FALSE000089707700008970772024-07-312024-07-31

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
 
FORM 8-K
 
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
 
 
Date of Report (Date of earliest event reported): July 31, 2024
 
Alamo Group Inc.
(Exact name of registrant as specified in its charter)
 
State of Delaware
0-21220
74-1621248
(State or other jurisdiction of incorporation)(Commission File No.)(IRS Employer Identification No.)
  
1627 E. Walnut, Seguin, Texas
78155
(Address of Registrant’s principal executive offices)(Zip Code)
(830) 379-1480
Registrant's telephone number, including area code:
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value
$.10 per share
ALGNew York Stock Exchange
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:
 
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) 
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) 
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) 
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of
the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of
1934 (§240.12b-2 of this chapter).Emerging growth company ☐ 

If an emerging growth company, indicate by check mark if the registrant has elected not to use the
extended transition period for complying with any new or revised financial accounting standards provided
pursuant to Section 13(a) of the Exchange Act. ☐ 


Item 2.02    Results of Operations and Financial Condition
On July 31, 2024, Alamo Group Inc. issued a press release announcing, among other things, financial results for the quarter ended June 30, 2024.  A copy of the press release is filed as Exhibit 99.1 to this Current Report on Form 8-K. The foregoing description is qualified by reference to such exhibit.
The information furnished in this report, including the exhibit, shall not be deemed to be incorporated by reference into any of Alamo Group filings with the SEC under the Securities Act of 1933, except as shall be expressly set forth by specific reference in any such filing, and shall not be deemed to be "filed" with the SEC under the Securities Exchange Act of 1934.

Item 9.01    Financial Statements and Exhibits
Exhibit 99.1 - Press Release dated July 31, 2024.
Exhibit 104 - Cover Page Interactive Data File - Inline XBRL for the cover page of this Current Report on Form 8-K



SIGNATURES
 
 
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 
July 31, 2024
By:  /s/ Edward T. Rizzuti         
  Edward T. Rizzuti,
  General Counsel & Secretary



EXHIBIT INDEX
 
Exhibit No.
Description
 
99.1
104Cover Page Interactive Data File - Inline XBRL for the cover page of this Current Report on Form 8-K




logoforfilinga.jpg
For:Alamo Group Inc.
Contact:Agnes Kamps
Executive Vice President & CFO
830-372-9615
Financial Relations Board
Joe Calabrese
212-827-3772


ALAMO GROUP ANNOUNCES FINANCIAL RESULTS
FOR THE SECOND QUARTER OF 2024

SEGUIN, Texas, July 31, 2024 -- Alamo Group Inc. (NYSE: ALG) today reported results for the second quarter ended June 30, 2024.

Highlights for the Quarter

•Net Sales of $416.3 million, down 5.5% versus prior year
◦Industrial Equipment net sales of $204.8 million, up 14.2%
◦Vegetation Management net sales of $211.5 million, down 19.1%
•Income from operations of $43.3 million, 10.4% of net sales
•Net income of $28.3 million
•Second quarter fully diluted EPS of $2.35 per share; EPS results of $2.35 per share include the unfavorable impact of Gradall strike of approximately $0.22 per share
•Total debt net of cash improved $60.5 million or 25.7% compared to second quarter 2023(1)
•Backlog remained healthy at $768.9 million at the end of the second quarter 2024(1)
•Trailing twelve-month EBITDA of $236.6 million, at 14.1% of Net Sales(1)
•Cost reduction actions taken expected to achieve approximately $10 million of savings in the remainder of 2024, net of restructuring costs

Results for the Quarter

Second quarter 2024 net sales were $416.3 million compared to $440.7 million in the second quarter of 2023. Gross margin was $108.2 million, or 26.0% of net sales, compared to $118.1 million, or 26.8% of



ALAMO GROUP ANNOUNCES 2024 SECOND QUARTER SALES AND EARNINGS Page 2


net sales in the comparison period of 2023. Strong Industrial Equipment Division results partially offset the Vegetation Management headwinds.

Net income was $28.3 million, or $2.35 per diluted share, compared to $36.4 million, or $3.03 per diluted share, in the second quarter of 2023. The Company's backlog at the end of the second quarter remained
healthy at $768.9 million. While Vegetation Management backlog normalized to pre-Covid levels, Industrial Equipment backlog continues to grow and is 16% higher versus the end of the second quarter 2023.

Comments on Results
Jeff Leonard, Alamo Group’s President and Chief Executive Officer commented, “The second quarter, as expected, proved to be challenging for us despite a very strong performance from our Industrial Equipment Division. Global softness in the markets for our Vegetation Management equipment continued, and channel inventories remained above normal levels. Order activity remained strong in the Industrial Equipment Division as both governmental and industrial customers continued to invest in their maintenance equipment fleets at an elevated pace.
“We were pleased that our Industrial Equipment Division had another outstanding quarter with second quarter net sales of $204.8 million, up 14%, versus the second quarter of 2023. The strong sales growth came despite the five-week strike by the unionized workers at the Company's Gradall manufacturing facility. The Division’s profitability was excellent with second quarter operating income of $27.3 million, 13.3% of net sales. This Division booked new orders valued at nearly $194.0 million during the quarter, up 10% compared to the second quarter of 2023. Division backlog at the end of the quarter was $550.9 million versus $475.5 million at the end of the second quarter of 2023. While activity was strong across all of the Division’s product lines, snow removal was exceptionally strong, especially for the second quarter, which is historically a slower period. The Division also benefited from another solid performance from our Royal Truck business where demand for its crash attenuator trucks remained healthy.”

“The Vegetation Management Division experienced market headwinds in the second quarter. Net sales were $211.5 million and operating income was $16.0 million, or 7.6% of net sales. This Division booked new orders valued at $150.2 million, on par with orders received in the second quarter of 2023. Division backlog at the end of the quarter was $218.0 million versus $415.7 million at the same point in 2023, normalizing to pre-Covid levels. Activity remained soft in the Forestry, Tree Care and Agricultural end markets. Governmental mowing was a bright spot for this Division with sales, operating income and backlog all moving higher compared to the second quarter of 2023. While progress was made with


ALAMO GROUP ANNOUNCES 2024 SECOND QUARTER SALES AND EARNINGS Page 3

destocking during the period, channel inventories constrained this Division’s sales and order bookings again in the second quarter.”

“As a result of the market situation in Vegetation Management, we have taken actions to improve our operating efficiencies, reduce costs and eliminate excess capacity. In the first six months of 2024, the
Company has reduced its global employee population by nearly 7% with most of the reduction made in the second quarter. We have also accelerated planning for several additional facility consolidations, and plans are underway to convert one of our Vegetation Management manufacturing facilities for the production of industrial products. Savings associated with efficiency and cost reduction actions taken in the first half of 2024 are expected to be approximately $10 million on a full year basis, net of the associated restructuring costs.

"Our outlook for the third quarter and the balance of 2024 remains somewhat cautious. While progress is being made and dealer inventories are moving lower, more work remains to be done to reduce channel inventory. However, the prospects for our Industrial Equipment Division remain excellent for the remainder of 2024 and into the first quarter of 2025, given this Division’s robust order backlog and healthy pipeline of active sales opportunities. Despite the cautious near-term outlook, we are encouraged by the cost reduction measures we have already taken and the further actions we plan to implement in the coming months, which we expect will benefit our results in the second half of 2024 and beyond."

Earnings Conference Call
The Company will host a conference call to discuss the results on Thursday, August 1, 2024 at 10:00 a.m. ET. Hosting the call will be members of senior management.

Individuals wishing to participate in the conference call should dial (833) 816-1163 (domestic) or
(412) 317-1898 (international). For interested individuals unable to join the call, a replay will be available until Thursday, August 8, 2024, by dialing (877) 344-7529 (domestic) or (412) 317-0088 (internationally), passcode 2514245.

The live broadcast of Alamo Group Inc.’s quarterly conference call will be available online at the Company's website, www.alamo-group.com (under “Investor Relations/Events and Presentations”) on Thursday, August 1, 2024 beginning at 10:00 a.m. ET. The online replay will follow shortly after the call ends and will be archived on the Company’s website for 60 days.





ALAMO GROUP ANNOUNCES 2024 SECOND QUARTER SALES AND EARNINGS Page 4

About Alamo Group
Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for vegetation management, infrastructure maintenance and other applications. Our products include truck and tractor mounted mowing and other vegetation maintenance equipment, street sweepers, snow removal equipment, excavators, vacuum trucks, other industrial equipment, agricultural implements, forestry equipment and related after-market parts and services. The Company, founded in 1969, has approximately 4,050 employees and operates 29 plants in North America, Europe, Australia and Brazil as of June 30, 2024. The corporate offices of Alamo Group Inc. are located in Seguin, Texas.

Forward Looking Statements
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company’s actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following: adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including effects of the war in the Ukraine and the Middle East, competition, weather, seasonality, currency-related issues, and other risk factors listed from time to time in the Company’s SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

(Tables Follow)
# # #
(1) This is a non-GAAP financial measure or other information relating to our GAAP financial measures that we have provided to investors in order to allow greater transparency and a deeper understanding of our financial condition and operating results.  For a reconciliation of the non-GAAP financial measure or for a more detailed explanation of financial results, refer to “Non-GAAP Financial Measure Reconciliation” below and the Attachments thereto.




Page 5
Alamo Group Inc. and Subsidiaries
Condensed Consolidated Balance Sheets
(in thousands)
(Unaudited) 
June 30,
2024		June 30,
2023
ASSETS
Current assets:
Cash and cash equivalents$118,535 $112,061 
Accounts receivable, net388,512 378,675 
Inventories385,136 369,319 
Other current assets15,293 11,916 
Total current assets907,476 871,971 
Rental equipment, net46,630 36,375 
Property, plant and equipment161,603 163,434 
Goodwill204,766 197,445 
Intangible assets159,708 164,376 
Other non-current assets25,787 24,158 
Total assets$1,505,970 $1,457,759 
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable$102,947 $116,287 
Income taxes payable12,829 11,284 
Accrued liabilities76,772 72,266 
Current maturities of long-term debt and finance lease obligations15,008 15,008 
Total current liabilities207,556 214,845 
Long-term debt, net of current maturities278,591 332,576 
Long-term tax liability490 2,464 
Other long-term liabilities23,964 22,804 
Deferred income taxes15,653 19,128 
Total stockholders’ equity979,716 865,942 
Total liabilities and stockholders’ equity$1,505,970 $1,457,759 

                                                                       




Page 6
Alamo Group Inc. and Subsidiaries 
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
Three Months EndedSix Months Ended
6/30/20246/30/20236/30/20246/30/2023
Net sales:
  Vegetation Management$211,535 $261,346 $435,282 $517,781 
  Industrial Equipment204,768 179,348 406,607 334,684 
Total net sales416,303 440,694 841,889 852,465 
Cost of sales308,122 322,620 622,076 621,884 
Gross margin108,181 118,074 219,813 230,581 
26.0 %26.8 %26.1 %27.0 %
Selling, general and administration expense60,817 59,858 121,411 119,526 
Amortization expense4,055 3,824 8,114 7,639 
Income from operations43,309 54,392 90,288 103,416 
10.4 %12.3 %10.7 %12.1 %
Interest expense(6,098)(6,837)(12,189)(12,777)
Interest income514 357 1,315 740 
Other income (expense)(65)(1,046)33 (44)
Income before income taxes37,660 46,866 79,447 91,335 
Provision for income taxes9,336 10,492 19,003 21,612 
Net Income$28,324 $36,374 $60,444 $69,723 
Net income per common share:
Basic$2.36 $3.05 $5.05 $5.85 
Diluted$2.35 $3.03 $5.02 $5.82 
Average common shares:
Basic11,974 11,921 11,959 11,910 
Diluted12,044 11,993 12,032 11,977 



Page 7
Alamo Group Inc.
Non-GAAP Financial Measures Reconciliation

From time to time, Alamo Group Inc. may disclose certain “non-GAAP financial measures” in the course of its earnings releases, earnings conference calls, financial presentations and otherwise. For these purposes, “GAAP” refers to generally accepted accounting principles in the United States. The Securities and Exchange Commission (SEC) defines a “non-GAAP financial measure” as a numerical measure of historical or future financial performance, financial position, or cash flows that is subject to adjustments that effectively exclude or include amounts from the most directly comparable measure calculated and presented in accordance with GAAP. Non-GAAP financial measures disclosed by Alamo Group are provided as additional information to investors in order to provide them with greater transparency about, or an alternative method for assessing, our financial condition and operating results. These measures are not in accordance with, or a substitute for, GAAP and may be different from, or inconsistent with, non-GAAP financial measures used by other companies. Whenever we refer to a non-GAAP financial measure, we will also generally present the most directly comparable financial measure calculated and presented in accordance with GAAP, along with a reconciliation of the differences between the non-GAAP financial measure we reference and such comparable GAAP financial measure.

Attachment 1 discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division. Attachment 2 shows the net change in our total debt net of cash and earnings before interest, taxes, depreciation and amortization ("EBITDA") which is a non-GAAP financial measure. The Company considers this information useful to investors to allow better comparability of period-to-period operating performance. Attachment 3 reflects Division performance inclusive of non-GAAP financial measures such as backlog and earnings before interest, tax, depreciation and amortization ("EBITDA").


Page 8
Attachment 1

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)


Impact of Currency Translation on Net Sales by Division
Three Months Ended
June 30,		Change due to currency translation
20242023% change from 2023$%
Vegetation Management$211,535 $261,346 (19.1)%$(844)(0.3)%
Industrial Equipment204,768 179,348 14.2 %(696)(0.4)%
Total net sales
$416,303 $440,694 (5.5)%$(1,540)(0.3)%
Six Months Ended
June 30,		Change due to currency translation
20242023% change from 2023$%
Vegetation Management$435,282 $517,781 (15.9)%$1,331 0.3 %
Industrial Equipment406,607 334,684 21.5 %(478)(0.1)%
Total net sales
$841,889 $852,465 (1.2)%$853 0.1 %
















Page 9
Attachment 2

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)

Consolidated Net Change of Total Debt, Net of Cash
June 30, 2024June 30, 2023Net Change
Current maturities$15,008 $15,008 
Long-term debt,net of current278,591 332,576 
Total debt$293,599 $347,584 
Total cash118,535 112,061 
     Total Debt Net of Cash$175,064 $235,523 $(60,459)

EBITDA
Six Months EndedTrailing Twelve Months Ended
June 30, 2024June 30, 2023June 30, 2024December 31, 2023
Income from operations$90,288 $103,416 $184,839 $197,967 
Depreciation18,093 15,529 35,018 32,454 
Amortization 8,465 7,990 16,697 16,222 
     EBITDA$116,846 $126,935 $236,554 $246,643 












Page 10
Attachment 3

Alamo Group Inc.
Non-GAAP Financial Reconciliation
(in thousands)
(Unaudited)


Vegetation Management Division Performance
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Backlog$217,967 $415,727 
Net Sales$211,535 $261,346 435,282 517,781 
Income from Operations16,006 35,561 37,685 72,069 
7.6 %13.6 %8.7 %13.9 %
Depreciation4,434 3,829 8,767 7,420 
Amortization3,033 3,047 6,076 6,086 
EBITDA23,473 42,437 52,528 85,575 
11.1 %16.2 %12.1 %16.5 %


Industrial Equipment Division Performance
Three Months Ended
June 30,		Six Months Ended
June 30,
2024202320242023
Backlog$550,922 $475,464 
Net Sales$204,768 $179,348 406,607 334,684 
Income from Operations27,303 18,831 52,603 31,347 
13.3 %10.5 %12.9 %9.4 %
Depreciation4,724 4,074 9,326 8,109 
Amortization1,197 952 2,389 1,904 
EBITDA33,224 23,857 64,318 41,360 
16.2 %13.3 %15.8 %12.4 %








v3.24.2
Cover
Jul. 31, 2024
Cover [Abstract]  
Document Type 8-K
Document Period End Date Jul. 31, 2024
Entity Registrant Name Alamo Group Inc.
Entity Incorporation, State or Country Code DE
Entity File Number 0-21220
Entity Tax Identification Number 74-1621248
Entity Address, Address Line One 1627 E. 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
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Amendment Flag false
Entity Central Index Key 0000897077
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