SEGUIN, Texas, Oct. 28, 2020 /PRNewswire/ -- Alamo Group
Inc. (NYSE: ALG) today reported results for the third quarter ended
September 30, 2020.
Highlights for the Quarter
- Record net sales for a third quarter of $291.8 million, up 7.3%
-
- Industrial Division net sales $196.2
million, up 10.1%
- Agricultural Division net sales $95.5
million, up 2.0%
- Net income for the third quarter of $20.0 million, up 15.0%
- Record net sales for a first nine months of $874.8 million, up 6.8%
- Net income for the first nine months of $48.6 million, down 9.0%
- EBITDA for the first nine months of $110.8 million, an increase of
14.2%(1)
- Reduced total debt outstanding by $64.7
million during the third quarter and by $116.2 million in the last two quarters
- Backlog at $254.5 million, up
17.5% compared to the second quarter of 2020 and up 18.2% compared
to the third quarter of 2019
Summary of Results
Alamo Group's net sales for the third quarter of 2020 were
$291.8 million compared to net sales
of $271.8 million in the third
quarter of 2019, an increase of 7.3%. Net income for the
quarter was $20.0 million, or
$1.69 per diluted share, compared to
net income of $17.4 million, or
$1.47 per diluted share, in the third
quarter of 2019, an increase of 15.0% in both net income and
diluted earnings per share.
For the first nine months of 2020, net sales were $874.8 million compared to $818.9 million in the previous year, an increase
of 6.8%. Net income for the first nine months of 2020 was
$48.6 million or $4.10 per diluted share, versus $53.3 million or $4.52 per diluted share, for the same period in
2019, a decrease of 9.0%.
The results for the third quarter and first nine months of 2020
include the effects of the acquisition of Dutch Power, which was
completed in March 2019, and the
acquisition of Morbark, which was completed in October 2019.
Together these acquisitions contributed $52.3 million to net sales and $1.9 million to net income in the third quarter
of 2020 compared to $10.0 million in
net sales and $0.2 million loss in
net income in the third quarter of 2019. For the first nine
months of 2020, these acquisitions contributed $176.8 million to net sales and $7.9 million to net income compared to
$27.7 million in net sales and
$0.8 million in net income in the
first nine months of 2019. The above results also include the
negative effects of non-cash inventory step up charges of
approximately $0.9 million in the
third quarter of 2020 and $3.5
million in the first nine 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 during
third quarter 2020.
Alamo Group's results for the third quarter and first nine
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 are ongoing. In late March and
throughout most of April, the Company temporarily experienced
multiple plant closures most notably in France and England and to a lesser extent in the U.S. and
Canada, though generally all
plants were reopened within a few weeks. Currently, all Alamo
Group manufacturing facilities are open and 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, the Company has less than 100 workers on some form of
furlough, temporary layoff or other such arrangements as of the end
of September. In addition. the Company has made permanent
reductions in work force totaling approximately 200
positions. As a result of all the above and including normal
employee turnover and related new hires, total Company employment
as of the end of September 2020 was
approximately 3,950. All the above numbers change on a
regular basis as a result of changing conditions and production
needs to meet market demand. For the most part the Company,
supported by its supply chain, is functioning in a somewhat normal
fashion and is able to meet most market demand in a timely
manner.
It should also be noted that in previous announcements
concerning its operations, the Company commented on a variety of
cost control measures that Alamo Group has undertaken in response
to softer market demand and the overall economic slowdown related
to the COVID-19 situation. While most of these measures are
still in effect, one measure in particular the Company commented on
in its April 7, 2020 operational
update concerned a temporary halt to all U.S. salaried staff merit
pay increases and rolling back any such increases that had already
taken place. As a result of its improved operations and in
order for the Company to stay competitive and to fairly treat its
employees who have contributed so much to our success, effective
October 1, 2020, the Company has
reinstituted merit increases for all affected employees on a go
forward basis. In addition, effective November 1, 2020, the Company reinstituted the
cash portion of the compensation paid to its independent Board
members, which has been suspended since May of this year.
Results by Division
Net sales for Alamo Group's Industrial Division in the third
quarter of 2020 were $196.2 million
compared to $178.2 million in the
prior year, an increase of 10.1%. The Division's income from
operations for the quarter was $19.2
million compared to $14.6
million in the third quarter of 2019, an increase of
31.9%. For the first nine months of 2020, the Industrial
Division's net sales were $608.5
million versus $546.0 million
in the first nine months of 2019, an increase of 11.4%. The
Division's income from operations for the first nine months of 2020
was $51.5 million versus $53.1 million in the same period of the prior
year, a decrease of 3.0%.
The Industrial Division's results include the effects of the
acquisitions of Dutch Power and Morbark mentioned previously.
These acquisitions contributed $52.3
million to net sales and $2.6
million to income from operations in the third quarter of
2020 compared to $10.0 million in net
sales and a $0.3 million loss from
operations contributed by Dutch Power in the previous year's third
quarter. For the first nine months of 2020, these
acquisitions contributed $176.8
million to the Division's net sales and $10.8 million to income from operations compared
to $27.7 million in net sales and
$1.1 million in income from
operations contributed by Dutch Power in the first nine months of
2019. The Industrial Division's results also include the
negative effects of the non-cash inventory step up charges of
approximately $0.9 million in the
third quarter of 2020 and $3.5
million for the first nine months as mentioned
previously. While the Industrial Division's sales were up
both for the quarter and year to date, excluding the contributions
from acquisitions, sales were below last year's level as a result
of market weakness related to the COVID-19 pandemic.
Currently this situation is showing signs of modest improvement,
though not evenly across all product lines, as some areas, such as
forestry, are well above average while others, such as excavators
and vacuum trucks continue to be quite soft. It should be
noted that despite lower organic sales, the Division's income from
operations for the third quarter of 2020 was actually up even
excluding the contributions from acquisitions as a result of cost
control initiatives.
The Company's Agricultural Division net sales in the third
quarter of 2020 were $95.5 million,
compared to $93.6 million in the
prior year's third quarter, an increase of 2.0%. The
Division's income from operations for the quarter was $11.7 million compared to $9.9 million in 2019, an increase of 18.4%.
For the first nine months of 2020, the Agricultural Division's net
sales were $266.4 million versus
$272.9 million in the prior year, a
decrease of 2.4%. The Division's income from operations for
the first nine months of 2020 was $26.0
million compared to $23.3
million in the prior year, an increase of 11.3%.
Alamo's Agricultural Division
results have been impacted by the COVID-19 pandemic, but to a
lesser extent than the Industrial Division. The Company was
pleased to note the organic increase in net sales in the third
quarter of 2020 indicating some strengthening in the overall
agricultural market. Though the sales increase in the third quarter
was modest, income from operations was up over 18% for the quarter
and 11% for the year to date as a result of cost control measures
and favorable product mix.
Comments on Results
Ron Robinson, Alamo Group's
President and Chief Executive Officer, commented on Alamo's third quarter results as
follows: "Despite the ongoing COVID situation and the impact
the global pandemic is having on the economy and our markets in
particular, we are pleased with Alamo Group's results in the third
quarter of 2020. During the second quarter of this year, in
addition to market weakness, we faced a number of operational
challenges and are glad to report most of these have been mitigated
and we saw our markets strengthen as the second quarter
progressed. This positive trend continued into the third
quarter, which exhibited fewer operational issues and continued
market improvement. This was most noticeable in our
Agricultural Division, where sales in the third quarter were
marginally above the previous year. The agricultural sector
in general is showing signs of strengthening, which was evident in
both our sales as well as our increased backlog and should continue
to benefit us for the remainder of 2020 and into 2021.
"Our Industrial Division also showed improvement starting late
in the second quarter and throughout the third quarter of the year,
even though some product lines are doing better than others and it
has not shown as much strengthening as our Agricultural
Division. But, it was good to see some strengthening in
Industrial, particularly since most of the Division's sales are to
governmental entities for infrastructure maintenance and most of
our customers in this sector are experiencing budget issues and
spending constraints. As in past times of economic
challenges, sales of our types of equipment generally hold up a
little better than some other types of industrial machinery, since
our products are used for essential maintenance operations and
continue to wear out on a somewhat regular basis. So far, we
are seeing a continuation of this pattern in the current
downturn.
"I am also pleased to report that despite market challenges
which have impacted our sales, our operating profits have held up
well. While they are down year to date due to the weak second
quarter, they have increased in the third quarter for both of our
operating Divisions, even before the contributions of the
acquisitions we made in 2019. This is the result of the
dedicated efforts of our people Company-wide, who have not only
focused on diligently meeting our customers' needs during this
time, but have done it in an efficient manner with a strong focus
on cost control.
"The same has been true for our cash flow which has continued at
a strong pace allowing us to pay down nearly $65 million in debt in the third quarter, while
at the same time maintaining a high level of cash balances of over
$93 million as of quarter end.
Our third quarter is generally a good one for cash generation due
to seasonality, but with our continued focus on asset management
and limiting capital expenditures, this year was particularly
strong. We know we will give some of this back in the fourth
quarter due somewhat to seasonality and because of increases we are
seeing in bookings. The fourth quarter tends to be one of our
weaker quarters due to holidays and lower operating levels during
winter months by our end users and that should be true this year as
well, but it is encouraging to note the improvements we have seen
in our bookings and backlog. Our backlog in particular was
quite strong finishing the third quarter at $254.5 million which is up 17.5% in the last
three months and is now only 2.5% below our pre-COVID backlog level
at which we started the current year. Though, as with our
sales, the Industrial Division's backlog is softer than the
pre-COVID levels, whereas our Agricultural Division backlog is at
near record levels.
"While we are encouraged by the improvements we are seeing both
in our markets and our operational performance, there remains a lot
of uncertainty which will continue until there is a clearer
resolution to the COVID pandemic, which has been further compounded
in the short term by the uncertainty surrounding the upcoming
elections in the U.S. Still, we are optimistic about the
outlook for Alamo Group as we believe the positive momentum we are
currently experiencing should help our fourth quarter results and
continue into 2021. Certainly we will continue to be
proactive in managing through the pandemic, adjusting our staffing,
controlling our expenses and reacting quickly to any changes
affecting our Company and our business. We remain appreciative of
your support in these times of uncertainty."
Earnings Conference Call
Alamo Group will host a conference call to discuss the results
on Thursday, October 29, 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, November 03,
2020 by dialing 888-203-1112 (domestic) or 719-457-0820
(internationally), passcode 1987728.
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, October 29,
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 3,950
employees and operates 27 plants in North
America, Europe,
Australia and Brazil as of September
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)
|
|
|
September
30,
2020
|
September
30,
2019
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
|
93,515
|
|
|
|
$
|
60,279
|
|
|
Accounts receivable,
net
|
|
217,276
|
|
|
|
243,296
|
|
|
Inventories
|
|
243,529
|
|
|
|
206,516
|
|
|
Other current
assets
|
|
12,835
|
|
|
|
14,386
|
|
|
Total current
assets
|
|
567,155
|
|
|
|
524,477
|
|
|
|
|
|
|
|
|
|
Rental equipment,
net
|
|
44,774
|
|
|
|
56,177
|
|
|
|
|
|
|
|
|
|
Property, plant and
equipment
|
|
155,204
|
|
|
|
106,939
|
|
|
|
|
|
|
|
|
|
Goodwill
|
|
192,976
|
|
|
|
93,468
|
|
|
Intangible
assets
|
|
195,966
|
|
|
|
59,205
|
|
|
Other non-current
assets
|
|
17,384
|
|
|
|
16,127
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
1,173,459
|
|
|
|
$
|
856,393
|
|
|
|
|
|
|
|
|
|
LIABILITIES AND
STOCKHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Trade accounts
payable
|
|
$
|
82,071
|
|
|
|
$
|
69,009
|
|
|
Income taxes
payable
|
|
3,625
|
|
|
|
2,516
|
|
|
Accrued
liabilities
|
|
56,916
|
|
|
|
48,525
|
|
|
Current maturities of
long-term debt and finance lease obligations
|
|
15,068
|
|
|
|
113
|
|
|
Total current
liabilities
|
|
157,680
|
|
|
|
120,163
|
|
|
|
|
|
|
|
|
|
Long-term debt, net of
current maturities
|
|
359,021
|
|
|
|
150,192
|
|
|
Long-term tax
liability
|
|
6,778
|
|
|
|
6,710
|
|
|
Deferred pension
liability
|
|
1,274
|
|
|
|
1,606
|
|
|
Other long-term
liabilities
|
|
25,817
|
|
|
|
14,190
|
|
|
Deferred income
taxes
|
|
17,676
|
|
|
|
12,480
|
|
|
|
|
|
|
|
|
|
Total stockholders'
equity
|
|
605,213
|
|
|
|
551,052
|
|
|
|
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
1,173,459
|
|
|
|
$
|
856,393
|
|
|
Alamo Group Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share amounts) (Unaudited)
|
|
|
|
Three Months
Ended
|
|
Nine Months
Ended
|
|
|
9/30/2020
|
|
9/30/2019
|
|
9/30/2020
|
|
9/30/2019
|
Net sales:
|
|
|
|
|
|
|
|
|
Industrial
|
|
$
|
196,241
|
|
|
$
|
178,180
|
|
|
$
|
608,473
|
|
|
$
|
546,014
|
|
Agricultural
|
|
95,518
|
|
|
93,649
|
|
|
266,369
|
|
|
272,935
|
|
Total
net sales
|
|
291,759
|
|
|
271,829
|
|
|
874,842
|
|
|
818,949
|
|
|
|
|
|
|
|
|
|
|
Cost of sales
|
|
213,123
|
|
|
203,119
|
|
|
649,441
|
|
|
613,798
|
|
Gross margin
|
|
78,636
|
|
|
68,710
|
|
|
225,401
|
|
|
205,151
|
|
|
|
27.0
|
%
|
|
25.3
|
%
|
|
25.8
|
%
|
|
25.1
|
%
|
|
|
|
|
|
|
|
|
|
Selling, general and
administration expense
|
|
44,069
|
|
|
43,143
|
|
|
136,868
|
|
|
125,660
|
|
Amortization
expense
|
|
3,644
|
|
|
1,112
|
|
|
11,093
|
|
|
3,081
|
|
Income from operations
|
|
30,923
|
|
|
24,455
|
|
|
77,440
|
|
|
76,410
|
|
|
|
10.6
|
%
|
|
9.0
|
%
|
|
8.9
|
%
|
|
9.3
|
%
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(3,461)
|
|
|
(1,837)
|
|
|
(12,921)
|
|
|
(5,222)
|
|
Interest income
|
|
306
|
|
|
359
|
|
|
968
|
|
|
862
|
|
Other income (expense)
|
|
(333)
|
|
|
242
|
|
|
720
|
|
|
(442)
|
|
|
|
|
|
|
|
|
|
|
Income before income taxes
|
|
27,435
|
|
|
23,219
|
|
|
66,207
|
|
|
71,608
|
|
Provision for income taxes
|
|
7,402
|
|
|
5,801
|
|
|
17,657
|
|
|
18,270
|
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
20,033
|
|
|
$
|
17,418
|
|
|
$
|
48,550
|
|
|
$
|
53,338
|
|
|
|
|
|
|
|
|
|
|
Net income per common share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
1.70
|
|
|
$
|
1.48
|
|
|
$
|
4.12
|
|
|
$
|
4.55
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
$
|
1.69
|
|
|
$
|
1.47
|
|
|
$
|
4.10
|
|
|
$
|
4.52
|
|
|
|
|
|
|
|
|
|
|
Average common shares:
|
|
|
|
|
|
|
|
|
Basic
|
|
11,788
|
|
|
11,748
|
|
|
11,776
|
|
|
11,724
|
|
|
|
|
|
|
|
|
|
|
Diluted
|
|
11,851
|
|
|
11,813
|
|
|
11,840
|
|
|
11,796
|
|
|
|
|
|
|
|
|
|
|
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 position, 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
|
|
Nine Months
Ended
|
|
|
|
September
30,
|
|
September
30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(consolidated) - GAAP
|
|
$
|
291,759
|
|
|
$
|
271,829
|
|
|
$
|
874,842
|
|
|
$
|
818,949
|
|
|
(less: net sales
attributable to acquisitions)
|
|
(52,331)
|
|
|
(10,031)
|
|
|
(176,845)
|
|
|
(27,679)
|
|
|
Net Sales less
acquisitions (consolidated) - non-GAAP
|
|
$
|
239,428
|
|
|
$
|
261,798
|
|
|
$
|
697,997
|
|
|
$
|
791,270
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales (Industrial
Division) - GAAP
|
|
$
|
196,241
|
|
|
$
|
178,180
|
|
|
$
|
608,473
|
|
|
$
|
546,014
|
|
|
(less: net sales
attributable to acquisition)
|
|
(52,331)
|
|
|
(10,031)
|
|
|
(176,845)
|
|
|
(27,679)
|
|
|
Net Sales less
acquisitions (N.A. Industrial Division) - non-GAAP
|
|
$
|
143,910
|
|
|
$
|
168,149
|
|
|
$
|
431,628
|
|
|
$
|
518,335
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
(Agricultural Division) - GAAP
|
|
$
|
95,518
|
|
|
$
|
93,649
|
|
|
$
|
266,369
|
|
|
$
|
272,935
|
|
|
(less: net sales
attributable to acquisitions)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
Net Sales less
acquisitions (N.A. Agricultural Division) - non-GAAP
|
|
$
|
95,518
|
|
|
$
|
93,649
|
|
|
$
|
266,369
|
|
|
$
|
272,935
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(consolidated) - GAAP
|
|
$
|
30,923
|
|
|
$
|
24,455
|
|
|
$
|
77,440
|
|
|
$
|
76,410
|
|
|
(less: operating income
attributable to acquisitions)
|
|
(2,633)
|
|
|
323
|
|
|
(10,767)
|
|
|
(1,129)
|
|
|
Operating Income
less acquisitions (consolidated) - non-GAAP
|
|
$
|
28,290
|
|
|
$
|
24,778
|
|
|
$
|
66,673
|
|
|
$
|
75,281
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Income
(consolidated) - GAAP
|
|
$
|
20,033
|
|
|
$
|
17,418
|
|
|
$
|
48,550
|
|
|
$
|
53,338
|
|
|
(less: net income
attributable to acquisitions)
|
|
(1,879)
|
|
|
241
|
|
|
(7,857)
|
|
|
(840)
|
|
|
Net Income less
acquisitions (consolidated) - non-GAAP
|
|
$
|
18,154
|
|
|
$
|
17,659
|
|
|
$
|
40,693
|
|
|
$
|
52,498
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
Nine Months
Ended
|
|
|
September
30,
|
|
September
30,
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
|
|
|
|
|
|
|
Operating Income -
GAAP
|
|
$
|
30,923
|
|
|
$
|
24,455
|
|
|
$
|
77,440
|
|
|
$
|
76,410
|
|
(adjust: results from acquisitions)
|
|
|
|
|
|
|
|
|
earnings from acquisitions
|
|
(6,299)
|
|
|
79
|
|
|
(22,821)
|
|
|
(1,620)
|
|
acquisition inventory step-up charge
|
|
880
|
|
|
—
|
|
|
3,542
|
|
|
—
|
|
amortization expense
|
|
2,786
|
|
|
244
|
|
|
8,512
|
|
|
491
|
|
Adjusted Operating
Income - non-GAAP
|
|
$
|
28,290
|
|
|
$
|
24,778
|
|
|
$
|
66,673
|
|
|
$
|
75,281
|
|
|
|
|
|
|
|
|
|
|
Net Income -
GAAP
|
|
$
|
20,033
|
|
|
$
|
17,418
|
|
|
$
|
48,550
|
|
|
$
|
53,338
|
|
(adjust: results from
acquisitions)
|
|
(1,879)
|
|
|
241
|
|
|
(7,857)
|
|
|
(840)
|
|
(adjust: interest
expense relating to acquisitions)
|
|
1,663
|
|
|
372
|
|
|
6,758
|
|
|
888
|
|
Acquisition
Adjusted Net Income - non-GAAP
|
|
$
|
19,817
|
|
|
$
|
18,031
|
|
|
$
|
47,451
|
|
|
$
|
53,386
|
|
|
|
|
|
|
|
|
|
|
Diluted EPS -
GAAP
|
|
$
|
1.69
|
|
|
$
|
1.47
|
|
|
$
|
4.10
|
|
|
$
|
4.52
|
|
(adjust: results from
acquisitions)
|
|
(0.16)
|
|
|
0.02
|
|
|
(0.66)
|
|
|
(0.07)
|
|
(adjust:
interest expense relating to acquisitions)
|
|
0.14
|
|
|
0.03
|
|
|
0.57
|
|
|
0.08
|
|
Acquisition Adjusted Diluted EPS - non-GAAP
|
|
$
|
1.67
|
|
|
$
|
1.52
|
|
|
$
|
4.01
|
|
|
$
|
4.53
|
|
Attachment
3
|
|
Alamo Group
Inc. Non-GAAP Financial Reconciliation (in
thousands) (Unaudited)
|
|
Impact of Currency
Translation on Net Sales by Division
|
|
|
|
|
|
|
|
|
|
|
|
Three Months
Ended
September 30,
|
|
|
|
Change due to
currency translation
|
|
2020
|
|
2019
|
|
% change from
2019
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
$
|
196,241
|
|
|
$
|
178,180
|
|
|
10.1
|
%
|
|
$
|
834
|
|
|
0.5
|
%
|
Agricultural
|
95,518
|
|
|
93,649
|
|
|
2.0
|
%
|
|
(95)
|
|
|
(0.1)
|
%
|
Total
net sales
|
$
|
291,759
|
|
|
$
|
271,829
|
|
|
7.3
|
%
|
|
$
|
739
|
|
|
0.3
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months
Ended
September 30,
|
|
|
|
Change due to
currency translation
|
|
2020
|
|
2019
|
|
% change from
2019
|
|
$
|
|
%
|
|
|
|
|
|
|
|
|
|
|
Industrial
|
$
|
608,473
|
|
|
$
|
546,014
|
|
|
11.4
|
%
|
|
$
|
(843)
|
|
|
(0.2)
|
%
|
Agricultural
|
266,369
|
|
|
272,935
|
|
|
(2.4)
|
%
|
|
(3,936)
|
|
|
(1.4)
|
%
|
Total
net sales
|
$
|
874,842
|
|
|
$
|
818,949
|
|
|
6.8
|
%
|
|
$
|
(4,779)
|
|
|
(0.6)
|
%
|
|
|
|
|
|
|
|
|
|
|
Attachment
4
|
|
Alamo Group
Inc. Non-GAAP Financial Reconciliation (in
thousands) (Unaudited)
|
|
Consolidated Net
Change of Total Debt, Net of Cash
|
|
|
September
30,
2020
|
|
September
30,
2019
|
|
Net
Change
|
|
|
|
|
|
|
|
Current
maturities
|
|
$
|
15,068
|
|
|
$
|
113
|
|
|
|
Long-term debt,net of
current
|
|
359,021
|
|
|
150,192
|
|
|
|
Total debt
|
|
$
|
374,089
|
|
|
$
|
150,305
|
|
|
|
|
|
|
|
|
|
|
Total cash
|
|
93,515
|
|
|
60,279
|
|
|
|
Total Debt Net of
Cash
|
|
$
|
280,574
|
|
|
$
|
90,026
|
|
|
$
|
190,548
|
|
|
|
|
|
|
|
|
EBITDA
|
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
September 30,
2020
|
|
September 30,
2019
|
|
September 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
77,440
|
|
|
$
|
76,410
|
|
|
$
|
95,678
|
|
|
$
|
94,648
|
|
Depreciation
|
|
21,741
|
|
|
17,353
|
|
|
28,695
|
|
|
24,307
|
|
Amortization
|
|
11,593
|
|
|
3,247
|
|
|
14,299
|
|
|
5,953
|
|
EBITDA
|
|
$
|
110,774
|
|
|
$
|
97,010
|
|
|
$
|
138,672
|
|
|
$
|
124,908
|
|
|
|
|
|
|
|
|
|
|
Adjusted
EBITDA
|
|
|
Nine Months
Ended
|
|
Trailing Twelve
Months Ended
|
|
|
September 30,
2020
|
|
September 30,
2019
|
|
September 30,
2020
|
|
December 31,
2019
|
|
|
|
|
|
|
|
|
|
Income from operations
|
|
$
|
77,440
|
|
|
$
|
76,410
|
|
|
$
|
95,678
|
|
|
$
|
94,648
|
|
adjust:
acquisition inventory step-up charge
|
|
3,542
|
|
|
—
|
|
|
6,793
|
|
|
3,251
|
|
Adjusted Income from
operations
|
|
$
|
80,982
|
|
|
$
|
76,410
|
|
|
$
|
102,471
|
|
|
$
|
97,899
|
|
Depreciation
|
|
21,741
|
|
|
17,353
|
|
|
28,695
|
|
|
24,307
|
|
Amortization
|
|
11,593
|
|
|
3,247
|
|
|
14,299
|
|
|
5,953
|
|
Adjusted
EBITDA
|
|
$
|
114,316
|
|
|
$
|
97,010
|
|
|
$
|
145,465
|
|
|
$
|
128,159
|
|
|
|
|
|
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/alamo-group-announces-2020-third-quarter-results-301162248.html
SOURCE Alamo Group Inc.