Valmont(VMI)

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Valmont(VMI) - 2023 Q1 - Earnings Call Transcript
2023-04-21 18:32
Valmont Industries, Inc. (NYSE:VMI) Q1 2023 Earnings Conference Call April 21, 2023 9:00 AM ET Company Participants Renee Campbell - SVP, IR and Treasurer Steve Kaniewski - President and CEO Avner Applbaum - EVP and CFO Conference Call Participants Chris Moore - CJS Securities Nathan Jones - Stifel Brian Drab - William Blair Ryan Connors - North Coast Research Brent Thielman - D.A. Davidson John Braatz - Kansas City Capital Brian Wright - ROTH MKM Operator Greetings and welcome to the Valmont Industries' Fi ...
Valmont(VMI) - 2022 Q4 - Annual Report
2023-02-28 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 10-K (Mark One) ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 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 1-31429 Valmont Industries, Inc. Delaware 47-0351813 (State or Other Jurisdiction of Incorporation or Organization) 150 ...
Valmont(VMI) - 2022 Q4 - Earnings Call Transcript
2023-02-23 20:10
Valmont Industries, Inc. (NYSE:VMI) Q4 2022 Earnings Conference Call February 23, 2023 9:00 AM ET Company Participants Renee Campbell - Senior Vice President, Investor Relations & Treasurer Steve Kaniewski - President & Chief Executive Officer Avner Applbaum - Executive Vice President & Chief Financial Officer Conference Call Participants Chris Moore - CJS Securities Brian Drab - William Blair Jon Braatz - Kansas City Capital Adam Farley - Stifel Operator Greetings and welcome to the Valmont Industries Inc ...
Valmont(VMI) - 2022 Q3 - Earnings Call Transcript
2022-10-30 11:05
Financial Data and Key Metrics Changes - Sales reached $1.1 billion, a 26% year-over-year increase, marking the eighth consecutive quarter of double-digit year-over-year sales growth [11][19] - Operating income grew 42% to $114.1 million, with operating margins increasing to 10.4% [19] - Diluted earnings per share increased by 36% to $3.49, driven by higher operating income [19] Business Line Data and Key Metrics Changes - Infrastructure sales amounted to $778.4 million, up 23% year-over-year, supported by investments in grid resiliency and renewable energy [11][19] - Agriculture sales grew 36% year-over-year to $327.3 million, driven by strong global demand for food production and favorable farmer sentiment [12][19] - Ag tech sales reached approximately $83 million year-to-date, a 15% increase over the previous year, with expectations to exceed $100 million for the full year [13][17] Market Data and Key Metrics Changes - Demand remains elevated across all end markets despite macroeconomic volatility, reflecting ongoing investments in global infrastructure and agriculture [9][11] - The company anticipates long-term tailwinds from government spending initiatives, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act [11][12] Company Strategy and Development Direction - The company is focused on operational excellence with an ESG emphasis, expanding market reach, and leveraging technology for productive disruption [13][25] - Strategic acquisitions, such as ConcealFab, are aimed at enhancing growth opportunities in high-demand markets [13][70] - The company is committed to disciplined capital allocation, balancing organic growth with potential acquisitions [21][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges growing economic uncertainty but believes demand for products is less sensitive to general economic factors [24] - The company expects 2023 year-over-year sales growth of 6% to 9% and EPS growth of 11% to 15%, assuming steady market demand and stabilized raw material costs [23][24] - Management remains confident in the company's ability to navigate external challenges and deliver value to customers and shareholders [17][25] Other Important Information - Year-to-date free cash flow reached $117 million, reflecting improved working capital management [20] - The company reduced total borrowing by approximately $60 million, strengthening its balance sheet [21] Q&A Session Summary Question: Visibility for 2023 and sub-segment impacts from interest rates - Management indicated that all end markets are in good shape and not significantly susceptible to interest rate increases, with strong drivers across all markets [27][28] Question: Sustainability of telecom sales growth - Management noted that telecom sales have historically been lumpy but expect smoother rollouts moving forward due to consistent carrier investments [30] Question: Impact of steel prices on pricing strategy - Management confirmed that while steel prices are moderating, they maintain pricing discipline and have not needed to reduce prices due to strong demand [34][35] Question: Timing and implications of the Inflation Reduction Act - Management stated that the infrastructure bill is beginning to influence demand, while benefits from the Inflation Reduction Act will materialize in 2023 [38] Question: Inventory corrections in the channel - Management reported low inventory levels in agriculture and minimal impact from inventory corrections in other segments [40][41] Question: Pricing strategy in agriculture - Management emphasized their intent to be a price leader and maintain value-based pricing despite uncertainties in the market [60][61] Question: Impact of Hurricane Ian on backlog - Management explained that Hurricane Ian would lead to a temporary reshuffling of backlog but reinforced long-term demand for grid hardening [66][67] Question: M&A activity and capital allocation - Management expressed confidence in their capital position and a strong pipeline for acquisitions, focusing on areas that drive growth and synergies [70] Question: Interest in utility-scale projects - Management clarified that they remain interested in utility-scale projects but will be selective based on profitability [73] Question: Prospects for large-scale irrigation projects in Africa and the Middle East - Management indicated a strong pipeline for large irrigation projects driven by food security and local production needs [75]
Valmont(VMI) - 2022 Q2 - Earnings Call Transcript
2022-07-21 19:40
Financial Data and Key Metrics Changes - The company reported a record quarter with sales growth of 27% year-over-year, marking the seventh consecutive quarter of double-digit sales growth [8][17] - Operating income for the second quarter was $122.9 million, representing a 35% increase year-over-year, with diluted earnings per share growing 21% to $3.70 [18][21] - The backlog reached $2 billion, up nearly 25% from year-end 2021, indicating strong demand [23] Business Line Data and Key Metrics Changes - Infrastructure sales grew 24% year-over-year, driven by higher volumes in Renewable Energy, Telecommunications, and favorable pricing [10] - Agriculture sales increased by 34% year-over-year, with double-digit volume growth in North America and international markets, particularly in Brazil and Western Europe [11] Market Data and Key Metrics Changes - The company noted robust demand trends in both Infrastructure and Agriculture markets, with no signs of abatement [8][12] - The U.S. Infrastructure Bill is expected to benefit the company starting in 2023, alongside strong demand for domestic solar panel production [10] Company Strategy and Development Direction - The company is focused on strategic pricing frameworks to capture value and has expanded manufacturing capabilities in key regions like Dubai and Brazil [7][10] - The acquisition of ConcealFab aligns with the strategy to invest in high-growth market sectors, particularly in 5G infrastructure [13][14] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the current demand environment, expecting it to remain positive despite economic volatility [12][22] - The company raised its full-year guidance, anticipating net sales to increase by 20% to 21% year-over-year, primarily due to pricing strategies [21][22] Other Important Information - The company is committed to sustainability initiatives, including the installation of a solar array at a new factory and the replacement of gasoline vehicles with electric ones [15][16] - The balance sheet remains strong, with total debt to adjusted EBITDA at 1.8x, within the desired range [20] Q&A Session Summary Question: Growth by segment breakdown - Management indicated double-digit volume growth in Agriculture and mid-single-digit growth in Infrastructure for the remainder of the year [26][27] Question: Strategic capacity expansion - The company is adding capacity in irrigation and telecommunications, particularly in Brazil and Dubai, to meet increased demand [28][29] Question: Gross margins amidst inflation - Management noted that gross margins expanded by 10 basis points, attributed to successful pricing strategies and operational efficiencies [31][32] Question: Impact of interest rates on project activity - Management does not foresee significant impacts from rising interest rates on project activity, particularly in the utility sector [36][37] Question: SG&A growth modeling - SG&A is expected to correlate with sales growth, with continued investment in R&D impacting future SG&A levels [51][52] Question: North American agriculture performance - Strong demand in North America is driven by various factors, including storm damage recovery and effective dealer performance programs [55][56]
Valmont(VMI) - 2022 Q1 - Earnings Call Transcript
2022-04-21 19:52
Call Start: 09:00 January 1, 0000 9:51 AM ET Valmont Industries Inc. (NYSE:VMI) Q1 2022 Earnings Conference Call April 21, 2022 09:00 ET CompanyParticipants Renee Campbell - Senior Vice President of Investor Relations & Treasurer Steve Kaniewski - President & Chief Executive Officer Aaron Schapper - Group President of Infrastructure Avner Applbaum - Executive Vice President & Chief Financial Officer Timothy Francis - Senior Vice President & Corporate Controller Conference Call Participants Chris Moore - CJS ...