Alamo Group Announces 2001 First Quarter Results.Business Editors SEGUIN, Texas--(BUSINESS WIRE)--May 2, 2001 Alamo Alamo Eighteenth-century mission in San Antonio, Texas, site of a historic siege of a small group of Texans by a Mexican army (1836) during the Texas war for independence from Mexico. Group Inc. (NYSE NYSE See: New York Stock Exchange : ALG ALG antilymphocyte globulin. ALG antilymphocyte globulin. ALG Antilymphocyte globulin, see there ) today reported results for the first quarter ended March 31, 2001. Net sales Net Sales The amount a seller receives from the buyer after costs associated with the sale are deducted. Notes: This amount is calculated by subtracting the following items from gross sales: merchandise returned for credit, allowances for damaged or missing goods, freight for the first quarter increased 14% to $56.8 million compared to $50.0 million for the same period last year. Net income for the quarter was $2.9 million, or $0.30 per diluted share, compared with $2.7 million, or $0.28 per diluted share, in the prior year period. Alamo's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Agricultural Division sales increased by 14% in the quarter over last year primarily due to the acquisition of Schulte Industries on November 7, 2000, as well as sales growth of Rhino branded mowing mow 1 n. 1. The place in a barn where hay, grain, or other feed is stored. 2. A stack of hay or other feed stored in a barn. equipment. Sales of products related to land preparation and harvesting were down on a quarter to quarter basis as this division continues to be affected by the depressed agricultural market in the U.S. North American Industrial Division sales grew 26% compared to last year largely as a result of the acquisition of Schwarze Industries on February 29, 2000. The Industrial Division performed well despite some delays related to more severe winter weather conditions compared to the last several years and higher fuel costs which affected the operational budgets of some customers. European sales declined 7% mainly due to the negative impact of the foot and mouth epidemic in the UK, the Company's largest European market. The ongoing concern over mad cow disease mad cow disease: see prion. mad cow disease or bovine spongiform encephalopathy (BSE) Fatal neurodegenerative disease of cattle. Symptoms include behavioral changes (e.g. and the general sluggishness in the overall European agricultural markets have resulted in continued weakness in that market. In addition, the strength of the British pound compared to the Euro and French franc negatively affected sales throughout Europe. Alamo's Chief Executive Officer, Ron Robinson Ron Robinson (born March 24, 1962 in Exeter, California) was a Major League Baseball right-handed pitcher for the Cincinnati Reds (1984-1990) and the Milwaukee Brewers (1990-1992). He was the first-round pick (19th overall) of the Reds in the 1980 amateur draft. , commented, "Given the adverse conditions in many of the markets we serve, we are generally pleased with our first quarter results which were roughly in line with expectations. We believe this stable performance underscores the contribution from our acquisitions as well as the breadth of our product offerings and diversity of our business across niche markets A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. ." Mr. Robinson continued, "While we face many challenges today, we continue to focus on increasing the productivity of our manufacturing operations Manufacturing operations concern the operation of a facility, as opposed to maintenance, supply and distribution, health, and safety, emergency response, human resources, security, information technology and other infrastructural support organizations. and improving customer deliveries, in addition to looking for Looking for In the context of general equities, this describing a buy interest in which a dealer is asked to offer stock, often involving a capital commitment. Antithesis of in touch with. synergistic acquisitions. Further, we are looking to exploit cross-selling opportunities in Canada and Mexico to leverage our Schulte and Schwarze acquisitions by building on our sales and marketing organizations in those markets." Mr. Robinson concluded, "We are encouraged by our backlogs at the end of the quarter, which were 16% greater than a year ago. Going forward we still feel we should meet our expectations for the year provided there is resolution to the foot and mouth situation in the UK in a timely manner and that there is no further softening in the overall agricultural markets in both Europe and North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. or any deterioration in the general economic situation affecting our customers, such as fuel prices and weather." Alamo Group is a leader in the design, manufacture, distribution and service of high quality equipment for right-of-way maintenance and agriculture. Our products include tractor-mounted mowing and other vegetation maintenance equipment, street sweepers, agricultural implements and related after market parts and services. The Company, founded in 1969, has over 1,400 employees and operates eleven plants in the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. and Europe as of March 2001. The corporate offices of Alamo Group Inc. are located in Seguin, Texas Seguin (pronounced IPA: /səˈgiːn/) is a city in Guadalupe County, Texas, in the United States. As of the 2000 census, the city population was 22,011. and the headquarters for the Company's European operations are located in Salford Priors Salford Priors is a rural, agricultural village and civil parish about six miles south west of Alcester, Warwickshire, UK. It is found on the Warwickshire border with Worcestershire. , England. This release contains forward-looking statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. that are made pursuant to the safe harbor Safe Harbor 1. A legal provision to reduce or eliminate liability as long as good faith is demonstrated. 2. A form of shark repellent implemented by a target company acquiring a business that is so poorly regulated that the target itself is less attractive. provisions of the Private Securities Litigation Reform Act The Private Securities Litigation Reform Act of 1995 (PSLRA) implemented several significant substantive changes affecting certain cases brought under the federal securities laws, including changes related to pleading, discovery, liability, class representation and awards fees and 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: market demand, 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.
Alamo Group Inc. and Subsidiaries (NYSE:ALG)
Condensed Consolidated Statements of Income
(in thousands, except per share amounts)
(Unaudited)
First Quarter Ended
3/31/01 3/31/00
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North American
Agricultural $ 24,626 $ 21,594
Industrial 22,411 17,834
European 9,793 10,538
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Total Sales 56,830 49,966
Cost of sales 42,439 37,321
-------- --------
Gross margin 14,391 12,645
Operating Expenses 9,673 7,931
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Income from Operations 4,718 4,714
Interest Expense (800) (360)
Interest Income 146 190
Other Income (Expense) 70 (194)
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Income before income taxes 4,134 4,350
Provision for income taxes 1,241 1,668
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Net Income $ 2,893 $ 2,682
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Net income per common share:
Basic $0.30 $0.28
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Diluted $0.30 $0.28
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Average common shares:
Basic 9,704 9,695
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Diluted 9,792 9,752
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Summary Balance Sheet Data
3/31/01 3/31/00
-------- --------
Receivables $66,240 $61,475
Inventories $65,390 $53,241
Current Liabilities $31,511 $29,256
Long Term Debt $43,750 $29,235
Equity $114,915 $109,247
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