NYSE$PLOW

Douglas Dynamics Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Reported strong top and bottom-line year-over-year improvements despite ongoing macroeconomic headwinds.

Douglas Dynamics reported a strong third quarter with a 30.1% increase in net sales to $166.1 million and an 88.9% increase in net income to $13.3 million compared to Q3 2021. The company raised and narrowed its 2022 guidance due to the strong quarter results.

  • Net Sales increased by 30.1% to $166.1 million compared to Q3 2021.
  • Net Income increased 88.9% to $13.3 million, resulting in $0.56 of Diluted EPS.
  • Adjusted EBITDA increased 62.2% to $25.1 million.
  • The company raised and narrowed 2022 guidance based on the strong quarter results.

Headline financials

Total Revenue

$166M

Previous: $128M+30.1%
EPS (adj)

$0.57

Previous: $0.29+96.6%
Adjusted EBITDA

$25.1M

No prior period
Adjusted EBITDA Margin

15.1%

No prior period
Capital Expenditures

-$3.37M

Previous: $2.55M-232.1%
Free Cash Flow

$9.91M

Previous: $7.03M+41.0%
Net Income

$13.3M

Previous: $7.03M+88.9%
Operating Income

$19.5M

Previous: $10.4M+87.3%
Gross Profit

$41.3M

Previous: $30.6M+34.7%
Cash & Equivalents

$2.84M

Previous: $7.34M-61.3%
Total Assets

$655M

Previous: $600M+9.1%
Stock-Based Comp

$510K

Previous: $5K+10100.0%

Revenue & EPS history

Douglas Dynamics · Revenue · Quarterly

$166M

Q3 2022+30.1%vs Q3 2021
Beat estimate in 8 of 15 quarters(53%)
ActualEstimate

Revenue by segment

Douglas Dynamics · $166M total across 2 segments · Q3 2022

  • Work Truck Attachments
    $108M
  • Work Truck Solutions
    $57.9M

Forward guidance

The 2022 financial outlook has been raised and narrowed.

Tailwinds

  • Net Sales are expected to be between $600 million and $630 million.
  • Adjusted EBITDA is predicted to range from $80 million to $95 million.
  • Adjusted Earnings Per Share are expected to be in the range of $1.65 per share to $2.05 per share.
  • The effective tax rate is expected to be approximately 24% - 25%.
  • The outlook assumes relatively stable economic conditions, consistent supply chain performance, and our core markets will experience average snowfall levels in fourth quarter 2022.

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 Q3 2022

Historical avgQ3 2022

+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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