Business Wire

Valmont Reports Second Quarter 2023 Results

9 Mins read

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Second Quarter 2023

 

GAAP

 

Adjusted1

 

(000’s except per share amounts)

 

07/01/2023

 

06/25/2022

 

vs. Q2 2022

 

 

07/01/2023

 

06/25/2022

 

vs. Q2 2022

 

 

 

Q2 2023

 

Q2 2022

 

 

 

Q2 2023

 

Q2 2022

 

 

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

%

 

10.5

%

 

 

 

 

13.2

%

 

11.1

%

 

 

Net Earnings

 

 

89,376

 

 

76,108

 

17.4

%

 

 

92,739

 

 

79,682

 

16.4

%

Diluted Earnings Per Share

 

$

4.21

 

$

3.53

 

19.3

%

 

$

4.37

 

$

3.70

 

18.1

%

Average Shares Outstanding

 

 

21,229

 

 

21,541

 

 

 

 

 

21,229

 

 

21,541

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date 2023

 

GAAP

 

Adjusted1

 

(000’s except per share amounts)

 

07/01/2023

 

06/25/2022

 

vs. FY 2022

 

 

07/01/2023

 

06/25/2022

 

vs. FY 2022

 

 

 

FY 2023

 

FY 2022

 

 

 

FY 2023

 

FY 2022

 

 

Net Sales

 

$

2,108,777

 

$

2,116,352

 

(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

%

 

10.1

%

 

 

 

 

12.3

%

 

10.7

%

 

 

Net Earnings

 

 

163,916

 

 

138,419

 

18.4

%

 

 

170,392

 

 

145,570

 

17.1

%

Diluted Earnings Per Share

 

$

7.67

 

$

6.43

 

19.3

%

 

$

7.97

 

$

6.77

 

17.7

%

Average Shares Outstanding

 

 

21,370

 

 

21,516

 

 

 

 

 

21,370

 

 

21,516

 

 

 

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.

 

 

 

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

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

July 1,

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.60

 

 

$

0.55

 

 

$

1.20

 

 

$

1.10

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

 

 

 

 

 

 

 

 

 

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

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