ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024
Highlights for the Quarter
-
Record net sales of
$425.6 million , up 3.4%-
Industrial Equipment net sales of
$201.8 million , up 29.9% -
Vegetation Management net sales of
$223.7 million , down 12.7%
-
Industrial Equipment net sales of
-
Income from operations of
$47.0 million , 11.0% of net sales -
Net income of
$32.1 million -
First quarter EPS of
$2.67 per share -
Trailing twelve-month EBITDA of
$246.2 million , stable versus record year-end 2023(1) -
Total debt net of cash improved
$62.2 million or 23.8% compared to first quarter 2023(1) -
Backlog remained elevated at
$831.3 million at the end of the first quarter 2024
Results for the Quarter
Record first quarter 2024 net sales of
Net income was
Comments on Results
"We were very pleased that our Industrial Equipment Division had another outstanding quarter marked by sharply higher sales and improved efficiencies. This Division's order bookings were 25% higher than the first quarter of 2023 and the increase was consistent across all the Division's product lines. Industrial Equipment order backlog increased by 17% to nearly
"
"Supply chain performance broadly continued to improve during the quarter although challenges persisted in a few areas such as truck chassis frames, transmissions, other truck components and certain types of hydraulic equipment. More positively, prices for purchased components stabilized and purchased material cost variances moderated during the first quarter. Prices for some of the specialty steels we use to produce our products have returned to levels last recorded in the first quarter of 2021.
"Given the mixed market conditions we experienced in the first quarter, we were pleased with the results reported today. As we expected, substantially improved performance in Industrial Equipment largely offset the impact of the headwinds in Vegetation Management. Our outlook for the balance of 2024 is, however, somewhat more cautious than it was when we reported results for the fourth quarter of 2023, given the uncertain interest rate environment. While this is not expected to impact the positive momentum and favorable results from our Industrial Equipment Division, it will likely prolong the current headwinds in Vegetation Management for the balance of the year and delay the anticipated correction in channel inventory. We will therefore continue to take determined actions to defend operating margin for the balance of 2024. We also believe that the Company's results for the first quarter nicely highlight the strength of our brands, the resilience of our broad product portfolio and the diverse markets we serve. We remain focused on efficiently executing our long-term strategy, and therefore remain optimistic about the Company's future prospects."
Earnings Conference Call
The Company will host a conference call to discuss the results on
Individuals wishing to participate in the conference call should dial (877) 317-6789 (domestic) or (412) 317-6789 (international). For interested individuals unable to join the call, a replay will be available until
The live broadcast of
About
Forward Looking Statements
This release contains forward-looking statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties, which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following:
adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints, increasing costs due to inflation, disease outbreaks, geopolitical risks, including effects of the war in the
(Tables Follow)
(1) This is a non-GAAP financial measure or other information relating to our GAAP financial measures that we have provided to investors in order to allow greater transparency and a deeper understanding of our financial condition and operating results. For a reconciliation of the non-GAAP financial measure or for a more detailed explanation of financial results, refer to "Non-GAAP Financial Measure Reconciliation" below and the Attachments thereto.
Condensed Consolidated Balance Sheets (in thousands) (Unaudited) |
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ASSETS |
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Current assets: |
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Cash and cash equivalents |
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$ 121,802 |
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$ 109,320 |
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Accounts receivable, net |
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392,940 |
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363,525 |
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Inventories |
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384,488 |
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362,593 |
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Other current assets |
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16,301 |
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9,978 |
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Total current assets |
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915,531 |
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845,416 |
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Rental equipment, net |
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43,102 |
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36,125 |
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Property, plant and equipment |
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164,810 |
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158,388 |
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205,452 |
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196,533 |
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Intangible assets |
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163,909 |
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167,832 |
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Other non-current assets |
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26,616 |
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24,918 |
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Total assets |
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$ 1,519,420 |
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$ 1,429,212 |
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LIABILITIES AND STOCKHOLDERS' EQUITY |
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Current liabilities: |
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Trade accounts payable |
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$ 103,409 |
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$ 101,549 |
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Income taxes payable |
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17,596 |
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14,801 |
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Accrued liabilities |
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77,349 |
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72,890 |
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Current maturities of long-term debt and finance lease obligations |
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15,008 |
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15,008 |
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Total current liabilities |
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213,362 |
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204,248 |
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Long-term debt, net of current maturities |
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306,525 |
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356,259 |
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Long-term tax liability |
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2,633 |
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|
3,781 |
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Other long-term liabilities |
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24,335 |
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23,628 |
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Deferred income taxes |
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16,009 |
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18,948 |
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Total stockholders' equity |
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956,556 |
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822,348 |
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Total liabilities and stockholders' equity |
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$ 1,519,420 |
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$ 1,429,212 |
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Alamo Group Inc. and Subsidiaries Condensed Consolidated Statements of Income (in thousands, except per share amounts) (Unaudited) |
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Three Months Ended |
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Net sales: |
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Vegetation Management |
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$ 223,747 |
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$ 256,435 |
Industrial Equipment |
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201,839 |
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155,336 |
Total net sales |
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425,586 |
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411,771 |
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Cost of sales |
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313,954 |
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299,264 |
Gross margin |
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111,632 |
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112,507 |
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26.2 % |
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27.3 % |
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Selling, general and administration expense |
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60,594 |
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59,668 |
Amortization expense |
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4,059 |
|
3,815 |
Income from operations |
|
46,979 |
|
49,024 |
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11.0 % |
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11.9 % |
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Interest expense |
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(6,091) |
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(5,940) |
Interest income |
|
801 |
|
383 |
Other income (expense) |
|
98 |
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1,002 |
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Income before income taxes |
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41,787 |
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44,469 |
Provision for income taxes |
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9,667 |
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11,120 |
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Net Income |
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$ 32,120 |
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$ 33,349 |
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Net income per common share: |
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Basic |
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$ 2.69 |
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$ 2.80 |
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Diluted |
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$ 2.67 |
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$ 2.79 |
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Average common shares: |
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Basic |
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11,944 |
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11,899 |
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Diluted |
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12,020 |
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11,962 |
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Non-GAAP Financial Measures Reconciliation
From time to time,
Attachment 1 discloses a non-GAAP financial presentation related to the impact of currency translation on net sales by division. Attachment 2 shows the net change in our total debt net of cash and earnings before interest, taxes, depreciation and amortization ("EBITDA") which is a non-GAAP financial measure. The Company considers this information useful to investors to allow better comparability of period-to-period operating performance. Attachment 3 reflects Division performance inclusive of non-GAAP financial measures such as backlog and earnings before interest, tax, depreciation and amortization ("EBITDA").
Attachment 1
Non-GAAP Financial Reconciliation (in thousands) (Unaudited)
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Impact of Currency Translation on |
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Three Months Ended
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Change due to currency |
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2024 |
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2023 |
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% change |
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$ |
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% |
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Vegetation Management |
$ 223,747 |
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$ 256,435 |
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(12.7) % |
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$ 2,200 |
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0.9 % |
Industrial Equipment |
201,839 |
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155,336 |
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29.9 % |
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269 |
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0.2 % |
Total net sales |
$ 425,586 |
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$ 411,771 |
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3.4 % |
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$ 2,469 |
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0.6 % |
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Attachment 2
Non-GAAP Financial Reconciliation (in thousands) (Unaudited)
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Consolidated Net Change of Total Debt, Net of Cash |
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Net Change |
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Current maturities |
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$ 15,008 |
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$ 15,008 |
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Long-term debt,net of current |
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306,525 |
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356,259 |
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Total debt |
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$ 321,533 |
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$ 371,267 |
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Total cash |
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121,802 |
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109,320 |
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Total Debt Net of Cash |
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$ 199,731 |
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$ 261,947 |
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$ (62,216) |
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EBITDA |
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Three Months Ended |
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Trailing Twelve Months Ended |
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Income from operations |
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$ 46,979 |
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$ 49,024 |
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$ 195,922 |
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$ 197,967 |
Depreciation |
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8,935 |
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7,626 |
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33,763 |
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32,454 |
Amortization |
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4,235 |
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3,991 |
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16,466 |
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16,222 |
EBITDA |
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$ 60,149 |
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$ 60,641 |
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$ 246,151 |
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$ 246,643 |
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Attachment 3
Non-GAAP Financial Reconciliation (in thousands) (Unaudited)
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Vegetation Management Division Performance |
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Three Months Ended
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2024 |
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2023 |
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Backlog |
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$ 271,805 |
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$ 517,958 |
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223,747 |
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256,435 |
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Income from Operations |
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21,679 |
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36,508 |
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9.7 % |
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14.2 % |
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Depreciation |
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4,333 |
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3,591 |
Amortization |
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3,043 |
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3,039 |
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EBITDA |
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29,055 |
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43,138 |
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13.0 % |
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16.8 % |
Industrial Equipment Division Performance |
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Three Months Ended
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2024 |
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2023 |
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Backlog |
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$ 559,497 |
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$ 476,832 |
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201,839 |
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155,336 |
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Income from Operations |
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25,300 |
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12,516 |
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12.5 % |
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8.1 % |
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Depreciation |
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4,602 |
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4,035 |
Amortization |
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1,192 |
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952 |
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EBITDA |
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31,094 |
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17,503 |
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15.4 % |
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11.3 % |
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