Alamo Group Inc. Announces 1999 Fourth Quarter and Year-end Results.Business Editors SEGUIN, Texas--(BUSINESS WIRE)--Feb. 17, 2000 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 fourth quarter and year ended December 31, 1999. 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 fourth quarter declined slightly to $39.4 million from $40.4 million for the same period last year due primarily to the cyclical cyclical Of or relating to a variable, such as housing starts, car sales, or the price of a certain stock, that is subject to regular or irregular up-and-down movements. decline in agricultural markets. Net income for the quarter was $743,000, or $0.08 per diluted di·lute tr.v. di·lut·ed, di·lut·ing, di·lutes 1. To make thinner or less concentrated by adding a liquid such as water. 2. To lessen the force, strength, purity, or brilliance of, especially by admixture. share, compared with a net loss of $4.3 million, or $0.45 per diluted share, in the prior-year period. Included in the fourth quarter of 1998 were costs equivalent to $0.42 per diluted share after-tax associated with the closing of the Company's Rhino International tractor tractor, in agriculture, vehicle used to pull such equipment as plows, cultivators, and mowers; to power stationary devices such as saws and winches; and to push snowplows and earth-moving implements. division, as well as transaction costs Transaction Costs Costs incurred when buying or selling securities. These include brokers' commissions and spreads (the difference between the price the dealer paid for a security and the price they can sell it). related to the Woods Equipment transaction which was terminated in February 1999. Excluding these costs, the net loss for the fourth quarter of 1998 was approximately $0.03 per diluted share. For the year ended December 31, 1999, net sales were $176.6 million compared with $200.5 million for 1998. Net income for 1999 was $6.1 million, or $0.63 per diluted share, compared with $4.1 million, or $0.42 per diluted share, for last year. Included in the 1999 year-end results was a charge of $3.2 million, or $0.20 per diluted share after-tax, related to the write-down of obsolete and excess inventory in the third quarter. The 1998 results included $7.2 million, or $0.74 per diluted share after-tax, of costs associated with the Rhino International closing and the terminated Woods Equipment transaction. Net income before costs associated with the inventory write-down was $8.1 million, or $0.83 per diluted share after-tax, for 1999, compared with $11.3 million, or $1.16 per diluted share after-tax, for the prior year, excluding costs associated with the Rhino International closing and the terminated Woods Equipment transaction. U.S. agricultural sales declined 9% for the fourth quarter and 23% for the year compared to 1998. Agricultural sales continue to be impacted by the cyclical decline in the agricultural industry that began in late 1998. U.S. industrial sales increased slightly for the quarter, and while declining by 4% for the year, are showing signs of strengthening. In Europe, sales grew 6% for the quarter and 2% for the year aided by more stable economic and market conditions in the U.K. and France. Ronald A. Robinson, Chief Executive Officer, commented: &uot;We were generally pleased with the Company's fourth quarter and year-end performance, which was consistent with management's expectations. Our total sales and profitability continue to be impacted by softness in agricultural markets.&uot; Mr. Robinson continued: &uot;During 1999, we took a number of steps to strengthen our financial position. In addition to the $3.2 million inventory write-down, we have reduced inventories by approximately $15.8 million since the beginning of the year by improving inventory management and responding to market conditions. During the year, we further strengthened the balance sheet by reducing long-term debt Long-Term Debt Loans and financial obligations lasting over one year. Notes: For example debts obligations such as bonds and notes which have maturities greater than one year would be considered long-term debt. by approximately $30.4 million.&uot; Mr. Robinson concluded: &uot;We expect to see continued improvement in our operations in 2000. There are beginning to be signs of a gradual recovery in the agricultural industry. Agricultural backlogs, which are ahead of last year, are benefiting from this positive turn in the market. Alamo's industrial business remains our strongest operation as we enter the new year with incoming orders ahead of last year's levels. In Europe, we see stability in profitability and sales and are optimistic op·ti·mist n. 1. One who usually expects a favorable outcome. 2. A believer in philosophical optimism. op that our European business should continue to strengthen. With the upward trends in our markets and improved financial condition, we believe we are now in a stronger position to more aggressively pursue external opportunities to grow the Company over the course of the next year.&uot; Alamo Group is a leader in the design, manufacture and distribution of heavy duty, tractor-mounted 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. and vegetation maintenance equipment 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. 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. , near San Antonio San Antonio (săn ăntō`nēō, əntōn`), city (1990 pop. 935,933), seat of Bexar co., S central Tex., at the source of the San Antonio River; inc. 1837. , and the headquarters for its European operations is 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, near Birmingham. This release contains forward looking statements 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)
Three Months Ended Year Ended
12/31/99 12/31/98 12/31/99 12/31/98
U.S.
Agricultural $17,748 $19,463 $75,931 $98,393
Industrial 12,603 12,435 58,719 61,133
European 9,058 8,512 41,958 41,027
Total sales 39,409 40,410 176,608 200,553
Cost of sales 30,218 37,931 135,726 156,895
Gross margin 9,191 2,479 40,882 43,658
Operating expenses 8,212 9,082 30,102 35,169
Income from operations 979 (6,603) 10,780 8,489
Interest expense (140) (557) (1,495) (2,647)
Interest income 210 201 604 697
Other income (Expense) 398 135 (193) (4)
Income before
income taxes 1,447 (6,824) 9,696 6,535
Provision for
income taxes 704 (2,480) 3,594 2,420
Net income $ 743 $(4,344) $6,102 $4,115
Net income per common share:
Basic $ 0.08 $ (0.45) $ 0.63 $ 0.42
Diluted $ 0.08 $ (0.45) $ 0.63 $ 0.42
Average common shares:
Basic 9,695 9,736 9,722 9,714
Diluted 9,705 9,736 9,726 9,730
Summary Balance Sheet Data
12/31/99 09/30/99 12/31/98
Receivables $ 41,732 $ 41,687 $ 49,834
Inventories $ 45,582 $ 48,706 $ 64,578
Current Liabilities $ 17,628 $ 21,995 $ 17,422
Long Term Debt $ 5,469 $ 5,736 $ 35,858
Equity $ 108,030 $ 108,157 $ 106,906
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