Valmont Reports Third Quarter 2024 Results
Valmont Industries (NYSE: VMI) reported solid Q3 2024 results, with net sales of $1.0 billion, down 2.9% year-over-year. Despite lower sales, the company expanded operating margins and generated strong operating cash flows of $225.1 million. Operating income increased to $125.7 million or 12.3% of net sales, compared to an operating loss in Q3 2023. Diluted EPS was $4.11.
The Infrastructure segment saw strong growth in Utility and Telecommunications, offset by lower Lighting, Transportation, and Solar sales. The Agriculture segment experienced an 11.1% decrease in sales due to market softness in North America and Brazil. The company reaffirmed its full-year 2024 outlook, expecting net sales change of -3.5% to -1.5% and diluted EPS of $16.50 to $17.30.
Valmont Industries (NYSE: VMI) ha riportato risultati solidi per il terzo trimestre del 2024, con vendite nette di 1,0 miliardi di dollari, in calo del 2,9% rispetto all'anno precedente. Nonostante le vendite inferiori, l'azienda ha ampliato i margini operativi e generato forti flussi di cassa operativi di 225,1 milioni di dollari. Il reddito operativo è aumentato a 125,7 milioni di dollari, pari al 12,3% delle vendite nette, rispetto a una perdita operativa nel terzo trimestre del 2023. L'EPS diluito è stato di 4,11 dollari.
Il segmento Infrastrutture ha registrato una forte crescita nei settori Utility e Telecomunicazioni, compensata da una diminuzione nelle vendite di Illuminazione, Trasporti e Solare. Il segmento Agricoltura ha subito una diminuzione dell'11,1% nelle vendite a causa della debolezza del mercato in Nord America e Brasile. L'azienda ha confermato le sue aspettative per l'intero anno 2024, prevedendo un cambiamento nelle vendite nette compreso tra il -3,5% e il -1,5% e un EPS diluito di 16,50-17,30 dollari.
Valmont Industries (NYSE: VMI) reportó resultados sólidos en el tercer trimestre de 2024, con ventas netas de 1,0 mil millones de dólares, lo que representa una caída del 2,9% interanual. A pesar de las ventas más bajas, la empresa expandió sus márgenes operativos y generó fuertes flujos de efectivo operativo de 225,1 millones de dólares. Los ingresos operativos aumentaron a 125,7 millones de dólares, o el 12,3% de las ventas netas, en contraste con una pérdida operativa en el tercer trimestre de 2023. El EPS diluido fue de 4,11 dólares.
El segmento de Infraestructura experimentó un crecimiento sólido en Utilidades y Telecomunicaciones, compensado por una disminución en las ventas de Iluminación, Transporte y Solar. El segmento de Agricultura tuvo una disminución del 11,1% en las ventas debido a la debilidad del mercado en América del Norte y Brasil. La empresa reafirmó su pronóstico para todo el año 2024, esperando un cambio en las ventas netas de -3,5% a -1,5% y un EPS diluido de 16,50 a 17,30 dólares.
Valmont Industries (NYSE: VMI)는 2024년 3분기 실적을 발표하며, 순판매액이 10억 달러로 지난해 대비 2.9% 감소했다고 보고했습니다. 판매 감소에도 불구하고, 회사는 운영 마진을 확대하고 2억 2,510만 달러의 강력한 운영 현금 흐름을 창출했습니다. 운영 수익은 1억 2,570만 달러로 증가했으며, 이는 순판매의 12.3%에 해당하며, 2023년 3분기에는 운영 손실이 있었습니다. 희석 주당 순익(EPS)은 4.11달러였습니다.
인프라 부문은 유틸리티 및 통신에서 강력한 성장을 보였으나 조명, 운송, 태양광 판매는 감소했습니다. 농업 부문은 북미 및 브라질 시장의 부진으로 인해 11.1%의 매출 감소를 경험했습니다. 회사는 2024년 전체 연간 전망을 재확인하며, 순판매 변화가 -3.5%에서 -1.5% 사이일 것으로 기대하고 있으며, 희석 EPS는 16.50달러에서 17.30달러로 예상하고 있습니다.
Valmont Industries (NYSE: VMI) a annoncé des résultats solides pour le troisième trimestre 2024, avec des ventes nettes de 1,0 milliard de dollars, en baisse de 2,9 % par rapport à l'année précédente. Malgré une baisse des ventes, l'entreprise a élargi ses marges opérationnelles et généré des flux de trésorerie opérationnels solides de 225,1 millions de dollars. Le résultat d'exploitation a augmenté à 125,7 millions de dollars, soit 12,3 % des ventes nettes, par rapport à une perte d'exploitation au troisième trimestre de 2023. Le BPA dilué était de 4,11 dollars.
Le segment Infrastructures a connu une forte croissance dans les secteurs de l'énergie et des télécommunications, compensée par une baisse des ventes dans l'éclairage, les transports et le solaire. Le segment Agriculture a subi une baisse de 11,1 % de ses ventes en raison de la faiblesse du marché en Amérique du Nord et au Brésil. L'entreprise a réaffirmé ses prévisions pour l'ensemble de l'année 2024, s'attendant à un changement des ventes nettes de -3,5 % à -1,5 % et un BPA dilué de 16,50 à 17,30 dollars.
Valmont Industries (NYSE: VMI) hat solide Ergebnisse für das 3. Quartal 2024 gemeldet, mit Nettoumsätzen von 1,0 Milliarden Dollar, was einem Rückgang von 2,9% im Vergleich zum Vorjahr entspricht. Trotz schwächerer Verkaufszahlen hat das Unternehmen die Betriebsmargen erhöht und starke operative Cashflows von 225,1 Millionen Dollar generiert. Das Betriebsergebnis stieg auf 125,7 Millionen Dollar, was 12,3% des Nettoumsatzes entspricht, im Vergleich zu einem operativen Verlust im 3. Quartal 2023. Der verwässerte EPS betrug 4,11 Dollar.
Der Infrastruktur-Sektor verzeichnete ein starkes Wachstum im Bereich der Versorgungsunternehmen und Telekommunikation, während die Verkaufszahlen bei Beleuchtung, Transport und Solar zurückgingen. Der Agrarsektor erlebte einen Rückgang der Verkaufszahlen um 11,1% aufgrund der Marktsituation in Nordamerika und Brasilien. Das Unternehmen bekräftigte seine Prognose für das gesamte Jahr 2024 und erwartet eine Veränderung des Nettoumsatzes von -3,5% bis -1,5% sowie einen verwässerten EPS von 16,50 bis 17,30 Dollar.
- Operating income increased to $125.7 million (12.3% of net sales) from a loss in Q3 2023
- Generated strong operating cash flows of $225.1 million
- Infrastructure segment saw strong growth in Utility (nearly 15%) and Telecommunications
- Expanded operating margins despite lower sales
- Reduced revolving credit facility borrowings by approximately $120.0 million
- Net sales decreased 2.9% year-over-year to $1.0 billion
- Agriculture segment sales decreased 11.1% due to market softness in North America and Brazil
- Lower sales in Solar and international Agriculture, specifically Brazil
- Lighting and Transportation volumes were lower due to market softness and strategic exit from select lower-margin products
Insights
Valmont Industries delivered a solid Q3 2024 performance despite challenging market conditions. Key highlights include:
- Net sales of
$1.02 billion , down2.9% year-over-year - Operating income increased to
$125.7 million (12.3% of net sales) - Diluted EPS of
$4.11 - Strong operating cash flow of
$225.1 million
The Infrastructure segment showed resilience with slight growth, driven by strong utility and telecommunications demand. However, the Agriculture segment faced headwinds, particularly in Brazil. Despite lower sales, Valmont expanded operating margins through pricing discipline and cost management. The company's ability to generate substantial cash flow and reduce debt in a challenging environment is noteworthy. Management reaffirmed full-year guidance, indicating confidence in their strategy and market positioning. While near-term challenges persist in certain markets, Valmont's diversified portfolio and focus on operational excellence should help navigate market cycles effectively.
Valmont's Q3 results reflect the divergent trends in infrastructure and agriculture markets. The Infrastructure segment, comprising
Conversely, the Agriculture segment (
Valmont's strategic decisions, such as exiting low-margin solar projects and certain lighting products, may impact short-term revenue but should improve profitability long-term. The company's focus on operational efficiency and pricing discipline is evident in the expanded operating margins despite lower sales. This approach, combined with strong cash flow generation, positions Valmont well to navigate market uncertainties while investing in growth initiatives.
Net Sales and Operating Income Aligned with Expectations
Generated Strong Operating Cash Flows of
President and Chief Executive Officer Avner M. Applbaum commented, “Our team delivered another solid quarter, expanding operating margins and generating strong operating cash flows despite lower sales. The Infrastructure segment benefited from strong utility market demand and an improving telecommunications market in
Third Quarter 2024 Highlights (all metrics compared to Third Quarter 2023 unless otherwise noted)
-
Net sales of
$1.0 billion 2.9% , as strong growth in Transmission, Distribution, and Substation (“Utility”) and Telecommunications was offset by lower sales in Solar and international Agriculture, specificallyBrazil -
Operating income increased to
$125.7 million 12.3% of net sales compared to an operating loss of( [adjusted1 operating income of$24.2) million $120.8 million 11.5% of net sales] -
Diluted earnings per share (“EPS”) of
$4.11 $2.34 $4.12 -
Generated operating cash flows of
$225.1 million $200.5 million -
Returned
$52.2 million -
Reduced revolving credit facility borrowings by approximately
$120.0 million - Reaffirming 2024 full-year financial outlook
Key Financial Metrics
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Third Quarter 2024 |
GAAP |
Adjusted1 |
|||||||||||||||
(In thousands, except per-share amounts) |
9/28/2024 |
|
9/30/2023 |
|
9/28/2024 |
|
9/30/2023 |
|
|
||||||||
|
Q3 2024 |
|
Q3 2023 |
vs. Q3 2023 |
Q3 2024 |
|
Q3 2023 |
|
vs. Q3 2023 |
||||||||
Net Sales |
$ |
1,020,175 |
|
$ |
1,050,295 |
|
(2.9 |
)% |
$ |
1,020,175 |
|
$ |
1,050,295 |
|
(2.9 |
)% |
|
Gross Profit |
|
301,693 |
|
|
315,111 |
|
(4.3 |
)% |
|
301,693 |
|
|
315,111 |
|
(4.3 |
)% |
|
Gross Profit as a % of Net Sales |
|
29.6 |
% |
|
30.0 |
% |
|
|
29.6 |
% |
|
30.0 |
% |
|
|||
Operating Income (Loss) |
|
125,735 |
|
|
(24,190 |
) |
NM |
|
|
125,735 |
|
|
120,834 |
|
4.1 |
% |
|
Operating Inc. (Loss) as a % of Net Sales |
|
12.3 |
% |
|
(2.3 |
)% |
|
|
12.3 |
% |
|
11.5 |
% |
|
|||
Net Earnings (Loss) Attrib. to VMI |
|
83,068 |
|
|
(49,028 |
) |
NM |
|
|
83,068 |
|
|
86,976 |
|
(4.5 |
)% |
|
Diluted Earnings (Loss) per Share |
|
4.11 |
|
|
(2.34 |
) |
NM |
|
|
4.11 |
|
|
4.12 |
|
(0.2 |
)% |
|
Weighted Average Shares Outstanding |
|
20,234 |
|
|
20,951 |
|
|
|
20,234 |
|
|
21,131 |
|
|
|||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Year-to-Date 2024 |
GAAP |
Adjusted1 |
|||||||||||||||
(In thousands, except per-share amounts) |
9/28/2024 |
|
9/30/2023 |
|
9/28/2024 |
|
9/30/2023 |
|
|
||||||||
|
FY 2024 |
|
FY 2023 |
vs. FY 2023 |
FY 2024 |
|
FY 2023 |
|
vs. FY 2023 |
||||||||
Net Sales |
$ |
3,037,740 |
|
$ |
3,159,072 |
|
(3.8 |
)% |
$ |
3,037,740 |
|
$ |
3,159,072 |
|
(3.8 |
)% |
|
Gross Profit |
|
928,191 |
|
|
953,093 |
|
(2.6 |
)% |
|
928,191 |
|
|
953,093 |
|
(2.6 |
)% |
|
Gross Profit as a % of Net Sales |
|
30.6 |
% |
|
30.2 |
% |
|
|
30.6 |
% |
|
30.2 |
% |
|
|||
Operating Income |
|
404,596 |
|
|
228,009 |
|
NM |
|
|
404,596 |
|
|
380,601 |
|
6.3 |
% |
|
Operating Income as a % of Net Sales |
|
13.3 |
% |
|
7.2 |
% |
|
|
13.3 |
% |
|
12.0 |
% |
|
|||
Net Earnings Attributable to VMI2 |
|
270,606 |
|
|
114,888 |
|
NM |
|
|
270,606 |
|
|
257,368 |
|
5.1 |
% |
|
Diluted Earnings per Share2 |
|
13.34 |
|
|
5.40 |
|
NM |
|
|
13.34 |
|
|
12.09 |
|
10.3 |
% |
|
Weighted Average Shares Outstanding |
|
20,283 |
|
|
21,290 |
|
|
|
20,283 |
|
|
21,290 |
|
|
|||
2Q2 2024 included a tax benefit of approximately NM = not meaningful |
|||||||||||||||||
Third 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
Utility sales grew nearly
Pricing improved across the segment, as a favorable mix and pricing discipline more than offset the impact of steel index deflation.
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 year over year, with significantly lower sales in
Operating income was
Balance Sheet, Liquidity, and Capital Allocation
The Company generated strong operating cash flows of
Reaffirming 2024 Full-Year Financial Outlook and Providing Key Assumptions
The Company is reaffirming its full-year 2024 net sales and diluted earnings per share outlook that was provided in the second quarter.
-
Net sales change (vs. prior year) of (
3.5% ) to (1.5% )-
Infrastructure net sales growth of Flat to
1.5% vs. prior year -
Agriculture net sales expected to decrease (
15.0% ) to (10.0% ) vs. prior year
-
Infrastructure net sales growth of Flat to
-
Diluted earnings per share of
$16.50 $17.30 -
Effective tax rate expected to be slightly below
26% - Minimal expected foreign currency translation impact on net sales
-
For cash flow purposes, capital expenditures now expected to be in the range of
$85.0 $95.0 million $95.0 $110.0 million
Mr. Applbaum added, “We’ve performed well during the first three quarters of the year, reinforcing our confidence in achieving our full-year outlook. Our diverse exposure to infrastructure and agriculture markets helps us navigate market cycles effectively, and our focus on operational excellence and growth investments positions us to meet rising demand. In addition, we remain disciplined in driving margin expansion through pricing and expense management. Combined with a balanced capital allocation framework, this positions us to deliver lasting and meaningful shareholder returns.”
A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and Thomas Liguori, Executive Vice President and Chief Financial Officer, will be accessible by telephone on Wednesday, October 23, 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 3Q 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 13742907. The replay will be available through 10:59 p.m. CT on Wednesday, October 30, 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.
1Please see Reg G reconciliation to GAAP measures at end of document
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Dollars and shares in thousands, except per-share amounts) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Thirteen weeks ended |
|
Thirty-nine weeks ended |
||||||||||||
|
|
September 28, |
|
September 30, |
|
September 28, |
|
September 30, |
||||||||
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
Net sales |
|
$ |
1,020,175 |
|
|
$ |
1,050,295 |
|
|
$ |
3,037,740 |
|
|
$ |
3,159,072 |
|
Cost of sales |
|
|
718,482 |
|
|
|
735,184 |
|
|
|
2,109,549 |
|
|
|
2,205,979 |
|
Gross profit |
|
|
301,693 |
|
|
|
315,111 |
|
|
|
928,191 |
|
|
|
953,093 |
|
Selling, general, and administrative expenses |
|
|
175,958 |
|
|
|
194,277 |
|
|
|
523,595 |
|
|
|
580,060 |
|
Impairment of goodwill and other intangible assets |
|
|
— |
|
|
|
140,844 |
|
|
|
— |
|
|
|
140,844 |
|
Realignment charges |
|
|
— |
|
|
|
4,180 |
|
|
|
— |
|
|
|
4,180 |
|
Operating income (loss) |
|
|
125,735 |
|
|
|
(24,190 |
) |
|
|
404,596 |
|
|
|
228,009 |
|
Other income (expenses): |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(14,313 |
) |
|
|
(13,472 |
) |
|
|
(46,380 |
) |
|
|
(41,494 |
) |
Interest income |
|
|
2,080 |
|
|
|
3,186 |
|
|
|
5,358 |
|
|
|
4,579 |
|
Gain (loss) on deferred compensation investments |
|
|
1,160 |
|
|
|
(344 |
) |
|
|
3,116 |
|
|
|
1,791 |
|
Gain on divestiture |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
2,994 |
|
Other |
|
|
(2,307 |
) |
|
|
165 |
|
|
|
(3,662 |
) |
|
|
(4,593 |
) |
Total other income (expenses) |
|
|
(13,380 |
) |
|
|
(10,465 |
) |
|
|
(41,568 |
) |
|
|
(36,723 |
) |
Earnings (loss) before income taxes and equity in loss of nonconsolidated subsidiaries |
|
|
112,355 |
|
|
|
(34,655 |
) |
|
|
363,028 |
|
|
|
191,286 |
|
Income tax expense |
|
|
29,724 |
|
|
|
15,461 |
|
|
|
90,779 |
|
|
|
79,239 |
|
Equity in loss of nonconsolidated subsidiaries |
|
|
(21 |
) |
|
|
(199 |
) |
|
|
(60 |
) |
|
|
(1,219 |
) |
Net earnings (loss) |
|
|
82,610 |
|
|
|
(50,315 |
) |
|
|
272,189 |
|
|
|
110,828 |
|
Loss (earnings) attributable to redeemable noncontrolling interests |
|
|
458 |
|
|
|
1,287 |
|
|
|
(1,583 |
) |
|
|
4,060 |
|
Net earnings (loss) attributable to Valmont Industries, Inc. |
|
$ |
83,068 |
|
|
$ |
(49,028 |
) |
|
$ |
270,606 |
|
|
$ |
114,888 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Basic |
|
|
20,092 |
|
|
|
20,951 |
|
|
|
20,152 |
|
|
|
21,083 |
|
Earnings (loss) per share - Basic |
|
$ |
4.13 |
|
|
$ |
(2.34 |
) |
|
$ |
13.43 |
|
|
$ |
5.45 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Weighted average shares outstanding - Diluted |
|
|
20,234 |
|
|
|
20,951 |
|
|
|
20,283 |
|
|
|
21,290 |
|
Earnings (loss) per share - Diluted |
|
$ |
4.11 |
|
|
$ |
(2.34 |
) |
|
$ |
13.34 |
|
|
$ |
5.40 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Cash dividends per share |
|
$ |
0.60 |
|
|
$ |
0.60 |
|
|
$ |
1.80 |
|
|
$ |
1.80 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) |
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||
|
|
Thirteen weeks ended |
Thirty-nine weeks ended |
|||||||||||||
|
|
September 28, |
September 30, |
September 28, |
September 30, |
|||||||||||
|
|
2024 |
2023 |
2024 |
2023 |
|||||||||||
Infrastructure |
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
|
$ |
756,370 |
|
$ |
753,626 |
|
$ |
2,237,533 |
|
$ |
2,253,924 |
|
|||
Gross profit |
|
|
223,333 |
|
|
214,841 |
|
|
673,353 |
|
|
640,113 |
|
|||
as a percentage of net sales |
|
|
29.5 |
% |
|
28.5 |
% |
|
30.1 |
% |
|
28.4 |
% |
|||
Selling, general, and administrative expenses |
|
|
99,676 |
|
|
106,800 |
|
|
298,251 |
|
|
321,770 |
|
|||
as a percentage of net sales |
|
|
13.2 |
% |
|
14.2 |
% |
|
13.3 |
% |
|
14.3 |
% |
|||
Impairment of goodwill and other intangible assets |
|
|
— |
|
|
3,571 |
|
|
— |
|
|
3,571 |
|
|||
Realignment charges |
|
|
— |
|
|
1,069 |
|
|
— |
|
|
1,069 |
|
|||
Operating income |
|
|
123,657 |
|
|
103,401 |
|
|
375,102 |
|
|
313,703 |
|
|||
as a percentage of net sales |
|
|
16.3 |
% |
|
13.7 |
% |
|
16.8 |
% |
|
13.9 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||
Agriculture |
|
|
|
|
|
|
|
|
|
|||||||
Net sales |
|
$ |
263,805 |
|
$ |
296,669 |
|
$ |
800,207 |
|
$ |
905,148 |
|
|||
Gross profit |
|
|
78,360 |
|
|
100,270 |
|
|
254,838 |
|
|
312,980 |
|
|||
as a percentage of net sales |
|
|
29.7 |
% |
|
33.8 |
% |
|
31.8 |
% |
|
34.6 |
% |
|||
Selling, general, and administrative expenses |
|
|
49,467 |
|
|
61,760 |
|
|
145,001 |
|
|
171,896 |
|
|||
as a percentage of net sales |
|
|
18.8 |
% |
|
20.8 |
% |
|
18.1 |
% |
|
19.0 |
% |
|||
Impairment of goodwill and other intangible assets |
|
|
— |
|
|
137,273 |
|
|
— |
|
|
137,273 |
|
|||
Realignment charges |
|
|
— |
|
|
907 |
|
|
— |
|
|
907 |
|
|||
Operating income (loss) |
|
|
28,893 |
|
|
(99,670 |
) |
|
109,837 |
|
|
2,904 |
|
|||
as a percentage of net sales |
|
|
11.0 |
% |
|
(33.6 |
)% |
|
13.7 |
% |
|
0.3 |
% |
|||
|
|
|
|
|
|
|
|
|
|
|||||||
Corporate |
|
|
|
|
|
|
|
|
|
|||||||
Selling, general, and administrative expenses |
|
$ |
26,815 |
$ |
25,717 |
$ |
80,343 |
$ |
86,394 |
|||||||
Realignment charges |
|
|
— |
|
|
2,204 |
|
|
— |
|
|
2,204 |
|
|||
Operating loss |
|
|
(26,815 |
) |
|
(27,921 |
) |
|
(80,343 |
) |
|
(88,598 |
) |
|||
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended September 28, 2024 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
599,705 |
|
$ |
119,973 |
|
$ |
(3,684 |
) |
|
$ |
715,994 |
International |
|
|
158,874 |
|
|
145,313 |
|
|
(6 |
) |
|
|
304,181 |
Total sales |
|
$ |
758,579 |
|
$ |
265,286 |
|
$ |
(3,690 |
) |
|
$ |
1,020,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
342,401 |
|
$ |
— |
|
$ |
— |
|
|
$ |
342,401 |
Lighting and Transportation |
|
|
229,219 |
|
|
— |
|
|
— |
|
|
|
229,219 |
Coatings |
|
|
88,046 |
|
|
— |
|
|
(2,201 |
) |
|
|
85,845 |
Telecommunications |
|
|
64,288 |
|
|
— |
|
|
— |
|
|
|
64,288 |
Solar |
|
|
34,625 |
|
|
— |
|
|
(8 |
) |
|
|
34,617 |
Irrigation Equipment and Parts |
|
|
— |
|
|
243,368 |
|
|
(1,481 |
) |
|
|
241,887 |
Technology Products and Services |
|
|
— |
|
|
21,918 |
|
|
— |
|
|
|
21,918 |
Total sales |
|
$ |
758,579 |
|
$ |
265,286 |
|
$ |
(3,690 |
) |
|
$ |
1,020,175 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended September 30, 2023 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
572,239 |
|
$ |
126,828 |
|
$ |
(3,055 |
) |
|
$ |
696,012 |
International |
|
|
182,837 |
|
|
171,655 |
|
|
(209 |
) |
|
|
354,283 |
Total sales |
|
$ |
755,076 |
|
$ |
298,483 |
|
$ |
(3,264 |
) |
|
$ |
1,050,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
297,967 |
|
$ |
— |
|
$ |
— |
|
|
$ |
297,967 |
Lighting and Transportation |
|
|
252,603 |
|
|
— |
|
|
— |
|
|
|
252,603 |
Coatings |
|
|
88,967 |
|
|
— |
|
|
(1,241 |
) |
|
|
87,726 |
Telecommunications |
|
|
59,630 |
|
|
— |
|
|
— |
|
|
|
59,630 |
Solar |
|
|
55,909 |
|
|
— |
|
|
(209 |
) |
|
|
55,700 |
Irrigation Equipment and Parts |
|
|
— |
|
|
273,639 |
|
|
(1,814 |
) |
|
|
271,825 |
Technology Products and Services |
|
|
— |
|
|
24,844 |
|
|
— |
|
|
|
24,844 |
Total sales |
|
$ |
755,076 |
|
$ |
298,483 |
|
$ |
(3,264 |
) |
|
$ |
1,050,295 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES SUMMARY OPERATING RESULTS (Dollars in thousands) (Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine weeks ended September 28, 2024 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,750,420 |
|
$ |
441,198 |
|
$ |
(12,836 |
) |
|
$ |
2,178,782 |
International |
|
|
494,515 |
|
|
364,526 |
|
|
(83 |
) |
|
|
858,958 |
Total sales |
|
$ |
2,244,935 |
|
$ |
805,724 |
|
$ |
(12,919 |
) |
|
$ |
3,037,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
990,744 |
|
$ |
— |
|
$ |
— |
|
|
$ |
990,744 |
Lighting and Transportation |
|
|
694,877 |
|
|
— |
|
|
— |
|
|
|
694,877 |
Coatings |
|
|
266,710 |
|
|
— |
|
|
(7,321 |
) |
|
|
259,389 |
Telecommunications |
|
|
176,649 |
|
|
— |
|
|
— |
|
|
|
176,649 |
Solar |
|
|
115,955 |
|
|
— |
|
|
(81 |
) |
|
|
115,874 |
Irrigation Equipment and Parts |
|
|
— |
|
|
730,798 |
|
|
(5,517 |
) |
|
|
725,281 |
Technology Products and Services |
|
|
— |
|
|
74,926 |
|
|
— |
|
|
|
74,926 |
Total sales |
|
$ |
2,244,935 |
|
$ |
805,724 |
|
$ |
(12,919 |
) |
|
$ |
3,037,740 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirty-nine weeks ended September 30, 2023 |
|||||||||||
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1,743,635 |
|
$ |
450,678 |
|
$ |
(12,042 |
) |
|
$ |
2,182,271 |
International |
|
|
518,142 |
|
|
459,901 |
|
|
(1,242 |
) |
|
|
976,801 |
Total sales |
|
$ |
2,261,777 |
|
$ |
910,579 |
|
$ |
(13,284 |
) |
|
$ |
3,159,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
927,094 |
|
$ |
— |
|
$ |
— |
|
|
$ |
927,094 |
Lighting and Transportation |
|
|
727,862 |
|
|
— |
|
|
— |
|
|
|
727,862 |
Coatings |
|
|
270,201 |
|
|
— |
|
|
(6,611 |
) |
|
|
263,590 |
Telecommunications |
|
|
195,505 |
|
|
— |
|
|
— |
|
|
|
195,505 |
Solar |
|
|
141,115 |
|
|
— |
|
|
(1,242 |
) |
|
|
139,873 |
Irrigation Equipment and Parts |
|
|
— |
|
|
825,277 |
|
|
(5,431 |
) |
|
|
819,846 |
Technology Products and Services |
|
|
— |
|
|
85,302 |
|
|
— |
|
|
|
85,302 |
Total sales |
|
$ |
2,261,777 |
|
$ |
910,579 |
|
$ |
(13,284 |
) |
|
$ |
3,159,072 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Dollars in thousands) (Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
September 28, |
|
December 30, |
||
|
|
2024 |
|
2023 |
||
ASSETS |
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
200,477 |
|
$ |
203,041 |
Receivables, net |
|
|
714,010 |
|
|
657,960 |
Inventories |
|
|
611,422 |
|
|
658,428 |
Contract assets |
|
|
183,085 |
|
|
175,721 |
Prepaid expenses and other current assets |
|
|
98,165 |
|
|
92,479 |
Total current assets |
|
|
1,807,159 |
|
|
1,787,629 |
Property, plant, and equipment, net |
|
|
609,001 |
|
|
617,394 |
Goodwill and other non-current assets |
|
|
1,080,668 |
|
|
1,072,425 |
Total assets |
|
$ |
3,496,828 |
|
$ |
3,477,448 |
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
|
|
|
|
|
|
AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
531 |
|
$ |
719 |
Notes payable to banks |
|
|
1,309 |
|
|
3,205 |
Accounts payable |
|
|
353,883 |
|
|
358,311 |
Accrued expenses |
|
|
274,089 |
|
|
277,764 |
Contract liabilities |
|
|
100,150 |
|
|
70,978 |
Income taxes payable |
|
|
28,066 |
|
|
— |
Dividends payable |
|
|
12,021 |
|
|
12,125 |
Total current liabilities |
|
|
770,049 |
|
|
723,102 |
Long-term debt, excluding current installments |
|
|
898,201 |
|
|
1,107,885 |
Operating lease liabilities |
|
|
149,253 |
|
|
162,743 |
Other non-current liabilities |
|
|
91,521 |
|
|
66,646 |
Total liabilities |
|
|
1,909,024 |
|
|
2,060,376 |
Redeemable noncontrolling interests |
|
|
46,111 |
|
|
62,792 |
Shareholders' equity |
|
|
1,541,693 |
|
|
1,354,280 |
Total liabilities, redeemable noncontrolling interests, and shareholders' equity |
|
$ |
3,496,828 |
$ |
3,477,448 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Dollars in thousands) (Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Thirty-nine weeks ended |
||||||
|
|
September 28, |
|
September 30, |
||||
|
|
2024 |
|
2023 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net earnings |
|
$ |
272,189 |
|
|
$ |
110,828 |
|
Depreciation and amortization |
|
|
70,541 |
|
|
|
73,638 |
|
Contribution to defined benefit pension plan |
|
|
(19,539 |
) |
|
|
(15,259 |
) |
Impairment of goodwill and other intangible assets |
|
|
— |
|
|
|
140,844 |
|
Gain on divestiture |
|
|
— |
|
|
|
(2,994 |
) |
Change in working capital |
|
|
44,615 |
|
|
|
(110,550 |
) |
Other |
|
|
11,458 |
|
|
|
(5,639 |
) |
Net cash flows from operating activities |
|
|
379,264 |
|
|
|
190,868 |
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchases of property, plant, and equipment |
|
|
(53,833 |
) |
|
|
(71,233 |
) |
Proceeds from divestiture, net of cash divested |
|
|
— |
|
|
|
6,369 |
|
Proceeds from property damage insurance claims |
|
|
— |
|
|
|
6,770 |
|
Acquisitions, net of cash acquired |
|
|
— |
|
|
|
(31,839 |
) |
Other |
|
|
(1,266 |
) |
|
|
667 |
|
Net cash flows from investing activities |
|
|
(55,099 |
) |
|
|
(89,266 |
) |
Cash flows from financing activities: |
|
|
|
|
|
|
||
Net repayments on short-term borrowings |
|
|
(1,899 |
) |
|
|
(2,641 |
) |
Proceeds from long-term borrowings |
|
|
30,009 |
|
|
|
215,012 |
|
Principal repayments on long-term borrowings |
|
|
(240,522 |
) |
|
|
(109,335 |
) |
Dividends paid |
|
|
(36,337 |
) |
|
|
(36,983 |
) |
Purchases of redeemable noncontrolling interests |
|
|
(17,745 |
) |
|
|
— |
|
Repurchases of common stock |
|
|
(55,069 |
) |
|
|
(166,663 |
) |
Other |
|
|
(4,314 |
) |
|
|
(10,881 |
) |
Net cash flows from financing activities |
|
|
(325,877 |
) |
|
|
(111,491 |
) |
Effect of exchange rates on cash and cash equivalents |
|
|
(852 |
) |
|
|
(2,951 |
) |
Net change in cash and cash equivalents |
|
|
(2,564 |
) |
|
|
(12,840 |
) |
Cash and cash equivalents—beginning of period |
|
|
203,041 |
|
|
|
185,406 |
|
Cash and cash equivalents—end of period |
|
$ |
200,477 |
|
|
$ |
172,566 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars and shares in thousands)
(Unaudited)
The non-GAAP table below discloses the impact of the impairment of goodwill and other intangible assets, realignment charges, intangible asset amortization (Prospera), and stock-based compensation recognized for the Prospera employees on fiscal 2023 results, as well as the impact of non-recurring tax benefit items on net earnings. Amounts may be impacted by rounding. We believe it is useful when considering Company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.
The Company previously presented non-GAAP financial measures adjusted for Prospera intangible asset amortization and stock-based compensation recognized for the Prospera employees for a better investor understanding of Agriculture segment performance related to traditional segment products. The Company conducted its annual impairment testing of intangible asset value as of September 2, 2023 and significantly reduced the Prospera intangible asset value. Additionally, the Company’s Board of Directors approved certain realignment plans subsequent to the third quarter of fiscal 2023 that significantly affected the compensation recognized for the Prospera employees. As a result of this, the Company does not consider its historical adjustments related to Prospera to arrive at non-GAAP financial measures to be relevant to investor understanding of third quarter of fiscal 2023 and future segment performance.
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
|
Thirteen |
|
|
|
|
Thirty-nine |
|
|
|
||||||
|
|
weeks ended |
|
Diluted |
|
weeks ended |
|
Diluted |
||||||||
|
|
September 30, |
|
earnings (loss) |
|
September 30, |
|
earnings per |
||||||||
|
|
2023 |
|
per share1,2 |
|
2023 |
|
share1,2 |
||||||||
Net earnings (loss) attrib. to Valmont Industries, Inc. - as reported |
|
$ |
(49,028 |
) |
|
$ |
(2.32 |
) |
|
$ |
114,888 |
|
|
$ |
5.40 |
|
Impairment of goodwill and other intangible assets |
|
|
140,844 |
|
|
|
6.67 |
|
|
|
140,844 |
|
|
|
6.62 |
|
Realignment charges |
|
|
4,180 |
|
|
|
0.20 |
|
|
|
4,180 |
|
|
|
0.20 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
|
— |
|
|
|
3,290 |
|
|
|
0.15 |
|
Prospera stock-based compensation |
|
|
— |
|
|
|
— |
|
|
|
4,278 |
|
|
|
0.20 |
|
Total adjustments, pre-tax |
|
|
145,024 |
|
|
|
6.86 |
|
|
|
152,592 |
|
|
|
7.17 |
|
Tax effect of adjustments3 |
|
|
(5,432 |
) |
|
|
(0.26 |
) |
|
|
(6,524 |
) |
|
|
(0.31 |
) |
Non-recurring tax benefit items |
|
|
(3,588 |
) |
|
|
(0.17 |
) |
|
|
(3,588 |
) |
|
|
(0.17 |
) |
Net earnings attributable to Valmont Industries, Inc. - adjusted |
|
$ |
86,976 |
|
|
$ |
4.12 |
|
|
$ |
257,368 |
|
|
$ |
12.09 |
|
Average shares outstanding - diluted |
|
|
|
|
|
21,131 |
|
|
|
|
|
|
21,290 |
|
||
1In the third quarter of fiscal 2023, the Company reported a GAAP net loss. In periods in which the Company recognizes a net loss, the Company excludes the impact of outstanding stock awards from the diluted loss per share calculation, as its inclusion would have an anti-dilutive effect. The adjusted diluted earnings per share calculation includes the impact of outstanding stock awards.
|
||||||||||||||||
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands)
(Unaudited)
The non-GAAP tables below disclose the impacts of the impairment of goodwill and other intangible assets, realignment charges, intangible asset amortization (Prospera), and stock-based compensation recognized for the Prospera employees on fiscal 2023 results. Amounts may be impacted by rounding. We believe it is useful when considering Company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Thirteen weeks ended September 30, 2023 |
|||||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Consolidated |
|||||||
Operating income (loss) - as reported |
|
$ |
103,401 |
|
$ |
(99,670 |
) |
|
$ |
(27,921 |
) |
|
$ |
(24,190 |
) |
Impairment of goodwill and other intangible assets |
|
|
3,571 |
|
|
137,273 |
|
|
|
— |
|
|
|
140,844 |
|
Realignment charges |
|
|
1,069 |
|
|
907 |
|
|
|
2,204 |
|
|
|
4,180 |
|
Adjusted operating income (loss) |
|
$ |
108,041 |
|
$ |
38,510 |
|
|
$ |
(25,717 |
) |
|
$ |
120,834 |
|
Net sales - as reported |
|
|
753,626 |
|
|
296,669 |
|
|
|
— |
|
|
|
1,050,295 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income (loss) as a % of net sales |
|
|
13.7 |
% |
|
(33.6 |
) |
% |
|
NM |
|
|
|
(2.3 |
)% |
Adj. operating inc. (loss) as a % of net sales |
|
|
14.3 |
% |
|
13.0 |
|
% |
|
NM |
|
|
|
11.5 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
|
|
Thirty-nine weeks ended September 30, 2023 |
|||||||||||||
Operating Income (Loss) Reconciliation |
|
Infrastructure |
|
Agriculture |
|
Corporate |
|
Consolidated |
|||||||
Operating income (loss) - as reported |
|
$ |
313,703 |
|
$ |
2,904 |
|
|
$ |
(88,598 |
) |
|
$ |
228,009 |
|
Impairment of goodwill and other intangible assets |
|
|
3,571 |
|
|
137,273 |
|
|
|
— |
|
|
|
140,844 |
|
Realignment charges |
|
|
1,069 |
|
|
907 |
|
|
|
2,204 |
|
|
|
4,180 |
|
Prospera intangible asset amortization |
|
|
— |
|
|
3,290 |
|
|
|
— |
|
|
|
3,290 |
|
Prospera stock-based compensation |
|
|
— |
|
|
4,278 |
|
|
|
— |
|
|
|
4,278 |
|
Adjusted operating income (loss) |
|
$ |
318,343 |
|
$ |
148,652 |
|
|
$ |
(86,394 |
) |
|
$ |
380,601 |
|
Net sales - as reported |
|
|
2,253,924 |
|
|
905,148 |
|
|
|
— |
|
|
|
3,159,072 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||
Operating income (loss) as a % of net sales |
|
|
13.9 |
% |
|
0.3 |
|
% |
|
NM |
|
|
|
7.2 |
% |
Adj. operating inc. (loss) as a % of net sales |
|
|
14.1 |
% |
|
16.4 |
|
% |
|
NM |
|
|
|
12.0 |
% |
NM = not meaningful |
|||||||||||||||
View source version on businesswire.com: https://www.businesswire.com/news/home/20241022324047/en/
Renee Campbell
renee.campbell@valmont.com
Source: Valmont Industries, Inc.
FAQ
What were Valmont's (VMI) Q3 2024 earnings per share?
How much operating cash flow did Valmont (VMI) generate in Q3 2024?
What is Valmont's (VMI) full-year 2024 net sales outlook?
How did Valmont's (VMI) Infrastructure segment perform in Q3 2024?
