Douglas Dynamics, Inc. (NYSE: PLOW), North America’s premier
manufacturer and upfitter of work truck attachments and
equipment, today announced financial results for the third quarter
ended September 30, 2024.
Jim Janik, Chairman, Interim President, and CEO,
noted, “Overall, our results this quarter were generally in line
with our expectations. Our Henderson operations are outperforming
this year, helping to drive strong improvements for the quarter in
Solutions. Difficult as it was, our decision to implement the 2024
Cost Savings Program at the start of the year is now proving to be
the right strategy as the elongated equipment replacement cycle
becomes clearer. We firmly believe the actions taken mean that our
Attachments segment is well positioned to succeed over the medium-
to long-term in all market conditions. We are proud of the
resilience demonstrated by our team and their focus on our
customers, as we continue to build for the future.”
Consolidated Third Quarter 2024
Results
$ in millions(except Margins & EPS) |
Q3 2024 |
Q3 2023 |
Net Sales |
$129.4 |
|
$144.1 |
|
Gross Profit Margin |
23.9 |
% |
22.3 |
% |
|
|
|
Income from Operations |
$45.9 |
|
$11.5 |
|
Net Income |
$32.3 |
|
$5.8 |
|
Diluted EPS |
$1.36 |
|
$0.24 |
|
|
|
|
Adjusted EBITDA |
$15.3 |
|
$17.3 |
|
Adjusted EBITDA Margin |
11.8% |
% |
12.0 |
% |
Adjusted Net Income |
$5.9 |
|
$6.0 |
|
Adjusted Diluted EPS |
$0.24 |
|
$0.25 |
|
- Net sales were $129.4 million for
the third quarter 2024, compared to $144.1 million in the same
period last year. The decrease is a result of low snowfall in the
previous snow seasons leading to lower volumes at Attachments
partially offset by price realization at Solutions.
- Gross profit for the third quarter of 2024 was $30.9 million,
compared to $32.1 million for the third quarter of 2023. Gross
profit margin increased 160 basis points to 23.9% for the third
quarter of 2024 from 22.3% in the same period of 2023, due to
higher price realization and the impact of the 2024 Cost Savings
Program.
- On September 11, 2024, the Company
announced a sale leaseback transaction of seven facilities valued
at $64.2 million. The net gain was $42.3 million, and the proceeds
were primarily used to pay down term loan debt.
- As a reminder, the 2024 Cost Savings Program is expected to
deliver $11 - 12 million in sustainable annualized savings, $9
million of which is expected to be realized in 2024.
- Selling, general and administrative
expenses were $25.7 million, or $20.4 million excluding costs
associated with the sale leaseback transaction, for the third
quarter of 2024. This compares to $18.0 million for the same period
of 2023. The remaining increase of $2.4 million is primarily
related to CEO transition costs and higher incentive-based
compensation.
- The effective tax rate was 22.7%
and 16.4% for the third quarter of 2024 and 2023, respectively. The
tax rate increased due to the purchase of investment tax credits in
the prior period.
- Net income for the third quarter
was $32.3 million compared to $5.8 million in the same period of
the previous year. Adjusted net income for the third quarter was
$5.9 million compared to $6.0 million for the third quarter of
2023.
- Adjusted EBITDA decreased to $15.3
million for the third quarter 2024, compared to $17.3 million in
the corresponding period of 2023, due to low snowfall in the
previous two snow seasons leading to lower volumes at Attachments,
which was partly offset by price increase realization, and improved
efficiencies at Solutions.
Work Truck Attachments Segment Third
Quarter 2024 Results
$ in millions (except Adjusted EBITDA Margin) |
Q3 2024 |
Q3 2023 |
Net Sales |
$60.2 |
|
$75.9 |
|
Adjusted EBITDA |
$8.1 |
|
$12.3 |
|
Adjusted EBITDA Margin |
13.5 |
% |
16.2 |
% |
- Net sales were $60.2 million
for the quarter, slightly lower than expected based on lower
reorder volumes and product mix.
- Adjusted EBITDA was affected by the
same factors, which were partially offset by the 2024 Cost Savings
Program.
- Attachments results continue to be
impacted by two consecutive years of significantly below average
snowfall in core markets, which created an elongated equipment
replacement cycle and led to lower order volumes.
- As expected, the ratio of
pre-season shipments in 2024 was 65:35 between the second and third
quarters.
- The 2024 Cost Savings Program has
helped preserve profitability, with Adjusted EBITDA margins close
to 20% on a year-to-date basis.
Janik explained, “We fully expected our
pre-season orders to be impacted by the lack of snowfall in recent
winters, and the second and third quarters tracked just slightly
below our overall predictions. On a year-to-date basis, our results
are below last year, but with higher adjusted EBITDA margins close
to 20%. We are talking with our dealers and monitoring order
patterns and will be ready to ramp up production as needed as we
work through the elongated equipment replacement cycle. We have
adjusted our operations to match current market conditions and will
continue to prudently invest in upgrading our manufacturing
capabilities.”
Work Truck Solutions Segment Third
Quarter 2024 Results
$ in millions (except Adjusted EBITDA Margin) |
Q3 2024 |
Q3 2023 |
Net Sales |
$69.1 |
|
$68.2 |
|
Adjusted EBITDA |
$7.2 |
|
$5.0 |
|
Adjusted EBITDA Margin |
10.4 |
% |
7.3 |
% |
- Work Truck Solutions delivered
strong results with Net Sales of $69.1 million, relatively flat to
last year, with volumes slightly down, offset by higher price
realization.
- Adjusted EBITDA increased 44% to $7.2 million, with margins of
10.4%, a 310-basis point improvement, and the highest third quarter
margin on record. The improvements were based on price increase
realization, and improved efficiencies, primarily at
Henderson.
Janik noted, “We are pleased with the ongoing
improvements in our Solutions businesses, which generated record
third quarter results this quarter. The profitability shown this
quarter exceeded our expectations. Results were also strong on a
year-to-date basis, with Adjusted EBITDA margins more than doubling
to 9.5% when compared to the previous year. These results continue
to validate the progress we are making towards our growth and
profitability goals, which are very much achievable over the near-
to medium-term.”
Dividend & Liquidity
- On a year-to-date basis, Net cash
used in operating activities decreased $30.9 million
in 2024 compared to 2023. The improvement relates to
favorable changes in working capital, including decreases in
cash used in accounts payable, accounts receivable, and
inventory.
- Free cash flow for the nine months
ended September 30, 2024 was ($37.3) million compared to
($71.9) million in the corresponding period in 2023. The
increase of $34.6 million is primarily a result of
lower cash used in operating
activities.
- Proceeds from the sale leaseback
transaction favorably impacted cash provided by investing
activities by $64.2 million. Proceeds of $42.0 million were used in
financing activities to voluntarily prepay long-term debt.
- As of September 30, 2024, we had
$90.9 million of total liquidity, comprised of
$8.4 million in cash and cash equivalents and
$82.5 million of borrowing availability under our revolving
credit facility.
- The previously amended leverage
ratio covenant under our credit agreement returned to 3.5X on
September 30, 2024. Following the voluntary pre-payment of debt
during the quarter, the Company’s leverage ratio at the end of the
third quarter was 2.6X.
- A quarterly cash dividend of $0.295
per share of the Company's common stock was paid on September 30,
2024, to stockholders of record on September 16, 2024.
2024 Outlook
Sarah Lauber, Executive Vice President, and CFO
explained, “The recent strong performance and positive near-term
outlook for Work Truck Solutions means that segment is poised to
deliver improved full year results for the third year in a row.
Work Truck Attachments performance remains constrained by the
elongated replacement cycle, but our manufacturing operations are
well aligned to current market conditions. Therefore, we are moving
our Net Sales guidance range slightly lower and reducing the top
end of our 2024 Adjusted EBITDA and Adjusted EPS guidance
ranges.”
2024 financial outlook:
- Net Sales are now expected to be
between $570 million and $600 million, versus the previous range of
$600 to $640 million.
- Adjusted EBITDA is now predicted to
range from $70 million to $80 million, versus the previous range of
$70 to $90 million.
- Adjusted Earnings Per Share is now
expected to be in the range of $1.20 per share to $1.60 per share,
versus the previous range of $1.20 to $1.70.
- The effective tax rate is expected
to be approximately 24% to 25%.
The 2024 financial outlook assumes the
following:
- Relatively stable economic
conditions.
- Stable to slightly improving supply
of chassis and components.
- Core markets will experience
average snowfall in the fourth quarter of 2024.
With respect to the Company’s 2024 guidance, the
Company is not able to provide a reconciliation of the non-GAAP
financial measures to GAAP because it does not provide specific
guidance for the various extraordinary, nonrecurring, or unusual
charges and other certain items. These items have not yet occurred,
are out of the Company’s control and/or cannot be reasonably
predicted. As a result, reconciliation of the non-GAAP guidance
measures to GAAP is not available without unreasonable effort and
the Company is unable to address the probable significance of the
unavailable information.
Earnings Conference Call
Information
The Company will host a conference call on
Tuesday, October 29, 2024, at 10:00 a.m. Eastern Time (9:00 a.m.
Central Time). To join the conference call, please dial
1-833-634-5024 domestically, or 1-412-902-4205 internationally.
The call will also be available via the Investor
Relations section of the Company’s website at
www.douglasdynamics.com. For those who cannot listen to the live
broadcast, replays will be available for one week following the
call.
About Douglas Dynamics
Home to the most trusted brands in the industry,
Douglas Dynamics is North America’s premier manufacturer and
up-fitter of commercial work truck attachments and equipment. For
more than 75 years, the Company has been innovating products that
not only enable people to perform their jobs more efficiently and
effectively, but also enable businesses to increase profitability.
Through its proprietary Douglas Dynamics Management System (DDMS),
the Company is committed to continuous improvement aimed at
consistently producing the highest quality products, at
industry-leading levels of service and delivery that ultimately
drive shareholder value. The Douglas Dynamics portfolio of products
and services is separated into two segments: First, the Work Truck
Attachments segment, which includes commercial snow and ice control
equipment sold under the FISHER®, SNOWEX® and WESTERN® brands.
Second, the Work Truck Solutions segment, which includes the up-fit
of market leading attachments and storage solutions under the
HENDERSON® brand, and the DEJANA® brand and its related
sub-brands.
Use of Non-GAAP Financial
Measures
This press release contains financial
information calculated other than in accordance
with U.S. Generally Accepted Accounting Principles
(“GAAP”). The non-GAAP measures used in this press release are
Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per
Share, and Free Cash Flow. The Company believes that these non-GAAP
measures are useful to investors and other external users of its
consolidated financial statements in evaluating the Company’s
operating performance as compared to that of other companies.
Reconciliations of these non-GAAP measures to the nearest
comparable GAAP measures can be found immediately following the
Consolidated Statements of Cash Flows included in this press
release.
Adjusted EBITDA represents net income before
interest, taxes, depreciation, and amortization, as further
adjusted for certain charges consisting of unrelated legal and
consulting fees, stock-based compensation, severance, restructuring
charges, CEO transition costs, insurance proceeds, gain on sale
leaseback transaction and related transaction costs, and impairment
charges. The Company uses Adjusted EBITDA in evaluating the
Company’s operating performance because it provides the Company and
its investors with additional tools to compare its operating
performance on a consistent basis by removing the impact of certain
items that management believes do not directly reflect the
Company’s core operations. The Company’s management also uses
Adjusted EBITDA for planning purposes, including the preparation of
its annual operating budget and financial projections, and to
evaluate the Company’s ability to make certain payments, including
dividends, in compliance with its senior credit facilities, which
is determined based on a calculation of “Consolidated Adjusted
EBITDA” that is substantially similar to Adjusted EBITDA.
Adjusted Net Income and Adjusted Earnings Per
Share (calculated on a diluted basis) represents net income and
earnings per share (as defined by GAAP), excluding the impact of
stock based compensation, severance, restructuring charges, CEO
transition costs, insurance proceeds, gain on sale leaseback
transaction and related transaction costs, impairment charges,
certain charges related to unrelated legal fees and consulting
fees, and adjustments on derivatives not classified as hedges, net
of their income tax impact. Adjustments on derivatives not
classified as hedges are non-cash and are related to overall
financial market conditions; therefore, management believes such
costs are unrelated to our business and are not representative of
our results. Management believes that Adjusted Net Income and
Adjusted Earnings Per Share are useful in assessing the Company’s
financial performance by eliminating expenses and income that are
not reflective of the underlying business performance.
Free Cash Flow is a non-GAAP financial measure
that we define as net cash provided by (used in) operating
activities less net cash used in investing activities. Free Cash
Flow should be evaluated in addition to, and not considered a
substitute for, other financial measures such as Net Income
and Net Cash Provided By (Used in) Operating
Activities. We believe that free cash flow represents our
ability to generate additional cash flow from our business
operations.
Forward Looking Statements
This press release contains certain
forward-looking statements within the meaning of Section 21E of the
Securities Exchange Act of 1934, as amended. These statements
include information relating to future events, future financial
performance, strategies, expectations, competitive environment,
regulation, product demand, the payment of dividends, and
availability of financial resources. These statements are often
identified by use of words such as "anticipate," "believe,"
"intend," "estimate," "expect," "continue," "should," "could,"
"may," "plan," "project," "predict," "will" and similar expressions
and include references to assumptions and relate to our future
prospects, developments, and business strategies. Such
statements involve known and unknown risks, uncertainties and other
factors that could cause our actual results, performance, or
achievements to be materially different from any future results,
performance or achievements expressed or implied by these
forward-looking statements. Factors that could cause or contribute
to such differences include, but are not limited to, weather
conditions, particularly lack of or reduced levels of snowfall and
the timing of such snowfall, our ability to manage general
economic, business and geopolitical conditions, including the
impacts of natural disasters, labor strikes, global political
instability, adverse developments affecting the banking and
financial services industries, pandemics and outbreaks of
contagious diseases and other adverse public health developments,
our inability to maintain good relationships with our distributors,
our inability to maintain good relationships with the original
equipment manufacturers with whom we currently do significant
business, lack of available or favorable financing options for our
end-users, distributors or customers, increases in the price of
steel or other materials, including as a result of tariffs,
necessary for the production of our products that cannot be passed
on to our distributors, increases in the price of fuel or freight,
a significant decline in economic conditions, the inability of our
suppliers and original equipment manufacturer partners to meet our
volume or quality requirements, inaccuracies in our estimates of
future demand for our products, our inability to protect or
continue to build our intellectual property portfolio, the effects
of laws and regulations and their interpretations on our business
and financial condition, including policy or regulatory changes
related to climate change, our inability to develop new products or
improve upon existing products in response to end-user needs,
losses due to lawsuits arising out of personal injuries associated
with our products, factors that could impact the future declaration
and payment of dividends, or our ability to execute repurchases
under our stock repurchase program, our inability to compete
effectively against competition, our inability to successfully
implement our new enterprise resource planning system at
Dejana, as well as those discussed in the section entitled “Risk
Factors” in our annual report on Form 10-K for the year
ended December 31, 2023 and any subsequent Form 10-Q filings.
You should not place undue reliance on these forward-looking
statements. In addition, the forward-looking statements in this
release speak only as of the date hereof and we undertake no
obligation, except as required by law, to update or release any
revisions to any forward-looking statement, even if new information
becomes available in the future.
For further information contact:Douglas
Dynamics, Inc.Nathan ElwellVice President of Investor
Relations847-530-0249investorrelations@douglasdynamics.com
Douglas Dynamics, Inc. |
|
Consolidated Balance Sheets |
|
(In thousands) |
|
|
|
|
|
|
|
|
|
|
September 30, |
December 31, |
|
|
2024 |
2023 |
|
|
(unaudited) |
(unaudited) |
|
|
|
|
|
Assets |
|
|
|
Current assets: |
|
|
|
Cash and cash equivalents |
$ |
8,413 |
$ |
24,156 |
|
Accounts receivable, net |
|
153,096 |
|
83,760 |
|
Inventories |
|
145,362 |
|
140,390 |
|
Inventories - truck chassis floor plan |
|
3,459 |
|
2,217 |
|
Refundable income taxes paid |
|
- |
|
4,817 |
|
Prepaid and other current assets |
|
5,738 |
|
6,898 |
|
Total current assets |
|
316,068 |
|
262,238 |
|
|
|
|
|
Property, plant, and equipment, net |
|
39,309 |
|
67,340 |
|
Goodwill |
|
113,134 |
|
113,134 |
|
Other intangible assets, net |
|
115,180 |
|
121,070 |
|
Operating lease - right of use asset |
|
69,295 |
|
18,008 |
|
Non-qualified benefit plan assets |
|
10,589 |
|
9,195 |
|
Other long-term assets |
|
2,012 |
|
2,433 |
|
Total assets |
$ |
665,587 |
$ |
593,418 |
|
|
|
|
|
Liabilities and stockholders' equity |
|
|
|
Current liabilities: |
|
|
|
Accounts payable |
$ |
35,278 |
$ |
31,374 |
|
Accrued expenses and other current liabilities |
|
31,200 |
|
25,817 |
|
Floor plan obligations |
|
3,459 |
|
2,217 |
|
Operating lease liability - current |
|
6,848 |
|
5,347 |
|
Income taxes payable |
|
3,729 |
|
- |
|
Short term borrowings |
|
67,000 |
|
47,000 |
|
Current portion of long-term debt |
|
- |
|
6,762 |
|
Total current liabilities |
|
147,514 |
|
118,517 |
|
|
|
|
|
Retiree benefits and deferred compensation |
|
15,036 |
|
13,922 |
|
Deferred income taxes |
|
25,418 |
|
27,903 |
|
Long-term debt, less current portion |
|
146,502 |
|
181,491 |
|
Operating lease liability - noncurrent |
|
63,802 |
|
13,887 |
|
Other long-term liabilities |
|
6,559 |
|
6,133 |
|
|
|
|
|
Total stockholders' equity |
|
260,756 |
|
231,565 |
|
Total liabilities and stockholders' equity |
$ |
665,587 |
$ |
593,418 |
|
|
|
|
|
Douglas Dynamics, Inc. |
Consolidated Statements of Income |
(In thousands, except share and per share
data) |
|
|
|
|
|
|
|
Three Month Period Ended |
|
Nine Month Period Ended |
|
September 30, 2024 |
September 30, 2023 |
|
September 30, 2024 |
September 30, 2023 |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
129,398 |
|
$ |
144,121 |
|
|
$ |
424,955 |
|
$ |
433,933 |
|
Cost of sales |
|
98,523 |
|
|
111,992 |
|
|
|
313,857 |
|
|
329,166 |
|
Gross profit |
|
30,875 |
|
|
32,129 |
|
|
|
111,098 |
|
|
104,767 |
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
25,688 |
|
|
17,998 |
|
|
|
70,546 |
|
|
64,612 |
|
Impairment charges |
|
- |
|
|
- |
|
|
|
1,224 |
|
|
- |
|
Gain on sale leaseback transaction |
|
(42,298 |
) |
|
- |
|
|
|
(42,298 |
) |
|
- |
|
Intangibles amortization |
|
1,630 |
|
|
2,630 |
|
|
|
5,890 |
|
|
7,890 |
|
|
|
|
|
|
|
Income from operations |
|
45,855 |
|
|
11,501 |
|
|
|
75,736 |
|
|
32,265 |
|
|
|
|
|
|
|
Interest expense, net |
|
(4,469 |
) |
|
(4,607 |
) |
|
|
(12,116 |
) |
|
(11,207 |
) |
Other income (expense), net |
|
354 |
|
|
35 |
|
|
|
304 |
|
|
(19 |
) |
Income before taxes |
|
41,740 |
|
|
6,929 |
|
|
|
63,924 |
|
|
21,039 |
|
|
|
|
|
|
|
Income tax expense |
|
9,482 |
|
|
1,137 |
|
|
|
15,680 |
|
|
4,393 |
|
|
|
|
|
|
|
Net income |
$ |
32,258 |
|
$ |
5,792 |
|
|
$ |
48,244 |
|
$ |
16,646 |
|
|
|
|
|
|
|
Weighted average number of common shares outstanding: |
|
|
|
|
|
Basic |
|
23,094,047 |
|
|
22,983,965 |
|
|
|
23,065,924 |
|
|
22,955,388 |
|
Diluted |
|
23,577,883 |
|
|
22,983,965 |
|
|
|
23,476,039 |
|
|
22,955,388 |
|
|
|
|
|
|
|
Earnings per share: |
|
|
|
|
|
Basic earnings per common share attributable to common
shareholders |
$ |
1.37 |
|
$ |
0.25 |
|
|
$ |
2.05 |
|
$ |
0.71 |
|
Earnings per common share assuming dilution attributable to common
shareholders |
$ |
1.36 |
|
$ |
0.24 |
|
|
$ |
2.04 |
|
$ |
0.69 |
|
Cash dividends declared and paid per share |
$ |
0.30 |
|
$ |
0.30 |
|
|
$ |
0.89 |
|
$ |
0.89 |
|
|
|
|
|
|
|
Douglas Dynamics, Inc. |
Consolidated Statements of Cash Flows |
(In thousands) |
|
|
|
|
Nine Month Period Ended |
|
September 30, 2024 |
September 30, 2023 |
|
(unaudited) |
|
|
|
Operating activities |
|
|
Net income |
$ |
48,244 |
|
$ |
16,646 |
|
Adjustments to reconcile net income to net cash used in operating
activities: |
|
|
Depreciation and amortization |
|
14,029 |
|
|
16,180 |
|
Loss (gain) on disposal of fixed asset |
|
347 |
|
|
(45 |
) |
Amortization of deferred financing costs and debt discount |
|
526 |
|
|
440 |
|
Gain on sale leaseback transaction |
|
(42,298 |
) |
|
- |
|
Stock-based compensation |
|
3,627 |
|
|
4,236 |
|
Adjustments on derivatives not designated as hedges |
|
(287 |
) |
|
(516 |
) |
Provision for losses on accounts receivable |
|
527 |
|
|
329 |
|
Deferred income taxes |
|
(2,485 |
) |
|
(2,177 |
) |
Impairment charges |
|
1,224 |
|
|
- |
|
Non-cash lease expense |
|
4,264 |
|
|
287 |
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
Accounts receivable |
|
(69,863 |
) |
|
(78,866 |
) |
Inventories |
|
(4,972 |
) |
|
(10,745 |
) |
Prepaid assets, refundable income taxes paid and other assets |
|
(1,071 |
) |
|
(1,403 |
) |
Accounts payable |
|
4,355 |
|
|
(6,826 |
) |
Accrued expenses and other current liabilities |
|
9,114 |
|
|
(979 |
) |
Benefit obligations, long-term liabilities and other |
|
1,446 |
|
|
(709 |
) |
Net cash used in operating activities |
|
(33,273 |
) |
|
(64,148 |
) |
|
|
|
Investing activities |
|
|
Capital expenditures |
|
(3,982 |
) |
|
(7,723 |
) |
Proceeds from sale leaseback transaction |
|
64,150 |
|
|
-- |
|
Proceeds from insurance recoveries |
|
366 |
|
|
-- |
|
Net cash provided by (used in) investing activities |
|
60,534 |
|
|
(7,723 |
) |
|
|
|
Financing activities |
|
|
Payments of financing costs |
|
(279 |
) |
|
(334 |
) |
Proceeds from (payments on) life insurance policy loans |
|
(204 |
) |
|
750 |
|
Dividends paid |
|
(20,521 |
) |
|
(20,689 |
) |
Net revolver borrowings |
|
20,000 |
|
|
101,000 |
|
Repayment of long-term debt |
|
(42,000 |
) |
|
(18,438 |
) |
Net cash provided by (used in) financing activities |
|
(43,004 |
) |
|
62,289 |
|
Change in cash and cash equivalents |
|
(15,743 |
) |
|
(9,582 |
) |
Cash and cash equivalents at beginning of period |
|
24,156 |
|
|
20,670 |
|
Cash and cash equivalents at end of period |
$ |
8,413 |
|
$ |
11,088 |
|
|
|
|
Non-cash operating and financing activities |
|
|
Truck chassis inventory acquired through floorplan obligations |
$ |
5,637 |
|
$ |
7,245 |
|
|
|
|
Douglas Dynamics, Inc. |
Segment Disclosures (unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended September 30, 2024 |
|
Three Months Ended September 30, 2023 |
|
Nine Months Ended September 30, 2024 |
|
Nine Months Ended September 30, 2023 |
|
|
|
|
|
|
|
|
|
|
|
|
Work Truck Attachments |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
60,249 |
|
|
$ |
75,879 |
|
|
$ |
202,226 |
|
|
$ |
236,346 |
|
Adjusted EBITDA |
$ |
8,139 |
|
|
$ |
12,328 |
|
|
$ |
39,463 |
|
|
$ |
44,393 |
|
Adjusted EBITDA Margin |
|
13.5 |
% |
|
|
16.2 |
% |
|
|
19.5 |
% |
|
|
18.8 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Work Truck Solutions |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
69,149 |
|
|
$ |
68,242 |
|
|
$ |
222,729 |
|
|
$ |
197,587 |
|
Adjusted EBITDA |
$ |
7,192 |
|
|
$ |
4,985 |
|
|
$ |
21,097 |
|
|
$ |
8,807 |
|
Adjusted EBITDA Margin |
|
10.4 |
% |
|
|
7.3 |
% |
|
|
9.5 |
% |
|
|
4.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Douglas Dynamics, Inc. |
|
Net Income to Adjusted EBITDA reconciliation
(unaudited) |
|
(In thousands) |
|
|
|
Three month period ended September 30, |
|
Nine month period ended September 30, |
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
32,258 |
|
|
$ |
5,792 |
|
$ |
48,244 |
|
|
$ |
16,646 |
|
|
|
|
|
|
|
|
|
|
|
Interest expense - net |
|
|
4,469 |
|
|
|
4,607 |
|
|
12,116 |
|
|
|
11,207 |
|
Income tax expense |
|
|
9,482 |
|
|
|
1,137 |
|
|
15,680 |
|
|
|
4,393 |
|
Depreciation expense |
|
|
2,647 |
|
|
|
2,751 |
|
|
8,139 |
|
|
|
8,290 |
|
Intangibles amortization |
|
|
1,630 |
|
|
|
2,630 |
|
|
5,890 |
|
|
|
7,890 |
|
EBITDA |
|
|
50,486 |
|
|
|
16,917 |
|
|
90,069 |
|
|
|
48,426 |
|
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
794 |
|
|
|
- |
|
|
3,627 |
|
|
|
4,236 |
|
Impairment charges (1) |
|
|
- |
|
|
|
- |
|
|
1,224 |
|
|
|
- |
|
Gain on sale leaseback transaction |
|
(42,298 |
) |
|
|
- |
|
|
(42,298 |
) |
|
|
- |
|
Sale leaseback transaction fees |
|
|
5,257 |
|
|
|
- |
|
|
5,257 |
|
|
|
- |
|
Restructuring and severance costs |
|
417 |
|
|
|
- |
|
|
1,819 |
|
|
|
- |
|
Other charges (2) |
|
|
675 |
|
|
|
396 |
|
|
862 |
|
|
|
538 |
|
Adjusted EBITDA |
|
$ |
15,331 |
|
|
$ |
17,313 |
|
$ |
60,560 |
|
|
$ |
53,200 |
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects impairment charges taken on certain internally
developed software in the nine months ended September 30,
2024. |
|
(2) Reflects unrelated legal and consulting fees, insurance
proceeds, and CEO transition costs for the periods presented. |
|
|
|
Douglas Dynamics, Inc. |
Reconciliation of Net Income to Adjusted Net Income
(unaudited) |
(In thousands, except share and per share
data) |
|
|
Three month period ended September 30, |
|
|
Nine month period ended September 30, |
|
|
2024 |
|
2023 |
|
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
32,258 |
|
|
$ |
5,792 |
|
|
|
$ |
48,244 |
|
|
$ |
16,646 |
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
794 |
|
|
|
- |
|
|
|
|
3,627 |
|
|
|
4,236 |
|
Impairment charges (1) |
|
|
- |
|
|
|
- |
|
|
|
|
1,224 |
|
|
|
- |
|
Gain on sale leaseback transaction |
|
(42,298 |
) |
|
|
- |
|
|
|
|
(42,298 |
) |
|
|
- |
|
Sale leaseback transaction fees |
|
5,257 |
|
|
|
- |
|
|
|
|
5,257 |
|
|
|
- |
|
Restructuring and severance costs |
|
|
417 |
|
|
|
- |
|
|
|
|
1,819 |
|
|
|
- |
|
Adjustments on derivative not classified as hedge (2) |
|
- |
|
|
|
(172 |
) |
|
|
|
(287 |
) |
|
|
(516 |
) |
Other charges (3) |
|
|
675 |
|
|
|
396 |
|
|
|
|
862 |
|
|
|
538 |
|
Tax effect on adjustments |
|
|
8,789 |
|
|
|
(56 |
) |
|
|
|
7,449 |
|
|
|
(1,064 |
) |
Adjusted net income |
|
$ |
5,892 |
|
|
$ |
5,960 |
|
|
|
$ |
25,897 |
|
|
$ |
19,840 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average basic common shares outstanding |
|
23,094,047 |
|
|
|
22,983,965 |
|
|
|
|
23,065,924 |
|
|
|
22,955,388 |
|
Weighted average common shares outstanding assuming dilution |
|
23,577,883 |
|
|
|
22,983,965 |
|
|
|
|
23,476,039 |
|
|
|
22,955,388 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per common share - dilutive |
$ |
0.24 |
|
|
$ |
0.25 |
|
|
|
$ |
1.09 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings per share |
$ |
1.36 |
|
|
$ |
0.24 |
|
|
|
$ |
2.04 |
|
|
$ |
0.69 |
|
Adjustments net of income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
0.02 |
|
|
|
- |
|
|
|
|
0.11 |
|
|
|
0.13 |
|
Impairment charges (1) |
|
|
- |
|
|
|
- |
|
|
|
|
0.04 |
|
|
|
- |
|
Gain on sale leaseback transaction |
|
(1.34 |
) |
|
|
- |
|
|
|
|
(1.35 |
) |
|
|
- |
|
Sale leaseback transaction fees |
|
0.17 |
|
|
|
- |
|
|
|
|
0.17 |
|
|
|
- |
|
Restructuring and severance costs |
|
|
0.00 |
|
|
|
- |
|
|
|
|
0.06 |
|
|
|
- |
|
Adjustments on derivative not classified as hedge (2) |
|
|
- |
|
|
|
(0.01 |
) |
|
|
|
(0.01 |
) |
|
|
(0.02 |
) |
Other charges (3) |
|
|
0.02 |
|
|
|
0.02 |
|
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
$ |
0.24 |
|
|
$ |
0.25 |
|
|
|
$ |
1.09 |
|
|
$ |
0.82 |
|
|
|
|
|
|
|
|
|
|
|
(1) Reflects impairment charges taken on certain internally
developed software in the nine months ended September 30,
2024. |
|
(2) Reflects non-cash mark-to-market and amortization adjustments
on an interest rate swap not classified as a hedge for the periods
presented. |
(3) Reflects unrelated legal and consulting fees, insurance
proceeds, and CEO transition costs for the periods presented. |
|
|
|
|
|
|
|
|
|
|
|
Douglas Dynamics, Inc. |
Free Cash Flow reconciliation (unaudited) |
(In thousands) |
|
|
Three month period ended September 30, |
|
Nine month period ended September 30, |
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
|
|
|
|
|
|
|
|
Net cash provided by (used in) operating activities |
$ |
(14,159 |
) |
|
$ |
2,079 |
|
|
$ |
(33,273 |
) |
|
$ |
(64,148 |
) |
Acquisition of property and equipment |
|
(1,231 |
) |
|
|
(2,433 |
) |
|
|
(3,982 |
) |
|
|
(7,723 |
) |
Free cash flow |
|
$ |
(15,390 |
) |
|
$ |
(354 |
) |
|
$ |
(37,255 |
) |
|
$ |
(71,871 |
) |
|
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