Alamo (US:ALG)2024-10-31 20:26Financial Performance - Net sales for Q3 2024 were $401.3 million, a decrease of 4.4% compared to $419.6 million in Q3 2023[2] - Net income for Q3 2024 was $27.4 million, down from $34.9 million in Q3 2023, resulting in a fully diluted EPS of $2.28[4] - Year-to-date net sales for the first nine months of 2024 were $1.2 billion, a decrease of 2.3% compared to the same period in 2023[5] - Gross margin for Q3 2024 was 25.1%, down from 27.2% in Q3 2023[22] - Adjusted net income for Q3 2024, including workforce reduction impact, was $28,631[25] - EBITDA for the nine months ended September 30, 2024, was $170,353, down from $188,835 in the same period of 2023[29] - EBITDA for the three months ended September 30, 2024, was $33,614 thousand, up from $24,696 thousand, indicating a growth of 36.0%[31] - EBITDA margin improved to 15.9% from 14.3% year-over-year, maintaining a consistent margin of 15.9% for the nine months ended September 30, 2024[31] - Income from Operations rose to $27,675 thousand, compared to $19,502 thousand in the prior year, marking an increase of 41.8%[31] - Income from Operations for the nine months ended September 30, 2024, was $80,278 thousand, up from $50,849 thousand, representing a significant increase of 57.9%[31] Sales Performance by Division - Industrial Equipment Division net sales increased by 22.3% to $211.2 million, while Vegetation Management Division net sales decreased by 23.0% to $190.1 million[2] - Vegetation Management segment sales decreased by 23.0% to $190,115 in Q3 2024 from $246,902 in Q3 2023[26] - Industrial Equipment segment sales increased by 22.3% to $211,186 in Q3 2024 from $172,742 in Q3 2023[26] - Net Sales for the three months ended September 30, 2024, reached $211,186 thousand, up from $172,742 thousand in the same period last year, reflecting a growth of 22.1%[31] - For the nine months ended September 30, 2024, Net Sales totaled $617,793 thousand, compared to $507,426 thousand in the same period last year, reflecting a growth of 21.7%[31] Backlog and Capacity - The company's backlog at the end of Q3 2024 was $728.8 million, with a 52% decline in the Vegetation Management Division backlog, while the Industrial Equipment Division backlog grew by 8.5% year-over-year[4] - Backlog for the Vegetation Management division was $185,353 as of September 30, 2024, compared to $390,206 in 2023[30] - Backlog increased to $543,425 thousand from $500,661 thousand year-over-year, representing a growth of approximately 8.5%[31] Cost Management and Workforce - The company is targeting annualized cost savings of $25 to $30 million through ongoing cost-saving initiatives, including workforce reductions and plant consolidations[7] - The company incurred approximately $1.6 million in workforce reduction expenses in Q3 2024 and expects total costs to be between $4.0 million to $4.5 million[7] - The company has reduced its worldwide total production capacity by approximately 8% due to facility consolidations and personnel reductions[12] Debt and Cash Position - Total debt net of cash improved by $126.2 million or 60.0% compared to Q3 2023, totaling $84.1 million[2] - Total debt decreased to $224,166 in Q3 2024 from $323,900 in Q3 2023, with total cash increasing to $140,038[28] Market Outlook - The company anticipates no significant improvement in the agricultural equipment market until late 2025, while expecting strong governmental demand for products into the first half of 2025[13][14] - The company continues to focus on market expansion and new product development as part of its growth strategy[31] - The financial performance indicates a strong operational efficiency and positive outlook for future quarters[31]