Douglas Dynamics, Inc. (NYSE:PLOW) Q3 2023 Earnings Conference Call October 31, 2023 10:00 AM ET Company Participants Nathan Elwell - VP, IR Robert McCormick - President, CEO & Director Sarah Lauber - EVP, CFO & Secretary Conference Call Participants Michael Shlisky - D.A. Davidson & Co. Timothy Wojs - Robert W. Baird & Co. Gregory Burns - Sidoti & Company Operator Hello, and welcome to the Douglas Dynamics Third Quarter 2023 Earnings Conference Call. [Operator Instructions]. I would now like to turn the co ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ 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: 001-34728 DOUGLAS DYNAMICS, INC. (Exact name of registrant as specified in its charter) (State or other jurisdic ...

Douglas Dynamics, Inc. (NYSE:PLOW) Q2 2023 Earnings Conference Call August 1, 2023 10:00 AM ET Company Participants Nathan Elwell - VP, IR Robert McCormick - President, CEO & Director Sarah Lauber - EVP, CFO & Secretary Conference Call Participants Michael Shlisky - D.A. Davidson & Co. Timothy Wojs - Robert W. Baird & Co. Gregory Burns - Sidoti & Company Operator Hello, and welcome to the Douglas Dynamics Second Quarter 2023 Earnings Conference Call. [Operator Instructions]. Please note, today's event is be ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 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: 001-34728 DOUGLAS DYNAMICS, INC. (Exact name of registrant as specified in its charter) | Title of each class | ...

Financial Data and Key Metrics Changes - The company reported net sales of $82.5 million and gross profit of $11.3 million for Q1 2023, down from $102.6 million and $21.1 million in Q1 2022, respectively, primarily due to lower volumes from reduced snowfall [18][19] - GAAP net loss was $13.1 million or negative $0.58 per diluted share, compared to a loss of $3.9 million or negative $0.18 per diluted share in the prior year [19] - Adjusted EBITDA was negative $7.4 million, a decline from positive $4.6 million in the same period last year, significantly impacted by lower sales volumes [27] Business Line Data and Key Metrics Changes - The Work Truck Attachments segment generated net sales of $19.3 million, down from $45.8 million in Q1 2022, with adjusted EBITDA at negative $10.2 million compared to positive $3 million last year, affected by low snowfall [20] - The Work Truck Solutions segment saw an 11.4% increase in net sales to $63.3 million from $56.8 million in the previous year, with adjusted EBITDA nearly doubling from $1.6 million to $2.9 million, driven by higher volumes and improved pricing [21][12] Market Data and Key Metrics Changes - The snow season ended approximately 14% below the 10-year average, with the East Coast experiencing its lowest snowfall in decades, impacting dealer inventories and preseason orders [28] - Dealer inventories were above the 5-year average at the end of the season, which is expected to affect preseason orders as they restock for the next winter [9] Company Strategy and Development Direction - The company remains committed to achieving $3 of EPS by 2025, viewing the current low snowfall as a short-term issue that does not affect long-term targets [5][24] - The company is implementing a "low snowfall playbook" to mitigate impacts, including curtailing discretionary spending and delaying some investments [28][31] - Positive demand dynamics in snow and ice control are emerging, driven by customer demand for immediate services and an expanding snow belt [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the medium to long-term outlook despite current challenges, noting improvements in material price inflation and labor market conditions [7] - The company anticipates that supply chain disruptions will gradually improve, allowing for growth in the Solutions segment [13][29] - Management emphasized the importance of focusing on controllable factors to enhance profitability and prepare for future growth [45] Other Important Information - SG&A expenses increased to $25.1 million, primarily due to inflationary pressures [26] - The company paid a quarterly cash dividend of $0.295 per share, maintaining its commitment to dividends despite the current challenges [32] Q&A Session Summary Question: How to bridge the gap from 2023 guidance to 2025 targets? - Management identified four key drivers: return to average snowfall, new product introductions, baseline profit improvements, and price versus cost improvements [39] Question: What is the East Coast's significance in the Attachments business? - Management indicated that the East Coast is a significant market, and adjustments in dealer inventories will impact preseason orders [40] Question: Update on chassis supply constraints? - Management noted that while there are pockets of improvement, the situation remains unpredictable, and they are focused on improving baseline profitability in the meantime [44] Question: Will the dividend policy change due to reduced earnings outlook? - Management confirmed that the dividend remains a priority and will not change despite the current challenges [50] Question: Can the company still reach the low end of its guidance with weak snowfall in Q4? - Management stated that the guidance accounts for various snowfall outcomes and that they believe they can still meet the low end of the range [52] Question: Outlook for inventory levels and cash flow? - Management projected decent free cash flow for the year and indicated that inventory levels will normalize as the year progresses [56]

Average Over Past Five Years2: FCF: ~$46 Million FCF as a % of Adjusted Net Income: ~110%3 CapEx: ~2% of Sales | --- | |------------------------| | Strong Balance Sheet | | Growing Free Cash Flow | | Support Growth Plans | $48 $66 $39 $49 $28 $0 $10 $20 $30 $40 $50 $60 $70 $80 2018 2019 2020 2021 2022 Free Cash Flow (FCF)1($ in millions) $46 5-year Avg. 1 Free Cash Flow defined as cash from operating activities less capital expenditures and Free Cash Flow Conversion is defined as Free Cash Flow / cash from ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☒ Annual Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the fiscal year ended December 31, 2022 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 No. 001-34728 DOUGLAS DYNAMICS, INC. (Exact name of registrant as specified in its charter) Delaware (State or other jurisdict ...

Douglas Dynamics, Inc. (NYSE:PLOW) Q4 2022 Earnings Conference Call February 21, 2023 10:00 AM ET Company Participants Sarah Lauber – Executive Vice President and Chief Financial Officer Bob McCormick – President and Chief Executive Officer Conference Call Participants Mike Shlisky – D.A. Davidson Tim Wojs – Baird Greg Burns – Sidoti & Co. Operator Good morning, and welcome to the Douglas Dynamics Fourth Quarter 2022 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Form 10-Q (Mark One) 11270 W Park Place Ste 300 Milwaukee, Wisconsin 53224 For the quarterly period ended September 30, 2022 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: 001-34728 DOUGLAS DYNAMICS, INC. (Exact name of regis ...

Financial Data and Key Metrics Changes - In Q3 2022, net sales increased by 30% to $166.1 million, with gross profit rising by 35% to $41.3 million compared to Q3 2021, driven by increased volume and pricing adjustments [27][28] - GAAP net income reached $13.3 million or $0.56 per diluted share, an increase of approximately 89% from $7 million or $0.30 per diluted share in 2021 [28] - Adjusted EBITDA improved to $25.1 million, up from $15.5 million in the same period last year, reflecting higher volumes and improved price realization [29][30] Business Segment Data and Key Metrics Changes - Work Truck Attachments segment net sales increased by 33% to $108.2 million, with adjusted EBITDA rising by 55% to $22.9 million, attributed to increased volumes and price realization [32][33] - Work Truck Solutions segment reported net sales of $57.9 million, a 25% increase, with adjusted EBITDA improving to $2.2 million from $700,000 in the prior year, despite ongoing supply chain challenges [34][35] Market Data and Key Metrics Changes - Demand for products and services remained strong, with minimal customer order cancellations and a robust backlog, particularly in municipal customers who are less affected by economic downturns [15][16] - The backlog is approximately 15% higher than at the end of 2021, indicating sustained demand despite supply chain constraints [64] Company Strategy and Development Direction - The company is focused on long-term growth initiatives, including vertical integration and new product launches, such as the redesigned pusher plow and the DynaPro dump body [18][20] - The company is open to acquisitions and is in a strong financial position to pursue opportunities, particularly with private family-owned companies [23][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic challenges and maintaining a positive demand outlook, despite supply chain constraints expected to persist into 2023 [26][44] - The company raised and narrowed its 2022 guidance, expecting net sales between $600 million and $630 million and adjusted EBITDA ranging from $80 million to $95 million [42][43] Other Important Information - The company maintained its quarterly cash dividend of $0.29 per share and did not repurchase shares during the quarter, focusing instead on working capital adjustments [41] - Capital expenditures for the first nine months of 2022 totaled $8.9 million, reflecting ongoing investments in growth initiatives [40] Q&A Session Summary Question: Confidence in collecting accounts receivable by year-end - Management expressed confidence in collecting pre-season receivables, noting that the increase in accounts receivable aligns with historical patterns [48] Question: Expectations for margins in Q1 2023 - Management indicated that while they do not foresee significant headwinds dissipating, they are navigating challenges more consistently, which should help margins [51] Question: Chassis supply challenges and shipment increases - Management attributed increased shipments to improved efficiency and productivity, despite ongoing chassis supply challenges [52][53] Question: Planned expansion at DEJANA to handle backlog - Management stated that current facilities have sufficient capacity to handle increased volume when chassis supply improves, without needing additional fixed costs [54] Question: Margin expansion sustainability - Management noted that better price-cost dynamics were observed in Q3 and expect this trend to continue into Q4 and 2023 [58][59] Question: Backlog growth and supply chain status - Management confirmed that while backlog did not grow sequentially, it remains high and is approximately 15% higher than at the end of 2021 [64] Question: Handling increased chassis supply if it becomes available - Management affirmed that they are prepared to handle increased chassis supply efficiently without significant inefficiencies [67]