Le Lézard
Classified in: Business
Subjects: EARNINGS, Conference Call, Webcast

Valmont Reports Third Quarter 2022 Results


Valmont Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the third quarter ended September 24, 2022.

Third Quarter 2022 Highlights (all metrics compared to Third Quarter 2021 unless otherwise noted)

Key Financial Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2022

 

GAAP

 

Adjusted1

 

(000's except per share amounts)

 

09/24/2022

09/25/2021

 

 

09/24/2022

09/25/2021

 

 

 

 

Q3 2022

Q3 2021

vs. Q3 2021

Q3 2022

Q3 2021

vs. Q3 2021

Net Sales

 

$

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 Net Sales

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

YTD 2022

 

GAAP

 

Adjusted1

 

(000's except per share amounts)

 

09/24/2022

09/25/2021

 

09/24/2022

09/25/2021

 

 

 

 

FY 2022

FY 2021

vs. FY 2021

FY 2022

FY 2021

vs. FY 2021

Net Sales

 

$

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 Net Sales

 

 

10.1

%

 

9.3

%

 

 

 

 

10.5

%

 

9.8

%

 

 

Net Earnings

 

 

210,531

 

 

168,774

 

24.7

%

 

 

220,883

 

 

176,060

 

25.5

%

Diluted Earnings Per Share

 

$

9.77

 

$

7.86

 

24.3

%

 

$

10.25

 

$

8.20

 

25.0

%

Average Shares Outstanding

 

 

21,546

 

 

21,483

 

 

 

 

 

21,546

 

 

21,483

 

 

 

"I am extremely pleased with the outstanding performance and record results delivered by the entire Valmont team this quarter," said Stephen G. Kaniewski, President and Chief Executive Officer. "We continue to see strong demand globally for our products and solutions across infrastructure and agriculture markets. Broad-based infrastructure market strength is being driven by continued investments in grid resiliency and upgrades to aging infrastructure, ongoing demand for renewable power and clean energy solutions and the 5G network transition. Agriculture markets remain extremely favorable, as elevated commodity prices are being driven by tighter global grain supplies, ongoing demand for increased food production and a heightened focus on food security concerns. The typical seasonal decline in third quarter North America agriculture sales was less pronounced this year due to ongoing delivery of backlog and strong demand throughout the quarter. Despite continued challenges of inflation and supply chain volatility, we delivered record third quarter earnings per share as our team continues to live our core values of passion, integrity, and continuous improvement, with an unwavering focus on delivering results. Across our global portfolio we remain committed to the execution of our growth strategy while also improving profitability and delivering long-term value for our shareholders."

Third Quarter 2022 Segment Review

Infrastructure (70.5% of Net Sales)

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 $778.4 million grew 22.7% year-over-year with double-digit sales growth across all product lines, net of 2.3% unfavorable foreign currency translation impacts. Higher sales were driven by favorable pricing globally, primarily in the Transmission, Distribution and Substation (TD&S), Lighting and Transportation (L&T), and Telecommunications product lines, higher volumes, notably in the Renewable Energy product line, and sales from the ConcealFab acquisition.

Operating Income improved to $93.6 million or 12.1% of net sales compared to $71.4 million or 11.3% in 2021, driven by favorable pricing and higher volumes.

Agriculture (29.5% of Net Sales)

Center pivot and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture

Sales of $327.3 million increased 36.2% year-over-year, with sales growth across North America and International markets, led by higher average selling prices of irrigation equipment and higher volumes, partially offset by lower project sales to Egypt. In Brazil, sales nearly doubled year-over-year, demonstrating continued robust market demand for irrigation equipment and ag solar products.

Operating Income improved to $43.3 million, or 13.3% of net sales ($47.4 million or 14.6% adjusted1) compared to $27.7 million or 11.7% of net sales ($32.0 million or 13.5% adjusted1) in 2021. The benefit of higher average selling prices and additional volume leverage was partially offset by higher SG&A, including incremental R&D expense for technology investments.

Balance Sheet, Liquidity and Capital Allocation

The Company generated year-to-date operating cash flows of $184 million through strong earnings and managing working capital while supporting strong revenue growth. At the end of the third quarter, cash and cash equivalents were $166 million. Valmont purchased approximately $11 million of company stock in the third quarter and approximately $101 million remains on the current authorization with no expiration.

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.

 

 

 

 

2022 Full Year Financial Outlook

 

Previous Outlook

Revised Outlook

Net Sales Growth (vs. PY)

 

20% to 21%

~ 22%

GAAP Diluted EPS1

 

$12.90 to $13.30

$12.95 to $13.30

Adjusted Diluted EPS1

 

$13.60 to $14.00

$13.65 to $14.00

Tax Rate

 

~ 27.5%

~ 27.5%

FX Translation Impact on Net Sales

 

~ (2.0%)

~ (2.0%)

Capital Expenditures

 

$110 to $120 million

$95 to $105 million

Kaniewski continued, "The strong market drivers we are seeing across our businesses, our continued track record of execution and a record backlog of ~$2 billion, give us confidence going forward. The long-term need for critical infrastructure investment globally, including current and future stimulus programs, are driving sustainable demand across our Infrastructure businesses. Favorable agriculture market trends across global markets and a strong international project pipeline are providing momentum for our Agriculture business well into next year."

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 6% to 9% and earnings per share growth of 11% to 15%. Through our diversified business portfolio, return on invested capital focus, and organizational emphasis on ESG principles, we are in a position of strength with a talented team who are driven by our core values to deliver results for our customers and our stakeholders. We remain focused on what we can control: leveraging our business model and Valmont team to deliver innovative products and solutions to our customers, advancing operational excellence, and executing on strategic initiatives that drive sustainable, profitable growth. Additionally, our balance sheet remains strong, giving us flexibility to execute our long-term strategic plan."

A live audio discussion with Stephen G. Kaniewski, President and Chief Executive Officer, and Avner M. Applbaum, Executive Vice President and Chief Financial Officer, will be accessible by telephone on Thursday, October 27, 2022 at 8:00 a.m. CDT 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 2022 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 13733566. The replay will be available through 10:59 p.m. CDT on November 03, 2022.

About Valmont Industries, Inc.

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 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 material, 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.

1 Please see Reg G reconciliation to GAAP measures at end of document

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands, except per share amounts)

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

Year-to-Date

 

 

13 Weeks Ended

 

39 Weeks Ended

 

 

09/24/2022

 

09/25/2021

 

09/24/2022

 

09/25/2021

Net sales

 

$

1,097,382

 

 

$

868,782

 

 

$

3,213,734

 

 

$

2,538,297

 

Cost of sales

 

 

811,904

 

 

 

641,378

 

 

 

2,386,469

 

 

 

1,876,692

 

Gross profit

 

 

285,478

 

 

 

227,404

 

 

 

827,265

 

 

 

661,605

 

Selling, general and administrative expenses

 

 

175,506

 

 

 

151,209

 

 

 

503,732

 

 

 

425,574

 

Operating income

 

 

109,972

 

 

 

76,195

 

 

 

323,533

 

 

 

236,031

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(11,629

)

 

 

(11,031

)

 

 

(34,278

)

 

 

(31,466

)

Interest income

 

 

507

 

 

 

397

 

 

 

1,019

 

 

 

894

 

Gain (loss) on investments (unrealized)

 

 

(901

)

 

 

488

 

 

 

(4,306

)

 

 

1,556

 

Other

 

 

2,822

 

 

 

2,644

 

 

 

8,537

 

 

 

10,297

 

Other income (expense), net

 

 

(9,201

)

 

 

(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 Valmont Industries, Inc.

 

$

72,112

 

 

$

51,650

 

 

$

210,531

 

 

$

168,774

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (000's) - Basic

 

 

21,332

 

 

 

21,175

 

 

 

21,308

 

 

 

21,182

 

Earnings per share - Basic

 

$

3.38

 

 

$

2.44

 

 

$

9.88

 

 

$

7.97

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.55

 

 

$

0.50

 

 

$

1.65

 

 

$

1.50

 

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter

 

 

Year-to-Date

 

 

13 Weeks Ended

 

39 Weeks Ended

 

 

09/24/2022

 

09/25/2021

 

09/24/2022

 

09/25/2021

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

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.

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 24, 2022

 

 

 

 

 

 

 

 

Intersegment

 

 

 

 

 

Infrastructure

 

Agriculture

 

Sales

 

Consolidated

Geographical market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

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 September 25, 2021

 

 

 

 

 

 

 

 

Intersegment

 

 

 

 

 

Infrastructure

 

Agriculture

 

Sales

 

Consolidated

Geographical market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

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 September 24, 2022

 

 

 

 

 

 

 

 

Intersegment

 

 

 

 

 

Infrastructure

 

Agriculture

 

Sales

 

Consolidated

Geographical market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

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 September 25, 2021

 

 

 

 

 

 

 

 

Intersegment

 

 

 

 

 

Infrastructure

 

Agriculture

 

Sales

 

Consolidated

Geographical market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

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

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

09/24/2022

 

12/25/2021

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

Goodwill and other assets

 

 

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

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(unaudited)

 

 

 

 

 

 

 

 

 

 

39 Weeks Ended

 

 

09/24/2022

 

09/25/2021

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

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
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 U.K. tax rate change on net earnings (adjusts GAAP tax rate from 19.0% to 22.5%) on fiscal 2021 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

 

Diluted

 

Thirty-nine

 

Diluted

 

 

weeks ended

 

earnings per

 

weeks ended

 

earnings per

 

 

September 24, 2022

 

share

 

September 24, 2022

 

share

Net earnings attributable to Valmont Industries, Inc. - as reported

 

$

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 Valmont Industries, Inc. - Adjusted1

 

$

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

 

 

September 25, 2021

 

share

 

September 25, 2021

 

share

Net earnings attributable to Valmont Industries, Inc. - as reported

 

$

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 U.K. statutory tax rate

 

 

?

 

 

 

?

 

 

 

(2,819

)

 

 

(0.13

)

Tax effect of adjustments2

 

 

(604

)

 

 

(0.03

)

 

 

(2,358

)

 

 

(0.11

)

Net earnings attributable to Valmont Industries, Inc. - Adjusted1

 

$

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 September 24, 2022

 

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

 

Net Sales - as reported

 

 

773,241

 

 

324,141

 

 

NM

 

 

 

1,097,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income as a % of Net Sales

 

 

12.1

%

 

13.3

%

 

NM

 

 

 

10.0

%

Adjusted Operating Income as a % of Net Sales

 

 

12.1

%

 

14.6

%

 

NM

 

 

 

10.4

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 25, 2021

 

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

 

Net Sales - as reported

 

 

632,457

 

 

236,325

 

 

NM

 

 

868,782

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income as a % of Net Sales

 

 

11.3

%

 

11.7

%

 

NM

 

 

8.8

%

Adjusted Operating Income as a % of Net Sales

 

 

11.3

%

 

13.5

%

 

NM

 

 

9.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended September 24, 2022

 

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

 

Net Sales - as reported

 

 

2,211,616

 

 

1,002,118

 

 

NM

 

 

3,213,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income as a % of Net Sales

 

 

11.6

%

 

13.8

%

 

NM

 

 

10.1

%

Adjusted Operating Income as a % of Net Sales

 

 

11.6

%

 

15.1

%

 

NM

 

 

10.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended September 25, 2021

 

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

 

Net Sales - as reported

 

 

1,793,710

 

 

744,587

 

 

NM

 

 

2,538,297

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Income as a % of Net Sales

 

 

10.4

%

 

14.6

%

 

NM

 

 

9.3

%

Adjusted Operating Income as a % of Net Sales

 

 

10.8

%

 

15.3

%

 

NM

 

 

9.8

%

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

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

 

 

 

Diluted Earnings Per Share Range - GAAP

 

$

12.95

 

$

13.30

 

 

 

Diluted Earnings Per Share Range - Adjusted

 

$

13.65

 

$

14.00

 

 

 

______________________

* The tax effect of adjustments is calculated based on the estimated income tax rate in each applicable jurisdiction.

 


These press releases may also interest you

at 22:37
PickUp USA Fitness (www.pickupusafitness.com), a fast-growing basketball gym franchise headquartered in Los Angeles, CA, announced their newest location would open in February 2023 in Jacksonville, FL. After a year of planning, the new Jacksonville...

at 22:23
PickUp USA Fitness (www.pickupusafitness.com) will be opening a new franchise location in Mentor next month at 8100 Tyler Blvd.  This will be the first PickUp USA in the Cleveland area. PickUp USA is a full-service basketball gym chain.  They cater...

at 22:00
Selected to continue as Semi-Finalists are: University of Arizona - Dr. Patrick Payne, Associate Professor Samuel J. Scherer & Lily...

at 21:46
automotiveMastermind (aM), part of S&P Global Mobility and the leading provider of predictive analytics and marketing automation solutions for dealerships, has signed a contract to join the Reynolds Certified Interface Program to directly integrate...

at 21:42
BioArctic AB's (publ) partner Eisai announced today that the European Medicines Agency (EMA) has accepted a marketing authorization application (MAA) for lecanemab (Brand Name in the U.S.: LEQEMBItm), an investigational anti-amyloid beta (A?)...

at 21:40
Sisecam Resources LP will release fourth quarter and year ended 2022 financial results after the market closes on Wednesday, February 1, 2023. ABOUT SISECAM RESOURCES LP Sisecam Resources LP, a master limited partnership, operates the trona ore...



News published on 26 october 2022 at 16:25 and distributed by: