Valmont Reports Third Quarter 2022 Results
Valmont Industries (NYSE: VMI) reported record third quarter results, with net sales increasing by 26.3% to $1.1 billion. Operating income rose 44.3% to $110 million, and diluted EPS reached $3.34, up 39.2% from last year. A robust backlog of $2.0 billion highlights continued strong demand in infrastructure and agriculture markets. The company updated its 2022 financial outlook, projecting a 22% growth in net sales and adjusted EPS between $13.65 and $14.00. For 2023, Valmont anticipates net sales growth of 6% to 9% and EPS growth of 11% to 15%.
- Record Q3 2022 net sales of $1.1 billion, a 26.3% increase.
- Operating income surged 44.3% to $110 million, representing 10.0% of net sales.
- Diluted EPS of $3.34, a 39.2% year-over-year increase.
- Strong operating cash flows of $116 million and a record backlog of $2.0 billion.
- Ongoing inflation and supply chain volatility present challenges.
- Lower project sales to Egypt impacted agriculture segment performance.
Record Sales and Earnings Reflect Continued Strong Demand Across Infrastructure and Agriculture Markets
Providing Preliminary Sales and Earnings Per Share Guidance for 2023
Third Quarter 2022 Highlights (all metrics compared to Third Quarter 2021 unless otherwise noted)
-
Record Third Quarter
Net Sales of$1.1 billion 26.3% -
Operating Income increased
44.3% to$110.0 million 10.0% of net sales (increased41.9% to$114.1 million 10.4% adjusted1) compared to$76.2 million 8.8% of net sales ($80.4 million 9.3% adjusted1) -
Record Third Quarter Diluted Earnings per Share (EPS) of
$3.34 $3.49 $2.40 $2.57 -
Generated strong third quarter operating cash flows of
$116 million -
Record backlog of
$2.0 billion 25.4% or$412 million -
Returned
$22.4 million
Key Financial Metrics
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Third Quarter 2022 |
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GAAP |
|
Adjusted1 |
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(000's except per share amounts) |
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Q3 2022 |
Q3 2021 |
vs. Q3 2021 |
Q3 2022 |
Q3 2021 |
vs. Q3 2021 |
|||||||||||
|
|
$ |
1,097,382 |
|
$ |
868,782 |
|
26.3 |
% |
|
$ |
1,097,382 |
|
$ |
868,782 |
|
26.3 |
% |
Operating Income |
|
|
109,972 |
|
|
76,195 |
|
44.3 |
% |
|
|
114,147 |
|
|
80,433 |
|
41.9 |
% |
Operating Income as a % of |
|
|
10.0 |
% |
|
8.8 |
% |
|
|
|
|
10.4 |
% |
|
9.3 |
% |
|
|
Net Earnings |
|
|
72,112 |
|
|
51,650 |
|
39.6 |
% |
|
|
75,313 |
|
|
55,284 |
|
36.2 |
% |
Diluted Earnings Per Share |
|
$ |
3.34 |
|
$ |
2.40 |
|
39.2 |
% |
|
$ |
3.49 |
|
$ |
2.57 |
|
35.8 |
% |
Average Shares Outstanding |
|
|
21,605 |
|
|
21,552 |
|
|
|
|
|
21,605 |
|
|
21,552 |
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YTD 2022 |
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GAAP |
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Adjusted1 |
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(000's except per share amounts) |
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FY 2022 |
FY 2021 |
vs. FY 2021 |
FY 2022 |
FY 2021 |
vs. FY 2021 |
|||||||||||
|
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$ |
3,213,734 |
|
$ |
2,538,297 |
|
26.6 |
% |
|
$ |
3,213,734 |
|
$ |
2,538,297 |
|
26.6 |
% |
Operating Income |
|
|
323,533 |
|
|
236,031 |
|
37.1 |
% |
|
|
335,991 |
|
|
248,494 |
|
35.2 |
% |
Operating Income as a % of |
|
|
10.1 |
% |
|
9.3 |
% |
|
|
|
|
10.5 |
% |
|
9.8 |
% |
|
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Net Earnings |
|
|
210,531 |
|
|
168,774 |
|
24.7 |
% |
|
|
220,883 |
|
|
176,060 |
|
25.5 |
% |
Diluted Earnings Per Share |
|
$ |
9.77 |
|
$ |
7.86 |
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24.3 |
% |
|
$ |
10.25 |
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$ |
8.20 |
|
25.0 |
% |
Average Shares Outstanding |
|
|
21,546 |
|
|
21,483 |
|
|
|
|
|
21,546 |
|
|
21,483 |
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|
“I am extremely pleased with the outstanding performance and record results delivered by the entire Valmont team this quarter,” said
Third Quarter 2022 Segment Review
Infrastructure (
Products and solutions to serve the infrastructure markets of utility, renewable energy, lighting, transportation and telecommunications, and coatings services to preserve metal products
Sales of
Operating Income improved to
Agriculture (
Center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture
Sales of
Operating Income improved to
Balance Sheet, Liquidity and Capital Allocation
The Company generated year-to-date operating cash flows of
Updating Full Year 2022 Financial Outlook and Key Assumptions and Providing 2023 Indications
The Company is updating its 2022 full-year net sales and diluted earnings per share outlook that were communicated last quarter and providing updated key assumptions for the year.
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2022 Full Year Financial Outlook |
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Previous Outlook |
Revised Outlook |
Net Sales Growth (vs. PY) |
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~ |
GAAP Diluted EPS1 |
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Adjusted Diluted EPS1 |
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Tax Rate |
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~ |
~ |
FX Translation Impact on |
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~ ( |
~ ( |
Capital Expenditures |
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- Revised net sales growth to reflect third quarter 2022 results
- Revised Diluted EPS to reflect expected mix of earnings and timing of project deliveries
-
Capital expenditures now expected to be in the range of
$95 $105 million -
Providing indicative guidance for 2023 of net sales growth in the range of
6% to9% and diluted EPS growth in the range of11% to15%
Kaniewski continued, “The strong market drivers we are seeing across our businesses, our continued track record of execution and a record backlog of
Added Kaniewski, "Looking ahead to 2023, we believe favorable market conditions and strong demand will continue, and our robust backlog and ongoing pricing strategies across the portfolio give us confidence in revenue and profitability growth next year. In 2023, we expect sales growth of
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About
For over 75 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, the continuing and developing effects of the pandemic including the effects of the outbreak on the general economy and the specific economic effects on the Company’s business and that of its customers and suppliers, risk factors described from time to time in Valmont’s reports to the
1 Please see Reg G reconciliation to GAAP measures at end of document
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS (Dollars in thousands, except per share amounts) (unaudited) |
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Third Quarter |
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Year-to-Date |
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13 Weeks Ended |
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39 Weeks Ended |
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Net sales |
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$ |
1,097,382 |
|
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$ |
868,782 |
|
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$ |
3,213,734 |
|
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$ |
2,538,297 |
|
Cost of sales |
|
|
811,904 |
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|
641,378 |
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2,386,469 |
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1,876,692 |
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Gross profit |
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285,478 |
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|
227,404 |
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|
827,265 |
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|
661,605 |
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Selling, general and administrative expenses |
|
|
175,506 |
|
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|
151,209 |
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|
|
503,732 |
|
|
|
425,574 |
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Operating income |
|
|
109,972 |
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|
|
76,195 |
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|
323,533 |
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|
236,031 |
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Other income (expense) |
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Interest expense |
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(11,629 |
) |
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(11,031 |
) |
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(34,278 |
) |
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(31,466 |
) |
Interest income |
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|
507 |
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|
397 |
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|
1,019 |
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|
894 |
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Gain (loss) on investments (unrealized) |
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(901 |
) |
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|
488 |
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(4,306 |
) |
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|
1,556 |
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Other |
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|
2,822 |
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|
2,644 |
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|
8,537 |
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|
10,297 |
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Other income (expense), net |
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(9,201 |
) |
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|
(7,502 |
) |
|
|
(29,028 |
) |
|
|
(18,719 |
) |
Earnings before income taxes |
|
|
100,771 |
|
|
|
68,693 |
|
|
|
294,505 |
|
|
|
217,312 |
|
Income tax expense |
|
|
27,823 |
|
|
|
16,080 |
|
|
|
80,531 |
|
|
|
46,322 |
|
Equity in loss of nonconsolidated subsidiaries |
|
|
(18 |
) |
|
|
(360 |
) |
|
|
(931 |
) |
|
|
(1,079 |
) |
Net earnings |
|
|
72,930 |
|
|
|
52,253 |
|
|
|
213,043 |
|
|
|
169,911 |
|
Less: earnings attributable to non-controlling interests |
|
|
(818 |
) |
|
|
(603 |
) |
|
|
(2,512 |
) |
|
|
(1,137 |
) |
Net earnings attributable to |
|
$ |
72,112 |
|
|
$ |
51,650 |
|
|
$ |
210,531 |
|
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$ |
168,774 |
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Average shares outstanding (000's) - Basic |
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21,332 |
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|
21,175 |
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|
21,308 |
|
|
|
21,182 |
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Earnings per share - Basic |
|
$ |
3.38 |
|
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$ |
2.44 |
|
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$ |
9.88 |
|
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$ |
7.97 |
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Average shares outstanding (000's) - Diluted |
|
|
21,605 |
|
|
|
21,552 |
|
|
|
21,546 |
|
|
|
21,483 |
|
Earnings per share - Diluted |
|
$ |
3.34 |
|
|
$ |
2.40 |
|
|
$ |
9.77 |
|
|
$ |
7.86 |
|
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|
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Cash dividends per share |
|
$ |
0.55 |
|
|
$ |
0.50 |
|
|
$ |
1.65 |
|
|
$ |
1.50 |
|
SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) |
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Third Quarter |
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Year-to-Date |
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13 Weeks Ended |
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39 Weeks Ended |
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Net sales |
|
|
|
|
|
|
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|
|
|
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|
||||
Infrastructure |
|
$ |
778,353 |
|
|
$ |
634,283 |
|
|
$ |
2,224,029 |
|
|
$ |
1,801,533 |
|
Agriculture |
|
|
327,261 |
|
|
|
240,331 |
|
|
|
1,011,606 |
|
|
|
751,960 |
|
Total |
|
|
1,105,614 |
|
|
|
874,614 |
|
|
|
3,235,635 |
|
|
|
2,553,493 |
|
Less: Intersegment sales |
|
|
(8,232 |
) |
|
|
(5,832 |
) |
|
|
(21,901 |
) |
|
|
(15,196 |
) |
Total |
|
$ |
1,097,382 |
|
|
$ |
868,782 |
|
|
$ |
3,213,734 |
|
|
$ |
2,538,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Infrastructure |
|
$ |
93,572 |
|
|
$ |
71,422 |
|
|
$ |
255,722 |
|
|
$ |
187,421 |
|
Agriculture |
|
|
43,258 |
|
|
|
27,735 |
|
|
|
138,779 |
|
|
|
108,467 |
|
Corporate |
|
|
(26,858 |
) |
|
|
(22,962 |
) |
|
|
(70,968 |
) |
|
|
(59,857 |
) |
Total |
|
$ |
109,972 |
|
|
$ |
76,195 |
|
|
$ |
323,533 |
|
|
$ |
236,031 |
|
Valmont has aggregated its business segments into two global reportable segments as follows.
Infrastructure: This segment consists of the manufacture and distribution of products and solutions to serve infrastructure markets of utility, renewable energy, lighting, transportation and telecommunications, and coatings services to preserve metal products.
Agriculture: This segment consists of the manufacture of center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture.
SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) |
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Thirteen weeks ended |
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Intersegment |
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|
|
Infrastructure |
|
Agriculture |
|
Sales |
|
Consolidated |
|||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
579,628 |
|
$ |
178,626 |
|
$ |
(7,114 |
) |
|
$ |
751,140 |
International |
|
|
198,725 |
|
|
148,635 |
|
|
(1,118 |
) |
|
|
346,242 |
Total |
|
$ |
778,353 |
|
$ |
327,261 |
|
$ |
(8,232 |
) |
|
$ |
1,097,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Substation |
|
$ |
304,781 |
|
$ |
— |
|
$ |
— |
|
|
$ |
304,781 |
Lighting and Transportation |
|
|
241,590 |
|
|
— |
|
|
— |
|
|
|
241,590 |
Coatings |
|
|
91,969 |
|
|
— |
|
|
(3,994 |
) |
|
|
87,975 |
Telecommunications |
|
|
92,830 |
|
|
— |
|
|
— |
|
|
|
92,830 |
Renewable Energy |
|
|
47,183 |
|
|
— |
|
|
(1,118 |
) |
|
|
46,065 |
Irrigation Equipment and Parts, |
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding Technology |
|
|
— |
|
|
303,003 |
|
|
(3,120 |
) |
|
|
299,883 |
Technology Products and Services |
|
|
— |
|
|
24,258 |
|
|
— |
|
|
|
24,258 |
Total |
|
$ |
778,353 |
|
$ |
327,261 |
|
$ |
(8,232 |
) |
|
$ |
1,097,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended |
|||||||||||
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
||
|
|
Infrastructure |
|
Agriculture |
|
Sales |
|
Consolidated |
|||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
439,610 |
|
$ |
116,308 |
|
$ |
(5,832 |
) |
|
$ |
550,086 |
International |
|
|
194,673 |
|
|
124,023 |
|
|
— |
|
|
|
318,696 |
Total |
|
$ |
634,283 |
|
$ |
240,331 |
|
$ |
(5,832 |
) |
|
$ |
868,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Substation |
|
$ |
239,572 |
|
$ |
— |
|
$ |
— |
|
|
$ |
239,572 |
Lighting and Transportation |
|
|
217,962 |
|
|
— |
|
|
— |
|
|
|
217,962 |
Coatings |
|
|
76,761 |
|
|
— |
|
|
(1,826 |
) |
|
|
74,935 |
Telecommunications |
|
|
63,088 |
|
|
— |
|
|
— |
|
|
|
63,088 |
Renewable Energy |
|
|
36,900 |
|
|
— |
|
|
— |
|
|
|
36,900 |
Irrigation Equipment and Parts, |
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding Technology |
|
|
— |
|
|
218,892 |
|
|
(4,006 |
) |
|
|
214,886 |
Technology Products and Services |
|
|
— |
|
|
21,439 |
|
|
— |
|
|
|
21,439 |
Total |
|
$ |
634,283 |
|
$ |
240,331 |
|
$ |
(5,832 |
) |
|
$ |
868,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine weeks ended |
|||||||||||
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
||
|
|
Infrastructure |
|
Agriculture |
|
Sales |
|
Consolidated |
|||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,645,472 |
|
$ |
564,369 |
|
$ |
(20,316 |
) |
|
$ |
2,189,525 |
International |
|
|
578,557 |
|
|
447,237 |
|
|
(1,585 |
) |
|
|
1,024,209 |
Total |
|
$ |
2,224,029 |
|
$ |
1,011,606 |
|
$ |
(21,901 |
) |
|
$ |
3,213,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Substation |
|
$ |
882,216 |
|
$ |
— |
|
$ |
— |
|
|
$ |
882,216 |
Lighting and Transportation |
|
|
701,009 |
|
|
— |
|
|
— |
|
|
|
701,009 |
Coatings |
|
|
264,266 |
|
|
— |
|
|
(11,295 |
) |
|
|
252,971 |
Telecommunications |
|
|
232,765 |
|
|
— |
|
|
— |
|
|
|
232,765 |
Renewable Energy |
|
|
143,773 |
|
|
— |
|
|
(1,118 |
) |
|
|
142,655 |
Irrigation Equipment and Parts, |
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding Technology |
|
|
— |
|
|
928,622 |
|
|
(9,488 |
) |
|
|
919,134 |
Technology Products and Services |
|
|
— |
|
|
82,984 |
|
|
— |
|
|
|
82,984 |
Total |
|
$ |
2,224,029 |
|
$ |
1,011,606 |
|
$ |
(21,901 |
) |
|
$ |
3,213,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine weeks ended |
|||||||||||
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
||
|
|
Infrastructure |
|
Agriculture |
|
Sales |
|
Consolidated |
|||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,246,512 |
|
$ |
395,096 |
|
$ |
(15,196 |
) |
|
$ |
1,626,412 |
International |
|
|
555,021 |
|
|
356,864 |
|
|
— |
|
|
|
911,885 |
Total |
|
$ |
1,801,533 |
|
$ |
751,960 |
|
$ |
(15,196 |
) |
|
$ |
2,538,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution and Substation |
|
$ |
668,474 |
|
$ |
— |
|
$ |
— |
|
|
$ |
668,474 |
Lighting and Transportation |
|
|
609,725 |
|
|
— |
|
|
— |
|
|
|
609,725 |
Coatings |
|
|
231,900 |
|
|
— |
|
|
(7,823 |
) |
|
|
224,077 |
Telecommunications |
|
|
162,830 |
|
|
— |
|
|
— |
|
|
|
162,830 |
Renewable Energy |
|
|
128,604 |
|
|
— |
|
|
— |
|
|
|
128,604 |
Irrigation Equipment and Parts, |
|
|
|
|
|
|
|
|
|
|
|
|
|
excluding Technology |
|
|
— |
|
|
679,600 |
|
|
(7,373 |
) |
|
|
672,227 |
Technology Products and Services |
|
|
— |
|
|
72,360 |
|
|
— |
|
|
|
72,360 |
Total |
|
$ |
1,801,533 |
|
$ |
751,960 |
|
$ |
(15,196 |
) |
|
$ |
2,538,297 |
CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
|
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
166,221 |
|
$ |
177,232 |
Accounts receivable, net |
|
|
614,411 |
|
|
571,593 |
Inventories |
|
|
746,282 |
|
|
728,834 |
Contract asset - costs and profits in excess of billings |
|
|
215,684 |
|
|
142,643 |
Prepaid expenses and other assets |
|
|
107,476 |
|
|
83,646 |
Refundable income taxes |
|
|
— |
|
|
8,815 |
Total current assets |
|
|
1,850,074 |
|
|
1,712,763 |
Property, plant and equipment, net |
|
|
596,850 |
|
|
598,605 |
|
|
|
1,174,805 |
|
|
1,135,881 |
|
|
$ |
3,621,729 |
|
$ |
3,447,249 |
|
|
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
2,106 |
|
$ |
4,884 |
Notes payable to banks |
|
|
4,935 |
|
|
13,439 |
Accounts payable |
|
|
376,508 |
|
|
347,841 |
Accrued expenses |
|
|
261,900 |
|
|
253,330 |
Contract liability - billings in excess of costs and earnings |
|
|
200,341 |
|
|
135,746 |
Income taxes payable |
|
|
10,668 |
|
|
— |
Dividend payable |
|
|
11,733 |
|
|
10,616 |
Total current liabilities |
|
|
868,191 |
|
|
765,856 |
Long-term debt, excluding current installments |
|
|
935,129 |
|
|
947,072 |
Operating lease liabilities |
|
|
156,860 |
|
|
147,759 |
Other long-term liabilities |
|
|
88,798 |
|
|
172,965 |
Shareholders' equity |
|
|
1,572,751 |
|
|
1,413,597 |
|
|
$ |
3,621,729 |
|
$ |
3,447,249 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
39 Weeks Ended |
||||||
|
|
|
|
|
||||
Cash flows from operating activities |
|
|
|
|
|
|
||
Net Earnings |
|
$ |
213,043 |
|
|
$ |
169,911 |
|
Depreciation and amortization |
|
|
72,803 |
|
|
|
67,764 |
|
Contribution to defined benefit pension plan |
|
|
(17,155 |
) |
|
|
(970 |
) |
Change in working capital |
|
|
(96,995 |
) |
|
|
(183,030 |
) |
Other |
|
|
12,030 |
|
|
|
8,154 |
|
Net cash flows from operating activities |
|
|
183,726 |
|
|
|
61,829 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities |
|
|
|
|
|
|
||
Purchase of property, plant, and equipment |
|
|
(67,122 |
) |
|
|
(80,509 |
) |
Acquisitions |
|
|
(39,287 |
) |
|
|
(312,500 |
) |
Other |
|
|
(37 |
) |
|
|
3,546 |
|
Net cash flows from investing activities |
|
|
(106,446 |
) |
|
|
(389,463 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities |
|
|
|
|
|
|
||
Proceeds from long-term borrowings |
|
|
235,470 |
|
|
|
236,710 |
|
Principal payments on long-term borrowings |
|
|
(251,155 |
) |
|
|
(66,128 |
) |
Net payments on short-term borrowings |
|
|
(8,229 |
) |
|
|
(20,463 |
) |
Purchase of treasury shares |
|
|
(20,491 |
) |
|
|
(24,101 |
) |
Purchase of noncontrolling interest |
|
|
(7,338 |
) |
|
|
— |
|
Dividends paid |
|
|
(34,080 |
) |
|
|
(30,794 |
) |
Other |
|
|
6,680 |
|
|
|
5,792 |
|
Net cash flows from financing activities |
|
|
(79,143 |
) |
|
|
101,016 |
|
Effect of exchange rates on cash and cash equivalents |
|
|
(9,148 |
) |
|
|
(4,313 |
) |
Net change in cash and cash equivalents |
|
|
(11,011 |
) |
|
|
(230,931 |
) |
Cash and cash equivalents - beginning of year |
|
|
177,232 |
|
|
|
400,726 |
|
Cash and cash equivalents - end of period |
|
$ |
166,221 |
|
|
$ |
169,795 |
|
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(unaudited)
The non-GAAP tables below disclose the impact of intangible asset amortization (Prospera) and stock-based compensation recognized for the Prospera employees on fiscal 2022 and 2021 results. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. The non-GAAP tables below also disclose the impact of a write off a receivable following arbitration of a commercial transaction from 2014, acquisition diligence and restructuring expenses on segment operating income and net earnings as well as the impact of the
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Thirteen |
|
Diluted |
|
Thirty-nine |
|
Diluted |
||||||||
|
|
weeks ended |
|
earnings per |
|
weeks ended |
|
earnings per |
||||||||
|
|
|
|
share |
|
|
|
share |
||||||||
Net earnings attributable to |
|
$ |
72,112 |
|
|
$ |
3.34 |
|
|
$ |
210,531 |
|
|
$ |
9.77 |
|
Prospera intangible asset amortization |
|
|
1,645 |
|
|
|
0.08 |
|
|
|
4,935 |
|
|
|
0.23 |
|
Stock-based compensation - Prospera |
|
|
2,530 |
|
|
|
0.12 |
|
|
|
7,523 |
|
|
|
0.35 |
|
Total Adjustments, pre-tax1 |
|
|
4,175 |
|
|
|
0.19 |
|
|
|
12,458 |
|
|
|
0.58 |
|
Tax effect of adjustments2 |
|
|
(974 |
) |
|
|
(0.05 |
) |
|
|
(2,106 |
) |
|
|
(0.10 |
) |
Net earnings attributable to |
|
$ |
75,313 |
|
|
$ |
3.49 |
|
|
$ |
220,883 |
|
|
$ |
10.25 |
|
Average shares outstanding (000’s) - Diluted |
|
|
|
|
|
21,605 |
|
|
|
|
|
|
21,546 |
|
||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Thirteen |
|
Diluted |
|
Thirty-nine |
|
Diluted |
||||||||
|
|
weeks ended |
|
earnings per |
|
weeks ended |
|
earnings per |
||||||||
|
|
|
|
share |
|
|
|
share |
||||||||
Net earnings attributable to |
|
$ |
51,650 |
|
|
$ |
2.40 |
|
|
$ |
168,774 |
|
|
$ |
7.86 |
|
Prospera intangible asset amortization |
|
|
1,926 |
|
|
|
0.09 |
|
|
|
1,926 |
|
|
|
0.09 |
|
Stock-based compensation - Prospera |
|
|
2,312 |
|
|
|
0.11 |
|
|
|
2,312 |
|
|
|
0.11 |
|
Write-off of a receivable, pre-tax |
|
|
— |
|
|
|
— |
|
|
|
5,545 |
|
|
|
0.26 |
|
Acquisition diligence expense, pre-tax |
|
|
— |
|
|
|
— |
|
|
|
1,120 |
|
|
|
0.05 |
|
Restructuring expense, pre-tax |
|
|
— |
|
|
|
— |
|
|
|
1,560 |
|
|
|
0.07 |
|
Total Adjustments, pre-tax1 |
|
|
4,238 |
|
|
|
0.20 |
|
|
|
12,463 |
|
|
|
0.58 |
|
Change in |
|
|
— |
|
|
|
— |
|
|
|
(2,819 |
) |
|
|
(0.13 |
) |
Tax effect of adjustments2 |
|
|
(604 |
) |
|
|
(0.03 |
) |
|
|
(2,358 |
) |
|
|
(0.11 |
) |
Net earnings attributable to |
|
$ |
55,284 |
|
|
$ |
2.57 |
|
|
$ |
176,060 |
|
|
$ |
8.20 |
|
Average shares outstanding (000’s) - Diluted |
|
|
|
|
|
21,552 |
|
|
|
|
|
|
21,483 |
|
||
1Earnings per share includes rounding |
2The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended |
|
|||||||||||
Operating Income Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Valmont |
||||||
Operating income - as reported |
|
$ |
93,572 |
|
$ |
43,258 |
|
$ |
(26,858 |
) |
|
$ |
109,972 |
|
Stock-based compensation - Prospera |
|
|
— |
|
|
2,530 |
|
|
— |
|
|
|
2,530 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
1,645 |
|
|
— |
|
|
|
1,645 |
|
Adjusted Operating Income |
|
$ |
93,572 |
|
$ |
47,433 |
|
$ |
(26,858 |
) |
|
$ |
114,147 |
|
|
|
|
773,241 |
|
|
324,141 |
|
|
NM |
|
|
|
1,097,382 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a % of |
|
|
12.1 |
% |
|
13.3 |
% |
|
NM |
|
|
|
10.0 |
% |
Adjusted Operating Income as a % of |
|
|
12.1 |
% |
|
14.6 |
% |
|
NM |
|
|
|
10.4 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended |
|
||||||||||
Operating Income Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Valmont |
|||||
Operating income - as reported |
|
$ |
71,422 |
|
$ |
27,735 |
|
$ |
(22,962) |
|
$ |
76,195 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
1,926 |
|
|
— |
|
|
1,926 |
|
Stock-based compensation - Prospera |
|
|
— |
|
|
2,312 |
|
|
— |
|
|
2,312 |
|
Adjusted Operating Income |
|
$ |
71,422 |
|
$ |
31,973 |
|
$ |
(22,962) |
|
$ |
80,433 |
|
|
|
|
632,457 |
|
|
236,325 |
|
|
NM |
|
|
868,782 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a % of |
|
|
11.3 |
% |
|
11.7 |
% |
|
NM |
|
|
8.8 |
% |
Adjusted Operating Income as a % of |
|
|
11.3 |
% |
|
13.5 |
% |
|
NM |
|
|
9.3 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine weeks ended |
|
||||||||||
Operating Income Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Valmont |
|||||
Operating income - as reported |
|
$ |
255,722 |
|
$ |
138,779 |
|
$ |
(70,968) |
|
$ |
323,533 |
|
Stock-based compensation - Prospera |
|
|
— |
|
|
7,523 |
|
|
— |
|
|
7,523 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
4,935 |
|
|
— |
|
|
4,935 |
|
Adjusted Operating Income |
|
$ |
255,722 |
|
$ |
151,237 |
|
$ |
(70,968) |
|
$ |
335,991 |
|
|
|
|
2,211,616 |
|
|
1,002,118 |
|
|
NM |
|
|
3,213,734 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a % of |
|
|
11.6 |
% |
|
13.8 |
% |
|
NM |
|
|
10.1 |
% |
Adjusted Operating Income as a % of |
|
|
11.6 |
% |
|
15.1 |
% |
|
NM |
|
|
10.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine weeks ended |
|
||||||||||
Operating Income Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Valmont |
|||||
Operating income - as reported |
|
$ |
187,421 |
|
$ |
108,467 |
|
$ |
(59,857) |
|
$ |
236,031 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
1,926 |
|
|
— |
|
|
1,926 |
|
Stock-based compensation - Prospera |
|
|
— |
|
|
2,312 |
|
|
— |
|
|
2,312 |
|
Write-off of a receivable, pre-tax |
|
|
5,545 |
|
|
— |
|
|
— |
|
|
5,545 |
|
Acquisition diligence expense, pre-tax |
|
|
— |
|
|
— |
|
|
1,120 |
|
|
1,120 |
|
Restructuring expense, pre-tax |
|
|
650 |
|
|
910 |
|
|
— |
|
|
1,560 |
|
Adjusted Operating Income |
|
$ |
193,616 |
|
$ |
113,615 |
|
$ |
(58,737) |
|
$ |
248,494 |
|
|
|
|
1,793,710 |
|
|
744,587 |
|
|
NM |
|
|
2,538,297 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income as a % of |
|
|
10.4 |
% |
|
14.6 |
% |
|
NM |
|
|
9.3 |
% |
Adjusted Operating Income as a % of |
|
|
10.8 |
% |
|
15.3 |
% |
|
NM |
|
|
9.8 |
% |
REGULATION G RECONCILIATION OF FORECASTED GAAP AND ADJUSTED EARNINGS
(Dollars in thousands, except per share amounts)
The non-GAAP tables below disclose the impact on the range of estimated diluted earnings per share of the (1) amortization of the intangible asset (Prospera) and (2) stock-based compensation for Prospera employees. We believe the adjustments for Prospera allow for a better investor understanding of Agriculture segment performance related to traditional segment products. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings to be taken into consideration by management and investors with the related reported GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Range of Net Earnings - 2022 Guidance |
|
Low End |
|
High End |
|
Adjustments |
||||
Estimated net earnings - GAAP |
|
$ |
279,500 |
|
$ |
287,200 |
|
|
|
|
Prospera intangible asset (proprietary technology) amortization, pre-tax |
|
|
|
|
|
|
|
|
6,700 |
|
Stock-based compensation - Prospera, pre-tax |
|
|
|
|
|
|
|
|
10,000 |
|
Total pre-tax adjustments |
|
|
|
|
|
|
|
|
16,700 |
|
Estimated tax benefit from above expenses* |
|
|
|
|
|
|
|
|
(2,500 |
) |
|
|
|
|
|
|
|
|
|
|
|
Total Adjustments, after-tax |
|
|
|
|
|
|
|
$ |
14,200 |
|
Estimated net earnings - Adjusted |
|
$ |
293,700 |
|
$ |
301,400 |
|
|
|
|
|
|
$ |
12.95 |
|
$ |
13.30 |
|
|
|
|
|
|
$ |
13.65 |
|
$ |
14.00 |
|
|
|
|
______________________
| * The tax effect of adjustments is calculated based on the estimated income tax rate in each applicable jurisdiction. |
View source version on businesswire.com: https://www.businesswire.com/news/home/20221026005949/en/
renee.campbell@valmont.com
Source:
FAQ
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