Financial Data and Key Metrics Changes - First quarter consolidated net sales reached $425.6 million, a 3% increase from $411.8 million in the same quarter last year [10] - Gross margin percentage decreased by 110 basis points, with gross margin dollars down by just under $900,000 compared to Q1 2023 [10] - Operating margin for Q1 was $47 million, down 4% from $49 million in Q1 2023, with operating margin as a percentage of sales at 11% compared to 12% last year [11] - Consolidated net income for Q1 was $32.1 million or $2.67 per diluted share, a decrease of 4% from $33.3 million or $2.79 per diluted share in Q1 2023 [11] Business Line Data and Key Metrics Changes - Vegetation Management division net sales were $223.7 million, a 13% decrease from $256.4 million in Q1 2023, with operating income down 40% to $21.7 million [12] - Industrial Equipment division net sales surged to $201.8 million, a 30% increase from $155.3 million in Q1 2023, with operating income rising over 102% to $25.3 million [12][13] - The backlog at the end of Q1 2024 was just over $831 million, down 16% from the same period last year but still considered healthy [13] Market Data and Key Metrics Changes - The agricultural equipment market faced challenges with a 5% expected decline in inflation-adjusted US net cash farm income for 2024 [19] - US two-wheel drive tractor sales were down 13.4% compared to Q1 2023, with specific declines in various horsepower classes [19] - Vegetation Management backlog declined by about 48%, primarily due to fewer new orders and cancellations [20] Company Strategy and Development Direction - The company aims to maintain a 10% operating margin in the Vegetation Management division despite market challenges [32][62] - Focus on reducing costs and simplifying operations through facility consolidations and capacity adjustments as needed [26] - The company is optimistic about its M&A pipeline, with more actionable opportunities than in previous years [26] Management's Comments on Operating Environment and Future Outlook - Management noted that the headwinds in Vegetation Management are expected to persist until inventory levels decline and interest rates are reduced [25] - The outlook for the second quarter and the remainder of 2024 anticipates continued sales growth, albeit at a more modest pace [26] - Governmental markets remain strong, with state revenues not declining as previously forecasted, supporting continued investment [22][67] Other Important Information - The company approved a quarterly dividend of $0.26 per share, a 15% increase from $0.22 per share in Q1 2023 [15] - Supply chain performance improved, although challenges remain with truck chassis deliveries and component shortages [24] Q&A Session Summary Question: Vegetation EBIT margin outlook - Management expressed confidence in maintaining around the 10% level for the balance of 2024 despite market conditions [30][32] Question: Lead times in Industrial Equipment - Lead times have normalized to about 120 days for larger equipment, with optimism about chassis deliveries improving [34] Question: Health of dealer network - No significant pressure on accounts receivable was noted, and dealers are cautiously managing inventory [44] Question: Competition from a larger machinery player - Management is not concerned about competition, citing strong dealer loyalty and the longevity of their products [46] Question: Contribution from acquisitions - The revenue contribution from acquisitions in the quarter was approximately $15 million [47] Question: Revenue growth expectations - High single-digit revenue growth is expected for the Industrial Equipment division for the remainder of the year [52] Question: Vegetation Management production outlook - Future revenue in Vegetation Management will depend on order flow, with a stable backlog expected to support revenue levels [60] Question: Government funding sustainability - Strong governmental finances are expected to continue supporting orders through 2024, with potential tapering in 2025 [67]

PART I [Interim Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) Alamo Group's Q1 2024 saw net sales increase to $425.6 million, while net income decreased to $32.1 million, with total assets growing to $1.52 billion [Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) Total assets increased to $1.52 billion as of March 31, 2024, driven by higher cash and receivables, with stockholders' equity reaching $956.6 million Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $915,531 | $803,957 | | Cash and cash equivalents | $121,802 | $51,919 | | **Total Assets** | **$1,519,420** | **$1,409,386** | | **Total Current Liabilities** | $213,362 | $213,926 | | Long-term debt and finance lease obligations | $306,525 | $220,269 | | **Total Stockholders' Equity** | **$956,556** | **$932,763** | [Consolidated Statements of Income](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Income) Q1 2024 net sales rose 3.3% to $425.6 million, driven by Industrial Equipment, though income from operations and net income decreased to $47.0 million and $32.1 million respectively Q1 2024 vs. Q1 2023 Income Statement (in thousands, except per share data) | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Total Net Sales** | **$425,586** | **$411,771** | | Gross Profit | $111,632 | $112,507 | | Income from Operations | $46,979 | $49,024 | | **Net Income** | **$32,120** | **$33,349** | | Diluted EPS | $2.67 | $2.79 | - The increase in total net sales was driven by a **30% rise in the Industrial Equipment segment**, while the Vegetation Management segment saw a **13% decrease in sales**[11](index=11&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Net cash from operations was $1.1 million in Q1 2024, with financing activities providing $77.8 million, leading to an ending cash balance of $121.8 million Cash Flow Summary (in thousands) | Activity | Three Months Ended March 31, 2024 | Three Months Ended March 31, 2023 | | :--- | :--- | :--- | | Net cash provided by operating activities | $1,124 | $1,206 | | Net cash used in investing activities | ($5,904) | ($6,466) | | Net cash provided by financing activities | $77,792 | $66,773 | | **Net change in cash and cash equivalents** | **$69,883** | **$62,304** | | Cash and cash equivalents at end of period | $121,802 | $109,320 | [Notes to Financial Statements](index=9&type=section&id=Notes%20to%20Interim%20Condensed%20Consolidated%20Financial%20Statements) Notes detail accounting policies, Royal Truck acquisition allocation, inventory and debt specifics, and disaggregated revenue, confirming Industrial Equipment's strong segment performance - The company completed its review of the purchase price allocation for the Royal Truck & Equipment, Inc. acquisition during Q1 2024. Royal Truck was acquired on October 10, 2023, for approximately **$32 million**[25](index=25&type=chunk) Net Sales by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Vegetation Management | $223,747 | $256,435 | | Industrial Equipment | $201,839 | $155,336 | | **Consolidated** | **$425,586** | **$411,771** | Income from Operations by Segment (in thousands) | Segment | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | Vegetation Management | $21,679 | $36,508 | | Industrial Equipment | $25,300 | $12,516 | | **Consolidated** | **$46,979** | **$49,024** | - As of March 31, 2024, the company had total debt of **$321.5 million**, up from **$235.3 million** at year-end 2023, with **$307.4 million** available for borrowing under its revolving credit facility[40](index=40&type=chunk) [Management's Discussion and Analysis (MD&A)](index=16&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) MD&A highlights a 3% Q1 2024 net sales increase driven by industrial equipment, offset by vegetation management weakness, leading to a gross margin decline and a 4% net income decrease, with backlog at $831.3 million - Overall Q1 2024 net sales increased by **3%**, but net income decreased by **4%** compared to Q1 2023[53](index=53&type=chunk) - The company's backlog at the end of Q1 2024 was **$831.3 million**, down **16%** from **$994.8 million** at the end of Q1 2023[55](index=55&type=chunk) - Supply chain performance has broadly improved, but disruptions related to chassis frames, transmissions, and hydraulics continue to negatively impact performance[56](index=56&type=chunk) [Results of Operations](index=17&type=section&id=Results%20of%20Operations) Q1 2024 net sales increased 3% to $425.6 million, driven by a 30% rise in Industrial Equipment sales, while gross profit margin contracted to 26% and net income fell to $32.1 million Q1 2024 vs Q1 2023 Segment Sales Change | Segment | Change | Reason | | :--- | :--- | :--- | | Vegetation Management | -13% | Weaker demand for forestry, tree care, and agricultural mowing products | | Industrial Equipment | +30% | Strong results in all product lines, especially excavators, vacuum trucks, and safety equipment | - Gross profit margin decreased from **27% to 26%** of net sales, primarily due to the weaker mix between divisions and production inefficiencies from lower volume in Vegetation Management[59](index=59&type=chunk) - The effective tax rate decreased to **23%** in Q1 2024 from **25%** in Q1 2023, largely due to a favorable research and development tax settlement with the Brazilian government[62](index=62&type=chunk) [Liquidity and Capital Resources](index=18&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased to $702.2 million, with Q1 capital expenditures at $6.7 million and full-year forecast of $35-45 million, while $307.4 million remains available under the credit facility - Working capital increased to **$702.2 million** at March 31, 2024, up from **$590.0 million** at December 31, 2023[64](index=64&type=chunk) - The company expects full-year 2024 capital expenditures to be between **$35.0 million and $45.0 million**[65](index=65&type=chunk) - As of March 31, 2024, the company had **$116.0 million** in cash held by foreign subsidiaries, primarily in Europe and Canada, which it plans to continue repatriating[66](index=66&type=chunk) - The company was in compliance with all financial covenants under its 2022 Credit Agreement as of March 31, 2024[67](index=67&type=chunk) [Quantitative and Qualitative Disclosures About Market Risks](index=20&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company faces market risks from foreign currency fluctuations and variable interest rates on debt, utilizing hedging strategies and providing sensitivity analyses for these exposures - A uniform **10%** strengthening or weakening of the U.S. dollar relative to the currencies in which the company's sales are denominated would change gross profit by approximately **$3.6 million** for the three-month period[82](index=82&type=chunk) - A **two percentage point** change in the average interest rate on variable-rate borrowings would have changed the company's Q1 2024 interest expense by approximately **$1.6 million**[84](index=84&type=chunk) - The foreign currency translation adjustment for Q1 2024 decreased stockholders' equity by **$7.3 million**[81](index=81&type=chunk) [Controls and Procedures](index=21&type=section&id=Item%204.%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that disclosure controls and procedures were effective, with no material changes to internal control over financial reporting during the quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at the end of the quarter[85](index=85&type=chunk) - There were no material changes to the company's internal control over financial reporting during the quarter[86](index=86&type=chunk) PART II. OTHER INFORMATION [Other Information](index=21&type=section&id=Item%201.%20Legal%20Proceedings) The company reports no material changes to legal proceedings or risk factors from its 2023 Form 10-K, with no unregistered equity sales, senior security defaults, or Form 8-K filings - There have not been any material changes from the risk factors previously disclosed in the 2023 Form 10-K[86](index=86&type=chunk) - The company reports no material updates to legal proceedings, no unregistered sales of equity, and no defaults on senior securities[86](index=86&type=chunk)[87](index=87&type=chunk) - No reports on Form 8-K were filed during the quarter[88](index=88&type=chunk)

For: Alamo Group Inc. Contact: Agnes Kamps Executive Vice President & CFO 830-372-9615 Financial Relations Board Joe Calabrese 212-827-3772 ALAMO GROUP ANNOUNCES FINANCIAL RESULTS FOR THE FIRST QUARTER OF 2024 SEGUIN, Texas, May 2, 2024 -- Alamo Group Inc. (NYSE: ALG) today reported results for the first quarter ended March 31, 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. ...

Group 1 - Alamo Group Inc. subsidiary Gradall Industries LLC's unionized workers have elected to strike due to failed labor agreement negotiations, involving approximately 200 workers from the International Association of Machinists and Aerospace Workers [1] - The company is committed to negotiating in good faith with union leaders to reach a new labor agreement and restore normal operations [1] Group 2 - Alamo Group is a leader in the design, manufacture, distribution, and service of high-quality equipment for infrastructure maintenance, agriculture, and other applications [2] - The company was founded in 1969 and has approximately 4,350 employees, operating 29 plants across North America, Europe, Australia, and Brazil as of December 31, 2023 [2]

SEGUIN, Texas, April 1, 2024 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) announced today that its Board of Directors has declared its quarterly dividend of $0.26 per share. Payment will be made on April 29, 2024, to shareholders of record at the close of business on April 16, 2024. About Alamo GroupAlamo Group is a leader in the design, manufacture, distribution, and service of high-quality equipment for vegetation management, infrastructure maintenance and other applications. Our products include truck an ...

SEGUIN, Texas, March 6, 2024 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today announced that Richard J. Wehrle, Executive Vice President, Chief Financial Officer and Treasurer, will retire from the Company on May 3, 2024.  Ms. Agnes Kamps joined the Company as Executive Vice-President on March 6, 2024, and will take on the duties of Company Treasurer immediately.  Upon Mr. Wehrle's retirement, Ms. Kamps will succeed Mr. Wehrle as the Company's Chief Financial Officer.  Ms. Kamps joins the Company from Ame ...

Alamo Group Inc. (NYSE:ALG) Q4 2023 Earnings Conference Call February 23, 2024 10:00 AM ET Company Participants Edward Rizzuti - Executive Vice President, General Counsel & Secretary Jeff Leonard - President & Chief Executive Officer Richard Wehrle - Executive Vice President, Chief Financial Officer & Treasurer Conference Call Participants Mig Dobre - Baird Chris Moore - CJS Securities Mike Shlisky - D.A. Davidson Tim Moore - EF Hutton Edward Rizzuti Jeff Leonard, President and Chief Executive Officer; and ...

SEGUIN, Texas, Feb. 22, 2024 /PRNewswire/ -- Alamo Group Inc. (NYSE: ALG) today announced that Roderick ("Rock") R. Baty will retire from the Board of Directors effective April 30, 2024. Mr. Baty joined the Board in August 2011 and has served in various capacities during his tenure. Mr. Baty was appointed Independent Board Chair on May 3, 2018. Upon Mr. Baty's retirement from the Board, current Board member, Richard ("Rick") W. Parod, will be appointed the new Independent Board Chair effective April 30, 202 ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 Form 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE YEAR ENDED DECEMBER 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission file number 0-21220 ALAMO GROUP INC. (Exact name of registrant as specified in its charter) Delaware 74-1621248 (State or other jurisdiction of (I.R.S. Employer incorporation or organization) Identificati ...

For: Alamo Group Inc. Contact: Richard Wehrle Executive Vice President & CFO 830-372-9615 Financial Relations Board Joe Calabrese 212-827-3772 ALAMO GROUP ANNOUNCES RECORD 2023 FOURTH QUARTER AND YEAR END RESULTS SEGUIN, Texas, February 22, 2024 -- Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2023. Highlights • Ninth consecutive quarterly record for sales and earnings • Fourth quarter net sales of $417.5 million, up 8% • Fourth quarter operating inco ...