Alamo Group Inc. Files 10-Q for Period Ending March 31, 2024

TL;DR

<b>Alamo Group Inc. filed its Q1 2024 10-Q report detailing financial performance and segment data.</b>

AI Summary

ALAMO GROUP INC (ALG) filed a Quarterly Report (10-Q) with the SEC on May 2, 2024. Alamo Group Inc. filed its quarterly report (10-Q) on May 2, 2024, for the period ending March 31, 2024. The filing covers the first quarter of fiscal year 2024. The company's Standard Industrial Classification is FARM MACHINERY & EQUIPMENT [3523]. Key financial statement items such as common stock, additional paid-in capital, treasury stock, retained earnings, and accumulated other comprehensive income are detailed for various periods. Segment information for Vegetation Management and Industrial Equipment is provided for Q1 2024 and Q1 2023.

Why It Matters

For investors and stakeholders tracking ALAMO GROUP INC, this filing contains several important signals. This filing provides investors with the latest financial snapshot of Alamo Group Inc., crucial for understanding the company's performance in the farm machinery and equipment sector during the first quarter of 2024. The detailed segment reporting for Vegetation Management and Industrial Equipment allows for a granular analysis of which business areas are driving growth or facing challenges.

Risk Assessment

Risk Level: — ALAMO GROUP INC shows moderate risk based on this filing. The filing is a standard 10-Q report, which is routine for publicly traded companies and does not contain immediate red flags.

Analyst Insight

Monitor the segment performance data in the full 10-Q to identify trends in the Vegetation Management and Industrial Equipment divisions.

Key Numbers

• 2024-03-31 — Reporting Period End Date (Conformed period of report)
• 2024-05-02 — Filing Date (Filed as of date)

Key Players & Entities

• ALAMO GROUP INC (company) — Filer name
• 2024-03-31 (date) — Conformed period of report
• 2024-05-02 (date) — Filed as of date
• SEGUIN (location) — Business address city
• TX (location) — Business address state
• FARM MACHINERY & EQUIPMENT (industry) — Standard Industrial Classification

FAQ

Industry Context

Alamo Group Inc. operates within the farm machinery and equipment industry, producing a range of products for agricultural and industrial use.

Regulatory Implications

The filing is a standard Form 10-Q, a quarterly report required by the U.S. Securities and Exchange Commission (SEC) for publicly traded companies.

What Investors Should Do

1. Review the full 10-Q filing for detailed financial statements and management's discussion and analysis.
2. Analyze the performance of the Vegetation Management and Industrial Equipment segments for year-over-year changes.
3. Compare key financial metrics with previous quarters and the same quarter in the prior year.

Key Dates

• 2024-03-31: Quarterly Report End Date — Marks the end of the reporting period for the 10-Q filing.
• 2024-05-02: Filing Date — Date the 10-Q was officially filed with the SEC.

Year-Over-Year Comparison

This is the first 10-Q filing for the fiscal year 2024, providing updated financial information compared to the previous year's filings.

Key Financial Figures

• $47.0 million — Consolidated income from operations was $47.0 million in the first three months of 2024 compa
• $49.0 million — first three months of 2024 compared to $49.0 million in the first three months of 2023, a de
• $831.3 million — ecrease of 4%. The Company's backlog of $831.3 million at the end of the first three months of
• $994.8 million — of 2024 is down 16% versus a backlog of $994.8 million at the end of the first three months of
• $425.6 m — ales for the first quarter of 2024 were $425.6 million, an increase of $13.8 million or
• $13.8 million — 024 were $425.6 million, an increase of $13.8 million or 3% compared to $411.8 million for th
• $411.8 million — ease of $13.8 million or 3% compared to $411.8 million for the first quarter of 2023. Net sale
• $32.7 million — egetation Management sales decreased by $32.7 million or 13% to $223.7 million for the first
• $223.7 million — es decreased by $32.7 million or 13% to $223.7 million for the first quarter of 2024 compared

Filing Documents

• alg-20240331.htm (10-Q) — 697KB
• a2024331-ex311.htm (EX-31.1) — 8KB
• a2024331-ex312.htm (EX-31.2) — 9KB
• a2024331-ex313.htm (EX-31.3) — 9KB
• a2024331-ex321.htm (EX-32.1) — 5KB
• a2024331-ex322.htm (EX-32.2) — 5KB
• a2024331-ex323.htm (EX-32.3) — 5KB
• 0000897077-24-000063.txt (&nbsp;) — 4757KB
• alg-20240331.xsd (EX-101.SCH) — 31KB
• alg-20240331_cal.xml (EX-101.CAL) — 72KB
• alg-20240331_def.xml (EX-101.DEF) — 105KB
• alg-20240331_lab.xml (EX-101.LAB) — 432KB
• alg-20240331_pre.xml (EX-101.PRE) — 296KB
• alg-20240331_htm.xml (XML) — 710KB

Management's Discussion and Analysis of Financial Condition and Results of Operations

Management's Discussion and Analysis of Financial Condition and Results of Operations 15 Item 3.

Quantitative and Qualitative Disclosures About Market Risks

Quantitative and Qualitative Disclosures About Market Risks 19 Item 4.

Controls and Procedures

Controls and Procedures 20 PART II. OTHER INFORMATION 20 Item 1.

Legal Proceedings

Legal Proceedings Item 1A.

Risk Factors

Risk Factors Item 2. Unregistered Sales of Equity Securities and Use of Proceeds Item 3. Defaults Upon Senior Securities Item 4. Mine Safety Disclosures Item 5. Other Information Item 6. Exhibits

SIGNATURES

SIGNATURES 22 2 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts) March 31, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 121,802 $ 51,919 Accounts receivable, net 392,940 362,007 Inventories, net 384,488 377,480 Prepaid expenses and other current assets 16,226 12,497 Income tax receivable 75 54 Total current assets 915,531 803,957 Rental equipment, net 43,102 39,264 Property, plant and equipment 369,233 365,960 Less: Accumulated depreciation ( 204,423 ) ( 199,300 ) Total property, plant and equipment, net 164,810 166,660 Goodwill 205,452 206,536 Intangible assets, net 163,909 168,296 Deferred income taxes 1,388 1,375 Other non-current assets 25,228 23,298 Total assets $ 1,519,420 $ 1,409,386 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 103,409 $ 99,678 Income taxes payable 17,596 12,529 Accrued liabilities 77,349 86,711 Current maturities of long-term debt and finance lease obligations 15,008 15,008 Total current liabilities 213,362 213,926 Long-term debt and finance lease obligations, net of current maturities 306,525 220,269 Long-term tax liability 2,633 2,634 Other long-term liabilities 24,335 23,694 Deferred income taxes 16,009 16,100 Stockholders' equity: Common stock, $ 0.10 par value, 20,000,000 shares authorized; 11,996,041 and 11,964,181 outstanding at March 31, 2024 and December 31, 2023, respectively 1,200 1,196 Additional paid-in-capital 139,022 137,791 Treasury stock, at cost; 82,600 shares at March 31, 2024 and December 31, 2023, respectively ( 4,566 ) ( 4,566 ) Retained earnings 881,876 852,859 Accumulated other comprehensive loss ( 60,976 ) ( 54,517 ) Total stockholders' equity 956,556 932,763 Total liabilities and stockholders' equity $ 1,519,420 $ 1,409,386 See accompanying notes. 3 Alamo Group Inc. and Subsidia

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations The following tables set forth, for the periods indicated, certain financial data: As a Percent of Net Sales Three Months Ended March 31, 2024 2023 Vegetation Management 52.6 % 62.3 % Industrial Equipment 47.4 % 37.7 % Total sales, net 100.0 % 100.0 % Cost Trends and Profit Margin, as Percentages of Net Sales Three Months Ended March 31, 2024 2023 Gross profit 26.2 % 27.3 % Income from operations 11.0 % 11.9 % Income before income taxes 9.8 % 10.8 % Net income 7.5 % 8.1 % Overview This report contains forward-looking statements that are based on Alamo Group's current expectations. Actual results in future periods may differ materially from those expressed or implied because of a number of risks and uncertainties which are discussed below and in the Forward-Looking Information section. Unless the context otherwise requires, the terms the "Company", "we", "our" and "us" means Alamo Group Inc. We experienced strong demand for industrial equipment during the first three months of 2024 while demand for forestry, tree care, and agricultural mowing products has weakened as was reflected in our top line growth. Margins declined slightly due to weaker Vegetation Management Division sales that slowed our production cadence and adversely impacted production efficiency. For the first three months of 2024, the Company's net sales increased by 3%, and net income decreased by 4% compared to the same period in 2023. The increase in net sales was primarily driven by industrial product demand, partially offset by a decline in forestry, tree care, and agricultural mowing product demand. The decrease in net income was largely driven by the decline in forestry, tree care, and agricultural mowing product demand. The Company's Vegetation Management Division experienced a 13% decrease in sales for the first three months of 2024 compared to the first three months of

View Full Filing

View this 10-Q filing on SEC EDGAR