Valmont Industries, Inc. (NYSE: VMI), a leading global provider
of engineered products and services for infrastructure development
and irrigation equipment and services for agriculture, today
reported financial results for the fourth quarter and full year
ended December 28, 2019.
Fourth Quarter 2019 Highlights (all metrics compared to
fourth quarter 2018 unless otherwise noted)
- Net Sales of $683.6 million, a decline of 2.0%; lower sales in
international markets, particularly in Access Systems and
international irrigation, were mostly offset by improvement across
North American markets, led by Utility Support Structures
- Operating income of $55.0 million or 8.1% of sales, compared to
$36.3 million or 5.2% of sales ($66.1 million adjusted1 or 9.5% of
sales) largely due to a $7.5 million operating loss in Access
Systems given the extremely weak Australia construction market, and
lower international irrigation sales
- Diluted Earnings per Share of $1.66 compared to $0.80 ($1.87
adjusted1)
- Finalized an agreement to acquire the remaining 49% stake of
AgSenseĀ® in the Irrigation segment, which is expected to close in
first quarter 2020
- Commenced operations at the new European Center of Excellence
steel structures facility in Poland, strengthening the Company's
commitment to serve global markets and customers with strategic
capital deployment
Full Year 2019 Highlights (all metrics compared to full
year 2018 unless otherwise noted)
- Net sales were flat at $2.8 billion
- Value-based pricing strategies, sales from recent acquisitions
across all segments, and record sales of wireless communication
structures and components, were offset by lower Utility Support
Structures sales volumes due to changes in product mix and less
available production capacity, and lower international irrigation
project sales
- Operating income was $237.7 million or 8.6% of sales, compared
to $202.3 million or 7.3% of sales ($269.4 million adjusted1 or
9.8% of sales)
- Profitability was impacted by lower international irrigation
project sales, poor performance in Access Systems for the second
half of the year, and the impact of one-time events previously
highlighted in 20192
- Diluted Earnings per Share of $7.06 compared to $4.20 ($7.59
adjusted1)
- Operating cash flow doubled to $307.6 million, the highest
level since 2013
- Capital expenditures were $97.4 million, including $33.0
million for strategic plant expansions and investments in Poland,
United Arab Emirates and the U.S. to support global market
growth
- Deployed $81.8 million of cash for three strategic
acquisitions, Larson Camouflage, United Galvanizing, and Connect-It
Wireless, and the final purchase payment for Convert Italia, SpA;
2019 ending cash was $353.5 million
- Returned $95.5 million of capital to shareholders through share
repurchases of $62.9 million and dividends of $32.6 million
Key Financial Metrics
Fourth Quarter 2019
GAAP
Adjusted1
12/28/2019 4Q 2019
12/29/2018 4Q 2018
vs. 4Q 2018
12/28/2019 4Q 2019
12/29/2018 4Q 2018
vs. 4Q 2018
Net Sales
$
683,626
$
697,363
(2.0
)%
$
683,626
$
697,363
(2.0
)%
Operating Income
55,041
$
36,290
51.7
%
55,041
$
66,123
(16.8
)%
Operating Income as a % of Net Sales
8.1
%
5.2
%
8.1
%
9.5
%
Net Earnings
35,747
17,662
102.4
%
35,747
41,345
(13.5
)%
Diluted Earnings Per Share
$
1.66
$
0.80
107.5
%
$
1.66
$
1.87
(11.2
)%
Average Shares Outstanding
21,596
22,061
Full Year 2019
GAAP
Adjusted1
12/28/2019 FY 2019
12/29/2018 FY 2018
vs. FY 2018
12/28/2019 FY 2019
12/29/2018 FY 2018
vs. FY 2018
Net Sales
$
2,766,976
$
2,757,144
0.4
%
$
2,766,976
$
2,757,144
0.4
%
Operating Income
237,720
202,280
17.5
%
237,720
269,395
(11.8
)%
Operating Income as a % of Net Sales
8.6
%
7.3
%
8.6
%
9.8
%
Net Earnings
153,769
94,351
62.9
%
153,769
170,369
(9.7
)%
Diluted Earnings Per Share
$
7.06
$
4.20
68.1
%
$
7.06
$
7.59
(7.0
)%
Average Shares Outstanding
21,769
22,446
"Excluding the poor results from Access Systems in Australia,
our performance in the fourth quarter was in line with our
expectations," said Stephen G. Kaniewski, President and Chief
Executive Officer. "In Engineered Support Structures, continued
strong demand in North American transportation and wireless
communication markets offset approximately $9.0 million in lower
Access Systems sales. Utility Support Structures recognized its
most profitable quarter this year and we delivered on our fourth
quarter revenue commitment, increasing sales $27.0 million compared
to third quarter 2019. We were satisfied with Coatings segment
results despite the slowdown in U.S. industrial production levels.
North American Irrigation sales were in line with expectations,
while lower project business in international irrigation markets
impacted growth. As expected, we generated strong operating cash
flow during the quarter."
Kaniewski continued, "As we reflect on 2019, excluding the poor
performance in our Access Systems business, our teams performed
well. Increased momentum in our infrastructure businesses is
supported by a solid backlog in Engineered Support Structures and a
record high year-end backlog in Utility Support Structures. Despite
lower U.S. industrial production levels in the second half of 2019,
our Coatings business delivered good results for the year. Even
with the impact of muted net farm income and trade uncertainty, our
North American irrigation business performed well, supported by
higher sales of advanced technology solutions. Our commitment to
balanced capital deployment was demonstrated through strategic
capital investments and acquisitions in support of global market
growth."
Fourth Quarter 2019 Segment Review
Infrastructure
Engineered Support Structures Segment (37.3% of
Sales)
Poles, towers and components for the global lighting, traffic
and wireless communication markets, engineered access systems,
integrated structure solutions for smart cities, and highway safety
products
Sales of $255.2 million decreased 1.7% compared to last year due
to substantially lower Access Systems revenue and a 1.3%
unfavorable currency impact, which offset significantly higher
wireless communication sales and revenue from recent
acquisitions.
Lighting and traffic sales in North America were similar to last
year, driven by very strong market demand from continued state and
local government spending, offset by lower commercial lighting
sales. In Europe, higher revenues were offset by unfavorable
currency translation. Sales of highway safety products were also
lower from a slowdown in government spending in India and
Australia, and lower project sales.
Record fourth quarter sales of wireless communication structures
and components grew more than 25.0% compared to last year.
Continued strong demand in North American markets was led by
carriers' ongoing expansion of 4G networks and site preparation in
advance of 5G rollouts. Sales growth was also driven by revenue
from recent acquisitions.
Access Systems product sales decreased $9.4 million, or 26%
compared to last year, from lower volumes and unfavorable pricing
due to a significant downturn in Australia construction
markets.
Operating income was $10.5 million or 4.1% of sales compared to
an operating loss of $1.6 million ($20.2 million adjusted income1
or 7.8% of sales) in 2018. Profitability improvement from pricing
discipline in North American markets was more than offset by a
significant operating loss in the Access Systems business.
Utility Support Structures Segment (33.9% of Sales)
Steel and concrete structures for global utility transmission,
distribution, substations, and renewable energy generation
equipment
Sales of $231.9 million decreased slightly compared to last
year, but increased $27.0 million, or 13.1% compared to third
quarter 2019. Favorable pricing, particularly in North American
markets, was offset by slightly lower production levels due to a
North American plant closure in early 2019. As expected, sales of
solar tracker solutions were significantly lower due to project
timing delays.
Operating income was $26.3 million or 11.4% of sales compared to
$18.5 million, or 7.9% of sales ($25.9 million adjusted1 or 11.1%
of sales) in 2018. Pricing actions were offset by lower
productivity and volumes, and weaker profitability in the offshore
wind and solar tracker businesses due to lower sales.
Coatings Segment (13.1% of Sales)
Global galvanizing, painting and anodizing services to preserve
and protect metal products
Sales of $89.7 million increased 3.8% versus the prior year, led
by sales from recent acquisitions and continued pricing discipline,
offset by lower volumes to external customers.
Operating income was $12.0 million or 13.4% of sales, compared
to $14.2 million or 16.5% of sales ($14.6 million adjusted1 or
16.9% of sales) in 2018. Improved pricing was more than offset by a
higher mix of internal volumes and productivity challenges from
recent acquisitions.
Agriculture
Irrigation Segment (19.5% of Sales)
Agricultural irrigation equipment, parts, services and tubular
products, water management solutions, and technology for precision
agriculture
Global sales of $133.0 million decreased 6.7% compared to last
year.
North American sales of $84.5 million were flat compared to
2018. Higher sales of systems, advanced technology solutions and
aftermarket parts were offset by lower industrial tubing sales.
International irrigation sales of $48.5 million decreased 16.1%
compared to last year. Higher sales in Brazil were offset by
significantly lower project sales in the EMEA region. Sales in
Australia and New Zealand markets were similar to 2018.
Irrigation technology sales for the full year, as a subset of
total segment sales, increased 25.0% to $56.7 million compared to
fiscal 2018, led by growers' increasing demand for integrated
solutions that help reduce input costs and improve
profitability.
Segment operating income was $11.8 million, or 8.9% of sales,
compared to $14.8 million, or 10.4% of sales in 2018, mainly due to
planned higher R&D expense for technology investments and lower
international project sales.
2020 Outlook
2020 Full Year Financial
Outlook
Diluted Earnings per Share
$7.30 - $8.00
Revenue Growth3
4% - 7%
Operating Margin Change
10 - 40 bps increase
Global Effective Tax Rate
~ 25%
Capital Expenditures
$100 - 125 million
2020 Key Assumptions
- Revenue Growth Primarily Organic
- No Material Impact Expected from Foreign Exchange
Translation
- Raw Material and Freight Costs Expected to be Similar to
2019
- No Further Decline in Agricultural Market Fundamentals
"We are off to a solid start in 2020," said Mr. Kaniewski.
"Sales and earnings growth is being driven by our infrastructure
businesses, supported by solid backlogs. In the Engineered Support
Structures segment, transportation market demand from continued
government investments in infrastructure development will drive
growth. In the wireless communication market, capital investments
for 5G deployment will be somewhat delayed due to the
T-Mobile/Sprint integration; however, we anticipate spending to
increase in the second half of the year, accelerating into 2021.
Considering these well-known delays and our record growth in 2019,
we expect wireless communication sales to approach a 10.0% growth
rate in 2020. Construction end-markets in Australia remain at
recessionary levels and are not expected to significantly improve
this year, impacting our Access Systems business. Our Utility
segment entered the year with a record global backlog of nearly
$500.0 million, supported by very strong market demand from ongoing
investments in grid hardening and renewable energy sources.
Strategic capacity additions in our North American steel structures
plants are expected to increase volumes by approximately 5.0%,
mostly in the second half of the year. We expect sales in our
Coatings business to be similar to 2019 assuming relatively stable
global industrial production levels. In the Irrigation segment,
grower sentiment appears to be stabilizing in 2020, but we are not
seeing a meaningful turnaround in demand as net farm income levels
remain muted. Therefore, we are now projecting segment sales to be
flat to down approximately 3.0% compared to 2019. While there is
uncertainty around international projects, we are seeing continued
market strength in Brazil."
Kaniewski continued, "Our unwavering commitment to continuous
improvement and delivering higher returns on invested capital
requires us to strategically position our businesses for long-term
profitable growth. As such, we are continuing to evaluate some of
the more challenged product lines across all segments, including
Access Systems in Australia. We look forward to sharing more
details next quarter."
A live audio discussion with Stephen G. Kaniewski, President and
Chief Executive Officer, and Mark C. Jaksich, Executive Vice
President and Chief Financial Officer, will be accessible by
telephone on Thursday, February 20, 2020 at 8:00 a.m. CST by
dialing 1-877-407-6184 or 1-201-389-0877 (no Conference ID needed),
or via webcast by pointing browsers to this link: Valmont
Industries 4Q 2019 Earnings Conference Call. A slide presentation
will simultaneously be available for download on the Investors page
at www.valmont.com. A replay of the event can be accessed two hours
after the call at the above link or by telephone at 1-877-660-6853
or 1-201-612-7415. Please use conference identification number
13697708. The replay will be available through 10:59 p.m. CST on
February 27, 2020.
About Valmont Industries, Inc. Valmont is a global
leader, designing and manufacturing engineered products that
support global infrastructure development and agricultural
productivity. Its products for infrastructure serve highway,
transportation, wireless communication, electric transmission, and
industrial construction and energy markets. Its irrigation
equipment and services for large-scale agriculture improve farm
productivity while conserving fresh water resources. In addition,
Valmont provides coatings services that protect against corrosion
and improve the service life of steel and other metal products. For
more information, visit valmont.com.
Concerning Forward-Looking Statements This release
contains forward-looking statements, within the meaning of the
Private Securities Litigation Reform Act of 1995. These
forward-looking statements are based on assumptions that management
has made in light of experience in the industries in which Valmont
operates, as well as managementās perceptions of historical trends,
current conditions, expected future developments and other factors
believed to be appropriate under the circumstances. As you read and
consider this release, you should understand that these statements
are not guarantees of performance or results. They involve risks,
uncertainties (some of which are beyond Valmontās control) and
assumptions. Although management believes that these
forward-looking statements are based on reasonable assumptions, you
should be aware that many factors could affect Valmontās actual
financial results and cause them to differ materially from those
anticipated in the forward-looking statements. These factors
include among other things, risk factors described from time to
time in Valmontās reports to the Securities and Exchange
Commission, as well as future economic and market circumstances,
industry conditions, company performance and financial results,
operating efficiencies, availability and price of raw material,
availability and market acceptance of new products, product
pricing, domestic and international competitive environments, and
actions and policy changes of domestic and foreign governments. The
Company cautions that any forward-looking statement included in
this press release is made as of the date of this press release and
the Company does not undertake to update any forward-looking
statement.
1 Please see Reg G reconciliation of GAAP sales, operating
income, net earnings and EPS to Adjusted figures at end of document
2 Includes Access Systems project loss, completion of a multi-year
customer accommodation in Utility Support Structures, and legal
settlement fees in Coatings 3 Excludes additional acquisitions in
2020
VALMONT INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF EARNINGS
(Dollars in thousands, except per
share amounts)
(unaudited)
Fourth Quarter
Year-to-Date
13 Weeks Ended
Year Ended
28-Dec-19
29-Dec-18
28-Dec-19
29-Dec-18
Net sales
$
683,626
$
697,363
$
2,766,976
$
2,757,144
Cost of sales
512,759
547,662
2,074,480
2,098,864
Gross profit
170,867
149,701
692,496
658,280
Selling, general and administrative
expenses
115,826
113,411
454,776
456,000
Operating income
55,041
36,290
237,720
202,280
Other income (expense)
Interest expense
(10,182
)
(10,418
)
(40,153
)
(44,237
)
Interest income
1,127
955
3,942
4,668
Gain on investments (unrealized)
1,206
(1,985
)
5,960
(839
)
Costs associated with refinancing of
debt
ā
ā
ā
(14,820
)
Loss from divestiture of grinding media
business (Donhad)
ā
ā
ā
(6,084
)
Other
266
420
2,204
2,473
(7,583
)
(11,028
)
(28,047
)
(58,839
)
Earnings before income taxes
47,458
25,262
209,673
143,441
Income tax expense
10,056
7,107
50,207
43,135
Net earnings
37,402
18,155
159,466
100,306
Less: Earnings attributable to
non-controlling interests
(1,655
)
(493
)
(5,697
)
(5,955
)
Net earnings attributable to Valmont
Industries, Inc.
$
35,747
$
17,662
$
153,769
$
94,351
Average shares outstanding (000's) -
Basic
21,462
21,961
21,659
22,306
Earnings per share - Basic
$
1.67
$
0.80
$
7.10
$
4.23
Average shares outstanding (000's) -
Diluted
21,596
22,061
21,769
22,446
Earnings per share - Diluted
$
1.66
$
0.80
$
7.06
$
4.20
Cash dividends per share
$
0.375
$
0.375
$
1.500
$
1.500
VALMONT INDUSTRIES, INC. AND
SUBSIDIARIES
SUMMARY OPERATING
RESULTS
(Dollars in thousands)
(unaudited)
Fourth Quarter
Year-to-Date
13 Weeks Ended
Year Ended
28-Dec-19
29-Dec-18
28-Dec-19
29-Dec-18
Net sales
Engineered Support Structures
$
255,196
$
259,691
$
1,012,290
$
986,880
Utility Support Structures
231,871
233,323
890,580
859,173
Coatings
89,693
86,399
367,835
353,351
Infrastructure products
576,760
579,413
2,270,705
2,199,404
Irrigation
133,015
142,602
585,196
633,666
Other
ā
ā
ā
23,080
Less: Intersegment sales
(26,149
)
(24,652
)
(88,925
)
(99,006
)
Total
$
683,626
$
697,363
$
2,766,976
$
2,757,144
Operating Income
Engineered Support Structures
$
10,475
$
(1,635
)
$
65,627
$
34,776
Utility Support Structures
26,345
18,468
87,788
64,766
Coatings
11,971
14,217
51,008
55,325
Infrastructure products
48,791
31,050
204,423
154,867
Irrigation
11,819
14,805
71,687
97,722
Other
ā
ā
ā
(913
)
Adjustment to LIFO inventory valuation
method
4,276
(4,380
)
9,815
(9,892
)
Corporate
(9,845
)
(5,185
)
(48,205
)
(39,504
)
Total
$
55,041
$
36,290
$
237,720
$
202,280
The backlog of orders for the principal products manufactured
and marketed was $807.1 million at the end of the 2019 fiscal year
and $644.7 million at the end of the 2018 fiscal year. An order is
reported in our backlog upon receipt of a purchase order from the
customer or execution of a sales order contract. We anticipate that
most of the 2019 backlog of orders will be filled during fiscal
year 2020. At year-end, the segments with backlog were as follows
(dollar amounts in millions):
12/28/2019
12/29/2018
Engineered Support Structures
$
254.0
$
257.4
Utility Support Structures
498.0
325.9
Irrigation
55.0
59.7
Coatings
0.1
1.7
$
807.1
$
644.7
Valmont has aggregated its business segments into four global
reportable segments as follows:
Engineered Support Structures: This segment consists of
the manufacture of engineered metal and composite poles, towers,
and components for global lighting, traffic, and wireless
communication markets, engineered access systems, integrated
structure solutions for smart cities, and highway safety
products.
Utility Support Structures: This segment consists of the
manufacture of engineered steel and concrete structures for global
utility transmission, distribution, substations, and renewable
energy generation equipment.
Coatings: This segment consists of global galvanizing,
painting and anodizing services to preserve and protect metal
products.
Irrigation: This segment consists of the global
manufacture of agricultural irrigation equipment, parts, services,
tubular products, water management solutions, and technology for
precision agriculture.
In addition to these four reportable segments, the Company had
other businesses and activities that individually are not more than
10% of consolidated sales, operating income or assets. This
includes the manufacture of forged steel grinding media and is
reported in the "Other" category until its divestiture in 2018.
VALMONT INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE
SHEETS
(Dollars in thousands)
(unaudited)
28-Dec-19
29-Dec-18
ASSETS
Current assets:
Cash and cash equivalents
$
353,542
$
313,210
Accounts receivable, net
480,000
483,963
Inventories
374,565
383,566
Contract asset - costs and profits in
excess of billings
141,322
112,525
Prepaid expenses
32,043
42,800
Refundable income taxes
6,947
4,576
Total current assets
1,388,419
1,340,640
Property, plant and equipment, net
558,129
513,992
Goodwill and other assets
816,863
675,642
$
2,763,411
$
2,530,274
LIABILITIES AND SHAREHOLDERS'
EQUITY
Current liabilities:
Current installments of long-term debt
$
760
$
779
Notes payable to banks
21,774
10,678
Accounts payable
197,957
218,115
Accrued expenses
285,209
171,233
Dividend payable
8,079
8,230
Total current liabilities
513,779
409,035
Long-term debt, excluding current
installments
764,944
741,822
Other long-term liabilities
327,797
243,894
Shareholders' equity
1,156,891
1,135,523
$
2,763,411
$
2,530,274
VALMONT INDUSTRIES, INC. AND
SUBSIDIARIES
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(unaudited)
YTD
YTD
28-Dec-19
29-Dec-18
Cash flows from
operating activities
Net Earnings
$
159,466
$
100,306
Depreciation and amortization
82,264
82,827
Impairment of long-lived assets
ā
20,780
Loss from divestiture of grinding media
business
ā
6,084
Contribution to defined benefit pension
plan
(18,461
)
(1,537
)
Change in working capital
80,234
(46,620
)
Other
4,111
(8,832
)
Net cash flows from operating
activities
307,614
153,008
Cash flows from
investing activities
Purchase of property, plant, and
equipment
(97,425
)
(71,985
)
Proceeds from sale of assets
5,556
63,103
Acquisitions
(81,841
)
(143,020
)
Other
5,560
(3,543
)
Net cash flows from investing
activities
(168,150
)
(155,445
)
Cash flows from
financing activities
Proceeds from long-term borrowings
31,000
251,655
Proceeds from short-term borrowings
11,327
10,543
Principal payments on long-term
borrowings
(10,768
)
(262,191
)
Purchase of treasury shares
(62,915
)
(114,805
)
Purchase of noncontrolling interest
(27,845
)
(5,510
)
Dividends paid
(32,642
)
(33,726
)
Other
(7,107
)
(8,076
)
Net cash flows from financing
activities
(98,950
)
(162,110
)
Effect of exchange rates on cash and cash
equivalents
(182
)
(15,048
)
Net change in cash and cash
equivalents
40,332
(179,595
)
Cash and cash equivalents - beginning of
year
313,210
492,805
Cash and cash equivalents - end of
period
$
353,542
$
313,210
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED
RESULTS REGULATION G RECONCILIATION (Dollars in thousands,
except per share amounts) (unaudited)
The non-GAAP tables below disclose the impact on (a) diluted
earnings per share of (1) debt refinancing expenses (2) impairment
of goodwill and tradename (3) restructuring costs (4) acquisition
diligence expenses and (5) the loss from divestiture of Donhad, (b)
operating income from these expenses, and (c) segment operating
income for these items. Amounts may be impacted by rounding. We
believe it is useful when considering company performance for the
non-GAAP adjusted net earnings and operating income to be taken
into consideration by management and investors with the related
reported GAAP measures.
Thirteen weeks ended December
29, 2018
Diluted earnings per
share
Year ended December 29,
2018
Diluted earnings per
share
Net earnings attributable to Valmont
Industries, Inc. - as reported
$
17,662
$
0.80
$
94,351
$
4.20
Debt refinancing expenses, pre-tax
ā
ā
14,820
0.66
Impairment of goodwill and tradename,
pre-tax
(743
)
(0.03
)
15,037
0.67
Restructuring and related asset impairment
costs - pre-tax
24,313
1.10
41,975
1.87
Non-recurring costs for vendor quality
issue (Utility), pre-tax
5,000
0.23
5,000
0.22
Acquisition diligence costs, pre-tax
520
0.02
4,360
0.19
Loss from divestiture of grinding media
business, pre-tax
ā
ā
6,084
0.27
Total Adjustments
29,090
1.32
87,276
3.89
Tax effect of adjustments *
(5,407
)
(0.25
)
(10,767
)
(0.48
)
Completion of 2017 tax reform
adjustment
ā
ā
(491
)
(0.02
)
Net earnings attributable to Valmont
Industries, Inc. - Adjusted
$
41,345
$
1.87
$
170,369
$
7.59
Average shares outstanding (000ās) -
Diluted
22,061
22,446
* The tax effect of adjustments is
calculated based on the income tax rate in each applicable
jurisdiction.
Thirteen weeks ended December
29, 2018
Year ended December 29,
2018
Operating Income Reconciliation
Operating income - as reported
$
36,290
$
202,280
Impairment of goodwill and tradename
ā
15,780
Restructuring and related asset impairment
costs
24,313
41,975
Non-recurring costs for vendor quality
issue (Utility)
5,000
5,000
Acquisition diligence costs
520
4,360
Adjusted Operating Income
$
66,123
$
269,395
Net Sales - as reported
697,363
2,757,144
Operating Income as a % of Sales
5.2
%
7.3
%
Adjusted Operating Income as a % of
Sales
9.5
%
9.8
%
VALMONT INDUSTRIES, INC. AND
SUBSIDIARIES
SUMMARY OF EFFECT OF
SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(CONTINUED)
For the
fourth quarter ended December 29, 2018
Engineered
Utility
Support
Support
Other/
Segment Operating Income
Reconciliation
Structures
Structures
Coatings
Irrigation
Corporate
Operating income - as reported
$
(1,635
)
$
18,468
$
14,217
$
14,805
$
(9,565
)
Impairment of goodwill and tradename
ā
ā
ā
ā
ā
Restructuring and related asset impairment
costs
21,723
2,410
ā
180
ā
Non-recurring costs for vendor quality
issue
ā
5,000
ā
ā
ā
Acquisition diligence costs
113
21
386
ā
ā
Adjusted Operating Income
$
20,201
$
25,899
$
14,603
$
14,985
$
(9,565
)
Net sales
259,691
233,323
86,399
142,602
ā
Operating Income as a % of Sales
(0.6
)%
7.9
%
16.5
%
10.4
%
NM
Adjusted Operating Income as a % of
Sales
7.8
%
11.1
%
16.9
%
10.5
%
NM
View source
version on businesswire.com: https://www.businesswire.com/news/home/20200219006003/en/
Renee Campbell +1 402.963.1057
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