Alamo (ALG) - 2025 Q1 - Quarterly Report

PART I. FINANCIAL INFORMATION Interim Condensed Consolidated Financial Statements (Unaudited) The company's total net sales decreased by 8.1% year-over-year to $391.0 million in Q1 2025, primarily due to a significant 26.8% decline in the Vegetation Management segment, which was partially offset by a 12.5% growth in the Industrial Equipment segment. Net income remained relatively stable at $31.8 million. The balance sheet shows an increase in total assets to $1.50 billion, and stockholders' equity grew to $1.06 billion. Cash from operating activities saw a substantial improvement, increasing from $1.1 million to $14.2 million year-over-year Consolidated Statements of Income Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Net Sales | | | | | Vegetation Management | $163,890 | $223,747 | -26.8% | | Industrial Equipment | $227,060 | $201,839 | +12.5% | | Total Net Sales | $390,950 | $425,586 | -8.1% | | Gross Profit | $102,841 | $111,632 | -7.9% | | Income from Operations | $44,462 | $46,979 | -5.4% | | Net Income | $31,800 | $32,120 | -1.0% | | Diluted EPS | $2.64 | $2.67 | -1.1% | Consolidated Balance Sheet Highlights (as of March 31, 2025) | Metric | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | Change | | :--- | :--- | :--- | :--- | | Cash and cash equivalents | $200,274 | $197,274 | +1.5% | | Inventories, net | $356,406 | $343,363 | +3.8% | | Total Assets | $1,504,694 | $1,450,279 | +3.8% | | Total Liabilities | $447,633 | $431,955 | +3.6% | | Total Stockholders' Equity | $1,057,061 | $1,018,254 | +3.8% | Consolidated Statements of Cash Flows Highlights (Q1 2025 vs Q1 2024) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | $14,201 | $1,124 | | Net cash used in investing activities | ($5,892) | ($5,904) | | Net cash (used in) provided by financing activities | ($8,606) | $77,792 | | Net change in cash and cash equivalents | $3,000 | $69,883 | - Dividends declared and paid increased to $0.30 per share in Q1 2025, up from $0.26 per share in Q1 2024[39] Management's Discussion and Analysis of Financial Condition and Results of Operations Management reports a mixed performance in Q1 2025, with a 12% organic sales growth in the Industrial Equipment Division offset by a 27% sales decline in the Vegetation Management Division due to weaker forestry, tree care, and agricultural markets. Overall net sales decreased by 8% to $391.0 million, while net income saw a slight 1% decrease to $31.8 million. Gross profit margins improved slightly due to cost reduction initiatives. The company's backlog decreased by 15% year-over-year to $702.7 million. Liquidity remains strong with $699.5 million in working capital and $397.2 million available under the revolving credit facility - The Industrial Equipment Division experienced 12% organic growth, while the Vegetation Management Division saw a 27% sales decline due to weaker forestry, tree care, and agricultural markets[52][55][56] Q1 2025 vs Q1 2024 Performance Summary | Metric | Q1 2025 | Q1 2024 | Change | | :--- | :--- | :--- | :--- | | Net Sales | $391.0M | $425.6M | -8% | | Net Income | $31.8M | $32.1M | -1% | | Diluted EPS | $2.64 | $2.67 | -1.1% | | Backlog | $702.7M | $831.3M | -15% | - Gross margin improved by approximately 10 basis points compared to Q1 2024, driven by cost reduction initiatives completed in 2024[63] - The company maintains a robust financial position with working capital of $699.5 million and available borrowings of $397.2 million under its credit facility as of March 31, 2025[69][74] - Capital expenditures for Q1 2025 were $6.0 million, with a full-year 2025 forecast of $30.0 million to $35.0 million[70] Quantitative and Qualitative Disclosures About Market Risks The company is exposed to market risks, primarily from foreign currency fluctuations and interest rate changes. A uniform 10% change in the U.S. dollar's value relative to other currencies would impact gross profit by approximately $3.3 million for the quarter. For interest rate risk, a two percentage point change would alter interest expense by about $1.1 million for the quarter. The company uses derivative instruments like forward currency contracts and interest rate swaps to mitigate these risks but does not engage in speculative trading - A uniform 10% strengthening or weakening of the U.S. dollar would change the company's gross profit by approximately $3.3 million for the three-month period ended March 31, 2025[87] - A two percentage point change in the average interest rate on variable-rate debt would have changed the company's interest expense by approximately $1.1 million in Q1 2025[90] - The company's foreign currency translation adjustment for Q1 2025 increased stockholders' equity by $10.8 million[86] Controls and Procedures Based on an evaluation conducted by management, including the CEO and CFO, the company's disclosure controls and procedures were deemed effective as of the end of the period covered by this report. Additionally, there were no material changes to the company's internal control over financial reporting during the last fiscal quarter - Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective at the end of the reporting period[91] - There were no changes in internal control over financial reporting during the last fiscal quarter that have materially affected, or are reasonably likely to materially affect, internal controls[92] PART II. OTHER INFORMATION Legal Proceedings The report refers to the company's Annual Report on Form 10-K for the year ended December 31, 2024, for a description of legal proceedings - For information on legal proceedings, the company refers to its 2024 Form 10-K[93] Risk Factors The company states that there have been no material changes from the risk factors previously disclosed in its Annual Report on Form 10-K for the year ended December 31, 2024 - There have been no material changes from the risk factors previously disclosed in the 2024 Form 10-K[94] Unregistered Sales of Equity Securities and Use of Proceeds The company reported no unregistered sales of equity securities or use of proceeds during the period - None reported[95] Defaults Upon Senior Securities The company reported no defaults upon senior securities - None reported[96] Mine Safety Disclosures This item is not applicable to the company - Not Applicable[97] Other Information The company reported no Form 8-K filings during the quarter. Additionally, no directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement during the period - No Reports on Form 8-K were filed during the period[97][98] - No directors or executive officers adopted or terminated a Rule 10b5-1 trading arrangement or a non-Rule 10b5–1 trading arrangement during the period[99] Exhibits The report lists several exhibits filed concurrently, including CEO and CFO certifications under Sections 302 and 906 of the Sarbanes-Oxley Act, as well as XBRL data files - Exhibits filed include CEO and CFO certifications (31.1, 31.2, 32.1, 32.2) and XBRL data files (101 series)[100]