Valmont Reports Fourth Quarter and Full Year 2023 Results
Provides 2024 Financial Outlook and New Long-Term Financial Targets
President and Chief Executive Officer
Applbaum added, “Turning to 2024, we remain focused on what we can control. We are sustaining higher gross profit margins through ongoing improvement in operational efficiencies and commitment to our pricing strategies. We are reducing SG&A expense through the realignment program we announced last quarter. We expect these efforts to help mitigate the bottom-line impact of softer demand in agriculture and telecommunications markets, and to position our business for incremental profit when those markets normalize. Turning to the segments, in Infrastructure, demand for our products remains strong and we are making strategic capacity investments to meet the needs of our customers and take advantage of the visible opportunities ahead of us. In Agriculture, we expect lower sales this year amid more challenging global market conditions due to lower grain prices and farm income projections. Across both segments, we will continue to deliver operational efficiencies and benefit from our realigned organization. Our market leadership, combined with a relentless focus on strong cash flow generation, return on invested capital and a disciplined capital allocation framework gives us confidence in our actions to enhance shareholder value for years to come.”
Fourth Quarter 2023 Highlights (all metrics compared to Fourth Quarter 2022 unless otherwise noted)
-
Net Sales decreased 10.3% to$1.0 billion . Accounting for the 2022 divestiture of the offshore wind energy structures business, reported in the “Other” segment,Net Sales decreased 7.5%1 -
Operating Income decreased 42.1% to
$63.5 million or 6.3% of net sales (decreased 11.9% to$100.2 million or 9.9% adjusted1) compared to$109.7 million or 9.7% of net sales ($113.7 million or 10.4% adjusted1) -
Diluted Earnings per Share (“EPS”) of
$1.38 ($3.18 adjusted1) compared to$1.86 ($3.57 adjusted1) -
Generated strong operating cash flows of
$115.9 million ; cash and cash equivalents at the end of the fourth quarter were$203.0 million
Full Year 2023 Highlights (all metrics compared to Full Year 2022 unless otherwise noted)
-
Net Sales decreased 3.9% to$4.2 billion . Accounting for the 2022 divestiture of the offshore wind energy structures business, reported in the “Other” segment,Net Sales decreased 1.7%1 -
Operating Income decreased 32.7% to
$291.6 million or 7.0% of net sales (increased 5.2% to$473.2 million or 11.3% adjusted1) compared to$433.2 million or 10.0% of net sales ($449.7 million or 10.6% adjusted1) -
Diluted EPS of
$6.78 ($14.98 adjusted1) compared to$11.62 ($13.82 adjusted1) -
Generated strong operating cash flows of
$306.8 million and free cash flow of$210.0 million 1, driven by net earnings and working capital management -
Deployed
$524.2 million of capital, including$129.4 million for capital expenditures and acquisitions, and$394.8 million was returned to shareholders through dividends and share repurchases-
Share repurchases include a
$120.0 million Accelerated Share Repurchase program announced in the fourth quarter
-
Share repurchases include a
-
Achieved Return on
Invested Capital of 7.2% (14.0% adjusted1)
Key Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Fourth Quarter 2023 |
|
GAAP |
Adjusted1 |
|||||||||||||||
(000s except per share amounts) |
|
13 weeks |
|
14 weeks |
|
|
|
13 weeks |
|
14 weeks |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
Q4 2023 |
|
Q4 2022 |
|
vs. Q4 2022 |
|
Q4 2023 |
|
Q4 2022 |
|
vs. Q4 2022 |
||||||
|
|
$ |
1,015,526 |
|
$ |
1,131,516 |
|
(10.3 |
)% |
|
$ |
1,015,526 |
|
$ |
1,098,244 |
|
(7.5 |
)% |
Gross Profit |
|
|
282,941 |
|
|
298,959 |
|
(5.4 |
)% |
|
|
282,941 |
|
|
298,959 |
|
(5.4 |
)% |
Gross Profit as a % of |
|
|
27.9 |
% |
|
26.4 |
% |
|
|
|
27.9 |
% |
|
27.2 |
% |
|
||
Operating Income |
|
|
63,548 |
|
|
109,716 |
|
(42.1 |
)% |
|
|
100,204 |
|
|
113,734 |
|
(11.9 |
)% |
Operating Income as a % of |
|
|
6.3 |
% |
|
9.7 |
% |
|
|
|
9.9 |
% |
|
10.4 |
% |
|
||
Net Earnings1 |
|
|
28,587 |
|
|
40,332 |
|
(29.1 |
)% |
|
|
66,034 |
|
|
77,256 |
|
(14.5 |
)% |
Diluted Earnings per Share |
|
|
1.38 |
|
|
1.86 |
|
(25.8 |
)% |
|
|
3.18 |
|
|
3.57 |
|
(10.9 |
)% |
Average Shares Outstanding |
|
|
20,764 |
|
|
21,656 |
|
|
|
|
20,764 |
|
|
21,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
Full Year 2023 |
|
GAAP |
Adjusted1 |
|||||||||||||||
(000s except per share amounts) |
|
52 weeks |
|
53 weeks |
|
|
|
52 weeks |
|
53 weeks |
|
|
||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||
|
|
FY 2023 |
|
FY 2022 |
|
vs. FY 2022 |
|
FY 2023 |
|
FY 2022 |
|
vs. FY 2022 |
||||||
|
|
$ |
4,174,598 |
|
$ |
4,345,250 |
|
(3.9 |
)% |
|
$ |
4,174,598 |
|
$ |
4,245,031 |
|
(1.7 |
)% |
Gross Profit |
|
|
1,236,034 |
|
|
1,126,224 |
|
9.8 |
% |
|
|
1,236,034 |
|
|
1,126,224 |
|
9.8 |
% |
Gross Profit as a % of |
|
|
29.6 |
% |
|
25.9 |
% |
|
|
|
29.6 |
% |
|
26.5 |
% |
|
||
Operating Income |
|
|
291,557 |
|
|
433,249 |
|
(32.7 |
)% |
|
|
473,237 |
|
|
449,725 |
|
5.2 |
% |
Operating Income as a % of |
|
|
7.0 |
% |
|
10.0 |
% |
|
|
|
11.3 |
% |
|
10.6 |
% |
|
||
Net Earnings1 |
|
|
143,475 |
|
|
250,863 |
|
(42.8 |
)% |
|
|
316,926 |
|
|
298,139 |
|
6.3 |
% |
Diluted Earnings per Share |
|
|
6.78 |
|
|
11.62 |
|
(41.7 |
)% |
|
|
14.98 |
|
|
13.82 |
|
8.4 |
% |
Average Shares Outstanding |
|
|
21,159 |
|
|
21,580 |
|
|
|
|
21,159 |
|
|
21,580 |
|
|
Fourth Quarter 2023 Segment Review
Infrastructure
(73.4% of
Products and solutions to serve the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to protect metal products
Sales of
Operating Income decreased to
Agriculture
(26.6% of
Center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture
Sales of
International sales growth was driven by higher project sales and sales from the HR Products acquisition, offset by lower sales in
Operating Income decreased to
Other
Offshore wind energy structures business
As previously announced, the divestiture of the offshore wind energy structures business was completed in
Balance Sheet, Liquidity, and Capital Allocation
The Company generated full-year 2023 free cash flow1 of
Organizational Realignment Program
As announced in
Introducing 2024 Full Year Financial Outlook and Key Assumptions
The Company is introducing its 2024 full-year net sales and diluted earnings per share outlook and key assumptions for the year.
-
Net Sales Change (vs. prior year) of (3.0%) to flat
- Infrastructure sales growth expected to approach mid-single digits
- Agriculture sales expected to decrease 15-20%
-
Diluted Earnings per Share of
$14.25 to$15.50 - Effective tax rate of approximately 26%
- Minimal expected foreign currency translation impact to net sales
-
Capital expenditures expected to be in the range of
$125 to$140 million to support strategic growth initiatives
Providing New Long-Term Financial Targets
The Company is taking the opportunity to provide new long-term financial targets beyond 2024.
Metric |
Target |
Organic Net Sales Growth |
Above Mid-Single Digits |
Operating Margin |
Approaching Mid-Teens |
Return on |
High-Teens |
Free Cash Flow Conversion |
100% of Net Earnings |
Applbaum continued, “I’m excited to share our long-term financial targets for Valmont beyond 2024. We are focusing on strategic initiatives that drive sustainable growth and profitability over the long term with an ongoing commitment to value creation. We are executing a focused and disciplined plan to leverage our diversified portfolio and deliver operating margin and ROIC improvements. As evidenced by these goals, we are demonstrating higher levels of through-cycle structural profitability while making our company more resilient. This drives our position as a market leader, enabling us to achieve greater performance and create sustainable value for our shareholders.”
A live audio discussion with
About
For over 75 years, Valmont® has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control) and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include among other things, the continuing and developing effects of the pandemic including the effects of the outbreak on the general economy and the specific economic effects on the Company’s business and that of its customers and suppliers, risk factors described from time to time in Valmont’s reports to the
Website and Social Media Disclosure
The Company uses its website and social media channels identified on its website as channels of distribution of Company information. The information that the Company posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following the Company’s press releases,
1Please see Reg G reconciliation to GAAP measures at end of document |
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)
|
|
13 and 14 Weeks Ended |
|
52 and 53 Weeks Ended |
||||||||||||
|
|
December |
|
December |
|
December |
|
December |
||||||||
|
|
30, 2023 |
|
|
31, 2022 |
|
|
30, 2023 |
|
|
31, 2022 |
|
||||
Net sales |
|
$ |
1,015,526 |
|
|
$ |
1,131,516 |
|
|
$ |
4,174,598 |
|
|
$ |
4,345,250 |
|
Cost of sales |
|
|
732,585 |
|
|
|
832,557 |
|
|
|
2,938,564 |
|
|
|
3,219,026 |
|
Gross profit |
|
|
282,941 |
|
|
|
298,959 |
|
|
|
1,236,034 |
|
|
|
1,126,224 |
|
Selling, general, and administrative expenses |
|
|
188,363 |
|
|
|
189,243 |
|
|
|
768,423 |
|
|
|
692,975 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
140,844 |
|
|
|
— |
|
Realignment charges |
|
|
31,030 |
|
|
|
— |
|
|
|
35,210 |
|
|
|
— |
|
Operating income |
|
|
63,548 |
|
|
|
109,716 |
|
|
|
291,557 |
|
|
|
433,249 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(15,314 |
) |
|
|
(13,256 |
) |
|
|
(56,808 |
) |
|
|
(47,534 |
) |
Interest income |
|
|
1,651 |
|
|
|
996 |
|
|
|
6,230 |
|
|
|
2,015 |
|
Gain (loss) on investments - unrealized |
|
|
1,773 |
|
|
|
932 |
|
|
|
3,564 |
|
|
|
(3,374 |
) |
Loss from divestiture of offshore wind energy structures business |
|
|
— |
|
|
|
(33,273 |
) |
|
|
— |
|
|
|
(33,273 |
) |
Other |
|
|
(6,492 |
) |
|
|
4,268 |
|
|
|
(8,091 |
) |
|
|
12,805 |
|
Other income (expense), net |
|
|
(18,382 |
) |
|
|
(40,333 |
) |
|
|
(55,105 |
) |
|
|
(69,361 |
) |
Earnings before income taxes and equity in loss of nonconsolidated subsidiaries |
|
|
45,166 |
|
|
|
69,383 |
|
|
|
236,452 |
|
|
|
363,888 |
|
Income tax expense |
|
|
10,882 |
|
|
|
28,156 |
|
|
|
90,121 |
|
|
|
108,687 |
|
Equity in loss of nonconsolidated subsidiaries |
|
|
(200 |
) |
|
|
(19 |
) |
|
|
(1,419 |
) |
|
|
(950 |
) |
Net earnings |
|
|
34,084 |
|
|
|
41,208 |
|
|
|
144,912 |
|
|
|
254,251 |
|
Loss (earnings) attributable to redeemable noncontrolling interests |
|
|
1,877 |
|
|
|
(876 |
) |
|
|
5,937 |
|
|
|
(3,388 |
) |
Net earnings attributable to |
|
|
35,961 |
|
|
|
40,332 |
|
|
|
150,849 |
|
|
|
250,863 |
|
Change in redemption value of redeemable noncontrolling interests |
|
|
(7,374 |
) |
|
|
— |
|
|
|
(7,374 |
) |
|
|
— |
|
Net earnings attributable to |
|
$ |
28,587 |
|
|
$ |
40,332 |
|
|
$ |
143,475 |
|
|
$ |
250,863 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average shares outstanding (000s) - Basic |
|
|
20,577 |
|
|
|
21,319 |
|
|
|
20,956 |
|
|
|
21,311 |
|
Earnings per share - Basic |
|
$ |
1.39 |
|
|
$ |
1.89 |
|
|
$ |
6.85 |
|
|
$ |
11.77 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average shares outstanding (000s) - Diluted |
|
|
20,764 |
|
|
|
21,656 |
|
|
|
21,159 |
|
|
|
21,580 |
|
Earnings per share - Diluted |
|
$ |
1.38 |
|
|
$ |
1.86 |
|
|
$ |
6.78 |
|
|
$ |
11.62 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends per share |
|
$ |
0.60 |
|
|
$ |
0.55 |
|
|
$ |
2.40 |
|
|
$ |
2.20 |
|
SUMMARY OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
|
13 and 14 Weeks Ended |
52 and 53 Weeks Ended |
|||||||||||
|
|
|
|
|
|
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
|
||||
Infrastructure |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
745,713 |
|
$ |
765,077 |
|
$ |
2,999,637 |
|
$ |
2,909,746 |
|
Gross profit |
|
|
201,968 |
|
|
201,978 |
|
|
842,081 |
|
|
736,611 |
|
as a percent of net sales |
|
|
27.1 |
% |
|
26.4 |
% |
|
28.1 |
% |
|
25.3 |
% |
Selling, general, and administrative expenses |
|
|
103,227 |
|
|
102,387 |
|
|
424,997 |
|
|
382,112 |
|
as a percent of net sales |
|
|
13.8 |
% |
|
13.4 |
% |
|
14.2 |
% |
|
13.1 |
% |
Impairment of long-lived assets |
|
|
— |
|
|
— |
|
|
3,571 |
|
|
— |
|
Realignment charges |
|
|
16,191 |
|
|
— |
|
|
17,260 |
|
|
— |
|
Operating income |
|
|
82,550 |
|
|
99,591 |
|
|
396,253 |
|
|
354,499 |
|
as a percent of net sales |
|
|
11.1 |
% |
|
13.0 |
% |
|
13.2 |
% |
|
12.2 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Agriculture |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
269,813 |
|
$ |
333,167 |
|
$ |
1,174,961 |
|
$ |
1,335,285 |
|
Gross profit |
|
|
80,973 |
|
|
94,378 |
|
|
393,953 |
|
|
381,793 |
|
as a percent of net sales |
|
|
30.0 |
% |
|
28.3 |
% |
|
33.5 |
% |
|
28.6 |
% |
Selling, general, and administrative expenses |
|
|
58,833 |
|
|
53,894 |
|
|
230,729 |
|
|
202,530 |
|
as a percent of net sales |
|
|
21.8 |
% |
|
16.2 |
% |
|
19.6 |
% |
|
15.2 |
% |
Impairment of long-lived assets |
|
|
— |
|
|
— |
|
|
137,273 |
|
|
— |
|
Realignment charges |
|
|
8,194 |
|
|
— |
|
|
9,101 |
|
|
— |
|
Operating income |
|
|
13,946 |
|
|
40,484 |
|
|
16,850 |
|
|
179,263 |
|
as a percent of net sales |
|
|
5.2 |
% |
|
12.2 |
% |
|
1.4 |
% |
|
13.4 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Other |
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
— |
|
$ |
33,272 |
|
$ |
— |
|
$ |
100,219 |
|
Gross profit |
|
|
— |
|
|
2,603 |
|
|
— |
|
|
7,820 |
|
as a percent of net sales |
|
|
NM |
|
|
7.8 |
% |
|
NM |
|
|
7.8 |
% |
Selling, general, and administrative expenses |
|
|
— |
|
|
1,158 |
|
|
— |
|
|
5,561 |
|
as a percent of net sales |
|
|
NM |
|
|
3.5 |
% |
|
NM |
|
|
5.5 |
% |
Operating income |
|
|
— |
|
|
1,445 |
|
|
— |
|
|
2,259 |
|
as a percent of net sales |
|
|
NM |
|
|
4.3 |
% |
|
NM |
|
|
2.3 |
% |
|
|
|
|
|
|
|
|
|
|
||||
Corporate |
|
|
|
|
|
|
|
|
|
||||
Selling, general, and administrative expenses |
|
$ |
26,303 |
|
$ |
31,804 |
|
$ |
112,697 |
|
$ |
102,772 |
|
Realignment charges |
|
|
6,645 |
|
|
— |
|
|
8,849 |
|
|
— |
|
Operating loss |
|
|
(32,948 |
) |
|
(31,804 |
) |
|
(121,546 |
) |
|
(102,772 |
) |
NM = not meaningful
Valmont has aggregated its business segments into two global reportable segments as follows.
Infrastructure: This segment consists of the manufacture and distribution of products and solutions to serve infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to protect metal products.
Agriculture: This segment consists of the manufacture of center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture.
In addition to these two reportable segments, the Company had a business and related activities that were not more than 10% of consolidated sales, operating income, or assets. This business, the offshore wind energy structures business, was reported in the “Other” segment until its divestiture in fiscal 2022.
SUMMARY OPERATING RESULTS
(Dollars in millions)
(Unaudited)
The backlog of orders for the principal products manufactured and marketed was
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
2023 |
|
2022 |
||
Infrastructure |
|
$ |
1,299.6 |
|
$ |
1,339.1 |
Agriculture |
|
|
165.9 |
|
|
317.3 |
Total backlog |
|
$ |
1,465.5 |
|
$ |
1,656.4 |
SUMMARY OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
|
Thirteen weeks ended |
||||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
575,166 |
|
$ |
136,378 |
|
$ |
(4,240 |
) |
|
$ |
707,304 |
International |
|
|
173,124 |
|
|
135,266 |
|
|
(168 |
) |
|
|
308,222 |
Total sales |
|
$ |
748,290 |
|
$ |
271,644 |
|
$ |
(4,408 |
) |
|
$ |
1,015,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
316,674 |
|
$ |
— |
|
$ |
— |
|
|
$ |
316,674 |
Lighting and Transportation |
|
|
236,210 |
|
|
— |
|
|
— |
|
|
|
236,210 |
Coatings |
|
|
84,129 |
|
|
— |
|
|
(2,409 |
) |
|
|
81,720 |
Telecommunications |
|
|
56,660 |
|
|
— |
|
|
— |
|
|
|
56,660 |
Solar |
|
|
54,617 |
|
|
— |
|
|
(168 |
) |
|
|
54,449 |
Irrigation Equipment and Parts |
|
|
— |
|
|
244,148 |
|
|
(1,831 |
) |
|
|
242,317 |
Technology Products and Services |
|
|
— |
|
|
27,496 |
|
|
— |
|
|
|
27,496 |
Total sales |
|
$ |
748,290 |
|
$ |
271,644 |
|
$ |
(4,408 |
) |
|
$ |
1,015,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourteen weeks ended |
||||||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Other |
|
Intersegment |
|
Consolidated |
||||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
588,867 |
|
$ |
202,560 |
|
$ |
— |
|
$ |
(5,932 |
) |
|
$ |
785,495 |
International |
|
|
182,470 |
|
|
132,506 |
|
|
33,272 |
|
|
(2,227 |
) |
|
|
346,021 |
Total sales |
|
$ |
771,337 |
|
$ |
335,066 |
|
$ |
33,272 |
|
$ |
(8,159 |
) |
|
$ |
1,131,516 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
302,444 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
302,444 |
Lighting and Transportation |
|
|
239,453 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
239,453 |
Coatings |
|
|
92,441 |
|
|
— |
|
|
— |
|
|
(4,032 |
) |
|
|
88,409 |
Telecommunications |
|
|
87,577 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
87,577 |
Solar |
|
|
49,422 |
|
|
— |
|
|
— |
|
|
(2,228 |
) |
|
|
47,194 |
Irrigation Equipment and Parts |
|
|
— |
|
|
302,965 |
|
|
— |
|
|
(1,899 |
) |
|
|
301,066 |
Technology Products and Services |
|
|
— |
|
|
32,101 |
|
|
— |
|
|
— |
|
|
|
32,101 |
Other |
|
|
— |
|
|
— |
|
|
33,272 |
|
|
— |
|
|
|
33,272 |
Total sales |
|
$ |
771,337 |
|
$ |
335,066 |
|
$ |
33,272 |
|
$ |
(8,159 |
) |
|
$ |
1,131,516 |
SUMMARY OPERATING RESULTS
(Dollars in thousands)
(Unaudited)
|
Fifty-two weeks ended |
||||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,318,801 |
|
$ |
587,056 |
|
$ |
(16,282 |
) |
|
$ |
2,889,575 |
International |
|
|
691,266 |
|
|
595,167 |
|
|
(1,410 |
) |
|
|
1,285,023 |
Total sales |
|
$ |
3,010,067 |
|
$ |
1,182,223 |
|
$ |
(17,692 |
) |
|
$ |
4,174,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
1,243,768 |
|
$ |
— |
|
$ |
— |
|
|
$ |
1,243,768 |
Lighting and Transportation |
|
|
964,072 |
|
|
— |
|
|
— |
|
|
|
964,072 |
Coatings |
|
|
354,330 |
|
|
— |
|
|
(9,020 |
) |
|
|
345,310 |
Telecommunications |
|
|
252,165 |
|
|
— |
|
|
— |
|
|
|
252,165 |
Solar |
|
|
195,732 |
|
|
— |
|
|
(1,410 |
) |
|
|
194,322 |
Irrigation Equipment and Parts |
|
|
— |
|
|
1,069,425 |
|
|
(7,262 |
) |
|
|
1,062,163 |
Technology Products and Services |
|
|
— |
|
|
112,798 |
|
|
— |
|
|
|
112,798 |
Total sales |
|
$ |
3,010,067 |
|
$ |
1,182,223 |
|
$ |
(17,692 |
) |
|
$ |
4,174,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-three weeks ended |
||||||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Other |
|
Intersegment |
|
Consolidated |
||||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
2,234,339 |
|
$ |
766,929 |
|
$ |
— |
|
$ |
(26,248 |
) |
|
$ |
2,975,020 |
International |
|
|
694,080 |
|
|
579,743 |
|
|
100,219 |
|
|
(3,812 |
) |
|
|
1,370,230 |
Total sales |
|
$ |
2,928,419 |
|
$ |
1,346,672 |
|
$ |
100,219 |
|
$ |
(30,060 |
) |
|
$ |
4,345,250 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
1,184,660 |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
1,184,660 |
Lighting and Transportation |
|
|
940,462 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
940,462 |
Coatings |
|
|
356,707 |
|
|
— |
|
|
— |
|
|
(15,327 |
) |
|
|
341,380 |
Telecommunications |
|
|
320,342 |
|
|
— |
|
|
— |
|
|
— |
|
|
|
320,342 |
Solar |
|
|
126,248 |
|
|
— |
|
|
— |
|
|
(3,346 |
) |
|
|
122,902 |
Irrigation Equipment and Parts |
|
|
— |
|
|
1,231,587 |
|
|
— |
|
|
(11,387 |
) |
|
|
1,220,200 |
Technology Products and Services |
|
|
— |
|
|
115,085 |
|
|
— |
|
|
— |
|
|
|
115,085 |
Other |
|
|
— |
|
|
— |
|
|
100,219 |
|
|
— |
|
|
|
100,219 |
Total sales |
|
$ |
2,928,419 |
|
$ |
1,346,672 |
|
$ |
100,219 |
|
$ |
(30,060 |
) |
|
$ |
4,345,250 |
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(Unaudited)
|
|
|
|
|||
|
|
2023 |
|
2022 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
203,041 |
|
$ |
185,406 |
Receivables, net |
|
|
657,960 |
|
|
604,181 |
Inventories |
|
|
658,428 |
|
|
728,762 |
Contract assets |
|
|
175,721 |
|
|
174,539 |
Prepaid expenses and other current assets |
|
|
91,754 |
|
|
87,697 |
Refundable income taxes |
|
|
725 |
|
|
— |
Total current assets |
|
|
1,787,629 |
|
|
1,780,585 |
Property, plant, and equipment, net |
|
|
617,394 |
|
|
595,578 |
|
|
|
1,072,425 |
|
|
1,180,833 |
Total assets |
|
$ |
3,477,448 |
|
$ |
3,556,996 |
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
719 |
|
$ |
1,194 |
Notes payable to banks |
|
|
3,205 |
|
|
5,846 |
Accounts payable |
|
|
358,311 |
|
|
360,312 |
Accrued expenses |
|
|
277,764 |
|
|
248,320 |
Contract liabilities |
|
|
70,978 |
|
|
172,915 |
Income taxes payable |
|
|
— |
|
|
3,664 |
Dividends payable |
|
|
12,125 |
|
|
11,742 |
Total current liabilities |
|
|
723,102 |
|
|
803,993 |
Long-term debt, excluding current installments |
|
|
1,107,885 |
|
|
870,935 |
Operating lease liabilities |
|
|
162,743 |
|
|
155,469 |
Other non-current liabilities |
|
|
66,646 |
|
|
84,887 |
Total liabilities |
|
|
2,060,376 |
|
|
1,915,284 |
Redeemable noncontrolling interests |
|
|
62,792 |
|
|
60,865 |
Shareholders' equity |
|
|
1,354,280 |
|
|
1,580,847 |
Total liabilities, redeemable noncontrolling interests, and shareholders' equity |
|
$ |
3,477,448 |
|
$ |
3,556,996 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Dollars in thousands)
(Unaudited)
|
52 and 53 Weeks Ended |
|||||||
|
|
|
|
|
||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net earnings |
|
$ |
144,912 |
|
|
$ |
254,251 |
|
Depreciation and amortization |
|
|
98,708 |
|
|
|
97,167 |
|
Contribution to defined benefit pension plan |
|
|
(17,345 |
) |
|
|
(17,155 |
) |
Impairment of long-lived assets |
|
|
140,844 |
|
|
|
— |
|
Loss (gain) on divestitures |
|
|
(2,994 |
) |
|
|
33,273 |
|
Change in working capital |
|
|
(66,342 |
) |
|
|
(56,092 |
) |
Other |
|
|
8,992 |
|
|
|
14,821 |
|
Net cash flows provided by operating activities |
|
|
306,775 |
|
|
|
326,265 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant, and equipment |
|
|
(96,771 |
) |
|
|
(93,288 |
) |
Proceeds from divestiture, net of cash divested |
|
|
6,369 |
|
|
|
— |
|
Proceeds from property damage insurance claims |
|
|
7,468 |
|
|
|
— |
|
Acquisitions, net of cash acquired |
|
|
(32,676 |
) |
|
|
(39,287 |
) |
Other |
|
|
329 |
|
|
|
495 |
|
Net cash flows used in investing activities |
|
|
(115,281 |
) |
|
|
(132,080 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from long-term borrowings |
|
|
370,012 |
|
|
|
253,999 |
|
Principal payments on long-term borrowings |
|
|
(134,748 |
) |
|
|
(336,403 |
) |
Net payments on short-term borrowings |
|
|
(3,298 |
) |
|
|
(7,577 |
) |
Purchase of treasury shares |
|
|
(345,279 |
) |
|
|
(40,474 |
) |
Dividends to redeemable noncontrolling interests |
|
|
(662 |
) |
|
|
(714 |
) |
Purchase of redeemable noncontrolling interests |
|
|
— |
|
|
|
(7,338 |
) |
Dividends paid |
|
|
(49,515 |
) |
|
|
(45,813 |
) |
Other |
|
|
(12,915 |
) |
|
|
2,415 |
|
Net cash flows used in financing activities |
|
|
(176,405 |
) |
|
|
(181,905 |
) |
Effect of exchange rates on cash and cash equivalents |
|
|
2,546 |
|
|
|
(4,106 |
) |
Net change in cash and cash equivalents |
|
|
17,635 |
|
|
|
8,174 |
|
Cash and cash equivalents - beginning of period |
|
|
185,406 |
|
|
|
177,232 |
|
Cash and cash equivalents - end of period |
|
$ |
203,041 |
|
|
$ |
185,406 |
|
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(Unaudited)
The non-GAAP table below discloses the impacts of the impairment of long-lived assets, realignment charges, and non-recurring charges associated with major scope changes for two strategic projects initiated by departed senior leadership on net earnings for fiscal 2023, as well as the impact of the loss from Argentine peso hyperinflation and non-recurring tax benefit items on net earnings. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings to be taken into consideration by management and investors with the related reported GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Thirteen |
|
|
|
|
Fifty-two |
|
|
|
||||||
|
|
weeks ended |
|
Diluted |
|
weeks ended |
|
Diluted |
||||||||
|
|
December |
|
earnings per |
|
December |
|
earnings per |
||||||||
|
|
30, 2023 |
|
|
share1 |
|
30, 2023 |
|
|
share1 |
||||||
Net earnings attributable to |
$ |
28,587 |
|
$ |
1.38 |
$ |
143,475 |
$ |
6.78 |
|||||||
Less: Change in redemption value of redeemable noncontrolling interests |
|
|
7,374 |
|
|
|
0.36 |
|
|
|
7,374 |
|
|
|
0.35 |
|
Net earnings attributable to |
|
|
35,961 |
|
|
|
1.73 |
|
|
|
150,849 |
|
|
|
7.13 |
|
Impairment of long-lived assets |
|
|
— |
|
|
|
— |
|
|
|
140,844 |
|
|
|
6.66 |
|
Realignment charges |
|
|
31,030 |
|
|
|
1.49 |
|
|
|
35,210 |
|
|
|
1.66 |
|
Other non-recurring charges |
|
|
5,626 |
|
|
|
0.27 |
|
|
|
5,626 |
|
|
|
0.27 |
|
Total adjustments, pre-tax |
|
|
36,656 |
|
|
|
1.77 |
|
|
|
181,680 |
|
|
|
8.59 |
|
Tax effect of adjustments2 |
|
|
(9,118 |
) |
|
|
(0.44 |
) |
|
|
(14,550 |
) |
|
|
(0.69 |
) |
Loss from Argentine peso hyperinflation, net of tax, attributable to |
|
|
2,535 |
|
|
|
0.12 |
|
|
|
2,535 |
|
|
|
0.12 |
|
Non-recurring tax benefit items |
|
|
— |
|
|
|
— |
|
|
|
(3,588 |
) |
|
|
(0.17 |
) |
Net earnings attributable to |
|
$ |
66,034 |
|
|
$ |
3.18 |
|
|
$ |
316,926 |
|
|
$ |
14.98 |
|
Average shares outstanding (000s) - diluted |
|
|
|
|
|
20,764 |
|
|
|
|
|
|
21,159 |
|
We previously presented non-GAAP financial measures adjusted for Prospera intangible asset amortization and stock-based compensation recognized for the Prospera employees to provide investors with a better understanding of Agriculture segment performance related to traditional segment products. The Company conducted its annual impairment testing of intangible asset value as of
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Thirteen |
|
|
|
|
Fifty-two |
|
|
|
||||
|
|
weeks ended |
|
Diluted |
|
weeks ended |
|
Diluted |
||||||
|
|
December |
|
earnings per |
|
December |
|
earnings per |
||||||
|
|
30, 2023 |
|
share1 |
|
30, 2023 |
|
|
share1 |
|||||
Net earnings attributable to |
|
$ |
66,034 |
|
$ |
3.18 |
|
$ |
316,926 |
|
|
$ |
14.98 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
— |
|
|
3,290 |
|
|
|
0.16 |
|
Prospera stock-based compensation |
|
|
— |
|
|
— |
|
|
4,278 |
|
|
|
0.20 |
|
Tax effect of adjustments2 |
|
|
— |
|
|
— |
|
|
(1,092 |
) |
|
|
(0.05 |
) |
Net earnings attributable to |
|
$ |
66,034 |
|
$ |
3.18 |
|
$ |
323,402 |
|
|
$ |
15.28 |
|
Average shares outstanding (000s) - diluted |
|
|
|
|
|
20,764 |
|
|
|
|
|
21,159 |
|
1Earnings per share includes rounding
|
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(Unaudited)
The non-GAAP tables below disclose the impacts of the loss from the divestiture of the offshore wind energy structures business, intangible asset amortization (Prospera), and stock-based compensation recognized for the Prospera employees on net earnings for fiscal 2022 results. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings to be taken into consideration by management and investors with the related reported GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Fourteen |
|
|
|
|
Fifty-three |
|
|
|
||||||
|
|
weeks ended |
|
Diluted |
|
weeks ended |
|
Diluted |
||||||||
|
|
December |
|
earnings per |
|
December |
|
earnings per |
||||||||
|
|
31, 2022 |
|
|
share1 |
|
31, 2022 |
|
|
share1 |
||||||
Net earnings attributable to |
|
$ |
40,332 |
|
|
$ |
1.86 |
|
|
$ |
250,863 |
|
|
$ |
11.62 |
|
Loss from divestiture of offshore wind energy structures business |
|
|
33,273 |
|
|
|
1.54 |
|
|
|
33,273 |
|
|
|
1.54 |
|
Prospera intangible asset amortization |
|
|
1,645 |
|
|
|
0.08 |
|
|
|
6,580 |
|
|
|
0.30 |
|
Prospera stock-based compensation |
|
|
2,373 |
|
|
|
0.11 |
|
|
|
9,896 |
|
|
|
0.46 |
|
Total adjustments, pre-tax |
|
|
37,291 |
|
|
|
1.72 |
|
|
|
49,749 |
|
|
|
2.31 |
|
Tax effect of adjustments2 |
|
|
(367 |
) |
|
|
(0.02 |
) |
|
|
(2,473 |
) |
|
|
(0.11 |
) |
Net earnings attributable to |
|
$ |
77,256 |
|
|
$ |
3.57 |
|
|
$ |
298,139 |
|
|
$ |
13.82 |
|
Average shares outstanding (000s) - diluted |
|
|
|
|
|
21,656 |
|
|
|
|
|
|
21,580 |
|
1Earnings per share includes rounding |
2The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction. |
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(Unaudited)
The non-GAAP tables below disclose the impacts of the impairment of long-lived assets, realignment charges, and non-recurring charges associated with major scope changes for two strategic projects initiated by departed senior leadership on fiscal 2023 results. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted operating income (loss) to be taken into consideration by management and investors with the related reported GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended |
|
|||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Consolidated |
||||||
Operating income (loss) - as reported |
|
$ |
82,550 |
|
$ |
13,946 |
|
$ |
(32,948 |
) |
|
$ |
63,548 |
|
Realignment charges |
|
|
16,191 |
|
|
8,194 |
|
|
6,645 |
|
|
|
31,030 |
|
Other non-recurring charges |
|
|
— |
|
|
5,626 |
|
|
— |
|
|
|
5,626 |
|
Adjusted operating income (loss) |
|
$ |
98,741 |
|
$ |
27,766 |
|
$ |
(26,303 |
) |
|
$ |
100,204 |
|
Net sales - as reported |
|
|
745,713 |
|
|
269,813 |
|
|
— |
|
|
|
1,015,526 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as a % of net sales |
|
|
11.1 |
% |
|
5.2 |
% |
|
NM |
|
|
|
6.3 |
% |
Adj. operating inc. (loss) as a % of net sales |
|
|
13.2 |
% |
|
10.3 |
% |
|
NM |
|
|
|
9.9 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-two weeks ended |
|
|||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Consolidated |
||||||
Operating income (loss) - as reported |
|
$ |
396,253 |
|
$ |
16,850 |
|
$ |
(121,546 |
) |
|
$ |
291,557 |
|
Impairment of long-lived assets |
|
|
3,571 |
|
|
137,273 |
|
|
— |
|
|
|
140,844 |
|
Realignment charges |
|
|
17,260 |
|
|
9,101 |
|
|
8,849 |
|
|
|
35,210 |
|
Other non-recurring charges |
|
|
— |
|
|
5,626 |
|
|
— |
|
|
|
5,626 |
|
Adjusted operating income (loss) |
|
$ |
417,084 |
|
$ |
168,850 |
|
$ |
(112,697 |
) |
|
$ |
473,237 |
|
Net sales - as reported |
|
|
2,999,637 |
|
|
1,174,961 |
|
|
— |
|
|
|
4,174,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as a % of net sales |
|
|
13.2 |
% |
|
1.4 |
% |
|
NM |
|
|
|
7.0 |
% |
Adj. operating inc. (loss) as a % of net sales |
|
|
13.9 |
% |
|
14.4 |
% |
|
NM |
|
|
|
11.3 |
% |
We previously presented non-GAAP financial measures adjusted for Prospera intangible asset amortization and stock-based compensation recognized for the Prospera employees to provide investors with a better understanding of Agriculture segment performance related to traditional segment products. The Company conducted its annual impairment testing of intangible asset value as of
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-two weeks ended |
|
|||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Consolidated |
||||||
Adjusted operating income (loss) |
|
$ |
417,084 |
|
$ |
168,850 |
|
$ |
(112,697 |
) |
|
$ |
473,237 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
3,290 |
|
|
— |
|
|
|
3,290 |
|
Prospera stock-based compensation |
|
|
— |
|
|
4,278 |
|
|
— |
|
|
|
4,278 |
|
Further adjusted operating income (loss) |
|
$ |
417,084 |
|
$ |
176,418 |
|
$ |
(112,697 |
) |
|
$ |
480,805 |
|
Net sales - as reported |
|
|
2,999,637 |
|
|
1,174,961 |
|
|
— |
|
|
|
4,174,598 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adj. operating inc. (loss) as a % of net sales |
|
|
13.9 |
% |
|
14.4 |
% |
|
NM |
|
|
|
11.3 |
% |
Further adj. oper. inc. (loss) as a % of net sales |
|
|
13.9 |
% |
|
15.0 |
% |
|
NM |
|
|
|
11.5 |
% |
NM = not meaningful |
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(Unaudited)
The non-GAAP tables below disclose the impacts of the intangible asset amortization (Prospera) and stock-based compensation recognized for the Prospera employees on 2022 results. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted operating income (loss) to be taken into consideration by management and investors with the related reported GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourteen weeks ended |
|
||||||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Other |
|
Corporate |
|
Consolidated |
|||||||
Operating income (loss) - as reported |
|
$ |
99,591 |
|
$ |
40,484 |
|
$ |
1,445 |
|
$ |
(31,804 |
) |
|
$ |
109,716 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
1,645 |
|
|
— |
|
|
— |
|
|
|
1,645 |
|
Prospera stock-based compensation |
|
|
— |
|
|
2,373 |
|
|
— |
|
|
— |
|
|
|
2,373 |
|
Adjusted operating income (loss) |
|
$ |
99,591 |
|
$ |
44,502 |
|
$ |
1,445 |
|
$ |
(31,804 |
) |
|
$ |
113,734 |
|
Net sales - as reported |
|
|
765,077 |
|
|
333,167 |
|
|
33,272 |
|
|
— |
|
|
|
1,131,516 |
|
Adjusted net sales |
|
|
765,077 |
|
|
333,167 |
|
|
— |
|
|
— |
|
|
|
1,098,244 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as a % of net sales |
|
|
13.0 |
% |
|
12.2 |
% |
|
4.3 |
% |
|
NM |
|
|
|
9.7 |
% |
Adj. operating inc. (loss) as a % of net sales |
|
|
13.0 |
% |
|
13.4 |
% |
|
4.3 |
% |
|
NM |
|
|
|
10.1 |
% |
Adj. operating inc. (loss) as a % of adj. net sales |
|
|
13.0 |
% |
|
13.4 |
% |
|
NM |
|
|
NM |
|
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fifty-three weeks ended |
|
||||||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Other |
|
Corporate |
|
Consolidated |
|||||||
Operating income (loss) - as reported |
|
$ |
354,499 |
|
$ |
179,263 |
|
$ |
2,259 |
|
$ |
(102,772 |
) |
|
$ |
433,249 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
6,580 |
|
|
— |
|
|
— |
|
|
|
6,580 |
|
Prospera stock-based compensation |
|
|
— |
|
|
9,896 |
|
|
— |
|
|
— |
|
|
|
9,896 |
|
Adjusted operating income (loss) |
|
$ |
354,499 |
|
$ |
195,739 |
|
$ |
2,259 |
|
$ |
(102,772 |
) |
|
$ |
449,725 |
|
Net sales - as reported |
|
|
2,909,746 |
|
|
1,335,285 |
|
|
100,219 |
|
|
— |
|
|
|
4,345,250 |
|
Adjusted net sales |
|
|
2,909,746 |
|
|
1,335,285 |
|
|
— |
|
|
— |
|
|
|
4,245,031 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income (loss) as a % of net sales |
|
|
12.2 |
% |
|
13.4 |
% |
|
2.3 |
% |
|
NM |
|
|
|
10.0 |
% |
Adj. operating inc. (loss) as a % of net sales |
|
|
12.2 |
% |
|
14.7 |
% |
|
2.3 |
% |
|
NM |
|
|
|
10.3 |
% |
Adj. operating inc. (loss) as a % of adj. net sales |
|
|
12.2 |
% |
|
14.7 |
% |
|
NM |
|
|
NM |
|
|
|
10.6 |
% |
NM = not meaningful |
REGULATION G RECONCILIATION OF EXCLUDING OTHER SEGMENT
(Dollars in thousands)
(Unaudited)
Excluding Other segment net sales from the fourth quarter and fiscal year ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
13 and 14 Weeks Ended |
|
|
|
|
52 and 53 Weeks Ended |
|
|
|
||||||||||||
|
|
|
|
|
|
Percent |
|
|
|
|
|
Percent |
||||||||||
|
|
2023 |
|
2022 |
|
|
Change |
|
2023 |
|
2022 |
|
|
Change |
||||||||
Net sales |
|
$ |
1,015,526 |
|
$ |
1,131,516 |
|
|
|
(10.3 |
)% |
|
$ |
4,174,598 |
|
$ |
4,345,250 |
|
|
|
(3.9 |
)% |
Less: Other segment net sales |
|
|
— |
|
|
(33,272 |
) |
|
|
NM |
|
|
|
— |
|
|
(100,219 |
) |
|
|
NM |
|
Adjusted net sales |
|
$ |
1,015,526 |
|
$ |
1,098,244 |
|
|
|
(7.5 |
)% |
|
$ |
4,174,598 |
|
$ |
4,245,031 |
|
|
|
(1.7 |
)% |
NM = not meaningful |
REGULATION G RECONCILIATION OF ADJUSTED RETURN ON INVESTED CAPITAL
(Dollars in thousands)
(Unaudited)
Return on
|
|
|
|
|
|
|
Fifty-two |
||
|
|
weeks ended |
||
|
|
|
||
|
|
2023 |
||
Operating income |
|
$ |
291,557 |
|
Effective tax rate |
|
|
38.1 |
% |
Tax effect on operating income |
|
|
(111,124 |
) |
After-tax operating income |
|
|
180,433 |
|
Average invested capital |
|
|
2,504,474 |
|
Return on invested capital |
|
|
7.2 |
% |
|
|
|
|
|
Operating income |
|
|
291,557 |
|
Impairment of long-lived assets |
|
|
140,844 |
|
Realignment charges |
|
|
35,210 |
|
Other non-recurring charges |
|
|
5,626 |
|
Adjusted operating income |
|
|
473,237 |
|
Adjusted effective tax rate1 |
|
|
25.9 |
% |
Tax effect on adjusted operating income |
|
|
(122,665 |
) |
After-tax adjusted operating income |
|
|
350,572 |
|
Average invested capital |
|
|
2,504,474 |
|
Adjusted return on invested capital |
|
|
14.0 |
% |
|
|
|
|
|
|
|
|
||
|
|
2023 |
||
Total assets |
|
|
3,477,448 |
|
Less: Accounts payable |
|
|
(358,311 |
) |
Less: Accrued expenses |
|
|
(277,764 |
) |
Less: Defined benefit pension asset |
|
|
(15,404 |
) |
Less: Deferred compensation |
|
|
(32,623 |
) |
Less: Other noncurrent liabilities |
|
|
(12,818 |
) |
Less: Dividends payable |
|
|
(12,125 |
) |
Less: Lease liability |
|
|
(162,743 |
) |
Less: Contract liability |
|
|
(70,978 |
) |
Less: Deferred tax liability |
|
|
(21,205 |
) |
Total invested capital |
|
$ |
2,513,477 |
|
Beginning of year invested capital |
|
$ |
2,495,471 |
|
Average invested capital |
|
$ |
2,504,474 |
|
1See Regulation G Reconciliation of Adjusted Effective Tax Rate |
ROIC and Adjusted ROIC, as presented, may not be comparable to similarly titled measures of other companies. |
REGULATION G RECONCILIATION OF ADJUSTED EFFECTIVE TAX RATE
(Dollars in thousands)
(Unaudited)
Excluding significant non-recurring items from the fourth quarter and fiscal year ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||
|
|
Thirteen weeks ended |
|
Fifty-two weeks ended |
||||||||||||||||
|
|
|
|
|
||||||||||||||||
|
|
Earnings before
|
|
Income
|
|
Effective
|
|
Earnings before
|
|
Income
|
|
Effective
|
||||||||
As reported |
|
$ |
45,166 |
|
$ |
10,882 |
|
|
24.1 |
% |
|
$ |
236,452 |
|
$ |
90,121 |
|
|
38.1 |
% |
Impairment of long-lived assets |
|
|
— |
|
|
— |
|
|
|
|
|
140,844 |
|
|
4,387 |
|
|
|
||
Realignment charges |
|
|
31,030 |
|
|
7,675 |
|
|
|
|
|
35,210 |
|
|
8,720 |
|
|
|
||
Other non-recurring charges |
|
|
5,626 |
|
|
1,443 |
|
|
|
|
|
5,626 |
|
|
1,443 |
|
|
|
||
Loss from Argentine peso hyperinflation |
|
|
5,132 |
|
|
1,453 |
|
|
|
|
|
5,132 |
|
|
1,453 |
|
|
|
||
Non-recurring tax benefit items |
|
|
— |
|
|
— |
|
|
|
|
|
— |
|
|
3,588 |
|
|
|
||
Adjusted |
|
$ |
86,954 |
|
$ |
21,453 |
|
|
24.7 |
% |
|
$ |
423,264 |
|
$ |
109,712 |
|
|
25.9 |
% |
REGULATION G RECONCILIATION OF FREE CASH FLOW
(Dollars in thousands)
(Unaudited)
We use the non-GAAP measure of free cash flow, which we define as net cash flows provided by operating activities reduced by the purchase of property, plant, and equipment. We believe that free cash flow is a useful performance measure for management and useful to investors as the basis for comparing our performance with other companies. Our measure of free cash flow may not be directly comparable to similar measures used by other companies.
|
|
|
|
|
|
|
Fifty-two |
||
|
|
weeks ended |
||
|
|
|
||
|
|
2023 |
|
|
Net cash flows provided by operating activities |
|
$ |
306,775 |
|
Net cash flows used in investing activities |
|
|
(115,281 |
) |
Net cash flows used in financing activities |
|
|
(176,405 |
) |
|
|
|
|
|
Net cash flows provided by operating activities |
|
$ |
306,775 |
|
Purchase of property, plant, and equipment |
|
|
(96,771 |
) |
Free cash flow |
|
$ |
210,004 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240221852269/en/
renee.campbell@valmont.com
Source: