Preformed Line Products(PLPC) - 2025 Q1 - Quarterly Report

Financial Performance - Net sales for the three months ended March 31, 2025, were $148.5 million, an increase of $7.6 million or 5% year-over-year [70]. - Gross profit for the same period was $48.7 million, up $4.5 million or 10% compared to 2024 [77]. - Operating income increased to $13.1 million, representing an increase of $1.6 million or 14% year-over-year [73]. - Net income attributable to shareholders was $11.5 million, an increase of $1.9 million or 20% compared to the previous year [74]. - Net income for the three months ended March 31, 2025, was $11.5 million, a 22% increase from $9.6 million in the same period of 2024 [81]. - The Asia-Pacific segment reported a net income decrease of 70% to $0.5 million for the three months ended March 31, 2025, compared to $1.8 million in 2024 [81]. Sales Performance by Region - The Americas segment saw a 39% increase in net sales, reaching $22.3 million, primarily driven by higher volumes in energy product sales [76]. - EMEA segment net sales increased by 6% to $30.0 million, mainly due to higher energy product sales [76]. Costs and Expenses - Costs and expenses rose to $35.5 million, an increase of $3.0 million or 9% year-over-year [78]. Liquidity and Debt - The company maintained a strong liquidity position with a bank debt to equity ratio of 8.0% as of March 31, 2025 [72]. - Total debt as of March 31, 2025, was $34.9 million, with an unused availability under the credit facility of $82.5 million [85]. - The company amended its credit facility to extend the maturity date to June 30, 2028, and increased the amount of unsecured borrowings permitted from $40.0 million to $60.0 million [85]. Cash Flow and Investments - Net cash provided by operating activities for the three months ended March 31, 2025, was $5.7 million, slightly down from $5.8 million in the prior year [90]. - Cash used for capital expenditures in the first three months of 2025 was $11.0 million, with total cash, cash equivalents, and restricted cash at $54.8 million [84]. - Net cash used in investing activities increased to $9.7 million in the first quarter of 2025, compared to $0.7 million in the same period of 2024, mainly due to capital expenditures for new land and a building in Spain [91]. - The company expects future operating cash flows to cover debt repayments, capital expenditures, and dividends for the next 12 months and beyond [89]. Tax and Foreign Currency Impact - The effective tax rate decreased to 16% for the three months ended March 31, 2025, down from 19% in 2024, primarily due to increased excess tax benefits on share-based compensation [80]. - The impact of foreign currency translation on net sales was unfavorable by $4.4 million for the three months ended March 31, 2025 [71]. Strategic Initiatives - The company continues to invest in expanding into new markets and evaluating strategic mergers and acquisitions [72]. - The company has total outstanding guarantees of $14.2 million as of March 31, 2025 [94].