Polypore International Q4 Profit Almost Triples On One-time Gain, Higher Sales

(RTTNews) - Shares of Polypore International Inc. (PPO) gained more than 3 percent in extended trades Monday after the filtration technology company reported a profit for the fourth quarter that almost tripled from last year on a one-time gain as well as higher sales.

Robert Toth, President and Chief Executive Officer of Polypore International, said, "We are pleased with the continued solid performance in the Transportation and Industrial and Separations Media segments, and with two meaningful accomplishments in the Electronics and EDVs segment: our technology agreement with Sumitomo Chemical Co., Ltd. and our more recent long-term supply agreement with Samsung SDI Co., Ltd., a global leader in EDV and Energy Storage Systems batteries."

The Charlotte, North Carolina-based filtration technology company's fourth-quarter net income was $50.1 million or $1.10 per share, up from $17.5 million or $0.37 per share in the same period last year.

On December 19, 2013, Polypore completed the sale of its Microporous business to Seven Mile Capital Partners for $120.0 million. In discontinued operations, the company recognized a gain of $35.8 million or $0.86 per share on the sale, net of income taxes and subject to a typical working capital adjustment.

Excluding items, adjusted net income from continuing operations for the quarter was $14.2 million or $0.31 per share, compared to $17 million or $0.36 per share in the year-ago period, with the primary difference associated with a higher effective tax rate in the quarter.

On average, 11 analysts polled by Thomson Reuters expected the company to earn $0.30 per share for the quarter. Analysts' estimates typically exclude special items.

Net sales for the quarter increased 5 percent to $169.4 million from $162.1 million in the same period last year. Excluding the effect of foreign currency translation, sales for the quarter increased $4.9 million, or 3 percent. Analysts had a consensus revenue estimate of $164.4 million.

In the energy storage business, sales of lead-acid battery separators in the fourth quarter were $79.0 million. Meanwhile, lithium battery separator sales rose 5 percent from the year-ago quarter to $35.9 million, due to higher volumes in electric drive vehicles or EDVs and a technology licensing fee, partly offset by lower volumes in consumer electronics.

However, sales at the company's separations media segment increased 10 percent in the quarter to $54.5 million. Excluding the effect of foreign currency translation, sales increased 6 percent.

Sales of healthcare products increased 9 percent to $35.5 million, while sales of filtration and specialty products rose 12 percent to $19.0 million.

For fiscal 2013, Polypore's net income rose to $81.6 million or $1.76 per share from $71.0 million or $1.50 per share last year. Adjusted income from continuing operations was $47.7 million or $1.03 per share, compared with $73.0 million or $1.55 per share in the previous year.

Net sales for the year declined to $636.3 million from $648.7 million in the prior year.

Street expected the company to earn $1.03 per share for the year on revenues of $632.90 million.

PPO closed Monday's regular trading session at $29.63, down $0.38 or 1.27 percent on a volume of 1.34 million shares. However, in after-hours, the stock gained $0.99 or 3.34 percent to $30.62.