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 June 29, 2024.
President and Chief Executive Officer Avner M. Applbaum commented, “Our team demonstrated their dedication to enhancing shareholder value by delivering another quarter of operating margin expansion and earnings per share growth. Second quarter results in both segments were driven by commercial and operational execution, pricing strategies, and a fundamentally improved cost structure. Additionally, our Infrastructure segment benefited from declining steel costs, contributing to higher profitability. We are steadily progressing in adjusting and expanding our factory output, creating flexibility to meet the evolving needs of our customers, a strategy that will continue to yield benefits in future quarters. In Agriculture, severe weather in the U.S. led to a large increase in replacement sales. Brazil remains soft as lower grain prices are impacting growers’ buying behavior, while Middle East projects are on track. We strengthened our balance sheet, with earnings growth and effective working capital management driving strong cash generation. This enables us to advance our capital allocation strategy and drive higher returns on invested capital. I am very pleased with our progress towards our strategic priorities which are grounded in the Valmont Business Model, helping us consistently create value and deliver outstanding results.”
Second Quarter 2024 Highlights (all metrics compared to Second Quarter 2023 unless otherwise noted)
- Net Sales of $1.0 billion were similar to prior year
- Operating Income increased 10.2% to $147.3 million or 14.2% of net sales compared to $133.7 million or 12.8% of net sales
- Diluted Earnings per Share (EPS) grew 16.6% to $4.91 compared to $4.21; second quarter 2024 EPS includes a tax benefit of approximately $3.0 million or $0.15 per share
- Generated operating cash flows of $130.8 million; cash and cash equivalents at the end of the second quarter were $163.1 million
- Returned $27.1 million to shareholders through share repurchases and dividends, and reduced borrowings on the revolving credit facility by approximately $90.0 million
- Raising full-year 2024 diluted EPS guidance to $16.50 to $17.30; previously $15.40 to $16.40
Key Financial Metrics
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Second Quarter 2024 |
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(000s except per share amounts) |
|
6/29/2024 |
|
7/1/2023 |
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||
|
|
|
Q2 2024 |
|
Q2 2023 |
|
vs. Q2 2023 |
|
||
|
Net Sales |
|
$ |
1,039,737 |
|
$ |
1,046,296 |
|
(0.6) |
% |
|
Gross Profit |
|
|
320,282 |
|
|
329,397 |
|
(2.8) |
% |
|
Gross Profit as a % of Net Sales |
|
|
30.8 |
% |
|
31.5 |
% |
|
|
|
Operating Income |
|
|
147,308 |
|
|
133,733 |
|
10.2 |
% |
|
Operating Income as a % of Net Sales |
|
|
14.2 |
% |
|
12.8 |
% |
|
|
|
Net Earnings Attributable to Valmont Industries, Inc.1 |
|
|
99,716 |
|
|
89,376 |
|
11.6 |
% |
|
Diluted Earnings per Share1 |
|
|
4.91 |
|
|
4.21 |
|
16.6 |
% |
|
Weighted Average Shares Outstanding |
|
|
20,292 |
|
|
21,229 |
|
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|
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Year-to-Date 2024 |
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(000s except per share amounts) |
|
6/29/2024 |
|
7/1/2023 |
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||
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FY 2024 |
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FY 2023 |
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vs. FY 2023 |
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||
|
Net Sales |
|
$ |
2,017,565 |
|
$ |
2,108,777 |
|
(4.3) |
% |
|
Gross Profit |
|
|
626,498 |
|
|
637,982 |
|
(1.8) |
% |
|
Gross Profit as a % of Net Sales |
|
|
31.1 |
% |
|
30.3 |
% |
|
|
|
Operating Income |
|
|
278,861 |
|
|
252,199 |
|
10.6 |
% |
|
Operating Income as a % of Net Sales |
|
|
13.8 |
% |
|
12.0 |
% |
|
|
|
Net Earnings Attributable to Valmont Industries, Inc.1 |
|
|
187,538 |
|
|
163,916 |
|
14.4 |
% |
|
Diluted Earnings per Share1 |
|
|
9.24 |
|
|
7.67 |
|
20.5 |
% |
|
Weighted Average Shares Outstanding |
|
|
20,307 |
|
|
21,370 |
|
|
|
|
1Q2 2024 includes a tax benefit of approximately $3.0 million or $0.15 per share due to the reduction of a valuation allowance on a tax loss carryforward in a foreign subsidiary |
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Second Quarter 2024 Segment Review
Infrastructure (73.1% of Net Sales)
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 $762.7 million decreased 1.0% year-over-year. Volumes in the Transmission, Distribution, and Substation (Utility) product line were slightly higher. A greater mix of distribution and substation structures and the unfavorable contractual price impact from steel index deflation limited sales growth this quarter. Telecommunications volumes were much lower due to a softer market environment compared to last year. Solar volumes were also lower due to project timing. Pricing was favorable for the segment as steel index deflation was offset by favorable mix.
Operating Income increased to $133.6 million or 17.6% of net sales compared to $116.0 million or 15.1% of net sales in the second quarter of 2023 driven by improved commercial execution, pricing strategies, lower cost of goods sold due to declining steel costs, and reduced SG&A expenses.
Agriculture (26.9% of Net Sales)
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 $281.7 million grew slightly year-over-year. In North America, irrigation equipment volumes were significantly higher driven by a large increase in replacement sales due to severe weather impacts in the midwestern and southern United States. Average irrigation selling prices were lower compared to last year, primarily due to targeted regional pricing actions.
International sales decreased compared to last year. Sales were significantly lower in Brazil due to normalizing backlog levels and lower grain prices impacting growers’ buying behavior. These lower sales were partially offset by higher Middle East project sales and the contribution from the HR Products acquisition.
Operating Income was $40.0 million or 14.3% of net sales compared to $49.3 million or 17.7% of net sales in the second quarter of 2023. The benefit of reduced SG&A expenses was more than offset by the impact of lower volumes and pricing in Brazil.
Balance Sheet, Liquidity, and Capital Allocation
The Company generated operating cash flows of $130.8 million, and cash and cash equivalents at the end of the second quarter were $163.1 million. During the quarter, Valmont repurchased $14.9 million of Company stock, and $121.2 million remains on the authorized share repurchase program.
Updating 2024 Full-Year Financial Outlook and Key Assumptions
The Company is reaffirming its commitment to focus on strategic areas to enhance profitability and return on invested capital. As a result, we are exiting certain low-margin Solar projects leading to an expected decrease of approximately $40.0 million in Solar sales from the previous outlook. Additionally, the contractual price impact from steel index deflation is leading us to adjust our expected increase in Utility sales downward from the previous outlook. These two factors contribute to an approximate $80.0 million decrease in the Infrastructure segment net sales growth projections for the year, with minimal impact on segment profitability. The Company is also raising its 2024 full-year diluted earnings per share outlook from the previous guidance provided last quarter and updating key assumptions for the year.
|
Metric |
Previous Outlook |
Current Outlook |
|
Net Sales Change (vs. PY) |
(2.0%) to 0.5% |
(3.5%) to (1.5%) |
|
Infrastructure Net Sales |
Growth Approaching Mid-Single Digits |
Flat to 1.5% |
|
Agriculture Net Sales (vs. PY) |
(15.0%) to (10.0%) |
No Change from Previous Outlook |
|
Diluted Earnings per Share |
$15.40 to $16.40 |
$16.50 to $17.30 |
- Steel cost assumptions aligned with hot rolled coil futures market
- Effective tax rate of approximately 26.0%
- Minimal expected foreign currency translation impact on net sales
- For cash flow purposes, capital expenditures now expected to be in the range of $95.0 to $110.0 million to support strategic growth initiatives
Applbaum added, “I am pleased that we are increasing our diluted earnings per share outlook for the year even as we are decreasing our net sales guidance. We are improving operating margins as we meet evolving customer needs and are driving toward profitable growth. We remain committed to increasing our output to capitalize on market opportunities as the long-term demand for our products remains strong. Our broad exposure to infrastructure and agriculture markets helps us effectively manage market cycles and share resources across businesses, improving efficiency and returns on investment. We believe these advantages will become increasingly important as the energy transition accelerates and agriculture markets recover. I am confident in our ability to strengthen our core businesses, deliver strong returns on invested capital and enhance 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 25, 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 2Q 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 13742905. The replay will be available through 10:59 p.m. CT on Thursday, August 1, 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.
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VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS |
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(Dollars and shares 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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June 29, |
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July 1, |
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June 29, |
|
July 1, |
||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
||||||||
|
Net sales |
|
$ |
1,039,737 |
|
|
$ |
1,046,296 |
|
|
$ |
2,017,565 |
|
|
$ |
2,108,777 |
|
|
Cost of sales |
|
|
719,455 |
|
|
|
716,899 |
|
|
|
1,391,067 |
|
|
|
1,470,795 |
|
|
Gross profit |
|
|
320,282 |
|
|
|
329,397 |
|
|
|
626,498 |
|
|
|
637,982 |
|
|
Selling, general, and administrative expenses |
|
|
172,974 |
|
|
|
195,664 |
|
|
|
347,637 |
|
|
|
385,783 |
|
|
Operating income |
|
|
147,308 |
|
|
|
133,733 |
|
|
|
278,861 |
|
|
|
252,199 |
|
|
Other income (expenses): |
|
|
|
|
|
|
|
|
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|
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||||
|
Interest expense |
|
|
(15,846 |
) |
|
|
(14,917 |
) |
|
|
(32,067 |
) |
|
|
(28,022 |
) |
|
Interest income |
|
|
1,499 |
|
|
|
563 |
|
|
|
3,278 |
|
|
|
1,393 |
|
|
Gain on deferred compensation investments |
|
|
525 |
|
|
|
941 |
|
|
|
1,956 |
|
|
|
2,135 |
|
|
Gain on divestiture |
|
|
— |
|
|
|
2,994 |
|
|
|
— |
|
|
|
2,994 |
|
|
Other |
|
|
(1,250 |
) |
|
|
(2,382 |
) |
|
|
(1,355 |
) |
|
|
(4,758 |
) |
|
Total other income (expenses) |
|
|
(15,072 |
) |
|
|
(12,801 |
) |
|
|
(28,188 |
) |
|
|
(26,258 |
) |
|
Earnings before income taxes and equity in loss of nonconsolidated subsidiaries |
|
|
132,236 |
|
|
|
120,932 |
|
|
|
250,673 |
|
|
|
225,941 |
|
|
Income tax expense |
|
|
31,067 |
|
|
|
31,935 |
|
|
|
61,055 |
|
|
|
63,778 |
|
|
Equity in loss of nonconsolidated subsidiaries |
|
|
(19 |
) |
|
|
(199 |
) |
|
|
(39 |
) |
|
|
(1,020 |
) |
|
Net earnings |
|
|
101,150 |
|
|
|
88,798 |
|
|
|
189,579 |
|
|
|
161,143 |
|
|
Loss (earnings) attributable to redeemable noncontrolling interests |
|
|
(1,434 |
) |
|
|
578 |
|
|
|
(2,041 |
) |
|
|
2,773 |
|
|
Net earnings attributable to Valmont Industries, Inc. |
|
$ |
99,716 |
|
|
$ |
89,376 |
|
|
$ |
187,538 |
|
|
$ |
163,916 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average shares outstanding – Basic |
|
|
20,175 |
|
|
|
21,029 |
|
|
|
20,182 |
|
|
|
21,149 |
|
|
Earnings per share – Basic |
|
$ |
4.94 |
|
|
$ |
4.25 |
|
|
$ |
9.29 |
|
|
$ |
7.75 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Weighted average shares outstanding – Diluted |
|
|
20,292 |
|
|
|
21,229 |
|
|
|
20,307 |
|
|
|
21,370 |
|
|
Earnings per share – Diluted |
|
$ |
4.91 |
|
|
$ |
4.21 |
|
|
$ |
9.24 |
|
|
$ |
7.67 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Cash dividends per share |
|
$ |
0.60 |
|
|
$ |
0.60 |
|
|
$ |
1.20 |
|
|
$ |
1.20 |
|
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
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|
SUMMARY OPERATING RESULTS |
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(Dollars in thousands) |
|||||||||||||||||
|
(Unaudited) |
|||||||||||||||||
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Thirteen weeks ended |
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Twenty-six weeks ended |
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June 29, |
|
July 1, |
|
June 29, |
|
July 1, |
|
||||||||
|
|
|
2024 |
|
2023 |
|
2024 |
|
2023 |
|
||||||||
|
Infrastructure |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
760,430 |
|
|
$ |
768,158 |
|
|
$ |
1,481,163 |
|
|
$ |
1,500,298 |
|
|
|
Gross profit |
|
|
232,403 |
|
|
|
224,876 |
|
|
|
450,020 |
|
|
|
425,271 |
|
|
|
as a percent of net sales |
|
|
30.6 |
|
% |
|
29.3 |
|
% |
|
30.4 |
|
% |
|
28.3 |
|
% |
|
Selling, general, and administrative expenses |
|
|
98,822 |
|
|
|
108,926 |
|
|
|
198,575 |
|
|
|
214,969 |
|
|
|
as a percent of net sales |
|
|
13.0 |
|
% |
|
14.2 |
|
% |
|
13.4 |
|
% |
|
14.3 |
|
% |
|
Operating income |
|
|
133,581 |
|
|
|
115,950 |
|
|
|
251,445 |
|
|
|
210,302 |
|
|
|
as a percent of net sales |
|
|
17.6 |
|
% |
|
15.1 |
|
% |
|
17.0 |
|
% |
|
14.0 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Agriculture |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Net sales |
|
$ |
279,307 |
|
|
$ |
278,138 |
|
|
$ |
536,402 |
|
|
$ |
608,479 |
|
|
|
Gross profit |
|
|
87,879 |
|
|
|
104,521 |
|
|
|
176,478 |
|
|
|
212,711 |
|
|
|
as a percent of net sales |
|
|
31.5 |
|
% |
|
37.6 |
|
% |
|
32.9 |
|
% |
|
35.0 |
|
% |
|
Selling, general, and administrative expenses |
|
|
47,908 |
|
|
|
55,270 |
|
|
|
95,534 |
|
|
|
110,137 |
|
|
|
as a percent of net sales |
|
|
17.2 |
|
% |
|
19.9 |
|
% |
|
17.8 |
|
% |
|
18.1 |
|
% |
|
Operating income |
|
|
39,971 |
|
|
|
49,251 |
|
|
|
80,944 |
|
|
|
102,574 |
|
|
|
as a percent of net sales |
|
|
14.3 |
|
% |
|
17.7 |
|
% |
|
15.1 |
|
% |
|
16.9 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Corporate |
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
|
Selling, general, and administrative expenses |
|
$ |
26,244 |
|
|
$ |
31,468 |
|
|
$ |
53,528 |
|
|
$ |
60,677 |
|
|
|
Operating loss |
|
|
(26,244 |
) |
|
|
(31,468 |
) |
|
|
(53,528 |
) |
|
|
(60,677 |
) |
|
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
|||||||||||||
|
SUMMARY OPERATING RESULTS |
|||||||||||||
|
(Dollars in thousands) |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended June 29, 2024 |
|||||||||||
|
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
|
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
582,143 |
|
$ |
161,310 |
|
$ |
(4,686 |
) |
|
$ |
738,767 |
|
International |
|
|
180,599 |
|
|
120,393 |
|
|
(22 |
) |
|
|
300,970 |
|
Total sales |
|
$ |
762,742 |
|
$ |
281,703 |
|
$ |
(4,708 |
) |
|
$ |
1,039,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
323,087 |
|
$ |
— |
|
$ |
— |
|
|
$ |
323,087 |
|
Lighting and Transportation |
|
|
243,562 |
|
|
— |
|
|
— |
|
|
|
243,562 |
|
Coatings |
|
|
91,574 |
|
|
— |
|
|
(2,294 |
) |
|
|
89,280 |
|
Telecommunications |
|
|
58,400 |
|
|
— |
|
|
— |
|
|
|
58,400 |
|
Solar |
|
|
46,119 |
|
|
— |
|
|
(18 |
) |
|
|
46,101 |
|
Irrigation Equipment and Parts |
|
|
— |
|
|
254,310 |
|
|
(2,396 |
) |
|
|
251,914 |
|
Technology Products and Services |
|
|
— |
|
|
27,393 |
|
|
— |
|
|
|
27,393 |
|
Total sales |
|
$ |
762,742 |
|
$ |
281,703 |
|
$ |
(4,708 |
) |
|
$ |
1,039,737 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Thirteen weeks ended July 1, 2023 |
|||||||||||
|
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
|
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
587,313 |
|
$ |
140,981 |
|
$ |
(3,613 |
) |
|
$ |
724,681 |
|
International |
|
|
183,282 |
|
|
138,952 |
|
|
(619 |
) |
|
|
321,615 |
|
Total sales |
|
$ |
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 sales |
|
$ |
770,595 |
|
$ |
279,933 |
|
$ |
(4,232 |
) |
|
$ |
1,046,296 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
|||||||||||||
|
SUMMARY OPERATING RESULTS |
|||||||||||||
|
(Dollars in thousands) |
|||||||||||||
|
(Unaudited) |
|||||||||||||
|
|
|
Twenty-six weeks ended June 29, 2024 |
|||||||||||
|
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
Consolidated |
|||||
|
Geographical Market: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
North America |
|
$ |
1,150,715 |
|
$ |
321,225 |
|
$ |
(9,152 |
) |
|
$ |
1,462,788 |
|
International |
|
|
335,641 |
|
|
219,213 |
|
|
(77 |
) |
|
|
554,777 |
|
Total sales |
|
$ |
1,486,356 |
|
$ |
540,438 |
|
$ |
(9,229 |
) |
|
$ |
2,017,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Product Line: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Transmission, Distribution, and Substation |
|
$ |
648,343 |
|
$ |
— |
|
$ |
— |
|
|
$ |
648,343 |
|
Lighting and Transportation |
|
|
465,658 |
|
|
— |
|
|
— |
|
|
|
465,658 |
|
Coatings |
|
|
178,664 |
|
|
— |
|
|
(5,120 |
) |
|
|
173,544 |
|
Telecommunications |
|
|
112,361 |
|
|
— |
|
|
— |
|
|
|
112,361 |
|
Solar |
|
|
81,330 |
|
|
— |
|
|
(73 |
) |
|
|
81,257 |
|
Irrigation Equipment and Parts |
|
|
— |
|
|
487,430 |
|
|
(4,036 |
) |
|
|
483,394 |
|
Technology Products and Services |
|
|
— |
|
|
53,008 |
|
|
— |
|
|
|
53,008 |
|
Total sales |
|
$ |
1,486,356 |
|
$ |
540,438 |
|
$ |
(9,229 |
) |
|
$ |
2,017,565 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Twenty-six weeks ended July 1, 2023 |
|||||||||||
|
|
|
Infrastructure |
|
Agriculture |
|
Intersegment |
|
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 sales |
|
$ |
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 sales |
|
$ |
1,506,701 |
|
$ |
612,096 |
|
$ |
(10,020 |
) |
|
$ |
2,108,777 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||
|
CONDENSED CONSOLIDATED BALANCE SHEETS |
||||||
|
(Dollars in thousands) |
||||||
|
(Unaudited) |
||||||
|
|
|
|
|
|
|
|
|
|
|
June 29, |
|
December 30, |
||
|
|
|
2024 |
|
2023 |
||
|
ASSETS |
|
|
|
|
|
|
|
Current assets: |
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
163,142 |
|
$ |
203,041 |
|
Receivables, net |
|
|
703,255 |
|
|
657,960 |
|
Inventories |
|
|
633,232 |
|
|
658,428 |
|
Contract assets |
|
|
191,846 |
|
|
175,721 |
|
Prepaid expenses and other current assets |
|
|
92,560 |
|
|
92,479 |
|
Total current assets |
|
|
1,784,035 |
|
|
1,787,629 |
|
Property, plant, and equipment, net |
|
|
604,326 |
|
|
617,394 |
|
Goodwill and other non-current assets |
|
|
1,068,841 |
|
|
1,072,425 |
|
Total assets |
|
$ |
3,457,202 |
|
$ |
3,477,448 |
|
|
|
|
|
|
|
|
|
LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS, |
|
|
|
|
|
|
|
AND SHAREHOLDERS’ EQUITY |
|
|
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
|
|
Current installments of long-term debt |
|
$ |
569 |
|
$ |
719 |
|
Notes payable to banks |
|
|
1,876 |
|
|
3,205 |
|
Accounts payable |
|
|
353,729 |
|
|
358,311 |
|
Accrued expenses |
|
|
247,524 |
|
|
277,764 |
|
Contract liabilities |
|
|
68,811 |
|
|
70,978 |
|
Income taxes payable |
|
|
20,427 |
|
|
— |
|
Dividends payable |
|
|
12,098 |
|
|
12,125 |
|
Total current liabilities |
|
|
705,034 |
|
|
723,102 |
|
Long-term debt, excluding current installments |
|
|
1,017,543 |
|
|
1,107,885 |
|
Operating lease liabilities |
|
|
154,247 |
|
|
162,743 |
|
Other non-current liabilities |
|
|
62,648 |
|
|
66,646 |
|
Total liabilities |
|
|
1,939,472 |
|
|
2,060,376 |
|
Redeemable noncontrolling interests |
|
|
46,249 |
|
|
62,792 |
|
Shareholders’ equity |
|
|
1,471,481 |
|
|
1,354,280 |
|
Total liabilities, redeemable noncontrolling interests, and shareholders’ equity |
|
$ |
3,457,202 |
|
$ |
3,477,448 |
|
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES |
||||||||
|
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS |
||||||||
|
(Dollars in thousands) |
||||||||
|
(Unaudited) |
||||||||
|
|
|
|
|
|
|
|
||
|
|
|
Twenty-six weeks ended |
||||||
|
|
|
June 29, |
|
July 1, |
||||
|
|
|
2024 |
|
2023 |
||||
|
Cash flows from operating activities: |
|
|
|
|
|
|
||
|
Net earnings |
|
$ |
189,579 |
|
|
$ |
161,143 |
|
|
Depreciation and amortization |
|
|
46,526 |
|
|
|
48,792 |
|
|
Contribution to defined benefit pension plan |
|
|
(18,009 |
) |
|
|
(15,259 |
) |
|
Gain on divestiture |
|
|
— |
|
|
|
(2,994 |
) |
|
Change in working capital |
|
|
(78,305 |
) |
|
|
(98,979 |
) |
|
Other |
|
|
14,352 |
|
|
|
16,843 |
|
|
Net cash flows from operating activities |
|
|
154,143 |
|
|
|
109,546 |
|
|
Cash flows from investing activities: |
|
|
|
|
|
|
||
|
Purchase of property, plant, and equipment |
|
|
(33,328 |
) |
|
|
(45,393 |
) |
|
Proceeds from divestiture, net of cash divested |
|
|
— |
|
|
|
6,369 |
|
|
Proceeds from property damage insurance claims |
|
|
— |
|
|
|
4,844 |
|
|
Other |
|
|
(3,176 |
) |
|
|
134 |
|
|
Net cash flows from investing activities |
|
|
(36,504 |
) |
|
|
(34,046 |
) |
|
Cash flows from financing activities: |
|
|
|
|
|
|
||
|
Net payments on short-term borrowings |
|
|
(1,275 |
) |
|
|
(4,693 |
) |
|
Proceeds from long-term borrowings |
|
|
15,009 |
|
|
|
165,012 |
|
|
Principal payments on long-term borrowings |
|
|
(105,349 |
) |
|
|
(84,105 |
) |
|
Dividends paid |
|
|
(24,239 |
) |
|
|
(24,376 |
) |
|
Purchase of redeemable noncontrolling interests |
|
|
(17,745 |
) |
|
|
— |
|
|
Purchase of treasury shares |
|
|
(14,941 |
) |
|
|
(135,115 |
) |
|
Other |
|
|
(2,335 |
) |
|
|
(10,877 |
) |
|
Net cash flows from financing activities |
|
|
(150,875 |
) |
|
|
(94,154 |
) |
|
Effect of exchange rates on cash and cash equivalents |
|
|
(6,663 |
) |
|
|
155 |
|
|
Net change in cash and cash equivalents |
|
|
(39,899 |
) |
|
|
(18,499 |
) |
|
Cash and cash equivalents—beginning of period |
|
|
203,041 |
|
|
|
185,406 |
|
|
Cash and cash equivalents—end of period |
|
$ |
163,142 |
|
|
$ |
166,907 |
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20240724630474/en/