Alamo Group Inc. Announces 2004 Second 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 second quarter and six-months ended June 30, 2004. 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 22% to $89.8 million from $73.5 million for the same period last year. Net income for the quarter was $4.8 million, or $0.49 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, a 48% increase over the prior year's net income of $3.3 million, or $0.33 per diluted share. The results of the 2004 second quarter included those of Rousseau Holding, which was acquired in March 2004. Excluding Rousseau Holding, net sales for the quarter were up 13% and net income was up 48% compared to the same period in 2003. The results for the quarter include a non-operating gain of approximately $544,000 from insurance proceeds related to a fire at the Company's Seguin, Texas facility in December 2003. The results also include a write-down of approximately $600,000 on the assets of the Company's 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. facility, which was closed in 2001 and has been held for resale since that time. The Company's desire to speed up the disposal of the remaining equipment has led to this reduction in carrying costs Carrying costs Costs that increase with increases in the level of investment in current assets. . For the first six months of 2004, net sales were $169.5 million, an increase of 20% compared with $140.9 million in the first six months of 2003. Net income for the six-month period in 2004 was $7.1 million, or $0.72 on a fully diluted basis. This is an 81% increase over the prior year's net income of $3.9 million, or $0.40 per diluted share. Without the contributions of Rousseau Holding, net sales were up 15% and net income increased 74% compared to the same period in 2003. 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 Division were $31.3 million in the second quarter of 2004, a 17% increase compared to the $26.8 million achieved in 2003. This growth reflects an improvement in the overall market for agricultural equipment, a trend that the Company began to experience in the fourth quarter of 2003. The outlook for this sector remains favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. as commodity prices are strong and farm incomes continue to increase. North American Industrial Division sales increased by 7% to $31.4 million in the second quarter of 2004 compared to $29.5 million in the second quarter of 2003. This increase also reflects improved market conditions, though this sector of the Company's business has still not fully recovered from the downturn that began in 2002. Sales in this segment are mainly to governmental entities and related contractors, and while this business is improving, it is still being affected by budgetary constraints CONSTRAINTS - A language for solving constraints using value inference. ["CONSTRAINTS: A Language for Expressing Almost-Hierarchical Descriptions", G.J. Sussman et al, Artif Intell 14(1):1-39 (Aug 1980)]. at various city, county, and state governments. Alamo Group's European Division sales in the second quarter of 2004 were $27.1 million, an increase of 56% over sales of $17.3 million in the same period of 2003. The acquisition of Rousseau Holding accounted for approximately 6% of this growth. The strong internal growth was a result of market improvements and continued success of the group's expanded market presence. 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. , Alamo Group's President and Chief Executive Officer commented, "Our second quarter results reflect a continuation of the positive trends we have experienced that began in the last half of 2003. The combination of strengthening markets and improved production efficiencies has led to solid growth in sales and earnings. These gains were achieved despite continued large increases in the price of certain raw materials, particularly steel, and increases in other cost areas such as healthcare." Mr. Robinson concluded, "The outlook for our business is favorable. With good market fundamentals and a strong focus on our operations we believe the results for fiscal 2004 will not only exceed those of 2003, but also be ahead of the higher levels we achieved in 2000 and 2001." 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 and truck 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 front-end loaders front-end loader n. An earthmoving machine with a hydraulic scoop in front for lifting and loading earth or rubble. , backhoe and related after market parts and services. The Company, founded in 1969, has over 1,850 employees and operates fifteen 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 June 2004. 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
06/30/04 06/30/03 06/30/04 06/30/03
--------- --------- --------- ---------
North American
Agricultural $ 31,311 $ 26,750 $ 63,413 $ 53,188
Industrial 31,421 29,460 58,812 55,241
European 27,084 17,326 47,307 32,478
--------- --------- --------- ---------
Total Sales 89,816 73,536 169,532 140,907
Cost of sales 68,720 56,692 131,173 111,675
--------- --------- --------- ---------
Gross margin 21,096 16,844 38,359 29,232
23.5% 22.9% 22.6% 20.7%
Operating Expenses 13,200 11,635 25,449 22,641
--------- --------- --------- ---------
Income from Operations 7,896 5,209 12,910 6,591
8.8% 7.1% 7.6% 4.7%
Interest Expense (527) (631) (1,042) (1,102)
Interest Income 141 155 261 257
Other Income (Expense) (64) 396 (895) 491
--------- --------- --------- ---------
Income before income taxes 7,446 5,129 11,234 6,237
Provision for income taxes 2,614 1,861 4,098 2,304
--------- --------- --------- ---------
Net Income $ 4,832 $ 3,268 $ 7,136 $ 3,933
========= ========= ========= =========
Net income per common
share:
Basic $ 0.50 $ 0.34 $ 0.73 $ 0.40
========= ========= ========= =========
Diluted $ 0.49 $ 0.33 $ 0.72 $ 0.40
========= ========= ========= =========
Average common shares:
Basic 9,728 9,718 9,728 9,718
========= ========= ========= =========
Diluted 9,841 9,767 9,848 9,766
========= ========= ========= =========
Summary Balance Sheet Data
06/30/04 12/31/03 06/30/03
--------- --------- ---------
Receivables 91,421 64,263 77,696
Inventories 73,420 63,579 66,064
Current Liabilities 56,771 34,706 36,968
Long Term Debt 33,702 14,379 32,616
Equity 150,258 144,067 137,121
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