PART I. FINANCIAL INFORMATION [Item 1. Interim Condensed Consolidated Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Interim%20Condensed%20Consolidated%20Financial%20Statements%20(Unaudited)) The unaudited interim financial statements for the period ended September 30, 2023, show significant growth compared to the prior year, with total assets increasing to **$1.46 billion**, net sales rising **13%** to **$1.27 billion**, and net income surging **44%** to **$104.6 million**, resulting in a diluted EPS of **$8.73** [Interim Condensed Consolidated Balance Sheets](index=4&type=section&id=Interim%20Condensed%20Consolidated%20Balance%20Sheets) As of September 30, 2023, the company's balance sheet reflects growth, with total assets reaching **$1.46 billion**, up from **$1.31 billion** at the end of 2022, driven by increased current assets, cash, receivables, and inventories, while total liabilities and stockholders' equity also grew Consolidated Balance Sheet Highlights (in thousands) | Account | Sep 30, 2023 | Dec 31, 2022 | Change | | :--- | :--- | :--- | :--- | | **Total Assets** | **$1,455,514** | **$1,308,508** | **+11.2%** | | Cash and cash equivalents | $113,534 | $47,016 | +141.5% | | Accounts receivable, net | $378,107 | $317,581 | +19.1% | | Inventories, net | $371,748 | $352,553 | +5.4% | | **Total Liabilities** | **$567,780** | **$523,148** | **+8.5%** | | Total debt | $323,900 | $301,952 | +7.3% | | **Total Stockholders' Equity** | **$887,734** | **$785,360** | **+13.0%** | [Interim Condensed Consolidated Statements of Income](index=5&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Income) The company reported strong year-over-year growth in both the third quarter and the first nine months of 2023, with net sales increasing by **12.9%** to **$1.27 billion** and net income rising by **43.8%** to **$104.6 million** for the nine-month period Q3 2023 vs Q3 2022 Performance (in thousands, except per share data) | Metric | Q3 2023 | Q3 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total Net Sales | $419,644 | $368,793 | +13.8% | | Gross Profit | $114,143 | $92,365 | +23.6% | | Income from Operations | $49,753 | $35,840 | +38.8% | | Net Income | $34,915 | $25,821 | +35.2% | | Diluted EPS | $2.91 | $2.16 | +34.7% | Nine Months 2023 vs 2022 Performance (in thousands, except per share data) | Metric | Nine Months 2023 | Nine Months 2022 | YoY Change | | :--- | :--- | :--- | :--- | | Total Net Sales | $1,272,109 | $1,127,012 | +12.9% | | Gross Profit | $344,724 | $278,723 | +23.7% | | Income from Operations | $153,169 | $105,875 | +44.7% | | Net Income | $104,638 | $72,763 | +43.8% | | Diluted EPS | $8.73 | $6.10 | +43.1% | - Dividends declared per share increased to **$0.22** in Q3 2023 from **$0.18** in Q3 2022, a **22.2%** increase[10](index=10&type=chunk) [Interim Condensed Consolidated Statements of Comprehensive Income](index=6&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income) For the nine months ended September 30, 2023, comprehensive income was **$104.5 million**, a significant increase from **$33.2 million** in the prior-year period, primarily driven by higher net income and a minimal other comprehensive loss of **$0.2 million** - Foreign currency translation adjustments had a much smaller negative impact in the first nine months of 2023, resulting in a loss of **$0.6 million**, compared to a loss of **$43.1 million** in the same period of 2022[13](index=13&type=chunk) [Interim Condensed Consolidated Statements of Stockholders' Equity](index=7&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity) Total stockholders' equity increased by **$102.4 million** during the first nine months of 2023, reaching **$887.7 million**, primarily driven by net income of **$104.6 million**, partially offset by dividends paid of **$7.9 million** Changes in Stockholders' Equity (Nine Months Ended Sep 30, 2023, in thousands) | Component | Amount | | :--- | :--- | | Balance at Dec 31, 2022 | $785,360 | | Net Income | +$104,638 | | Other Comprehensive Loss | -$159 | | Dividends Paid | -$7,861 | | Stock-based compensation | +$7,753 | | **Balance at Sep 30, 2023** | **$887,734** | [Interim Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=Interim%20Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) For the first nine months of 2023, the company generated **$77.0 million** in cash from operating activities, a significant turnaround from a **$21.2 million** use of cash in the same period of 2022, resulting in a **$66.5 million** increase in cash and cash equivalents Cash Flow Summary (Nine Months Ended Sep 30, in thousands) | Cash Flow Activity | 2023 | 2022 | | :--- | :--- | :--- | | Net cash provided by (used in) operating activities | $77,031 | $(21,179) | | Net cash used in investing activities | $(23,957) | $(24,972) | | Net cash provided by financing activities | $14,266 | $87,239 | | **Net change in cash and cash equivalents** | **$66,518** | **$33,193** | [Notes to Interim Condensed Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Interim%20Condensed%20Financial%20Statements) The notes provide details on key financial statement components, including increased inventories to **$371.7 million**, stable goodwill at **$195.9 million**, total debt rising to **$323.9 million**, and a significant subsequent acquisition of Royal Truck & Equipment, Inc. for approximately **$28 million** - Net inventories increased to **$371.7 million** at September 30, 2023, from **$352.6 million** at December 31, 2022, with finished goods making up the largest component[25](index=25&type=chunk)[26](index=26&type=chunk) - Total debt stood at **$323.9 million** as of September 30, 2023, with **$312.6 million** in available borrowings under the bank revolving credit facility[37](index=37&type=chunk) Segment Performance (Nine Months Ended Sep 30, in thousands) | Segment | Net Sales 2023 | Net Sales 2022 | Income from Ops 2023 | Income from Ops 2022 | | :--- | :--- | :--- | :--- | :--- | | Vegetation Management | $764,683 | $704,520 | $102,320 | $78,261 | | Industrial Equipment | $507,426 | $422,492 | $50,849 | $27,614 | - On October 10, 2023, the Company acquired Royal Truck & Equipment, Inc. for approximately **$28 million**, marking an entry into the highway safety equipment market[48](index=48&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=16&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the strong performance in the first nine months of 2023 to robust customer demand, effective pricing actions, and improved manufacturing efficiencies, resulting in **13%** net sales growth and **44%** net income increase, while maintaining a strong liquidity position - For the first nine months of 2023, net sales increased by **13%** and net income by **44%** compared to the same period in 2022, driven by strong customer demand, positive pricing, and cost discipline[53](index=53&type=chunk) - The company's backlog at the end of the first nine months of 2023 was **$890.9 million**, slightly down from **$908.9 million** at the same point in 2022[55](index=55&type=chunk) Profitability Margins | Margin (% of Net Sales) | Nine Months 2023 | Nine Months 2022 | | :--- | :--- | :--- | | Gross profit | 27.1% | 24.7% | | Income from operations | 12.0% | 9.4% | | Net income | 8.2% | 6.5% | [Results of Operations](index=17&type=section&id=Results%20of%20Operations) Comparing the first nine months of 2023 to 2022, net sales rose **13%** to **$1.27 billion**, gross profit increased by **$66.0 million** to **$344.7 million** with margin expanding from **25%** to **27%**, and net income increased by **$31.8 million** to **$104.6 million** despite nearly doubled interest expense - In Q3 2023, net sales increased **14%** YoY to **$419.6 million**, driven by strong demand and pricing, with Vegetation Management sales growing **8%** and Industrial Equipment sales growing **23%**[57](index=57&type=chunk)[58](index=58&type=chunk)[60](index=60&type=chunk) - Gross profit margin for the first nine months of 2023 improved to **27%** from **25%** in the prior year period, attributed to higher sales volume, positive pricing, and improved efficiencies as supply chain conditions eased[66](index=66&type=chunk) - Interest expense for the first nine months of 2023 increased to **$19.5 million** from **$9.6 million** in the prior year, mainly due to higher interest rates[67](index=67&type=chunk) [Liquidity and Capital Resources](index=19&type=section&id=Liquidity%20and%20Capital%20Resources) The company's liquidity remains strong, with working capital increasing by **$117.3 million** to **$654.0 million** as of September 30, 2023, and significant available borrowings of **$312.6 million** under its **$655.0 million** credit agreement - Working capital was **$654.0 million** at September 30, 2023, an increase of **$117.3 million** from year-end 2022, driven by volume and inflation-related increases in accounts receivable and inventory[71](index=71&type=chunk) - The company's 2022 Credit Agreement provides for **$655.0 million** in financing, consisting of a **$255.0 million** Term Facility and a **$400.0 million** Revolver Facility, expiring in October 2027[74](index=74&type=chunk) - As of September 30, 2023, **$325.0 million** was outstanding under the credit agreement, and the company was in compliance with all financial covenants[74](index=74&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risks](index=22&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risks) The company is exposed to market risks primarily from foreign currency fluctuations and interest rate changes, with a hypothetical **10%** strengthening of the U.S. dollar impacting gross profit by an estimated **$9.6 million** and a **two-percentage-point** change in interest rates altering Q3 interest expense by approximately **$1.6 million** - A uniform **10%** strengthening of the U.S. dollar relative to currencies in which the company operates would result in a change in gross profit of **$9.6 million** for the nine months ended September 30, 2023[88](index=88&type=chunk) - A **two percentage point** change in the average interest rate on variable-rate borrowings would have changed the company's Q3 2023 interest expense by approximately **$1.6 million**[89](index=89&type=chunk) [Item 4. Controls and Procedures](index=22&type=section&id=Item%204.%20Controls%20and%20Procedures) Based on management's evaluation, including the CEO and CFO, the company's disclosure controls and procedures were effective as of the end of the reporting period, with no material changes to internal control over financial reporting during the last fiscal quarter - The President and Chief Executive Officer and the Executive Vice President and Chief Financial Officer concluded that the Company's disclosure controls and procedures were effective at the end of the reporting period[92](index=92&type=chunk) - No material changes to internal control over financial reporting occurred during the last fiscal quarter[93](index=93&type=chunk) PART II. OTHER INFORMATION [Item 1. Legal Proceedings](index=23&type=section&id=Item%201.%20Legal%20Proceedings) The report refers to the company's Annual Report on Form 10-K for the year ended December 31, 2022, for a description of legal proceedings - For information on legal proceedings, the company directs readers to its 2022 Form 10-K[93](index=93&type=chunk) [Item 1A. Risk Factors](index=23&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes from the risk factors that were previously disclosed in the company's Annual Report on Form 10-K for the year ended December 31, 2022 - No material changes to risk factors have occurred since the filing of the 2022 Form 10-K[93](index=93&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=23&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its common stock during the three months ended September 30, 2023, with approximately **$25.9 million** remaining for purchase under its publicly announced repurchase plan Issuer Purchases of Equity Securities (Q3 2023) | Period | Total Number of Shares Purchased | Average Price Paid Per Share | Maximum Dollar Value Remaining for Purchase | | :--- | :--- | :--- | :--- | | July 2023 | — | — | $25,861,222 | | August 2023 | — | — | $25,861,222 | | September 2023 | — | — | $25,861,222 | [Item 3. Defaults Upon Senior Securities](index=23&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) The company reported no defaults upon senior securities - None[94](index=94&type=chunk) [Item 4. Mine Safety Disclosures](index=23&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable to the company - Not Applicable[95](index=95&type=chunk) [Item 5. Other Information](index=23&type=section&id=Item%205.%20Other%20Information) The company did not file any reports on Form 8-K during the quarter, and no directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the period - No Form 8-K reports were filed during the period[95](index=95&type=chunk) - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the reporting period[96](index=96&type=chunk) [Item 6. Exhibits](index=24&type=section&id=Item%206.%20Exhibits) This section lists the exhibits filed with the Form 10-Q, which include certifications by the CEO and CFO under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files - Exhibits filed include CEO and CFO certifications and XBRL interactive data files[97](index=97&type=chunk)

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]