Expands Operating Margins, Delivers Record Earnings per Share
OMAHA, Neb.–(BUSINESS WIRE)–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 second quarter ended July 1, 2023.
Second Quarter 2023 Highlights (all metrics compared to Second Quarter 2022 unless otherwise noted)
- Net Sales of $1.0 billion decreased 7.9%; accounting for the 2022 divestiture of the offshore wind energy structures business, reported in the “Other” segment, Net Sales decreased 5.7%1
- Operating Income increased 12.6% to $133.7 million, or 12.8% of net sales (increased 12.0% to $137.6 million or 13.2% adjusted1) compared to $118.7 million or 10.5% of net sales ($122.9 million or 11.1% adjusted1)
- Diluted Earnings per Share (“EPS”) grew to $4.21 ($4.37 adjusted1) compared to $3.53 ($3.70 adjusted1)
- Generated solid operating cash flows of $88.3 million in the second quarter and $109.5 million year-to-date; cash and cash equivalents at the end of the second quarter were $166.9 million
- Returned $36.6 million to shareholders through dividends and share repurchases including repurchasing 85,300 shares of Company stock for $24.0 million
- Recognized a more favorable effective tax rate of 26.4% driven by the geographic mix of earnings
- Released the Valmont 2023 Sustainability Report and enhanced the Company’s dedicated Sustainability website while updating key disclosures and highlighting Valmont products and solutions that support ESG principles
-
Hosted an Investor Day at the New York Stock Exchange, introducing a refreshed strategy and a new “Run Grow Transform” strategic framework to deliver sustainable outperformance, including updated 5-year financial targets (from base year 2022):
- Net Sales Growth (organic) of 5% – 8%
- Operating Margin of >14%
- EPS Compound Annual Growth Rate of 12% – 15%
- Return on Invested Capital of >18%
- Free Cash Flow Conversion of 1.0x Net Earnings (over the 5-year period)
- Providing updated 2023 full-year net sales growth outlook while maintaining diluted earnings per share outlook
1 Please see Reg G reconciliation to GAAP measures at end of document
Key Financial Metrics
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Second Quarter 2023 |
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GAAP |
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Adjusted1 |
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(000’s except per share amounts) |
|
07/01/2023 |
|
06/25/2022 |
|
vs. Q2 2022 |
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07/01/2023 |
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06/25/2022 |
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vs. Q2 2022 |
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|
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Q2 2023 |
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Q2 2022 |
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|
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Q2 2023 |
|
Q2 2022 |
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Net Sales |
|
$ |
1,046,296 |
|
$ |
1,135,532 |
|
(7.9) |
% |
|
$ |
1,046,296 |
|
$ |
1,110,100 |
|
(5.7) |
% |
Operating Income |
|
|
133,733 |
|
|
118,719 |
|
12.6 |
% |
|
|
137,642 |
|
|
122,859 |
|
12.0 |
% |
Operating Income as a % of Net Sales |
|
|
12.8 |
% |
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10.5 |
% |
|
|
|
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13.2 |
% |
|
11.1 |
% |
|
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Net Earnings |
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89,376 |
|
|
76,108 |
|
17.4 |
% |
|
|
92,739 |
|
|
79,682 |
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16.4 |
% |
Diluted Earnings Per Share |
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$ |
4.21 |
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$ |
3.53 |
|
19.3 |
% |
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$ |
4.37 |
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$ |
3.70 |
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18.1 |
% |
Average Shares Outstanding |
|
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21,229 |
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21,541 |
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21,229 |
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21,541 |
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Year-to-Date 2023 |
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GAAP |
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Adjusted1 |
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(000’s except per share amounts) |
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07/01/2023 |
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06/25/2022 |
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vs. FY 2022 |
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07/01/2023 |
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06/25/2022 |
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vs. FY 2022 |
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FY 2023 |
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FY 2022 |
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FY 2023 |
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FY 2022 |
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Net Sales |
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$ |
2,108,777 |
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$ |
2,116,352 |
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(0.4) |
% |
|
$ |
2,108,777 |
|
$ |
2,072,266 |
|
1.8 |
% |
Operating Income |
|
|
252,199 |
|
|
213,561 |
|
18.1 |
% |
|
|
259,767 |
|
|
221,844 |
|
17.1 |
% |
Operating Income as a % of Net Sales |
|
|
12.0 |
% |
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10.1 |
% |
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12.3 |
% |
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10.7 |
% |
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Net Earnings |
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163,916 |
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138,419 |
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18.4 |
% |
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170,392 |
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145,570 |
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17.1 |
% |
Diluted Earnings Per Share |
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$ |
7.67 |
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$ |
6.43 |
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19.3 |
% |
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$ |
7.97 |
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$ |
6.77 |
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17.7 |
% |
Average Shares Outstanding |
|
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21,370 |
|
|
21,516 |
|
|
|
|
|
21,370 |
|
|
21,516 |
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|
|
President and Chief Executive Officer Avner M. Applbaum commented, “We delivered another quarter of strong performance, expanding operating margins in both segments and achieving record earnings per share, demonstrating the resiliency of our portfolio, value-based pricing and operational excellence strategies. I’m very pleased with the solid execution by our global teams and our ability to maintain disciplined pricing strategies across the portfolio, despite softer than expected demand in North America agriculture and telecommunications markets. As we look ahead to the remainder of the year, we remain committed to executing on our strategic framework while capitalizing on investments in growth and innovation with a firm commitment to long-term shareholder value creation opportunities across our global businesses.”
Second Quarter 2023 Segment Review
Infrastructure (73.4% of Net Sales)
Products and solutions to serve the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to preserve metal products
Sales of $770.6 million grew 4.2% year-over-year. Sales growth was driven by favorable pricing globally, higher volumes, notably in the Solar and Transmission, Distribution, and Substation (“TD&S”) product lines, and sales from the ConcealFab acquisition, partially offset by lower Telecommunications volumes.
Operating Income improved to $116.0 million or 15.1% of net sales compared to $84.1 million or 11.4% of net sales in the second quarter of 2022, driven by favorable pricing with improved overall cost of goods sold.
Agriculture (26.6% of Net Sales)
Center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture
Sales of $279.9 million decreased 25.9% year-over-year. The benefit of higher average selling prices of irrigation equipment globally was more than offset by lower volumes. In North America, sales were lower as the second quarter of 2022 benefited from the ongoing delivery of record year-end backlog and growers delaying capital investment decisions in the quarter. International sales were lower as strong sales in Brazil were more than offset by lower sales in the EMEA region, partially due to timing of project sales. Sales of agriculture technology products and services globally were lower due to lower irrigation equipment volumes.
Operating Income decreased to $49.3 million or 17.7% of net sales ($53.2 million or 19.1% adjusted1) compared to $58.0 million or 15.5% of net sales ($62.2 million or 16.6% adjusted1) in the second quarter of 2022. Operating margin improvement was driven by favorable pricing and improved overall cost of goods sold, partially offset by higher SG&A, including incremental R&D expense for technology investments.
Other
Offshore wind energy structures business
As previously announced, the divestiture of the offshore wind energy structures business was completed in December 2022. In the second quarter of 2022, the subsequently-divested business generated sales of $25.4 million and operating income of $0.5 million.
Balance Sheet, Liquidity, and Capital Allocation
The Company generated solid second quarter 2023 operating cash flows of $88.3 million through strong earnings and effectively managing working capital. At the end of the second quarter, cash and cash equivalents were $166.9 million. During the quarter, Valmont repurchased $24.0 million of Company stock, with $346.3 million remaining on the share repurchase program.
Updating 2023 Full Year Financial Outlook and Key Assumptions
Taking into consideration second quarter sales and record diluted earnings per share results, and the near-term demand outlook for North America agriculture and telecommunications markets, the Company is updating its full-year net sales growth outlook from the previous indications that were communicated last quarter and providing updated key assumptions for the year.
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2023 Full Year Financial Outlook |
Previous Outlook |
Revised Outlook |
Net Sales Growth (vs. PY) |
4% to 7% |
0% to 2% |
GAAP Diluted Earnings per Share |
$14.80 to $15.35 |
No Change |
Adjusted Diluted Earnings per Share1 |
$15.45 to $16.00 |
No Change |
- Expect full-year operating margin improvement compared to 2022
- 2022 sales include $100 million from the offshore wind energy structures business which was divested at the end of fiscal 2022
- Effective tax rate of 28% to 29%, primarily due to expected geographic mix of earnings
- Minimal expected foreign currency translation impact to net sales
- Capital expenditures expected to be in the range of $105 to $115 million to support strategic growth and digital transformation initiatives
Applbaum continued, “We remain excited in our ability to drive multi-year profitable growth by capitalizing on the strong market drivers across our businesses, despite near-term softness in some markets. In the Infrastructure segment, the long-term need for critical investment globally is supporting multi-year market growth trends. Our backlog remains strong, reflecting the overall robust demand for our products and the trust our customers place in us to solve their most pressing infrastructure needs. We expect continued near-term softness in telecommunications markets as we are seeing capex spending by wireless carriers more aligned with historical trends following record levels of investment. In Agriculture, while market fundamentals remain positive, including projections of historically-high net farm income levels in the U.S., we are expecting modestly lower sales in North America in the second half of the year compared to the first half as growers continue to take a wait-and-see approach to purchasing decisions. The outcomes of the fall harvest should provide more clarity on farmer sentiment and expected buying patterns. International agriculture market demand remains strong driven by a robust project pipeline and continued sales growth in Brazil, supported by the recently-announced government financing program. Therefore, for the balance of the year, we expect international sales growth to more than offset any softness in North America, demonstrating the resilience of our increasingly diverse end markets. We continue to expect profitable growth across the portfolio, with full-year 2023 adjusted operating margins expected to approach 12%, driven by solid execution and supported by a backlog of approximately $1.5 billion. The operating margin improvement, along with a strong second quarter, supports maintaining our full-year earnings per share outlook. The organization is performing well, and our balance sheet remains strong, providing us with ample liquidity to support our capital allocation deployment strategy. We are confident in our ability to achieve our strategic objectives and deliver on our long-term financial targets, creating sustainable shareholder value.”
A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and Timothy P. Francis, Interim Chief Financial Officer, will be accessible by telephone on Thursday, July 27, 2023 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 2Q 2023 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 13734764. The replay will be available through 10:59 p.m. CDT on Thursday, August 3, 2023.
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.
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
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(Dollars in thousands, except per share amounts) |
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(Unaudited) |
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Thirteen weeks ended |
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Twenty-six weeks ended |
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|
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July 1, |
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June 25, |
|
July 1, |
|
June 25, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
|
$ |
1,046,296 |
|
|
$ |
1,135,532 |
|
|
$ |
2,108,777 |
|
|
$ |
2,116,352 |
|
Cost of sales |
|
|
716,899 |
|
|
|
842,931 |
|
|
|
1,470,795 |
|
|
|
1,574,565 |
|
Gross profit |
|
|
329,397 |
|
|
|
292,601 |
|
|
|
637,982 |
|
|
|
541,787 |
|
Selling, general, and administrative expenses |
|
|
195,664 |
|
|
|
173,882 |
|
|
|
385,783 |
|
|
|
328,226 |
|
Operating income |
|
|
133,733 |
|
|
|
118,719 |
|
|
|
252,199 |
|
|
|
213,561 |
|
Other income (expense) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Interest expense |
|
|
(14,917 |
) |
|
|
(11,386 |
) |
|
|
(28,022 |
) |
|
|
(22,649 |
) |
Interest income |
|
|
563 |
|
|
|
285 |
|
|
|
1,393 |
|
|
|
512 |
|
Gain (loss) on investments – unrealized |
|
|
941 |
|
|
|
(2,342 |
) |
|
|
2,135 |
|
|
|
(3,405 |
) |
Other |
|
|
612 |
|
|
|
2,073 |
|
|
|
(1,764 |
) |
|
|
5,715 |
|
Other income (expense), net |
|
|
(12,801 |
) |
|
|
(11,370 |
) |
|
|
(26,258 |
) |
|
|
(19,827 |
) |
Earnings before income taxes |
|
|
120,932 |
|
|
|
107,349 |
|
|
|
225,941 |
|
|
|
193,734 |
|
Income tax expense |
|
|
31,935 |
|
|
|
29,587 |
|
|
|
63,778 |
|
|
|
52,708 |
|
Equity in loss of nonconsolidated subsidiaries |
|
|
(199 |
) |
|
|
(555 |
) |
|
|
(1,020 |
) |
|
|
(913 |
) |
Net earnings |
|
|
88,798 |
|
|
|
77,207 |
|
|
|
161,143 |
|
|
|
140,113 |
|
Loss (earnings) attributable to non-controlling interests |
|
|
578 |
|
|
|
(1,099 |
) |
|
|
2,773 |
|
|
|
(1,694 |
) |
Net earnings attributable to Valmont Industries, Inc. |
|
$ |
89,376 |
|
|
$ |
76,108 |
|
|
$ |
163,916 |
|
|
$ |
138,419 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Average shares outstanding (000’s) – Basic |
|
|
21,029 |
|
|
|
21,313 |
|
|
|
21,149 |
|
|
|
21,296 |
|
Earnings per share – Basic |
|
$ |
4.25 |
|
|
$ |
3.57 |
|
|
$ |
7.75 |
|
|
$ |
6.50 |
|
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|
|
|
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|
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|
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|
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Average shares outstanding (000’s) – Diluted |
|
|
21,229 |
|
|
|
21,541 |
|
|
|
21,370 |
|
|
|
21,516 |
|
Earnings per share – Diluted |
|
$ |
4.21 |
|
|
$ |
3.53 |
|
|
$ |
7.67 |
|
|
$ |
6.43 |
|
|
|
|
|
|
|
|
|
|
|
|
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|
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Cash dividends per share |
|
$ |
0.60 |
|
|
$ |
0.55 |
|
|
$ |
1.20 |
|
|
$ |
1.10 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
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SUMMARY OPERATING RESULTS |
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(Dollars in thousands) |
||||||||||||||||
(Unaudited) |
||||||||||||||||
|
|
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|
|
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|
||||
|
|
Thirteen weeks ended |
|
Twenty-six weeks ended |
||||||||||||
|
|
July 1, |
|
June 25, |
|
July 1, |
|
June 25, |
||||||||
|
|
2023 |
|
2022 |
|
2023 |
|
2022 |
||||||||
Net sales |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Infrastructure |
|
$ |
770,595 |
|
|
$ |
739,518 |
|
|
$ |
1,506,701 |
|
|
$ |
1,401,590 |
|
Agriculture |
|
|
279,933 |
|
|
|
377,765 |
|
|
|
612,096 |
|
|
|
684,345 |
|
Other |
|
|
— |
|
|
|
25,432 |
|
|
|
— |
|
|
|
44,086 |
|
Total |
|
|
1,050,528 |
|
|
|
1,142,715 |
|
|
|
2,118,797 |
|
|
|
2,130,021 |
|
Less: Intersegment sales |
|
|
(4,232 |
) |
|
|
(7,183 |
) |
|
|
(10,020 |
) |
|
|
(13,669 |
) |
Total |
|
$ |
1,046,296 |
|
|
$ |
1,135,532 |
|
|
$ |
2,108,777 |
|
|
$ |
2,116,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
Operating Income (Loss) |
|
|
|
|
|
|
|
|
|
|
|
|
||||
Infrastructure |
|
$ |
115,950 |
|
|
$ |
84,127 |
|
|
$ |
210,302 |
|
|
$ |
162,443 |
|
Agriculture |
|
|
49,251 |
|
|
|
58,046 |
|
|
|
102,574 |
|
|
|
95,521 |
|
Other |
|
|
— |
|
|
|
516 |
|
|
|
— |
|
|
|
(293 |
) |
Corporate |
|
|
(31,468 |
) |
|
|
(23,970 |
) |
|
|
(60,677 |
) |
|
|
(44,110 |
) |
Total |
|
$ |
133,733 |
|
|
$ |
118,719 |
|
|
$ |
252,199 |
|
|
$ |
213,561 |
|
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 the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to preserve metal products.
Agriculture: This segment consists of the manufacture of center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture.
In addition to these two reportable segments, the Company had a business and related activities in 2022 that were not more than 10% of consolidated sales, operating income, or assets. This comprised the offshore wind energy structures business which was reported in the “Other” segment until its divestiture in December 2022.
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||||||||||||||
SUMMARY OPERATING RESULTS |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Thirteen weeks ended July 1, 2023 |
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|
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|||||||
|
|
Infrastructure |
|
Agriculture |
|
Other |
|
Sales |
|
Consolidated |
||||||||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America |
|
$ |
587,313 |
|
|
$ |
140,981 |
|
|
$ |
— |
|
|
$ |
(3,613 |
) |
|
$ |
724,681 |
|
International |
|
|
183,282 |
|
|
|
138,952 |
|
|
|
— |
|
|
|
(619 |
) |
|
|
321,615 |
|
Total |
|
$ |
770,595 |
|
|
$ |
279,933 |
|
|
$ |
— |
|
|
$ |
(4,232 |
) |
|
$ |
1,046,296 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Transmission, Distribution, and Substation |
|
$ |
314,307 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
314,307 |
|
Lighting and Transportation |
|
|
246,123 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
246,123 |
|
Coatings |
|
|
91,120 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,818 |
) |
|
|
89,302 |
|
Telecommunications |
|
|
67,738 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
67,738 |
|
Solar |
|
|
51,307 |
|
|
|
— |
|
|
|
— |
|
|
|
(619 |
) |
|
|
50,688 |
|
Irrigation Equipment and Parts |
|
|
— |
|
|
|
252,457 |
|
|
|
— |
|
|
|
(1,795 |
) |
|
|
250,662 |
|
Technology Products and Services |
|
|
— |
|
|
|
27,476 |
|
|
|
— |
|
|
|
— |
|
|
|
27,476 |
|
Total |
|
$ |
770,595 |
|
$ |
279,933 |
|
$ |
— |
|
$ |
(4,232 |
) |
|
$ |
1,046,296 |
|
|
Thirteen weeks ended June 25, 2022 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|||||||
|
|
Infrastructure |
|
Agriculture |
|
Other |
|
Sales |
|
Consolidated |
||||||||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America |
|
$ |
559,864 |
|
|
$ |
203,488 |
|
|
$ |
— |
|
|
$ |
(6,716 |
) |
|
$ |
756,636 |
|
International |
|
|
179,654 |
|
|
|
174,277 |
|
|
|
25,432 |
|
|
|
(467 |
) |
|
|
378,896 |
|
Total |
|
$ |
739,518 |
|
|
$ |
377,765 |
|
|
$ |
25,432 |
|
|
$ |
(7,183 |
) |
|
$ |
1,135,532 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Transmission, Distribution, and Substation |
|
$ |
295,835 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
295,835 |
|
Lighting and Transportation |
|
|
246,652 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
246,652 |
|
Coatings |
|
|
90,321 |
|
|
|
— |
|
|
|
— |
|
|
|
(4,200 |
) |
|
|
86,121 |
|
Telecommunications |
|
|
78,539 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
78,539 |
|
Solar |
|
|
28,171 |
|
|
|
— |
|
|
|
25,432 |
|
|
|
— |
|
|
|
53,603 |
|
Irrigation Equipment and Parts |
|
|
— |
|
|
|
347,585 |
|
|
|
— |
|
|
|
(2,983 |
) |
|
|
344,602 |
|
Technology Products and Services |
|
|
— |
|
|
|
30,180 |
|
|
|
— |
|
|
|
— |
|
|
|
30,180 |
|
Total |
|
$ |
739,518 |
|
$ |
377,765 |
|
$ |
25,432 |
|
$ |
(7,183 |
) |
|
$ |
1,135,532 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||||||||||||||
SUMMARY OPERATING RESULTS |
||||||||||||||||||||
(Dollars in thousands) |
||||||||||||||||||||
(Unaudited) |
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
|
|
Twenty-six weeks ended July 1, 2023 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|||||||
|
|
Infrastructure |
|
Agriculture |
|
Other |
|
Sales |
|
Consolidated |
||||||||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America |
|
$ |
1,171,396 |
|
|
$ |
323,850 |
|
|
$ |
— |
|
|
$ |
(8,987 |
) |
|
$ |
1,486,259 |
|
International |
|
|
335,305 |
|
|
|
288,246 |
|
|
|
— |
|
|
|
(1,033 |
) |
|
|
622,518 |
|
Total |
|
$ |
1,506,701 |
|
|
$ |
612,096 |
|
|
$ |
— |
|
|
$ |
(10,020 |
) |
|
$ |
2,108,777 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Transmission, Distribution, and Substation |
|
$ |
629,127 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
629,127 |
|
Lighting and Transportation |
|
|
475,259 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
475,259 |
|
Coatings |
|
|
181,234 |
|
|
|
— |
|
|
|
— |
|
|
|
(5,370 |
) |
|
|
175,864 |
|
Telecommunications |
|
|
135,875 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
135,875 |
|
Solar |
|
|
85,206 |
|
|
|
— |
|
|
|
— |
|
|
|
(1,033 |
) |
|
|
84,173 |
|
Irrigation Equipment and Parts |
|
|
— |
|
|
|
551,638 |
|
|
|
— |
|
|
|
(3,617 |
) |
|
|
548,021 |
|
Technology Products and Services |
|
|
— |
|
|
|
60,458 |
|
|
|
— |
|
|
|
— |
|
|
|
60,458 |
|
Total |
|
$ |
1,506,701 |
|
$ |
612,096 |
|
$ |
— |
|
$ |
(10,020 |
) |
|
$ |
2,108,777 |
|
|
Twenty-six weeks ended June 25, 2022 |
||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
Intersegment |
|
|
|
|||||||
|
|
Infrastructure |
|
Agriculture |
|
Other |
|
Sales |
|
Consolidated |
||||||||||
Geographical market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
North America |
|
$ |
1,065,844 |
|
|
$ |
385,743 |
|
|
$ |
— |
|
|
$ |
(13,202 |
) |
|
$ |
1,438,385 |
|
International |
|
|
335,746 |
|
|
|
298,602 |
|
|
|
44,086 |
|
|
|
(467 |
) |
|
|
677,967 |
|
Total |
|
$ |
1,401,590 |
|
|
$ |
684,345 |
|
|
$ |
44,086 |
|
|
$ |
(13,669 |
) |
|
$ |
2,116,352 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Product line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||
Transmission, Distribution, and Substation |
|
$ |
577,435 |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
— |
|
|
$ |
577,435 |
|
Lighting and Transportation |
|
|
459,419 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
459,419 |
|
Coatings |
|
|
172,297 |
|
|
|
— |
|
|
|
— |
|
|
|
(7,301 |
) |
|
|
164,996 |
|
Telecommunications |
|
|
139,935 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
139,935 |
|
Solar |
|
|
52,504 |
|
|
|
— |
|
|
|
44,086 |
|
|
|
— |
|
|
|
96,590 |
|
Irrigation Equipment and Parts |
|
|
— |
|
|
|
625,619 |
|
|
|
— |
|
|
|
(6,368 |
) |
|
|
619,251 |
|
Technology Products and Services |
|
|
— |
|
|
|
58,726 |
|
|
|
— |
|
|
|
— |
|
|
|
58,726 |
|
Total |
|
$ |
1,401,590 |
|
$ |
684,345 |
|
$ |
44,086 |
|
$ |
(13,669 |
) |
|
$ |
2,116,352 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||||
(Dollars in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
July 1, |
|
December 31, |
||||
|
|
2023 |
|
2022 |
||||
ASSETS |
|
|
|
|
|
|
||
Current assets: |
|
|
|
|
|
|
||
Cash and cash equivalents |
|
$ |
166,907 |
|
|
$ |
185,406 |
|
Receivables, net |
|
|
651,133 |
|
|
|
604,181 |
|
Inventories |
|
|
729,738 |
|
|
|
728,762 |
|
Contract assets |
|
|
154,410 |
|
|
|
174,539 |
|
Prepaid expenses and other current assets |
|
|
99,994 |
|
|
|
87,697 |
|
Total current assets |
|
|
1,802,182 |
|
|
|
1,780,585 |
|
Property, plant, and equipment, net |
|
|
603,112 |
|
|
|
595,578 |
|
Goodwill and other non-current assets |
|
|
1,210,546 |
|
|
|
1,180,833 |
|
Total assets |
|
$ |
3,615,840 |
|
|
$ |
3,556,996 |
|
|
|
|
|
|
|
|
||
LIABILITIES AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
||
Current liabilities: |
|
|
|
|
|
|
||
Current installments of long-term debt |
|
$ |
1,041 |
|
|
$ |
1,194 |
|
Notes payable to banks |
|
|
1,665 |
|
|
|
5,846 |
|
Accounts payable |
|
|
346,000 |
|
|
|
360,312 |
|
Accrued expenses |
|
|
240,499 |
|
|
|
248,320 |
|
Contract liabilities |
|
|
124,230 |
|
|
|
172,915 |
|
Income taxes payable |
|
|
23,152 |
|
|
|
3,664 |
|
Dividends payable |
|
|
12,607 |
|
|
|
11,742 |
|
Total current liabilities |
|
|
749,194 |
|
|
|
803,993 |
|
Long-term debt, excluding current installments |
|
|
952,704 |
|
|
|
870,935 |
|
Operating lease liabilities |
|
|
161,795 |
|
|
|
155,469 |
|
Other non-current liabilities |
|
|
81,855 |
|
|
|
84,887 |
|
Total liabilities |
|
|
1,945,548 |
|
|
|
1,915,284 |
|
Shareholders’ equity |
|
|
1,670,292 |
|
|
|
1,641,712 |
|
Total liabilities and shareholders’ equity |
|
$ |
3,615,840 |
|
$ |
3,556,996 |
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
(Dollars in thousands) |
||||||||
(Unaudited) |
||||||||
|
|
|
|
|
|
|
||
|
|
Twenty-six weeks ended |
||||||
|
|
July 1, |
|
June 25, |
||||
|
|
2023 |
|
2022 |
||||
Cash flows from operating activities: |
|
|
|
|
|
|
||
Net earnings |
|
$ |
161,143 |
|
|
$ |
140,113 |
|
Depreciation and amortization |
|
|
48,792 |
|
|
|
48,012 |
|
Contribution to defined benefit pension plan |
|
|
(15,259 |
) |
|
|
(17,155 |
) |
Gain on divestiture |
|
|
(2,994 |
) |
|
|
— |
|
Change in working capital |
|
|
(98,979 |
) |
|
|
(115,170 |
) |
Other |
|
|
16,843 |
|
|
|
12,219 |
|
Net cash flows provided by operating activities |
|
|
109,546 |
|
|
|
68,019 |
|
|
|
|
|
|
|
|
||
Cash flows from investing activities: |
|
|
|
|
|
|
||
Purchase of property, plant, and equipment |
|
|
(45,393 |
) |
|
|
(49,676 |
) |
Proceeds from divestiture, net of cash divested |
|
|
6,369 |
|
|
|
— |
|
Proceeds from property damage insurance claims |
|
|
4,844 |
|
|
|
— |
|
Acquisitions |
|
|
— |
|
|
|
(39,297 |
) |
Other |
|
|
134 |
|
|
|
1,162 |
|
Net cash flows used in investing activities |
|
|
(34,046 |
) |
|
|
(87,811 |
) |
|
|
|
|
|
|
|
||
Cash flows from financing activities: |
|
|
|
|
|
|
||
Proceeds from long-term borrowings |
|
|
165,012 |
|
|
|
201,462 |
|
Principal payments on long-term borrowings |
|
|
(84,105 |
) |
|
|
(156,973 |
) |
Net payments on short-term borrowings |
|
|
(4,693 |
) |
|
|
(9,155 |
) |
Purchase of treasury shares |
|
|
(135,115 |
) |
|
|
(9,776 |
) |
Dividends to noncontrolling interests |
|
|
(662 |
) |
|
|
— |
|
Purchase of noncontrolling interests |
|
|
— |
|
|
|
(4,292 |
) |
Dividends paid |
|
|
(24,376 |
) |
|
|
(22,337 |
) |
Other |
|
|
(10,215 |
) |
|
|
1,641 |
|
Net cash flows (used in) provided by financing activities |
|
|
(94,154 |
) |
|
|
570 |
|
Effect of exchange rates on cash and cash equivalents |
|
|
155 |
|
|
|
(3,431 |
) |
Net change in cash and cash equivalents |
|
|
(18,499 |
) |
|
|
(22,653 |
) |
Cash and cash equivalents – beginning of year |
|
|
185,406 |
|
|
|
177,232 |
|
Cash and cash equivalents – end of period |
|
$ |
166,907 |
|
|
$ |
154,579 |
|
Contacts
Renee Campbell
renee.campbell@valmont.com