Alamo Group Inc. Announces 2002 Second Quarter Results.Business Editors SEGUIN, Texas--(BUSINESS WIRE)--Aug. 6, 2002 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, 2002. 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 4% to $69.5 million from $66.8 million for the same period last year. Net income for the quarter was $2.7 million, or $0.28 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 $3.5 million, or $0.36 per diluted share, in the prior-year period. The 2002 results include an increase of $0.03 per diluted share, compared to the previous year, relating to relating to relate prep → concernant relating to relate prep → bezüglich +gen, mit Bezug auf +acc the adoption of the Statement of Financial Accounting Standards No. 142 under which the Company will no longer amortize amortize To write off gradually and systematically a given amount of money within a specific number of time periods. For example, an accountant amortizes the cost of a long-term asset by deducting a portion of that cost against income in each period. goodwill. For the first six months of 2002, net sales were $134.3 million compared with $123.6 million for the six-month period last year, an increase of 9%. Net income for the six month period of 2001 was $5.2 million, or $0.54 per diluted share, compared with $6.4 million, or $0.65 per diluted share, for the same period last year. Included in 2001 results were net gains of $0.08 per diluted share relating to the sale of the Company's LaGrange, Illinois facility and 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. trucking operations, partially offset by closure expenses at its Guymon, Oklahoma The City of Guymon is located in the U.S. State of Oklahoma and serves as the seat of Texas CountyGR6. The population was 10,472 at the 2000 census. operation. The 2002 results include an increase of $0.06 per diluted share, compared to the previous year, relating to the adoption of the Statement of Financial Accounting Standards No. 142 under which the Company will no longer amortize goodwill. Excluding these items in both periods, net income per diluted share would have been $0.48 in 2002 compared to $0.57 in 2001. 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 improved by 16% in the quarter primarily due to contributions from the acquisitions of 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) in the third quarter of 2001 and Valu-Bilt in the second quarter of 2002. Excluding these acquisitions, sales decreased by 22%, due to continued softness within the agricultural market and a greater portion of the Ag Division's sales occurring in the fourth quarter of 2001 as part of its preseason selling program. North American Industrial sales for the quarter were down 12% due primarily to a downturn in the division's sales to state government agencies as 48 states reported budget deficits, which directly impacted purchasing decisions in the period. Other factors negatively impacting sales were lower than expected sales to contractors due to market conditions as well as lower parts sales due to weather conditions. European sales continued to show improvement, increasing 18% to $11.8 million, from $10.0 million in the prior year quarter. The overall business continues to rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective from the foot and mouth epidemic that affected sales in the first half of 2001 and were also aided by the weakening weak·en tr. & intr.v. weak·ened, weak·en·ing, weak·ens To make or become weak or weaker. weak  en·er n. U.S. dollar.
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, commented, "Our 2002 second quarter results were less than our expectations. As we noted in the first quarter, we anticipated market conditions would remain weak, but the further deterioration de·te·ri·o·ra·tion n. The process or condition of becoming worse. in our U.S. governmental business for 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, normally one of our most profitable sectors, was more dramatic than expected. We now expect this trend to continue throughout the remainder of 2002. In response to these conditions we have reduced our workforce at select locations during the quarter, closed one leased warehouse, and took other cost reduction measures to improve profitability. Offsetting these efforts, have been significant increases in property and casualty insurance as well as increases in product warranty expense. As a result, despite the positive contribution from acquisitions and improved results in our European markets we feel earnings for the full year will approach the level achieved in 2001. Mr. Robinson continued, "Unfavorable conditions in the markets we serve as well as the overall economy combined with lower levels of consumer confidence make it difficult to look very far into the future. And, while we are not satisfied with these results, given these conditions and the reduced results of many of our peers, we feel we are more than holding our own." Mr. Robinson concluded, "On a positive note we are pleased by the reception the market has given some of our new products this year. Most recently our Tiger group introduced the TrucKat(TM), the industry's first truck mounted boom arm mowing unit, which offers some unique advantages compared to traditional boom arm mowers. We are confident new products such as this will help us strengthen our market leadership position in the years to come." 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 1,600 employees and operates thirteen 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 2002. The corporate offices of Alamo Group Inc. are located in Seguin, Texas 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
-------------------- ----------------
6/30/02 6/30/01 6/30/02 6/30/01
------- ------- ------- -------
North American
Agricultural $29,363 $24,611 $58,479 $47,664
Industrial 28,331 32,121 53,835 56,105
European 11,826 10,034 21,983 19,827
-------- -------- -------- --------
Total sales 69,520 66,766 134,297 123,596
Cost of sales 54,105 50,561 104,521 93,000
------ -------- --------- --------
Gross margin 15,415 16,205 29,776 30,596
Operating
expenses 10,808 9,862 20,767 19,535
-------- --------- -------- --------
Income from
operations 4,607 6,343 9,009 11,061
Interest expense (745) (1,012) (1,433) (1,812)
Interest income 128 160 253 306
Other income
(Expense) 55 (85) 64 (15)
--------- --------- -------- --------
Income before
income taxes 4,045 5,406 7,893 9,540
Provision for
income taxes 1,320 1,930 2,659 3,171
-------- -------- -------- --------
Net income $ 2,725 $ 3,476 $ 5,234 $ 6,369
======== ======== ======== ========
Net income per common
share:
Basic $ 0.28 $ 0.36 $ 0.54 $ 0.66
======== ======== ======== ========
Diluted $ 0.28 $ 0.36 $ 0.54 $ 0.65
======== ======== ======== ========
Average common shares:
Basic 9,711 9,704 9,711 9,704
======== ======== ======== ========
Diluted 9,809 9,788 9,801 9,790
======== ======== ======== ========
Summary Balance Sheet Data
6/30/02 12/31/01 6/30/01
------- -------- -------
Receivables $ 68,673 $ 57,768 $ 68,736
Inventories $ 68,643 $ 64,044 $ 64,946
Current Liabilities $ 31,789 $ 25,360 $ 30,641
Long Term Debt $ 39,946 $ 36,315 $ 45,399
Equity $ 128,767 $ 121,813 $ 118,096
|
|
||||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion