SEGUIN, Texas, Feb. 27, 2020 /PRNewswire/ -- Alamo Group Inc.
(NYSE: ALG) today reported results for the fourth quarter and year
ended December 31, 2019. As
previously announced, beginning with this release the Company will
report its results on the basis of two divisions, Industrial and
Agricultural, which includes their respective parts of the former
European Division.
Highlights
- Record net sales for full year 2019 of $1.1 billion, up 10.9%
- Net Income for the full year of $62.9
million
- Adjusted net income for full year of $69.8 million, down less than
1%(1)
- Record net sales for the fourth quarter of $300.2 million, up 17.2%
-
- Industrial Division net sales of $222.4
million, up 29.3%
- Agricultural Division net sales of $77.7
million, down 7.5%
- Net Income for the fourth quarter of $9.6 million
- Adjusted net income for the fourth quarter of $15.5 million, down 5.0%(1)
- Bookings for the fourth quarter, including acquisitions, at
$338.4 million, up 41.8% compared to
the previous year; excluding acquisitions, bookings were
$263.4 million, up 10.3%
- Backlog at $261.0 million,
including acquisitions, up 8.6% compared to the previous year
- Completed acquisition of Morbark, Company's largest acquisition
to date
- Record level of EBITDA at $124.9
million(1)
Results for the Quarter
Net sales for the fourth quarter of 2019 were $300.2 million compared to net sales of
$256.0 million in the fourth quarter
of 2018, an increase of 17.2%. Net income for the fourth
quarter was $9.6 million, or
$0.81 per diluted share, compared to
$16.6 million, or $1.41 per diluted share in the prior year.
The results for the fourth quarter of 2019 included the effects
of the acquisitions of Dutch Power, completed in March 2019, and Morbark, completed in October
2019. Excluding the effects of these acquisitions adjusted
net sales for the quarter were $256.4
million and net income was $15.5
million, or $1.32 per diluted
share compared to $16.3 million, or
$1.38 per diluted share in
2018.(1) A summary of these adjustments is outlined more
fully in the attachments to this release. The acquisition of
Dixie Chopper was completed in August
2019, although their results for the fourth quarter and for
the year ended December 31, 2019 were
immaterial and are not included in the adjustments.
Results for the Full Year
Net sales for the full year of 2019 were $1.1 billion, up 10.9% compared to net sales of
$1.0 billion in the prior year.
Net income for the full year was $62.9
million, or $5.33 per diluted
share, versus $73.5 million, or
$6.25 per diluted share in
2018.
The results for 2019 included the effects of the Dutch Power and
Morbark acquisitions and the results for 2018 include a net
$3.3 million favorable adjustment to
the provisional tax reform expense recorded in 2017.
Excluding the effects of the Dutch Power and Morbark acquisitions
in 2019 and the tax adjustment in 2018, full year 2019 net sales
were $1.05 billion versus
$1.01 billion in 2018 and net income
for 2019 was $69.8 million, or
$5.92 per diluted share versus
$70.2 million, or $5.97 per diluted share in 2018.(1)
A summary of these adjustments is outlined more fully in the
attachments to this release.
Results by Division
Alamo Group's Industrial Division net sales in the fourth
quarter of 2019 were $222.4 million
compared to $172.0 million in the
fourth quarter of 2018, an increase of 29.3%. The Division's
income from operations for the quarter was $12.2 million compared to $17.6 million in the previous year, a decrease of
30.7%. For the full year, net sales in 2019 were $768.5 million versus $638.2 million in 2018, an increase of
20.4%. Income from operations for the Division was
$65.3 million in 2019 compared to
$65.1 million in 2018, an increase of
less than 1%. The Industrial Division results for 2019
included the effects of the acquisition of Dutch Power and Morbark
discussed previously. Excluding the effects of these
acquisitions, net sales for the fourth quarter and full year of
2019 were $178.7 million and
$697.0 million respectively and
income from operations was $15.0
million for the fourth quarter and $66.9 million for the full year of
2019.(1) The Industrial Division results for the
year, excluding the Dutch Power and Morbark acquisitions, were
negatively affected by softer demand, particularly in the third
quarter of 2019 as discussed in our third quarter press
release. This situation, while still of concern, rebounded
nicely in the fourth quarter of 2019.
The Company's Agricultural Division net sales in the fourth
quarter of 2019 were $77.7 million
compared to $84.0 million in the
prior year, a decrease of 7.5%. The Division's income from
operations for the quarter was $6.0
million compared to $7.1
million in 2018, a decrease of 14.9%. For the 2019
full year, net sales in the division were $350.7 million compared to $370.6 million in 2018, a decrease of 5.4%.
Income from operations was $29.4
million for the 2019 full year compared to $36.0 million in 2018, a decrease of 18.4%.
The Division's results continue to be impacted by weak overall
agricultural market conditions, although the outlook showed some
signs of improvement as bookings in the quarter were ahead of the
previous year.
Comments on Results
Ron Robinson, Alamo Group's
President and CEO commented on 2019 results as follows, "2019 was a
year of great accomplishments for Alamo Group, along with
several challenges that impacted our results more than we
anticipated. Certainly, the accomplishments, largely
dominated by three acquisitions including our largest ever,
Morbark, greatly increase our platform for future growth and
broadens our product offering in a complementary way that takes us
into some new, but related markets. Our achievements were not
limited just to acquisitions. We also introduced some
significant new products such as our Mantis range of prime movers
to complement our various Industrial Division products and our
remote control RoboCut line which has application in both our Ag
and Industrial markets, among other new products. Operationally, we
built a new manufacturing plant in Wisconsin to facilitate the consolidation of
our Super Products operation from multiple locations to a single,
more efficient facility, that is just now starting up
production. We also expanded our Tenco plant in Canada to allow us to consolidate the
manufacturing from our nearby RPM facility. Both of these
support our ongoing strategy focused on fewer, bigger and more
efficient locations. The above are just a few examples of the
many product and operational developments we continue to make which
should benefit our Company for years to come.
"Additionally, we reorganized our corporate structure going from
three operating divisions to two, which we feel will better align
our focus along product lines. This should allow our various
units to exchange information and work together in a more cost
effective manner.
"But, as indicated previously, there were certainly challenges
during the year. Some of these were not new , such as the
ongoing weakness in the agricultural markets worldwide. The
U.S. markets for our agricultural products remained weak throughout
the past year and Europe, which
had seemed a little more stable going into 2019, exhibited slowing
conditions as the year progressed. Some of our other
agricultural markets such as Brazil and Australia were soft as well, made worse in
Australia by major, widespread
wildfires. Our Industrial markets were also not immune to softer
market conditions as several of our products experienced some
slowdown due to general weakening in the overall industrial
marketplace.
"While we are very pleased with the acquisitions we were able to
complete in 2019, there were certainly challenges for a company our
size to make over $400 million worth
of investments in new companies in one year. Certainly, there
were direct acquisition related expenses such as legal, due
diligence fees and costs associated with our new credit facility
and other expenses; but, there were other indirect costs along with
many of our staff being involved in various phases of the
acquisitions.
"And, of course, there are other new costs that come as a result
of the acquisitions as we move ahead. Some of these costs,
such as higher interest expense and certain integration activities
involve real outlays of cash; whereas, others such as amortization
of intangibles and expensing the mandatory write up of inventory
valuations are non-cash expenses. But, we believe the
benefits our Company will realize from these new developments will
exceed these costs and be accretive to our company's 2020 results
and excellent contributors to Alamo's long-term profitability.
"We also are pleased that as we moved into 2020, we started to
see some positive signs in some of the areas where we experienced
challenges last year. In our Agricultural Division, our
bookings in the fourth quarter were 45.9% above the previous year's
fourth quarter. While this is certainly not a trend, any
improvement in the agricultural market is a welcome
development. Even our Industrial Division, which has
generally exhibited a high level of stability over the years,
rebounded somewhat in the fourth quarter of 2019 from the softer
than expected showing in the third quarter. And, when you
include the acquisitions, our backlog ended the year at
$261.0 million compared to the
previous year's level of $240.2
million.
"As a result of the above developments, we are optimistic about
the outlook for Alamo Group for 2020 and beyond. The recent
acquisitions, new products, and our operational initiatives should
all lead to significant growth for our Company. Plus the
stability of our core products should continue to benefit us and
hopefully we are starting to see some signs of improvement in areas
that have been challenging. We are also continuously monitoring
various developments globally that could impact us such as the
coronavirus situation in Asia, the
trade dispute between the U.S. and China which is still not fully resolved,
Brexit related issues which should come to a head later this year,
the apparent slowing growth rates in Europe and other issues that could affect our
markets. As always, we feel the sooner we react to changing
conditions, the more we are able to mitigate the impact.
"As a result of the developments in 2019, we at Alamo Group will
be heavily focused on our internal operations in 2020.
Integrating the recent acquisitions, starting to realize the
synergies we identified related to these developments, a strong
focus on cash management and debt reduction and realizing the
benefits of our other operational initiatives - all of these will
be major focuses for us in 2020, which should result in not only
growth at the top line, but even more improvement in our operating
margins and bottom line results. Therefore, we feel good
about our prospects for 2020 and we appreciate all the support we
have received from our staff, our suppliers, our customers and our
shareholders in this process."
Earnings Conference Call
Alamo Group will host a conference call to discuss fourth
quarter and year end 2019 financial results on Friday, February 28, 2020 at 11:00 a.m. ET. Hosting the call will be members
of senior management.
Individuals wishing to participate in the conference call should
dial 800-367-2403 (domestic) or 334-777-6978 (international). For
interested individuals unable to join the call, a replay will be
available until Wednesday, March 4,
2020 by dialing 888-203-1112 (domestic) or 719-457-0820
(internationally), passcode 3971238.
The live broadcast of Alamo Group Inc.'s quarterly conference
call will be available online at the Company's website,
www.alamo-group.com (under "Investor Relations/Events &
Presentations") on Friday, February 28,
2020, beginning at 11:00 a.m.
ET. The online replay will follow shortly after the call
ends and will be archived on the Company's website for 60 days.
About Alamo Group
Alamo Group is a leader in the design, manufacture, distribution
and service of high quality equipment for infrastructure
maintenance, agriculture and other applications. Our products
include truck and tractor mounted mowing and other vegetation
maintenance equipment, street sweepers, snow removal equipment,
excavators, vacuum trucks, other industrial equipment, agricultural
implements, forestry equipment and related after-market parts and
services. The Company, founded in 1969, has approximately 4,270
employees and operates 30 plants in North
America, Europe,
Australia and Brazil as of December
31, 2019. The corporate offices of Alamo Group Inc.
are located in Seguin, Texas.
Forward Looking Statements
This release contains forward-looking statements that are
made pursuant to the safe harbor provisions of the Private
Securities Litigation Reform Act of 1995. Forward-looking
statements involve known and unknown risks and uncertainties, which
may cause the Company's actual results in future periods to differ
materially from forecasted results. Among those factors which could
cause actual results to differ materially are the following: market
demand, competition, weather, seasonality, currency-related issues,
and other risk factors listed from time to time in the Company's
SEC reports. The Company does not undertake any obligation to
update the information contained herein, which speaks only as of
this date.
(Tables Follow)
(1) This is a non-GAAP financial measure. For more
information relating to this measure including a reconciliation of
the non-GAAP financial measure to the comparable GAAP financial
measure refer to "Non-GAAP Financial Measure Reconciliation" below
and the Attachments thereto
Alamo Group Inc.
and Subsidiaries
Condensed
Consolidated Balance Sheets
(in thousands)
(Unaudited)
|
|
|
|
|
December
31,
2019
|
December
31,
2018
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
42,311
|
|
|
|
$
|
34,043
|
|
|
Accounts receivable,
net
|
|
237,837
|
|
|
|
228,098
|
|
|
Inventories
|
|
267,674
|
|
|
|
176,630
|
|
|
Other current
assets
|
|
23,006
|
|
|
|
14,072
|
|
|
Total current
assets
|
|
570,828
|
|
|
|
452,843
|
|
|
|
|
|
|
|
|
|
Rental equipment,
net
|
|
56,467
|
|
|
|
43,978
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
160,725
|
|
|
|
87,230
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
198,022
|
|
|
|
83,243
|
|
|
Intangible
assets
|
|
206,272
|
|
|
|
48,857
|
|
|
Other non-current
assets
|
|
20,449
|
|
|
|
5,482
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,212,763
|
|
|
|
$
|
721,633
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
81,986
|
|
|
|
$
|
54,083
|
|
|
Income taxes
payable
|
|
2,362
|
|
|
|
2,865
|
|
|
Accrued
liabilities
|
|
59,686
|
|
|
|
43,785
|
|
|
Current maturities of
long-term debt and finance lease obligations
|
|
18,840
|
|
|
|
119
|
|
|
Total current
liabilities
|
|
162,874
|
|
|
|
100,852
|
|
|
|
|
|
|
|
|
|
Long-term debt, net
of current maturities
|
|
425,141
|
|
|
|
85,179
|
|
|
Long term tax
payable
|
|
7,432
|
|
|
|
6,120
|
|
|
Deferred pension
liability
|
|
1,844
|
|
|
|
1,944
|
|
|
Other long-term
liabilities
|
|
19,254
|
|
|
|
8,436
|
|
|
Deferred income
taxes
|
|
26,461
|
|
|
|
11,731
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
569,757
|
|
|
|
507,371
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,212,763
|
|
|
|
$
|
721,633
|
|
|
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
Fourth Quarter
Ended
|
|
Year
Ended
|
|
12/31/2019
|
|
12/31/2018
|
|
12/31/2019
|
|
12/31/2018
|
Net sales:
|
|
|
|
|
|
|
|
Industrial
|
$
|
222,440
|
|
|
$
|
172,014
|
|
|
$
|
768,454
|
|
|
$
|
638,198
|
|
Agricultural
|
77,749
|
|
|
84,024
|
|
|
350,684
|
|
|
370,624
|
|
Total Net
Sales
|
300,189
|
|
|
256,038
|
|
|
1,119,138
|
|
|
1,008,822
|
|
|
|
|
|
|
|
|
|
Cost of Sales
|
232,113
|
|
|
193,406
|
|
|
845,911
|
|
|
752,707
|
|
Gross Margin
|
68,076
|
|
|
62,632
|
|
|
273,227
|
|
|
256,115
|
|
|
22.7
|
%
|
|
24.5
|
%
|
|
24.4
|
%
|
|
25.4
|
%
|
|
|
|
|
|
|
|
|
Selling, general and
administration expense
|
47,261
|
|
|
37,065
|
|
|
172,921
|
|
|
151,522
|
|
Amortization
Expense
|
2,577
|
|
|
875
|
|
|
5,658
|
|
|
3,505
|
|
Income from Operations
|
18,238
|
|
|
24,692
|
|
|
94,648
|
|
|
101,088
|
|
|
6.1
|
%
|
|
9.6
|
%
|
|
8.5
|
%
|
|
10.0
|
%
|
|
|
|
|
|
|
|
|
Interest Expense
|
(5,525)
|
|
|
(1,260)
|
|
|
(10,747)
|
|
|
(5,493)
|
|
Interest Income
|
367
|
|
|
101
|
|
|
1,229
|
|
|
410
|
|
Other Income
|
(353)
|
|
|
(983)
|
|
|
(795)
|
|
|
(1,474)
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
12,727
|
|
|
22,550
|
|
|
84,335
|
|
|
94,531
|
|
Provision for income taxes
|
3,159
|
|
|
5,961
|
|
|
21,429
|
|
|
21,045
|
|
|
|
|
|
|
|
|
|
Net Income
|
$
|
9,568
|
|
|
$
|
16,589
|
|
|
$
|
62,906
|
|
|
$
|
73,486
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
$
|
0.81
|
|
|
$
|
1.42
|
|
|
$
|
5.36
|
|
|
$
|
6.30
|
|
|
|
|
|
|
|
|
|
Diluted
|
$
|
0.81
|
|
|
$
|
1.41
|
|
|
$
|
5.33
|
|
|
$
|
6.25
|
|
|
|
|
|
|
|
|
|
Average common shares:
|
|
|
|
|
|
|
|
Basic
|
11,744
|
|
|
11,693
|
|
|
11,729
|
|
|
11,660
|
|
|
|
|
|
|
|
|
|
Diluted
|
11,811
|
|
|
11,768
|
|
|
11,800
|
|
|
11,761
|
|
|
|
|
|
|
|
|
|
Alamo Group Inc.
Non-GAAP Financial Measures
Reconciliation
From time to time, Alamo Group Inc. may disclose certain
"non-GAAP financial measures" in the course of its earnings
releases, earnings conference calls, financial presentations and
otherwise. For these purposes, "GAAP" refers to generally
accepted accounting principles in the United States. The
Securities and Exchange Commission (SEC) defines a "non-GAAP
financial measure" as a numerical measure of historical or future
financial performance, financial positions, or cash flows that is
subject to adjustments that effectively exclude or include amounts
from the most directly comparable measure calculated and presented
in accordance with GAAP. Non-GAAP financial measures
disclosed by Alamo Group are provided as additional information to
investors in order to provide them with greater transparency about,
or an alternative method for assessing, our financial condition and
operating results. These measures are not in accordance with,
or a substitute for, GAAP and may be different from, or
inconsistent with, non-GAAP financial measures used by other
companies. Whenever we refer to a non-GAAP financial measure,
we will also generally present the most directly comparable
financial measure calculated and presented in accordance with GAAP,
along with a reconciliation of the differences between the non-GAAP
financial measure we reference and such comparable GAAP financial
measure.
Attachment 1 discloses the impact of the Company's recently
completed acquisitions upon Sales, Operating Income and Net Income
all of which are non-GAAP financial measures. Attachment 2
discloses Adjusted Operating Income, Adjusted Net Income and
Adjusted Diluted EPS, each adjusted to exclude the impact of
the recently completed acquisitions, related transaction costs and
related interest expense, all of which are non-GAAP financial
measures. Attachment 3 discloses a non-GAAP financial
presentation related to the impact of currency translation on net
sales by division. Attachment 4 shows the net change in our
total debt net of cash and earnings before interest, taxes,
depreciation and amortization ("EBITDA") and Adjusted EBITDA
excluding the impact of the step-up inventory charge at Morbark,
all of which are non-GAAP financial measures. The Company
considers this information useful to investors to allow better
comparability of period-to-period operating performance.
Attachment
1
Alamo Group
Inc.
Non-GAAP Financial
Reconciliation
(in
thousands)
(Unaudited)
|
|
Impact of
Acquisitions
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Twelve Months
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Net Sales
(consolidated) - GAAP
|
|
$
|
300,189
|
|
|
$
|
256,038
|
|
|
$
|
1,119,138
|
|
|
$
|
1,008,822
|
|
(less:
net sales attributable to acquisitions)
|
|
(43,784)
|
|
|
—
|
|
|
(71,463)
|
|
|
—
|
|
Net Sales less
acquisitions (consolidated) - non-GAAP
|
|
$
|
256,405
|
|
|
$
|
256,038
|
|
|
$
|
1,047,675
|
|
|
$
|
1,008,822
|
|
|
|
|
|
|
|
|
|
|
Net Sales (Industrial
Division) - GAAP
|
|
$
|
222,440
|
|
|
$
|
172,014
|
|
|
$
|
768,454
|
|
|
$
|
638,198
|
|
(less:
net sales attributable to acquisition)
|
|
(43,784)
|
|
|
—
|
|
|
(71,463)
|
|
|
—
|
|
Net Sales less
acquisitions (N.A. Industrial Division) - non-GAAP
|
|
$
|
178,656
|
|
|
$
|
172,014
|
|
|
$
|
696,991
|
|
|
$
|
638,198
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(Agricultural Division) - GAAP
|
|
$
|
77,749
|
|
|
$
|
84,024
|
|
|
$
|
350,684
|
|
|
$
|
370,624
|
|
(less:
net sales attributable to acquisitions)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net Sales less
acquisitions (N.A. Agricultural Division) - non-GAAP
|
|
$
|
77,749
|
|
|
$
|
84,024
|
|
|
$
|
350,684
|
|
|
$
|
370,624
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(consolidated) - GAAP
|
|
$
|
18,238
|
|
|
$
|
24,692
|
|
|
$
|
94,648
|
|
|
$
|
101,088
|
|
(adjust:
operating loss attributable to acquisitions)
|
|
2,805
|
|
|
—
|
|
|
1,676
|
|
|
—
|
|
Operating Income
less acquisitions (consolidated) - non-GAAP
|
|
$
|
21,043
|
|
|
$
|
24,692
|
|
|
$
|
96,324
|
|
|
$
|
101,088
|
|
|
|
|
|
|
|
|
|
|
Net Income
(consolidated) - GAAP
|
|
$
|
9,568
|
|
|
$
|
16,589
|
|
|
$
|
62,906
|
|
|
$
|
73,486
|
|
(adjust:
net loss attributable to acquisitions)
|
|
2,366
|
|
|
—
|
|
|
1,525
|
|
|
—
|
|
Net Income less
acquisitions (consolidated) - non-GAAP
|
|
$
|
11,934
|
|
|
$
|
16,589
|
|
|
$
|
64,431
|
|
|
$
|
73,486
|
|
|
|
|
|
|
|
|
|
|
Attachment
2
Alamo Group
Inc.
Non-GAAP Financial
Reconciliation
(in thousands,
except per share numbers)
(Unaudited)
|
|
Impact of
Acquisitions, Acquisition Expenses, and Tax Reform
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Year
Ended
|
|
|
December
31,
|
|
December
31,
|
|
|
2019
|
|
2018
|
|
2019
|
|
2018
|
|
|
|
|
|
|
|
|
|
Operating Income -
GAAP
|
|
$
|
18,238
|
|
|
$
|
24,692
|
|
|
$
|
94,648
|
|
|
$
|
101,088
|
|
(adjust: results from acquisitions)
|
|
|
|
|
|
|
|
|
earnings from acquisitions
|
|
(2,154)
|
|
|
—
|
|
|
(3,774)
|
|
|
—
|
|
acquisition inventory step-up charge
|
|
3,251
|
|
|
—
|
|
|
3,251
|
|
|
—
|
|
amortization expense
|
|
1,708
|
|
|
—
|
|
|
2,199
|
|
|
—
|
|
(add:
transaction cost relating to acquisitions)
|
|
731
|
|
|
—
|
|
|
1,940
|
|
|
—
|
|
Adjusted Operating Income - non-GAAP
|
|
$
|
21,774
|
|
|
$
|
24,692
|
|
|
$
|
98,264
|
|
|
$
|
101,088
|
|
|
|
|
|
|
|
|
|
|
Net Income -
GAAP
|
|
$
|
9,568
|
|
|
$
|
16,589
|
|
|
$
|
62,906
|
|
|
$
|
73,486
|
|
Adjustments (after
tax):
|
|
|
|
|
|
|
|
|
(less: new tax
legislation)
|
|
—
|
|
|
(336)
|
|
|
—
|
|
|
(3,331)
|
|
Adjusted Net Income - non-GAAP
|
|
$
|
9,568
|
|
|
$
|
16,253
|
|
|
$
|
62,906
|
|
|
$
|
70,155
|
|
(add: results
from acquisitions)
|
|
2,366
|
|
|
—
|
|
|
1,525
|
|
|
—
|
|
(add:
transaction cost relating to acquisitions)
|
|
545
|
|
|
—
|
|
|
1,447
|
|
|
—
|
|
(add: interest
expense relating to acquisitions)
|
|
3,028
|
|
|
—
|
|
|
3,967
|
|
|
—
|
|
Acquisition Adjusted Net Income - non-GAAP
|
|
$
|
15,507
|
|
|
$
|
16,253
|
|
|
$
|
69,845
|
|
|
$
|
70,155
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS -
GAAP
|
|
$
|
0.81
|
|
|
$
|
1.41
|
|
|
$
|
5.33
|
|
|
$
|
6.25
|
|
(less: new tax
legislation)
|
|
—
|
|
|
(0.03)
|
|
|
—
|
|
|
(0.28)
|
|
Adjusted Diluted EPS - non-GAAP
|
|
$
|
0.81
|
|
|
$
|
1.38
|
|
|
$
|
5.33
|
|
|
$
|
5.97
|
|
(add: results
from acquisitions)
|
|
0.20
|
|
|
—
|
|
|
0.13
|
|
|
—
|
|
(add:
transaction cost relating to acquisitions)
|
|
0.05
|
|
|
—
|
|
|
0.12
|
|
|
—
|
|
(add: interest
expense relating to acquisitions)
|
|
0.26
|
|
|
—
|
|
|
0.34
|
|
|
—
|
|
Acquisition Adjusted Diluted EPS - non-GAAP
|
|
$
|
1.32
|
|
|
1.38
|
|
|
5.92
|
|
|
5.97
|
|
Attachment
3
Alamo Group
Inc.
Non-GAAP Financial
Reconciliation
(in
thousands)
(Unaudited)
|
|
Impact of Currency
Translation on Net Sales by Division
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
December 31,
|
|
|
|
Change due to
currency
translation
|
|
2019
|
|
2018
|
|
% change from
2018
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
$
|
222,440
|
|
|
$
|
172,014
|
|
|
29.3
|
%
|
|
$
|
(412)
|
|
|
(0.2)
|
%
|
Agricultural
|
77,749
|
|
|
84,024
|
|
|
(7.5)
|
%
|
|
(618)
|
|
|
(0.7)
|
%
|
Total
Net Sales
|
$
|
300,189
|
|
|
$
|
256,038
|
|
|
17.2
|
%
|
|
$
|
(1,030)
|
|
|
(0.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twelve Months
Ended
December 31,
|
|
|
|
Change due to
currency
translation
|
|
2019
|
|
2018
|
|
% change from
2018
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
$
|
768,454
|
|
|
$
|
638,198
|
|
|
20.4
|
%
|
|
$
|
(5,059)
|
|
|
(0.8)
|
%
|
Agricultural
|
350,684
|
|
|
370,624
|
|
|
(5.4)
|
%
|
|
(8,680)
|
|
|
(2.3)
|
%
|
Total
Net Sales
|
$
|
1,119,138
|
|
|
$
|
1,008,822
|
|
|
10.9
|
%
|
|
$
|
(13,739)
|
|
|
(1.4)
|
%
|
|
|
|
|
|
|
|
|
|
|
Attachment
4
Alamo Group
Inc.
Non-GAAP Financial
Reconciliation
(in
thousands)
(Unaudited)
|
|
Consolidated Net
Change of Total Debt, Net of Cash
|
|
|
|
|
|
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
Net
Change
|
|
|
|
|
|
|
|
Current
maturities
|
|
$
|
18,840
|
|
|
$
|
119
|
|
|
|
Long-term debt, net
of current
|
|
425,141
|
|
|
85,179
|
|
|
|
Total Debt
|
|
$
|
443,981
|
|
|
$
|
85,298
|
|
|
|
|
|
|
|
|
|
|
Total Cash
|
|
42,311
|
|
|
34,043
|
|
|
|
Total Debt Net of
Cash
|
|
$
|
401,670
|
|
|
$
|
51,255
|
|
|
$
|
(350,415)
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
|
|
Income from operations
|
|
|
$
|
94,648
|
|
|
$
|
101,088
|
|
Depreciation
|
|
|
24,307
|
|
|
19,609
|
|
Amortization
|
|
|
5,953
|
|
|
3,726
|
|
EBITDA
|
|
|
$
|
124,908
|
|
|
$
|
124,423
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
|
Twelve Months
Ended
|
|
|
|
December 31,
2019
|
|
December 31,
2018
|
|
|
|
|
|
|
Income from operations
|
|
|
$
|
94,648
|
|
|
$
|
101,088
|
|
adjust:
acquisition inventory step-up charge
|
|
|
3,251
|
|
|
—
|
|
Adjusted Income from operations
|
|
|
97,899
|
|
|
101,088
|
|
Depreciation
|
|
|
24,307
|
|
|
19,609
|
|
Amortization
|
|
|
5,953
|
|
|
3,726
|
|
Adjusted
EBITDA
|
|
|
$
|
128,159
|
|
|
$
|
124,423
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/alamo-group-announces-2019-fourth-quarter-and-year-end-results-301013015.html
SOURCE Alamo Group Inc.