Douglas Dynamics, Inc. (NYSE: PLOW), North America’s premier
manufacturer and upfitter of work truck attachments and
equipment, today announced financial results for the fourth quarter
and full year ended December 31, 2022.
“Both of our segments produced improved results
in 2022,” explained Bob McCormick, President and CEO. “While
external headwinds persisted, demand remained strong during 2022
and our teams were able to find ways to deliver for our customers
while controlling costs. Our Work Truck Attachments segment had a
tremendous year overall, introducing innovative new products and
taking advantage of changing industry dynamics. As expected, we did
see some pull ahead of demand in the pre-season which, when
combined with below average snowfall in core markets, impacted
volumes and margins in the fourth quarter. It was particularly
pleasing to see the improved results produced by the Work Truck
Solutions segment in the fourth quarter as improved pricing
realization and upfit velocity meant we delivered more trucks to
our customers at higher profitability rates.”
Consolidated Fourth Quarter 2022
Results
$ in millions(except Margins & EPS) |
Q4 2022 |
Q4 2021 |
Net Sales |
$159.8 |
$152.9 |
Gross Profit Margin |
23.7% |
23.7% |
|
|
|
Income from Operations |
$16.7 |
$13.0 |
Net Income |
$11.5 |
$8.8 |
Diluted EPS |
$0.49 |
$0.37 |
|
|
|
Adjusted EBITDA |
$22.9 |
$19.9 |
Adjusted EBITDA Margin |
14.3% |
13.0% |
Adjusted Net Income |
$12.3 |
$10.0 |
Adjusted Diluted EPS |
$0.52 |
$0.42 |
- Financial performance improved
across the board in the fourth quarter, driven by continued price
realization at both segments and higher volumes at Work Truck
Solutions.
Work Truck Attachments Segment Fourth
Quarter 2022 Results
$ in millions (except Adjusted EBITDA Margin) |
Q4 2022 |
Q4 2021 |
Net Sales |
$97.9 |
$97.7 |
Adjusted EBITDA |
$18.6 |
$22.2 |
Adjusted EBITDA Margin |
19.0% |
22.7% |
- Net Sales of $97.9 million were
approximately the same as fourth quarter 2021 with pricing actions
offsetting lower volumes, which were impacted by below average
snowfall in core markets and demand pull ahead in previous
quarters.
- Adjusted EBITDA and Adjusted EBITDA
margins were lower due to lower volumes, and increased labor and
benefit costs.
Work Truck Solutions Segment Fourth
Quarter 2022 Results
$ in millions (except Adjusted EBITDA Margin) |
Q4 2022 |
Q4 2021 |
Net Sales |
$61.9 |
$55.2 |
Adjusted EBITDA |
$4.3 |
$(2.3) |
Adjusted EBITDA Margin |
6.9% |
-4.1% |
- Net Sales increased compared to the
prior year due to price increase realization, ongoing positive
demand and higher truck deliveries, which was partially offset by
continued supply chain disruption and related
inefficiencies.
- The increase in Adjusted EBITDA and
Adjusted EBITDA margin was a result of pricing actions and improved
truck deliveries compared to last year.
Consolidated Full Year 2022
Results
$ in millions(except Margins & EPS) |
FY 2022 |
FY 2021 |
Net Sales |
$616.1 |
$541.5 |
Gross Profit Margin |
24.6% |
26.2% |
|
|
|
Income from Operations |
$58.8 |
$51.1 |
Net Income |
$38.6 |
$30.7 |
Diluted EPS |
$1.63 |
$1.29 |
|
|
|
Adjusted EBITDA |
$86.8 |
$79.5 |
Adjusted EBITDA Margin |
14.1% |
14.7% |
Adjusted Net Income |
$43.5 |
$39.4 |
Adjusted Diluted EPS |
$1.84 |
$1.67 |
- 2022 Net sales increased 13.8% when
compared to 2021, primarily due to pricing actions in both
segments, as well as strong demand in Work Truck Attachments
leading to increased volumes.
- Net Income increased by 25.8% to
$38.6 million in 2022 when compared to full year Net Income of
$30.7 million in 2021.
- Selling, general and administrative
expense increased just 4.2% to $82.2 million for 2022 compared to
$78.8 million for the prior year. The small increase was due to
increased salaries and benefits, travel expenditures, and
advertising costs, as spending was artificially low in 2021 due to
the pandemic. As a percentage of net sales, SG&A decreased from
14.6% in 2021 to 13.3% in 2022.
- Interest expense was $11.3 million
for 2022 compared to $11.8 million in 2021, which was primarily due
to lower interest paid on the term loan following the June 2021
refinancing. This was somewhat offset by an increase in interest
expense on higher borrowings on the revolving line of credit.
- The effective tax rate for 2022 was
18.5% compared to 11.3% for 2021. The increase in 2022 was due to a
discrete tax benefit of $3.3 million in 2021 related to favorable
income tax audit results. The effective tax rate for 2022 was lower
than historical averages due to higher tax credits and state income
tax rate changes.
Work Truck Attachments Segment Full Year
2022 Results
$ in millions (except Adjusted EBITDA Margin) |
FY 2022 |
FY 2021 |
Net Sales |
$382.3 |
$325.7 |
Adjusted EBITDA |
$78.2 |
$77.4 |
Adjusted EBITDA Margin |
20.5% |
23.8% |
- Net sales increased by 17.4%
primarily due to pricing actions, as well as strong preseason order
demand and volumes, despite below average snowfall in the season
ended in March 2022 and below average snowfall in core markets in
the fourth quarter of 2022.
- Adjusted EBITDA increased slightly
based on increased preseason volumes, largely offset by increased
labor and benefit costs.
Work Truck Solutions Segment Full Year
2022 Results
$ in millions (except Adjusted EBITDA Margin) |
FY 2022 |
FY 2021 |
Net Sales |
$233.8 |
$215.7 |
Adjusted EBITDA |
$8.6 |
$2.2 |
Adjusted EBITDA Margin |
3.7% |
1.0% |
- Net sales increased 8.4% primarily
based on price increase realization, as well as more stable and
predictable Class 7-8 chassis supply, somewhat offset by component
shortages leading to lower production volumes.
- Adjusted EBITDA increased
significantly due to price increase realization, favorable sales
mix, and cost savings initiatives, somewhat offset by inflationary
pressures and supply chain constraints leading to manufacturing and
upfit inefficiencies.
- Order backlog at the start of 2023
was a record $360.3 million, compared to $300.4 million a year
ago.
Capital Allocation &
Liquidity
- A quarterly cash dividend of $0.29
per share of the Company's common stock was declared on December 6,
2022, and paid on December 30, 2022, to stockholders of record as
of the close of business on December 19, 2022.
- The Board of Directors also
approved and declared a quarterly cash dividend of $0.295 per share
for the first quarter of 2023. The declared dividend will be paid
on March 31, 2023, to stockholders of record as of the close of
business on March 17, 2023.
- Net Cash Provided by Operating
Activities for 2022 decreased to $40.0 million from $60.5 million
during 2021. Lower cash provided relates to an increase in
inventory due to the pull forward of purchases as well as higher
material costs due to inflation.
- Free Cash Flow for full year 2022
decreased to $28.0 million from $49.3 million for full year 2021,
primarily as a result of a decrease in cash provided by operating
activities and a small increase in capital expenditures.
- As of December 31, 2022, liquidity
comprised of approximately $20.7 million in cash and cash
equivalents and borrowing availability of approximately $99.5
million under the revolving credit facility.
- On January 5, 2023, the Company
exercised an option to expand its Revolving Credit commitment by
$50.0 million to $150.0 million to allow additional flexibility
following the impact of inflation in recent years.
Outlook
2023 financial outlook:
- Net Sales are expected to be
between $620 million and $680 million.
- Adjusted EBITDA is predicted to
range from $85 million to $115 million.
- Adjusted Earnings Per Share are
expected to be in the range of $1.55 per share to $2.45 per
share.
- The effective tax rate is expected
to be approximately 24% to 25%.
- The outlook assumes relatively
stable economic conditions, slightly improving supply of chassis
and components, and that Company’s core markets will experience
average snowfall levels.
McCormick noted, “As we look at 2023, our teams
continue to see opportunities to grow and improve our operations
and we maintain a positive long-term outlook on both segments
overall. Backlog and demand trends remain favorable. Demand for our
Work Truck Attachments products is more influenced by snowfall than
general economic activity. While our Work Truck Solutions segment
is influenced by economic activity, we believe the potential for a
mild to moderate recession will be more than offset by the record
backlog of orders we have to work through in the coming years, and
the need to replace aging trucks and equipment. Overall, we are not
expecting significant near-term improvements in chassis supply but
believe our teams can deliver improved results based on the
macroeconomic and industry predictions, plus the positive customer
sentiment we see today.”
With respect to the Company’s 2023 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, February 21, 2023 at 10:00 a.m. Eastern Time (9:00 a.m.
Central Time). To join the conference call, please dial (833)
634-5024 domestically, or (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, impairment charges, loss on extinguishment of debt, and
incremental costs incurred related to the COVID-19 pandemic. Such
COVID-19 related costs include increased expenses directly related
to the pandemic, and do not include either production related
overhead inefficiencies or lost or deferred sales. We believe these
costs are out of the ordinary, unrelated to our business and not
representative of our results. 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,
impairment charges, loss on extinguishment of debt, certain charges
related to unrelated legal fees and consulting fees, incremental
costs incurred related to the COVID-19 pandemic, and adjustments on
derivatives not classified as hedges, net of their income tax
impact. Such COVID-19 related costs include increased expenses
directly related to the pandemic, and do not include either
production related overhead inefficiencies or lost or deferred
sales. We believe these costs are out of the ordinary, unrelated to
our business and not representative of our results. 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 capital expenditures. 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, pandemics and outbreaks of contagious
diseases and other adverse public health developments, such as the
COVID-19 pandemic, 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, 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, our
inability to compete effectively against competition, our inability
to achieve the projected financial performance with the assets
of Dejana Truck & Utility Equipment Company, Inc.,
which we acquired in 2016, and unexpected costs or liabilities
related to such acquisitions or any future acquisitions, 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,
2021 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.
Douglas
Dynamics, Inc. |
Consolidated
Statements of Income |
(In
thousands, except share and per share data) |
|
|
|
|
|
|
|
Three Month Period Ended |
|
Twelve Month Period Ended |
|
December 31, 2022 |
December 31, 2021 |
|
December 31, 2022 |
December 31, 2021 |
|
(unaudited) |
|
(unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
Net sales |
$ |
159,806 |
|
$ |
152,945 |
|
|
$ |
616,068 |
|
$ |
541,453 |
|
Cost of sales |
|
121,916 |
|
|
116,758 |
|
|
|
464,612 |
|
|
399,581 |
|
Gross profit |
|
37,890 |
|
|
36,187 |
|
|
|
151,456 |
|
|
141,872 |
|
|
|
|
|
|
|
Selling, general, and administrative expense |
|
18,605 |
|
|
19,356 |
|
|
|
82,183 |
|
|
78,844 |
|
Impairment charges |
|
- |
|
|
1,211 |
|
|
|
- |
|
|
1,211 |
|
Intangibles amortization |
|
2,630 |
|
|
2,630 |
|
|
|
10,520 |
|
|
10,682 |
|
|
|
|
|
|
|
Income from operations |
|
16,655 |
|
|
12,990 |
|
|
|
58,753 |
|
|
51,135 |
|
|
|
|
|
|
|
Interest expense, net |
|
(3,401 |
) |
|
(2,325 |
) |
|
|
(11,253 |
) |
|
(11,839 |
) |
Loss on extinguishment of debt |
|
- |
|
|
- |
|
|
|
- |
|
|
(4,936 |
) |
Other income (expense), net |
|
(233 |
) |
|
105 |
|
|
|
(139 |
) |
|
228 |
|
Income before taxes |
|
13,021 |
|
|
10,770 |
|
|
|
47,361 |
|
|
34,588 |
|
|
|
|
|
|
|
Income tax expense |
|
1,509 |
|
|
1,954 |
|
|
|
8,752 |
|
|
3,897 |
|
|
|
|
|
|
|
Net income |
$ |
11,512 |
|
$ |
8,816 |
|
|
$ |
38,609 |
|
$ |
30,691 |
|
|
|
|
|
|
|
Weighted
average number of common shares outstanding: |
|
|
|
|
|
Basic |
|
22,886,793 |
|
|
22,980,951 |
|
|
|
22,915,543 |
|
|
22,954,523 |
|
Diluted |
|
22,886,793 |
|
|
22,988,143 |
|
|
|
22,916,824 |
|
|
22,964,732 |
|
|
|
|
|
|
|
Earnings per
share: |
|
|
|
|
|
Basic earnings per common share attributable to common
shareholders |
$ |
0.49 |
|
$ |
0.38 |
|
|
$ |
1.65 |
|
$ |
1.31 |
|
Earnings per common share assuming dilution attributable to common
shareholders |
$ |
0.49 |
|
$ |
0.37 |
|
|
$ |
1.63 |
|
$ |
1.29 |
|
Cash
dividends declared and paid per share |
$ |
0.29 |
|
$ |
0.29 |
|
|
$ |
1.16 |
|
$ |
1.14 |
|
|
|
|
|
|
|
Douglas Dynamics, Inc. |
Consolidated Balance Sheets |
(In thousands) |
|
|
|
|
December 31, |
December 31, |
|
2022 |
2021 |
|
(unaudited) |
(unaudited) |
|
|
|
Assets |
|
|
Current assets: |
|
|
Cash and cash equivalents |
$ |
20,670 |
|
$ |
36,964 |
|
Accounts receivable, net |
|
86,765 |
|
|
71,035 |
|
Inventories |
|
136,501 |
|
|
104,019 |
|
Inventories - truck chassis floor plan |
|
1,211 |
|
|
2,655 |
|
Refundable income taxes paid |
|
- |
|
|
1,222 |
|
Prepaid and other current assets |
|
7,774 |
|
|
4,536 |
|
Total current assets |
|
252,921 |
|
|
220,431 |
|
|
|
|
Property, plant, and equipment, net |
|
68,660 |
|
|
66,787 |
|
Goodwill |
|
113,134 |
|
|
113,134 |
|
Other intangible assets, net |
|
131,589 |
|
|
142,109 |
|
Operating lease - right of use asset |
|
17,432 |
|
|
18,462 |
|
Non-qualified benefit plan assets |
|
8,874 |
|
|
10,347 |
|
Other long-term assets |
|
4,281 |
|
|
1,206 |
|
Total assets |
$ |
596,891 |
|
$ |
572,476 |
|
|
|
|
Liabilities and stockholders' equity |
|
|
Current liabilities: |
|
|
Accounts payable |
$ |
49,252 |
|
$ |
27,375 |
|
Accrued expenses and other current liabilities |
|
30,484 |
|
|
36,126 |
|
Floor plan obligations |
|
1,211 |
|
|
2,655 |
|
Operating lease liability - current |
|
4,862 |
|
|
4,623 |
|
Income taxes payable |
|
3,485 |
|
|
- |
|
Current portion of long-term debt |
|
11,137 |
|
|
11,137 |
|
Total current liabilities |
|
100,431 |
|
|
81,916 |
|
|
|
|
Retirement benefits and deferred compensation |
|
14,650 |
|
|
17,170 |
|
Deferred income taxes |
|
29,837 |
|
|
29,789 |
|
Long-term debt, less current portion |
|
195,299 |
|
|
206,058 |
|
Operating lease liability - noncurrent |
|
14,025 |
|
|
15,408 |
|
Other long-term liabilities |
|
5,547 |
|
|
7,525 |
|
|
|
|
Total stockholders' equity |
|
237,102 |
|
|
214,610 |
|
Total liabilities and stockholders' equity |
$ |
596,891 |
|
$ |
572,476 |
|
|
|
|
Douglas Dynamics, Inc. |
Consolidated Statements of Cash Flows |
(In thousands) |
|
|
|
|
Twelve Month Period Ended |
|
December 31, 2022 |
December 31, 2021 |
|
(unaudited) |
|
|
|
Operating activities |
|
|
Net income |
$ |
38,609 |
|
$ |
30,691 |
|
Adjustments to reconcile net income to net cash provided by
operating activities: |
|
|
Depreciation and amortization |
|
20,938 |
|
|
20,316 |
|
Loss on extinguishment of debt |
|
-- |
|
|
4,936 |
|
Loss (gain) on disposal of fixed assets |
|
111 |
|
|
(220 |
) |
Amortization of deferred financing costs and debt discount |
|
491 |
|
|
894 |
|
Stock-based compensation |
|
6,730 |
|
|
5,794 |
|
Adjustments on derivatives not designated as hedges |
|
(688 |
) |
|
(1,192 |
) |
Provision (credit) for losses on accounts receivable |
|
(1,476 |
) |
|
67 |
|
Deferred income taxes |
|
(3,268 |
) |
|
1,618 |
|
Impairment charges |
|
-- |
|
|
1,211 |
|
Non-cash lease expense |
|
1,030 |
|
|
1,768 |
|
Changes in operating assets and liabilities, net of
acquisitions: |
|
|
Accounts receivable |
|
(14,253 |
) |
|
12,093 |
|
Inventories |
|
(32,483 |
) |
|
(24,276 |
) |
Prepaid assets, refundable income taxes paid and other assets |
|
3,422 |
|
|
(1,714 |
) |
Accounts payable |
|
21,522 |
|
|
10,418 |
|
Accrued expenses and other current liabilities |
|
1,321 |
|
|
42 |
|
Benefit obligations and other long-term liabilities |
|
(1,976 |
) |
|
(1,911 |
) |
Net cash provided by operating activities |
|
40,030 |
|
|
60,535 |
|
|
|
|
Investing activities |
|
|
Capital expenditures |
|
(12,047 |
) |
|
(11,208 |
) |
Net cash used in investing activities |
|
(12,047 |
) |
|
(11,208 |
) |
|
|
|
Financing activities |
|
|
Repurchase of common stock |
|
(6,001 |
) |
|
-- |
|
Payments of financing costs |
|
-- |
|
|
(1,371 |
) |
Borrowings on long-term debt |
|
-- |
|
|
224,438 |
|
Dividends paid |
|
(27,026 |
) |
|
(26,522 |
) |
Repayment of long-term debt |
|
(11,250 |
) |
|
(249,938 |
) |
Net cash used in financing activities |
|
(44,277 |
) |
|
(53,393 |
) |
Change in cash and cash equivalents |
|
(16,294 |
) |
|
(4,066 |
) |
Cash and cash equivalents at beginning of year |
|
36,964 |
|
|
41,030 |
|
Cash and cash equivalents at end of year |
$ |
20,670 |
|
$ |
36,964 |
|
|
|
|
Non-cash operating and financing activities |
|
|
Truck chassis inventory acquired through floorplan obligations |
$ |
4,725 |
|
$ |
34,432 |
|
|
|
|
Douglas Dynamics, Inc. |
Segment Disclosures (unaudited) |
(In thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended December 31, 2022 |
|
Three Months Ended December 31, 2021 |
|
Twelve Months Ended December 31, 2022 |
|
Twelve Months Ended December 31, 2021 |
|
|
|
|
|
|
|
|
|
|
|
|
Work Truck Attachments |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
97,921 |
|
$ |
97,715 |
|
$ |
382,296 |
|
$ |
325,707 |
Adjusted EBITDA |
$ |
18,649 |
|
$ |
22,163 |
|
$ |
78,211 |
|
$ |
77,369 |
Adjusted EBITDA Margin |
|
19.0% |
|
|
22.7% |
|
|
20.5% |
|
|
23.8% |
|
|
|
|
|
|
|
|
|
|
|
|
Work Truck Solutions |
|
|
|
|
|
|
|
|
|
|
|
Net Sales |
$ |
61,885 |
|
$ |
55,230 |
|
$ |
233,772 |
|
$ |
215,746 |
Adjusted EBITDA |
$ |
4,262 |
|
$ |
-2,266 |
|
$ |
8,569 |
|
$ |
2,167 |
Adjusted EBITDA Margin |
|
6.9% |
|
|
-4.1% |
|
|
3.7% |
|
|
1.0% |
|
|
|
|
|
|
|
|
|
|
|
|
Douglas
Dynamics, Inc. |
Net Income
to Adjusted EBITDA reconciliation (unaudited) |
(In
thousands) |
|
|
|
Three month period ended December 31, |
|
Twelve month period ended December 31, |
|
|
2022 |
|
2021 |
|
2022 |
|
2021 |
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
11,512 |
|
|
$ |
8,816 |
|
|
$ |
38,609 |
|
|
$ |
30,691 |
|
|
|
|
|
|
|
|
|
|
Interest expense - net |
|
|
3,401 |
|
|
|
2,325 |
|
|
|
11,253 |
|
|
|
11,839 |
|
Income tax expense (benefit) |
|
|
1,509 |
|
|
|
1,954 |
|
|
|
8,752 |
|
|
|
3,897 |
|
Depreciation expense |
|
|
2,682 |
|
|
|
2,451 |
|
|
|
10,418 |
|
|
|
9,634 |
|
Intangibles amortization |
|
|
2,630 |
|
|
|
2,630 |
|
|
|
10,520 |
|
|
|
10,682 |
|
EBITDA |
|
|
21,734 |
|
|
|
18,176 |
|
|
|
79,552 |
|
|
|
66,743 |
|
|
|
|
|
|
|
|
|
|
Stock-based compensation |
|
|
1,167 |
|
|
|
(231 |
) |
|
|
6,730 |
|
|
|
5,794 |
|
Impairment charges |
|
|
- |
|
|
|
1,211 |
|
|
|
- |
|
|
|
1,211 |
|
Loss on extinguishment of debt |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,936 |
|
COVID-19 (1) |
|
|
9 |
|
|
|
15 |
|
|
|
48 |
|
|
|
82 |
|
Other charges (2) |
|
|
1 |
|
|
|
726 |
|
|
|
450 |
|
|
|
770 |
|
Adjusted EBITDA |
|
$ |
22,911 |
|
|
$ |
19,897 |
|
|
$ |
86,780 |
|
|
$ |
79,536 |
|
|
|
|
|
|
|
|
|
|
(1) Reflects
incremental costs incurred related to the COVID-19 pandemic for the
periods presented. |
(2) Reflects unrelated
legal, severance, restructuring and consulting fees 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 December 31, |
|
Twelve month period ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net income |
|
$ |
11,512 |
|
|
$ |
8,816 |
|
|
$ |
38,609 |
|
|
$ |
30,691 |
|
Adjustments: |
|
|
|
|
|
|
|
|
Stock based compensation |
|
1,167 |
|
|
|
(231 |
) |
|
|
6,730 |
|
|
|
5,794 |
|
Impairment charges |
|
|
- |
|
|
|
1,211 |
|
|
|
- |
|
|
|
1,211 |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
4,936 |
|
COVID-19 (1) |
|
|
9 |
|
|
|
15 |
|
|
|
48 |
|
|
|
82 |
|
Adjustments on derivative not classified as hedge (2) |
|
(172 |
) |
|
|
(172 |
) |
|
|
(688 |
) |
|
|
(1,192 |
) |
Other charges (3) |
|
|
1 |
|
|
|
726 |
|
|
|
450 |
|
|
|
770 |
|
Tax effect on adjustments |
|
|
(251 |
) |
|
|
(387 |
) |
|
|
(1,635 |
) |
|
|
(2,900 |
) |
Adjusted net income |
|
$ |
12,266 |
|
|
$ |
9,978 |
|
|
$ |
43,514 |
|
|
$ |
39,392 |
|
|
|
|
|
|
|
|
|
|
Weighted average basic common shares outstanding |
|
22,886,793 |
|
|
|
22,980,951 |
|
|
|
22,915,543 |
|
|
|
22,954,523 |
|
Weighted average common shares outstanding assuming dilution |
|
|
22,886,793 |
|
|
|
22,988,143 |
|
|
|
22,916,824 |
|
|
|
22,964,732 |
|
|
|
|
|
|
|
|
|
|
Adjusted earnings per common share - dilutive |
$ |
0.52 |
|
|
$ |
0.42 |
|
|
$ |
1.84 |
|
|
$ |
1.67 |
|
|
|
|
|
|
|
|
|
|
GAAP diluted earnings (loss) per share |
$ |
0.49 |
|
|
$ |
0.37 |
|
|
$ |
1.63 |
|
|
$ |
1.29 |
|
Adjustments net of income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Stock based compensation |
|
0.04 |
|
|
|
(0.01 |
) |
|
|
0.21 |
|
|
|
0.20 |
|
Impairment charges |
|
|
- |
|
|
|
0.04 |
|
|
|
- |
|
|
|
0.04 |
|
Debt modification expense |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Loss on extinguishment of debt |
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
0.16 |
|
COVID-19 (1) |
|
|
- |
|
|
|
- |
|
|
|
- |
|
|
|
- |
|
Adjustments on derivative not classified as hedge (2) |
|
(0.01 |
) |
|
|
(0.01 |
) |
|
|
(0.02 |
) |
|
|
(0.04 |
) |
Other charges (3) |
|
|
- |
|
|
|
0.03 |
|
|
|
0.02 |
|
|
|
0.02 |
|
|
|
|
|
|
|
|
|
|
Adjusted diluted earnings per share |
$ |
0.52 |
|
|
$ |
0.42 |
|
|
$ |
1.84 |
|
|
$ |
1.67 |
|
|
|
|
|
|
|
|
|
|
(1) Reflects incremental costs incurred related to the COVID-19
pandemic for the periods presented. |
(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, severance, restructuring and
consulting fees for the periods presented. |
|
|
|
|
|
|
|
|
|
Douglas Dynamics, Inc. |
Free Cash Flow reconciliation (unaudited) |
(In thousands) |
|
|
|
Three month period ended December 31, |
|
Twelve month period ended December 31, |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
2022 |
|
|
|
2021 |
|
|
|
|
|
|
|
|
|
|
Net cash provided by operating activities |
|
$ |
114,516 |
|
|
$ |
80,016 |
|
|
$ |
40,030 |
|
|
$ |
60,535 |
|
Acquisition of property and equipment |
|
(3,123 |
) |
|
|
(3,937 |
) |
|
|
(12,047 |
) |
|
|
(11,208 |
) |
Free cash flow |
|
$ |
111,393 |
|
|
$ |
76,079 |
|
|
$ |
27,983 |
|
|
$ |
49,327 |
|
|
For further information contact:Douglas Dynamics, Inc.Nathan
Elwell847-530-0249investorrelations@douglasdynamics.com
Douglas Dynamics (NYSE:PLOW)
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