Alamo Group Inc. Announces 2000 Second Quarter Results.Business Editors SEGUIN, Texas--(BUSINESS WIRE)--Aug. 2, 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 second quarter ended June 30, 2000. 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 second quarter increased 19% to $60.7 million from $51.1 million for the same period last year. Net income for the quarter grew 15% to $4.2 million, or $0.43 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, from $3.6 million, or $0.37 per diluted share, in the prior-year period. For the first six months of 2000, net sales were $110.7 million compared with $93.3 million for the six-month period last year. Net income for the six month period of 2000 was $6.8 million, or $0.71 per diluted share, compared with $5.2 million, or $0.54 per diluted share, for the same period last year. Sales for Alamo's agricultural business improved by 5% in the quarter over last year due to stabilizing conditions in many of its core markets, which have been impacted by 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. declines in the agricultural industry that began in late 1998. U.S. industrial sales for the quarter grew 49% from last year, due primarily to the sales contribution from Schwarze Industries, Inc., which was acquired February 29, 2000. During the quarter, the sweeper business realized healthy municipal sales and benefited from solid overall industry conditions in the governmental marketplace. Overall European sales declined by 7% despite strong sales and backlog orders in France, as a result of weakening U.K. market conditions and the negative currency impact of the decline in the Euro against the British pound sterling and U.S. dollar. Ronald A. Robinson, Chief Executive Officer, commented: "We are generally pleased with our six-month results which reflect a 31% improvement in earnings per share over the previous year. While industrial sales continue to be our strongest area, their results were hampered by shipment delays out of our Texas facility mostly caused by plant consolidations and our conversion to lean manufacturing Lean manufacturing is the production of goods using less of everything compared to mass production: less human effort, less manufacturing space, less investment in tools, and less engineering time to develop a new product. . We saw slight improvement in our agricultural division, though our business continues to be affected by soft conditions in the general agricultural market. In Europe, we achieved our profit objectives even though sales are flat with the prior year." Mr. Robinson concluded, "Our backlog remains healthy going into the third quarter, and market activity shows signs of picking up in those areas which have been impacted by drought conditions "Drought Conditions" is episode 126 of The West Wing. Plot Senator Rafferty, a new presidential candidate garnered much media attention with a ground-breaking speech about health care. . Although we remain confident about our industrial business and expect good order flow to continue, it is important that we improve our deliveries for the rest of the year. Overall, our European operations are performing well in a difficult market." 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 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 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 2000. 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)
Second Quarter Ended Six Months Ended
6/30/00 6/30/99 6/30/00 6/30/99
North American
Agricultural $21,161 $20,151 $42,755 $39,294
Industrial 28,735 19,244 46,569 32,602
European 10,829 11,700 21,367 21,367
Total sales 60,725 51,095 110,691 93,263
Cost of sales 45,409 37,750 82,730 69,840
Gross margin 15,316 13,345 27,961 23,423
Operating expenses 8,672 7,159 16,603 14,023
Income from operations 6,644 6,186 11,358 9,400
Interest expense (681) (432) (1,041) (1,090)
Interest income 209 105 399 207
Other income (Expense) 31 (201) (163) (333)
Income before income taxes 6,203 5,658 10,553 8,184
Provision for income taxes 2,053 2,050 3,721 2,956
Net income $ 4,150 $ 3,608 $ 6,832 $ 5,228
Net income per common share:
Basic $ 0.43 $ 0.37 $ 0.71 $ 0.54
Diluted $ 0.43 $ 0.37 $ 0.71 $ 0.54
Average common shares:
Basic 9,695 9,736 9,695 9,736
Diluted 9,754 9,736 9,747 9,736
Summary Balance Sheet Data
6/30/00 12/31/99 6/30/99
Receivables $ 60,053 $ 41,732 $ 54,439
Inventories $ 52,949 $ 45,582 $ 54,737
Current Liabilities $ 32,578 $ 17,628 $ 22,679
Long Term Debt $ 22,782 $ 5,469 $ 19,673
Equity $ 111,898 $ 108,030 $ 107,862
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