Core Viewpoint - Douglas Dynamics, Inc. announces a leadership transition with Don Sturdivant appointed as Chairman of the Board, succeeding Jim Janik, who will remain on the Board to ensure continuity [1][2][3]. Company Overview - Douglas Dynamics is North America's leading manufacturer and upfitter of work truck attachments and equipment, with over 75 years of innovation in products that enhance job efficiency and business profitability [6]. - The company operates through two segments: Work Truck Attachments, which includes brands like FISHER®, SNOWEX®, and WESTERN®, and Work Truck Solutions, featuring the HENDERSON® and DEJANA® brands [6]. Leadership Transition - Jim Janik has stepped down as Chairman effective April 30, 2025, after decades of leadership, while continuing as a Board member [1][2]. - Don Sturdivant, who has been on the Board since 2010 and Lead Director since 2023, is recognized for his strategic acumen and managerial experience, making him well-suited for the Chairman role [2][3]. - With Sturdivant's appointment, the Board will eliminate the Lead Director position [3]. Don Sturdivant's Background - Sturdivant is an Operating Partner at TruArc LLC, focusing on the Specialty Manufacturing Sector, and has held CEO positions at FleetPride, Inc. and Marietta Corporation [4][5]. - His previous executive roles include Chief Operating Officer at Altivity Packaging and Division President at Graphic Packaging International and Fort James Corporation [5].

Company Overview - Douglas Dynamics, Inc. is North America's premier manufacturer and upfitter of work truck attachments and equipment, with over 75 years of industry experience [3] - The company operates through two segments: Work Truck Attachments, which includes brands like FISHER®, SNOWEX®, and WESTERN®, and Work Truck Solutions, which includes the HENDERSON® and DEJANA® brands [3] Financial Results Announcement - Douglas Dynamics will release its financial results for the first quarter of 2025 after market close on May 5, 2025 [1] - A conference call to discuss these results will take place on May 6, 2025, at 9:00 a.m. Central Time, hosted by the President and CEO Mark Van Genderen and CFO Sarah Lauber [2] Commitment to Quality and Improvement - The company emphasizes continuous improvement through its proprietary Douglas Dynamics Management System (DDMS), aiming to produce high-quality products and provide industry-leading service [3]

Interim President & CEO Jim Janik Returning to Role as Chairman of the Board of DirectorsMILWAUKEE, March 03, 2025 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE: PLOW), North America’s premier manufacturer and upfitter of work truck attachments and equipment, today announced the Board of Directors has appointed Mark Van Genderen as President and Chief Executive Officer (CEO), effective immediately. He will also join the Board of Directors effective immediately. Mr. Van Genderen has been with the company ...

MILWAUKEE, March 03, 2025 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE:PLOW), North America's premier manufacturer and upfitter of work truck attachments and equipment, today announced the Board of Directors has appointed Mark Van Genderen as President and Chief Executive Officer (CEO), effective immediately. He will also join the Board of Directors effective immediately. Mr. Van Genderen has been with the company for five years, and most recently served as Chief Operating Officer and President of Work ...

PART I [Item 1. Business](index=5&type=section&id=Item%201.%20Business) Douglas Dynamics is a leading North American manufacturer and upfitter of commercial work truck attachments and equipment, focusing on innovation and operational efficiency - **Douglas Dynamics, Inc.** is North America's premier manufacturer and upfitter of commercial work truck attachments and equipment, with over **75 years of innovation**[19](index=19&type=chunk) - The company operates in two segments: Work Truck Attachments (snow and ice control products under FISHER®, SNOWEX®, WESTERN® brands) and Work Truck Solutions (municipal snow and ice control products and upfitting services under HENDERSON® and DEJANA® brands)[19](index=19&type=chunk) - Work Truck Attachments segment generated **82% of net sales** from snow and ice control equipment and **18% from parts and accessories in 2024**, relying on a network of approximately **3,000 points of sale**[20](index=20&type=chunk)[22](index=22&type=chunk) - The Work Truck Solutions segment focuses on upfitting Class 3-8 trucks and other commercial vehicles, serving governmental agencies and a broad customer base of approximately **2,700**[24](index=24&type=chunk) - The company's competitive strengths include exceptional customer loyalty, the broadest and most innovative product offering in Work Truck Attachments, an extensive North American distributor network, leadership in operational efficiency through lean manufacturing, strong cash flow generation, and an experienced management team[35](index=35&type=chunk)[36](index=36&type=chunk)[37](index=37&type=chunk)[39](index=39&type=chunk)[40](index=40&type=chunk)[41](index=41&type=chunk)[42](index=42&type=chunk) - Business strategy centers on continuous product innovation, distributor network and customer optimization, aggressive asset management (highly variable cost structure, lean principles, pre-season orders, vertical integration), and pursuing growth opportunities through new products/markets and increasing market share[43](index=43&type=chunk)[44](index=44&type=chunk)[45](index=45&type=chunk)[47](index=47&type=chunk)[48](index=48&type=chunk)[49](index=49&type=chunk)[51](index=51&type=chunk) Order Backlog (in millions) | Year | Backlog (USD) | | :--- | :------------ | | 2024 | $348.0 | | 2023 | $296.3 | [Overview](index=5&type=section&id=Overview) [Work Truck Attachments Segment](index=5&type=section&id=Work%20Truck%20Attachments%20Segment) [Work Truck Solutions Segment](index=6&type=section&id=Work%20Truck%20Solutions%20Segment) [Our Industry](index=6&type=section&id=Our%20Industry) [Our Competitive Strengths](index=8&type=section&id=Our%20Competitive%20Strengths) [Our Business Strategy](index=9&type=section&id=Our%20Business%20Strategy) [Our Growth Opportunities](index=10&type=section&id=Our%20Growth%20Opportunities) [Order Backlog](index=10&type=section&id=Order%20Backlog) [Human Capital Management](index=11&type=section&id=Human%20Capital%20Management) [Financing Program](index=13&type=section&id=Financing%20Program) [Intellectual Property](index=13&type=section&id=Intellectual%20Property) [Raw Materials](index=13&type=section&id=Raw%20Materials) [Government Regulation](index=14&type=section&id=Government%20Regulation) [Other Information](index=14&type=section&id=Other%20Information) [Item 1A. Risk Factors](index=14&type=section&id=Item%201A.%20Risk%20Factors) The company faces significant risks from weather, economic downturns, operational dependencies, cybersecurity, M&A, financial leverage, and regulatory compliance - Results of operations are highly dependent on snowfall levels, timing, and location, with below-average snowfall in **2023 and 2024** negatively impacting the Work Truck Attachments segment[73](index=73&type=chunk)[74](index=74&type=chunk) - Economic downturns, limited government spending, and inflation can reduce demand for new equipment, increase price sensitivity, and raise costs for raw materials (like steel), labor, and freight, potentially decreasing gross margins[77](index=77&type=chunk)[78](index=78&type=chunk)[79](index=79&type=chunk)[80](index=80&type=chunk)[82](index=82&type=chunk) - Operational risks include dependence on outside suppliers and OEMs for components and truck chassis, potential disruptions from offshore sourcing, cybersecurity breaches, and the ability to retain and attract qualified employees[89](index=89&type=chunk)[90](index=90&type=chunk)[91](index=91&type=chunk)[92](index=92&type=chunk) - Strategic risks involve the ability to identify and integrate acquisitions, maintain and enforce intellectual property rights, and continuously develop new products to stay competitive[107](index=107&type=chunk)[108](index=108&type=chunk)[109](index=109&type=chunk)[110](index=110&type=chunk)[112](index=112&type=chunk) - The company's substantial indebtedness (**$147.5 million senior secured debt as of Dec 31, 2024**) and variable interest rates expose it to significant interest rate risk, potentially increasing debt service obligations[120](index=120&type=chunk)[122](index=122&type=chunk)[247](index=247&type=chunk) - Compliance with complex federal, state, and local laws and regulations, including environmental and safety standards, may require significant and unanticipated capital expenditures[114](index=114&type=chunk)[115](index=115&type=chunk)[116](index=116&type=chunk) [Risks Related to Weather and Seasonality](index=14&type=section&id=Risks%20Related%20to%20Weather%20and%20Seasonality) [Risks Related to Economic Conditions](index=15&type=section&id=Risks%20Related%20to%20Economic%20Conditions) [Risks Related to our Business and Operations](index=17&type=section&id=Risks%20Related%20to%20our%20Business%20and%20Operations) [Risks Related to Execution of Strategy](index=22&type=section&id=Risks%20Related%20to%20Execution%20of%20Strategy) [Risks Related to Legal, Compliance and Regulatory Matters](index=23&type=section&id=Risks%20Related%20to%20Legal%2C%20Compliance%20and%20Regulatory%20Matters) [Risks Related to Capital Structure](index=25&type=section&id=Risks%20Related%20to%20Capital%20Structure) [Item 1B. Unresolved Staff Comments](index=27&type=section&id=Item%201B.%20Unresolved%20Staff%20Comments) No unresolved staff comments are reported - Not applicable[126](index=126&type=chunk) [Item 1C. Cybersecurity](index=27&type=section&id=Item%201C.%20Cybersecurity) The Board oversees cybersecurity risk management, following recognized frameworks, with no material impact from threats on business or financial condition - The Board of Directors, with the Audit Committee, oversees cybersecurity risk management as part of the company's ERM program[127](index=127&type=chunk)[129](index=129&type=chunk) - Cybersecurity policies are based on NIST, ISO, and other industry standards, covering governance, collaborative approach, technical safeguards, incident response, third-party risk management, and employee awareness training[127](index=127&type=chunk)[128](index=128&type=chunk) - The Vice President of Information Technology, in coordination with the Interim CEO and CFO, implements the cybersecurity program and reports threats and incidents to the Audit Committee[130](index=130&type=chunk)[131](index=131&type=chunk)[132](index=132&type=chunk) - Cybersecurity threats have not materially affected or are reasonably likely to affect the company's business strategy, results of operations, or financial condition[133](index=133&type=chunk) [Risk Management and Strategy](index=27&type=section&id=Risk%20Management%20and%20Strategy) [Governance](index=27&type=section&id=Governance) [Item 2. Properties](index=28&type=section&id=Item%202.%20Properties) As of December 31, 2024, the company owns one manufacturing facility and leases twenty-two others, including a China sourcing office - The company owns one facility in Rockland, Maine (Work Truck Attachments) and leases twenty-two manufacturing, service, upfit, and corporate facilities across Iowa, Illinois, Maine, Maryland, Michigan, Missouri, New Jersey, New York, Ohio, Pennsylvania, Rhode Island, and Wisconsin[134](index=134&type=chunk) - A sourcing office is also leased in China[134](index=134&type=chunk) [Item 3. Legal Proceedings](index=28&type=section&id=Item%203.%20Legal%20Proceedings) The company is involved in ordinary course litigation, primarily product liability and IP, none deemed material, with no climate-related claims - The company is engaged in various litigation, primarily product liability and intellectual property disputes[135](index=135&type=chunk) - Management does not believe any current litigation is material to operations or financial position[135](index=135&type=chunk) - No climate change or environmental-related claims or legal matters are currently pending[135](index=135&type=chunk) [Item 4. Mine Safety Disclosures](index=28&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) This item is not applicable - Not applicable[136](index=136&type=chunk) [Information about our Executive Officers](index=29&type=section&id=Information%20about%20our%20Executive%20Officers) Key executive officers as of February 25, 2025, include James Janik (Interim CEO), Sarah Lauber (CFO), and Mark Van Genderen (COO) Executive Officers as of February 25, 2025 | Name | Age | Position | | :------------- | :-- | :------------------------------------------ | | James Janik | 68 | Interim President and Chief Executive Officer | | Sarah Lauber | 53 | Executive Vice President, Chief Financial Officer & Secretary | | Mark Van Genderen | 56 | Chief Operating Officer and President, Work Truck Attachments | - Robert McCormick retired as President and CEO effective **July 8, 2024**, and James Janik was elected Interim President and CEO on the same date[138](index=138&type=chunk) - Linda R. Evans, Chief Human Resources Officer, retired effective **January 2, 2025**[138](index=138&type=chunk) - Executive officers are elected by and serve at the discretion of the Board of Directors, with no family relationships among directors or executive officers[141](index=141&type=chunk) PART II [Item 5. Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities](index=30&type=section&id=Item%205.%20Market%20for%20Registrant%27s%20Common%20Equity%2C%20Related%20Stockholder%20Matters%20and%20Issuer%20Purchases%20of%20Equity%20Securities) Douglas Dynamics' common stock trades on NYSE (PLOW), maintains quarterly dividends, and has a $44.0 million share repurchase plan remaining - Common Stock (PLOW) traded on the New York Stock Exchange since **Q2 2010**, with **57 registered record holders** as of February 25, 2025[144](index=144&type=chunk) - Quarterly cash dividends were declared and paid in **2023 and 2024**, with the policy allowing for special dividends at the board's discretion[145](index=145&type=chunk) Issuer Purchases of Equity Securities (Q4 2024) | Period | Total shares purchased | Average price paid per share | Number of shares purchased as part of publicly announced program | Approximate dollar value of shares still available to be purchased under the program (000's) | | :--------------------- | :--------------------- | :--------------------------- | :--------------------------------------------------------------- | :----------------------------------------------------------------------------------------- | | 10/1/2024 - 10/31/2024 | - | $ - | - | $ 44,000 | | 11/1/2024 - 11/30/2024 | - | $ - | - | $ 44,000 | | 12/1/2024 - 12/31/2024 | - | $ - | - | $ 44,000 | | Total | - | $ - | - | $ 44,000 | - A **$50.0 million** share repurchase plan was authorized on **February 16, 2022**, with no expiration date, and no shares were repurchased in **2024 or 2023**[149](index=149&type=chunk)[194](index=194&type=chunk) [Issuer Purchases of Equity Securities](index=31&type=section&id=Issuer%20Purchases%20of%20Equity%20Securities) [Item 6. [Reserved]](index=32&type=section&id=Item%206.%20%5BReserved%5D) This item is reserved due to the company's application of the amendment to Regulations S-K Item 301 - This item is no longer required as the Company has applied the amendment to Regulations S-K Item 301[151](index=151&type=chunk) [Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=32&type=section&id=Item%207.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Net sales slightly increased to $568.5 million in 2024, with gross profit improving to 25.8% and net income rising to $56.2 million, aided by a sale-leaseback gain Consolidated Statements of Income Summary (in thousands) | Metric | 2024 | 2023 | 2022 | | :--------------------------- | :-------- | :-------- | :-------- | | Net sales | $568,504 | $568,178 | $616,068 | | Cost of sales | $421,667 | $433,908 | $464,612 | | Gross profit | $146,837 | $134,270 | $151,456 | | Selling, general, and administrative expense | $91,682 | $78,841 | $82,183 | | Impairment charges | $1,224 | $0 | $0 | | Gain on sale leaseback transaction | $(42,298) | $0 | $0 | | Intangibles amortization | $7,520 | $10,520 | $10,520 | | Income from operations | $88,709 | $44,909 | $58,753 | | Interest expense, net | $(15,260) | $(15,675) | $(11,253) | | Other income (expense), net | $442 | $0 | $(139) | | Income before taxes | $73,891 | $29,234 | $47,361 | | Income tax expense | $17,740 | $5,511 | $8,752 | | Net income | $56,151 | $23,723 | $38,609 | Key Financial Ratios (as % of Net Sales) | Metric | 2024 | 2023 | 2022 | | :--------------------------- | :----- | :----- | :----- | | Net sales | 100.0% | 100.0% | 100.0% | | Cost of sales | 74.2% | 76.4% | 75.4% | | Gross profit | 25.8% | 23.6% | 24.6% | | Selling, general, and administrative expense | 16.1% | 13.9% | 13.4% | | Impairment charges | 0.2% | 0.0% | 0.0% | | Gain on sale leaseback transaction | (7.4)% | 0.0% | 0.0% | | Intangibles amortization | 1.3% | 1.8% | 1.7% | | Income from operations | 15.6% | 7.9% | 9.5% | | Interest expense, net | (2.7)% | (2.8)% | (1.8)% | | Other income (expense), net | 0.1% | 0.0% | (0.0)% | | Income before taxes | 13.0% | 5.1% | 7.7% | | Income tax expense | 3.1% | 0.9% | 1.4% | | Net income | 9.9% | 4.2% | 6.3% | - Net sales increased by **$0.3 million (0.1%) in 2024** to **$568.5 million**, driven by higher volumes and price realization in Work Truck Solutions, partially offset by lower volumes in Work Truck Attachments due to low snowfall[163](index=163&type=chunk) - Gross profit increased by **$12.5 million (9.3%)** to **$146.8 million in 2024**, with gross profit margin improving from **23.6% to 25.8%**, primarily due to lower spending from the 2024 Cost Savings Program and improved throughput at Work Truck Solutions[166](index=166&type=chunk)[167](index=167&type=chunk) - Net income for **2024 was $56.2 million**, a **$32.5 million increase** from **$23.7 million in 2023**, significantly impacted by a **$42.3 million gain** on a sale-leaseback transaction[170](index=170&type=chunk)[174](index=174&type=chunk) - The company implemented a **2024 Cost Savings Program**, including salaried headcount reductions, and executed a sale-leaseback transaction for **$64.2 million gross proceeds**, using **$42.0 million** to pay down term loan debt[157](index=157&type=chunk)[195](index=195&type=chunk) [Results of Operations](index=32&type=section&id=Results%20of%20Operations) [Discussion of Critical Accounting Policies and Estimates](index=37&type=section&id=Discussion%20of%20Critical%20Accounting%20Policies%20and%20Estimates) [Liquidity and Capital Resources](index=40&type=section&id=Liquidity%20and%20Capital%20Resources) [Cash Flow Analysis](index=41&type=section&id=Cash%20Flow%20Analysis) [Non‑GAAP Financial Measures](index=43&type=section&id=Non%E2%80%91GAAP%20Financial%20Measures) [Future Obligations and Commitments](index=48&type=section&id=Future%20Obligations%20and%20Commitments) [Impact of Inflation](index=49&type=section&id=Impact%20of%20Inflation) [Seasonality and Year‑To‑Year Variability](index=49&type=section&id=Seasonality%20and%20Year%E2%80%91To%E2%80%91Year%20Variability) [Item 7A. Quantitative and Qualitative Disclosures About Market Risk](index=50&type=section&id=Item%207A.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company faces market risks from variable interest rates and steel prices, mitigated by interest rate swaps and a steel hedging agreement - Primary market risk exposures are changes in interest rates on variable-rate debt and steel price fluctuations[244](index=244&type=chunk) - As of **December 31, 2024**, outstanding term loan borrowings were **$147.5 million**, and a hypothetical **1% interest rate increase** would result in an additional **$0.5 million** in interest expense for the year[247](index=247&type=chunk) - The company uses interest rate swap agreements to reduce exposure to interest rate volatility, with a **positive fair value of $2.3 million** at **December 31, 2024**[248](index=248&type=chunk)[249](index=249&type=chunk) - A steel hedging agreement was entered into on **December 17, 2024**, for **3,000 short tons**, effective **August 1, 2025**, to reduce exposure to commodity price swings, with a **negative fair value of $0.1 million** at **December 31, 2024**[252](index=252&type=chunk) [Interest Rate Risk](index=50&type=section&id=Interest%20Rate%20Risk) [Commodity Price Risk](index=51&type=section&id=Commodity%20Price%20Risk) [Item 8. Financial Statements and Supplementary Data](index=51&type=section&id=Item%208.%20Financial%20Statements%20and%20Supplementary%20Data) Audited consolidated financial statements are included in the report starting on page F-2 - The financial statements are included in this report beginning on page F-2[253](index=253&type=chunk) [Item 9. Changes In and Disagreements with Accountants on Accounting and Financial Disclosures](index=51&type=section&id=Item%209.%20Changes%20In%20and%20Disagreements%20with%20Accountants%20on%20Accounting%20and%20Financial%20Disclosures) No changes or disagreements with accountants on accounting and financial disclosures are reported - None[254](index=254&type=chunk) [Item 9A. Controls and Procedures](index=51&type=section&id=Item%209A.%20Controls%20and%20Procedures) Management concluded disclosure controls and internal control over financial reporting were effective as of December 31, 2024, with no material changes - Disclosure controls and procedures were evaluated and deemed effective as of **December 31, 2024**, by management, with participation from the Interim CEO and CFO[254](index=254&type=chunk)[255](index=255&type=chunk) - Management's assessment concluded that internal control over financial reporting was effective as of **December 31, 2024**, based on the COSO (2013 framework) criteria[260](index=260&type=chunk) - Deloitte & Touche LLP audited the consolidated financial statements and issued an attestation report on the effectiveness of internal control over financial reporting[261](index=261&type=chunk) - No material changes in internal controls over financial reporting occurred during the last fiscal quarter[262](index=262&type=chunk) [Disclosure Controls and Procedures](index=51&type=section&id=Disclosure%20Controls%20and%20Procedures) [Management's Report on Internal Control Over Financial Reporting](index=53&type=section&id=Management%27s%20Report%20on%20Internal%20Control%20Over%20Financial%20Reporting) [Changes in Internal Control Over Financial Reporting](index=53&type=section&id=Changes%20in%20Internal%20Control%20Over%20Financial%20Reporting) [Item 9B. Other Information](index=53&type=section&id=Item%209B.%20Other%20Information) No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement in Q4 2024 - No director or officer adopted or terminated a Rule 10b5-1 or non-Rule 10b5-1 trading arrangement during **Q4 2024**[263](index=263&type=chunk) [Item 9C. Disclosure Regarding Foreign Jurisdictions that Prevent Inspections](index=53&type=section&id=Item%209C.%20Disclosure%20Regarding%20Foreign%20Jurisdictions%20that%20Prevent%20Inspections) This item is not applicable - Not applicable[264](index=264&type=chunk) PART III [Item 10. Directors, Executive Officers and Corporate Governance](index=53&type=section&id=Item%2010.%20Directors%2C%20Executive%20Officers%20and%20Corporate%20Governance) Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement - Information on directors, executive officers, and corporate governance is incorporated by reference from the Proxy Statement[266](index=266&type=chunk) - The company has a Code of Business Conduct and Ethics for directors, principal executive/financial/accounting officers, and all employees, available on its website[268](index=268&type=chunk) [Item 11. Executive Compensation](index=54&type=section&id=Item%2011.%20Executive%20Compensation) Executive compensation information, including committee interlocks and director compensation, is incorporated by reference from the Proxy Statement - Executive compensation information is incorporated by reference from the Proxy Statement[269](index=269&type=chunk) [Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Shareholder Matters](index=54&type=section&id=Item%2012.%20Security%20Ownership%20of%20Certain%20Beneficial%20Owners%20and%20Management%20and%20Related%20Shareholder%20Matters) Security ownership information is incorporated by reference, with details on outstanding options and shares available for future issuance under incentive plans - Security ownership information is incorporated by reference from the Proxy Statement[269](index=269&type=chunk) Equity Compensation Plan Information (as of December 31, 2024) | Plan Category | Number of securities to be issued upon exercise of outstanding options, warrants and rights | Weighted-average exercise price of outstanding options, warrants and rights | Number of securities remaining available for future issuance under equity compensation plans (excluding securities reflected in column) | | :------------------------------------------------ | :------------------------------------------------------------------------ | :---------------------------------------------------------- | :------------------------------------------------------------------------------------------------------------------------------------ | | Equity Compensation plans approved by security holders: | | | | | 2010 Stock Incentive Plan: | 99,998 | $ - | - | | 2024 Stock Incentive Plan: | - | $ - | 882,091 | | Equity compensation plans not approved by security holders | - | $ - | - | | Total | 99,998 | $ - | 882,091 | [Equity Compensation Plan Information](index=54&type=section&id=Equity%20Compensation%20Plan%20Information) [Item 13. Certain Relationships and Related Transactions, and Director Independence](index=55&type=section&id=Item%2013.%20Certain%20Relationships%20and%20Related%20Transactions%2C%20and%20Director%20Independence) Information on certain relationships, related transactions, and director independence is incorporated by reference from the Proxy Statement - Information is incorporated by reference from the Proxy Statement under the caption 'Corporate Governance'[274](index=274&type=chunk) [Item 14. Principal Accounting Fees and Services](index=55&type=section&id=Item%2014.%20Principal%20Accounting%20Fees%20and%20Services) Information on principal accounting fees and services is incorporated by reference from the Proxy Statement - Information is incorporated by reference to the Proxy Statement under the caption 'Ratification of Appointment of Independent Registered Public Accounting Firm'[274](index=274&type=chunk) PART IV [Item 15. Exhibits and Financial Statement Schedules](index=55&type=section&id=Item%2015.%20Exhibits%20and%20Financial%20Statement%20Schedules) This section lists consolidated financial statements, omitted schedules, and an exhibit index filed as part of the report - Consolidated Financial Statements are included starting on page F-2[276](index=276&type=chunk) - All financial statement schedules are omitted because the required information is included in the Notes to the Consolidated Financial Statements[276](index=276&type=chunk) - An Exhibit Index is provided starting on the following page[276](index=276&type=chunk) [Item 16. Form 10-K Summary](index=55&type=section&id=Item%2016.%20Form%2010-K%20Summary) This item is not applicable - Not applicable[277](index=277&type=chunk) [Exhibit Index](index=56&type=section&id=Exhibit%20Index) The Exhibit Index lists all filed exhibits, including agreements, plans, and certifications - The Exhibit Index lists various agreements and documents, including asset purchase agreements, credit agreements, employment agreements, and stock incentive plans[279](index=279&type=chunk)[280](index=280&type=chunk)[281](index=281&type=chunk) - It also includes certifications such as the Insider Trading Policy, Subsidiaries list, Consent of Deloitte & Touche LLP, and CEO/CFO certifications under Sarbanes-Oxley Act[281](index=281&type=chunk)[284](index=284&type=chunk) [Signatures](index=61&type=section&id=Signatures) The Form 10-K report was signed on February 25, 2025, by key executive officers and directors - The report was signed on **February 25, 2025**[286](index=286&type=chunk)[287](index=287&type=chunk) - Signatories include James L. Janik (Interim President and CEO, Chairman), Sarah Lauber (EVP, CFO & Secretary), Jon J. Sisulak (VP, Corporate Controller and Treasurer), and other directors[287](index=287&type=chunk)[288](index=288&type=chunk) Index to Consolidated Financial Statements [Report of Independent Registered Public Accounting Firm](index=63&type=section&id=Report%20of%20Independent%20Registered%20Public%20Accounting%20Firm) Deloitte & Touche LLP issued unqualified opinions on financial statements and internal control, highlighting critical audit matters for intangible assets and sale-leaseback accounting - Deloitte & Touche LLP issued an unqualified opinion on the consolidated financial statements as of **December 31, 2024 and 2023**, and for the three years ended **December 31, 2024**[293](index=293&type=chunk)[294](index=294&type=chunk) - An unqualified opinion was also issued on the effectiveness of the company's internal control over financial reporting as of **December 31, 2024**[294](index=294&type=chunk) - Critical audit matters identified were the indefinite-lived intangible tradename for Dejana (valuation assumptions and sensitivity to supply chain constraints) and the accounting for the sale-leaseback transaction (transfer of control, timing, and fair value determination)[301](index=301&type=chunk)[302](index=302&type=chunk)[305](index=305&type=chunk)[306](index=306&type=chunk) [Opinions on the Financial Statements and Internal Control over Financial Reporting](index=63&type=section&id=Opinions%20on%20the%20Financial%20Statements%20and%20Internal%20Control%20over%20Financial%20Reporting) [Basis for Opinions](index=63&type=section&id=Basis%20for%20Opinions) [Definition and Limitations of Internal Control over Financial Reporting](index=63&type=section&id=Definition%20and%20Limitations%20of%20Internal%20Control%20over%20Financial%20Reporting) [Critical Audit Matters](index=64&type=section&id=Critical%20Audit%20Matters) [Consolidated Balance Sheets](index=67&type=section&id=Consolidated%20Balance%20Sheets) Total assets slightly decreased to $589.9 million, while total liabilities significantly reduced to $304.0 million, and shareholders' equity increased to $264.2 million Consolidated Balance Sheet Summary (in thousands) | Metric | December 31, 2024 | December 31, 2023 | | :----------------------------------------- | :---------------- | :---------------- | | **Assets** | | | | Cash and cash equivalents | $5,119 | $24,156 | | Accounts receivable, net | $87,407 | $83,760 | | Inventories | $137,034 | $140,390 | | Total current assets | $238,225 | $262,238 | | Property, plant and equipment, net | $41,311 | $67,340 | | Goodwill | $113,134 | $113,134 | | Other intangible assets, net | $113,550 | $121,070 | | Operating leases - right of use asset | $70,801 | $18,008 | | Total assets | $589,983 | $593,418 | | **Liabilities and Shareholders' Equity** | | | | Accounts payable | $32,319 | $31,374 | | Accrued expenses and other current liabilities | $26,182 | $25,817 | | Short-term borrowings | $0 | $47,000 | | Current portion of long-term debt | $0 | $6,762 | | Total current liabilities | $70,192 | $118,517 | | Long-term debt, less current portion | $146,679 | $181,491 | | Operating lease liability - noncurrent | $64,785 | $13,887 | | Total liabilities | $304,000 | $363,856 | | Total shareholders' equity | $264,215 | $231,565 | | Total liabilities and shareholders' equity | $589,983 | $593,418 | - Cash and cash equivalents decreased by **$19.0 million** from **$24.2 million in 2023** to **$5.1 million in 2024**[313](index=313&type=chunk) - Total current liabilities decreased significantly by **$48.3 million**, primarily due to the elimination of short-term borrowings and current portion of long-term debt[313](index=313&type=chunk) - Shareholders' equity increased by **$32.6 million**, from **$231.6 million in 2023** to **$264.2 million in 2024**[313](index=313&type=chunk) [Consolidated Statements of Income](index=68&type=section&id=Consolidated%20Statements%20of%20Income) Net sales were stable at $568.5 million, gross profit rose to $146.8 million (25.8% margin), and net income surged to $56.2 million, boosted by a sale-leaseback gain Consolidated Statements of Income (in thousands, except per share data) | Metric | 2024 | 2023 | 2022 | | :--------------------------- | :-------- | :-------- | :-------- | | Net sales | $568,504 | $568,178 | $616,068 | | Cost of sales | $421,667 | $433,908 | $464,612 | | Gross profit | $146,837 | $134,270 | $151,456 | | Selling, general, and administrative expense | $91,682 | $78,841 | $82,183 | | Impairment charges | $1,224 | $0 | $0 | | Gain on sale leaseback transaction | $(42,298) | $0 | $0 | | Intangibles amortization | $7,520 | $10,520 | $10,520 | | Income from operations | $88,709 | $44,909 | $58,753 | | Interest expense, net | $(15,260) | $(15,675) | $(11,253) | | Other income (expense), net | $442 | $0 | $(139) | | Income before taxes | $73,891 | $29,234 | $47,361 | | Income tax expense | $17,740 | $5,511 | $8,752 | | Net income | $56,151 | $23,723 | $38,609 | | Earnings per common share: | | | | | Basic | $2.39 | $1.01 | $1.65 | | Diluted | $2.36 | $0.98 | $1.63 | | Cash dividends declared and paid per share | $1.18 | $1.18 | $1.16 | - Net sales for **2024 were $568.5 million**, a slight increase of **$0.3 million (0.1%)** from **$568.2 million in 2023**[315](index=315&type=chunk) - Gross profit increased by **$12.5 million (9.3%)** to **$146.8 million in 2024**, with the gross profit margin rising to **25.8%** from **23.6% in 2023**[315](index=315&type=chunk) - Income from operations increased significantly to **$88.7 million in 2024** from **$44.9 million in 2023**, largely due to a **$42.3 million gain** on a sale-leaseback transaction[315](index=315&type=chunk) - Net income for **2024 was $56.2 million**, up from **$23.7 million in 2023**, resulting in diluted earnings per common share of **$2.36** (vs. **$0.98 in 2023**)[315](index=315&type=chunk) [Consolidated Statements of Comprehensive Income](index=69&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income increased to $55.3 million in 2024, driven by higher net income, despite negative adjustments from hedging instruments Consolidated Statements of Comprehensive Income (in thousands) | Metric | 2024 | 2023 | 2022 | | :---------------------------------------------- | :-------- | :-------- | :-------- | | Net income | $56,151 | $23,723 | $38,609 | | Other comprehensive income: | | | | | Adjustment for pension and postretirement benefit liability, net of tax | $651 | $3 | $541 | | Adjustment for interest rate swap, net of tax | $(1,495) | $(2,775) | $9,640 | | Adjustment for steel hedging instrument, net of tax | $(40) | $0 | $0 | | Total other comprehensive income, net of tax | $(884) | $(2,772) | $10,181 | | Comprehensive income | $55,267 | $20,951 | $48,790 | - Comprehensive income increased to **$55.3 million in 2024** from **$21.0 million in 2023**[317](index=317&type=chunk) - Other comprehensive income was **negative $0.9 million in 2024**, primarily due to a negative adjustment of **$1.5 million** from interest rate swaps and **$0.04 million** from a steel hedging instrument, partially offset by a positive adjustment of **$0.7 million** for pension and postretirement benefit liability[317](index=317&type=chunk) [Consolidated Statements of Changes in Shareholders' Equity](index=70&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) Shareholders' equity increased to $264.2 million, driven by net income and stock-based compensation, partially offset by dividends and OCI adjustments Consolidated Statements of Changes in Shareholders' Equity (in thousands) | Metric | Balance at Dec 31, 2023 | Net income | Dividends paid | OCI Adjustments | Stock based compensation | Balance at Dec 31, 2024 | | :----------------------------------------- | :---------------------- | :--------- | :------------- | :-------------- | :----------------------- | :---------------------- | | Common Stock (Dollars) | $230 | — | — | — | $1 | $231 | | Additional Paid-in Capital | $165,233 | — | — | — | $4,859 | $170,092 | | Retained Earnings | $59,746 | $56,151 | $(27,477) | — | — | $88,420 | | Accumulated Other Comprehensive Income (Loss) | $6,356 | — | — | $(1,495) | — | $5,472 | | Total | $231,565 | $56,151 | $(27,477) | $(1,495) | $4,860 | $264,215 | - Total shareholders' equity increased by **$32.6 million**, from **$231.6 million at December 31, 2023**, to **$264.2 million at December 31, 2024**[319](index=319&type=chunk) - Key drivers of the change include net income of **$56.2 million** and **$4.9 million** from stock-based compensation, partially offset by **$27.5 million** in dividends paid[319](index=319&type=chunk) [Consolidated Statements of Cash Flows](index=71&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Operating cash flow increased to $41.1 million, investing activities provided $56.8 million (sale-leaseback), while financing used $117.0 million, leading to a $19.0 million cash decrease Consolidated Statements of Cash Flows (in thousands) | Metric | 2024 | 2023 | 2022 | | :-------------------------------------- | :---------- | :---------- | :---------- | | Net cash provided by operating activities | $41,131 | $12,469 | $40,030 | | Net cash provided by (used in) investing activities | $56,792 | $(10,521) | $(12,047) | | Net cash provided by (used in) financing activities | $(116,960) | $1,538 | $(44,277) | | Change in cash and cash equivalents | $(19,037) | $3,486 | $(16,294) | | Cash and cash equivalents at end of year | $5,119 | $24,156 | $20,670 | - Net cash provided by operating activities increased by **$28.7 million** to **$41.1 million in 2024**, primarily due to favorable working capital changes[321](index=321&type=chunk) - Net cash provided by investing activities was **$56.8 million in 2024**, a **$67.3 million increase** from **2023**, mainly due to **$64.2 million** in proceeds from a sale-leaseback transaction[321](index=321&type=chunk) - Net cash used in financing activities increased by **$118.5 million** to **$117.0 million in 2024**, driven by reduced revolver borrowings (**$47.0 million**) and a **$42.0 million** voluntary debt prepayment[321](index=321&type=chunk) [Notes to Consolidated Financial Statements](index=72&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) Notes provide detailed disclosures on business, accounting policies, revenue recognition, critical estimates, liquidity, debt, segment reporting, and recent pronouncements - The company operates in two segments: Work Truck Attachments and Work Truck Solutions, with segment performance evaluated based on net sales and Adjusted EBITDA[324](index=324&type=chunk)[383](index=383&type=chunk)[384](index=384&type=chunk)[385](index=385&type=chunk)[386](index=386&type=chunk) - Revenue recognition policies detail how revenue is recognized for Work Truck Attachments (point-in-time upon shipment) and Work Truck Solutions (net of truck chassis, point-in-time or over time depending on vehicle ownership)[390](index=390&type=chunk)[394](index=394&type=chunk)[398](index=398&type=chunk)[399](index=399&type=chunk) - Critical accounting estimates include revenue recognition, sale-leaseback transactions, and impairment assessments of indefinite-lived intangible assets and goodwill[177](index=177&type=chunk) - The company completed a sale-leaseback transaction in **2024**, selling seven properties for **$64.2 million gross proceeds** and recognizing a **$42.3 million gain**[180](index=180&type=chunk)[418](index=418&type=chunk) - Long-term debt as of **December 31, 2024**, was **$147.5 million**, with a **$42.0 million** voluntary prepayment made in **2024**, and the company uses interest rate swaps and a steel hedging instrument to manage market risks[429](index=429&type=chunk)[435](index=435&type=chunk)[441](index=441&type=chunk)[443](index=443&type=chunk) - In **January 2024**, the company implemented a Cost Savings Program, resulting in **$2.0 million** in restructuring charges and **$1.2 million** in impairment charges related to internally developed software[354](index=354&type=chunk)[511](index=511&type=chunk)[512](index=512&type=chunk) [1. Description of business and basis of presentation](index=72&type=section&id=1.%20Description%20of%20business%20and%20basis%20of%20presentation) [2. Summary of Significant Accounting Policies](index=72&type=section&id=2.%20Summary%20of%20Significant%20Accounting%20Policies) [3. Revenue Recognition](index=83&type=section&id=3.%20Revenue%20Recognition) [4. Inventories](index=87&type=section&id=4.%20Inventories) [5. Property, plant and equipment](index=88&type=section&id=5.%20Property%2C%20plant%20and%20equipment) [6. Leases](index=89&type=section&id=6.%20Leases) [7. Other Intangible Assets](index=91&type=section&id=7.%20Other%20Intangible%20Assets) [8. Long‑Term Debt](index=92&type=section&id=8.%20Long%E2%80%91Term%20Debt) [9. Accrued Expenses and Other Current Liabilities](index=96&type=section&id=9.%20Accrued%20Expenses%20and%20Other%20Current%20Liabilities) [10. Warranty Liability](index=96&type=section&id=10.%20Warranty%20Liability) [11. Income Taxes](index=97&type=section&id=11.%20Income%20Taxes) [12. Employee Retirement Plans](index=99&type=section&id=12.%20Employee%20Retirement%20Plans) [13. Stock Based Compensation](index=102&type=section&id=13.%20Stock%20Based%20Compensation) [14. Earnings Per Share](index=105&type=section&id=14.%20Earnings%20Per%20Share) [15. Commitments and Contingencies](index=105&type=section&id=15.%20Commitments%20and%20Contingencies) [16. Segments](index=105&type=section&id=16.%20Segments) [17. Stockholders' equity](index=108&type=section&id=17.%20Stockholders%27%20equity) [18. Valuation and qualifying accounts](index=108&type=section&id=18.%20Valuation%20and%20qualifying%20accounts) [19. Changes in Accumulated Other Comprehensive Income by Component](index=109&type=section&id=19.%20Changes%20in%20Accumulated%20Other%20Comprehensive%20Income%20by%20Component) [20. Quarterly Financial Information (Unaudited)](index=110&type=section&id=20.%20Quarterly%20Financial%20Information%20%28Unaudited%29) [21. Restructuring and Impairment](index=111&type=section&id=21.%20Restructuring%20and%20Impairment) [22. Recent Accounting Pronouncements](index=111&type=section&id=22.%20Recent%20Accounting%20Pronouncements) [23. Subsequent Events](index=112&type=section&id=23.%20Subsequent%20Events)

Douglas Dynamics, Inc. (NYSE:PLOW) Q4 2024 Earnings Conference Call February 25, 2025 10:00 AM ET Company Participants Nathan Elwell - Vice President of Investor Relations Jim Janik - Chairman and Interim President and CEO Sarah Lauber - Executive Vice President and CFO Mark Van Genderen - COO and President of Work Truck Attachments Conference Call Participants Mike Shlisky - D. A. Davidson Greg Burns - Sidoti and Co Operator Good day, and welcome to the Douglas Dynamics' Fourth Quarter 2024 Earnings Confer ...

Financial Data and Key Metrics Changes - The fourth quarter of 2024 showed improved consolidated results across all metrics compared to the previous year, primarily due to strong growth in the Solutions segment and increased margins in the Attachments segment [4][20] - Net sales were flat at $568.5 million, with gross profit increasing by 9% to $146.8 million, resulting in a gross margin increase of 220 basis points to 25.8% [21][22] - Net income rose to $56.2 million from $23.7 million, driven by a one-time gain from a sale leaseback transaction and improved profitability across both segments [23] Business Line Data and Key Metrics Changes - In the Attachments segment, sales decreased by 12% to $256 million, while adjusted EBITDA declined only 4% to $48.5 million, with an adjusted EBITDA margin improvement of 160 basis points to 18.9% [25] - The Solutions segment achieved record sales of $312.5 million, a 13% increase, and adjusted EBITDA increased by 76% to $30.9 million, with margins improving by 350 basis points to 9.9% [26] Market Data and Key Metrics Changes - Snowfall this winter has been regional, with above-average snowfall in some markets but insufficient snow in core markets like Chicago, New York, and Boston [12][13] - Dealer sentiment remains positive, and inventory levels are decreasing, indicating a strong financial footing for dealers [14] Company Strategy and Development Direction - The company aims to maintain its current dividend and is open to small and medium-sized acquisitions if suitable opportunities arise, while maintaining a disciplined approach [6][7] - The focus remains on long-term growth, with a strong emphasis on operational efficiency and adapting to market conditions [15][19] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the upcoming snow season, expecting it to be better than the previous year, which had significantly low snowfall [12][19] - The company anticipates net sales for 2025 to be between $610 million and $650 million, with adjusted EBITDA projected to range from $75 million to $95 million [31][32] Other Important Information - The company successfully executed a cost savings program in 2024, exceeding expectations and producing pre-tax savings of over $10 million [22] - The total backlog at the end of 2024 was $348 million, an increase of $52 million, driven by strong municipal bookings [24] Q&A Session Summary Question: Weather impact on sales in the South and Southeast - Management noted limited dealer presence in the Deep South but acknowledged some sales in those areas due to snowfall [38][39] Question: Update on private sector growth in the Solutions segment - Growth is primarily seen in the municipal sector, with some softness in the commercial side [40][41] Question: Free cash flow expectations for 2025 - Free cash flow is expected to be at or better than 2024 levels, with improvements in working capital and capital expenditures anticipated [44][45] Question: Regional distribution of snowfall and its impact - Key markets are primarily east of the Mississippi and north of Tennessee, with a strong presence in Canada [53] Question: Future margin improvement in the Solutions segment - Margins are expected to improve through increased throughput and ongoing efficiency initiatives [55]

Douglas Dynamics (PLOW) came out with quarterly earnings of $0.39 per share, beating the Zacks Consensus Estimate of $0.37 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 5.41%. A quarter ago, it was expected that this snowplow maker would post earnings of $0.23 per share when it actually produced earnings of $0.24, delivering a surprise of 4.35%.Over the last four quarters, the co ...

Financial Performance - Full Year 2024 Net Sales reached $568.5 million, a slight increase from $568.2 million in 2023[3] - Full Year Net Income increased significantly to $56.2 million, compared to $23.7 million in 2023, driven by a one-time gain of $42.3 million from a sale leaseback transaction[6] - Adjusted EBITDA for 2024 rose 16.4% to $79.3 million, with an Adjusted EBITDA Margin of 14.0%, up from 12.0% in 2023[6] - Adjusted Diluted EPS increased approximately 45% to $1.47, compared to $1.01 in 2023[4] - Net income for the twelve-month period ended December 31, 2024, reached $56,151 thousand, significantly higher than $23,723 thousand in 2023, marking an increase of 136.5%[25] - Adjusted EBITDA for the twelve-month period ended December 31, 2024, was $79,349,000, up from $68,122,000 in 2023, reflecting a growth of 16.5%[31] - Adjusted net income for the twelve-month period ended December 31, 2024, was $35,167,000, compared to $24,370,000 in 2023, marking an increase of 44.3%[34] - The weighted average diluted earnings per share for the twelve-month period ended December 31, 2024, was $2.36, compared to $0.98 in 2023, representing a significant increase of 140.8%[34] Segment Performance - The Work Truck Solutions segment achieved record full year Net Sales of $312.5 million, a 13.0% increase from $276.5 million in 2023[11] - The Work Truck Attachments segment saw a decline in Net Sales to $256.0 million for 2024, down from $291.7 million in 2023, due to low snowfall impacting demand[5] - The company reported an adjusted EBITDA margin of 16.7% for the Work Truck Attachments segment in Q4 2024, compared to 11.1% in Q4 2023[29] - The Work Truck Solutions segment reported net sales of $89,765 thousand for Q4 2024, up from $78,868 thousand in Q4 2023, an increase of 13.5%[29] Cash Flow and Assets - Operating cash flow for the twelve-month period ended December 31, 2024, was $41,131 thousand, compared to $12,469 thousand in 2023, indicating a significant improvement[27] - Free cash flow for the three-month period ended December 31, 2024, was $70,576,000, slightly down from $73,819,000 in 2023, while the twelve-month free cash flow increased to $33,321,000 from $1,948,000 in 2023[37] - The net cash provided by operating activities for the three-month period ended December 31, 2024, was $74,404,000, compared to $76,617,000 in 2023, showing a decrease of 2.9%[37] - Cash and cash equivalents at the end of the period decreased to $5,119 thousand from $24,156 thousand, a decline of 78.8%[27] - The company’s total assets decreased slightly from $593,418 thousand in 2023 to $589,983 thousand in 2024, a decrease of 0.7%[23] Liabilities and Expenses - Total current liabilities decreased from $118,517 thousand in 2023 to $70,192 thousand in 2024, a reduction of 40.7%[23] - The company incurred restructuring and severance costs of $1,997,000 for the twelve-month period ended December 31, 2024, compared to no such costs in 2023[34] - The company reported an interest expense of $3,144,000 for the three-month period ended December 31, 2024, down from $4,468,000 in 2023, indicating a decrease of 29.7%[31] - Stock-based compensation for the three-month period ended December 31, 2024, was $1,233,000, compared to a negative $3,283,000 in 2023, indicating a positive shift in compensation expenses[34] - The company reported a depreciation expense of $2,231,000 for the three-month period ended December 31, 2024, down from $2,852,000 in 2023, reflecting a decrease of 21.8%[31] Future Outlook - Total backlog at the start of 2025 was approximately $348 million, significantly elevated compared to historical averages[6] - The company expects 2025 Net Sales to be between $610 million and $650 million, with Adjusted EBITDA projected to range from $75 million to $95 million[14] Taxation - The effective tax rate for 2024 was 24.0%, an increase from 18.9% in 2023, influenced by a tax benefit related to investment tax credits in the prior year[6] Quarterly Performance - Net sales for the three-month period ended December 31, 2024, increased to $143,549 thousand, up from $134,245 thousand in the same period of 2023, representing a growth of 9.7%[25] - Net income for the three-month period ended December 31, 2024, was $7,907,000, compared to $7,077,000 for the same period in 2023, representing an increase of 11.7%[31] - Gross profit for the twelve-month period ended December 31, 2024, was $146,837 thousand, compared to $134,270 thousand in 2023, reflecting an increase of 9.4%[25]

Core Insights - Douglas Dynamics, Inc. reported strong financial results for the fourth quarter and full year ended December 31, 2024, driven by record performance in Work Truck Solutions and improved margins in Work Truck Attachments [2][3][5] Financial Performance - Net Sales for FY 2024 reached $568.5 million, a slight increase from $568.2 million in FY 2023 [6] - Net Income for FY 2024 was $56.2 million, significantly up from $23.7 million in FY 2023, reflecting a one-time gain of $42.3 million from a sale leaseback transaction [10][5] - Diluted Earnings Per Share (EPS) increased to $2.36 in FY 2024 from $0.98 in FY 2023 [10][5] - Adjusted Net Income and Adjusted Diluted EPS rose approximately 45% to $35.2 million and $1.47, respectively [5][10] Segment Performance - Work Truck Solutions achieved record full-year results with Net Sales of $312.5 million, up from $276.5 million in FY 2023 [12][8] - Work Truck Attachments saw Net Sales decline to $256.0 million from $291.7 million in FY 2023, impacted by low snowfall in previous winters [11][8] - Adjusted EBITDA for Work Truck Solutions increased 75.6% to $30.9 million, while Work Truck Attachments reported Adjusted EBITDA of $48.5 million, down from $50.6 million [12][11] Cost Management and Efficiency - The 2024 Cost Savings Program exceeded expectations, delivering over $10 million in savings [5][6] - Selling, general, and administrative expenses rose to $91.7 million in FY 2024 from $78.8 million in FY 2023, primarily due to one-time costs [6][10] Capital Allocation and Liquidity - Net Cash Provided by Operating Activities increased significantly from $12.5 million in FY 2023 to $41.1 million in FY 2024 [17][10] - Free Cash Flow for FY 2024 was $33.3 million, a substantial improvement from $1.9 million in FY 2023 [17][10] - The leverage ratio improved to 2.4X at the end of FY 2024, down from slightly below 3.5X at the end of FY 2023 [17][10] 2025 Outlook - The company anticipates Net Sales for 2025 to be between $610 million and $650 million, with Adjusted EBITDA expected to range from $75 million to $95 million [18][14] - The effective tax rate for 2025 is projected to be approximately 24% to 25% [18][14]