Cover
Cover - shares | 9 Months Ended | |
Sep. 30, 2023 | Oct. 27, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2023 | |
Document Transition Report | false | |
Entity File Number | 0-21220 | |
Entity Registrant Name | ALAMO GROUP INC. | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 74-1621248 | |
Entity Address, Address Line One | 1627 East Walnut | |
Entity Address, City or Town | Seguin | |
Entity Address, State or Province | TX | |
Entity Address, Postal Zip Code | 78155 | |
City Area Code | 830 | |
Local Phone Number | 379-1480 | |
Title of 12(b) Security | Common Stock, par value$.10 per share | |
Trading Symbol | ALG | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 12,011,781 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q3 | |
Amendment Flag | false | |
Entity Central Index Key | 0000897077 | |
Current Fiscal Year End Date | --12-31 |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 113,534 | $ 47,016 |
Accounts receivable, net | 378,107 | 317,581 |
Inventories, net | 371,748 | 352,553 |
Prepaid expenses and other current assets | 9,226 | 9,144 |
Income tax receivable | 750 | 916 |
Total current assets | 873,365 | 727,210 |
Rental equipment, net | 38,431 | 33,723 |
Property, plant and equipment | 357,234 | 335,078 |
Less: Accumulated depreciation | (192,715) | (180,071) |
Total property, plant and equipment, net | 164,519 | 155,007 |
Goodwill | 195,863 | 195,858 |
Intangible assets, net | 159,884 | 171,341 |
Deferred income taxes | 904 | 969 |
Other non-current assets | 22,548 | 24,400 |
Total assets | 1,455,514 | 1,308,508 |
Current liabilities: | ||
Trade accounts payable | 110,944 | 97,537 |
Income taxes payable | 13,695 | 6,592 |
Accrued liabilities | 79,682 | 71,368 |
Current maturities of long-term debt and finance lease obligations | 15,008 | 15,009 |
Total current liabilities | 219,329 | 190,506 |
Long-term debt and finance lease obligations, net of current maturities | 308,892 | 286,943 |
Long-term tax liability | 2,634 | 3,781 |
Other long-term liabilities | 22,171 | 23,668 |
Deferred income taxes | 14,754 | 18,250 |
Stockholders’ equity: | ||
Common stock, $0.10 par value, 20,000,000 shares authorized; 11,962,295 and 11,913,890 outstanding at September 30, 2023 and December 31, 2022, respectively | 1,196 | 1,191 |
Additional paid-in-capital | 135,571 | 129,820 |
Treasury stock, at cost; 82,600 shares at September 30, 2023 and December 31, 2022, respectively | (4,566) | (4,566) |
Retained earnings | 823,960 | 727,183 |
Accumulated other comprehensive loss | (68,427) | (68,268) |
Total stockholders’ equity | 887,734 | 785,360 |
Total liabilities and stockholders’ equity | $ 1,455,514 | $ 1,308,508 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Sep. 30, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Common stock par value (in dollars per share) | $ 0.1 | $ 0.1 |
Common stock authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock outstanding (in shares) | 11,962,295 | 11,913,890 |
Treasury stock (in shares) | 82,600 | 82,600 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Income (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Net sales: | ||||
Total net sales | $ 419,644 | $ 368,793 | $ 1,272,109 | $ 1,127,012 |
Cost of sales | 305,501 | 276,428 | 927,385 | 848,289 |
Gross profit | 114,143 | 92,365 | 344,724 | 278,723 |
Selling, general and administrative expenses | 60,564 | 52,723 | 180,090 | 161,367 |
Amortization expense | 3,826 | 3,802 | 11,465 | 11,481 |
Income from operations | 49,753 | 35,840 | 153,169 | 105,875 |
Interest expense | (6,729) | (3,734) | (19,506) | (9,570) |
Interest income | 385 | 93 | 1,125 | 222 |
Other income (expense), net | 138 | 1,413 | 94 | (473) |
Income before income taxes | 43,547 | 33,612 | 134,882 | 96,054 |
Provision for income taxes | 8,632 | 7,791 | 30,244 | 23,291 |
Net Income | $ 34,915 | $ 25,821 | $ 104,638 | $ 72,763 |
Net income per common share: | ||||
Basic (in dollars per share) | $ 2.93 | $ 2.18 | $ 8.78 | $ 6.13 |
Diluted (in dollars per share) | $ 2.91 | $ 2.16 | $ 8.73 | $ 6.10 |
Average common shares: | ||||
Basic (in shares) | 11,928 | 11,883 | 11,916 | 11,875 |
Diluted (in shares) | 11,996 | 11,941 | 11,983 | 11,932 |
Dividends declared (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.66 | $ 0.54 |
Vegetation Management | ||||
Net sales: | ||||
Total net sales | $ 246,902 | $ 228,511 | $ 764,683 | $ 704,520 |
Income from operations | 30,251 | 27,130 | 102,320 | 78,261 |
Industrial Equipment | ||||
Net sales: | ||||
Total net sales | 172,742 | 140,282 | 507,426 | 422,492 |
Income from operations | $ 19,502 | $ 8,710 | $ 50,849 | $ 27,614 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 34,915 | $ 25,821 | $ 104,638 | $ 72,763 |
Other comprehensive loss, net of tax: | ||||
Foreign currency translation adjustments, net of tax benefit and (expense) of $62 and $(781), and $(352) and $(1,685), respectively | (12,718) | (24,921) | (556) | (43,076) |
Recognition of deferred pension and other post-retirement benefits, net of tax (expense) and benefit of $(83) and $61, and $(247) and $375, respectively | 282 | 206 | 847 | 617 |
Unrealized income (loss) on derivative instruments, net of tax benefit and (expense) of $7 and $(7), and $66 and $(745), respectively | (36) | 22 | (450) | 2,919 |
Other comprehensive loss | (12,472) | (24,693) | (159) | (39,540) |
Comprehensive income | $ 22,443 | $ 1,128 | $ 104,479 | $ 33,223 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Comprehensive Income [Abstract] | ||||
Foreign currency translation adjustment, tax (expense) benefit | $ 62 | $ (781) | $ (352) | $ (1,685) |
Net tax benefit (expense) on pension and other post-retirement benefits | (83) | 61 | (247) | 375 |
Net tax (expense) benefit on unrealized gain (loss) on derivative instruments | $ 7 | $ (7) | $ 66 | $ (745) |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | AdditionalPaid-in Capital | Treasury Stock | Retained Earnings | AccumulatedOtherComprehensive Loss |
Beginning balance ( in shares) at Dec. 31, 2021 | 11,791,000 | |||||
Beginning balance at Dec. 31, 2021 | $ 705,663 | $ 1,187 | $ 124,228 | $ (4,566) | $ 633,804 | $ (48,990) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 22,195 | 18,470 | 3,725 | |||
Stock-based compensation expense | 1,371 | 1,371 | ||||
Stock-based compensation transactions (in shares) | 20,000 | |||||
Stock-based compensation transactions | 84 | $ 2 | 82 | |||
Dividends paid | (2,133) | (2,133) | ||||
Ending balance (in shares) at Mar. 31, 2022 | 11,811,000 | |||||
Ending balance at Mar. 31, 2022 | 727,180 | $ 1,189 | 125,681 | (4,566) | 650,141 | (45,265) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 9,900 | 28,472 | (18,572) | |||
Stock-based compensation expense | 1,750 | 1,750 | ||||
Stock-based compensation transactions (in shares) | 15,000 | |||||
Stock-based compensation transactions | (249) | $ 2 | (251) | |||
Dividends paid | (2,139) | (2,139) | ||||
Ending balance (in shares) at Jun. 30, 2022 | 11,826,000 | |||||
Ending balance at Jun. 30, 2022 | 736,442 | $ 1,191 | 127,180 | (4,566) | 676,474 | (63,837) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 1,128 | 25,821 | (24,693) | |||
Stock-based compensation expense | 1,508 | 1,508 | ||||
Stock-based compensation transactions (in shares) | 1,000 | |||||
Stock-based compensation transactions | 92 | $ 0 | 92 | |||
Dividends paid | (2,139) | (2,139) | ||||
Ending balance (in shares) at Sep. 30, 2022 | 11,827,000 | |||||
Ending balance at Sep. 30, 2022 | $ 737,031 | $ 1,191 | 128,780 | (4,566) | 700,156 | (88,530) |
Beginning balance ( in shares) at Dec. 31, 2022 | 11,913,890 | 11,831,000 | ||||
Beginning balance at Dec. 31, 2022 | $ 785,360 | $ 1,191 | 129,820 | (4,566) | 727,183 | (68,268) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 37,763 | 33,349 | 4,414 | |||
Stock-based compensation expense | 1,699 | 1,699 | ||||
Stock-based compensation transactions (in shares) | 28,000 | |||||
Stock-based compensation transactions | 141 | $ 3 | 138 | |||
Dividends paid | (2,615) | (2,615) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 11,859,000 | |||||
Ending balance at Mar. 31, 2023 | 822,348 | $ 1,194 | 131,657 | (4,566) | 757,917 | (63,854) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 44,273 | 36,374 | 7,899 | |||
Stock-based compensation expense | 1,869 | 1,869 | ||||
Stock-based compensation transactions (in shares) | 17,000 | |||||
Stock-based compensation transactions | 74 | $ 2 | 72 | |||
Dividends paid | (2,622) | (2,622) | ||||
Ending balance (in shares) at Jun. 30, 2023 | 11,876,000 | |||||
Ending balance at Jun. 30, 2023 | 865,942 | $ 1,196 | 133,598 | (4,566) | 791,669 | (55,955) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Other comprehensive income | 22,443 | 34,915 | (12,472) | |||
Stock-based compensation expense | 1,805 | 1,805 | ||||
Stock-based compensation transactions (in shares) | 4,000 | |||||
Stock-based compensation transactions | 168 | 168 | ||||
Dividends paid | $ (2,624) | (2,624) | ||||
Ending balance (in shares) at Sep. 30, 2023 | 11,962,295 | 11,880,000 | ||||
Ending balance at Sep. 30, 2023 | $ 887,734 | $ 1,196 | $ 135,571 | $ (4,566) | $ 823,960 | $ (68,427) |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||||||||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.66 | $ 0.54 |
Interim Condensed Consolidate_8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Operating Activities | ||
Net income | $ 104,638 | $ 72,763 |
Adjustment to reconcile net income to net cash provided by (used in) operating activities: | ||
Provision for doubtful accounts | 367 | 319 |
Depreciation - Property, plant and equipment | 17,204 | 16,307 |
Depreciation - Rental equipment | 6,470 | 5,665 |
Amortization of intangibles | 11,465 | 11,481 |
Amortization of debt issuance | 527 | 500 |
Stock-based compensation expense | 5,373 | 4,629 |
Provision for deferred income tax | (3,971) | (4,029) |
Gain on sale of property, plant and equipment | (2,204) | (156) |
Changes in operating assets and liabilities: | ||
Accounts receivable | (60,885) | (74,884) |
Inventories | (19,220) | (54,122) |
Rental equipment | (11,176) | (6,416) |
Prepaid expenses and other assets | 1,535 | (802) |
Trade accounts payable and accrued liabilities | 21,784 | 5,696 |
Income taxes payable | 7,365 | 910 |
Long-term tax payable | (1,147) | (635) |
Other assets and long-term liabilities, net | (1,094) | 1,595 |
Net cash provided by (used in) operating activities | 77,031 | (21,179) |
Investing Activities | ||
Acquisitions, net of cash acquired | 0 | (2,000) |
Purchase of property, plant and equipment | (27,051) | (23,499) |
Proceeds from sale of property, plant and equipment | 3,094 | 527 |
Net cash used in investing activities | (23,957) | (24,972) |
Financing Activities | ||
Borrowings on bank revolving credit facility | 134,000 | 190,000 |
Repayments on bank revolving credit facility | (101,000) | (85,000) |
Principal payments on long-term debt and finance leases | (11,256) | (11,277) |
Dividends paid | (7,861) | (6,411) |
Proceeds from exercise of stock options | 1,417 | 639 |
Common stock repurchased | (1,034) | (712) |
Net cash provided by financing activities | 14,266 | 87,239 |
Effect of exchange rate changes on cash and cash equivalents | (822) | (7,895) |
Net change in cash and cash equivalents | 66,518 | 33,193 |
Cash and cash equivalents at beginning of the year | 47,016 | 42,115 |
Cash and cash equivalents at end of the period | 113,534 | 75,308 |
Cash paid during the period for: | ||
Interest | 18,729 | 9,742 |
Income taxes | $ 29,712 | $ 27,162 |
Basis of Financial Statement Pr
Basis of Financial Statement Presentation | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Financial Statement Presentation | Basis of Financial Statement Presentation General The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2022 (the "2022 10-K"). |
Accounts Receivable
Accounts Receivable | 9 Months Ended |
Sep. 30, 2023 | |
Receivables [Abstract] | |
Accounts Receivable | Accounts ReceivableAccounts receivable is shown net of sales discounts and the allowance for credit losses.At September 30, 2023 the Company had $23.4 million in reserves for sales discounts compared to $19.9 million at December 31, 2022 related to products shipped to our customers under various promotional programs. |
Inventories
Inventories | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value. Net inventories consist of the following: (in thousands) September 30, 2023 December 31, 2022 Finished goods $ 333,318 $ 312,726 Work in process 29,844 22,273 Raw materials 8,586 17,554 Inventories, net $ 371,748 $ 352,553 Inventory obsolescence reserves were $8.3 million at September 30, 2023 and $13.2 million at December 31, 2022. |
Rental Equipment
Rental Equipment | 9 Months Ended |
Sep. 30, 2023 | |
Property, Plant and Equipment [Abstract] | |
Rental Equipment | Rental EquipmentRental equipment is shown net of accumulated depreciation of $24.3 million and $22.3 million at September 30, 2023 and December 31, 2022, respectively. The Company recognized depreciation expense of $2.2 million and $1.9 million for the three months ended September 30, 2023 and 2022, respectively and $6.5 million and $5.7 million for the nine months ended September 30, 2023 and 2022, respectively. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements The carrying values of certain financial instruments, including cash and cash equivalents, accounts receivable, accounts payable, and accrued expenses, approximate their fair value because of the short-term nature of these items. The carrying value of our debt approximates the fair value as of September 30, 2023 and December 31, 2022, as the floating rates on our outstanding balances approximate current market rates. This conclusion was made based on Level 2 inputs. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The following is the summary of changes to the Company's Goodwill for the nine months ended September 30, 2023: (in thousands) Vegetation Management Industrial Equipment Consolidated Balance at December 31, 2022 $ 127,562 $ 68,296 $ 195,858 Translation adjustment 122 (117) 5 Balance at September 30, 2023 $ 127,684 $ 68,179 $ 195,863 The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: (in thousands) Estimated Useful Lives September 30, 2023 December 31, 2022 Definite: Trade names and trademarks 15-25 years $ 68,753 $ 68,797 Customer and dealer relationships 8-15 years 129,395 129,338 Patents and drawings 3-12 years 28,394 28,437 Favorable leasehold interests 7 years 4,200 4,200 Total at cost 230,742 230,772 Less accumulated amortization (76,358) (64,931) Total net 154,384 165,841 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 159,884 $ 171,341 The Company recognized amortization expense of $3.8 million and $3.8 million for the three months ended September 30, 2023 and 2022, respectively, and $11.5 million and $11.5 million for the nine months ended September 30, 2023 and 2022 , respectively. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Leases | Leases The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The finance leases currently held are considered immaterial. The components of lease cost were as follows: Components of Lease Cost Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2 $ 6 $ 7 $ 25 Interest on lease liabilities 1 — 1 1 Operating lease cost 1,513 1,414 4,453 4,345 Short-term lease cost 306 320 935 953 Variable lease cost 69 56 220 268 Total lease cost $ 1,891 $ 1,796 $ 5,616 $ 5,592 Rent expense for the three and nine months ended September 30, 2023 and 2022 was immaterial. Maturities of operating lease liabilities were as follows: Future Minimum Lease Payments (in thousands) September 30, 2023 December 31, 2022 2023 $ 1,432 * $ 5,177 2024 5,115 4,099 2025 4,094 3,294 2026 2,941 2,728 2027 1,882 1,780 Thereafter 1,747 1,743 Total minimum lease payments $ 17,211 $ 18,821 Less imputed interest (1,140) (1,287) Total operating lease liabilities $ 16,071 $ 17,534 *Period ended September 30, 2023 represents the remaining three months of 2023. Future Lease Commencements As of September 30, 2023, there are additional operating leases, primarily for buildings, that have not yet commenced in the amount of $4.1 million. These operating leases will commence in fiscal year 2024 with lease terms of 2 to 3 years. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) September 30, 2023 December 31, 2022 Other non-current assets $ 15,768 $ 17,249 Accrued liabilities 4,877 4,685 Other long-term liabilities 11,194 12,849 Total operating lease liabilities $ 16,071 $ 17,534 Weighted Average Remaining Lease Term 4.03 years 4.66 years Weighted Average Discount Rate 3.85 % 3.30 % Supplemental Cash Flow information related to leases was as follows: Nine Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,994 $ 3,971 |
Leases | Leases The Company leases office space and equipment under various operating and finance leases, which generally are expected to be renewed or replaced by other leases. The finance leases currently held are considered immaterial. The components of lease cost were as follows: Components of Lease Cost Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2 $ 6 $ 7 $ 25 Interest on lease liabilities 1 — 1 1 Operating lease cost 1,513 1,414 4,453 4,345 Short-term lease cost 306 320 935 953 Variable lease cost 69 56 220 268 Total lease cost $ 1,891 $ 1,796 $ 5,616 $ 5,592 Rent expense for the three and nine months ended September 30, 2023 and 2022 was immaterial. Maturities of operating lease liabilities were as follows: Future Minimum Lease Payments (in thousands) September 30, 2023 December 31, 2022 2023 $ 1,432 * $ 5,177 2024 5,115 4,099 2025 4,094 3,294 2026 2,941 2,728 2027 1,882 1,780 Thereafter 1,747 1,743 Total minimum lease payments $ 17,211 $ 18,821 Less imputed interest (1,140) (1,287) Total operating lease liabilities $ 16,071 $ 17,534 *Period ended September 30, 2023 represents the remaining three months of 2023. Future Lease Commencements As of September 30, 2023, there are additional operating leases, primarily for buildings, that have not yet commenced in the amount of $4.1 million. These operating leases will commence in fiscal year 2024 with lease terms of 2 to 3 years. Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) September 30, 2023 December 31, 2022 Other non-current assets $ 15,768 $ 17,249 Accrued liabilities 4,877 4,685 Other long-term liabilities 11,194 12,849 Total operating lease liabilities $ 16,071 $ 17,534 Weighted Average Remaining Lease Term 4.03 years 4.66 years Weighted Average Discount Rate 3.85 % 3.30 % Supplemental Cash Flow information related to leases was as follows: Nine Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,994 $ 3,971 |
Debt
Debt | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Debt | Debt The components of long-term debt are as follows: September 30, 2023 December 31, 2022 Current Maturities: Finance lease obligations $ 8 $ 9 Term debt 15,000 15,000 15,008 15,009 Long-term debt: Finance lease obligations 9 15 Term debt, net 223,883 234,928 Bank revolving credit facility 85,000 52,000 Total Long-term debt 308,892 286,943 Total debt $ 323,900 $ 301,952 |
Common Stock and Dividends
Common Stock and Dividends | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Common Stock and Dividends | Common Stock and Dividends Dividends declared and paid on a per share basis were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Dividends declared $ 0.22 $ 0.18 $ 0.66 $ 0.54 Dividends paid $ 0.22 $ 0.18 $ 0.66 $ 0.54 On October 2, 2023, the Company announced that its Board of Directors had declared a quarterly cash dividend of $0.22 per share, which was paid on October 31, 2023, to shareholders of record at the close of business on October 16, 2023. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations do not differ. Three Months Ended Nine Months Ended (In thousands, except per share) 2023 2022 2023 2022 Net Income $ 34,915 $ 25,821 $ 104,638 $ 72,763 Average Common Shares: Basic (weighted-average outstanding shares) 11,928 11,883 11,916 11,875 Dilutive potential common shares from stock options 68 58 67 57 Diluted (weighted-average outstanding shares) 11,996 11,941 11,983 11,932 Basic earnings per share $ 2.93 $ 2.18 $ 8.78 $ 6.13 Diluted earnings per share $ 2.91 $ 2.16 $ 8.73 $ 6.10 |
Revenue and Segment Information
Revenue and Segment Information | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Revenue and Segment Information | Revenue and Segment Information Revenues from Contracts with Customers Disaggregation of revenue is presented in the tables below by product type and by geographical location. Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Net Sales Wholegoods $ 326,843 $ 282,619 $ 1,010,281 $ 877,446 Parts 78,739 76,047 221,071 214,844 Other 14,062 10,127 40,757 34,722 Consolidated $ 419,644 $ 368,793 $ 1,272,109 $ 1,127,012 Other includes rental sales, extended warranty sales and service sales as they are considered immaterial. Revenue by Geographical Location Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Net Sales United States $ 295,021 $ 264,915 $ 898,914 $ 803,204 Canada 37,720 24,753 102,049 68,482 France 20,959 18,369 70,324 65,086 United Kingdom 19,277 17,613 61,266 52,682 Brazil 13,322 9,688 37,354 36,891 Netherlands 7,720 8,570 26,603 15,912 Australia 6,332 7,513 21,882 20,454 Germany 3,754 2,757 9,326 4,515 Other 15,539 14,615 44,391 59,786 Consolidated $ 419,644 $ 368,793 $ 1,272,109 $ 1,127,012 Net sales are attributed to countries based on the location of the customer. Segment Information The following includes a summary of the unaudited financial information by reporting segment at September 30, 2023: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Net Sales Vegetation Management $ 246,902 $ 228,511 $ 764,683 $ 704,520 Industrial Equipment 172,742 140,282 507,426 422,492 Consolidated $ 419,644 $ 368,793 $ 1,272,109 $ 1,127,012 Income from Operations Vegetation Management $ 30,251 $ 27,130 $ 102,320 $ 78,261 Industrial Equipment 19,502 8,710 50,849 27,614 Consolidated $ 49,753 $ 35,840 $ 153,169 $ 105,875 (in thousands) September 30, 2023 December 31, 2022 Goodwill Vegetation Management $ 127,684 $ 127,562 Industrial Equipment 68,179 68,296 Consolidated $ 195,863 $ 195,858 Total Identifiable Assets Vegetation Management $ 941,288 $ 866,974 Industrial Equipment 514,226 441,534 Consolidated $ 1,455,514 $ 1,308,508 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss Changes in accumulated other comprehensive loss by component, net of tax, were as follows: Three Months Ended September 30, 2023 2022 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Balance as of beginning of period $ (53,267) $ (2,745) $ 57 $ (55,955) $ (60,552) $ (4,606) $ 1,321 $ (63,837) Other comprehensive income (loss) before reclassifications (12,718) — (97) (12,815) (24,921) — (373) (25,294) Amounts reclassified from accumulated other comprehensive (income) loss — 282 61 343 — 206 395 601 Other comprehensive income (loss) (12,718) 282 (36) (12,472) (24,921) 206 22 (24,693) Balance as of end of period $ (65,985) $ (2,463) $ 21 $ (68,427) $ (85,473) $ (4,400) $ 1,343 $ (88,530) Nine Months Ended September 30, 2023 2022 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Balance as of beginning of period $ (65,429) $ (3,310) $ 471 $ (68,268) $ (42,397) $ (5,017) $ (1,576) $ (48,990) Other comprehensive income (loss) before reclassifications (556) — (1,037) (1,593) (43,076) — 3,503 (39,573) Amounts reclassified from accumulated other comprehensive (income) loss — 847 587 1,434 — 617 (584) 33 Other comprehensive income (loss) (556) 847 (450) (159) (43,076) 617 2,919 (39,540) Balance as of end of period $ (65,985) $ (2,463) $ 21 $ (68,427) $ (85,473) $ (4,400) $ 1,343 $ (88,530) |
Subsequent Events
Subsequent Events | 9 Months Ended |
Sep. 30, 2023 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent EventsOn October 10, 2023, the Company announced that it acquired 100% of the outstanding equity capital of Royal Truck & Equipment, Inc. ("Royal Truck"). Royal Truck is a leading manufacturer of truck mounted highway attenuator trucks and other specialty trucks and equipment for the highway infrastructure and traffic control market. Royal Truck represents the Company's entry into the highway safety equipment market, a new platform for future opportunities. The purchase price was approximately $28 million subject to post closing adjustments. The Company will include the operating results of Royal Truck in its consolidated financial statements as of December 31, 2023, these results are expected to be immaterial. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Pay vs Performance Disclosure | ||||
Net income | $ 34,915 | $ 25,821 | $ 104,638 | $ 72,763 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 30, 2023 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Basis of Financial Statement _2
Basis of Financial Statement Presentation (Policies) | 9 Months Ended |
Sep. 30, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | General The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2023. The balance sheet at December 31, 2022 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements. For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2022 (the "2022 10-K"). |
Inventories (Tables)
Inventories (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Net inventories consist of the following: (in thousands) September 30, 2023 December 31, 2022 Finished goods $ 333,318 $ 312,726 Work in process 29,844 22,273 Raw materials 8,586 17,554 Inventories, net $ 371,748 $ 352,553 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following is the summary of changes to the Company's Goodwill for the nine months ended September 30, 2023: (in thousands) Vegetation Management Industrial Equipment Consolidated Balance at December 31, 2022 $ 127,562 $ 68,296 $ 195,858 Translation adjustment 122 (117) 5 Balance at September 30, 2023 $ 127,684 $ 68,179 $ 195,863 |
Schedule of Finite-Lived Intangible Assets | The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: (in thousands) Estimated Useful Lives September 30, 2023 December 31, 2022 Definite: Trade names and trademarks 15-25 years $ 68,753 $ 68,797 Customer and dealer relationships 8-15 years 129,395 129,338 Patents and drawings 3-12 years 28,394 28,437 Favorable leasehold interests 7 years 4,200 4,200 Total at cost 230,742 230,772 Less accumulated amortization (76,358) (64,931) Total net 154,384 165,841 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 159,884 $ 171,341 |
Schedule of Indefinite-Lived Intangible Assets | The following is a summary of the Company's definite and indefinite-lived intangible assets net of the accumulated amortization: (in thousands) Estimated Useful Lives September 30, 2023 December 31, 2022 Definite: Trade names and trademarks 15-25 years $ 68,753 $ 68,797 Customer and dealer relationships 8-15 years 129,395 129,338 Patents and drawings 3-12 years 28,394 28,437 Favorable leasehold interests 7 years 4,200 4,200 Total at cost 230,742 230,772 Less accumulated amortization (76,358) (64,931) Total net 154,384 165,841 Indefinite: Trade names and trademarks 5,500 5,500 Total Intangible Assets $ 159,884 $ 171,341 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Leases [Abstract] | |
Schedule of Components of Lease Expense | The components of lease cost were as follows: Components of Lease Cost Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Finance lease cost: Amortization of right-of-use assets $ 2 $ 6 $ 7 $ 25 Interest on lease liabilities 1 — 1 1 Operating lease cost 1,513 1,414 4,453 4,345 Short-term lease cost 306 320 935 953 Variable lease cost 69 56 220 268 Total lease cost $ 1,891 $ 1,796 $ 5,616 $ 5,592 |
Schedule of Operating Lease Maturity | Maturities of operating lease liabilities were as follows: Future Minimum Lease Payments (in thousands) September 30, 2023 December 31, 2022 2023 $ 1,432 * $ 5,177 2024 5,115 4,099 2025 4,094 3,294 2026 2,941 2,728 2027 1,882 1,780 Thereafter 1,747 1,743 Total minimum lease payments $ 17,211 $ 18,821 Less imputed interest (1,140) (1,287) Total operating lease liabilities $ 16,071 $ 17,534 *Period ended September 30, 2023 represents the remaining three months of 2023. |
Schedule of Supplemental Balance Sheet Information Related to Leases | Supplemental balance sheet information related to leases was as follows: Operating Leases (in thousands) September 30, 2023 December 31, 2022 Other non-current assets $ 15,768 $ 17,249 Accrued liabilities 4,877 4,685 Other long-term liabilities 11,194 12,849 Total operating lease liabilities $ 16,071 $ 17,534 Weighted Average Remaining Lease Term 4.03 years 4.66 years Weighted Average Discount Rate 3.85 % 3.30 % |
Schedule of Supplemental Cash Flow Information Related to Leases | Supplemental Cash Flow information related to leases was as follows: Nine Months Ended (in thousands) 2023 2022 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 3,994 $ 3,971 |
Debt (Tables)
Debt (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Debt Disclosure [Abstract] | |
Schedule of Components of Long-Term Debt | The components of long-term debt are as follows: September 30, 2023 December 31, 2022 Current Maturities: Finance lease obligations $ 8 $ 9 Term debt 15,000 15,000 15,008 15,009 Long-term debt: Finance lease obligations 9 15 Term debt, net 223,883 234,928 Bank revolving credit facility 85,000 52,000 Total Long-term debt 308,892 286,943 Total debt $ 323,900 $ 301,952 |
Common Stock and Dividends (Tab
Common Stock and Dividends (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Dividends Declared and Paid | Dividends declared and paid on a per share basis were as follows: Three Months Ended Nine Months Ended 2023 2022 2023 2022 Dividends declared $ 0.22 $ 0.18 $ 0.66 $ 0.54 Dividends paid $ 0.22 $ 0.18 $ 0.66 $ 0.54 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table sets forth the reconciliation from basic to diluted average common shares and the calculations of net income per common share. Net income for basic and diluted calculations do not differ. Three Months Ended Nine Months Ended (In thousands, except per share) 2023 2022 2023 2022 Net Income $ 34,915 $ 25,821 $ 104,638 $ 72,763 Average Common Shares: Basic (weighted-average outstanding shares) 11,928 11,883 11,916 11,875 Dilutive potential common shares from stock options 68 58 67 57 Diluted (weighted-average outstanding shares) 11,996 11,941 11,983 11,932 Basic earnings per share $ 2.93 $ 2.18 $ 8.78 $ 6.13 Diluted earnings per share $ 2.91 $ 2.16 $ 8.73 $ 6.10 |
Revenue and Segment Informati_2
Revenue and Segment Information (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Segment Reporting [Abstract] | |
Schedule of Disaggregation of Revenue | Disaggregation of revenue is presented in the tables below by product type and by geographical location. Management has determined that this level of disaggregation would be beneficial to users of the financial statements. Revenue by Product Type Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Net Sales Wholegoods $ 326,843 $ 282,619 $ 1,010,281 $ 877,446 Parts 78,739 76,047 221,071 214,844 Other 14,062 10,127 40,757 34,722 Consolidated $ 419,644 $ 368,793 $ 1,272,109 $ 1,127,012 Other includes rental sales, extended warranty sales and service sales as they are considered immaterial. Revenue by Geographical Location Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Net Sales United States $ 295,021 $ 264,915 $ 898,914 $ 803,204 Canada 37,720 24,753 102,049 68,482 France 20,959 18,369 70,324 65,086 United Kingdom 19,277 17,613 61,266 52,682 Brazil 13,322 9,688 37,354 36,891 Netherlands 7,720 8,570 26,603 15,912 Australia 6,332 7,513 21,882 20,454 Germany 3,754 2,757 9,326 4,515 Other 15,539 14,615 44,391 59,786 Consolidated $ 419,644 $ 368,793 $ 1,272,109 $ 1,127,012 |
Schedule of Segment Reporting Information, by Segment | The following includes a summary of the unaudited financial information by reporting segment at September 30, 2023: Three Months Ended Nine Months Ended (in thousands) 2023 2022 2023 2022 Net Sales Vegetation Management $ 246,902 $ 228,511 $ 764,683 $ 704,520 Industrial Equipment 172,742 140,282 507,426 422,492 Consolidated $ 419,644 $ 368,793 $ 1,272,109 $ 1,127,012 Income from Operations Vegetation Management $ 30,251 $ 27,130 $ 102,320 $ 78,261 Industrial Equipment 19,502 8,710 50,849 27,614 Consolidated $ 49,753 $ 35,840 $ 153,169 $ 105,875 (in thousands) September 30, 2023 December 31, 2022 Goodwill Vegetation Management $ 127,684 $ 127,562 Industrial Equipment 68,179 68,296 Consolidated $ 195,863 $ 195,858 Total Identifiable Assets Vegetation Management $ 941,288 $ 866,974 Industrial Equipment 514,226 441,534 Consolidated $ 1,455,514 $ 1,308,508 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 9 Months Ended |
Sep. 30, 2023 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | Changes in accumulated other comprehensive loss by component, net of tax, were as follows: Three Months Ended September 30, 2023 2022 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Balance as of beginning of period $ (53,267) $ (2,745) $ 57 $ (55,955) $ (60,552) $ (4,606) $ 1,321 $ (63,837) Other comprehensive income (loss) before reclassifications (12,718) — (97) (12,815) (24,921) — (373) (25,294) Amounts reclassified from accumulated other comprehensive (income) loss — 282 61 343 — 206 395 601 Other comprehensive income (loss) (12,718) 282 (36) (12,472) (24,921) 206 22 (24,693) Balance as of end of period $ (65,985) $ (2,463) $ 21 $ (68,427) $ (85,473) $ (4,400) $ 1,343 $ (88,530) Nine Months Ended September 30, 2023 2022 (in thousands) Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Foreign Currency Translation Adjustment Defined Benefit Plans Items Gains (Losses) on Cash Flow Hedges Total Balance as of beginning of period $ (65,429) $ (3,310) $ 471 $ (68,268) $ (42,397) $ (5,017) $ (1,576) $ (48,990) Other comprehensive income (loss) before reclassifications (556) — (1,037) (1,593) (43,076) — 3,503 (39,573) Amounts reclassified from accumulated other comprehensive (income) loss — 847 587 1,434 — 617 (584) 33 Other comprehensive income (loss) (556) 847 (450) (159) (43,076) 617 2,919 (39,540) Balance as of end of period $ (65,985) $ (2,463) $ 21 $ (68,427) $ (85,473) $ (4,400) $ 1,343 $ (88,530) |
Accounts Receivable (Details)
Accounts Receivable (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Reserves for sales discounts | ||
Valuation and Qualifying Accounts Disclosure [Line Items] | ||
Reserves for sales discounts on products shipped under promotional programs | $ 23.4 | $ 19.9 |
Inventories - Schedule of Inven
Inventories - Schedule of Inventories (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Finished goods | $ 333,318 | $ 312,726 |
Work in process | 29,844 | 22,273 |
Raw materials | 8,586 | 17,554 |
Inventories, net | $ 371,748 | $ 352,553 |
Inventories - Additional Inform
Inventories - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2023 | Dec. 31, 2022 |
Inventory Disclosure [Abstract] | ||
Inventory obsolescence reserves | $ 8.3 | $ 13.2 |
Rental Equipment (Details)
Rental Equipment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation | $ 192,715 | $ 192,715 | $ 180,071 | ||
Depreciation | 17,204 | $ 16,307 | |||
Rental Equipment | |||||
Property, Plant and Equipment [Line Items] | |||||
Accumulated depreciation | 24,300 | 24,300 | $ 22,300 | ||
Depreciation | $ 2,200 | $ 1,900 | $ 6,500 | $ 5,700 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Goodwill (Details) $ in Thousands | 9 Months Ended |
Sep. 30, 2023 USD ($) | |
Goodwill [Roll Forward] | |
Goodwill, balance at the beginning of the period | $ 195,858 |
Translation adjustment | 5 |
Goodwill, balance at the end of the period | 195,863 |
Vegetation Management | |
Goodwill [Roll Forward] | |
Goodwill, balance at the beginning of the period | 127,562 |
Translation adjustment | 122 |
Goodwill, balance at the end of the period | 127,684 |
Industrial Equipment | |
Goodwill [Roll Forward] | |
Goodwill, balance at the beginning of the period | 68,296 |
Translation adjustment | (117) |
Goodwill, balance at the end of the period | $ 68,179 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Definite and Indefinite Lived Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Total at cost | $ 230,742 | $ 230,772 |
Less accumulated amortization | (76,358) | (64,931) |
Total net | 154,384 | 165,841 |
Total Intangible Assets | 159,884 | 171,341 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Indefinite-Trade names and trademarks | 5,500 | 5,500 |
Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Total at cost | 68,753 | 68,797 |
Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Total at cost | 129,395 | 129,338 |
Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Total at cost | $ 28,394 | 28,437 |
Favorable leasehold interests | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 7 years | |
Total at cost | $ 4,200 | $ 4,200 |
Minimum | Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 15 years | |
Minimum | Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 8 years | |
Minimum | Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 3 years | |
Maximum | Trade names and trademarks | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 25 years | |
Maximum | Customer and dealer relationships | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 15 years | |
Maximum | Patents and drawings | ||
Schedule of Acquired Indefinite-lived and Finite Intangible Assets by major class [Line Items] | ||
Estimated Useful Lives | 12 years |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization expense | $ 3,826 | $ 3,802 | $ 11,465 | $ 11,481 |
Leases - Lease Cost (Details)
Leases - Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Finance lease cost: | ||||
Amortization of right-of-use assets | $ 2 | $ 6 | $ 7 | $ 25 |
Interest on lease liabilities | 1 | 0 | 1 | 1 |
Operating lease cost | 1,513 | 1,414 | 4,453 | 4,345 |
Short-term lease cost | 306 | 320 | 935 | 953 |
Variable lease cost | 69 | 56 | 220 | 268 |
Total lease cost | $ 1,891 | $ 1,796 | $ 5,616 | $ 5,592 |
Leases - Maturity Schedule (Det
Leases - Maturity Schedule (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Future Minimum Lease Payments | ||
Remainder of fiscal year | $ 1,432 | |
Year one | 5,115 | $ 5,177 |
Year two | 4,094 | 4,099 |
Year three | 2,941 | 3,294 |
Year four | 1,882 | 2,728 |
Year five | 1,780 | |
Thereafter | 1,747 | |
Thereafter | 1,743 | |
Total minimum lease payments | 17,211 | 18,821 |
Less imputed interest | (1,140) | (1,287) |
Total operating lease liabilities | $ 16,071 | $ 17,534 |
Leases - Additional Information
Leases - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Lessee, Lease, Description [Line Items] | |
Additional operating lease not yet commenced | $ 4.1 |
Minimum | |
Lessee, Lease, Description [Line Items] | |
Additional operating lease not yet commenced, lease terms | 2 years |
Maximum | |
Lessee, Lease, Description [Line Items] | |
Additional operating lease not yet commenced, lease terms | 3 years |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet Information (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Operating Leases | ||
Other non-current assets | $ 15,768 | $ 17,249 |
Accrued liabilities | 4,877 | 4,685 |
Other long-term liabilities | 11,194 | 12,849 |
Total operating lease liabilities | $ 16,071 | $ 17,534 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other non-current assets | Other non-current assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible Enumeration] | Accrued liabilities | Accrued liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible Enumeration] | Other long-term liabilities | Other long-term liabilities |
Weighted Average Remaining Lease Term | 4 years 10 days | 4 years 7 months 28 days |
Weighted Average Discount Rate | 3.85% | 3.30% |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2023 | Sep. 30, 2022 | |
Leases [Abstract] | ||
Operating cash flows from operating leases | $ 3,994 | $ 3,971 |
Debt - Schedule of Components o
Debt - Schedule of Components of Long-Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2023 | Dec. 31, 2022 |
Current Maturities: | ||
Finance lease obligations | $ 8 | $ 9 |
Term debt | 15,000 | 15,000 |
Total Long-term debt, current maturities | 15,008 | 15,009 |
Long-term debt: | ||
Finance lease obligations | 9 | 15 |
Total Long-term debt | 308,892 | 286,943 |
Total debt | 323,900 | 301,952 |
Term debt, net | ||
Long-term debt: | ||
Long-term debt, excluding current maturities | 223,883 | 234,928 |
Bank revolving credit facility | Bank revolving credit facility | ||
Long-term debt: | ||
Long-term debt, excluding current maturities | $ 85,000 | $ 52,000 |
Debt - Additional Information (
Debt - Additional Information (Details) $ in Millions | Sep. 30, 2023 USD ($) |
Standby Letters of Credit | |
Debt Instrument [Line Items] | |
Amount of capacity | $ 2.4 |
Revolving Line of Credit | |
Debt Instrument [Line Items] | |
Available borrowings | $ 312.6 |
Common Stock and Dividends - Di
Common Stock and Dividends - Dividend Declared and Paid (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Stockholders' Equity Note [Abstract] | ||||||||
Dividends declared (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.66 | $ 0.54 | ||||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.66 | $ 0.54 |
Common Stock and Dividends - Ad
Common Stock and Dividends - Additional Information (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||||||||
Oct. 31, 2023 | Oct. 02, 2023 | Sep. 30, 2023 | Jun. 30, 2023 | Mar. 31, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Class of Stock [Line Items] | ||||||||||
Dividends declared (in dollars per share) | $ 0.22 | $ 0.18 | $ 0.66 | $ 0.54 | ||||||
Dividends paid (in dollars per share) | $ 0.22 | $ 0.22 | $ 0.22 | $ 0.18 | $ 0.18 | $ 0.18 | $ 0.66 | $ 0.54 | ||
Subsequent Event | ||||||||||
Class of Stock [Line Items] | ||||||||||
Dividends declared (in dollars per share) | $ 0.22 | |||||||||
Dividends paid (in dollars per share) | $ 0.22 |
Earnings Per Share - Calculatio
Earnings Per Share - Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 34,915 | $ 25,821 | $ 104,638 | $ 72,763 |
Average Common Shares: | ||||
Basic (weighted-average outstanding shares) (in shares) | 11,928 | 11,883 | 11,916 | 11,875 |
Dilutive potential common shares from stock options (in shares) | 68 | 58 | 67 | 57 |
Diluted (weighted-average outstanding shares) (in shares) | 11,996 | 11,941 | 11,983 | 11,932 |
Basic earnings per share (in dollars per share) | $ 2.93 | $ 2.18 | $ 8.78 | $ 6.13 |
Diluted earnings per share (in dollars per share) | $ 2.91 | $ 2.16 | $ 8.73 | $ 6.10 |
Revenue and Segment Informati_3
Revenue and Segment Information - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 419,644 | $ 368,793 | $ 1,272,109 | $ 1,127,012 |
Wholegoods | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 326,843 | 282,619 | 1,010,281 | 877,446 |
Parts | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 78,739 | 76,047 | 221,071 | 214,844 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 14,062 | $ 10,127 | $ 40,757 | $ 34,722 |
Revenue and Segment Informati_4
Revenue and Segment Information - Revenue by Geographical Location (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 419,644 | $ 368,793 | $ 1,272,109 | $ 1,127,012 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 295,021 | 264,915 | 898,914 | 803,204 |
Canada | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 37,720 | 24,753 | 102,049 | 68,482 |
France | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 20,959 | 18,369 | 70,324 | 65,086 |
United Kingdom | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 19,277 | 17,613 | 61,266 | 52,682 |
Brazil | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 13,322 | 9,688 | 37,354 | 36,891 |
Netherlands | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 7,720 | 8,570 | 26,603 | 15,912 |
Australia | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 6,332 | 7,513 | 21,882 | 20,454 |
Germany | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | 3,754 | 2,757 | 9,326 | 4,515 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Net Sales | $ 15,539 | $ 14,615 | $ 44,391 | $ 59,786 |
Revenue and Segment Informati_5
Revenue and Segment Information - Schedule of Segment Reporting Information, by Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | Dec. 31, 2022 | |
Segment Reporting Information [Line Items] | |||||
Net Sales | $ 419,644 | $ 368,793 | $ 1,272,109 | $ 1,127,012 | |
Income from Operations | 49,753 | 35,840 | 153,169 | 105,875 | |
Goodwill | 195,863 | 195,863 | $ 195,858 | ||
Total Identifiable Assets | 1,455,514 | 1,455,514 | 1,308,508 | ||
Vegetation Management | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 246,902 | 228,511 | 764,683 | 704,520 | |
Income from Operations | 30,251 | 27,130 | 102,320 | 78,261 | |
Goodwill | 127,684 | 127,684 | 127,562 | ||
Total Identifiable Assets | 941,288 | 941,288 | 866,974 | ||
Industrial Equipment | |||||
Segment Reporting Information [Line Items] | |||||
Net Sales | 172,742 | 140,282 | 507,426 | 422,492 | |
Income from Operations | 19,502 | $ 8,710 | 50,849 | $ 27,614 | |
Goodwill | 68,179 | 68,179 | 68,296 | ||
Total Identifiable Assets | $ 514,226 | $ 514,226 | $ 441,534 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2023 | Sep. 30, 2022 | Sep. 30, 2023 | Sep. 30, 2022 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | $ 865,942 | $ 736,442 | $ 785,360 | $ 705,663 |
Other comprehensive income (loss) before reclassifications | (12,815) | (25,294) | ||
Amounts reclassified from accumulated other comprehensive (income) loss | 343 | 601 | ||
Other comprehensive income (loss) | (12,472) | (24,693) | (159) | (39,540) |
Ending balance | 887,734 | 737,031 | 887,734 | 737,031 |
Foreign Currency Translation Adjustment | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (53,267) | (60,552) | (65,429) | (42,397) |
Other comprehensive income (loss) before reclassifications | (12,718) | (24,921) | (556) | (43,076) |
Amounts reclassified from accumulated other comprehensive (income) loss | 0 | 0 | 0 | 0 |
Other comprehensive income (loss) | (12,718) | (24,921) | (556) | (43,076) |
Ending balance | (65,985) | (85,473) | (65,985) | (85,473) |
Defined Benefit Plans Items | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (2,745) | (4,606) | (3,310) | (5,017) |
Other comprehensive income (loss) before reclassifications | 0 | 0 | 0 | 0 |
Amounts reclassified from accumulated other comprehensive (income) loss | 282 | 206 | 847 | 617 |
Other comprehensive income (loss) | 282 | 206 | 847 | 617 |
Ending balance | (2,463) | (4,400) | (2,463) | (4,400) |
Gains (Losses) on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | 57 | 1,321 | 471 | (1,576) |
Other comprehensive income (loss) before reclassifications | (97) | (373) | (1,037) | 3,503 |
Amounts reclassified from accumulated other comprehensive (income) loss | 61 | 395 | 587 | (584) |
Other comprehensive income (loss) | (36) | 22 | (450) | 2,919 |
Ending balance | 21 | 1,343 | 21 | 1,343 |
AccumulatedOtherComprehensive Loss | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning balance | (55,955) | (63,837) | (68,268) | (48,990) |
Other comprehensive income (loss) before reclassifications | (1,593) | (39,573) | ||
Amounts reclassified from accumulated other comprehensive (income) loss | 1,434 | 33 | ||
Other comprehensive income (loss) | (159) | (39,540) | ||
Ending balance | $ (68,427) | $ (88,530) | $ (68,427) | $ (88,530) |
Subsequent Events (Details)
Subsequent Events (Details) - Royal Truck & Equipment, Inc. ("Royal Truck") - Subsequent Event $ in Millions | Oct. 10, 2023 USD ($) |
Subsequent Event [Line Items] | |
Percentage of outstanding capital shares acquired | 100% |
Purchase price | $ 28 |