Alamo Group Inc. Announces 2001 Third Quarter Results.Business Editors SEGUIN, Texas--(BUSINESS WIRE)--Nov. 6, 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 third quarter ended September 30, 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 third quarter increased 15% to $63.9 million from $55.7 million for the same period last year. Net income for the quarter increased 3% to $3.8 million, or $0.39 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 $3.7 million, or $0.38 per diluted share, in the prior-year period. For the first nine months of 2001, net sales were $187.5 million compared with $166.3 million for the nine-month period last year, an increase of 13%. Net income for the nine-month period of 2001 was $10.2 million, or $1.04 per diluted share, down from $10.5 million, or $1.08 per diluted share, for the same period last year. Sales for Alamo's North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Agricultural business increased 29% in the quarter compared to last year, due to increased sales of Rhino branded products and the acquisitions of Schulte Industries, Inc. in November 2000 and SMC SMC Saint Mary's College SMC Santa Monica College SMC Solaris Management Console SMC Smooth Muscle Cell SMC Small Magellanic Cloud (also see LMC) SMC Safety Management Certificate (maritime shipping) Corporation in August 2001. This more then offset the effects of the continued softness in the agriculture industry on the Company's hay making products, tillage products and spare parts Spare parts, also referred to as Service Parts is a term used to indicate extra parts available and in proximity to the mechanical item, such as a automobile, boat, engine, for which they might be used. Spare parts are also called “spares. sales. North American Industrial sales for the quarter rose 8% from last year reflecting improved sales of wholegoods in this segment. European sales improved 8% from the prior-year period, which reversed negative year over year comparisons in the first two quarters of 2001. Sales in the quarter were boosted by increased activity in the wake of a slowing of the foot and mouth epidemic in the U.K., which negatively impacted our results in the first half of the year. However, the overall European agriculture market remains soft. 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, "Alamo Group's results for the third quarter were in line with expectations, despite the difficult conditions facing virtually all industrial sectors. On the positive side, during the third quarter we finally saw some improvement in our European operations due to the abatement A reduction, a decrease, or a diminution. The suspension or cessation, in whole or in part, of a continuing charge, such as rent. With respect to estates, an abatement is a proportional diminution or reduction of the monetary legacies, a disposition of property by will, when of the foot and mouth epidemic in the U.K., our largest European market. We are also pleased with the acquisition in the quarter of SMC Corporation, which gives us a new complementary product range of front-end loaders front-end loader n. An earthmoving machine with a hydraulic scoop in front for lifting and loading earth or rubble. and backhoes that should allow us to strengthen our relationship with our dealers and customers. Finally, our initiatives to improve internal efficiencies are starting to show tangible results." Mr. Robinson continued, "However, due to the tragic events of September 11th, external conditions have created a degree of uncertainty in the markets we serve. As a result, we are seeing some dealer reluctance to commit as strongly as anticipated in some of our preseason selling programs. If this continues, it could have an effect on our early season shipments to dealers in December of this year and the first quarter of 2002. This concern is most noticeable in our Industrial segment, where several states are projecting revenue shortfalls and budget cutbacks. We are also concerned by other business trends such as the large increase in insurance rates that we have experienced as a result of recent events." Mr. Robinson concluded, "Despite these concerns, we feel the Company is in an excellent position to meet the needs of our customers and respond to any challenges presented by changing market conditions." 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 1,700 employees and operates twelve 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. and Europe as of September 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 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. 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)
Third Quarter Ended Nine Months Ended
------------------- -----------------
9/30/01 9/30/00 9/30/01 9/30/00
------- ------- ------- -------
North American
Agricultural $23,793 $18,398 $71,457 $61,153
Industrial 28,985 26,935 85,090 73,504
European 11,114 10,320 30,941 31,687
-------- -------- -------- --------
Total sales 63,892 55,653 187,488 166,344
Cost of sales 47,115 40,957 140,115 123,687
------ -------- --------- -------
Gross margin 16,777 14,696 47,373 42,657
Operating expenses 10,355 9,049 29,890 25,652
-------- --------- -------- ------
Income from
operations 6,422 5,647 17,483 17,005
Interest expense (834) (487) (2,646) (1,528)
Interest income 151 162 457 561
Other income
(Expense) (48) (53) (63) (216)
-------- --------- ---------- ----------
Income before
income taxes 5,691 5,269 15,231 15,822
Provision for
income taxes 1,907 1,601 5,078 5,322
-------- ------ ------- -----
Net income $ 3,784 $ 3,668 $ 10,153 $ 10,500
======== ======== ========= =========
Net income per
common share:
Basic $ 0.39 $ 0.38 $ 1.05 $ 1.08
======== ======== ======== ========
Diluted $ 0.39 $ 0.38 $ 1.04 $ 1.08
======== ======== ======== ========
Average common
shares:
Basic 9,705 9,699 9,704 9,696
======== ===== ======== =====
Diluted 9,790 9,769 9,790 9,755
======== ===== ======== =====
Summary Balance Sheet Data
9/30/01 12/31/00 9/30/00
------- -------- -------
Receivables $ 59,270 $ 50,359 $ 48,263
Inventories $ 67,794 $ 59,608 $ 54,428
Current Liabilities $ 28,096 $ 27,071 $ 27,030
Long Term Debt $ 45,228 $ 30,355 $ 17,119
Equity $ 122,280 $ 114,539 $ 113,808
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