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Douglas Dynamics Reports Third Quarter 2024 Results
PLOWDouglas Dynamics(PLOW) GlobeNewswire News Room·2024-10-28 22:05

Core Insights - Douglas Dynamics, Inc. reported a record third quarter in its Solutions segment, with significant profitability improvements and a narrowed full-year outlook for 2024 [1][2]. Financial Performance - Net sales for Q3 2024 were 129.4million,downfrom129.4 million, down from 144.1 million in Q3 2023, primarily due to low snowfall affecting the Attachments segment [3][4]. - Gross profit margin increased to 23.9% in Q3 2024 from 22.3% in Q3 2023, attributed to higher price realization and the 2024 Cost Savings Program [3][4]. - Net income for Q3 2024 was 32.3million,comparedto32.3 million, compared to 5.8 million in the same period last year, while adjusted net income was 5.9million,slightlydownfrom5.9 million, slightly down from 6.0 million [4][29]. - Diluted EPS rose to 1.36inQ32024from1.36 in Q3 2024 from 0.24 in Q3 2023 [3][29]. Segment Performance - The Work Truck Attachments segment reported net sales of 60.2millioninQ32024,downfrom60.2 million in Q3 2024, down from 75.9 million in Q3 2023, impacted by low reorder volumes and below-average snowfall [5][6]. - Adjusted EBITDA for the Attachments segment decreased to 8.1million,withamarginof13.58.1 million, with a margin of 13.5% compared to 16.2% in the previous year [5][6]. - The Work Truck Solutions segment achieved net sales of 69.1 million, slightly up from 68.2millioninQ32023,withadjustedEBITDAincreasing4468.2 million in Q3 2023, with adjusted EBITDA increasing 44% to 7.2 million and a margin of 10.4% [7][8]. Cost Savings and Strategic Initiatives - The 2024 Cost Savings Program is expected to yield 11to11 to 12 million in sustainable annualized savings, with 9millionanticipatedin2024[1][3].−Aone−timegainofapproximately9 million anticipated in 2024 [1][3]. - A one-time gain of approximately 42.3 million was realized from a sale leaseback transaction of seven facilities valued at 64.2million,primarilyusedtoreducetermloandebt[3][4].DividendandLiquidity−Acashdividendof64.2 million, primarily used to reduce term loan debt [3][4]. Dividend and Liquidity - A cash dividend of 0.295 per share was paid on September 30, 2024, to stockholders of record [1][9]. - Total liquidity as of September 30, 2024, was 90.9million,consistingof90.9 million, consisting of 8.4 million in cash and 82.5millionavailableundertherevolvingcreditfacility[9][10].2024Outlook−Thecompanyhasadjustedits2024financialoutlook,nowexpectingnetsalesbetween82.5 million available under the revolving credit facility [9][10]. 2024 Outlook - The company has adjusted its 2024 financial outlook, now expecting net sales between 570 million and 600million,downfromthepreviousrangeof600 million, down from the previous range of 600 to 640million[10][11].−AdjustedEBITDAisnowprojectedtorangefrom640 million [10][11]. - Adjusted EBITDA is now projected to range from 70 million to 80million,andadjustedEPSisexpectedtobebetween80 million, and adjusted EPS is expected to be between 1.20 and $1.60 per share [10][11].