| For: | Alamo Group Inc. | |
| Contact: | Robert H. George | |
| Vice President | ||
| 830-372-9621 | ||
| For Immediate Release | ||
| FTI Consulting, Inc. | ||
| Katie Pyra/Matt Steinberg | ||
| 212-850-5600 | ||
ALAMO GROUP ANNOUNCES RECORD 2013 FIRST QUARTER RESULTS
SEGUIN, Texas, May 1, 2013 – Alamo Group Inc. (NYSE: ALG) today reported results for the first quarter ended March 31, 2013.
Net sales for the first quarter were $158.4 million compared to net sales of $155.9 million for the first quarter of 2012, an increase of 2%. Net income for the quarter was $6.9 million, or $0.57 per diluted share, compared to net income of $6.8 million, or $0.56 per diluted share, for the first quarter of 2012, an increase of 2%. The first quarter 2013 net sales and net income levels were both records for Alamo during a first quarter as the Company experienced steady demand for its products.
Net sales in the North American Industrial Division for the first quarter of 2013 were $69.3 million, an increase of 7% compared to net sales of $64.7 million for the first quarter of 2012. The Division benefited from stable demand from governmental end users and was led by increases in sales for mowers, street sweepers and vacuum trucks.
Alamo's North American Agricultural Division recorded net sales of $49.6 million in the first quarter of 2013, a 3% increase compared to net sales of $48.3 million in the prior year's first quarter. The results reflected modest increases in demand for its agricultural products in the U.S., though the growth rates in this market are moderating.
The Company's European Division net sales in the first quarter of 2013 were $39.5 million, versus $42.9 million in the first quarter of 2012, a decrease of 8%. The Division's sales continued to be affected by general weakness in the European economy and were further impacted by adverse weather conditions.
- more -
PAGE 2
ALAMO GROUP ANNOUNCES RECORD 2013 FIRST QUARTER AND NINE MONTH RESULTS
Alamo Group's President and Chief Executive Officer, Ron Robinson, commented, “We are pleased to start 2013 on a positive note, particularly given the slower growth we are seeing in some of our U.S. markets and the continued weakness in the overall European economy. During the quarter, our margins were impacted by lower sales of higher margin spare parts due to the prolonged winter conditions that affected large areas of the U.S. and resulted in a later start of spring cleanup along roadways and a slower start to the agricultural season. However, much of this effect was mitigated as we continued to benefit from our operational initiatives, which have led to further improvements in our asset utilization and manufacturing efficiencies.”
“Once again, our Industrial Division drove our performance with solid year-over-year growth. While our snow removal products had a slow start to the year, the majority of this Division's products exhibited steady-to-improving results. The increases in street sweeper and vacuum truck product lines were particularly gratifying, as well as the continued strong performance in our mower lines. The Division also saw backlogs improve during the quarter, which should bode well as we progress through the rest of the year.”
“Our Agricultural Division experienced steady performance as well, though the modest increase in sales reflects the slowing growth of the agricultural market in North America as commodity prices in general have retreated somewhat from the strong levels of the past few years. Similar to our Industrial Division, improving backlogs during the quarter should benefit this Division throughout 2013.”
“In Europe, our operations performed well considering weak economic conditions that continued to impact all of our markets. These difficult conditions are expected to linger in the near-term as governmental budgets remain tight, agricultural markets feel the effects of lower commodity prices, and the general economy is constrained due to the region's overall economic uncertainty.”
Mr. Robinson concluded, “While we continue to operate in a challenging economic environment, we remain positive about the prospects for Alamo Group. The record results in the first quarter, a stronger backlog and relatively steady demand for our type of equipment, gives us confidence as we move forward in 2013.”
- more -
PAGE 3
ALAMO GROUP ANNOUNCES RECORD 2013 FIRST QUARTER AND NINE MONTH RESULTS
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, pothole patchers, excavators, vacuum trucks, agricultural implements and related after-market parts and services. The Company, founded in 1969, had approximately 2,500 employees and operates eighteen plants in North America and Europe as of March 31, 2013. The corporate offices of Alamo Group Inc. are located in Seguin, Texas and the headquarters for the Company's European operations are located in Salford Priors, England.
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. This release may contain non-GAAP financial measures. These measures, if included, are to help facilitate meaningful comparisons of our results to those in prior periods and future periods and to allow a better evaluation of our operating performance, in management's opinion. Our reference to any non-GAAP measures should not be considered as a substitute for results that are presented in a manner consistent with GAAP.
(Tables Follow)
# # #
- more -
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
| First Quarter Ended | |||||||
| 3/31/2013 | 3/31/2012 | ||||||
| North American | |||||||
| Industrial | $ | 69,334 | $ | 64,732 | |||
| Agricultural | 49,636 | 48,271 | |||||
| European | 39,459 | 42,908 | |||||
| Total Sales | 158,429 | 155,911 | |||||
| Cost of sales | 123,517 | 120,673 | |||||
| Gross margin | 34,912 | 35,238 | |||||
| 22.0 | % | 22.6 | % | ||||
| Operating Expenses | 25,173 | 24,245 | |||||
| Income from Operations | 9,739 | 10,993 | |||||
| 6.1 | % | 7.1 | % | ||||
| Interest Expense | (242 | ) | (443 | ) | |||
| Interest Income | 44 | 55 | |||||
| Other Income (Expense) | 289 | (574 | ) | ||||
| Income before income taxes | 9,830 | 10,031 | |||||
| Provision for income taxes | 2,880 | 3,246 | |||||
| Net Income | $ | 6,950 | $ | 6,785 | |||
| Net income per common share: | |||||||
| Basic | $ | 0.58 | $ | 0.57 | |||
| Diluted | $ | 0.57 | $ | 0.56 | |||
| Average common shares: | |||||||
| Basic | 12,006 | 11,873 | |||||
| Diluted | 12,158 | 12,027 | |||||
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited)
| March 31, 2013 | March 31, 2012 | |||||||||
| ASSETS | ||||||||||
| Current assets: | ||||||||||
| Cash and cash equivalents | $ | 33,491 | $ | 37,858 | ||||||
| Accounts receivable, net | 169,678 | 170,391 | ||||||||
| Inventories | 118,224 | 128,212 | ||||||||
| Other current assets | 9,189 | 9,304 | ||||||||
| Total current assets | 330,582 | 345,765 | ||||||||
| Property, plant and equipment | 56,722 | 62,121 | ||||||||
| Goodwill | 30,870 | 32,365 | ||||||||
| Intangible assets | 5,500 | 5,500 | ||||||||
| Other non-current assets | 3,566 | 6,041 | ||||||||
| Total assets | $ | 427,240 | $ | 451,792 | ||||||
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||
| Current liabilities: | ||||||||||
| Trade accounts payable | $ | 55,546 | $ | 54,353 | ||||||
| Income taxes payable | 2,935 | 3,575 | ||||||||
| Accrued liabilities | 30,941 | 28,848 | ||||||||
| Current maturities of long-term debt and capital lease obligations | 571 | 3,272 | ||||||||
| Other current liabilities | 246 | 649 | ||||||||
| Total current liabilities | 90,239 | 90,697 | ||||||||
| Long-term debt, net of current maturities | 10,049 | 53,512 | ||||||||
| Deferred pension liability | 9,448 | 10,487 | ||||||||
| Other long-term liabilities | 3,693 | 4,383 | ||||||||
| Deferred income taxes | 2,261 | 4,924 | ||||||||
| Total stockholders’ equity | 311,550 | 287,789 | ||||||||
| Total liabilities and stockholders’ equity | $ | 427,240 | $ | 451,792 | ||||||