Alamo Group Inc. Q2 2024 10-Q Filing

TL;DR

Alamo Group Q2 10-Q filed. Financials for June 30, 2024 period out.

AI Summary

Alamo Group Inc. reported its second quarter 2024 results for the period ending June 30, 2024. The company's filing indicates financial performance for the first six months of 2024, with specific segment data for Vegetation Management and Industrial Equipment. Key financial dates include the filing date of July 31, 2024, and the reporting period end of June 30, 2024.

Why It Matters

This 10-Q filing provides investors and analysts with the official financial performance details for Alamo Group Inc. during the second quarter of 2024, crucial for understanding the company's operational health and strategic direction.

Risk Assessment

Risk Level: low — This is a routine quarterly financial filing and does not contain immediate, high-impact news.

Key Numbers

• 2024 Q2 — Reporting Period (Second quarter of 2024 financial results)
• 2024-06-30 — Period End Date (End of the reporting period for the 10-Q)
• 2024-07-31 — Filing Date (Date the 10-Q was officially filed with the SEC)

Key Players & Entities

• ALAMO GROUP INC (company) — Filer
• 20240630 (date) — Conformed Period of Report
• 20240731 (date) — Filed as of Date
• 741621248 (company) — IRS Number
• DE (company) — State of Incorporation
• 1231 (date) — Fiscal Year End

FAQ

Filing Documents

• alg-20240630.htm (10-Q) — 899KB
• richardconsultingagreeme.htm (EX-10.1) — 1KB
• a2024630-ex311.htm (EX-31.1) — 8KB
• a2024630-ex312.htm (EX-31.2) — 9KB
• a2024630-ex313.htm (EX-31.3) — 9KB
• a2024630-ex321.htm (EX-32.1) — 5KB
• a2024630-ex322.htm (EX-32.2) — 5KB
• a2024630-ex323.htm (EX-32.3) — 6KB
• richardconsultingagreeme001.jpg (GRAPHIC) — 223KB
• richardconsultingagreeme002.jpg (GRAPHIC) — 56KB
• 0000897077-24-000096.txt ( ) — 5856KB
• alg-20240630.xsd (EX-101.SCH) — 31KB
• alg-20240630_cal.xml (EX-101.CAL) — 73KB
• alg-20240630_def.xml (EX-101.DEF) — 110KB
• alg-20240630_lab.xml (EX-101.LAB) — 454KB
• alg-20240630_pre.xml (EX-101.PRE) — 308KB
• alg-20240630_htm.xml (XML) — 914KB

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 21 Item 4.

Controls and Procedures

Controls and Procedures 21 PART II. OTHER INFORMATION 22 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 24 2 Alamo Group Inc. and Subsidiaries Interim Condensed Consolidated Balance Sheets (Unaudited) (in thousands, except share amounts) June 30, 2024 December 31, 2023 ASSETS Current assets: Cash and cash equivalents $ 118,535 $ 51,919 Accounts receivable, net 388,512 362,007 Inventories, net 385,136 377,480 Prepaid expenses and other current assets 14,830 12,497 Income tax receivable 463 54 Total current assets 907,476 803,957 Rental equipment, net 46,630 39,264 Property, plant and equipment 371,699 365,960 Less: Accumulated depreciation ( 210,096 ) ( 199,300 ) Total property, plant and equipment, net 161,603 166,660 Goodwill 204,766 206,536 Intangible assets, net 159,708 168,296 Deferred income taxes 1,402 1,375 Other non-current assets 24,385 23,298 Total assets $ 1,505,970 $ 1,409,386 LIABILITIES AND STOCKHOLDERS' EQUITY Current liabilities: Trade accounts payable $ 102,947 $ 99,678 Income taxes payable 12,829 12,529 Accrued liabilities 76,772 86,711 Current maturities of long-term debt and finance lease obligations 15,008 15,008 Total current liabilities 207,556 213,926 Long-term debt and finance lease obligations, net of current maturities 278,591 220,269 Long-term tax liability 490 2,634 Other long-term liabilities 23,964 23,694 Deferred income taxes 15,653 16,100 Stockholders' equity: Common stock, $ 0.10 par value, 20,000,000 shares authorized; 12,009,707 and 11,964,181 outstanding at June 30, 2024 and December 31, 2023, respectively 1,201 1,196 Additional paid-in-capital 142,147 137,791 Treasury stock, at cost; 82,600 shares at June 30, 2024 and December 31, 2023, respectively ( 4,566 ) ( 4,566 ) Retained earnings 907,089 852,859 Accumulated other comprehensive loss ( 66,155 ) ( 54,517 ) Total stockholders' equity 979,716 932,763 Total liabilities and stockholders' equity $ 1,505,970 $ 1,409,386 See accompanying notes. 3 Alamo Group Inc. and Subsidiaries

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 June 30, Six Months Ended June 30, 2024 2023 2024 2023 Vegetation Management 50.8 % 59.3 % 51.7 % 60.7 % Industrial Equipment 49.2 % 40.7 % 48.3 % 39.3 % Total sales, net 100.0 % 100.0 % 100.0 % 100.0 % Cost Trends and Profit Margin, as Percentages of Net Sales Three Months Ended June 30, Six Months Ended June 30, 2024 2023 2024 2023 Gross profit 26.0 % 26.8 % 26.1 % 27.0 % Income from operations 10.4 % 12.3 % 10.7 % 12.1 % Income before income taxes 9.0 % 10.6 % 9.4 % 10.7 % Net income 6.8 % 8.3 % 7.2 % 8.2 % 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 six months of 2024 while demand for forestry, tree care, and agricultural mowing products has weakened as was reflected in our sales growth. Gross profit margins declined slightly due to weaker Vegetation Management Division sales that slowed our production cadence and adversely impacted production efficiency. For the first six months of 2024, the Company's net sales decreased by 1%, and net income decreased by 13% compared to the same period in 2023. The decrease in net sales was primarily driven by weakened product demand in the Vegetation Management Division, and the labor strike at Gradall Industries, which had a negative effect on the Industrial Equipment Division. However, these challenges were nearly offset by stro

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View this 10-Q filing on SEC EDGAR