OMAHA, Neb., Feb. 21, 2017 /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 fourth quarter and full
year 2016 results.
|
Fourth
Quarter
|
|
Year-to-date
|
Summarized
Financial Information
|
14/13 Weeks
Ended
|
|
53/52 Weeks
Ended
|
|
31-Dec-16
|
|
26-Dec-15
|
|
31-Dec-16
|
|
26-Dec-15
|
Net sales
|
$ 674,575
|
|
$ 633,828
|
|
$
2,521,676
|
|
$
2,618,924
|
Operating
income
|
56,093
|
|
(17,000)
|
|
243,504
|
|
131,695
|
Operating
income as a % of net sales GAAP
|
8.3%
|
|
-2.7%
|
|
9.7%
|
|
5.0%
|
Operating income
Adjusted1
|
63,434
|
|
49,789
|
|
255,929
|
|
237,527
|
Operating
income as a % of net sales Adjusted1
|
9.4%
|
|
7.9%
|
|
10.1%
|
|
9.1%
|
Net earnings -
GAAP
|
70,064
|
|
(30,561)
|
|
173,232
|
|
40,117
|
Net earnings -
Adjusted1
|
36,343
|
|
31,104
|
|
145,767
|
|
131,798
|
|
|
|
|
|
|
|
|
Diluted EPS - GAAP
net earnings
|
$
3.10
|
|
$
(1.34)
|
|
$
7.63
|
|
$
1.71
|
Average Shares
Outstanding - Diluted
|
22,611
|
|
22,892
|
|
22,709
|
|
23,405
|
|
|
|
|
|
|
|
|
Diluted EPS -
Adjusted net earnings1
|
$
1.61
|
|
$
1.35
|
|
$
6.42
|
|
$
5.63
|
|
|
|
|
|
|
|
|
Average Shares
Outstanding - Diluted
|
22,611
|
|
23,018
|
|
22,709
|
|
23,405
|
Fourth Quarter Highlights:
- Revenues increased 6% due to improved volumes in the Engineered
Support Structures, Utility Support Structures and Energy and
Mining Segments
- GAAP operating income increased $73.1
million and adjusted operating income1 increased
27%, or $13.6 million; all segments
realized improved profitability except Coatings
- GAAP diluted earnings per share (EPS) were $3.10 compared to a loss of $1.34 in 2015 and adjusted diluted
EPS1 were $1.61 and
$1.35 in 2016 and 2015,
respectively
- Q4 included two non-cash, non-recurring transactions with
positive effect; the removal of a contingent liability and an
increase in deferred tax assets related to a legal entity
reorganization
Total Year Highlights:
- Full-year revenues declined 4% mostly due to the revenue impact
of lower cost steel in the Utility Support Structures Segment and
foreign exchange translation
- GAAP operating income increased $111.8
million and adjusted operating income1 increased
8%, or $18.4 million
- GAAP diluted EPS were $7.63,
compared to $1.71 last year and
adjusted diluted EPS1 were $6.42, compared to last year's $5.63, up 14%
- The Company completed its announced restructuring plans and
incurred $12.4 million of pre-tax
restructuring expense in 2016; total savings realized from
restructuring actions approximate $22
million
- The Company repurchased 441,000 shares for $53.8 million; $132
million remains on the current authorization
"We are pleased with our revenue growth in the fourth quarter,"
said Mogens C. Bay, Valmont's
Chairman and Chief Executive Officer. "Utility Support Structures
Segment sales benefited from a stronger North American market. The
Engineered Support Structures and Energy and Mining Segments had
double-digit revenue gains. Coatings Segment sales equaled last
year, as internal utility volumes offset lower external demand.
Irrigation Segment sales were equivalent to last year, with
modestly lower North American and improved international sales.
"For the fourth quarter, GAAP operating income was 8.3% of
sales, and 9.4% on an adjusted basis1. For the
year, GAAP operating income was 9.7% of sales, and 10.1% on an
adjusted basis1."
Fourth Quarter Segment Review
Infrastructure-related
Engineered Support Structures (32% of Sales)
Poles, towers and components for the global lighting, traffic
and wireless communication markets, and highway safety
products.
Sales of $216.5 million were 12%
higher than last year as a result of improved wireless
communication product sales in North
America and the Asia
Pacific region. In North
America, sales of lighting and traffic products were
comparable with last year.
In Europe, sales of lighting
and traffic structures were similar to last year as general
economic conditions are limiting growth in infrastructure
investment.
Operating income was $16.6 million
or 7.7% of sales ($19.2 million and
8.9% adjusted1) compared to $13.9
million, or 7.2% of sales in 2015 ($18.0 million and 9.3% adjusted1).
Higher steel costs during the quarter modestly pressured margins in
the segment.
Utility Support Structures (27% of Sales)
Steel and concrete structures for the global electric utility
industry.
Sales of $185.1 million increased
8.5% year-over-year driven by higher volumes and pricing that rose
in-line with higher average steel costs earlier in the year. The
ongoing needs to improve grid reliability and interconnect regional
transmission grids are supporting market growth.
Operating income increased to $20.8
million or 11.2% of sales, compared to a loss of
$2.4 million in 2015 ($16.2 million and 9.5% adjusted1),
benefitting from higher volume, operational leverage, improved
pricing and productivity improvements.
Coatings Segment (11% of Sales)
Global galvanizing, painting and anodizing services.
Sales of $75.5 million were equal
to last year. Higher sales in the Asia-Pacific region offset lower North
American sales, where sales to external customers were lower than
last year, largely due to weaker demand in the alternative energy
markets. Sales to other Valmont segments helped to partly offset
lower external volumes.
Operating income was $9.5 million,
or 12.5% of sales, ($9.8 million and
13.0% adjusted1) compared to $5.4
million, or 7.1% of sales in 2015 ($12.9 million and 17.0% adjusted1). In
North America, in addition to
lower volumes, the sales mix was unfavorable with greater internal
sales. Rising zinc costs pressured margins as price recovery lagged
somewhat. Included in Q4 results were startup costs associated with
a new facility in Texas.
Energy and Mining Segment (13% of Sales)
Offshore structures, engineered access systems and grinding
media.
Segment sales of $87.9 million
were 12% higher than last year with gains across the major product
lines. Offshore wind structures and component sales helped offset
continued soft demand for oil and gas exploration structures.
Access systems sales increased led by improved sales into
architectural and construction markets in Australia. Grinding media demand increased
partly due to customer purchase patterns in light of rising steel
costs.
Operating income increased to $2.7
million or 3.0% of sales ($6.2
million and 7.1% adjusted1) compared to a loss of
$21.5 million in 2015, (operating
income of $0.5 million and 0.6%
adjusted1). The increase was driven by improved
operating performance, in part due to restructuring actions, as
well as higher sales.
Agriculture-related
Irrigation Segment (20% of Sales)
Agricultural irrigation equipment, parts, services and tubular
products.
Global sales of $136.6 million
were similar to last year. In North
America, sales declined modestly. International sales rose,
led by a stronger Latin American market. Tubing sales were similar
to last year.
Operating income was higher at $17.1
million, or 12.5% of sales ($17.5
million and 12.8% adjusted1) compared to
$8.3 million, or 6.0% of sales in
2015 ($16.2 million and 11.8%
adjusted1).The improvement in operating income was
largely due to the contribution of stronger international results
and lower SG&A.
2017 Outlook:
For 2017, the company is issuing annual guidance for diluted EPS
to increase approximately 10% from adjusted EPS1 of
$6.42.
Assumptions:
- Revenue growth – mid single digit with each segment expecting
positive comparisons
- Raw material costs – up early in year, moderate later
- Foreign exchange translation effects minor
- Tax rate of 31%
"We expect to meet all of our financial goals as outlined at our
February 2016 investor day," Mr. Bay
said. "For 2017, revenue should grow around 5% without
acquisitions. While EPS is expected to decrease on a GAAP basis
from $7.63, we expect 10% growth over
the $6.42 adjusted result. We also
expect to meet or exceed our 10% return on invested capital and
more than one-time free cash flow conversion targets."
An audio discussion of Valmont's fourth quarter results
will be available live by Telephone by dialing 1-877-493-2981 and
entering Conference ID#:52411634 or via Webcast at 8:00 a.m. CST February 22,
2017 at
https://engage.vevent.com/rt/valmontindustries_ao~52411634.
A replay is available through the above link or by telephone
(855) 859-2056 or (404) 537-3406, Conference ID#:52411634 beginning
February 22, 2017 at 10:00 a.m. CST through 12:00 p.m. CST on March 2,
2017. 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.
1) Please see Reg G reconciliation of GAAP operating income, net
earnings and EPS to Adjusted figures at end of document.
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED STATEMENTS OF EARNINGS
|
(Dollars in
thousands, except per share amounts)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year-to-Date
|
|
|
|
14/13 Weeks
Ended
|
|
53/52 Weeks
Ended
|
|
|
|
31-Dec-16
|
|
26-Dec-15
|
|
31-Dec-16
|
|
26-Dec-15
|
Net sales
|
|
|
$
674,575
|
|
$
633,828
|
|
$
2,521,676
|
|
$
2,618,924
|
Cost of
sales
|
|
|
509,441
|
|
504,548
|
|
1,865,433
|
|
1,997,891
|
Gross
profit
|
|
|
165,134
|
|
129,280
|
|
656,243
|
|
621,033
|
Selling, general and
administrative expenses
|
|
|
109,041
|
|
119,510
|
|
412,739
|
|
447,368
|
Impairment of
goodwill and intangible assets
|
|
|
-
|
|
26,770
|
|
-
|
|
41,970
|
Operating income
(loss)
|
|
|
56,093
|
|
(17,000)
|
|
243,504
|
|
131,695
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(11,133)
|
|
(11,141)
|
|
(44,409)
|
|
(44,621)
|
Interest income
|
|
|
816
|
|
901
|
|
3,105
|
|
3,296
|
Other
|
|
|
17,802
|
|
2,879
|
|
18,254
|
|
2,637
|
|
|
|
7,485
|
|
(7,361)
|
|
(23,050)
|
|
(38,688)
|
Earnings (loss) before
income taxes and equity in
earnings of nonconsolidated subsidiaries
|
|
|
63,578
|
|
(24,361)
|
|
220,454
|
|
93,007
|
Income tax
expense
|
|
|
(7,679)
|
|
4,554
|
|
42,063
|
|
47,427
|
Earnings (loss) before
equity in earnings of nonconsolidated subsidiaries
|
|
|
71,257
|
|
(28,915)
|
|
178,391
|
|
45,580
|
Equity in earnings of
nonconsolidated subsidiaries
|
|
-
|
|
(247)
|
|
-
|
|
(247)
|
Net earnings
(loss)
|
|
|
71,257
|
|
(29,162)
|
|
178,391
|
|
45,333
|
Less: Earnings
attributable to non-controlling interests
|
|
(1,193)
|
|
(1,399)
|
|
(5,159)
|
|
(5,216)
|
Net earnings (loss)
attributable to Valmont Industries, Inc.
|
$
70,064
|
|
$
(30,561)
|
|
$
173,232
|
|
$
40,117
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Basic
|
|
|
22,439
|
|
22,892
|
|
22,562
|
|
23,288
|
Earnings (loss) per
share - Basic
|
|
|
$
3.12
|
|
$
(1.34)
|
|
$
7.68
|
|
$
1.72
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Diluted
|
|
22,611
|
|
22,892
|
|
22,709
|
|
23,405
|
Earnings (loss) per
share - Diluted
|
|
|
$
3.10
|
|
$
(1.34)
|
|
$
7.63
|
|
$
1.71
|
|
|
|
|
|
|
|
|
|
|
Cash dividends per
share
|
|
|
$
0.375
|
|
$
0.375
|
|
$
1.500
|
|
$
1.500
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
SUMMARY OPERATING
RESULTS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth
Quarter
|
|
Year-to-Date
|
|
|
|
14/13 Weeks
Ended
|
|
53/52 Weeks
Ended
|
|
|
|
31-Dec-16
|
|
26-Dec-15
|
|
31-Dec-16
|
|
26-Dec-15
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
|
|
$
216,454
|
|
$
193,383
|
|
$
800,525
|
|
$
771,453
|
Energy and Mining
|
|
|
87,944
|
|
78,764
|
|
322,637
|
|
337,859
|
Utility Support
Structures
|
|
|
185,119
|
|
170,623
|
|
631,551
|
|
674,577
|
Coatings
|
|
|
75,520
|
|
75,731
|
|
289,481
|
|
302,385
|
Infrastructure products
|
|
|
565,037
|
|
518,501
|
|
2,044,194
|
|
2,086,274
|
|
|
|
|
|
|
|
|
|
|
Irrigation
|
|
|
136,628
|
|
137,546
|
|
575,204
|
|
612,201
|
Other
|
|
|
-
|
|
1,046
|
|
-
|
|
7,247
|
Less: Intersegment
sales
|
|
|
(27,091)
|
|
(23,265)
|
|
(97,722)
|
|
(86,798)
|
Total
|
|
|
$
674,575
|
|
$
633,828
|
|
$
2,521,676
|
|
$
2,618,924
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(loss)
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
|
|
$
16,645
|
|
$
13,850
|
|
$
71,398
|
|
$
59,592
|
Energy and Mining
|
|
|
2,667
|
|
(21,523)
|
|
11,851
|
|
(18,762)
|
Utility Support
Structures
|
|
|
20,751
|
|
(2,414)
|
|
69,077
|
|
37,847
|
Coatings
|
|
|
9,464
|
|
5,363
|
|
46,596
|
|
27,369
|
Infrastructure products
|
|
|
49,527
|
|
(4,724)
|
|
198,922
|
|
106,046
|
|
|
|
|
|
|
|
|
|
|
Irrigation
|
|
|
17,074
|
|
8,305
|
|
87,835
|
|
84,537
|
Other
|
|
|
-
|
|
(6,039)
|
|
-
|
|
(9,802)
|
Corporate
|
|
|
(10,508)
|
|
(14,542)
|
|
(43,253)
|
|
(49,086)
|
Total
|
|
|
$
56,093
|
|
$
(17,000)
|
|
$
243,504
|
|
$
131,695
|
|
|
|
|
|
|
|
|
|
|
The backlog of orders
for the principal products manufactured and marketed was $602
million at the end of fiscal 2016 and $591 million at the end of the 2015 fiscal year.
We anticipate that most of the backlog of orders will be
filled during fiscal year
2017. At year-end, the segments with backlog were as follows
(dollar amounts in millions):
|
|
|
|
31-Dec-16
|
|
|
|
26-Dec-15
|
|
|
Engineered
Support Structures
|
|
|
$171
|
|
|
|
$148
|
|
|
Energy and
Mining
|
|
|
99
|
|
|
|
111
|
|
|
Utility Support
Structures
|
|
|
268
|
|
|
|
245
|
|
|
Irrigation
|
|
|
64
|
|
|
|
87
|
|
|
Coatings
|
|
|
-
|
|
|
|
-
|
|
|
Other
|
|
|
-
|
|
|
|
-
|
|
|
|
|
|
$
602
|
|
|
|
$
591
|
|
|
|
|
|
|
|
|
|
|
|
|
Valmont has
aggregated its business segments into five reportable segments as
follows.
|
|
|
|
|
|
|
Engineered
Support Structures:This segment consists of the manufacture
of engineered structures and components for global lighting
and traffic, wireless communication, and roadway
safety.
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
Utility
Support Structures:This segment consists of the manufacture
of engineered steel and concrete structures for the global utility
industry.
|
|
|
|
|
|
|
|
|
|
|
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 and tubular products for industrial
customers.
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
31-Dec-16
|
|
|
|
26-Dec-15
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
399,948
|
|
|
|
$
349,074
|
Accounts receivable,
net
|
|
|
439,342
|
|
|
|
466,443
|
Inventories
|
|
|
350,028
|
|
|
|
340,672
|
Prepaid expenses
|
|
|
57,297
|
|
|
|
46,137
|
Refundable and deferred
income taxes
|
|
|
6,601
|
|
|
|
24,526
|
Total current assets
|
|
|
1,253,216
|
|
|
|
1,226,852
|
Property, plant and
equipment, net
|
|
|
518,335
|
|
|
|
532,489
|
Goodwill and other
assets
|
|
|
620,180
|
|
|
|
633,041
|
|
|
|
$
2,391,731
|
|
|
|
$
2,392,382
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current installments of
long-term debt
|
|
|
$
851
|
|
|
|
$
1,077
|
Notes payable to
banks
|
|
|
746
|
|
|
|
976
|
Accounts payable
|
|
|
177,488
|
|
|
|
179,983
|
Accrued expenses
|
|
|
162,318
|
|
|
|
175,947
|
Dividend payable
|
|
|
8,445
|
|
|
|
8,571
|
Total current liabilities
|
|
|
349,848
|
|
|
|
366,554
|
Long-term debt,
excluding current installments
|
|
754,795
|
|
|
|
756,918
|
Defined benefit
pension liability
|
|
|
209,470
|
|
|
|
179,323
|
Other long-term
liabilities
|
|
|
95,032
|
|
|
|
124,376
|
Shareholders'
equity
|
|
|
982,586
|
|
|
|
965,211
|
|
|
|
$
2,391,731
|
|
|
|
$
2,392,382
|
|
|
|
|
|
|
|
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
Year to
Date
|
|
|
|
Year to
Date
|
|
|
|
31-Dec-16
|
|
|
|
26-Dec-15
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net
Earnings
|
|
|
$
178,391
|
|
|
|
$
45,333
|
Depreciation and amortization
|
|
|
82,417
|
|
|
|
91,144
|
Impairment of assets - restructuring activities
|
|
1,099
|
|
|
|
19,836
|
Impairment of goodwill and trade names
|
|
|
-
|
|
|
|
41,970
|
Change
in working capital
|
|
|
10,190
|
|
|
|
71,891
|
Deferred
income tax (benefit) expense
|
|
|
(23,685)
|
|
|
|
4,858
|
Other
|
|
|
(29,244)
|
|
|
|
(2,765)
|
Net cash
flows from operating activities
|
|
219,168
|
|
|
|
272,267
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchase
of property, plant, and equipment
|
|
(57,920)
|
|
|
|
(45,468)
|
Acquisitions, net of cash acquired
|
|
|
-
|
|
|
|
(12,778)
|
Other
|
|
|
4,871
|
|
|
|
10,075
|
Net cash
flows from investing activities
|
|
(53,049)
|
|
|
|
(48,171)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Proceeds
from long-term borrowings
|
|
|
-
|
|
|
|
68,000
|
Principal payments on borrowings
|
|
|
(2,206)
|
|
|
|
(81,951)
|
Purchase
of treasury shares
|
|
|
(53,800)
|
|
|
|
(168,983)
|
Dividends paid
|
|
|
(34,053)
|
|
|
|
(35,357)
|
Other
|
|
|
(5,099)
|
|
|
|
(1,714)
|
Net cash
flows from financing activities
|
|
(95,158)
|
|
|
|
(220,005)
|
Effect of exchange
rates on cash and cash equivalents
|
|
(20,087)
|
|
|
|
(26,596)
|
Net change in cash
and cash equivalents
|
|
|
50,874
|
|
|
|
(22,505)
|
Cash and cash
equivalents - beginning of year
|
|
349,074
|
|
|
|
371,579
|
Cash and cash
equivalents - end of period
|
|
|
399,948
|
|
|
|
349,074
|
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) deferred income tax (benefit)
expense arising from changes in foreign tax rates and an
international legal reorganization (3) goodwill and trade name
impairment charges, and (4) other non-recurring expenses (including
the reversal of a contingent liability), and (b) segment operating
income of restructuring costs, impairments, and non-recurring
expenses. 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 as a number of non-recurring transactions were
recognized in 2016 and 2015, some of which are
non-cash.
|
|
|
|
|
Fourth Quarter
Ended Dec. 31,
2016
|
|
Diluted
earnings per
share
|
|
Year-to-Date
Dec. 31, 2016
|
|
Diluted
earnings
per share
|
Net earnings (loss)
attributable to Valmont Industries, Inc. - as
reported
|
|
|
$
70,064
|
|
$
3.10
|
|
$
173,232
|
|
$
7.63
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses
|
|
|
7,341
|
|
0.32
|
|
12,425
|
|
0.55
|
|
|
|
|
|
|
|
|
|
|
Reversal of
contingent liability
|
|
|
(16,591)
|
|
(0.73)
|
|
(16,591)
|
|
(0.73)
|
|
|
|
|
|
|
|
|
|
|
Fair market value
adjustment, Delta EMD
|
|
|
(332)
|
|
(0.01)
|
|
586
|
|
0.03
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax
adjustments
|
|
|
(9,582)
|
|
(0.42)
|
|
(3,580)
|
|
(0.16)
|
|
|
|
|
|
|
|
|
|
|
Tax effect of
adjustments **
|
|
|
(1,574)
|
|
(0.07)
|
|
(3,180)
|
|
(0.14)
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax
benefit - non-recurring
|
|
|
(22,565)
|
|
(1.00)
|
|
(20,705)
|
|
(0.91)
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Valmont Industries, Inc. - Adjusted
|
$
36,343
|
|
$
1.61
|
|
$
145,767
|
|
$
6.42
|
Average shares
outstanding (000's) - Diluted
|
|
|
|
|
22,611
|
|
|
|
22,709
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
Ended Dec. 26,
2015
|
|
Diluted
earnings per
share
|
|
Year-to-Date
Dec. 26, 2015
|
|
Diluted
earnings
per share
|
Net earnings
attributable to Valmont Industries, Inc. - as reported
|
|
|
$
(30,561)
|
|
$
(1.34)
|
|
$
40,117
|
|
$
1.71
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses
|
|
|
16,009
|
|
0.70
|
|
39,852
|
|
1.70
|
|
|
|
|
|
|
|
|
|
|
Impairment of
goodwill and trade names
|
|
|
26,770
|
|
1.16
|
|
41,970
|
|
1.80
|
|
|
|
|
|
|
|
|
|
|
Other one-time
charges *
|
|
|
24,010
|
|
1.04
|
|
24,010
|
|
1.03
|
|
|
|
|
|
|
|
|
|
|
Total pre-tax
adjustments
|
|
|
66,789
|
|
2.90
|
|
105,832
|
|
4.52
|
|
|
|
|
|
|
|
|
|
|
Tax effect of
adjustments **
|
|
|
(12,244)
|
|
(0.53)
|
|
(21,271)
|
|
(0.91)
|
|
|
|
|
|
|
|
|
|
|
Deferred income tax
expense - non-recurring***
|
|
7,120
|
|
0.31
|
|
7,120
|
|
0.30
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Valmont Industries, Inc. - Adjusted
|
$
31,104
|
|
$
1.35
|
|
$
131,798
|
|
$
5.63
|
Average shares
outstanding (000's) - Diluted
|
|
|
|
|
23,018
|
|
|
|
23,405
|
|
|
|
|
|
|
|
|
|
|
* Other
non-recurring charges (pre-tax) in 2015 are the $17,000 provision
for a Utility commercial settlement and the $7,010 recognized
allowance for doubtful China
receivable (Irrigation).
|
** The tax effect
of adjustments is calculated based on the income tax rate in each
applicable jurisdiction, except the reversal of the contingent
liability in 2016 and the
impairment of goodwill, both of which are not
taxable.
|
***The $7,120 of
deferred income tax expense is due to a 2% decrease in the U.K.
corporate tax rate in 2015.
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
|
|
SUMMARY OF EFFECT
OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED OPERATING
INCOME
|
|
|
REGULATION G
RECONCILIATION (Continued)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
Reconciliation
|
|
|
Year-to-Date
Dec. 31, 2016
|
|
|
|
Year-to-Date
Dec. 26, 2015
|
|
Increase 2016
from 2015
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - as reported
|
|
|
$
243,504
|
|
|
|
$
131,695
|
|
$
111,809
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses
|
|
|
12,425
|
|
|
|
39,852
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Impairment of
goodwill and trade names
|
|
|
-
|
|
|
|
41,970
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other non-recurring
charges
|
|
|
-
|
|
|
|
24,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
$
255,929
|
|
|
|
$
237,527
|
|
$
18,402
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
2,521,676
|
|
|
|
$
2,618,924
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
as a % of Sales
|
|
|
9.7%
|
|
|
|
5.0%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income as a % of Sales
|
|
|
10.1%
|
|
|
|
9.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Fourth
Quarter Ended Dec. 31, 2016
|
|
|
Segment Operating
Income Reconciliation
|
Operating
Income- As
Reported
|
|
Restructuring
expenses
|
|
Adjusted
Operating
Income
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
$
16,645
|
|
$
2,561
|
|
$
19,206
|
|
$
216,454
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
7.7%
|
|
|
|
8.9%
|
|
|
|
|
|
|
Utility Support
Structures
|
20,751
|
|
-
|
|
20,751
|
|
185,119
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
11.2%
|
|
|
|
11.2%
|
|
|
|
|
|
|
Energy &
Mining
|
2,667
|
|
3,571
|
|
6,238
|
|
87,944
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
3.0%
|
|
|
|
7.1%
|
|
|
|
|
|
|
Coatings
|
9,464
|
|
361
|
|
9,825
|
|
75,520
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
12.5%
|
|
|
|
13.0%
|
|
|
|
|
|
|
Irrigation
|
17,074
|
|
468
|
|
17,542
|
|
136,628
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
12.5%
|
|
|
|
12.8%
|
|
|
|
|
|
|
Corporate/Other
|
(10,508)
|
|
380
|
|
(10,128)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Results
|
$
56,093
|
|
$
7,341
|
|
$
63,434
|
|
$
674,575
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
8.3%
|
|
|
|
9.4%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Fourth
Quarter Ended Dec. 26, 2015
|
|
|
Segment Operating
Income Reconciliation
|
Operating
Income- As
Reported
|
|
Restructuring
expenses
|
|
Impairment of
goodwill and
TM
|
|
Other Non-
recurring
expenses
|
|
Adjusted
Operating
Income
|
|
Net
Sales
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
$
13,850
|
|
$
4,159
|
|
|
|
|
|
$
18,009
|
|
$
193,383
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
7.2%
|
|
|
|
|
|
|
|
9.3%
|
|
|
Utility Support
Structures
|
(2,414)
|
|
1,578
|
|
|
|
17,001
|
|
16,165
|
|
170,623
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
-1.4%
|
|
|
|
|
|
|
|
9.5%
|
|
|
Energy &
Mining
|
(21,523)
|
|
2,353
|
|
19,640
|
|
|
|
470
|
|
78,764
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
-27.3%
|
|
|
|
|
|
|
|
0.6%
|
|
|
Coatings
|
5,363
|
|
1,005
|
|
6,530
|
|
|
|
12,898
|
|
75,731
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
7.1%
|
|
|
|
|
|
|
|
17.0%
|
|
|
Irrigation
|
8,305
|
|
876
|
|
|
|
7,009
|
|
16,190
|
|
137,546
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
6.0%
|
|
|
|
|
|
|
|
11.8%
|
|
|
Corporate/Other
|
(20,581)
|
|
6,038
|
|
600
|
|
|
|
(13,943)
|
|
NM
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Results
|
$
(17,000)
|
|
$
16,009
|
|
$
26,770
|
|
$
24,010
|
|
$
49,789
|
|
$
633,828
|
|
|
|
|
|
|
|
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
-2.7%
|
|
|
|
|
|
|
|
7.9%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Increase 4th qtr
2016 from 2015
|
$
73,093
|
|
|
|
|
|
|
|
$
13,645
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
NM - Not
Meaningful
|
|
|
|
|
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/valmont-reports-fourth-quarter-and-fiscal-year-2016-results-300411114.html
SOURCE Valmont Industries, Inc.