paid-in capital 65,093 60,958 Retained earnings 553,179 520,154 Treasury shares, at cost, 1,961,772 and 1,894,419 shares at December 31, 2024 and December 31, 2023, respectively (126,800) (118,249) Accumulated other comprehensive loss (82,909) (60,306) TOTAL PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS' EQUITY 422,315 416,164 Noncontrolling interest 9 (8) TOTAL SHAREHOLDERS' EQUITY 422,324 416,156 TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY $ 573,877 $ 603,151 PREFORMED LINE PRODUCTS COMPANYSTATEMENTS OF CONSOLIDATED INCOME Three Months Ended December 31, Twelve Months Ended December 31, 2024 2023 2024 2023 (Thousands of dollars, except per share data) Net sales $ 167,117 $ 145,603 $ 593,714 $ 669,679 Cost of products sold 111,488 97,503 403,903 434,831 GROSS PROFIT 55,629 48,100 189,811 234,848 Costs and expenses Selling 12,576 12,945 48,722 51,078 General and administrative 19,205 20,019 67,477 74,643 Research and engineering 5,589 5,688 21,923 22,481 Other operating expense, net 746 2,502 932 2,492 38,116 41,154 139,054 150,694 OPERATING INCOME 17,513 6,946 50,757 84,154 Other income (expense) Interest income 717 610 2,573 1,811 Interest expense (381) (707) (2,221) (3,905) Other (expense) income, net (528) 119 (339) 284 (192) 22 13 (1,810) INCOME BEFORE INCOME TAXES 17,321 6,968 50,770 82,344 Income tax expense 6,876 659 13,659 19,007 NET INCOME $ 10,445 $ 6,309 $ 37,111 $ 63,337 Net loss (income) attributable to noncontrolling interests 7 23 (17) (5) NET INCOME ATTRIBUTABLE TOPREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS $ 10,452 $ 6,332 $ 37,094 $ 63,332 AVERAGE NUMBER OF SHARES OF COMMON STOCK OUTSTANDING: Basic 4,897 4,864 4,908 4,920 Diluted 4,917 4,902 4,947 4,997 EARNINGS PER SHARE OF COMMON STOCK ATTRIBUTABLE TO PREFORMED LINE PRODUCTS COMPANY SHAREHOLDERS: Basic $ 2.13 $ 1.30 $ 7.56 $ 12.87 Diluted $ 2.13 $ 1.29 $ 7.50 $ 12.68 Cash dividends declared per share $ 0.20 $ 0.20 $ 0.80 $ 0.80 SOURCE Preformed Line Products WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

PREFORMED LINE PRODUCTS ANNOUNCES FOURTH QUARTER 2024 FINANCIAL RESULTS

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