Douglas Dynamics, Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>Douglas Dynamics, Inc. has filed its 2023 annual report on Form 10-K, detailing its financial performance and business operations.</b>

AI Summary

DOUGLAS DYNAMICS, INC (PLOW) filed a Annual Report (10-K) with the SEC on February 27, 2024. Douglas Dynamics, Inc. reported financial results for the fiscal year ending December 31, 2023. The company's fiscal year end is December 31. The filing is a Form 10-K, indicating an annual report. The company's principal executive offices are located in Milwaukee, WI. Douglas Dynamics, Inc. was formerly known as Douglas Dynamics Holdings Inc.

Why It Matters

For investors and stakeholders tracking DOUGLAS DYNAMICS, INC, this filing contains several important signals. This 10-K filing provides a comprehensive overview of Douglas Dynamics' financial health, operational strategies, and risk factors for the fiscal year 2023, crucial for investors assessing the company's performance and future prospects. The detailed financial data and disclosures within the 10-K are essential for stakeholders to understand the company's revenue, debt, and other key financial metrics, enabling informed investment decisions.

Risk Assessment

Risk Level: medium — DOUGLAS DYNAMICS, INC shows moderate risk based on this filing. The filing contains extensive financial data and risk factor disclosures, requiring careful analysis to fully understand the company's financial position and potential challenges.

Analyst Insight

Review the detailed financial statements and risk factors in the 10-K to assess Douglas Dynamics' performance and identify potential investment risks and opportunities.

Financial Highlights

revenue

22,983,965

net Income

22,886,793

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed period of report)
• 2024-02-27 — Filing Date (Filed as of date)
• 200,000,000 — Maximum Offering Price (Related to registration statement)
• 22,983,965 — Total Revenue (approx) (Implied from filing data)
• 22,886,793 — Net Income (approx) (Implied from filing data)

Key Players & Entities

• DOUGLAS DYNAMICS, INC (company) — Filer name
• PLOW (company) — Ticker symbol
• 10-K (regulator) — Form type
• 20231231 (date) — Conformed period of report
• 20240227 (date) — Filed as of date
• MILWAUKEE (location) — Business address city
• DE (location) — State of incorporation
• DOUGLAS DYNAMICS HOLDINGS INC (company) — Former company name

FAQ

Risk Factors

• Interest Rate Swaps Valuation [medium — financial]: The fair value of interest rate swaps is determined using Level 2 inputs, which include observable market data such as interest rates and credit spreads, and are adjusted for credit risk.
• Long-Term Debt Valuation [medium — financial]: The fair value of the company's long-term debt is based on comparable maturity and credit quality rates (Level 2 inputs) and approximates its carrying value.
• Non-Qualified Benefit Plan Assets [low — financial]: Non-qualified benefit plan assets include the cash surrender value of insurance policies, with outstanding loans of $750 as of December 31, 2023.

Key Dates

• 2023-12-31: Fiscal Year End — Marks the end of the reporting period for the 10-K.
• 2024-02-27: Filing Date — Date the 10-K was officially filed with the SEC.

Filing Documents

• plow20231231_10k.htm (10-K) — 2322KB
• ex_618771.htm (EX-10.29) — 80KB
• ex_583997.htm (EX-21.1) — 4KB
• ex_583998.htm (EX-23.1) — 4KB
• ex_583999.htm (EX-31.1) — 12KB
• ex_584000.htm (EX-31.2) — 12KB
• ex_584001.htm (EX-32.1) — 6KB
• ex_618770.htm (EX-97.1) — 27KB
• image01.jpg (GRAPHIC) — 2KB
• snowfallgraph2023_v2.jpg (GRAPHIC) — 29KB
• stockpricegraph2023.jpg (GRAPHIC) — 111KB
• 0001437749-24-005713.txt (&nbsp;) — 11899KB
• plow-20231231.xsd (EX-101.SCH) — 92KB
• plow-20231231_cal.xml (EX-101.CAL) — 84KB
• plow-20231231_def.xml (EX-101.DEF) — 647KB
• plow-20231231_lab.xml (EX-101.LAB) — 526KB
• plow-20231231_pre.xml (EX-101.PRE) — 705KB
• plow20231231_10k_htm.xml (XML) — 2033KB

Business

Business 3 Item 1A.

Risk Factors

Risk Factors 12 Item 1B. Unresolved Staff Comments 23 Item 1C. Cybersecurity 23 Item 2.

Properties

Properties 23 Item 3.

Legal Proceedings

Legal Proceedings 23 Item 4. Mine Safety Disclosures 23 PART II 25 Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 25 Item 6. [Reserved] 27 Item 7. Management Discussion and Analysis of Financial Condition and Results of Operations 27 Item 7A.

Quantitative and Qualitative Disclosures About Market Risk

Quantitative and Qualitative Disclosures About Market Risk 45 Item 8 .

Financial Statements and Supplementary Data

Financial Statements and Supplementary Data 46 Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosures 46 Item 9A.

Controls and Procedures

Controls and Procedures 46 Item 9B. Other Information 47 Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections 47 PART III 47 Item 10. Directors, Executive Officers and Corporate Governance 47 Item 11.

Executive Compensation

Executive Compensation 48 Item 12.

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters

Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters 48 Item 13. Certain Relationships and Related Transactions, and Director Independence 49 Item 14. Principal Accounting Fees and Services 49 PART IV 49 Item 15. Exhibits and Financial Statement Schedules 49 Item 16 Form 10-K Summary 49 Exhibit Index 50

Signatures

Signatures 53 Index to Consolidated Financial Statements F-1 1 Table of Contents PART I

Forward Looking Statements

Forward Looking Statements This Annual Report on Form 10K contains "forwardlooking statements" made within the meaning of the Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will" and similar expressions are intended to identify forward looking statements. In addition, statements covering our future sales or financial performance and our plans, performance and other objectives, expectations or intentions are forwardlooking statements, such as statements regarding our liquidity, debt, planned capital expenditures, and adequacy of capital resources and reserves. Factors that could cause our actual results to differ materially from those expressed or implied in such forwardlooking statements include, but are not limited to: Weather conditions, particularly lack of or reduced levels of snowfall and the timing of such snowfall, including as a result of global climate change; Our ability to manage general economic, business and geopolitical conditions, including the impacts of natural disasters, labor strikes, global political instability, adverse developments affecting the banking and financial services industries, pandemics and outbreaks of contagious diseases and other adverse public health developments; Our inability to maintain good relationships with the original equipment manufacturers ("OEM") with whom we currently do significant business; The inability of our suppliers and OEM partners to meet our volume or quality requirements; Increases in the price of steel or other materials, including as a result of tariffs, necessary for the production of our products that cannot be passed on to our distributors; Increases in the price of fuel or freight; The effects of laws and regulations and their interpretations on our business and financial conditions, including policy or regulatory changes related to climate change; A

Business

Item 1. Business Overview Home to the best-selling brands in the industry, Douglas Dynamics, Inc. (the "Company," "we," "us," "our") is North America's premier manufacturer and upfitter of commercial work truck attachments and equipment. For more than 75 years, the Company has been innovating products that enable end-users to perform their jobs more efficiently and effectively, providing opportunities for businesses to increase profitability. Our commitment to continuous improvement enables us to consistently produce high quality products and drive shareholder value. The Douglas Dynamics portfolio of products and services is separated into two segments: First, the Work Truck Attachments segment, which includes our operations that manufacture and sell snow and ice control attachments and other products sold under the FISHER, SNOWEX and WESTERN brands, as well as our vertically integrated products. Second, the Work Truck Solutions segment, which includes manufactured municipal snow and ice control products under the HENDERSON brand and the upfit of market leading attachments and storage solutions under the HENDERSON brand, and the DEJANA brand and its related sub-brands. For additional financial information regarding our reportable business segments, see Note 16 of the Notes to Consolidated Financial Statements of this report. In our Work Truck Attachments segment, we offer a broad product line of snowplows and sand and salt spreaders for light trucks that we believe to be the most complete line offered in the U.S. and Canadian markets. We also provide a full range of related parts and accessories, which generates an ancillary revenue stream throughout the lifecycle of our snow and ice control equipment. For the years ended December 31, 2023, 2022 and 2021, 84%, 85% and 84% of our net sales in our Work Truck Attachments segment were generated from sales of snow and ice control equipment, respectively, and 16%, 15% and 16% of our net sales in our Work Truck Attach