Alamo Group Inc. Announces Year End 2000 Results.Business Editors SEGUIN, Texas--(BUSINESS WIRE)--Feb. 20, 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 fourth quarter and year ended December 31, 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 year ended December 31, 2000 increased 22% to $215.9 million compared with $176.6 million for 1999, due primarily to the contributions from Schwarze Industries and Schulte Industries, which were acquired in 2000, as well as to internal growth. Net income for 2000, was $10.8 million, or $1.11 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, which is 76% greater than the prior years net income of $6.1 million or $0.63 per diluted share. Included in the 2000 results were total costs in the fourth quarter of approximately $400,000, or $0.04 per diluted share after tax, associated with the previously announced closing 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. manufacturing facility, along with costs related to the ERP (Enterprise Resource Planning) An integrated information system that serves all departments within an enterprise. Evolving out of the manufacturing industry, ERP implies the use of packaged software rather than proprietary software written by or for one customer. system implementation. Excluding these costs, net income for 2000 was $11.2 million, or $1.15 per diluted share. The 1999 results include a charge of $3.2 million before tax, or $0.20 per diluted share after tax, related to write downs that resulted from the Company's adaptation of a more conservative policy on excess and obsolete inventory Obsolete Inventory Term that refers to inventory that is at the end of its product life cycle and has not seen any sales or usage for a set period of time usually determined by the industry. This type of inventory has to be written down and can cause large losses for a company. . Net income for 1999 before costs associated with the inventory adjustment was $8.1 million, or $0.83 per diluted share. For the fourth quarter of 2000 net sales increased 26% to $49.5 million compared to $39.4 million for the same period in 1999. Net income for the fourth quarter of 2000 was $270,000, or $0.03 per diluted share, compared with $743,000 or $0.08 per diluted share in the fourth quarter of 1999. Excluding the costs in the fourth quarter associated with the Guymon closure and ERP system implementation, net income in the fourth quarter of 2000 was approximately $670,000, or $0.07 per diluted share. 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. , Chief Executive Officer, commented "While we are generally pleased with the progress we made in 2000 compared to 1999, fourth quarter results were below our expectations. Sales for the fourth quarter of 2000 were on target in the face of challenging conditions in our agricultural and European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. markets. However, profits for the quarter were affected by unfavorable year end variances including a less beneficial product mix and the early arrival of winter weather conditions as compared to a year ago. While we anticipated doing better, it was the second highest fourth quarter results we have had in the last five years." North American North American named after North America. North American blastomycosis see North American blastomycosis. North American cattle tick see boophilusannulatus. Industrial sales increased 63% to $95.9 million for the year 2000 and 77% to $22.4 million in the fourth quarter of 2000 compared to the respective 1999 periods. This market continues to hold steady and would have shown more internal growth were it not for delivery delays experienced in the second and third quarters of 2000. North American Agricultural sales increased 5% to $79.8 million for the year 2000 and 5% to $18.6 million in the fourth quarter of 2000 compared to the respective periods of 1999. This revenue growth is encouraging given the continued depressed conditions in the overall U.S. agriculture market. The anticipated market strengthening in this sector did not materialize ma·te·ri·al·ize v. ma·te·ri·al·ized, ma·te·ri·al·iz·ing, ma·te·ri·al·iz·es v.tr. 1. To cause to become real or actual: By building the house, we materialized a dream. in 2000, and we are doubtful 2001 will show any improvement in the overall agricultural market. European sales decreased 4% to $40.3 million for the year 2000 and decreased 5% to $8.6 million for the fourth quarter of 2000 compared to the same periods of 1999. The results for our European division reflect the weakness in both the British pound and the Euro that persisted during 2000. Also throughout 2000, the market conditions in Europe for the Company's products were depressed due to the overall weakness in Europe's agricultural sector as well as its overall economy. We believe this situation will continue in 2001. In light of these conditions, we successfully maintained our revenue levels for the year and the quarter. European sales, in local currency, increased 2% to (pound)26.5 million for the year 2000 and 7% to (pound)5.9 million for the fourth quarter of 2000 compared to the respective periods of 1999. Subsequent to the quarter end the Company completed two asset sales. The first is the sale of the Company's LaGrange, Illinois manufacturing facility, which ceased production at the end of 1999. The second is the sale of its 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. based trucking operation. These two transactions will result in a gain of approximately $0.05 per diluted share after tax, in the first quarter of 2001. Mr. Robinson concluded, "Looking ahead to 2001 we feel good about our prospects for continued improvement. Our backlog Backlog The total value of sales orders waiting to be fulfilled. Notes: This figure is used mainly in the manufacturing industry. Increases or decreases in a company's backlog indicate the future direction of sales and earnings. of $43.5 million at the beginning of 2001, is well above the previous year's level of $34.3 million. While we are still concerned about continued weakness in the U.S. agriculture market, an apparent slowdown For articles with similar titles, see Slow Down (disambiguation). A slowdown is an industrial action in which employees perform their duties but seek to reduce productivity or efficiency in their performance of these duties. in the overall U.S. economy, and declining conditions in our European markets, we believe we will continue to grow in 2001. We expect to see sales growth of more than 10% and earnings growth of more than 20% in 2001, as compared to 2000, provided that we continue to improve our internal efficiencies and our markets do not experience further softening softening /sof·ten·ing/ (sof´en-ing) malacia. softening a change of consistency, with loss of firmness or hardness. . This does not include the affect of any future acquisitions." 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 vegetation /veg·e·ta·tion/ (vej?e-ta´shun) any plantlike fungoid neoplasm or growth; a luxuriant fungus-like growth of pathologic tissue. 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 December 2000. 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 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)
Fourth Quarter Ended Year Ended
-------------------- ----------
12/31/00 12/31/99 12/31/00 12/31/99
-------- -------- -------- --------
North American
Agricultural $18,603 $17,748 $79,756 $75,931
Industrial 22,363 12,603 95,867 58,719
European 8,568 9,058 40,255 41,958
-------- ---------- --------- ---------
Total sales 49,534 39,409 215,878 176,608
Cost of sales 40,039 30,197 163,726 135,705
-------- --------- -------- --------
Gross margin 9,495 9,212 52,152 40,903
Operating expenses 8,999 8,233 34,651 30,123
-------- ---------- --------- ---------
Income from operations 496 979 17,501 10,780
Interest expense (662) (140) (2,190) (1,495)
Interest income 204 210 765 604
Other income (Expense) 30 398 (186) (193)
--------- ---------- ----------- -----------
Income before income
taxes 68 1,447 15,890 9,696
Provision for income
taxes (202) 704 5,120 3,594
--------- ---------- ---------- ----------
Net income $ 270 $ 743 $ 10,770 $ 6,102
======== ========== ======== =========
Net income per
common share:
Basic $ 0.03 $ 0.08 $ 1.11 $ 0.63
======== ========== ========== ==========
Diluted $ 0.03 $ 0.08 $ 1.11 $ 0.63
======== ========== ========== ==========
Average common shares:
Basic 9,704 9,695 9,698 9,722
======== ========== ========== ==========
Diluted 9,774 9,705 9,759 9,726
======== ========== ========== ==========
Summary Balance Sheet Data
12/31/00 12/31/99
Receivables $ 50,359 $ 41,764
Inventories $ 59,608 $ 45,570
Current Liabilities $ 26,660 $ 18,040
Long Term Debt $ 30,788 $ 5,469
Equity $ 114,393 $ 108,030
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