Terex (US:TEX)2023-05-02 15:53Financial Performance - Net sales for Q1 2023 were $1,235.7 million, a 23.3% increase from $1,002.5 million in Q1 2022[12] - Gross profit for Q1 2023 was $278.7 million, up 49.9% from $185.8 million in Q1 2022[12] - Income from continuing operations for Q1 2023 was $109.9 million, compared to $52.3 million in Q1 2022, representing a 109.4% increase[12] - Net income for Q1 2023 was $112.6 million, significantly higher than $51.9 million in Q1 2022, marking a 116.5% increase[12] - Basic earnings per share for Q1 2023 were $1.66, compared to $0.74 in Q1 2022, reflecting a 124.3% increase[12] - The company reported comprehensive income of $138.9 million for Q1 2023, compared to $31.9 million in Q1 2022[12] - Net income for the three months ended March 31, 2023, was $112.6 million, compared to $51.9 million in the same period of 2022, representing a 117% increase[21] - Total net sales for the first quarter of 2023 reached $1,235.7 million, up from $1,002.5 million in Q1 2022, reflecting a growth of 23.3%[43] - Income from operations for the total company was $147.7 million, compared to $74.5 million in the prior year, representing a 97.5% increase[43] - The company recognized an income tax expense of $23.3 million on income of $133.2 million for an effective tax rate of 17.5%, down from 18.5% in the same quarter last year[48] Assets and Liabilities - Total assets as of March 31, 2023, were $3,281.2 million, an increase from $3,118.1 million as of December 31, 2022[15] - Total liabilities as of March 31, 2023, were $1,986.6 million, compared to $1,936.9 million as of December 31, 2022[15] - Retained earnings increased to $1,302.9 million as of March 31, 2023, from $1,200.6 million at the end of 2022[15] - Cash and cash equivalents decreased to $254.2 million as of March 31, 2023, down from $304.1 million as of December 31, 2022[15] - Total inventories as of March 31, 2023, were $1,083.2 million, an increase from $988.4 million as of December 31, 2022[51] - Trade receivables increased to $630.1 million as of March 31, 2023, compared to $547.5 million at December 31, 2022, marking an increase of 15.0%[15] - Stockholders' equity grew to $1,294.6 million at March 31, 2023, up from $1,181.2 million at December 31, 2022, reflecting an increase of 9.6%[15] Cash Flow and Capital Expenditures - The company reported a net cash used in operating activities of $9.1 million for the first quarter of 2023, a significant improvement from a net cash used of $51.7 million in the same period last year[21] - Capital expenditures for the quarter were $20.3 million, slightly higher than $20.1 million in Q1 2022[21] - Net cash provided by operating activities was $9.1 million for the three months ended March 31, 2023, compared to a cash outflow of $51.7 million in the same period of 2022[21] - The company repaid $118.7 million in debt during the three months ended March 31, 2023, while issuing $118.8 million in new debt[21] Segment Performance - The Materials Processing (MP) segment reported net sales of $553.8 million, an increase of 22.3% from $452.7 million in the prior year[43] - The Aerials and Utilities (AWP) segment achieved net sales of $685.9 million, up 24.4% from $551.5 million in Q1 2022[43] - Income from operations for the MP segment was $85.3 million, a 32.2% increase from $64.5 million in the same quarter of 2022[43] - The AWP segment's income from operations rose to $83.1 million, compared to $32.5 million in Q1 2022, marking a significant increase of 155.4%[43] Shareholder Activities - The company repurchased 79,285 shares for $3.7 million during the three months ended March 31, 2023, compared to 508,892 shares for $19.6 million in the same period of 2022[90] - Terex declared a dividend of $0.15 per share in Q1 2023, up from $0.13 per share in Q1 2022, reflecting a 15.38% increase in dividends[91] - The company awarded 0.6 million shares of Restricted Stock Awards with a weighted average fair value of $59.59 per share during the three months ended March 31, 2023[86] Debt and Financing - The Company had $177.0 million of Revolver amounts outstanding as of March 31, 2023, consistent with the amount at December 31, 2022[69] - The weighted average interest rate on the Revolver amounts was 6.52% at March 31, 2023, compared to 6.10% at December 31, 2022[69] - The Credit Agreement requires a minimum interest coverage ratio of 2.5 to 1.0 and a maximum senior secured leverage ratio of 2.75 to 1.0 if borrowings exceed 30% of total revolving credit commitments[68] - The Company was in compliance with all covenants contained in the Credit Agreement as of March 31, 2023[68] Risk Management - The company utilized commodity swaps with an outstanding notional value of $27.8 million as of March 31, 2023, to manage price risk for hot rolled coil steel[56] - The Company had $92.3 million in foreign exchange contracts designated as cash flow hedging instruments at March 31, 2023, up from $7.8 million at December 31, 2022[59] - The notional value of foreign exchange contracts not designated as cash flow hedging instruments increased to $321.4 million at March 31, 2023, from $241.1 million at December 31, 2022[60] - The company recorded a loss of $0.4 million on foreign exchange contracts in the cost of goods sold for the three months ended March 31, 2023[62] Legal and Compliance - The Company is involved in various legal proceedings, with estimated liabilities recorded for probable losses[77]