Alamo Group Inc. (NYSE:ALG) Q2 2023 Earnings Conference Call August 3, 2023 9:00 AM ET Company Participants Edward Rizzuti - Investor Relations Jeff Leonard - President and Chief Executive Officer Richard Wehrle - Executive Vice President, Chief Financial Officer and Treasurer Dan Malone - Executive Vice President and Chief Sustainability Officer Conference Call Participants Chris Moore - CJS Securities Mike Shlisky - D.A. Davidson Tim Moore - EF Hutton Felix Boeschen - Raymond James Operator Good morning l ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE QUARTERLY PERIOD ENDED JUNE 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 FOR THE TRANSITION PERIOD FROM ____ TO ____ 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 in ...

Alamo Group Inc. (NYSE:ALG) Q1 2023 Earnings Conference Call May 5, 2023 10:00 AM ET Company Participants Edward Rizzuti - Investor Relations Jeff Leonard - President and Chief Executive Officer Richard Wehrle - Executive Vice President, Chief Financial Officer and Treasurer Dan Malone - Executive Vice President and Chief Sustainability Officer Conference Call Participants Mike Shlisky - D.A. Davidson Greg Burns - Sidoti & Company Chip Moore - EF Hutton Chris Moore - CJS Securities Operator Greetings and we ...

Financial Performance - For the first three months of 2023, the Company's net sales increased by 14% to $411.8 million compared to $362.0 million in the same period of 2022[48]. - Net income for the first quarter of 2023 rose by 81% to $33.3 million, or $2.79 per share, compared to $18.5 million, or $1.55 per share, in the first quarter of 2022[58]. - Gross profit for the first quarter of 2023 was $112.5 million, representing 27.3% of net sales, up from 23.9% in the same period of 2022[54]. - Consolidated income from operations increased by 68% to $49.0 million compared to $29.1 million in the first quarter of 2022[50]. Sales Performance - The Vegetation Management Division saw a 16% increase in sales to $256.4 million, driven by strong customer demand and pricing actions[49]. - The Industrial Equipment Division's sales increased by 10% to $155.3 million, with strong performance in street sweeper and debris collector products[50]. Backlog and Working Capital - The Company's backlog increased by 8% to $994.8 million at the end of the first quarter of 2023, up from $917.8 million at the end of the first quarter of 2022[50]. - Working capital as of March 31, 2023, was $641.2 million, an increase of $104.5 million from $536.7 million at December 31, 2022[60]. Capital Expenditures and Interest Expense - Capital expenditures for the first three months of 2023 were $9.0 million, compared to $4.4 million in the same period of 2022[61]. - Interest expense for the first quarter of 2023 was $5.9 million, up from $2.6 million in the same period of 2022, primarily due to higher interest rates[55]. Foreign Currency and Interest Rate Impact - The total foreign currency translation adjustment for the current quarter increased stockholders' equity by $4.5 million[79]. - A uniform 10% strengthening or 10% decrease in the value of the dollar relative to foreign currencies would result in a change in gross profit of $3.1 million for the three-month period ended March 31, 2023[80]. - A two percentage point change in average interest rates would have changed the Company's interest expense by approximately $1.9 million for the first quarter of 2023[81].

Financial Data and Key Metrics Changes - Fourth quarter consolidated net sales for 2022 were $386.6 million, an increase of 15% compared to $337.2 million in the fourth quarter of 2021 [8] - Consolidated net income for the fourth quarter of 2022 was $29.2 million or $2.44 per diluted share, an increase of 52% versus net income of $19.2 million or $1.62 per diluted share for the fourth quarter of 2021 [9] - Full year 2022 net sales were $1.5 billion, up 13% compared to $1.3 billion for the full year of 2021 [12] - Full year net income for 2022 was $101.9 million or $8.54 per diluted share, an increase of 27% compared to $80.2 million or $6.75 per diluted share for 2021 [12] Business Line Data and Key Metrics Changes - Vegetation Management division net sales for Q4 2022 were $232.5 million, up 14% from $204.3 million in Q4 2021, with operating income increasing 67% to $30.2 million [10] - Industrial Equipment division net sales in Q4 2022 were $154.1 million, up 16% from $132.8 million in Q4 2021, with operating income increasing 28% to $12.5 million [11] Market Data and Key Metrics Changes - The backlog at the end of 2022 was just over $1 billion, an increase of 26% compared to the backlog for the full year of 2021 [14] - Order bookings in Q4 were nearly $474 million, down less than 2% from the record established in Q4 2021, with a year-end order backlog nearly 26% higher than the prior year [22] Company Strategy and Development Direction - The company is focusing on improving supply chain performance, controlling costs, and increasing manufacturing capabilities to meet heightened demand [16][24] - Plans to introduce hybrid and fully electric versions of core products at the upcoming CONEXPO show [24] - The company is actively looking for larger M&A deals, particularly in Europe, to balance its portfolio [62] Management Comments on Operating Environment and Future Outlook - Management remains optimistic about the company's outlook for the coming months, with no signs of recession observed for at least the first half of 2023 [24] - The company is focused on achieving further improvements in supply chain performance and internal efficiencies [24] - Labor availability remains a concern, with ongoing initiatives to fill positions through apprenticeship programs and automation [64] Other Important Information - The company’s trailing 12-month EBITDA reached a record $196 million, up 21% compared to 2021 [15] - A 22% increase in the regular quarterly dividend to $0.22 per share was approved for Q1 2023 [16] Q&A Session Summary Question: What would be the factors affecting revenue growth in 2023? - Management indicated that continued supply chain improvements would significantly impact sales and profitability [27] Question: What is the outlook for the agricultural business? - Demand trends in agriculture have been surprisingly strong, with dealer inventories rising slightly viewed positively [36] Question: What is the status of price-cost dynamics? - Management confirmed that they have been able to offset inflation through price increases and improved operating efficiencies [41] Question: What is the company's appetite for M&A? - The company is actively looking for larger deals, particularly in Europe, to enhance its forestry and tree care business [62]

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, 2022 ☐ 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 ...

Alamo Group Inc. (NYSE:ALG) Q3 2022 Earnings Conference Call November 4, 2022 10:00 AM ET Company Participants Edward Rizzuti - VP, General Counsel and Secretary Jeff Leonard - President and CEO Richard Wehrle - EVP, CFO and Treasurer Dan Malone - EVP and Chief Sustainability Officer Conference Call Participants Chris Moore - CJS Securities Greg Burns - Sidoti and Company Mike Buskey - D. A Davidson Operator Greetings and welcome to the Alamo Group, Inc. Third quarter 'twenty to 2022 conference call. At thi ...

Financial Data and Key Metrics Changes - Consolidated net sales for Q2 2022 were $396 million, a 14% increase from $348 million in Q2 2021, negatively impacted by 2.5% due to currency translation [9][10] - Consolidated net income for Q2 2022 was over $28 million or $2.39 per diluted share, a 9% increase from $26 million or $2.19 per diluted share in Q2 2021 [10] - Year-to-date net sales for 2022 were $758 million, up 15% from $659 million in the first six months of 2021 [12] Business Line Data and Key Metrics Changes - Vegetation Management division net sales for Q2 2022 were $255 million, a 19% increase from $215 million in Q2 2021, with operating income up nearly 45% [10][19] - Industrial Equipment division net sales for Q2 2022 were $141 million, a 6% increase from $133 million in Q2 2021, but operating income declined 26% due to supply chain disruptions [11][22] - Year-to-date net sales for the Vegetation Management division were $476 million, up 19% from $399 million in the first six months of 2021 [13] Market Data and Key Metrics Changes - Order bookings declined approximately 7% compared to Q2 2021, but backlog increased by 78% year-over-year to over $894 million [15][18] - The backlog was also up 12% compared to the end of 2021, indicating strong demand despite some softening in North American agricultural equipment [15][18] Company Strategy and Development Direction - The company is focused on controlling costs and expenses while adjusting prices based on material and transportation costs to maintain target margins [17] - There is an emphasis on improving supply chain performance and addressing component shortages to meet heightened demand for products [19][22] - The company is investing in new product development, particularly in electrification, with prototypes expected to be showcased in spring [50] Management Comments on Operating Environment and Future Outlook - Management noted persistent challenges from material and wage cost inflation, elevated transportation costs, and supply chain disruptions [19][25] - Despite these challenges, there are signs of improvement in supply chain efficiency, which is expected to enhance manufacturing operations and increase shipments [19][22] - The outlook for the agricultural market remains positive due to favorable farm commodity prices and incomes, despite declining sentiment among farmers [25][26] Other Important Information - The company approved a quarterly dividend of $0.18 per share for Q3 2022, a 29% increase over Q3 2021 [17] - The balance sheet remains healthy, with working capital increasing to $559 million from $450 million at the end of Q2 2021 [15][16] Q&A Session Summary Question: Vegetation Management inventory and order flow - Management indicated that while dealer inventories are rising, the Vegetation Management division remains strong, with exceptional performance in recent quarters [30][31] Question: Margin perspective and industrial challenges - Management acknowledged challenges in the Industrial division but expressed optimism for improvement in the second half of the year due to better chassis supply and pricing [35][39] Question: Sales and backlog growth due to pricing - Management estimated that approximately two-thirds of the Industrial division's growth was due to pricing, while the Vegetation Management division saw a more balanced contribution from organic growth and pricing [46] Question: Chassis supply improvements - Management confirmed efforts to diversify chassis suppliers, which has led to improved supply, alongside the core supplier's recovery [48] Question: New product development - Management highlighted ongoing work in electrification and plans to showcase near-market-ready prototypes in the spring [50] Question: Production constraints and idle capacity - Management stated that there is available capacity to increase production if supply chain conditions normalize, with current underabsorption indicating potential for ramp-up [52][54]