NYSE$PLOW

Douglas Dynamics Inc · Q1 2024 earnings

Q1 2024 earnings · · Investor relations

Briefing

Douglas Dynamics' first quarter results for 2024 improved compared to Q1 2023, with the Solutions segment demonstrating strong growth in both revenue and profitability.

Douglas Dynamics reported improved results in the first quarter of 2024 compared to the same period last year. Net sales increased by 16.0% to $95.7 million, and the net loss improved by $4.7 million to $(8.4) million, or $(0.37) of Diluted EPS. The company expanded its 2024 Cost Savings Program to deliver $10+ million in sustainable annualized savings and paid a $0.295 per share cash dividend on March 29, 2024. The company updated its full year outlook based on weather impact and initial pre-season data.

  • Net sales increased 16.0% to $95.7 million.
  • Net loss improved by $4.7 million to $(8.4) million, or $(0.37) of Diluted EPS.
  • The 2024 Cost Savings Program was expanded to deliver $10+ million in sustainable annualized savings.
  • A $0.295 per share cash dividend was paid on March 29, 2024.

Headline financials

Total Revenue

$95.7M

Previous: $82.5M+15.9%
EPS

-$0.37

Previous: -$0.55+32.7%
Gross Profit Margin

19.8%

No prior period
Adjusted EBITDA

$1.53M

No prior period
Adjusted EBITDA Margin

1.6%

No prior period
WTA Adjusted EBITDA

-$4.47M

No prior period
WTA Adjusted EBITDA Margin

-18.7%

No prior period
WTS Adjusted EBITDA

$6M

No prior period
WTS Adjusted EBITDA Margin

8.4%

No prior period
Capital Expenditures

-$774K

Previous: -$1.47M+47.3%
Free Cash Flow

-$9.13M

Previous: -$14.6M+37.4%
Net Income

-$8.35M

Previous: -$13.1M+36.3%
Operating Income

-$6.42M

Previous: -$13.8M+53.5%
Gross Profit

$18.9M

Previous: $11.3M+67.8%
Total Assets

$577M

Previous: $585M-1.4%
Stock-Based Comp

$355K

Previous: $957K-62.9%

Revenue & EPS history

Douglas Dynamics · Revenue · Quarterly

$95.7M

Q1 2024+15.9%vs Q1 2023
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Douglas Dynamics · $126M total across 1 segment · Q3 2023

  • Work Truck Attachments
    $126M+16.5%

Forward guidance

Douglas Dynamics updated its 2024 financial outlook to reflect recent weather patterns and initial pre-season orders. Net Sales are now expected to be between $600 million and $640 million. Adjusted EBITDA is now predicted to range from $70 million to $90 million. Adjusted Earnings Per Share are now expected to be in the range of $1.20 per share to $1.70 per share. The effective tax rate is expected to be approximately 24% to 25%.

Tailwinds

  • Solutions segment continues to have a positive outlook for the year and remains on track to deliver improved top and bottom-line full year results for the third year in a row.
  • The company will fully utilize its flexible manufacturing expertise to adjust production to match demand.
  • The company will continue to make tough but necessary decisions to control costs and defer investments to expand the 2024 Cost Savings Program.
  • The dividend remains the company's top capital allocation priority.
  • Stable to slightly improving supply of chassis and components.

Headwinds

  • Recent unprecedented weather patterns are lengthening the equipment replacement cycle.
  • Net Sales are now expected to be between $600 million and $640 million, compared to the previous ranges of $600 to $660 million.
  • Adjusted EBITDA is now predicted to range from $70 million to $90 million, compared to the previous ranges of $70 to $100 million.
  • Adjusted Earnings Per Share are now expected to be in the range of $1.20 per share to $1.70 per share compared to the previous ranges of $1.20 to $2.10.
  • Core markets will experience average snowfall in the fourth quarter of 2024.

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 2024

Historical avgQ1 2024

+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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