SEGUIN, Texas, Feb. 27, 2025 /PRNewswire/ — Alamo Staff Inc. (NYSE: ALG) nowadays reported effects for the fourth quarter and monetary yr ended December 31, 2024.

Highlights:

Fourth Quarter Effects:

• Internet Gross sales of $385.3 million, indisposed 7.7% as opposed to prior yr
  • Business Apparatus Section web gross sales of $225.5 million, up 11.0%
  • Crops Control Section web gross sales of $159.8 million, indisposed 25.5%
• Source of revenue from operations of $34.4 million, 8.9% of web gross sales
  • Fourth quarter effects come with roughly $1.0 million in divorce prices
• Internet source of revenue of $28.1 million
• Totally diluted EPS of $2.33 in keeping with proportion; totally diluted EPS of $2.39, with the exception of fourth quarter divorce prices⁽¹⁾

Complete Month Effects:

• Internet Gross sales of $1.629 billion, indisposed 3.6% as opposed to prior yr
  • Business Apparatus Section web gross sales of $843.3 million, up 18.7%
  • Crops Control Section web gross sales of $785.2 million, indisposed 19.8%
• Source of revenue from operations of $164.8 million, 10.1% of web gross sales, double-digit profitability, in spite of marketplace headwinds
  • General have an effect on from value aid efforts in 2024 was once roughly $6.1 million, together with roughly $4.2 million in divorce bills
  • General have an effect on from the hard work clash at Gradall Industries was once roughly $3.6 million
• Internet source of revenue of $115.9 million
• Totally diluted EPS of $9.63 in keeping with proportion; totally diluted EPS of $10.12, with the exception of affects of divorce bills and Gradall clash⁽¹⁾
• Working money wave of $209.8 million pushed by means of disciplined stock control and environment friendly receivables regulate
• General debt was once $220.5 million. General debt web of money was once $23.2 million, representing an growth of $160.1 million or 87.3% in comparison to stop of 2023⁽¹⁾
• Backlog on the stop of the yr was once $668.6 million
• Trailing twelve-month EBITDA of $220.6 million was once 13.5% of Internet Gross sales ⁽¹⁾
• Ongoing value preserve projects, introduced within the 3rd quarter of 2024, stay on course in order annualized financial savings of roughly $25 to $30 million

Fourth Quarter Effects
Fourth quarter 2024 web gross sales of $385.3 million diminished 7.7% in comparison to $417.5 million within the fourth quarter of 2023. Rude margin of $91.8 million or 23.8% of web gross sales declined by means of $17.1 million and 230 foundation issues in comparison to prior yr, as sickness within the forestry and agricultural markets persevered. Endured expansion within the Business Apparatus Section in part offset decrease Crops Control Section margins.

Internet source of revenue was once $28.1 million or $2.33 in keeping with diluted proportion, in comparison to $31.5 million or $2.63 in keeping with diluted proportion within the fourth quarter of 2023.  The Corporate’s backlog on the stop of the fourth quarter of $668.6 million extra wholesome.  Future Crops Control Section backlog normalized to pre-Covid ranges, Business Apparatus Section backlog extra increased.

Complete Month Effects
Internet gross sales of $1.6 billion had been 3.6% underneath the former yr. Rude margin of $412.5 million was once 25.3% of web gross sales in comparison to 2023 improper margin of $453.6 million or 26.8% of web gross sales. Business Apparatus Section web gross sales of $843.3 million grew 18.7%, offsetting decrease Crops Control Section web gross sales of $785.2 million, which declined by means of 19.8% year-on-year.

Internet source of revenue for the yr was once $115.9 million or $9.63 in keeping with diluted proportion, in comparison to $136.2 million or $11.36 in keeping with diluted proportion in 2023.  Working money wave was once $209.8 million, on account of disciplined stock and centered accounts receivable control.  Stock declined year-over-year by means of $34 million or 9% with stepped forward turns.  Accounts receivable declined by means of $56 million or 16% with annualized days gross sales exceptional making improvements to by means of roughly 10 days.

The Corporate’s value aid projects are progressing as anticipated.  Because of those projects, the Corporate incurred roughly $4.2 million in divorce prices and an extra $1.8 million in consolidation bills. Those movements are anticipated in order annualized value financial savings within the space of $25 to $30 million.  A portion of those financial savings materialized in 2024, with additional advantages projected for 2025.

Reflecting the resilience of our industry and our persevered self assurance within the Corporate’s past, we’ve higher our quarterly dividend from $0.26 to $0.30 in keeping with proportion. This 15% building up highlights our sturdy monetary place and loyalty to handing over shareholder price. Our skill to boost the dividend once more demonstrates the power of our money date and our disciplined way to capital allocation, making sure we stability rewarding shareholders with reinvesting in long-term expansion alternatives.

Feedback on Effects

Jeff Leonard, Alamo Staff’s President, and Well-known Government Officer commented, “The Corporate’s fourth quarter efficiency aligned with our expectancies.  The irregular marketplace traits famous in the second one and 3rd quarters remained perceivable because the yr concluded.  Our governmental and business contractor markets remained sturdy within the fourth quarter, and all product teams within the Business Apparatus Section carried out properly. This section completed double digit natural expansion as opposed to the fourth quarter of 2023 and once more delivered sturdy profitability.

Statuses in numerous markets for our Crops Control Apparatus remained difficult.  As have been the case for many of 2024, call for for this Section’s merchandise from the forestry, tree aid and agricultural markets exhibited persevered softness because of upper rates of interest, sickness within the housing sector, decrease commodity costs and huge channel inventories. Because of this, gross sales within the Crops Control Section declined 25% when put next with the fourth quarter of 2023 and profitability remained underneath force.  On the other hand, fourth-quarter form bookings within the Crops Control Section had been the easiest of the yr and sequential backlog was once fairly upper as properly. 

Our in the past introduced value aid and facility consolidation projects have proceeded as deliberate and with the predicted effects.  Staffing ranges around the Corporate had been just about 14% less than on the stop of 2023. Because of the movements taken, and in spite of the softness within the Crops Control markets, the Corporate reported double digit working margin for the overall yr.  Working money wave was once skillful within the fourth quarter and web debt declined to only $23 million.  Our stability sheet bolstered significantly at year-end.

Having a look forward, our outlook for 2025 extra cautiously constructive. With the U.S. nationwide elections now entire, we think task within the governmental and business contractor markets to stay increased.  Future an important medication in our Crops Control markets is not likely within the first part of 2025, we these days watch for a little medication in the second one part of the yr. Form bookings for forestry, tree aid and agricultural apparatus stepped forward sequentially each and every quarter all the way through 2024, and we think this pattern will proceed in 2025.  Crops Control apparatus gross sales in Europe had been additionally modestly upper than within the fourth quarter of 2023 and orders had been up effectively all the way through the fourth quarter of 2024.

We’re intently tracking the prospective have an effect on of price lists and renewed inflation and are making contingency plans to deal with them to preserve profitability.  We imagine we be able to alter our production technique somewhat temporarily to attenuate the have an effect on of cross-border price lists inside of North The usa.  A regime of broad-based reciprocal world price lists might be extra relating to, on the other hand, as this may occasionally building up prices on a large space of business parts.  We can proceed tracking this intently and won’t hesitate to regulate costs to account for value will increase as would possibly transform vital.

The Corporate extra sturdy and well-positioned out there, with a cast bedrock for persevered good fortune. As we sit up for the second one part of 2025, we watch for an stepped forward working circumstance and are inspired by means of the expanding acquisition task in our sector. With a wholesome stability sheet and disciplined monetary technique, we’re in a robust place to capitalize on alternatives as they rise, using long-term price for our shareholders.”

Profits Convention Name
The Corporate will host a convention name to speak about fourth quarter and yr stop 2024 monetary effects on Friday, February 28, 2025 at 10:00 a.m. ET. Website hosting the decision shall be contributors of senior control.

Folks wishing to take part within the convention name will have to dial 833-816-1163 (home) or 412-317-1898 (world). For people not able to connect the decision, a replay shall be to be had till Friday, March 07, 2025 by means of dialing 877-344-7529 (home) or 412-317-0088 (the world over), passcode 8958542.

The reside broadcast of Alamo Staff Inc.’s quarterly convention name shall be to be had on-line on the Corporate’s web site, www.alamo-group.com (underneath “Investor Relations/Events & and Presentations”) on Friday, February 28, 2025, starting at 10:00 a.m. ET. The web replay will apply in a while then the decision ends and shall be archived at the Corporate’s web site for 60 days.

About Alamo Staff
Alamo Staff is a pacesetter within the design, form, distribution, and repair of fine quality apparatus for crops control, infrastructure repairs and alternative packages. Our merchandise come with truck and tractor fastened mowing and alternative crops repairs apparatus, boulevard sweepers, snow removing apparatus, excavators, vacuum vehicles, alternative business apparatus, agricultural implements, forestry apparatus and linked after-market portions and services and products. The Corporate, based in 1969, has roughly 3,750 staff and operates 28 crops in North The usa, Europe, Australia, and Brazil as of December 31, 2024. The company places of work of Alamo Staff Inc. are situated in Seguin, Texas.

Ahead Having a look Statements
This shed comprises forward-looking statements which are made pursuant to the secure harbor provisions of the Non-public Securities Litigation Reform Operate of 1995.  Ahead-looking statements contain recognized and unknown dangers and uncertainties, which would possibly motive the Corporate’s unedited leads to past sessions to fluctuate materially from forecasted effects.  Amongst the ones components which might motive unedited effects to fluctuate materially are refer to:  antagonistic financial situations which might supremacy to a discount in total marketplace call for, provide chain disruptions, hard work constraints, expanding prices because of inflation, problem outbreaks, geopolitical dangers, together with price lists, industry wars, and the consequences of the battle within the Ukraine and the Center East, festival, climate, seasonality, currency-related problems, and alternative possibility components indexed from presen to presen within the Corporate’s SEC studies.  The Corporate does now not adopt any legal responsibility to replace the guidelines contained herein, which speaks best as of this day.

(Tables Apply)

^{(1) It is a non-GAAP monetary measure or alternative knowledge in the case of our GAAP monetary measures that we have got supplied to buyers to bring to permit larger transparency and a deeper working out of our monetary status and working effects.  For a reconciliation of the non-GAAP monetary measure or for a extra graphic rationalization of economic effects, please see “Non-GAAP Financial Measure Reconciliation” underneath and the Attachments thereto.}

Alamo Staff Inc.

Non-GAAP Monetary Measures Reconciliation

From presen to presen, Alamo Staff Inc. would possibly divulge positive “non-GAAP financial measures” at some stage in its profits releases, profits convention yells, monetary shows and in a different way.  For those functions, “GAAP” refers to normally authorised accounting rules in the USA.  The Securities and Change Fee (SEC) defines a “non-GAAP financial measure” as a numerical measure of historic or past monetary efficiency, monetary place, or money flows this is matter to changes that successfully exclude or come with quantities from probably the most at once similar measure calculated and introduced in response to GAAP.  Non-GAAP monetary measures disclosed by means of Alamo Staff are supplied as extra knowledge to buyers to bring to grant them with larger transparency about, or an additional form for assessing, our monetary status and working effects.  Those measures aren’t in response to, or an alternative choice to, GAAP and is also other from, or inconsistent with, non-GAAP monetary measures worn by means of alternative corporations.  Every time we please see a non-GAAP monetary measure, we will be able to additionally normally provide probably the most at once similar monetary measure calculated and introduced in response to GAAP, along side a reconciliation of the variations between the non-GAAP monetary measure we reference and such similar GAAP monetary measure.

Attachment 1 discloses Adjusted Working Source of revenue, Adjusted Internet Source of revenue and Adjusted Diluted EPS,  linked to the have an effect on of non-recurring pieces, which might be non-GAAP monetary measures. Attachment 2 discloses a non-GAAP monetary presentation linked to the have an effect on of foreign money translation on web gross sales by means of section in addition to changes for value aid efforts and the monetary have an effect on of the clash in the second one quarter of the yr. Attachment 3 displays the online alternate in our overall debt web of money and profits sooner than hobby, taxes, depreciation and amortization (“EBITDA”) which is a non-GAAP monetary measure. The Corporate considers this data helpful to buyers to permit higher comparison of period-to-period working efficiency. Attachment 4 displays Section efficiency inclusive of non-GAAP monetary measures akin to backlog and profits sooner than hobby, tax, depreciation and amortization (“EBITDA”).

SOURCE Alamo Staff Inc.