Douglas Dynamics Reports Third Quarter 2024 Results

Core Insights - Douglas Dynamics, Inc. reported a record third quarter in its Solutions segment, with significant profitability improvements and a narrowed full-year outlook for 2024 [1][2]. Financial Performance - Net sales for Q3 2024 were $129.4 million, down from $144.1 million in Q3 2023, primarily due to low snowfall affecting the Attachments segment [3][4]. - Gross profit margin increased to 23.9% in Q3 2024 from 22.3% in Q3 2023, attributed to higher price realization and the 2024 Cost Savings Program [3][4]. - Net income for Q3 2024 was $32.3 million, compared to $5.8 million in the same period last year, while adjusted net income was $5.9 million, slightly down from $6.0 million [4][29]. - Diluted EPS rose to $1.36 in Q3 2024 from $0.24 in Q3 2023 [3][29]. Segment Performance - The Work Truck Attachments segment reported net sales of $60.2 million in Q3 2024, down from $75.9 million in Q3 2023, impacted by low reorder volumes and below-average snowfall [5][6]. - Adjusted EBITDA for the Attachments segment decreased to $8.1 million, with a margin of 13.5% compared to 16.2% in the previous year [5][6]. - The Work Truck Solutions segment achieved net sales of $69.1 million, slightly up from $68.2 million in Q3 2023, with adjusted EBITDA increasing 44% to $7.2 million and a margin of 10.4% [7][8]. Cost Savings and Strategic Initiatives - The 2024 Cost Savings Program is expected to yield $11 to $12 million in sustainable annualized savings, with $9 million anticipated in 2024 [1][3]. - A one-time gain of approximately $42.3 million was realized from a sale leaseback transaction of seven facilities valued at $64.2 million, primarily used to reduce term loan debt [3][4]. Dividend and Liquidity - A cash dividend of $0.295 per share was paid on September 30, 2024, to stockholders of record [1][9]. - Total liquidity as of September 30, 2024, was $90.9 million, consisting of $8.4 million in cash and $82.5 million available under the revolving credit facility [9][10]. 2024 Outlook - The company has adjusted its 2024 financial outlook, now expecting net sales between $570 million and $600 million, down from the previous range of $600 to $640 million [10][11]. - Adjusted EBITDA is now projected to range from $70 million to $80 million, and adjusted EPS is expected to be between $1.20 and $1.60 per share [10][11].