OMAHA, Neb., Oct. 19, 2016 /PRNewswire/ -- Valmont
Industries, Inc. (NYSE: VMI), a leading
global provider of engineered products and services for
infrastructure development and mechanized irrigation equipment and
services for agriculture, today reported third quarter results.
- Revenues were $610.2 million,
down 3.5% year-over-year reflecting lower sales in the Utility
Support Structures, Coatings and Energy and Mining segments
- Operating income on a GAAP basis was $53.2 million, up from $37.0 million last year. Before restructuring
charges and impairments, operating income was $58.3 million, a slight decrease from last year's
$61.0 million
- Improved profitability in the Energy and Mining, and Utility
Support Structures segments was offset by lower profitability in
the Coatings and Engineered Support Structures segments on an
adjusted basis
- While steel prices declined during the quarter, largely erasing
second quarter increases, Valmont's third quarter average steel
costs were slightly higher than last year. Aside from LIFO
accounting effects, the increase did not have a significant impact
on operating results
- Diluted EPS were $1.24 compared
to $0.52 in 2015 (excluding
restructuring expenses and impairments, diluted EPS were
$1.48 and $1.39 in 2016 and 2015, respectively)
- The Company incurred approximately $5.1
million of pre-tax restructuring expense this quarter, of
which approximately $2.3 million was
related to the previously announced $4.8
million 2016 Australia restructuring program. The remaining
approximately $2.8 million expense
was related to 2015 restructuring efforts
- Year-to-date, savings recognized from the 2015 restructuring
approximated $17 million
- During the quarter, the Company appointed Stephen G. Kaniewski
as President and Chief Operating Officer, effective October 1
- The Company repurchased 139,000 shares for $18.0 million during the quarter; $139 million remains on the current
authorization
- The Company is slightly lowering its annual guidance primarily
to reflect recent weakness in the Coatings Segment. Adjusted
diluted EPS are now expected to range between $6.23 and $6.35, (GAAP EPS $5.88 to $6.00). In response, coatings cost
structure has been cut to better match current demand. The updated
guidance meets the long-term earnings targets presented at the
company's February, 2016 investor day of achieving 10% adjusted EPS
growth.
"The market environment continued to be challenging. Sales
declines were largely driven by lower international volumes in
Utility Support Structures and weaker Coatings demand in
North America," said Mogens C. Bay, Valmont's Chairman and Chief
Executive Officer. "Despite slightly lower overall sales, volatile
steel prices and operational challenges in the Coatings Segment, we
continue to benefit from the restructuring and operational actions
undertaken over the last 18 months, delivering operating income at
8.7% of sales, or 9.6% of sales before charges."
|
|
|
|
|
|
|
|
|
Third
|
|
Year-to-date
|
Summarized Financial Info.
|
13 Weeks Ended
|
|
39 Weeks Ended
|
|
24-Sep-16
|
|
26-Sep-15
|
|
24-Sep-16
|
|
26-Sep-15
|
Net sales
|
$
610,247
|
|
$
632,576
|
|
$
1,847,101
|
|
$
1,985,096
|
Operating income
|
53,240
|
|
37,012
|
|
187,411
|
|
148,695
|
Operating income as a % of net sales
GAAP
|
8.7%
|
|
5.9%
|
|
10.1%
|
|
7.5%
|
Operating income Adjusted*
|
58,315
|
|
61,013
|
|
192,476
|
|
187,738
|
Operating income as a % of net sales
Adjusted*
|
9.6%
|
|
9.6%
|
|
10.4%
|
|
9.5%
|
Net earnings - GAAP
|
28,173
|
|
12,066
|
|
103,168
|
|
70,678
|
Net earnings - Adjusted *
|
33,488
|
|
32,176
|
|
109,518
|
|
100,678
|
|
|
|
|
|
|
|
|
Diluted EPS - GAAP net earnings
|
$
1.24
|
|
$
0.52
|
|
$
4.54
|
|
$
3.00
|
Average Shares Outstanding -
Diluted
|
22,659
|
|
23,170
|
|
22,741
|
|
23,534
|
|
|
|
|
|
|
|
|
Diluted EPS - Adjusted net earnings
*
|
$
1.48
|
|
$
1.39
|
|
$
4.82
|
|
$
4.28
|
|
|
|
|
|
|
|
|
Average Shares Outstanding -
Diluted
|
22,659
|
|
23,170
|
|
22,741
|
|
23,534
|
|
|
|
|
|
|
|
|
* Please see Reg. G
reconciliation table on the last page
|
|
|
|
Third Quarter Segment Review
Infrastructure-related
Engineered Support Structures (33% of Sales)
Poles, towers and components for the global lighting, traffic and
wireless communication markets, and highway safety
products.
Sales of $203.2 million were 2%
higher than last year due to increased sales of wireless
communication structures in the Asia
Pacific region, particularly in Australia, which is undergoing an upgrade and
expansion of their wireless network.
In North America, sales of
lighting and traffic products were higher, mostly driven by
increased non-residential construction. Sales of wireless
communication products were lower.
In Europe, sales of lighting
and traffic structures were flat with last year, reflecting
continued weak markets and limited new infrastructure
investments.
Operating income was $19.6 million
or 9.6%, of sales ($20.2 million and
9.9% adjusted for restructuring) compared to $20.1 million, or 10.1% of sales in 2015
($21.7 million and 10.9% adjusted for
restructuring).
Utility Support Structures (25% of Sales)
Steel and concrete structures for the global electric utility
industry.
Sales of $150.7 million decreased
9% year-over-year, largely a result of lower sales in international
markets, which are typically project-based. North American sales
were comparable with last year. Higher volumes largely offset lower
pricing associated with lower average steel costs. The North
American market remains robust. In general, increased volumes and
extending lead times point to tightening industry capacity.
Operating income increased to $16.0
million or 10.6% of sales ($16.6
million and 11.0% adjusted for restructuring) compared to
$14.5 million or 8.8% of sales in
2015 ($15.7 million and 9.5% adjusted
for restructuring), benefitting from continuing operational
improvements in North America
somewhat offset by the effect of lower international volumes.
Coatings Segment (11% of Sales)
Global galvanizing, painting and anodizing services.
Sales of $70.1 million were 8%
lower than last year, reflecting lower North American demand from
both external and internal customers and a significant falloff in
demand from the solar energy industry. The change in end market
demand was sudden, as earlier in 2016 and last year, demand from
solar energy customers was strong in anticipation of the expiration
of certain energy tax credits, which did not materialize.
Operating income was $11.7
million, or 16.7% of sales, ($12.3
million and 17.5% adjusted for restructuring) compared to
$3.1 million, or 4.1% of sales in
2015 ($14.2 million and 18.6%
adjusted for restructuring and impairments).
Aside from volume and factory deleverage from the impact of
lower volumes, there was unexpected downtime due to kettle and
crane repairs at certain galvanizing facilities. These operational
issues are unusual and have been corrected to ensure efficient
operational performance going forward. Our network of plants
allowed us to serve our customers uninterrupted, but with temporary
inefficiencies and higher costs. Partially offsetting the volume
and operational matters was a $2.6
million reversal of a contingent purchase price accrual
associated with an acquisition.
Energy and Mining Segment (13% of Sales)
Offshore structures, engineered access systems and grinding
media.
Segment sales of $81.6 million
were 4% lower than last year due to lower grinding media
revenues.
Operating income increased to $3.9
million or 4.8% of sales ($5.6
million and 6.8% adjusted for restructuring) compared to a
loss of $4.3 million in 2015,
(operating income of $3.6 million and
4.3% adjusted for restructuring and impairments). The increase was
mostly driven by improved operational performance and the benefit
of last year's restructuring efforts in the Asia Pacific region to reduce cost while
maintaining capability to serve customers.
Agriculture-related
Irrigation Segment (21% of
Sales)
Agricultural irrigation equipment, parts, services
and tubular products.
Segment sales of $127.8 million
were comparable with last year. In North
America, the third quarter is the seasonal low period.
Irrigation equipment sales increased, led by stronger international
markets in Brazil and Sub-Saharan
Africa. Tubing sales were lower, driven by weak demand from
agricultural OEM's and service center customers.
Operating income was flat at $14.2
million. Operating income as a percent of sales of 11.1% was
also similar to last year.
Fourth Quarter Outlook:
"We expect positive fourth quarter comparisons," Mr. Bay said.
"On a positive note, Utility demand is firming in North America and we are shipping an
international project during the quarter. Growth in the Engineered
Support Structures Segment, should be driven by continued telecom
strength in the Asia Pacific
region. The Energy and Mining Segment is making good progress, and
we expect favorable comparisons with last year. However, Coatings
Segment sales are expected near current levels, which are weaker
than last year's fourth quarter. The operational issues we
encountered in Coatings have been fixed and SG&A and labor
costs were adjusted. Our Irrigation Segment outlook remains
cautious. We expect lower North American demand than last year due
to crop price levels and related pressure on net farm income.
International irrigation markets are expected to be solid. Our
guidance for adjusted earnings per share for the year, based on the
first three quarters' adjusted EPS of $4.82, is in the range of $6.23 to $6.35, (GAAP EPS $5.88 to $6.00)."
An audio discussion of Valmont's third quarter results
will be available live by Telephone by dialing 1-877-493-2981 and
entering Conference ID#:15297121 or via Webcast at 8:00 a.m. CDT October 20,
2016 at
https://engage.vevent.com/rt/valmontindustries_ao~15297121.
A replay is available through the above link or by telephone
(855) 859-2056 or +44 (0)1452550000, Conference ID#:15297121
beginning October 20, 2016 at
10:00 a.m. CDT through 12:00 p.m. CDT on October
28, 2016. The Company's slide presentation for the
call will be simultaneously available on the investor
relations tab at www.valmont.com under Investor Relations.
Valmont is a global leader, designing and manufacturing highly
engineered products that support global infrastructure development
and agricultural productivity. Its products for infrastructure
serve highway, transportation, wireless communication, electric
transmission, and industrial construction and energy markets. Its
mechanized irrigation equipment for large scale agriculture
improves farm productivity while conserving fresh water resources.
In addition, Valmont provides coatings services that protect
against corrosion and improve the service lives of steel and other
metal products.
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 material, availability and market acceptance of new
products, product pricing, domestic and international competitive
environments, 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)
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Year-to-Date
|
|
|
13 Weeks
Ended
|
|
39 Weeks
Ended
|
|
|
24-Sep-16
|
|
26-Sep-15
|
|
24-Sep-16
|
|
26-Sep-15
|
Net sales
|
|
$
610,247
|
|
$
632,575
|
|
$
1,847,101
|
|
$
1,985,096
|
Cost of
sales
|
|
455,224
|
|
475,824
|
|
1,355,992
|
|
1,493,343
|
Gross profit
|
|
155,023
|
|
156,751
|
|
491,109
|
|
491,753
|
Selling, general and
administrative expenses
|
|
101,783
|
|
104,539
|
|
303,698
|
|
327,858
|
Impairment of
goodwill and intangible assets
|
|
-
|
|
15,200
|
|
-
|
|
15,200
|
Operating income
|
|
53,240
|
|
37,012
|
|
187,411
|
|
148,695
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
Interest expense
|
|
(11,100)
|
|
(11,120)
|
|
(33,276)
|
|
(33,480)
|
Interest income
|
|
771
|
|
905
|
|
2,289
|
|
2,395
|
Investment gain
(loss)
|
|
1,455
|
|
(2,253)
|
|
591
|
|
(983)
|
Other
|
|
(577)
|
|
1,023
|
|
(139)
|
|
741
|
|
|
(9,451)
|
|
(11,445)
|
|
(30,535)
|
|
(31,327)
|
Earnings before income taxes and equity in earnings of nonconsolidated
subsidiaries
|
|
|
|
|
|
|
|
|
|
43,789
|
|
25,567
|
|
156,876
|
|
117,368
|
Income tax
expense
|
|
14,268
|
|
12,018
|
|
49,742
|
|
42,873
|
Net earnings
|
|
29,521
|
|
13,549
|
|
107,134
|
|
74,495
|
Less: Earnings
attributable to non-controlling interests
|
|
(1,348)
|
|
(1,483)
|
|
(3,966)
|
|
(3,817)
|
Net earnings attributable to Valmont Industries, Inc.
|
|
$
28,173
|
|
$
12,066
|
|
$
103,168
|
|
$
70,678
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Basic
|
|
22,505
|
|
23,057
|
|
22,602
|
|
23,420
|
Earnings per share -
Basic
|
|
$
1.25
|
|
$
0.52
|
|
$
4.56
|
|
$
3.02
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Diluted
|
|
22,659
|
|
23,170
|
|
22,741
|
|
23,534
|
Earnings per share -
Diluted
|
|
$
1.24
|
|
$
0.52
|
|
$
4.54
|
|
$
3.00
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
|
$
0.375
|
|
$
0.375
|
|
$
1.125
|
|
$
1.125
|
|
|
|
|
|
|
|
|
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
SUMMARY OPERATING
RESULTS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
Third
Quarter
|
|
Year-to-Date
|
|
|
13 Weeks
Ended
|
|
39 Weeks
Ended
|
|
|
24-Sep-16
|
|
26-Sep-15
|
|
24-Sep-16
|
|
26-Sep-15
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
|
$
203,184
|
|
$
199,410
|
|
$
584,071
|
|
$
578,070
|
Utility Support
Structures
|
|
150,667
|
|
164,684
|
|
446,432
|
|
503,954
|
Energy and Mining
|
|
81,552
|
|
84,732
|
|
234,693
|
|
259,095
|
Coatings
|
|
70,082
|
|
76,201
|
|
213,961
|
|
226,654
|
Infrastructure products
|
|
505,485
|
|
525,027
|
|
1,479,157
|
|
1,567,773
|
|
|
|
|
|
|
|
|
|
Irrigation
|
|
127,809
|
|
126,775
|
|
438,575
|
|
474,655
|
Other
|
|
-
|
|
1,691
|
|
-
|
|
6,202
|
Less: Intersegment
sales
|
|
(23,047)
|
|
(20,918)
|
|
(70,631)
|
|
(63,534)
|
Total
|
|
$
610,247
|
|
$
632,575
|
|
$
1,847,101
|
|
$
1,985,096
|
|
|
|
|
|
|
|
|
|
Operating
Income
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
|
$
19,577
|
|
$
20,073
|
|
$
54,753
|
|
$
45,742
|
Utility Support
Structures
|
|
16,030
|
|
14,505
|
|
48,326
|
|
40,261
|
Energy &
Mining
|
|
3,941
|
|
(4,302)
|
|
9,184
|
|
2,762
|
Coatings
|
|
11,696
|
|
3,145
|
|
37,132
|
|
22,006
|
Infrastructure products
|
|
51,244
|
|
33,421
|
|
149,395
|
|
110,771
|
|
|
|
|
|
|
|
|
|
Irrigation
|
|
14,154
|
|
14,194
|
|
70,761
|
|
76,233
|
Other
|
|
-
|
|
(1,386)
|
|
-
|
|
(3,765)
|
Corporate
|
|
(12,158)
|
|
(9,217)
|
|
(32,745)
|
|
(34,544)
|
Total
|
|
$
53,240
|
|
$
37,012
|
|
$
187,411
|
|
$
148,695
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valmont has
aggregated its business segments into five reportable segments as
follows.
|
|
|
|
|
|
|
|
|
|
|
Engineered
Support Structures:This segment consists of the manufacture
of engineered metal structures and components for global lighting
and traffic, wireless communication, and roadway
safety.
|
|
|
|
|
|
|
|
|
|
|
Utility
Support Structures:This segment consists of the manufacture
of engineered steel and concrete structures for the global utility
industry.
|
|
|
|
|
|
|
|
|
|
|
Energy and
Mining: This segment includes the manufacture of access
systems applications, forged steel grinding media, and offshore oil
and gas and wind energy structures;
|
|
|
|
|
|
|
|
|
|
|
Coatings:This segment consists of
global galvanizing, painting and anodizing services.
|
|
|
|
|
|
|
|
|
|
|
Irrigation:This segment consists of
the manufacture of agricultural irrigation equipment and related
parts and services worldwide.
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
24-Sep-16
|
|
|
|
26-Sep-15
|
ASSETS
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
$
349,375
|
|
|
|
$
312,851
|
Accounts receivable,
net
|
|
455,692
|
|
|
|
501,403
|
Inventories
|
|
379,625
|
|
|
|
368,290
|
Prepaid expenses
|
|
69,231
|
|
|
|
52,208
|
Refundable and deferred
income taxes
|
|
20,342
|
|
|
|
44,736
|
Total current assets
|
|
1,274,265
|
|
|
|
1,279,488
|
Property, plant and
equipment, net
|
|
525,640
|
|
|
|
543,235
|
Goodwill and other
assets
|
|
584,138
|
|
|
|
666,978
|
|
|
$
2,384,043
|
|
|
|
$
2,489,701
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
Current installments of
long-term debt
|
|
$
895
|
|
|
|
$
1,099
|
Notes payable to
banks
|
|
853
|
|
|
|
1,496
|
Accounts payable
|
|
170,888
|
|
|
|
186,581
|
Accrued expenses
|
|
178,834
|
|
|
|
175,028
|
Dividend payable
|
|
8,455
|
|
|
|
8,649
|
Total current liabilities
|
|
359,925
|
|
|
|
372,853
|
Long-term debt,
excluding current installments
|
|
755,584
|
|
|
|
764,823
|
Other long-term
liabilities
|
|
266,233
|
|
|
|
286,248
|
Shareholders'
equity
|
|
1,002,301
|
|
|
|
1,065,777
|
|
|
$
2,384,043
|
|
|
|
$
2,489,701
|
CONDENSED
CONSOLIDATED STATEMENT OF CASH FLOWS
|
(unaudited) and
dollars in thousands
|
|
|
|
|
|
|
|
|
|
Year to
Date
|
|
|
|
Year to
Date
|
|
|
24-Sep-16
|
|
|
|
26-Sep-15
|
Cash flows from
operating activities
|
|
|
|
|
|
|
Net
Earnings
|
|
$
107,134
|
|
|
|
$
74,495
|
Depreciation and Amortization
|
|
61,242
|
|
|
|
70,859
|
Impairment of assets - restructuring activities
|
|
618
|
|
|
|
12,659
|
Impairment of goodwill and trade names
|
|
-
|
|
|
|
15,200
|
Change
in working capital
|
|
(31,596)
|
|
|
|
8,637
|
Other
|
|
(10,144)
|
|
|
|
972
|
Net cash
flows from operating activities
|
|
127,254
|
|
|
|
182,822
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
Purchase
of property, plant, and equipment
|
|
(42,233)
|
|
|
|
(34,447)
|
Acquisitions, net of cash acquired
|
|
-
|
|
|
|
-
|
Other
|
|
1,114
|
|
|
|
9,236
|
Net cash
flows from investing activities
|
|
(41,119)
|
|
|
|
(25,211)
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
Proceeds
from long-term borrowings
|
|
-
|
|
|
|
37,000
|
Principal payments on long-term borrowings
|
|
(1,563)
|
|
|
|
(37,878)
|
Purchase
of treasury shares
|
|
(46,581)
|
|
|
|
(148,220)
|
Dividends paid
|
|
(25,604)
|
|
|
|
(26,708)
|
Other
|
|
(8,608)
|
|
|
|
(14,420)
|
Net cash
flows from financing activities
|
|
(82,356)
|
|
|
|
(190,226)
|
Effect of exchange
rates on cash and cash equivalents
|
|
(3,478)
|
|
|
|
(26,113)
|
Net change in cash
and cash equivalents
|
|
301
|
|
|
|
(58,728)
|
Cash and cash
equivalents - beginning of year
|
|
349,074
|
|
|
|
371,579
|
Cash and cash
equivalents - end of period
|
|
$
349,375
|
|
|
|
$
312,851
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
SUMMARY OF EFFECT
OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED
RESULTS
|
REGULATION G
RECONCILIATION
|
(Dollars in
thousands, except per share amounts)
|
(unaudited)
|
The non-GAAP
tables below disclose the impact on (a) diluted earnings per share
of (1) restructuring costs, (2) non-recurring deferred income tax
expense, (3) asset impairment charges in 2015, and (4) the non-cash
after-tax loss or gain associated with adjusting the fair value of
Delta EMD Pty. Ltd (Delta EMD) shares owned to its quoted market
price at September 24, 2016, and September 26, 2015, (b) segment
operating income from restructuring costs and asset impairment
charges in 2015. Amounts may be impacted by rounding. We believe it
is useful when considering company performance for the non-GAAP
adjusted net earnings and operating income to be taken into
consideration by management and investors with the related reported
GAAP measures.
|
|
|
|
|
Third Quarter
Ended Sept. 24, 2016
|
|
Diluted earnings
per share
|
|
Year-to-Date Sept.
24, 2016
|
|
Diluted earnings
per share
|
Net earnings
attributable to Valmont Industries, Inc. - as reported
|
|
|
$
28,173
|
|
$
1.24
|
|
$
103,168
|
|
$
4.54
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses - after tax
|
|
|
3,520
|
|
0.16
|
|
3,520
|
|
0.15
|
|
|
|
|
|
|
|
|
|
|
Deferred tax expense
- Change in UK rate
|
|
|
1,860
|
|
0.08
|
|
1,860
|
|
0.08
|
|
|
|
|
|
|
|
|
|
|
Fair market value
adjustment, Delta EMD - after-tax
|
|
|
(65)
|
|
-
|
|
970
|
|
0.04
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Valmont Industries, Inc. - Adjusted
|
|
|
$
33,488
|
|
$
1.48
|
|
$
109,518
|
|
$
4.82
|
Average shares
outstanding (000's) - Diluted
|
|
|
|
|
22,659
|
|
|
|
22,741
|
|
|
|
|
|
|
|
|
|
|
* With respect to
our annual 2016 diluted EPS guidance, we are estimating GAAP EPS of
$5.88 to $6.00. This assumes $1.7 million (after-tax) of
estimated fourth quarter restructuring expense. When this
restructuring expense and the same year-to-date third quarter 2016
adjustments (detailed above) are added back, that results in an
adjusted diluted EPS range of $6.23 to $6.35 for
2016.*
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Third Quarter
Ended Sept. 26, 2015
|
|
Diluted earnings
per share
|
|
Year-to-Date Sept.
26, 2015
|
|
Diluted earnings
per share
|
Net earnings
attributable to Valmont Industries, Inc. - as reported
|
|
|
$
12,066
|
|
$
0.52
|
|
$
70,678
|
|
$
3.00
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses - after tax
|
|
|
6,310
|
|
0.27
|
|
16,634
|
|
0.71
|
|
|
|
|
|
|
|
|
|
|
Impairment of
goodwill and trade names - after tax
|
|
|
13,370
|
|
0.58
|
|
13,370
|
|
0.57
|
|
|
|
|
|
|
|
|
|
|
Fair market value
adjustment, Delta EMD - after-tax
|
|
|
430
|
|
0.02
|
|
(4)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Valmont Industries, Inc. - Adjusted
|
|
|
$
32,176
|
|
$
1.39
|
|
$
100,678
|
|
$
4.28
|
Average shares
outstanding (000's) - Diluted
|
|
|
|
|
23,170
|
|
|
|
23,534
|
|
|
|
|
|
|
|
|
|
|
|
For the Third
Quarter Ended Sept. 24, 2016
|
Segment Operating
Income Reconciliation
|
Operating Income-
As Reported
|
|
Restructuring
expenses - before tax
|
|
Adjusted Operating
Income
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
$
19,577
|
|
$
587
|
|
$
20,164
|
|
$
203,184
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
9.6%
|
|
|
|
9.9%
|
|
|
|
|
Utility Support
Structures
|
16,030
|
|
528
|
|
16,558
|
|
150,667
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
10.6%
|
|
|
|
11.0%
|
|
|
|
|
Energy &
Mining
|
3,941
|
|
1,610
|
|
5,551
|
|
81,552
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
4.8%
|
|
|
|
6.8%
|
|
|
|
|
Coatings
|
11,696
|
|
545
|
|
12,241
|
|
70,082
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
16.7%
|
|
|
|
17.5%
|
|
|
|
|
Irrigation
|
14,154
|
|
-
|
|
14,154
|
|
127,809
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
11.1%
|
|
|
|
11.1%
|
|
|
|
|
Corporate/Other
|
(12,158)
|
|
1,795
|
|
(10,363)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Results
|
$
53,240
|
|
$
5,065
|
|
$
58,305
|
|
$
610,247
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
8.7%
|
|
|
|
9.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Third
Quarter Ended Sept. 26, 2015
|
Segment Operating
Income Reconciliation
|
Operating Income-
As Reported
|
|
Restructuring
expenses - before tax
|
|
Impairment of
goodwill and TM - before tax
|
|
Adjusted Operating
Income
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
$
20,073
|
|
$
1,634
|
|
$
-
|
|
$
21,707
|
|
$
199,410
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
10.1%
|
|
|
|
|
|
10.9%
|
|
|
Utility Support
Structures
|
14,505
|
|
1,159
|
|
-
|
|
15,664
|
|
164,684
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
8.8%
|
|
|
|
|
|
9.5%
|
|
|
Energy &
Mining
|
(4,302)
|
|
2,934
|
|
5,000
|
|
3,632
|
|
84,732
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
-5.1%
|
|
|
|
|
|
4.3%
|
|
|
Coatings
|
3,145
|
|
$
806
|
|
10,200
|
|
14,151
|
|
76,201
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
4.1%
|
|
|
|
|
|
18.6%
|
|
|
Irrigation
|
14,194
|
|
52
|
|
-
|
|
14,246
|
|
126,775
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
11.2%
|
|
|
|
|
|
11.2%
|
|
|
Corporate/Other
|
(10,603)
|
|
2,215
|
|
-
|
|
(8,388)
|
|
1,691
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Results
|
$
37,012
|
|
$
8,800
|
|
$
15,200
|
|
$
61,013
|
|
$
632,575
|
|
|
|
|
|
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
5.9%
|
|
|
|
|
|
9.6%
|
|
|
|
|
|
|
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/valmont-reports-third-quarter-2016-earnings-300347980.html
SOURCE Valmont Industries, Inc.