Valmont Industries, Inc. (NYSE:VMI) Q1 2021 Earnings Conference Call April 22, 2021 9:00 AM ET Company Participants Renee Campbell - VP, IR & Corporate Communications Steve Kaniewski - President and CEO Avner Applbaum - EVP & CFO Conference Call Participants Nathan Jones - Stifel, Nicolaus & Company Brian Drab - William Blair & Company Chris Moore - CJS Securities Brent Thielman - D.A. Davidson & Co. Ryan Connors - Boenning & Scattergood Operator Greetings, and welcome to the Valmont Industries First Quart ...

Financial Data and Key Metrics Changes - Net sales for Q4 2020 were $798.4 million, an increase of $115 million or 16.8% year-over-year, driven by higher sales in the Irrigation and Utility Support Structure segments [8][11] - Full year net sales reached $2.9 billion, growing 4.6% compared to the previous year [11][12] - Fourth quarter operating income was $68.8 million, or 8.6% of sales, up 36% year-over-year [19] - Diluted earnings per share for Q4 were $2.20, a 46% increase compared to last year [19] Business Line Data and Key Metrics Changes - Utility Support Structures sales were $271 million, up 16.9% year-over-year, driven by demand for renewable energy generation [8][12] - Engineered Support Structures sales were $256.1 million, similar to last year, with lower volumes offset by favorable pricing [8][12] - Coatings segment sales were $89.3 million, consistent with last year, but improved sequentially from Q3 [9][12] - Irrigation sales grew nearly 50% year-over-year to $199.3 million, with strong demand across all global regions [9][13] Market Data and Key Metrics Changes - International sales growth was led by the Middle East, Europe, and South America, particularly Brazil, which saw record sales in local currency [10][13] - North American markets showed improved farmer sentiment due to rising agricultural commodity prices [9][13] Company Strategy and Development Direction - The company acquired the remaining 40% stake in Torrent Engineering to enhance its water management solutions [11] - A collaboration with Kazakhstan was announced to develop a center-pivot manufacturing facility, supporting local agriculture [16][17] - The company is focusing on ESG initiatives, with approximately 90% of net sales supporting ESG efforts [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the demand for renewable energy solutions and grid resiliency, with a strong backlog of $1.1 billion at year-end [30] - The company anticipates a solid year in 2021, with expected net sales growth of 9% to 14% year-over-year [25][28] - Management acknowledged challenges from raw material cost increases but is implementing pricing strategies to mitigate impacts [25][26] Other Important Information - The company generated over $200 million in free cash flow through effective working capital management [15] - Capital spending for 2020 was $107 million, with a focus on strategic growth opportunities [23] - The Access Systems product line is being divested as it does not align with the company's long-term strategy [28][50] Q&A Session Summary Question: Operating margin guidance for 2021 - Management indicated that operating margins are expected to improve throughout the year, with initial margins in the 9% to 10% range for Q1 [38][42] Question: North American irrigation growth expectations - Management expects domestic irrigation growth to be around 12% to 15% [46] Question: Access Systems divestiture - The company plans to sell the Access Systems business, which is included in the full-year guidance without any assumed sale [48][50] Question: USS business gross margin headwinds - Management acknowledged that spot orders and rapid steel price increases have created a mismatch, impacting gross margins in the first half of the year [51][52] Question: Utility backlog and capacity - The utility backlog remains strong, and the company has sufficient capacity to meet demand without constraints [59][60] Question: Renewable energy product revenue developments - Management reported increased revenue from both wind towers and solar trackers, with a strong pipeline for 2021 [66]

Valmont Industries, Inc (NYSE:VMI) Q3 2020 Results Conference Call October 22, 2020 9:00 AM ET Company Participants Renee Campbell - Vice President of Investor Relations and Corporate Communications Stephen Kaniewski - President and Chief Executive Officer Avner Applbaum - Executive Vice President and Chief Financial Officer Timothy Francis - Senior Vice President and Corporate Controller Conference Call Participants Christopher Moore - CJS Securities, Inc. Nathan Jones - Stifel Nicolaus Brent Thielman - D. ...

Financial Data and Key Metrics Changes - Net sales for Q2 2020 were $688.8 million, a decline of $12 million or 1.7% compared to the previous year, with sales flat when excluding unfavorable currency impacts [9][10] - Operating income for Q2 was $65.7 million, or 9.5% of sales, which grew 3% compared to last year on comparable sales [24] - Diluted earnings per share for Q2 were $2, an increase of approximately 10% compared to last year [24] Business Line Data and Key Metrics Changes - Engineered Support Structures segment sales were $253.4 million, a decline of 2.1% year-over-year, but flat when excluding currency impacts [10] - Utility Support Structures segment sales grew 10.2% to $231.3 million, driven by increased demand for global transmission products [11] - Coatings segment sales decreased 18.7% to $80 million due to COVID-19 impacts [13] - Irrigation segment sales declined 3% to $150.6 million, with North American sales down 3.7% [13] Market Data and Key Metrics Changes - Strong growth in wireless communication sales, which increased over 7% compared to last year, driven by carrier spending in North America [10] - International sales in irrigation grew organically across all regions, particularly strong demand in Brazil [14] - The global backlog at the end of the quarter was nearly $650 million, including a significant order for lattice structures [12] Company Strategy and Development Direction - The company is focused on acquisitions to enhance growth in adjacent markets and technology leadership, including a majority stake in solbras for solar energy solutions [15][16] - The company aims to expand its product offerings in Ag Tech and irrigation technology, emphasizing sustainability and environmental impact [16][34] - The partnership with Locweld for lattice structures is expected to provide growth opportunities and enhance supply flexibility [40][50] Management's Comments on Operating Environment and Future Outlook - Management noted that the fundamental market drivers remain intact, with government investments in infrastructure expected to support growth [32] - The company anticipates challenges due to potential longer-term economic headwinds but remains confident in its diversified business portfolio [20][21] - Management expressed optimism about the ongoing demand for wireless communication structures and the necessity for grid hardening and renewable energy solutions [32][35] Other Important Information - The company reported solid operating cash flow of $88.2 million for the quarter, leading to a 33% improvement in year-to-date operating cash flows compared to last year [26] - The company has recalibrated its capital spending plans for 2020, expecting to range between $80 million to $90 million [27] Q&A Session Summary Question: Operating margins and expectations for Q3 - Management indicated that Q3 margins are expected to be lower primarily due to seasonal impacts on irrigation and ongoing economic challenges in the coatings market [38] Question: Details on the Locweld partnership - The partnership with Locweld is expected to provide good margins and growth opportunities in the lattice structure market, leveraging cost advantages from India [40] Question: Competitors' pricing actions - Management stated that they will maintain pricing discipline and have not observed significant price erosion in the market despite fluctuations in raw material costs [44][45] Question: Outlook for international irrigation projects - Management noted a strong pipeline of potential international orders driven by food security concerns, although timing may be impacted by currency fluctuations [47] Question: Impact of COVID-19 on cost reductions - Management confirmed that they did not lay off employees due to COVID-19 and incurred additional costs related to safety measures [55] Question: Infrastructure spending outlook - Management suggested that clarity on infrastructure spending will likely emerge after the upcoming election, with state budgets remaining uncertain [57] Question: Productivity impacts from COVID-19 - Management reported productivity gains from reduced travel and remote work, while also noting some additional costs related to safety measures [61] Question: 5G investment trends - Management indicated that while 5G investments are planned, the pandemic has shifted demand towards suburban areas, which may benefit their business [63]

Valmont Industries, Inc. (NYSE:VMI) Q1 2020 Earnings Conference Call April 23, 2020 9:00 AM ET Company Participants Renee Campbell - VP, IR & Corporate Communications Stephen G. Kaniewski - President and CEO Avner M. Applbaum - EVP and CFO Mark C. Jaksich - VP, Finance Timothy P. Francis - SVP & Corporate Controller Conference Call Participants Christopher Moore - CJS Securities Nathan Jones - Stifel, Nicolaus and Company Brian Drab - William Blair Brent Thielman - D.A. Davidson Ryan Connors - Boenning & Sc ...

Market Presence and Expansion - In 2019, approximately 31% of Valmont's net sales were generated from markets outside of North America[6]. - Valmont's strategy includes expanding geographic presence in Europe, the Middle East, and North Africa, particularly for lighting structures[8]. - Valmont expanded its geographic presence in Europe, the Middle East, and North Africa for lighting structures, building manufacturing presences in China and India[8]. - The company operates approximately 270 dealer locations in North America and another 270 dealers in international markets, showcasing its extensive distribution network[39]. Acquisitions and Growth - The company acquired Larson Camouflage in 2019, enhancing its offerings in wireless communication concealment solutions[11]. - The company has made significant acquisitions over the past five years, including a galvanizing business in Texas in 2019[11]. - Valmont's Coatings segment has grown significantly, leveraging expertise in galvanizing to develop a global business segment[10]. Product Development and Innovation - The Utility segment's sales increased in 2018 due to the introduction of prepackaged substations, simplifying installation for customers[7]. - The company leverages its engineering capabilities to develop new products for existing markets, such as tramway structures in Europe[9]. - The company estimates that mechanized irrigation can improve water application efficiency by 40-90% compared to traditional methods, reflecting a strong value proposition for customers[38]. - The company believes mechanized irrigation can improve water application efficiency by 40-90% compared to traditional methods, emphasizing its technological advantage[38]. Financial Performance and Demand - The backlog of orders at the end of the 2019 fiscal year was $924.1 million, up from $644.7 million at the end of 2018, indicating a significant increase in demand[44]. - Utility support structures accounted for $615.0 million of the backlog, a substantial increase from $325.9 million in the previous year[45]. - Irrigation segment net sales included technology sales of $56.7 million in 2019, compared to $45.3 million in 2018 and $43.4 million in 2017, showing a growth trend in technology offerings[35]. - The U.S. electrical transmission grid requires significant investment in the coming years, which is expected to drive demand for electrical utility structures[27]. - The U.S. government funds highway and road improvements, which significantly impacts the demand for Valmont's transportation and commercial lighting products[17]. Competitive Strategy - The competitive strategy focuses on providing high value through product quality, customer service, and timely delivery[22]. - The company competes on the basis of product quality, engineering expertise, and customer service, with a focus on high-value solutions[28]. - The company competes on the basis of product quality, engineering expertise, and customer service, which are critical in maintaining market position[28]. - The company has a competitive edge in the irrigation segment, being a leader among the four main participants in North America[39]. Workforce and Operations - The company employs 9,862 individuals as of December 28, 2019, indicating a stable workforce to support operations[46]. - The company has not experienced extended shortages of steel in recent years due to strong relationships with major steel producers, ensuring material availability[40]. Market Trends - The demand for Valmont's products is driven by infrastructure spending, particularly in the transportation and commercial lighting markets[19]. - The irrigation market is driven by the need for improved yields and cost savings, influenced by factors such as net farm income and commodity prices[36]. - The market for Valmont's communication products is driven by increased demand for wireless communication and data, particularly with the advent of 5G technology[20].

Valmont Industries, Inc. (NYSE:VMI) Q4 2019 Earnings Conference Call February 20, 2020 9:00 AM ET Company Participants Renee Campbell - Vice President, Investor Relations & Corporate Communications Steve Kaniewski - President & Chief Executive Officer Mark Jaksich - Executive Vice President & Chief Financial Officer Tim Francis - Senior Vice President & Corporate Controller Conference Call Participants Chris Moore - CJS Securities Brian Drab - William Blair Jon Braatz - Kansas City Capital Brent Thielman - ...

Valmont Industries, Inc. (NYSE:VMI) Q3 2019 Earnings Conference Call October 24, 2019 9:00 AM ET Company Participants Renee Campbell - VP, IR & Corporate Communications Stephen Kaniewski - President, CEO & Director Mark Jaksich - EVP, CFO & Secretary Conference Call Participants Nathan Jones - Stifel, Nicolaus & Company Christopher Moore - CJS Securities Brent Thielman - D.A. Davidson & Co. Brian Drab - William Blair & Company Jonathan Braatz - Kansas City Capital Associates Renee Campbell Good morning, eve ...