SEGUIN, Texas, July 29, 2020 /PRNewswire/ -- Alamo Group Inc.
(NYSE: ALG) today reported results for the second quarter ended
June 30, 2020.
Highlights for the Quarter
- Net sales for the second quarter of $268.6 million, down 5.8%
-
- Industrial Division net sales $182.3
million, down 6.2%
- Agricultural Division net sales $86.4
million, down 5.0%
- Net income for the second quarter of $13.0 million, down 37.2%
- Record net sales for the first six months of $583.1 million, up 6.6%
- Net income for the first six months of $28.5 million, down 20.6%
- EBITDA for the first six months of $68.9
million, up 5.6%(1)
- Reduced total debt outstanding during the quarter by
$51.5 million
- Backlog at $216.6 million, down
5.3% from the second quarter of 2019 and down 6.9% compared to the
first quarter of 2020
Summary of Results
Alamo Group's net sales for the second quarter of 2020 were
$268.6 million compared to net sales
of $285.2 million in the second
quarter of 2019, a decrease of 5.8%. Net income for the
quarter was $13.0 million, or
$1.10 per diluted share, compared to
$20.7 million, or $1.75 per diluted share, in the previous year's
second quarter, a decrease of 37.2% in net income.
For the first six months of 2020 net sales were a record
$583.1 million compared to
$547.1 million in the previous year's
first six month period, an increase of 6.6%. Net income for
the first half of 2020 was $28.5
million, or $2.41 per diluted
share, versus $35.9 million, or
$3.05 per diluted share, for the same
period in 2019, a decrease of 20.6% in net income.
The results for the second quarter and first six months of 2020
include the effects of the acquisition of Dutch Power, which was
completed in March 2019, and the
acquisition of Morbark, completed in October 2019. Together
these acquisitions contributed $58.0
million to net sales and $2.5
million to net income in the second quarter of 2020 compared
to $14.0 million in net sales and
$0.9 million in net income in the
second quarter of 2019. For the first six months of 2020,
these acquisitions contributed $124.5
million to net sales and $6.0
million to net income compared to $17.6 million in net sales and $1.1 million in net income in the first six
months of 2019. The above results also include the negative
effects of non-cash inventory step up charges of approximately
$0.7 million in the second quarter of
2020 and $2.7 million in the first
six months of 2020 related to the Morbark acquisition. The
acquisition of Dixie Chopper was completed in September 2019, however its contribution to
consolidated results was not material.
Alamo Group's results for the second quarter and first six
months of 2020 were affected by issues related to the COVID-19
pandemic which began to materially impact the Company in March of
the current year and is ongoing. In late March and throughout
most of April, the Company experienced multiple plant closures most
notably in France and England and to a lesser extent in the U.S. and
Canada. The plants have now
reopened and currently all Alamo Group manufacturing facilities are
functioning at various levels of operation based on demand.
In total, out of a workforce of approximately 4,270 employees at
the beginning of 2020, we have 550 workers on some form of a
furlough, temporary layoff or other such arrangements as of the end
of June. In addition, we have had permanent reductions in
work force totaling about 200 positions. We also have about
269 employees involved in various government sponsored work share
programs working reduced hours. In addition to the above, we
have approximately 225 employees working remotely. All the
above numbers change on a regular basis as a result of changing
conditions and production needs to meet current market
demand. For the most part the Company, supported by its
supply chain, is functioning in a somewhat normal, though at a
reduced level of operation and is able to meet most demand in a
timely fashion.
Results by Division
Net sales for Alamo Group's Industrial Division in the second
quarter of 2020 were $182.3 million,
compared to $194.3 million in the
prior year, a decrease of 6.2%. The Division's income from
operations for the quarter was $13.9
million compared to $21.5
million in the second quarter of 2019, a decrease of
35.5%. For the first six months of 2020, the Industrial
Division's net sales were $412.2
million versus $367.8 million
in the first six months of 2019, an increase of 12.1%. The
Division's income from operations for the first six months of 2020
was $32.2 million versus $38.5 million in the same period of the prior
year, a decrease of 16.3%.
The Industrial Division's results included the effects of the
acquisitions of Dutch Power and Morbark mentioned previously.
These acquisitions contributed $58.0
million to net sales and $3.8
million to income from operations in the second quarter of
2020 compared to $14.0 million in net
sales and $1.2 million in income from
operations contributed by Dutch Power in the previous year's second
quarter. For the first six months of 2020, these acquisitions
contributed $124.5 million to the
Division's net sales and $8.1 million
to income from operations compared to $17.6
million in net sales and $1.5
million in income from operations contributed by Dutch Power
in the first six months of 2019. The Industrial
Division's results include the negative effects of non-cash
inventory step up charges of approximately $0.7 million in the second quarter of 2020 and
$2.7 million for the first six months
as mentioned above. While the Industrial Division's sales
benefited from the acquisition of Dutch Power and Morbark, this was
more than offset in the second quarter by reduced sales related to
the COVID-19 pandemic and the impact this has had on demand for the
Division's products.
The Company's Agricultural Division net sales in the second
quarter of 2020 were $86.4 million
compared to $90.9 million in the
prior year's second quarter, a decrease of 5.0%. The
Division's income from operations for the quarter was $8.8 million compared to $7.8 million in 2019, an increase of 12.2%. For
the first six months of 2020, the Agricultural Division's net sales
were $170.9 million versus
$179.3 million in the prior year, a
decrease of 4.7%. The Division's income from operations for
the first six months of 2020 was $14.3
million compared to $13.5
million in the prior year, an increase of 6.2%, as a
result of cost control and a favorable product mix. The
Agricultural Division's results have been impacted by the
repercussions from the COVID-19 pandemic, though to a lesser extent
than our Industrial Division. Also, the Division's North
American operations have held up better in the short term than its
European operations, which experienced more operational and demand
issues during the second quarter.
Comments on Results
Ron Robinson, Alamo Group's
President and Chief Executive Officer, commented on Alamo's second quarter results as
follows: "While our second quarter results were down, given
the environment in which we continue to operate, they were in line
with our expectations. I am proud of all the dedicated people
at our Company who have worked so hard to achieve these results,
given the many operational challenges we experienced - temporary
plant closures, supply chain issues, stay at home directives,
customer constraints and other issues, which all effected our
operations during the quarter, but we managed to continue to
function throughout this time and generally deliver our products
when and as required.
"Fortunately, many of these challenging conditions with
functionality for us, our vendors and our customers have eased and
currently all of our facilities are now operating, though generally
at reduced levels. The same is true for our supply
chain. Our customers are also operating at a more effective
level than at the beginning of the crisis as communication levels
have generally improved. We hope the progress we are
seeing does not move in a negative direction as many areas in which
we operate are dealing with increased levels of cases related to
COVID-19.
"While we are glad to see the improved functionality we are
concerned about the effects this pandemic is having on our markets
and the overall economic environment. We feel the challenging
business climate will impact our business for the balance of 2020
and into next year as well. Fortunately, both our Industrial
and Agricultural customers are using our equipment on a regular
basis, but budget constraints and lower incomes are impacting new
order placements. Our bookings are still active and coming in
at a consistent pace, but at levels that are below our typical
pace. Our Agricultural Division products are holding up at a
little better pace since the agricultural industry is functioning
reasonably well and seems to have less downside since this sector
had already been operating at a reduced level for the last several
years. Our Industrial Division equipment, which is highly
focused on infrastructure maintenance operations for various
governmental entities is seeing more challenging conditions as
reduced levels of tax revenue has had a heavier impact on
governmental operating budgets. Still, we feel Alamo should continue to hold up a little
better than many other industrial equipment manufacturers and
rebound more quickly when conditions start to improve as a result
of the historic stability of the types of equipment we provide,
which are used regularly even during times such as these and need
replacing on a steady basis.
"We also believe, while our results will be negatively impacted
during this downturn, as evidenced by past economic upheavals, our
cash flow should remain strong as demonstrated in our second
quarter results. Despite reduced sales and earnings, we paid
down over $50 million in debt during
the quarter, while maintaining high cash levels of over
$80 million. We achieved this
through a combination of balance sheet management and expense
control as we focused on reducing inventory and receivables in line
with sales reductions and cut back on capital spending among other
actions. We feel such measures will allow us to maintain our
financial stability going forward, even as economic conditions
remain soft.
"Alamo is also continuing to
benefit from our backlog which is still at a healthy level of
$217 million. This came down
6.9% during the second quarter, compared to the first quarter of
2020, but gives us a good base to support our operations as we move
into the second half of the year. Certainly, new bookings are
the key to our ongoing results and while they are continuing at a
steady pace, we would like to see them at a higher level than we
are currently experiencing. Until they return to a more
historic level, we will continue to take all reasonable actions to
manage our business including adjusting our staff levels
commensurate with production needs, controlling our expenses,
limiting capital expenditures and other actions to maintain
our financial stability and ensure Alamo Group can continue to meet
our customers' needs for the benefit of our Company, our employees,
our vendors and our stakeholders. We thank you for your
support during these challenging times."
Earnings Conference Call
Alamo Group will host a conference call to discuss the results
on Thursday, July 30, 2020 at
3:00 p.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 Tuesday, August 04,
2020 by dialing 888-203-1112 (domestic) or 719-457-0820
(internationally), passcode 2270876.
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 & and
Presentations") on Thursday, July 30,
2020, beginning at 3:00 p.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 4,070
employees and operates 30 plants in North
America, Europe,
Australia and Brazil as of June
30, 2020. 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: overall market demand, continuing impacts from
the COVID-19 pandemic including more significant supply chain
disruptions, further reductions in customer demand, sales and
profitability declines, operational disruptions, full or partial
facility closures, and other similar impacts, 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 or other
information relating to our GAAP financial measures that we have
provided to investors in order to allow greater transparency and a
deeper understanding of our financial condition and operating
results. For a reconciliation of the non-GAAP financial
measure or for a more detailed explanation of financial results,
refer to "Non-GAAP Financial Measure Reconciliation" below and the
Attachments thereto.
Alamo Group Inc.
and Subsidiaries
Condensed
Consolidated Balance Sheets
(in thousands)
(Unaudited)
|
|
|
|
|
June 30,
2020
|
June 30,
2019
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
82,002
|
|
|
|
$
|
48,190
|
|
|
Accounts receivable,
net
|
|
229,714
|
|
|
|
267,064
|
|
|
Inventories
|
|
248,706
|
|
|
|
205,910
|
|
|
Other current
assets
|
|
11,691
|
|
|
|
14,940
|
|
|
Total current
assets
|
|
572,113
|
|
|
|
536,104
|
|
|
|
|
|
|
|
|
|
Rental equipment,
net
|
|
48,583
|
|
|
|
51,517
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
156,210
|
|
|
|
105,467
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
195,457
|
|
|
|
93,134
|
|
|
Intangible
assets
|
|
198,925
|
|
|
|
62,725
|
|
|
Other non-current
assets
|
|
18,400
|
|
|
|
17,632
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,189,688
|
|
|
|
$
|
866,579
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
63,417
|
|
|
|
$
|
67,391
|
|
|
Income taxes
payable
|
|
2,619
|
|
|
|
1,926
|
|
|
Accrued
liabilities
|
|
52,615
|
|
|
|
47,707
|
|
|
Current maturities of
long-term debt and finance lease obligations
|
|
15,072
|
|
|
|
131
|
|
|
Total current
liabilities
|
|
133,723
|
|
|
|
117,155
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of
current maturities
|
|
423,723
|
|
|
|
166,232
|
|
|
Long-term tax
liability
|
|
6,778
|
|
|
|
6,378
|
|
|
Deferred pension
liability
|
|
1,464
|
|
|
|
1,719
|
|
|
Other long-term
liabilities
|
|
25,361
|
|
|
|
14,340
|
|
|
Deferred income
taxes
|
|
21,488
|
|
|
|
17,923
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
577,151
|
|
|
|
542,832
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,189,688
|
|
|
|
$
|
866,579
|
|
|
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
|
|
|
|
|
|
|
|
Three Months
Ended
|
|
Six Months
Ended
|
|
|
6/30/2020
|
|
6/30/2019
|
|
6/30/2020
|
|
6/30/2019
|
Net sales:
|
|
|
|
|
|
|
|
|
Industrial
|
|
$
|
182,257
|
|
|
$
|
194,304
|
|
|
$
|
412,232
|
|
|
$
|
367,834
|
|
Agricultural
|
|
86,378
|
|
|
90,882
|
|
|
170,851
|
|
|
179,286
|
|
Total
net sales
|
|
268,635
|
|
|
285,186
|
|
|
583,083
|
|
|
547,120
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
200,810
|
|
|
212,053
|
|
|
436,318
|
|
|
410,679
|
|
Gross margin
|
|
67,825
|
|
|
73,133
|
|
|
146,765
|
|
|
136,441
|
|
|
|
25.2
|
%
|
|
25.6
|
%
|
|
25.2
|
%
|
|
24.9
|
%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration expense
|
|
41,551
|
|
|
42,670
|
|
|
92,799
|
|
|
82,517
|
|
Amortization
Expense
|
|
3,613
|
|
|
1,114
|
|
|
7,449
|
|
|
1,969
|
|
Income from operations
|
|
22,661
|
|
|
29,349
|
|
|
46,517
|
|
|
51,955
|
|
|
|
8.4
|
%
|
|
10.3
|
%
|
|
8.0
|
%
|
|
9.5
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(3,941)
|
|
|
(1,935)
|
|
|
(9,460)
|
|
|
(3,385)
|
|
Interest income
|
|
306
|
|
|
330
|
|
|
662
|
|
|
503
|
|
Other income (expense)
|
|
(1,288)
|
|
|
(295)
|
|
|
1,053
|
|
|
(684)
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
17,738
|
|
|
27,449
|
|
|
38,772
|
|
|
48,389
|
|
Provision for income taxes
|
|
4,749
|
|
|
6,782
|
|
|
10,255
|
|
|
12,469
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
12,989
|
|
|
$
|
20,667
|
|
|
$
|
28,517
|
|
|
$
|
35,920
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.10
|
|
|
$
|
1.76
|
|
|
$
|
2.42
|
|
|
$
|
3.07
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
1.10
|
|
|
$
|
1.75
|
|
|
$
|
2.41
|
|
|
$
|
3.05
|
|
|
|
|
|
|
|
|
|
|
Average common shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
11,778
|
|
|
11,726
|
|
|
11,769
|
|
|
11,712
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
11,842
|
|
|
11,798
|
|
|
11,835
|
|
|
11,787
|
|
|
|
|
|
|
|
|
|
|
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, Acquisition Adjusted Net
Income and Acquisition Adjusted Diluted EPS, each adjusted to
exclude the impact of the recently completed acquisitions, 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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Net Sales
(consolidated) - GAAP
|
|
$
|
268,635
|
|
|
$
|
285,186
|
|
|
$
|
583,083
|
|
|
$
|
547,120
|
|
(less: net sales
attributable to acquisitions)
|
|
(57,983)
|
|
|
(14,034)
|
|
|
(124,514)
|
|
|
(17,648)
|
|
Net Sales less
acquisitions (consolidated) - non-GAAP
|
|
$
|
210,652
|
|
|
$
|
271,152
|
|
|
$
|
458,569
|
|
|
$
|
529,472
|
|
|
|
|
|
|
|
|
|
|
Net Sales (Industrial
Division) - GAAP
|
|
$
|
182,257
|
|
|
$
|
194,304
|
|
|
$
|
412,232
|
|
|
$
|
367,834
|
|
(less: net sales
attributable to acquisition)
|
|
(57,983)
|
|
|
(14,034)
|
|
|
(124,514)
|
|
|
(17,648)
|
|
Net Sales less
acquisitions (N.A. Industrial Division) - non-GAAP
|
|
$
|
124,274
|
|
|
$
|
180,270
|
|
|
$
|
287,718
|
|
|
$
|
350,186
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(Agricultural Division) - GAAP
|
|
$
|
86,378
|
|
|
$
|
90,882
|
|
|
$
|
170,851
|
|
|
$
|
179,286
|
|
(less: net sales
attributable to acquisitions)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
Net Sales less
acquisitions (N.A. Agricultural Division) - non-GAAP
|
|
$
|
86,378
|
|
|
$
|
90,882
|
|
|
$
|
170,851
|
|
|
$
|
179,286
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(consolidated) - GAAP
|
|
$
|
22,661
|
|
|
$
|
29,349
|
|
|
$
|
46,517
|
|
|
$
|
51,955
|
|
(less: operating income
attributable to acquisitions)
|
|
(3,830)
|
|
|
(1,200)
|
|
|
(8,134)
|
|
|
(1,452)
|
|
Operating Income
less acquisitions (consolidated) - non-GAAP
|
|
$
|
18,831
|
|
|
$
|
28,149
|
|
|
$
|
38,383
|
|
|
$
|
50,503
|
|
|
|
|
|
|
|
|
|
|
Net Income
(consolidated) - GAAP
|
|
$
|
12,989
|
|
|
$
|
20,667
|
|
|
$
|
28,517
|
|
|
$
|
35,920
|
|
(less: net income
attributable to acquisitions)
|
|
(2,475)
|
|
|
(896)
|
|
|
(5,995)
|
|
|
(1,078)
|
|
Net Income less
acquisitions (consolidated) - non-GAAP
|
|
$
|
10,514
|
|
|
$
|
19,771
|
|
|
$
|
22,522
|
|
|
$
|
34,842
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Six Months
Ended
|
|
|
June
30,
|
|
June
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Operating Income -
GAAP
|
|
$
|
22,661
|
|
|
$
|
29,349
|
|
|
$
|
46,517
|
|
|
$
|
51,955
|
|
(adjust: results from acquisitions)
|
|
|
|
|
|
—
|
|
|
—
|
|
earnings from acquisitions
|
|
(7,297)
|
|
|
(1,447)
|
|
|
(16,522)
|
|
|
(1,699)
|
|
acquisition inventory step-up charge
|
|
711
|
|
|
—
|
|
|
2,662
|
|
|
—
|
|
amortization expense
|
|
2,756
|
|
|
247
|
|
|
5,726
|
|
|
247
|
|
Adjusted Operating
Income - non-GAAP
|
|
$
|
18,831
|
|
|
$
|
28,149
|
|
|
$
|
38,383
|
|
|
$
|
50,503
|
|
|
|
|
|
|
|
|
|
|
Net Income -
GAAP
|
|
$
|
12,989
|
|
|
$
|
20,667
|
|
|
$
|
28,517
|
|
|
$
|
35,920
|
|
(adjust: results from
acquisitions)
|
|
(2,475)
|
|
|
(896)
|
|
|
(5,995)
|
|
|
(1,078)
|
|
(adjust: interest
expense relating to acquisitions)
|
|
1,998
|
|
|
374
|
|
|
5,110
|
|
|
514
|
|
Acquisition
Adjusted Net Income - non-GAAP
|
|
$
|
12,512
|
|
|
$
|
20,145
|
|
|
$
|
27,632
|
|
|
$
|
35,356
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS -
GAAP
|
|
$
|
1.10
|
|
|
$
|
1.75
|
|
|
$
|
2.41
|
|
|
$
|
3.05
|
|
(adjust: results from
acquisitions)
|
|
(0.21)
|
|
|
(0.08)
|
|
|
(0.51)
|
|
|
(0.09)
|
|
(adjust:
interest expense relating to acquisitions)
|
|
0.17
|
|
|
0.03
|
|
|
0.43
|
|
|
0.04
|
|
Acquisition Adjusted Diluted EPS - non-GAAP
|
|
$
|
1.06
|
|
|
$
|
1.70
|
|
|
$
|
2.33
|
|
|
$
|
3.00
|
|
Attachment
3
|
|
Alamo Group
Inc.
Non-GAAP Financial
Reconciliation
(in
thousands)
(Unaudited)
|
|
Impact of Currency
Translation on Net Sales by Division
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
June 30,
|
|
|
|
Change due to
currency
translation
|
|
2020
|
|
2019
|
|
% change
from 2019
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
$
|
182,257
|
|
|
$
|
194,304
|
|
|
(6.2)
|
%
|
|
$
|
(912)
|
|
|
(0.5)
|
%
|
Agricultural
|
86,378
|
|
|
90,882
|
|
|
(5.0)
|
%
|
|
(2,322)
|
|
|
(2.6)
|
%
|
Total
net sales
|
$
|
268,635
|
|
|
$
|
285,186
|
|
|
(5.8)
|
%
|
|
$
|
(3,234)
|
|
|
(1.1)
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Six Months
Ended
June 30,
|
|
|
|
Change due to
currency
translation
|
|
2020
|
|
2019
|
|
% change
from 2019
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
$
|
412,232
|
|
|
$
|
367,834
|
|
|
12.1
|
%
|
|
$
|
(1,703)
|
|
|
(0.5)
|
%
|
Agricultural
|
170,851
|
|
|
179,286
|
|
|
(4.7)
|
%
|
|
(3,691)
|
|
|
(2.1)
|
%
|
Total
net sales
|
$
|
583,083
|
|
|
$
|
547,120
|
|
|
6.6
|
%
|
|
$
|
(5,394)
|
|
|
(1.0)
|
%
|
|
|
|
|
|
|
|
|
|
|
Attachment
4
|
|
Alamo Group
Inc.
Non-GAAP Financial
Reconciliation
(in
thousands)
(Unaudited)
|
|
Consolidated Net
Change of Total Debt, Net of Cash
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
Net
Change
|
|
|
|
|
|
|
|
Current
maturities
|
|
$
|
15,072
|
|
|
$
|
131
|
|
|
|
Long-term debt,net of
current
|
|
423,723
|
|
|
166,232
|
|
|
|
Total debt
|
|
$
|
438,795
|
|
|
$
|
166,363
|
|
|
|
|
|
|
|
|
|
|
Total cash
|
|
82,002
|
|
|
48,190
|
|
|
|
Total Debt Net of
Cash
|
|
$
|
356,793
|
|
|
$
|
118,173
|
|
|
$
|
238,620
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
Six Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
46,517
|
|
|
$
|
51,955
|
|
|
$
|
89,210
|
|
|
$
|
94,648
|
|
Depreciation
|
|
14,565
|
|
|
11,191
|
|
|
27,681
|
|
|
24,307
|
|
Amortization
|
|
7,783
|
|
|
2,079
|
|
|
11,657
|
|
|
5,953
|
|
EBITDA
|
|
$
|
68,865
|
|
|
$
|
65,225
|
|
|
$
|
128,548
|
|
|
$
|
124,908
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
Six Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
June 30,
2020
|
|
June 30,
2019
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
46,517
|
|
|
$
|
51,955
|
|
|
$
|
89,210
|
|
|
$
|
94,648
|
|
adjust:
acquisition inventory step-up charge
|
|
2,662
|
|
|
—
|
|
|
5,913
|
|
|
3,251
|
|
Adjusted Income from
operations
|
|
$
|
49,179
|
|
|
$
|
51,955
|
|
|
$
|
95,123
|
|
|
$
|
97,899
|
|
Depreciation
|
|
14,565
|
|
|
11,191
|
|
|
27,681
|
|
|
24,307
|
|
Amortization
|
|
7,783
|
|
|
2,079
|
|
|
11,657
|
|
|
5,953
|
|
Adjusted
EBITDA
|
|
$
|
71,527
|
|
|
$
|
65,225
|
|
|
$
|
134,461
|
|
|
$
|
128,159
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/alamo-group-announces-2020-second-quarter-results-301102558.html
SOURCE Alamo Group Inc.