Valmont(US:VMI)2022-04-26 16:00Financial Performance - Consolidated net sales for the first quarter of 2022 were $980.8 million, a 26.6% increase from $774.9 million in the same period of 2021[92] - Gross profit increased to $249.2 million, representing a 21.8% increase compared to $204.6 million in the prior year, with gross profit as a percentage of sales slightly decreasing to 25.4%[92] - Operating income rose to $94.8 million, a 22.8% increase from $77.2 million in the first quarter of 2021, with an operating income margin of 9.7%[92] - The Infrastructure segment reported net sales of $677.6 million, a 24.0% increase from $546.4 million, with operating income increasing by 42.5% to $77.5 million[92] - The Agriculture segment achieved net sales of $303.2 million, a 32.7% increase from $228.4 million, although operating income decreased by 3.1% to $37.5 million[92] - Agriculture segment net sales increased to $306.6 million in Q1 2022, up 33.5% from $229.7 million in Q1 2021[112] - North America sales rose to $182.3 million, a 48.5% increase from $122.8 million in the previous year, while international sales increased by 16.3% to $124.3 million[112] - Operating income for the Agriculture segment was $37.5 million in Q1 2022, a decrease of 3.1% from $38.7 million in Q1 2021[112] - Net earnings attributable to Valmont Industries, Inc. reached $202,926, showcasing robust profitability[140] Cash Flow and Liquidity - Cash flows from operations decreased to $2.7 million in the first quarter of 2022, down from $33.2 million in the same period of 2021, primarily due to increased receivables[107] - The company reported net cash flows from operating activities of $2.7 million in Q1 2022, down from $33.2 million in Q1 2021[131] - Net cash flows from operations amounted to $35,488, demonstrating positive operational cash generation[139] - The liquidity position is supported by cash balances of $149.7 million, with $134.1 million held in non-U.S. subsidiaries[129] Debt and Financial Ratios - Total interest-bearing debt increased to $975.7 million as of March 26, 2022, compared to $965.4 million at December 25, 2021[133] - Interest-bearing debt totaled $975,671, with net indebtedness calculated at $875,971 after accounting for excess cash[143] - The company maintains a financial leverage ratio of 3.50:1 or less, with compliance confirmed as of March 26, 2022[126] - The leverage ratio stands at 1.85, well below the maximum allowable limit of 3.5, indicating a strong financial position[143] Capital Expenditures and Investments - Capital expenditures for Q1 2022 were $27.1 million, with expectations for total capital expenditures in the range of $110 million to $120 million for the fiscal year[132] - The company acquired PivoTrac and Prospera in 2021, enhancing its capabilities in agricultural technology and artificial intelligence[94] - The company has acquired approximately 6.5 million shares for about $878.0 million under its share repurchase program as of March 26, 2022[119] Backlog and Future Expectations - The backlog of unshipped orders was approximately $1.8 billion as of March 26, 2022, up from $1.6 billion at December 25, 2021, with expectations to fulfill approximately $1.6 billion within the next 12 months[99] Tax and Impairment - The effective tax rate for the first quarter of 2022 was 26.8%, an increase from 21.9% in the same quarter of 2021[105] - The company reported an impairment of long-lived assets amounting to $27,911, which may impact future earnings[140] Stability and Commitments - There were no material changes in financial obligations and commitments during the reporting period, indicating stability[144] - The company maintained its financial covenants, avoiding additional financing costs or early debt repayment requirements[142]