Alamo Group Announces 2005 First Quarter Results.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. -- 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, 2005. 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 15% to $91.3 million compared to $79.7 million for the same period last year. Net income for the quarter was $2.6 million, or $0.26 per diluted share, compared with $2.3 million, or $0.23 per diluted share, in the prior year period, an increase of 12%. Net sales for the first quarter of 2005 include Rousseau Holding, S.A. which was acquired on March 15, 2004 and Spearhead Machinery Limited, which was acquired on February 14, 2005. Excluding revenues related to these acquisitions, net sales for the first quarter of 2005 would have been $86.5 million, or 8% above the prior year period. 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 9% to $34.9 million from $32.1 million for the first quarter of 2004. The Division benefited from the improved conditions in the U.S. agricultural sector, continuing the trend which began in the fourth quarter of 2003, despite adverse weather conditions in many areas of both the U.S. and Canada. North American Industrial Division sales of $28.7 million were up 5% compared to $27.4 million in the first quarter of 2004. The growth in this sector was mainly in 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 which, while modest, reflected steady improvement in these markets. Alamo's European Division sales for the quarter were up 37% to $27.7 million from $20.2 million in the first quarter of 2004. This increase was a combination of strong internal performance, complimented by the addition of Rousseau and Spearhead, which accounted for approximately 24% of the increase. 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. , President and Chief Executive Officer of Alamo Group, commented, "The first quarter results reflect a continuation of the positive market trends which began in the fourth quarter of 2003. Our European operations led the way with strong growth in both sales and earnings, as a result of good market conditions, tight cost control and excellent market coverage, further enhanced by recent acquisitions in this market." "Our North American Agricultural and Industrial divisions also continued to improve, though at a lesser rate, despite adverse weather conditions in the first quarter. In addition, higher raw material costs, mainly for steel, remain a concern and continue to affect profitability. We are addressing this issue through price increases and additional steps to improve operating efficiencies. While we are concerned that higher equipment prices combined with escalating fuel costs, which impact our customers operating expenses Operating expenses The amount paid for asset maintenance or the cost of doing business, excluding depreciation. Earnings are distributed after operating expenses are deducted. , may have a dampening effect on demand in the marketplace, we are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that 2005 will continue to show improvement for Alamo Group as the combination of favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. market conditions and better internal performance will benefit the Company throughout the year and beyond." 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 2,000 employees and operates fourteen plants in 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. , Europe and Australia as
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.
First Quarter Ended
3/31/05 3/31/04
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North American
Agricultural $ 34,886 $ 32,102
Industrial 28,711 27,391
European 27,696 20,223
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Total Sales 91,293 79,716
Cost of sales 72,407 62,453
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Gross margin 18,886 17,263
20.7% 21.7%
Operating Expenses 14,443 12,249
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Income from Operations 4,443 5,014
4.9% 6.3%
Interest Expense (594) (515)
Interest Income 225 120
Other Income (Expense) 77 (831)
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Income before income taxes 4,151 3,788
Provision for income taxes 1,578 1,484
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Net Income $ 2,573 $ 2,304
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Net income per common share:
Basic $ 0.26 $ 0.24
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Diluted $ 0.26 $ 0.23
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Average common shares:
Basic 9,743 9,727
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Diluted 9,933 9,854
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Summary Balance Sheet Data
3/31/05 3/31/04
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Receivables 107,755 91,254
Inventories 81,673 70,931
Current Liabilities 56,143 52,246
Long Term Debt 54,948 40,524
Equity 161,412 146,906
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