Valmont Reports Second Quarter 2024 Results and Raises Full-Year 2024 Diluted Earnings per Share Guidance
Valmont Industries (NYSE: VMI) reported strong Q2 2024 results, raising full-year diluted EPS guidance to $16.50-$17.30. Net sales remained steady at $1.0 billion, while operating income increased 10.2% to $147.3 million. Diluted EPS grew 16.6% to $4.91, including a $0.15 per share tax benefit. The company generated $130.8 million in operating cash flows and returned $27.1 million to shareholders through repurchases and dividends.
The Infrastructure segment saw a slight 1.0% decrease in sales but improved operating income. The Agriculture segment experienced growth in North America due to weather-related replacement sales, offset by lower sales in Brazil. Valmont is adjusting its strategy, exiting low-margin Solar projects and adapting to steel price deflation, leading to revised net sales projections but improved profitability outlook.
Valmont Industries (NYSE: VMI) ha riportato risultati positivi per il secondo trimestre del 2024, alzando le previsioni per l'EPS diluito dell'intero anno a $16.50-$17.30. Le vendite nette sono rimaste stabili a $1,0 miliardo, mentre il reddito operativo è aumentato del 10,2% raggiungendo $147,3 milioni. L'EPS diluito è cresciuto del 16,6% a $4,91, incluso un beneficio fiscale di $0,15 per azione. L'azienda ha generato $130,8 milioni in flussi di cassa operativi e ha restituito $27,1 milioni agli azionisti tramite riacquisti e dividendi.
Il settore Infrastrutture ha registrato una lieve diminuzione delle vendite dell'1,0%, ma ha migliorato il reddito operativo. Il settore Agricoltura ha visto una crescita in Nord America grazie alle vendite di sostituzione legate al clima, compensate da vendite inferiori in Brasile. Valmont sta adeguando la sua strategia, uscendo dai progetti solari a basso margine e adattandosi alla deflazione dei prezzi dell'acciaio, portando a proiezioni di vendite nette riviste ma a una prospettiva di redditività migliorata.
Valmont Industries (NYSE: VMI) reportó sólidos resultados para el segundo trimestre de 2024, elevando la guía de EPS diluido para todo el año a $16.50-$17.30. Las ventas netas se mantuvieron estables en $1,0 mil millones, mientras que el ingreso operativo aumentó un 10,2% a $147,3 millones. El EPS diluido creció un 16,6% a $4,91, incluyendo un beneficio fiscal de $0,15 por acción. La empresa generó $130,8 millones en flujos de caja operativos y devolvió $27,1 millones a los accionistas a través de recompras y dividendos.
El segmento de Infraestructura vio una ligera disminución del 1,0% en las ventas, pero mejoró el ingreso operativo. El segmento de Agricultura experimentó crecimiento en América del Norte debido a las ventas por reemplazo relacionadas con el clima, compensadas por menores ventas en Brasil. Valmont está ajustando su estrategia, saliendo de los proyectos solares de bajo margen y adaptándose a la deflación de los precios del acero, lo que lleva a proyecciones de ventas netas revisadas pero a una mejora en las perspectivas de rentabilidad.
Valmont Industries (NYSE: VMI)는 2024년 2분기 강력한 실적을 보고하며 전체 연도 희석 주당 순이익(EPS) 전망을 $16.50-$17.30로 상향 조정했습니다. 순매출은 $10억으로 안정세를 유지하였고, 영업이익은 10.2% 증가하여 $1억 4,730만에 달했습니다. 희석 EPS는 $4.91로 16.6% 증가했으며, 여기에 주당 $0.15의 세금 혜택이 포함됩니다. 회사는 $1억 3,080만의 영업 현금을 생성하였고, 주식 매입 및 배당을 통해 주주에게 $2,710만을 환원했습니다.
인프라 부문은 판매가 1.0% 감소했지만 영업이익은 개선되었습니다. 농업 부문은 기후 관련 교체 판매 덕분에 북미에서 성장했으나, 브라질에서는 판매가 감소했습니다. Valmont는 저수익 성격의 태양광 프로젝트에서 철수하고 철강 가격의 디플레이션에 적응하며 전략을 조정하고 있으며, 이에 따라 순매출 전망이 수정되었지만 수익성 전망은 개선되고 있습니다.
Valmont Industries (NYSE: VMI) a annoncé de bons résultats pour le deuxième trimestre 2024, rehaussant ses prévisions d'EPS dilué pour l'année entière à $16.50-$17.30. Les ventes nettes sont restées stables à $1,0 milliard, tandis que le revenu opérationnel a augmenté de 10,2% pour atteindre $147,3 millions. L'EPS dilué a progressé de 16,6% à $4,91, incluant un avantage fiscal de $0,15 par action. L'entreprise a généré $130,8 millions de flux de trésorerie d'exploitation et a reversé $27,1 millions aux actionnaires par le biais de rachats et de dividendes.
Le secteur des infrastructures a connu une légère baisse de 1,0% des ventes, mais a amélioré son revenu opérationnel. Le secteur agricole a enregistré une croissance en Amérique du Nord grâce aux ventes de remplacement liées aux conditions climatiques, compensées par des ventes plus faibles au Brésil. Valmont ajuste sa stratégie, se retirant des projets solaires à faible marge et s'adaptant à la déflation des prix de l'acier, entraînant une révision des prévisions de ventes nettes mais une perspective de rentabilité améliorée.
Valmont Industries (NYSE: VMI) berichtete über starke Ergebnisse im zweiten Quartal 2024 und hob die Prognose für den verwässerten Gewinn je Aktie (EPS) im Gesamtjahr auf $16,50-$17,30 an. Der Nettoumsatz blieb mit $1,0 Milliarden stabil, während das Betriebsergebnis um 10,2% auf $147,3 Millionen anstieg. Der verwässerte EPS wuchs um 16,6% auf $4,91, einschließlich eines Steuervorteils von $0,15 pro Aktie. Das Unternehmen generierte $130,8 Millionen an operativen Cashflows und gab $27,1 Millionen an die Aktionäre durch Rückkäufe und Dividenden zurück.
Das Infrastruktursegment verzeichnete einen leichten Rückgang der Verkäufe um 1,0%, verbesserte jedoch das Betriebsergebnis. Das Landwirtschaftssegment erlebte in Nordamerika aufgrund wetterbedingter Ersatzverkäufe Wachstum, wurde jedoch durch geringere Verkäufe in Brasilien kompensiert. Valmont passt seine Strategie an, zieht sich aus margenschwachen Solarprojekten zurück und reagiert auf die Deflation der Stahlpreise, was zu überarbeiteten Netto-Umsatzprognosen führt, aber die Rentabilitätsaussichten verbessert.
- Operating income increased 10.2% to $147.3 million, with margin expansion to 14.2% of net sales
- Diluted EPS grew 16.6% to $4.91, including a $0.15 per share tax benefit
- Generated strong operating cash flows of $130.8 million
- Raised full-year 2024 diluted EPS guidance to $16.50-$17.30
- Infrastructure segment operating income increased to $133.6 million with margin improvement to 17.6%
- North American irrigation equipment volumes significantly higher due to weather-related replacement sales
- Net sales decreased slightly by 0.6% to $1.0 billion
- Gross profit margin declined from 31.5% to 30.8%
- Agriculture segment operating income decreased to $40.0 million with margin contraction to 14.3%
- Significantly lower sales in Brazil due to normalizing backlog levels and lower grain prices
- Lowered full-year net sales growth projections due to exiting low-margin Solar projects and steel price deflation impact
Insights
Valmont Industries' Q2 2024 results demonstrate resilience and strategic execution in a challenging environment. The company's ability to expand operating margins and grow earnings per share is particularly noteworthy. Key highlights include:
- Operating income increased by
10.2% to$147.3 million , with margins expanding from12.8% to14.2% . - Diluted EPS grew
16.6% to$4.91 , including a tax benefit of$3.0 million or$0.15 per share. - Strong cash generation of
$130.8 million from operations, strengthening the balance sheet.
The company's ability to raise full-year 2024 EPS guidance to
Valmont's strategic decision to exit low-margin Solar projects, while potentially impacting top-line growth, should contribute to improved profitability and return on invested capital. The company's focus on pricing strategies and cost structure improvements in both segments is paying off, as evidenced by the expanded operating margins.
Investors should note the company's proactive capital allocation strategy, including
Valmont's Q2 results offer valuable insights into broader market trends affecting the infrastructure and agriculture sectors:
- Infrastructure Segment: The slight decline in sales (
-1.0% ) masks underlying strength in utility structures, offset by weakness in telecommunications and solar. The impact of steel price deflation on contractual pricing highlights the importance of commodity price trends in this sector. - Agriculture Segment: The slight growth in sales reveals divergent regional trends. Severe weather in the U.S. drove replacement sales, while Brazil's market softened due to lower grain prices. This underscores the global nature of agricultural markets and their sensitivity to weather events and commodity prices.
- Supply Chain and Production: Valmont's progress in adjusting and expanding factory output demonstrates ongoing supply chain normalization post-pandemic, a trend seen across multiple industries.
The company's raised EPS guidance, despite lower revenue expectations, suggests a broader trend of companies focusing on profitability and operational efficiency in the face of uncertain demand. This aligns with observations in other industrial sectors where companies are prioritizing margin expansion over top-line growth.
Valmont's commentary on the long-term demand for its products, particularly in the context of energy transition and agricultural market recovery, points to potential future growth drivers. Investors should monitor policy developments and technological advancements in these areas as they could significantly impact Valmont's long-term prospects.
President and Chief Executive Officer Avner M. Applbaum commented, “Our team demonstrated their dedication to enhancing shareholder value by delivering another quarter of operating margin expansion and earnings per share growth. Second quarter results in both segments were driven by commercial and operational execution, pricing strategies, and a fundamentally improved cost structure. Additionally, our Infrastructure segment benefited from declining steel costs, contributing to higher profitability. We are steadily progressing in adjusting and expanding our factory output, creating flexibility to meet the evolving needs of our customers, a strategy that will continue to yield benefits in future quarters. In Agriculture, severe weather in the
Second Quarter 2024 Highlights (all metrics compared to Second Quarter 2023 unless otherwise noted)
-
Net Sales of
$1.0 billion -
Operating Income increased
10.2% to$147.3 million 14.2% of net sales compared to$133.7 million 12.8% of net sales -
Diluted Earnings per Share (EPS) grew
16.6% to$4.91 $4.21 $3.0 million $0.15 -
Generated operating cash flows of
$130.8 million $163.1 million -
Returned
$27.1 million $90.0 million -
Raising full-year 2024 diluted EPS guidance to
$16.50 $17.30 $15.40 $16.40
Key Financial Metrics
|
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|
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|
|
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|
Second Quarter 2024 |
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||||||
(000s except per share amounts) |
|
6/29/2024 |
|
7/1/2023 |
|
|
|
||
|
|
Q2 2024 |
|
Q2 2023 |
|
vs. Q2 2023 |
|
||
Net Sales |
|
$ |
1,039,737 |
|
$ |
1,046,296 |
|
(0.6) |
% |
Gross Profit |
|
|
320,282 |
|
|
329,397 |
|
(2.8) |
% |
Gross Profit as a % of Net Sales |
|
|
30.8 |
% |
|
31.5 |
% |
|
|
Operating Income |
|
|
147,308 |
|
|
133,733 |
|
10.2 |
% |
Operating Income as a % of Net Sales |
|
|
14.2 |
% |
|
12.8 |
% |
|
|
Net Earnings Attributable to Valmont Industries, Inc.1 |
|
|
99,716 |
|
|
89,376 |
|
11.6 |
% |
Diluted Earnings per Share1 |
|
|
4.91 |
|
|
4.21 |
|
16.6 |
% |
Weighted Average Shares Outstanding |
|
|
20,292 |
|
|
21,229 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Year-to-Date 2024 |
|
|
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||||||
(000s except per share amounts) |
|
6/29/2024 |
|
7/1/2023 |
|
|
|
||
|
|
FY 2024 |
|
FY 2023 |
|
vs. FY 2023 |
|
||
Net Sales |
|
$ |
2,017,565 |
|
$ |
2,108,777 |
|
(4.3) |
% |
Gross Profit |
|
|
626,498 |
|
|
637,982 |
|
(1.8) |
% |
Gross Profit as a % of Net Sales |
|
|
31.1 |
% |
|
30.3 |
% |
|
|
Operating Income |
|
|
278,861 |
|
|
252,199 |
|
10.6 |
% |
Operating Income as a % of Net Sales |
|
|
13.8 |
% |
|
12.0 |
% |
|
|
Net Earnings Attributable to Valmont Industries, Inc.1 |
|
|
187,538 |
|
|
163,916 |
|
14.4 |
% |
Diluted Earnings per Share1 |
|
|
9.24 |
|
|
7.67 |
|
20.5 |
% |
Weighted Average Shares Outstanding |
|
|
20,307 |
|
|
21,370 |
|
|
|
1Q2 2024 includes a tax benefit of approximately |
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Second Quarter 2024 Segment Review
Infrastructure (
Products and solutions to serve the infrastructure markets of utility, solar, lighting and transportation, and telecommunications, along with coatings services to protect metal products
Sales of
Operating Income increased to
Agriculture (
Center pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture
Sales of
International sales decreased compared to last year. Sales were significantly lower in
Operating Income was
Balance Sheet, Liquidity, and Capital Allocation
The Company generated operating cash flows of
Updating 2024 Full-Year Financial Outlook and Key Assumptions
The Company is reaffirming its commitment to focus on strategic areas to enhance profitability and return on invested capital. As a result, we are exiting certain low-margin Solar projects leading to an expected decrease of approximately
Metric |
Previous Outlook |
Current Outlook |
Net Sales Change (vs. PY) |
( |
( |
Infrastructure Net Sales
|
Growth Approaching Mid-Single Digits |
Flat to |
Agriculture Net Sales (vs. PY) |
( |
No Change from Previous Outlook |
Diluted Earnings per Share |
|
|
- Steel cost assumptions aligned with hot rolled coil futures market
-
Effective tax rate of approximately
26.0% - Minimal expected foreign currency translation impact on net sales
-
For cash flow purposes, capital expenditures now expected to be in the range of
$95.0 $110.0 million
Applbaum added, “I am pleased that we are increasing our diluted earnings per share outlook for the year even as we are decreasing our net sales guidance. We are improving operating margins as we meet evolving customer needs and are driving toward profitable growth. We remain committed to increasing our output to capitalize on market opportunities as the long-term demand for our products remains strong. Our broad exposure to infrastructure and agriculture markets helps us effectively manage market cycles and share resources across businesses, improving efficiency and returns on investment. We believe these advantages will become increasingly important as the energy transition accelerates and agriculture markets recover. I am confident in our ability to strengthen our core businesses, deliver strong returns on invested capital and enhance shareholder value.”
A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and Timothy P. Francis, Interim Chief Financial Officer, will be accessible by telephone on Thursday, July 25, 2024 at 8:00 a.m. CT by dialing +1 877.407.6184 or +1 201.389.0877 (no Conference ID needed), or via webcast by pointing browsers to this link: Valmont Industries 2Q 2024 Earnings Conference Call. A slide presentation will simultaneously be available for download on the Investors page of valmont.com. A replay of the event can be accessed three hours after the call at the above link or by telephone at +1 877.660.6853 or +1 201.612.7415. Please use access code 13742905. The replay will be available through 10:59 p.m. CT on Thursday, August 1, 2024.
About Valmont Industries, Inc.
For nearly 80 years, Valmont has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.
Concerning Forward-Looking Statements
This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments, and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control), and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include, among other things, risk factors described from time to time in Valmont’s reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.
Website and Social Media Disclosure
The Company uses its website and social media channels identified on its website as channels of distribution of Company information. The information that the Company posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following the Company’s press releases, Securities and Exchange Commission filings, and public conference calls and webcasts. The contents of the Company’s website and social media channels are not part of this press release.
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
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(Dollars and shares in thousands, except per share amounts) |
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(Unaudited) |
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|
|
|
|
|
|
|
|
||||
|
|
Thirteen weeks ended |
|
Twenty-six weeks ended |
||||||||||||
|
|
June 29, |
|
July 1, |
|
June 29, |
|
July 1, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales |
|
$ |
1,039,737 |
|
|
$ |
1,046,296 |
|
|
$ |
2,017,565 |
|
|
$ |
2,108,777 |
|
Cost of sales |
|
|
719,455 |
|
|
|
716,899 |
|
|
|
1,391,067 |
|
|
|
1,470,795 |
|
Gross profit |
|
|
320,282 |
|
|
|
329,397 |
|
|
|
626,498 |
|
|
|
637,982 |
|
Selling, general, and administrative expenses |
|
|
172,974 |
|
|
|
195,664 |
|
|
|
347,637 |
|
|
|
385,783 |
|
Operating income |
|
|
147,308 |
|
|
|
133,733 |
|
|
|
278,861 |
|
|
|
252,199 |
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(15,846 |
) |
|
|
(14,917 |
) |
|
|
(32,067 |
) |
|
|
(28,022 |
) |
Interest income |
|
|
1,499 |
|
|
|
563 |
|
|
|
3,278 |
|
|
|
1,393 |
|
Gain on deferred compensation investments |
|
|
525 |
|
|
|
941 |
|
|
|
1,956 |
|
|
|
2,135 |
|
Gain on divestiture |
|
|
— |
|
|
|
2,994 |
|
|
|
— |
|
|
|
2,994 |
|
Other |
|
|
(1,250 |
) |
|
|
(2,382 |
) |
|
|
(1,355 |
) |
|
|
(4,758 |
) |
Total other income (expenses) |
|
|
(15,072 |
) |
|
|
(12,801 |
) |
|
|
(28,188 |
) |
|
|
(26,258 |
) |
Earnings before income taxes and equity in loss of nonconsolidated subsidiaries |
|
|
132,236 |
|
|
|
120,932 |
|
|
|
250,673 |
|
|
|
225,941 |
|
Income tax expense |
|
|
31,067 |
|
|
|
31,935 |
|
|
|
61,055 |
|
|
|
63,778 |
|
Equity in loss of nonconsolidated subsidiaries |
|
|
(19 |
) |
|
|
(199 |
) |
|
|
(39 |
) |
|
|
(1,020 |
) |
Net earnings |
|
|
101,150 |
|
|
|
88,798 |
|
|
|
189,579 |
|
|
|
161,143 |
|
Loss (earnings) attributable to redeemable noncontrolling interests |
|
|
(1,434 |
) |
|
|
578 |
|
|
|
(2,041 |
) |
|
|
2,773 |
|
Net earnings attributable to Valmont Industries, Inc. |
|
$ |
99,716 |
|
|
$ |
89,376 |
|
|
$ |
187,538 |
|
|
$ |
163,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Basic |
|
|
20,175 |
|
|
|
21,029 |
|
|
|
20,182 |
|
|
|
21,149 |
|
Earnings per share - Basic |
|
$ |
4.94 |
|
|
$ |
4.25 |
|
|
$ |
9.29 |
|
|
$ |
7.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Diluted |
|
|
20,292 |
|
|
|
21,229 |
|
|
|
20,307 |
|
|
|
21,370 |
|
Earnings per share - Diluted |
|
$ |
4.91 |
|
|
$ |
4.21 |
|
|
$ |
9.24 |
|
|
$ |
7.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends per share |
|
$ |
0.60 |
|
|
$ |
0.60 |
|
|
$ |
1.20 |
|
|
$ |
1.20 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
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SUMMARY OPERATING RESULTS |
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(Dollars in thousands) |
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(Unaudited) |
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|
||||
|
|
Thirteen weeks ended |
|
Twenty-six weeks ended |
|
||||||||||||
|
|
June 29, |
|
July 1, |
|
June 29, |
|
July 1, |
|
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
Infrastructure |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
760,430 |
|
|
$ |
768,158 |
|
|
$ |
1,481,163 |
|
|
$ |
1,500,298 |
|
|
Gross profit |
|
|
232,403 |
|
|
|
224,876 |
|
|
|
450,020 |
|
|
|
425,271 |
|
|
as a percent of net sales |
|
|
30.6 |
|
% |
|
29.3 |
|
% |
|
30.4 |
|
% |
|
28.3 |
|
% |
Selling, general, and administrative expenses |
|
|
98,822 |
|
|
|
108,926 |
|
|
|
198,575 |
|
|
|
214,969 |
|
|
as a percent of net sales |
|
|
13.0 |
|
% |
|
14.2 |
|
% |
|
13.4 |
|
% |
|
14.3 |
|
% |
Operating income |
|
|
133,581 |
|
|
|
115,950 |
|
|
|
251,445 |
|
|
|
210,302 |
|
|
as a percent of net sales |
|
|
17.6 |
|
% |
|
15.1 |
|
% |
|
17.0 |
|
% |
|
14.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Agriculture |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Net sales |
|
$ |
279,307 |
|
|
$ |
278,138 |
|
|
$ |
536,402 |
|
|
$ |
608,479 |
|
|
Gross profit |
|
|
87,879 |
|
|
|
104,521 |
|
|
|
176,478 |
|
|
|
212,711 |
|
|
as a percent of net sales |
|
|
31.5 |
|
% |
|
37.6 |
|
% |
|
32.9 |
|
% |
|
35.0 |
|
% |
Selling, general, and administrative expenses |
|
|
47,908 |
|
|
|
55,270 |
|
|
|
95,534 |
|
|
|
110,137 |
|
|
as a percent of net sales |
|
|
17.2 |
|
% |
|
19.9 |
|
% |
|
17.8 |
|
% |
|
18.1 |
|
% |
Operating income |
|
|
39,971 |
|
|
|
49,251 |
|
|
|
80,944 |
|
|
|
102,574 |
|
|
as a percent of net sales |
|
|
14.3 |
|
% |
|
17.7 |
|
% |
|
15.1 |
|
% |
|
16.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Selling, general, and administrative expenses |
|
$ |
26,244 |
|
|
$ |
31,468 |
|
|
$ |
53,528 |
|
|
$ |
60,677 |
|
|
Operating loss |
|
|
(26,244 |
) |
|
|
(31,468 |
) |
|
|
(53,528 |
) |
|
|
(60,677 |
) |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
|||||||||||||
SUMMARY OPERATING RESULTS |
|||||||||||||
(Dollars in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended June 29, 2024 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
582,143 |
|
$ |
161,310 |
|
$ |
(4,686 |
) |
|
$ |
738,767 |
International |
|
|
180,599 |
|
|
120,393 |
|
|
(22 |
) |
|
|
300,970 |
Total sales |
|
$ |
762,742 |
|
$ |
281,703 |
|
$ |
(4,708 |
) |
|
$ |
1,039,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
323,087 |
|
$ |
— |
|
$ |
— |
|
|
$ |
323,087 |
Lighting and Transportation |
|
|
243,562 |
|
|
— |
|
|
— |
|
|
|
243,562 |
Coatings |
|
|
91,574 |
|
|
— |
|
|
(2,294 |
) |
|
|
89,280 |
Telecommunications |
|
|
58,400 |
|
|
— |
|
|
— |
|
|
|
58,400 |
Solar |
|
|
46,119 |
|
|
— |
|
|
(18 |
) |
|
|
46,101 |
Irrigation Equipment and Parts |
|
|
— |
|
|
254,310 |
|
|
(2,396 |
) |
|
|
251,914 |
Technology Products and Services |
|
|
— |
|
|
27,393 |
|
|
— |
|
|
|
27,393 |
Total sales |
|
$ |
762,742 |
|
$ |
281,703 |
|
$ |
(4,708 |
) |
|
$ |
1,039,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended July 1, 2023 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
587,313 |
|
$ |
140,981 |
|
$ |
(3,613 |
) |
|
$ |
724,681 |
International |
|
|
183,282 |
|
|
138,952 |
|
|
(619 |
) |
|
|
321,615 |
Total sales |
|
$ |
770,595 |
|
$ |
279,933 |
|
$ |
(4,232 |
) |
|
$ |
1,046,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
314,307 |
|
$ |
— |
|
$ |
— |
|
|
$ |
314,307 |
Lighting and Transportation |
|
|
246,123 |
|
|
— |
|
|
— |
|
|
|
246,123 |
Coatings |
|
|
91,120 |
|
|
— |
|
|
(1,818 |
) |
|
|
89,302 |
Telecommunications |
|
|
67,738 |
|
|
— |
|
|
— |
|
|
|
67,738 |
Solar |
|
|
51,307 |
|
|
— |
|
|
(619 |
) |
|
|
50,688 |
Irrigation Equipment and Parts |
|
|
— |
|
|
252,457 |
|
|
(1,795 |
) |
|
|
250,662 |
Technology Products and Services |
|
|
— |
|
|
27,476 |
|
|
— |
|
|
|
27,476 |
Total sales |
|
$ |
770,595 |
|
$ |
279,933 |
|
$ |
(4,232 |
) |
|
$ |
1,046,296 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
|||||||||||||
SUMMARY OPERATING RESULTS |
|||||||||||||
(Dollars in thousands) |
|||||||||||||
(Unaudited) |
|||||||||||||
|
|
Twenty-six weeks ended June 29, 2024 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,150,715 |
|
$ |
321,225 |
|
$ |
(9,152 |
) |
|
$ |
1,462,788 |
International |
|
|
335,641 |
|
|
219,213 |
|
|
(77 |
) |
|
|
554,777 |
Total sales |
|
$ |
1,486,356 |
|
$ |
540,438 |
|
$ |
(9,229 |
) |
|
$ |
2,017,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
648,343 |
|
$ |
— |
|
$ |
— |
|
|
$ |
648,343 |
Lighting and Transportation |
|
|
465,658 |
|
|
— |
|
|
— |
|
|
|
465,658 |
Coatings |
|
|
178,664 |
|
|
— |
|
|
(5,120 |
) |
|
|
173,544 |
Telecommunications |
|
|
112,361 |
|
|
— |
|
|
— |
|
|
|
112,361 |
Solar |
|
|
81,330 |
|
|
— |
|
|
(73 |
) |
|
|
81,257 |
Irrigation Equipment and Parts |
|
|
— |
|
|
487,430 |
|
|
(4,036 |
) |
|
|
483,394 |
Technology Products and Services |
|
|
— |
|
|
53,008 |
|
|
— |
|
|
|
53,008 |
Total sales |
|
$ |
1,486,356 |
|
$ |
540,438 |
|
$ |
(9,229 |
) |
|
$ |
2,017,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended July 1, 2023 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,171,396 |
|
$ |
323,850 |
|
$ |
(8,987 |
) |
|
$ |
1,486,259 |
International |
|
|
335,305 |
|
|
288,246 |
|
|
(1,033 |
) |
|
|
622,518 |
Total sales |
|
$ |
1,506,701 |
|
$ |
612,096 |
|
$ |
(10,020 |
) |
|
$ |
2,108,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
629,127 |
|
$ |
— |
|
$ |
— |
|
|
$ |
629,127 |
Lighting and Transportation |
|
|
475,259 |
|
|
— |
|
|
— |
|
|
|
475,259 |
Coatings |
|
|
181,234 |
|
|
— |
|
|
(5,370 |
) |
|
|
175,864 |
Telecommunications |
|
|
135,875 |
|
|
— |
|
|
— |
|
|
|
135,875 |
Solar |
|
|
85,206 |
|
|
— |
|
|
(1,033 |
) |
|
|
84,173 |
Irrigation Equipment and Parts |
|
|
— |
|
|
551,638 |
|
|
(3,617 |
) |
|
|
548,021 |
Technology Products and Services |
|
|
— |
|
|
60,458 |
|
|
— |
|
|
|
60,458 |
Total sales |
|
$ |
1,506,701 |
|
$ |
612,096 |
|
$ |
(10,020 |
) |
|
$ |
2,108,777 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
(Dollars in thousands) |
||||||
(Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
June 29, |
|
December 30, |
||
|
|
2024 |
|
2023 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
163,142 |
|
$ |
203,041 |
Receivables, net |
|
|
703,255 |
|
|
657,960 |
Inventories |
|
|
633,232 |
|
|
658,428 |
Contract assets |
|
|
191,846 |
|
|
175,721 |
Prepaid expenses and other current assets |
|
|
92,560 |
|
|
92,479 |
Total current assets |
|
|
1,784,035 |
|
|
1,787,629 |
Property, plant, and equipment, net |
|
|
604,326 |
|
|
617,394 |
Goodwill and other non-current assets |
|
|
1,068,841 |
|
|
1,072,425 |
Total assets |
|
$ |
3,457,202 |
|
$ |
3,477,448 |
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
|
|
|
|
|
|
AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
569 |
|
$ |
719 |
Notes payable to banks |
|
|
1,876 |
|
|
3,205 |
Accounts payable |
|
|
353,729 |
|
|
358,311 |
Accrued expenses |
|
|
247,524 |
|
|
277,764 |
Contract liabilities |
|
|
68,811 |
|
|
70,978 |
Income taxes payable |
|
|
20,427 |
|
|
— |
Dividends payable |
|
|
12,098 |
|
|
12,125 |
Total current liabilities |
|
|
705,034 |
|
|
723,102 |
Long-term debt, excluding current installments |
|
|
1,017,543 |
|
|
1,107,885 |
Operating lease liabilities |
|
|
154,247 |
|
|
162,743 |
Other non-current liabilities |
|
|
62,648 |
|
|
66,646 |
Total liabilities |
|
|
1,939,472 |
|
|
2,060,376 |
Redeemable noncontrolling interests |
|
|
46,249 |
|
|
62,792 |
Shareholders' equity |
|
|
1,471,481 |
|
|
1,354,280 |
Total liabilities, redeemable noncontrolling interests, and shareholders' equity |
|
$ |
3,457,202 |
|
$ |
3,477,448 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Dollars in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Twenty-six weeks ended |
||||||
|
|
June 29, |
|
July 1, |
||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net earnings |
|
$ |
189,579 |
|
|
$ |
161,143 |
|
Depreciation and amortization |
|
|
46,526 |
|
|
|
48,792 |
|
Contribution to defined benefit pension plan |
|
|
(18,009 |
) |
|
|
(15,259 |
) |
Gain on divestiture |
|
|
— |
|
|
|
(2,994 |
) |
Change in working capital |
|
|
(78,305 |
) |
|
|
(98,979 |
) |
Other |
|
|
14,352 |
|
|
|
16,843 |
|
Net cash flows from operating activities |
|
|
154,143 |
|
|
|
109,546 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant, and equipment |
|
|
(33,328 |
) |
|
|
(45,393 |
) |
Proceeds from divestiture, net of cash divested |
|
|
— |
|
|
|
6,369 |
|
Proceeds from property damage insurance claims |
|
|
— |
|
|
|
4,844 |
|
Other |
|
|
(3,176 |
) |
|
|
134 |
|
Net cash flows from investing activities |
|
|
(36,504 |
) |
|
|
(34,046 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net payments on short-term borrowings |
|
|
(1,275 |
) |
|
|
(4,693 |
) |
Proceeds from long-term borrowings |
|
|
15,009 |
|
|
|
165,012 |
|
Principal payments on long-term borrowings |
|
|
(105,349 |
) |
|
|
(84,105 |
) |
Dividends paid |
|
|
(24,239 |
) |
|
|
(24,376 |
) |
Purchase of redeemable noncontrolling interests |
|
|
(17,745 |
) |
|
|
— |
|
Purchase of treasury shares |
|
|
(14,941 |
) |
|
|
(135,115 |
) |
Other |
|
|
(2,335 |
) |
|
|
(10,877 |
) |
Net cash flows from financing activities |
|
|
(150,875 |
) |
|
|
(94,154 |
) |
Effect of exchange rates on cash and cash equivalents |
|
|
(6,663 |
) |
|
|
155 |
|
Net change in cash and cash equivalents |
|
|
(39,899 |
) |
|
|
(18,499 |
) |
Cash and cash equivalents—beginning of period |
|
|
203,041 |
|
|
|
185,406 |
|
Cash and cash equivalents—end of period |
|
$ |
163,142 |
|
|
$ |
166,907 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724630474/en/
Renee Campbell
renee.campbell@valmont.com
Source: Valmont Industries, Inc.
FAQ
What were Valmont's (VMI) key financial results for Q2 2024?
How did Valmont's (VMI) Infrastructure segment perform in Q2 2024?
What factors affected Valmont's (VMI) Agriculture segment in Q2 2024?
Has Valmont (VMI) updated its 2024 financial outlook?
