NYSE$PLOW

Douglas Dynamics Inc · Q2 2024 earnings

Q2 2024 earnings · · Investor relations

Briefing

Positive performance driven by Work Truck Solutions growth and success of 2024 cost savings program.

Douglas Dynamics reported second quarter results with profitability improvements despite lower Net Sales impacted by low snowfall, driven by management of throughput, pricing realization, and the successful implementation of the 2024 Cost Savings Program. The Solutions segment continues to grow, while the Attachments segment remains resilient.

  • Solutions segment delivered record second quarter results with 24% Net Sales growth, and a significant increase in profitability
  • Successful implementation of 2024 Cost Savings Program yields additional savings; now expected to deliver $11 - $12 million in sustainable annualized savings
  • Paid $0.295 per share cash dividend on June 28, 2024
  • Maintained 2024 full year outlook

Headline financials

Total Revenue

$200M

Previous: $207M-3.6%
EPS

$1.02

Previous: $1.11-8.1%
Gross Profit Margin

30.7%

No prior period
Adjusted EBITDA

$43.7M

Previous: $43.3M+0.9%
Adjusted EBITDA Margin

21.9%

Previous: 20.9%+4.8%
WTA Adjusted EBITDA

$35.8M

No prior period
WTA Adjusted EBITDA Margin

30.3%

No prior period
WTS Adjusted EBITDA

$7.9M

No prior period
WTS Adjusted EBITDA Margin

9.7%

No prior period
Capital Expenditures

-$1.67M

Previous: -$2.77M+39.7%
Free Cash Flow

$22.7M

Previous: $21.2M+6.9%
Net Income

$24.3M

Previous: $24M+1.6%
Operating Income

$36.3M

Previous: $34.6M+5.0%
Gross Profit

$61.3M

Previous: $61.4M-0.1%
Total Assets

$617M

Previous: $641M-3.8%
Stock-Based Comp

$2.48M

Previous: $3.28M-24.4%

Revenue & EPS history

Douglas Dynamics · Revenue · Quarterly

$200M

Q2 2024-3.6%vs Q2 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

Although preseason orders came in somewhat softer than expected, the company is maintaining its 2024 guidance ranges based on strong Solutions performance and successful realization of savings early into our 2024 Cost Savings Program.

Tailwinds

  • Net Sales are expected to be between $600 million and $640 million.
  • Adjusted EBITDA is predicted to range from $70 million to $90 million.
  • Adjusted Earnings Per Share is 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%.
  • The 2024 financial outlook assumes relatively stable economic conditions.

Headwinds

  • The 2024 financial outlook assumes stable to slightly improving supply of chassis and components.
  • The 2024 financial outlook assumes 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 Q2 2024

Historical avgQ2 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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