NYSE$PLOW

Douglas Dynamics Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Reported first quarter results with net sales of $82.5 million, but impacted by low snowfall and pre-season orders.

Douglas Dynamics reported lower consolidated results compared to the same period last year due to lower volumes at Work Truck Attachments, which were only partially offset by volume and profitability improvements at Work Truck Solutions. Net Sales were $82.5 million, and the company recorded a Net Loss of $13.1 million, or $(0.58) of Diluted EPS.

  • Delivered Net Sales of $82.5 million.
  • Recorded Net Loss of $13.1 million, or $(0.58) of Diluted EPS.
  • Work Truck Attachments performance impacted by lowest East Coast snowfall season in decades.
  • Work Truck Solutions delivered improved performance compared to 1Q22.

Headline financials

Total Revenue

$82.5M

Previous: $103M-19.5%
EPS (adj)

-$0.55

Previous: -$0.11-400.0%
Capital Expenditures

-$1.47M

Previous: $1.36M-208.3%
Free Cash Flow

-$14.6M

Previous: -$5.94M-145.3%
Net Income

-$13.1M

Previous: -$5.94M-120.6%
Operating Income

-$13.8M

Previous: -$2.94M-369.4%
Gross Profit

$11.3M

Previous: $21.1M-46.5%
Cash & Equivalents

$2.9M

Previous: $8.21M-64.7%
Total Assets

$585M

Previous: $550M+6.3%
Stock-Based Comp

$957K

Previous: $1.9M-49.6%

Revenue & EPS history

Douglas Dynamics · Revenue · Quarterly

$82.5M

Q1 2023-19.5%vs Q1 2022
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Douglas Dynamics · $82.5M total across 2 segments · Q1 2023

  • Work Truck Attachments
    $44.7M
  • Work Truck Solutions
    $37.8M

Forward guidance

The company lowered the top end of its guidance ranges to account for the lower first quarter volumes and anticipated impact on pre-season demand, but the Solutions segment remains on track to show continued margin improvement in 2023 versus a year ago.

Tailwinds

  • Net Sales are expected to be between $620 million and $650 million.
  • Adjusted EBITDA is predicted to range from $85 million to $100 million.
  • Adjusted Earnings Per Share are expected to be in the range of $1.55 per share to $2.00 per share.
  • The effective tax rate is expected to be approximately 24% to 25.
  • The outlook assumes relatively stable economic conditions, slightly improving supply of chassis and components, and that Company’s core markets will experience average snowfall levels in the fourth quarter of 2023.

Headwinds

  • Lack of snow in core East Coast markets caused the company to lower the top end of its guidance ranges.
  • Lower first quarter volumes.
  • Anticipated impact on pre-season demand.
  • The company is not able to provide a reconciliation of the non-GAAP financial measures to GAAP because it does not provide specific guidance for the various extraordinary, nonrecurring, or unusual charges and other certain items.
  • These items have not yet occurred, are out of the Company’s control and/or cannot be reasonably predicted.

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 2023

Historical avgQ1 2023

+1.4%

Avg return

Earnings day

+1.3%

Avg return

5 days after

+0.5%

Avg return

30 days after

55%

36 / 65 earnings

Positive

+17.5%

Q2 2016

Best reaction

-16.1%

Q3 2016

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+14.0%+1.8%+0.3%
Q4 2025+7.0%+7.7%-0.4%
Q3 2025+0.3%+3.6%+8.4%
Q1 2025+4.7%+11.7%+12.8%
Q4 2024+4.3%+4.8%-8.1%
Q3 2024-10.5%-10.5%-0.1%
Q2 2024+17.1%+6.1%+5.6%
Q1 2024+1.2%+5.2%+8.3%
Q4 2023+7.0%+2.5%+1.8%
Q3 2023-3.2%-2.8%+3.6%
Q2 2023+8.1%+4.5%-1.5%
Q1 2023-7.5%-5.4%-3.6%
Q4 2022-1.0%-4.7%-21.4%
Q3 2022+10.4%+9.9%+13.8%
Q2 2022-0.7%+4.5%-8.7%
Q1 2022-1.4%-0.6%+1.6%
Q4 2021-1.7%-0.4%-6.9%
Q3 2021-3.0%+3.2%-7.2%
Q2 2021-3.6%+2.8%-1.2%
Q1 2021+0.1%-0.2%-1.9%
Q4 2020+4.2%+1.0%-6.0%
Q3 2020-0.0%+5.2%+15.0%
Q2 2020+7.4%+11.6%+16.9%
Q1 2020-7.1%-7.3%+7.1%
Q4 2019-2.6%-16.8%-40.1%
Q3 2019+1.5%+8.3%+11.5%
Q2 2019+8.5%+10.1%+4.1%
Q1 2019-5.5%-4.2%-3.8%
Q4 2018+3.2%+10.1%-3.2%
Q3 2018-11.6%-13.6%-19.6%
Q2 2018-3.9%-8.0%-0.4%
Q1 2018+5.8%+6.4%+14.2%
Q4 2017+16.7%+13.9%+13.7%
Q3 2017-3.1%-5.2%-7.4%
Q2 2017+11.5%+9.6%+14.4%
Q1 2017-5.2%-8.3%-4.1%
Q4 2016-1.8%-9.1%-7.4%
Q3 2016-16.1%-16.1%+1.1%
Q2 2016+17.5%+18.8%+19.7%
Q1 2016-4.8%
Q4 2015+4.3%
Q3 2015+7.3%
Q2 2015+13.8%
Q1 2015-4.6%
Q4 2014-4.4%
Q3 2014+1.3%
Q2 2014+7.1%
Q1 2014+0.2%
Q4 2013+3.6%
Q3 2013-0.3%
Q2 2013-3.5%
Q1 2013+1.5%
Q4 2012-1.3%
Q3 2012-1.4%
Q2 2012+2.7%
Q1 2011-5.1%
Q1 2012+0.7%
Q4 2009+2.1%
Q4 2011+2.1%
Q3 2010-2.6%
Q3 2011-2.6%
Q2 2010+5.4%
Q2 2011+5.4%
Q4 2010+5.4%
Q1 2010+0.4%

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