Preformed Line Products Company (NASDAQ:PLPC)

Aug 15,
2009 and Q2 2010 data
Check list:
1.Major Business.
Device for energy and communication market. Found in 1947. 
Formed wire and related: 60%, Protective Closures: 25%, Interconnection Devices and others: 15%. 
U.S.: 40%, Developed country: 36%, Emerging country: 24%.


2.Price, Book value, Share outstanding, Market Cap.
Current price around $33. Book value: $29.4(based on 5.4m diluted shares). Shares: 5.25m. Market Cap:$173m

3.Current ratio. Debt/Current Asset ratio. Debt maturity and interest. Inventory level.
Current asset: $143m. Total debt: $8m. Cash: $22m. Inventory: $57m.

4.Revenue, Earning, Deficit check. Price/Sales ratio.
                   2009        2008       2007       2006       2005      ave
Revenue      $257m      $270m    $233m    $196m     $186
Earning       $4.35        $3.14      $2.54      $2.09      $1.93    $2.81
Sales/Price around 1.5. 


5.Dividend history.
$0.80 per year since beginning(2001). 

6.Free Cash flow
               2009          2008         2007        2006       2005      Ave
FCF        $18.3m       $7.3m       $8.1m      $4.5m     $13.8    $10.4($2 per share)


7.SG&A, R&D expense.
                  2009       2008      2007
SG&A         $34m      $30m      $26m
R&D            $2.3m     $2m       $1.7m
*Above data is not very meaningful since there are acquisitions in those years.


8.Management compensation. Options. 
                                           2009         2008        2007        
Robert G. Ruhlman (CEO):   $2.2m       $2.2m      $1.4m
Other 4 officers:                   $2.7m       $2.5m      $1.8m
Total:                                  $4.9m       $4.7m      $3.2m


10K options outstanding. 
112k share awarded

9.Buy back, insider holding and trading info.
Barbara  R.  Ruhlman(Mother of CEO, 77):                  852k     16.2%
Robert G. Ruhlman (CEO, 53):1890k-(1490k/2) =        1145k    21.8% 
Randall M. Ruhlman(Director, 51): 1657k-(1490k/2) =  912k      17.3%
Total:                                                                                   55.3%


10.Employee numbers. Revenue/Employee. Compensation/Employee.
2009: 2,304 world wide, 30% in U.S.. Revenue/Employee is around $110k

11.Industry comparison.
3M:
Tyco International:
Corning Cable Systems:

12.Major events.
Business acquisitions: 
2000: Rack Technologies in Australia
2004: Union Electric Manufacturing in Thailand.
2007: DPW, U.S., Belos SA, Poland.
2008: BlueSky Energy Australia, joint venture. 50%.
2009: 33.3% of Proxisafe Ltd, Canada.  Dulmison from Tyco Electronics. 


13. Others
1. 14+3 patents on COYOTE Closure. Earliest will be expired on 2015.

14.Concerns.
1. FCF is $2 for past 5 years. Compared to $2.81 earning is much lower. Around $7m - $10m on capital expenditure is higher than depreciation. Can't tell they are replacement only or new machines been added.