Valmont(VMI)2025-02-18 12:14Financial Performance - Full-Year revenue reached $4.08 billion, a decrease of 2.4% compared to $4.17 billion in the previous year[9] - Fourth Quarter net sales increased by 2.1% to $1.04 billion, up from $1.02 billion[5] - Operating income for the Fourth Quarter rose to $120.0 million, representing 11.6% of net sales, compared to $63.5 million or 6.3% of net sales in the prior year[5] - Diluted earnings per share (EPS) for the Fourth Quarter increased to $3.84, a significant rise of 178.3% from $1.38 in the same quarter last year[5] - Operating cash flows surged by 66.9% to $193.4 million, compared to $115.9 million in the previous year[5] - Net sales for the thirteen weeks ended December 28, 2024, were $1,037,294, an increase from $1,015,526 for the same period in 2023, representing a growth of 2.7%[25] - Gross profit for the thirteen weeks ended December 28, 2024, was $313,021, compared to $282,941 in the prior year, reflecting a 10.6% increase[25] - Operating income for the thirteen weeks ended December 28, 2024, reached $119,988, significantly higher than $63,548 in the same quarter of 2023, marking an increase of 88.6%[25] - Earnings per share (EPS) for the thirteen weeks ended December 28, 2024, were $3.88, compared to $1.39 for the same period in 2023, indicating a substantial increase of 179.1%[25] - The company reported a net earnings increase to $78,435 for the thirteen weeks ended December 28, 2024, compared to $34,084 in the same quarter of 2023, a growth of 130.0%[25] - Net earnings for fiscal 2024 were $350,624 thousand, significantly up from $144,912 thousand in fiscal 2023, indicating a year-over-year increase of approximately 142.5%[36] Segment Performance - Infrastructure segment sales grew by 2.1% to $763.6 million, while Agriculture segment sales increased by 2.3% to $278.0 million[8][12] - The Infrastructure segment reported net sales of $760,848 for the thirteen weeks ended December 28, 2024, up from $745,713 in the prior year, a growth of 2.3%[27] - The Agriculture segment's net sales were $276,446 for the thirteen weeks ended December 28, 2024, compared to $269,813 in the same period of 2023, reflecting a 2.4% increase[27] - Year-over-year net sales change shows a decline of 1.8% in Infrastructure and an increase of 5.4% in Agriculture, resulting in a consolidated change of (3.4)% to 3.1%[58] Future Outlook - The company projects 2025 net sales between $4.0 billion and $4.2 billion, with Agriculture net sales expected to decline by approximately 9.5% to 3.5%[16] - The company forecasts a net sales outlook midpoint of $4,100 million for fiscal 2025, reflecting an expected increase of about 0.6% compared to fiscal 2024[38] - Fiscal 2025 net sales outlook ranges from $4,000,000 to $4,200,000, with a low end of $3,025,000 in Infrastructure and $975,000 in Agriculture[58] Capital and Investment - Capital expenditures for 2025 are estimated to be between $140 million and $160 million[16] - The company achieved a return on invested capital of 16.4%[9] - Return on invested capital stands at 16.4%, calculated from an average invested capital of $2,396,436[60] - Average invested capital decreased from $2,513,477 to $2,396,436 during the reporting period[60] Cash Flow and Assets - The company reported a net cash flow from operating activities of $572,678 thousand for fiscal 2024, up from $306,775 thousand in fiscal 2023, indicating an increase of approximately 86.6%[36] - Cash and cash equivalents decreased to $164,315 thousand in fiscal 2024 from $203,041 thousand in fiscal 2023, a decline of about 19.1%[34] - Total current assets decreased from $1,787,629 thousand in fiscal 2023 to $1,683,392 thousand in fiscal 2024, a reduction of approximately 5.8%[34] - The company’s total assets decreased from $3,477,448 thousand in fiscal 2023 to $3,329,972 thousand in fiscal 2024, a reduction of approximately 4.3%[34] Liabilities and Equity - Total liabilities decreased from $2,060,376 thousand in fiscal 2023 to $1,736,359 thousand in fiscal 2024, a decline of about 15.7%[34] - The leverage ratio as of December 28, 2024, was 0.99, indicating a strong balance sheet position[52] Dividends and Shareholder Returns - Cash dividends per share remained stable at $0.60 for both the thirteen weeks ended December 28, 2024, and December 30, 2023[25] - Diluted earnings per share for fiscal 2024 were $17.19, with an anticipated increase to $18.00 for fiscal 2025, representing a growth of approximately 4.7%[38] Miscellaneous - Moody's upgraded the company's credit rating to Baa2, reflecting improved financial performance[5] - The company incurred realignment charges of $31,030 thousand for the thirteen weeks ended December 30, 2023, impacting future stock compensation[47] - Impairment of goodwill and other intangible assets amounted to $140,844 thousand for the fifty-two weeks ended December 30, 2023[46] - The company has ceased considering historical adjustments related to Prospera as relevant for understanding the Agriculture segment's performance moving forward[47] - The effective tax rate for the period is reported at 25.2%, leading to an after-tax operating income of $392,534[60] - The impact of foreign exchange on net sales is estimated at $60,000 for both low and high ends in Infrastructure and Agriculture[58] - Net sales in constant currency show a year-over-year change of (0.4)% in Infrastructure and 6.6% in Agriculture, indicating a consolidated change of (1.1)% to 4.5%[58]