Company Quick10K Filing
Alamo Group
Closing Price ($) Shares Out (MM) Market Cap ($MM)
$0.00 12 $1,156
10-Q 2019-10-31 Quarter: 2019-09-30
10-Q 2019-07-31 Quarter: 2019-06-30
10-Q 2019-05-01 Quarter: 2019-03-31
10-K 2019-03-01 Annual: 2018-12-31
10-Q 2018-10-31 Quarter: 2018-09-30
10-Q 2018-08-01 Quarter: 2018-06-30
10-Q 2018-05-03 Quarter: 2018-03-31
10-K 2018-03-01 Annual: 2017-12-31
10-Q 2017-10-31 Quarter: 2017-09-30
10-Q 2017-08-02 Quarter: 2017-06-30
10-Q 2017-05-04 Quarter: 2017-03-31
10-K 2017-03-07 Annual: 2016-12-31
10-Q 2016-11-04 Quarter: 2016-09-30
10-Q 2016-08-05 Quarter: 2016-06-30
10-Q 2016-05-06 Quarter: 2016-03-31
10-K 2016-03-04 Annual: 2015-12-31
10-Q 2015-11-06 Quarter: 2015-09-30
10-Q 2015-08-07 Quarter: 2015-06-30
10-Q 2015-05-08 Quarter: 2015-03-31
10-K 2015-03-06 Annual: 2014-12-31
10-Q 2014-11-06 Quarter: 2014-09-30
10-Q 2014-08-08 Quarter: 2014-06-30
10-Q 2014-05-08 Quarter: 2014-03-31
10-K 2014-03-11 Annual: 2013-12-31
10-Q 2013-11-08 Quarter: 2013-09-30
10-Q 2013-08-05 Quarter: 2013-06-30
10-Q 2013-05-03 Quarter: 2013-03-31
10-Q 2012-11-08 Quarter: 2012-09-30
10-Q 2012-08-09 Quarter: 2012-06-30
10-Q 2012-05-07 Quarter: 2012-03-31
10-K 2012-03-12 Annual: 2011-12-31
10-Q 2011-11-04 Quarter: 2011-09-30
10-Q 2011-08-05 Quarter: 2011-06-30
10-Q 2011-05-06 Quarter: 2011-03-31
10-K 2011-03-15 Annual: 2010-12-31
10-Q 2010-11-05 Quarter: 2010-09-30
10-Q 2010-08-06 Quarter: 2010-06-30
10-Q 2010-05-07 Quarter: 2010-03-31
10-K 2010-03-15 Annual: 2009-12-31
8-K 2019-12-13 Officers, Exhibits
8-K 2019-11-04 Officers, Exhibits
8-K 2019-10-30 Earnings, Exhibits
8-K 2019-10-29 Enter Agreement, M&A, Off-BS Arrangement, Exhibits
8-K 2019-09-11 Regulation FD
8-K 2019-09-11 Enter Agreement, Exhibits
8-K 2019-07-31 Earnings, Exhibits
8-K 2019-05-02 Shareholder Vote
8-K 2019-05-02 Officers, Exhibits
8-K 2019-05-01 Earnings, Exhibits
8-K 2019-03-06 Officers, Exhibits
8-K 2019-02-28 Earnings, Exhibits
8-K 2018-10-31 Earnings, Exhibits
8-K 2018-08-01 Earnings, Exhibits
8-K 2018-05-03 Earnings, Exhibits
8-K 2018-05-03 Shareholder Vote
8-K 2018-04-06 Other Events
8-K 2018-03-12 Other Events
8-K 2018-03-01 Earnings, Exhibits
ALG 2019-09-30
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
Item 3. Quantitative and Qualitative Disclosures About Market Risks
Item 4. Controls and Procedures
Part II. Other Information
Item 1. - Legal Proceedings
Item 1A. - Risk Factors
Item 2. - Unregistered Sales of Equity Securities and Use of Proceeds
Item 3. - Defaults Upon Senior Securities
Item 4. - Mine Safety Disclosures
Item 5. - Other Information
Item 6. - Exhibits
EX-10.2 a3162_001.htm
EX-31.1 a2019930-ex311.htm
EX-31.2 a2019930-ex312.htm
EX-31.3 a2019930-ex313.htm
EX-32.1 a2019930-ex321.htm
EX-32.2 a2019930-ex322.htm
EX-32.3 a2019930-ex323.htm

Alamo Group Earnings 2019-09-30

ALG 10Q Quarterly Report

Balance SheetIncome StatementCash Flow

Comparables ($MM TTM)
Ticker M Cap Assets Liab Rev G Profit Net Inc EBITDA EV G Margin EV/EBITDA ROA
HOLI 1,235 1,309 362 0 0 0 0 898 0%
VICR 1,222 231 36 281 133 27 38 1,151 47% 30.5 12%
ATKR 1,193 1,413 1,210 1,892 465 126 228 1,977 25% 8.7 9%
IMAX 1,181 876 265 376 202 38 60 1,098 54% 18.4 4%
ALG 1,156 867 324 1,061 266 76 122 1,274 25% 10.5 9%
VREX 1,152 1,044 595 783 244 8 74 1,538 31% 20.8 1%
MTSC 1,136 1,257 763 866 327 49 98 1,532 38% 15.6 4%
TNC 1,084 1,071 736 1,121 449 38 120 1,374 40% 11.4 4%
ESIO 1,081 408 84 378 173 129 143 1,040 46% 7.3 32%
MRC 1,047 2,629 1,957 4,034 691 76 159 1,750 17% 11.0 3%

Document
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 10-Q
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED SEPTEMBER 30, 2019
OR
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE
ACT OF 1934
FOR THE TRANSITION PERIOD FROM ____ TO ____

Commission file number 0-21220

ALAMO GROUP INC.
(Exact name of registrant as specified in its charter)
Delaware
74-1621248
(State or other jurisdiction of incorporation or organization)(I.R.S. Employer Identification Number)

 1627 East Walnut, Seguin, Texas  78155
(Address of principal executive offices, including zip code)
 
830-379-1480
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common Stock, par value
$.10 per share
ALGNew York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer
Accelerated filer
Non-accelerated filer
Smaller reporting company
Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes No ☒

At October 25, 2019, 11,826,104 shares of common stock, $.10 par value, of the registrant were outstanding.


1






































Alamo Group Inc. and Subsidiaries
 
INDEX
 
                                                                                                                                                                              
PART I.
FINANCIAL INFORMATION
PAGE
Item 1.
Interim Condensed Consolidated Financial Statements  (Unaudited)
September 30, 2019 and December 31, 2018
Three and Nine Months Ended September 30, 2019 and September 30, 2018
Three and Nine Months Ended September 30, 2019 and September 30, 2018
Three and Nine Months Ended September 30, 2019 and September 30, 2018
Nine Months Ended September 30, 2019 and September 30, 2018
Item 2.
Item 3.
Item 4.
PART II.
Item 1.
Legal Proceedings
Item 1A.
Risk Factors
Item 2.
Unregistered Sales of Equity Securities and Use of Proceeds
Item 3.
Defaults Upon Senior Securities
Item 4.
Mine Safety Disclosures
Item 5.
Other Information
Item 6.
Exhibits

2






































Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Balance Sheets
(Unaudited) 
 
(in thousands, except share amounts)
September 30, 2019December 31, 2018
ASSETS
Current assets:
Cash and cash equivalents
$60,279  $34,043  
Accounts receivable, net
243,296  228,098  
Inventories, net
206,516  176,630  
Prepaid expenses and other current assets
7,771  5,327  
Income tax receivable
6,615  8,745  
Total current assets
524,477  452,843  
Rental equipment, net
56,177  43,978  
Property, plant and equipment
243,777  219,135  
Less:  Accumulated depreciation
(136,838) (131,905) 
Total property, plant and equipment, net
106,939  87,230  
Goodwill
93,468  83,243  
Intangible assets, net
59,205  48,857  
Deferred income taxes
1,060  1,783  
Other non-current assets
15,067  3,699  
Total assets
$856,393  $721,633  
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Trade accounts payable
$69,009  $54,083  
Income taxes payable
2,516  2,865  
Accrued liabilities
48,525  43,785  
Current maturities of long-term debt and finance lease obligations
113  119  
Total current liabilities
120,163  100,852  
Long-term debt and finance lease obligations, net of current maturities
150,192  85,179  
Long-term tax liability
6,710  6,120  
Deferred pension liability
1,606  1,944  
Other long-term liabilities
14,190  8,436  
Deferred income taxes
12,480  11,731  
Stockholders’ equity:
Common stock, $0.10 par value, 20,000,000 shares authorized; 11,747,829 and 11,662,688 outstanding at September 30, 2019 and December 31, 2018, respectively
1,175  1,166  
Additional paid-in-capital
112,629  108,422  
Treasury stock, at cost; 82,600 and 42,600 shares at September 30, 2019 and December 31, 2018, respectively
(4,566) (426) 
Retained earnings
492,161  443,040  
Accumulated other comprehensive loss
(50,347) (44,831) 
Total stockholders’ equity
551,052  507,371  
Total liabilities and stockholders’ equity
$856,393  $721,633  

See accompanying notes.
3






































Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Income
(Unaudited)
 
Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands, except per share amounts)2019201820192018
Net sales:
Industrial
$158,499  $156,721  $484,924  $438,919  
Agricultural
59,797  61,464  168,129  179,182  
European
53,533  39,387  165,896  134,683  
Total net sales271,829  257,572  818,949  752,784  
Cost of sales203,119  190,800  613,798  559,301  
Gross profit68,710  66,772  205,151  193,483  
Selling, general and administrative expenses44,255  38,523  128,741  117,087  
Income from operations
24,455  28,249  76,410  76,396  
Interest expense(1,837) (1,399) (5,222) (4,233) 
Interest income359  100  862  309  
Other income (expense), net242  (265) (442) (491) 
Income before income taxes
23,219  26,685  71,608  71,981  
Provision for income taxes5,801  3,142  18,270  15,084  
Net Income
$17,418  $23,543  $53,338  $56,897  
Net income per common share:
Basic
$1.48  $2.01  $4.55  $4.88  
Diluted
$1.47  $2.00  $4.52  $4.84  
Average common shares:
Basic
11,748  11,689  11,724  11,649  
Diluted
11,813  11,777  11,796  11,758  
Dividends declared$0.12  $0.11  $0.36  $0.33  
 
 See accompanying notes.
 
4






































Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Comprehensive Income
(Unaudited)

Three Months Ended
September 30,
Nine Months Ended
September 30,
(in thousands)2019201820192018
Net income$17,418  $23,543  $53,338  $56,897  
Other comprehensive loss:
Foreign currency translation adjustments
(9,791) (924) (7,877) (9,657) 
Net gain on pension and other post-retirement benefits
215  211  645  634  
Unrealized gain during the period related to derivatives
1,864    1,852    
Other comprehensive loss before income tax expense
(7,712) (713) (5,380) (9,023) 
Income tax expense related to items of other comprehensive income(46) (44) (136) (133) 
Other comprehensive loss
(7,758) (757) (5,516) (9,156) 
Comprehensive income$9,660  $22,786  $47,822  $47,741  

See accompanying notes.



5






































Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Stockholders’ Equity
 (Unaudited)


For nine months ended September 30, 2019
Common Stock
Additional
Paid-in Capital
Treasury StockRetained Earnings
Accumulated
Other
Comprehensive Loss
Total Stock-
holders’ Equity
(in thousands)
SharesAmount
Balance at December 31, 201811,620  $1,166  $108,422  $(426) $443,040  $(44,831) $507,371  
Net income
—  —  —  —  15,253  —  15,253  
Translation adjustment
—  —  —  —  —  720  720  
Net actuarial gain arising during period, net of taxes—  —  —  —  —  170  170  
Stock-based compensation
—  —  627  —  —  —  627  
Common stock repurchase(15) —  —  (1,490) —  —  (1,490) 
Exercise of stock options
11  1  236  —  —  —  237  
Dividends paid ($0.12 per share)
—  —  —  —  (1,404) —  (1,404) 
Balance at March 31, 201911,616  $1,167  $109,285  $(1,916) $456,889  $(43,941) $521,484  
Net income
—  —  —  —  20,667  —  20,667  
Translation adjustment
—  —  —  —  —  1,194  1,194  
Unrealized derivative loss, net of taxes
—  —  —  —  —  (12) (12) 
Net actuarial gain arising during period, net of taxes—  —  —  —  —  170  170  
Stock-based compensation
—  —  948  —  —  —  948  
Common stock repurchase(15) —  (590) (1,465) —  —  (2,055) 
Exercise of stock options
64  7  1,833  —  —  —  1,840  
Dividends paid ($0.12 per share)
—  —  —  —  (1,404) —  (1,404) 
Balance at June 30, 201911,665  $1,174  $111,476  $(3,381) $476,152  $(42,589) $542,832  
Net income
—  —  —  —  17,418  —  17,418  
Translation adjustment
—  —  —  —  —  (9,791) (9,791) 
Unrealized derivative gain, net of taxes
—  —  —  —  —  1,864  1,864  
Net actuarial gain arising during period, net of taxes—  —  —  —  —  169  169  
Stock-based compensation
—  —  766  —  —  —  766  
Common stock repurchase(10) —  —  (1,185) —  —  (1,185) 
Exercise of stock options
10  1  387  —  —  —  388  
Dividends paid ($0.12 per share)
—  —  —  —  (1,409) —  (1,409) 
Balance at September 30, 201911,665  $1,175  $112,629  $(4,566) $492,161  $(50,347) $551,052  










6






































Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Stockholders’ Equity
 (Unaudited)


For nine months ended September 30, 2018
Common Stock
Additional Paid-in Capital
Treasury StockRetained Earnings
Accumulated
Other
Comprehensive Loss
Total Stock-
holders’ Equity
(in thousands)SharesAmount
Balance at December 31, 201711,534  $1,158  $103,864  $(426) $374,678  $(30,166) $449,108  
Net income
—  —  —  —  14,583  —  14,583  
Translation adjustment
—  —  —  —  —  3,117  3,117  
Net actuarial gain arising during period, net of taxes—  —  —  —  —  126  126  
Stock-based compensation
—  —  458  —  —  —  458  
Exercise of stock options
9  —  266  —  —  —  266  
Dividends paid ($0.11 per share)
—  —  —  —  (1,276) —  (1,276) 
Balance at March 31, 201811,543  $1,158  $104,588  $(426) $387,985  $(26,923) $466,382  
Net income
—  —  —  —  18,771  —  18,771  
Translation adjustment
—  —  —  —  —  (11,850) (11,850) 
Net actuarial gain arising during period, net of taxes—  —  —  —  —  208  208  
Stock-based compensation
—  —  730  —  —  —  730  
Common stock repurchase—  —  (437) —  —  —  (437) 
Exercise of stock options
67  7  1,913  —  —  —  1,920  
Dividends paid ($0.11 per share)
—  —  —  —  (1,277) —  (1,277) 
Balance at June 30, 201811,610  $1,165  $106,794  $(426) $405,479  $(38,565) $474,447  
Net income
—  —  —  —  23,543  —  23,543  
Translation adjustment
—  —  —  —  —  (924) (924) 
Net actuarial gain arising during period, net of taxes—  —  —  —  —  167  167  
Stock-based compensation
—  —  622  —  —  —  622  
Common stock repurchase—  —  1  —  —  —  1  
Exercise of stock options
8  1  320  —  —  —  321  
Dividends paid ($0.11 per share)
—  —  —  —  (1,285) —  (1,285) 
Balance at September 30, 201811,618  $1,166  $107,737  $(426) $427,737  $(39,322) $496,892  


See accompanying notes.

7






































Alamo Group Inc. and Subsidiaries
Interim Condensed Consolidated Statements of Cash Flows
(Unaudited)
Nine Months Ended
September 30,
(in thousands)20192018
Operating Activities
Net income$53,338  $56,897  
Adjustment to reconcile net income to net cash provided by operating activities:
Provision for doubtful accounts
280  (132) 
Depreciation - Property, plant and equipment
10,583  9,388  
Depreciation - Rental equipment
6,770  4,790  
Amortization of intangibles
3,081  2,630  
Amortization of debt issuance costs
166  166  
Stock-based compensation expense
2,341  1,810  
Provision for deferred income tax (benefit) expense(2,549) 1,160  
Gain on sale of property, plant and equipment
(732) (298) 
Changes in operating assets and liabilities, net of acquisitions:
Accounts receivable
(11,263) (24,916) 
Inventories
(8,413) (31,521) 
Rental equipment
(18,970) (16,758) 
Prepaid expenses and other assets
(5,377) (1,887) 
Trade accounts payable and accrued liabilities
9,481  15,797  
Income taxes payable
1,738  (8,887) 
Long-term tax payable590  (4,969) 
Other assets and long-term liabilities
3,146  317  
Net cash provided by operating activities
44,210  3,587  
Investing Activities
Acquisitions, net of cash acquired(58,531)   
Purchase of property, plant and equipment(19,488) (18,781) 
Proceeds from sale of property, plant and equipment1,987  1,037  
Net cash used in investing activities(76,032) (17,744) 
Financing Activities
Borrowings on bank revolving credit facility141,000  126,000  
Repayments on bank revolving credit facility(76,000) (85,000) 
Principal payments on finance leases(97) (82) 
Proceeds from issuance of long-term debt and finance leases2    
Dividends paid(4,217) (3,838) 
Proceeds from exercise of stock options2,465  2,507  
Purchase of common stock for treasury(4,140)   
Cost of common stock repurchased(590) (436) 
Net cash provided by financing activities58,423  39,151  
Effect of exchange rate changes on cash and cash equivalents(365) (1,487) 
Net change in cash and cash equivalents26,236  23,507  
Cash and cash equivalents at beginning of the year34,043  25,373  
Cash and cash equivalents at end of the period$60,279  $48,880  
Cash paid during the period for:
Interest
$5,327  $3,889  
Income taxes
18,431  26,568  
See accompanying notes.
8






































Alamo Group Inc. and Subsidiaries
Notes to Interim Condensed Consolidated Financial Statements - (Unaudited)
September 30, 2019
 
1.  Basis of Financial Statement Presentation

General

The accompanying unaudited interim condensed consolidated financial statements of Alamo Group Inc. and its subsidiaries (the “Company”) have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulations S-X.  Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included.  Operating results for the periods presented are not necessarily indicative of the results that may be expected for the year ending December 31, 2019.  The balance sheet at December 31, 2018 has been derived from the audited financial statements at that date but does not include all of the information and footnotes required by U.S. GAAP for complete financial statements.  For further information, refer to the consolidated financial statements and footnotes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2018 (the "2018 10-K").

Accounting Pronouncements Adopted on January 1, 2019

In February 2016, the FASB issued ASU No. 2016-02, “Leases (Topic 842)". This update requires that a lessee recognize in the statement of financial position a liability to make lease payments and a right-of-use asset representing its right to use the underlying asset for the lease term. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. Similar to current guidance, the update continues to differentiate between finance leases and operating leases, however this distinction now primarily relates to differences in the manner of expense recognition over time and in the classification of lease payments in the statement of cash flows. The updated guidance leaves the accounting for leases by lessors largely unchanged from existing GAAP. The guidance became effective for us on January 1, 2019. As a lessee, this standard primarily impacted our accounting for long-term real estate and equipment leases, for which we recognized right-of-use assets of $7,747,000 and a corresponding lease liability of $