NYSE$ALG

Alamo Group Inc · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Reported record first quarter results with increased net sales and net income despite the beginning of adverse impact from COVID-19 pandemic.

Alamo Group's first quarter 2020 results showed record net sales of $314.4 million, a 20% increase compared to the first quarter of 2019. Net income also reached a record $15.5 million, up 1.8% from the previous year. The results were positively influenced by recent acquisitions but adversely affected by the COVID-19 pandemic in March.

  • Record net income for the first quarter of $15.5 million, up 1.8%.
  • Record net sales for the first quarter of $314.4 million, up 20%.
  • Industrial Division net sales $230.0 million, up 32.5%.
  • Agricultural Division net sales $84.5 million, down 4.4%.

Headline financials

Total Revenue

$314M

Previous: $262M+20.0%
EPS (adj)

$1.29

Previous: $1.30-0.8%
Gross Margin

25.1%

No prior period
Total Backlog

$233M

Previous: $258M-9.8%
Capital Expenditures

-$7.38M

Previous: -$5.28M-39.6%
Free Cash Flow

$8.15M

Previous: $9.97M-18.2%
Net Income

$15.5M

Previous: $15.3M+1.8%
Operating Income

$23.9M

Previous: $22.6M+5.5%
Gross Profit

$78.9M

Previous: $63.3M+24.7%
Cash & Equivalents

$84.4M

Previous: $39M+116.3%
Total Assets

$1.25B

Previous: $852M+46.7%
Stock-Based Comp

$933K

Previous: $627K+48.8%

Revenue & EPS history

Alamo Group · Revenue · Quarterly

$314M

Q1 2020+20%vs Q1 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Alamo Group · $230M total across 1 segment · Q1 2020

  • Industrial Equipment
    $230M+32.6%

Forward guidance

The company anticipates the adverse environment created by the COVID-19 pandemic will impact their second quarter results, with sales potentially down 10-15% from the first quarter. Order bookings need to improve in the second quarter to ensure sufficient orders for the second half of the year.

Tailwinds

  • Company's first priority is and will remain the health and safety of our employees.
  • Company will continue to support the needs of our customers, in accordance with recommended standards for safety and hygiene in the workplace.
  • Company believe we will continue to benefit from our relatively healthy backlog.
  • Pleased that orders received in the first quarter were at a decent pace.
  • Company is taking a number of actions to maintain our financial stability as a company.

Headwinds

  • Level of uncertainty remains high and it is impossible to predict in precise terms how our business will be affected.
  • Adverse environment created by the COVID-19 pandemic, has continued into April and will certainly impact our second quarter results.
  • Disruptions in our supply chain have marginally affected the Company's ability to perform.
  • There were also a few order cancellations but even more customer requests for shipment delays.
  • If the pandemic outlook starts to improve and manufacturing companies can start to operate in a more normal fashion in the second half of 2020, order bookings will have to improve during the second quarter to ensure we have sufficient orders to maintain economic operating levels.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

+0.8%

Avg return

Earnings day

-0.1%

Avg return

5 days after

+0.8%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+23.2%

Q3 2014

Best reaction

-16.2%

Q3 2019

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.3%-4.4%-13.0%
Q4 2025-15.7%-23.0%-23.0%
Q3 2025+0.8%+0.2%-9.3%
Q1 2025+6.9%+12.3%+16.0%
Q4 2024-5.0%-3.3%-1.9%
Q3 2024+8.3%+7.9%+15.5%
Q2 2024-3.3%-9.4%-2.9%
Q1 2024+0.0%+0.1%-2.0%
Q4 2023-5.1%-5.8%-0.1%
Q3 2023+14.0%+14.5%+18.2%
Q2 2023-7.4%-7.4%-9.3%
Q1 2023+1.1%+1.7%+0.7%
Q4 2022+10.8%+13.3%+9.8%
Q3 2022-4.4%-0.9%+1.4%
Q2 2022+4.0%+5.6%+1.0%
Q1 2022-4.7%-9.8%-5.9%
Q4 2021+2.4%+2.7%+9.5%
Q3 2021-1.9%+1.9%-7.8%
Q2 2021+0.1%+2.0%+6.3%
Q1 2021+1.5%+0.4%-5.5%
Q4 2020-5.3%-4.1%-4.9%
Q3 2020+0.0%+3.9%+14.8%
Q2 2020+4.6%+5.6%+9.7%
Q1 2020+3.6%+2.5%+22.6%
Q4 2019-9.5%-6.6%-25.8%
Q3 2019-16.2%-14.4%-10.2%
Q2 2019+9.9%+7.8%+14.7%
Q1 2019-0.1%+1.9%-8.4%
Q4 2018+2.0%+2.5%+5.2%
Q3 2018+6.0%+1.7%-3.5%
Q2 2018+0.7%+1.7%+2.5%
Q1 2018-12.7%-14.6%-14.6%
Q4 2017-4.0%+0.7%-1.1%
Q3 2017+4.0%+4.9%+11.8%
Q2 2017-2.3%-0.9%-1.4%
Q1 2017+4.2%+6.8%+9.8%
Q4 2016-3.1%-3.7%-2.2%
Q3 2016+0.2%+4.3%+14.3%
Q2 2016-3.4%-1.4%-0.5%
Q1 2016+0.7%
Q4 2015+12.5%
Q3 2015+10.8%
Q2 2015-1.8%
Q1 2015-7.1%
Q4 2014+18.5%
Q3 2014+23.2%
Q2 2014+0.5%
Q1 2014-6.1%
Q4 2013+8.5%
Q3 2013+6.4%
Q2 2013+5.3%
Q1 2013+2.4%
Q4 2012+2.7%
Q3 2012-3.8%
Q2 2012-4.2%
Q1 2011-0.3%
Q1 2012+1.2%
Q4 2009+2.5%
Q4 2011+2.5%
Q3 2010-1.0%
Q3 2011-1.0%
Q2 2011-2.6%
Q2 2010-2.6%
Q4 2010-2.6%
Q1 2010+7.7%

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