OMAHA, Neb., Feb. 21, 2018 /PRNewswire/ -- Valmont
Industries, Inc. (NYSE: VMI), a leading
global provider of engineered products and services for
infrastructure development and irrigation equipment and services
for agriculture, today reported fourth quarter and full year 2017
results.
|
Fourth
Quarter
|
|
Year-to-date
|
Summarized
Financial Information
|
13/14 Weeks
Ended
|
|
52/53 Weeks
Ended
|
|
30-Dec-17
|
|
31-Dec-16
|
|
30-Dec-17
|
|
31-Dec-16
|
Net sales
|
$ 714,978
|
|
$ 674,575
|
|
$
2,745,967
|
|
$
2,521,676
|
Operating
income
|
63,717
|
|
56,093
|
|
266,432
|
|
243,504
|
Operating
income as a % of net sales GAAP
|
8.9%
|
|
8.3%
|
|
9.7%
|
|
9.7%
|
Operating
income-Adjusted1
|
63,717
|
|
63,434
|
|
266,432
|
|
255,929
|
Operating
income as a % of net sales Adjusted1
|
8.9%
|
|
9.4%
|
|
9.7%
|
|
10.1%
|
Net earnings (loss) -
GAAP
|
(3,611)
|
|
70,064
|
|
116,240
|
|
173,232
|
Net earnings -
Adjusted1
|
38,166
|
|
36,343
|
|
158,412
|
|
145,767
|
|
|
|
|
|
|
|
|
Diluted EPS - GAAP
net earnings
|
$
(0.16)
|
|
$
3.10
|
|
$
5.11
|
|
$
7.63
|
Average shares
outstanding - Diluted
|
22,565
|
|
22,611
|
|
22,738
|
|
22,709
|
|
|
|
|
|
|
|
|
Diluted EPS -
Adjusted net earnings1
|
$
1.67
|
|
$
1.61
|
|
$
6.97
|
|
$
6.42
|
|
|
|
|
|
|
|
|
Average shares
outstanding - Diluted
|
22,801
|
|
22,611
|
|
22,738
|
|
22,709
|
Fourth Quarter Highlights:
- Revenues increased 6.0% to $715.0
million with sales increases in all reportable segments
- Volumes were higher in the Irrigation and Utility Support
Structures segments, partially offset by volume declines in
Engineered Support Structures and the grinding media business
- GAAP operating income increased 13.6% to $63.7 million. On an adjusted basis, operating
income was comparable to 2016
- Inflationary cost pressures resulted in a $3 million incremental impact from LIFO inventory
valuation expense compared to 2016
- GAAP diluted loss per share was $0.16 compared to earnings per share (EPS) of
$3.10 in 2016 ($1.67 and $1.61
adjusted).1
- GAAP results for 2017 include a $42
million tax expense resulting from the recently enacted Tax
Cuts and Jobs Act ("TCJA")1
Full Year Highlights:
- Full year revenues increased 9.0%, reflecting higher sales in
all reportable segments, the first full year of sales growth since
2013
- Higher volumes in the Utility and Irrigation segments, partial
price recovery of raw material costs across all reportable
segments, and favorable foreign currency translation, led to the
revenue increase
- GAAP operating income increased $22.9
million to $266.4 million,
(increased $10.5 million from
$255.9 million adjusted in
2016)1
- GAAP diluted EPS was $5.11, down
33% compared to $7.63 last year
($6.97, up 8.6% compared to
$6.42 adjusted in
2016)1
- Productivity improvements and cost reductions were not enough
to fully offset lagging recoveries of zinc and steel costs
throughout the year
- Total year operating cash flows were $145.7 million and capital expenditures were
$55.3 million, resulting in free cash
flow of $90.4 million
Resegmentation
In the fourth quarter, the Company modified its management and
reporting structure to four segments, eliminating the former Energy
and Mining as a reporting segment. This reflects a reduced
dependency on the energy and mining end-markets, and the pending
divestiture of the grinding media business, subject to regulatory
approval. The following changes were made:
- Access Systems is now reported in the Engineered Support
Structures Segment
- The offshore structures business is included in the Utility
Support Structures Segment, and
- Grinding media is reported in "Other," pending its
divestiture.
Impact of Tax Cuts and Jobs Act
Fourth quarter earnings include a $42
million, or $1.841
per diluted share, expense for the estimated impact of the recently
enacted TCJA. This is comprised of:
- $20.4 million of expense related
to the remeasurement of U.S. deferred tax assets at a lower
rate
- $21.6 million of expense related
to the taxation of unremitted foreign earnings, including
anticipated withholding taxes on foreign dividends
Fourth Quarter Summary
"We achieved solid results for the quarter despite some
headwinds," said Stephen G.
Kaniewski, President and Chief Executive Officer. "Strong
underlying demand in North America
utility and international irrigation drove higher sales. The
Coatings Segment successfully recovered higher zinc costs, but the
Engineered Support Structures Segment was challenged to fully
recover inflationary costs. As expected, the grinding media
business was faced with lower volumes, and difficulties fully
recovering steel costs, similar to prior quarters."
"One particular challenge we faced was rapid inflation of raw
material costs. On balance, sales price increases and productivity
improvements mitigated the impact of inflation on earnings. We
believe we managed well through these challenges."
Fourth Quarter Segment Review
Infrastructure-related
Engineered Support Structures (35.0% of
Sales)
Poles, towers and components for the global lighting,
traffic and wireless communication markets, engineered access
systems, and highway safety products.
Sales of $250.1 million were 2.4%
higher than last year. Higher highway safety product sales in
Australia, were partly offset by
lower sales of lighting, traffic and wireless communication
structures globally. Access Systems revenues were similar to last
year.
In North America, sales of
lighting and traffic structures were lower, due to a decline in
non-residential construction. An initiative by the Australian
government to improve roadway safety resulted in increased sales of
our highway safety products in that region. In Europe, lighting sales were up slightly.
Global wireless communication structures revenues were lower.
Increases in North America were
more than offset by significantly lower sales in China. One particular challenge we faced in
China, were government mandates to
reduce pollution, leading to cuts in steel production and telecom
demand.
Operating income was $16.3 million
or 6.5% of sales, compared to $16.5
million, or 6.8% of sales in 2016, ($22.7 million and 9.3% adjusted).1
Despite the modest increase in sales, operating income as a
percentage of sales was lower. Unfavorable sales mix was only
partially offset by productivity improvements.
Utility Support Structures (34.0% of Sales)
Steel and concrete structures for the global electric utility
industry, wind and offshore structures.
Sales of $243.4 million increased
14.0%, driven by continued strong demand in North America and price recovery of increased
steel costs. International sales were lower than last year due to a
large project in the fourth quarter of 2016 that did not
repeat.
Operating income increased to $28.4
million or 11.7% of sales, compared to $22.6 million or 10.6% of sales in 2016.
Increased volume, factory productivity, and SG&A leverage were
the major contributors to improved profitability.
Coatings Segment (11.6% of Sales)
Global galvanizing, painting and anodizing services.
Sales of $83.0 million were up
10.1% compared to last year. Increased sales to other Valmont
segments, improving market conditions in Australia, and pricing to recover zinc cost
increases led to the sales gain.
Operating income was $14.1
million, or 17.0% of sales compared to $9.5 million, or 12.5% of sales in 2016,
($9.8 million and 13.0%
adjusted).1 Pricing actions to recover inflation, and
favorable SG&A comparisons drove profitability gains. In the
Asia Pacific region, productivity
improvements, and volume recoveries, further contributed to
profitability improvement.
Agriculture-related
Irrigation Segment (20.9% of Sales)
Agricultural irrigation equipment, parts, services and tubular
products.
Global irrigation sales of $149.5
million were 9.4% higher than last year, mainly driven by
project activity and elevated demand in our core international
markets. Sales in North America
were comparable to 2016.
Operating income was $18.3 million
or 12.2% of sales, compared to $15.7
million or 11.5% last year, ($16.2
million and 11.9% adjusted).1 The increase in
operating income was the result of improved volume leverage in our
factories and pricing actions amid increased inflation.
Other (2.2% of sales)
Manufacture of forged steel grinding media for the mining
industry
Sales in grinding media were $15.8
million compared to $21.9
million in 2016, a decline of 28%. Fourth-quarter operating
loss was $1.6 million compared to
operating income of $2.1 million in
2016. As announced last August, the divestiture of the grinding
media business is pending and subject to regulatory approval.
2018 Restructuring Plan
The Company is planning to restructure certain operations in
2018, primarily in the Engineered Support Structures segment,
through consolidation and other cost-reduction activities. A
pre-tax charge of $10 million is
expected, of which $8.5 million is
cash expenses. We anticipate these expenses to be recovered through
lower operating costs within 12-18 months of their occurrence. We
will continue our ongoing efforts to reduce costs as appropriate
and further improve productivity.
2018 Outlook
The Company is issuing 2018 annual guidance of GAAP diluted EPS
to be approximately $7.70, and
adjusted diluted EPS to be approximately $8.00. Adjusted EPS does not include the impacts
of the 2018 Restructuring Plan. Any effects from the divestiture of
the grinding media business or potential acquisitions have not been
included in the earnings guidance
Assumptions:
- Revenue growth of 7%, excluding the impact from the divestiture
of the grinding media business and any potential acquisitions
- Inflationary environment in raw material costs will continue
through the year, which are expected to be mostly offset by pricing
actions, cost reductions, and productivity improvements. Inflation
assumptions do not include potential tariffs and quotas enacted by
the U.S. Department of Commerce
- Modest positive impact from foreign exchange translation
- Tax rate of 25%
"We expect sales and earnings growth in 2018," said Mr.
Kaniewski. "We also anticipate continued challenges from an
inflationary environment, particularly in steel and freight. We
will strive to recover these increases through strategic pricing
actions and ongoing efforts to improve productivity."
"The current global economic recovery should produce modest
growth for the Engineered Support Structures and Coatings segments.
Continued good market conditions in Utility support a positive
outlook. Expected growth in our Irrigation business will be driven
by international markets, with modest growth in North America."
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#:2874769 or via Webcast at 8:00 a.m. CST February 22,
2018 at
https://engage.vevent.com/rt/valmontindustries_ao~2874769
A replay is available through the above link or by telephone
(855) 859-2056 or (404) 537-3406, Conference ID#: 2874769 beginning
February 22, 2018 at 10:00 a.m. CST through 12:00 p.m. CST on March 1,
2018. The Company's slide presentation for the
call will be simultaneously available on the Investors
page at www.valmont.com.
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
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
|
|
|
|
|
13/14 Weeks
Ended
|
|
52/53 Weeks
Ended
|
|
|
|
|
30-Dec-17
|
|
31-Dec-16
|
|
30-Dec-17
|
|
31-Dec-16
|
|
Net sales
|
|
|
$
714,978
|
|
$
674,575
|
|
$
2,745,967
|
|
$
2,521,676
|
|
Cost of
sales
|
|
|
544,689
|
|
509,441
|
|
2,064,199
|
|
1,865,433
|
|
Gross
profit
|
|
|
170,289
|
|
165,134
|
|
681,768
|
|
656,243
|
|
Selling, general and
administrative expenses
|
|
|
106,572
|
|
109,041
|
|
415,336
|
|
412,739
|
|
Operating income
(loss)
|
|
|
63,717
|
|
56,093
|
|
266,432
|
|
243,504
|
|
Other income
(expense)
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
(11,333)
|
|
(11,133)
|
|
(44,645)
|
|
(44,409)
|
|
Interest income
|
|
|
1,532
|
|
816
|
|
4,737
|
|
3,105
|
|
Reversal of contingent
liability
|
|
|
-
|
|
16,591
|
|
-
|
|
16,591
|
|
Other
|
|
|
256
|
|
1,211
|
|
1,940
|
|
1,663
|
|
|
|
|
(9,545)
|
|
7,485
|
|
(37,968)
|
|
(23,050)
|
|
Earnings (loss) before income taxes
and equity in earnings of nonconsolidated
subsidiaries
|
|
54,172
|
|
63,578
|
|
228,464
|
|
220,454
|
|
Income tax
expense
|
|
|
55,802
|
|
(7,679)
|
|
106,145
|
|
42,063
|
|
|
|
|
|
|
|
|
|
|
|
|
Net earnings
(loss)
|
|
|
(1,630)
|
|
71,257
|
|
122,319
|
|
178,391
|
|
Less: Earnings
attributable to non-controlling interests
|
|
(1,981)
|
|
(1,193)
|
|
(6,079)
|
|
(5,159)
|
|
Net earnings (loss)
attributable to Valmont Industries, Inc.
|
$
(3,611)
|
|
$
70,064
|
|
$
116,240
|
|
$
173,232
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Basic
|
|
|
22,565
|
|
22,439
|
|
22,520
|
|
22,562
|
|
Earnings (loss) per
share - Basic
|
|
|
$
(0.16)
|
|
$
3.12
|
|
$
5.16
|
|
$
7.68
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Diluted
|
|
22,565
|
|
22,611
|
|
22,738
|
|
22,709
|
|
Earnings (loss) per
share - Diluted
|
|
|
$
(0.16)
|
|
$
3.10
|
|
$
5.11
|
|
$
7.63
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
13/14 Weeks
Ended
|
|
52/53 Weeks
Ended
|
|
|
|
|
30-Dec-17
|
|
31-Dec-16
|
|
30-Dec-17
|
|
31-Dec-16
|
|
|
|
|
|
|
|
|
|
|
|
|
Net sales
|
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
|
|
$
250,087
|
|
$
244,311
|
|
$
938,102
|
|
$
906,719
|
|
Utility Support
Structures
|
|
|
243,437
|
|
213,628
|
|
859,115
|
|
736,365
|
|
Coatings
|
|
|
83,049
|
|
75,519
|
|
318,891
|
|
289,481
|
|
Infrastructure products
|
|
|
576,573
|
|
533,458
|
|
2,116,108
|
|
1,932,565
|
|
|
|
|
|
|
|
|
|
|
|
|
Irrigation
|
|
|
149,490
|
|
136,628
|
|
652,430
|
|
575,204
|
|
Other
|
|
|
15,834
|
|
21,921
|
|
76,300
|
|
83,110
|
|
Less: Intersegment
sales
|
|
|
(26,919)
|
|
(17,432)
|
|
(98,871)
|
|
(69,203)
|
|
Total
|
|
|
$
714,978
|
|
$
674,575
|
|
$
2,745,967
|
|
$
2,521,676
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
(loss)
|
|
|
|
|
|
|
|
|
|
|
Engineered Support
Structures
|
|
|
$
16,258
|
|
$
16,544
|
|
$
62,960
|
|
$
72,273
|
|
Utility Support
Structures
|
|
|
28,400
|
|
22,595
|
|
97,853
|
|
71,171
|
|
Coatings
|
|
|
14,088
|
|
9,464
|
|
50,179
|
|
46,596
|
|
Infrastructure products
|
|
|
58,746
|
|
48,603
|
|
210,992
|
|
190,040
|
|
|
|
|
|
|
|
|
|
|
|
|
Irrigation
|
|
|
18,302
|
|
15,729
|
|
101,498
|
|
90,945
|
|
Other
|
|
|
(1,594)
|
|
2,138
|
|
2,134
|
|
8,730
|
|
Adjustment to LIFO method of inventory valuation
|
|
(2,841)
|
|
220
|
|
(5,680)
|
|
(2,972)
|
|
Corporate
|
|
|
(8,896)
|
|
(10,597)
|
|
(42,512)
|
|
(43,239)
|
|
Total
|
|
|
$
63,717
|
|
$
56,093
|
|
$
266,432
|
|
$
243,504
|
|
|
|
|
|
|
|
|
|
|
|
|
In the fourth quarter
of 2017, our management and reporting structure changed to reflect
management's expectations of future growth of certain product lines
and to take into consideration the expected divestiture of the
grinding media business, subject to regulatory approval, which
historically was reported in the Energy and Mining segment. The
access systems applications product line is now part of the
Engineered Support Structures ("ESS") segment and the offshore and
other complex structures product line is now part of the Utility
Support Structures segment. Grinding media will be reported in
"Other" pending the completion of its divestiture.
|
|
|
|
|
|
|
|
|
|
|
|
|
The backlog of
orders for the principal products manufactured and marketed was
$670 million at the end of fiscal 2017 and $603 million at the end of the 2016 fiscal year.
We anticipate that most of the backlog of orders will be
filled filled during fiscal
year 2018. At year-end, the segments with backlog were as follows
(dollar amounts in millions):
|
|
|
|
|
|
|
30-Dec-17
|
|
|
|
31-Dec-16
|
|
|
|
Engineered
Support Structures
|
|
|
$204
|
|
|
|
$190
|
|
|
|
Utility Support
Structures
|
|
|
359
|
|
|
|
336
|
|
|
|
Irrigation
|
|
|
100
|
|
|
|
64
|
|
|
|
Coatings
|
|
|
-
|
|
|
|
-
|
|
|
|
Other
|
|
|
7
|
|
|
|
13
|
|
|
|
|
|
|
$
670
|
|
|
|
$
603
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Valmont has
aggregated its business segments into four reportable segments as
follows.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Engineered
Support Structures: This segment consists of the
manufacture of engineered metal and composite structures and
components for global lighting and traffic, wireless communication,
access systems and roadway safety.
|
|
|
|
|
|
|
|
|
|
|
|
Utility
Support Structures: This segment consists of the
manufacture of engineered steel and concrete structures for the
global utility industry and offshore and other complex steel
structures used in energy generation and distribution outside the
United States.
|
|
|
|
|
|
|
|
|
|
|
|
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.
|
|
|
|
|
|
|
|
|
|
|
|
In addition to
these four reportable segments, the Company had other businesses
and activities that individually are not more than 10% of
consolidated sales, operating income or assets. This includes the
manufacture of forged steel grinding media for the mining industry
and is reported in the "Other" category.
|
VALMONT
INDUSTRIES, INC. AND SUBSIDIARIES
|
CONDENSED
CONSOLIDATED BALANCE SHEETS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
|
|
|
|
|
|
|
|
30-Dec-17
|
|
|
|
31-Dec-16
|
ASSETS
|
|
|
|
|
|
|
|
Current
assets:
|
|
|
|
|
|
|
|
Cash and cash
equivalents
|
|
|
$
492,805
|
|
|
|
$
399,948
|
Accounts receivable,
net
|
|
|
503,677
|
|
|
|
439,342
|
Inventories
|
|
|
420,948
|
|
|
|
350,028
|
Prepaid expenses
|
|
|
43,643
|
|
|
|
57,297
|
Refundable and deferred
income taxes
|
|
|
11,492
|
|
|
|
6,601
|
Total current assets
|
|
|
1,472,565
|
|
|
|
1,253,216
|
Property, plant and
equipment, net
|
|
|
518,928
|
|
|
|
518,335
|
Goodwill and other
assets
|
|
|
610,757
|
|
|
|
620,180
|
|
|
|
$
2,602,250
|
|
|
|
$
2,391,731
|
|
|
|
|
|
|
|
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
|
|
|
Current
liabilities:
|
|
|
|
|
|
|
|
Current installments of
long-term debt
|
|
|
$
966
|
|
|
|
$
851
|
Notes payable to
banks
|
|
|
161
|
|
|
|
746
|
Accounts payable
|
|
|
227,906
|
|
|
|
177,488
|
Accrued expenses
|
|
|
165,455
|
|
|
|
162,318
|
Dividend payable
|
|
|
8,510
|
|
|
|
8,445
|
Total current liabilities
|
|
|
402,998
|
|
|
|
349,848
|
Long-term debt,
excluding current installments
|
|
753,888
|
|
|
|
754,795
|
Defined benefit
pension liability
|
|
|
189,552
|
|
|
|
209,470
|
Other long-term
liabilities
|
|
|
104,017
|
|
|
|
95,032
|
Shareholders'
equity
|
|
|
1,151,795
|
|
|
|
982,586
|
|
|
|
$
2,602,250
|
|
|
|
$
2,391,731
|
CONDENSED
CONSOLIDATED STATEMENTS OF CASH FLOWS
|
(Dollars in
thousands)
|
(unaudited)
|
|
|
|
Year to
Date
|
|
|
|
Year to
Date
|
|
|
|
30-Dec-17
|
|
|
|
31-Dec-16
|
Cash flows from
operating activities
|
|
|
|
|
|
|
|
Net
Earnings
|
|
|
$
122,319
|
|
|
|
$
178,391
|
Depreciation and amortization
|
|
|
84,957
|
|
|
|
82,417
|
Impairment of assets - restructuring activities
|
|
-
|
|
|
|
1,099
|
Change
in working capital
|
|
|
(74,077)
|
|
|
|
10,190
|
Contributions to defined benefit pension plan
|
|
(27,677)
|
|
|
|
(15,140)
|
Deferred
income tax (benefit) expense
|
|
|
39,755
|
|
|
|
(23,685)
|
Other
|
|
|
439
|
|
|
|
(14,104)
|
Net cash
flows from operating activities
|
|
145,716
|
|
|
|
219,168
|
|
|
|
|
|
|
|
|
Cash flows from
investing activities
|
|
|
|
|
|
|
|
Purchase
of property, plant, and equipment
|
|
(55,266)
|
|
|
|
(57,920)
|
Acquisitions, net of cash acquired
|
|
|
(5,362)
|
|
|
|
-
|
Other
|
|
|
11,013
|
|
|
|
4,871
|
Net cash
flows from investing activities
|
|
(49,615)
|
|
|
|
(53,049)
|
|
|
|
|
|
|
|
|
Cash flows from
financing activities
|
|
|
|
|
|
|
|
Principal payments on borrowings
|
|
|
(1,472)
|
|
|
|
(2,206)
|
Purchase
of treasury shares
|
|
|
-
|
|
|
|
(53,800)
|
Dividends paid
|
|
|
(33,862)
|
|
|
|
(34,053)
|
Other
|
|
|
3,324
|
|
|
|
(5,099)
|
Net cash
flows from financing activities
|
|
(32,010)
|
|
|
|
(95,158)
|
Effect of exchange
rates on cash and cash equivalents
|
|
28,766
|
|
|
|
(20,087)
|
Net change in cash
and cash equivalents
|
|
|
92,857
|
|
|
|
50,874
|
Cash and cash
equivalents - beginning of year
|
|
399,948
|
|
|
|
349,074
|
Cash and cash
equivalents - end of period
|
|
|
492,805
|
|
|
|
399,948
|
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) tax expense attributed to the Tax Cuts and Job Act ("2017
Tax Act"), (2) restructuring costs, (3) deferred income tax
(benefit) expense arising from changes in foreign tax rates and an
international legal reorganization 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 2017 and 2016, some of which are
non-cash.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fourth Quarter
Ended Dec. 30,
2017
|
|
Diluted
earnings per
share
|
|
Year-to-Date
Dec. 30, 2017
|
|
Diluted
earnings
per share
|
Net (loss)/earnings
attributable to Valmont Industries, Inc. - as reported
|
|
|
$
(3,611)
|
|
$
(0.16)
|
|
$
116,240
|
|
$
5.11
|
|
|
|
|
|
|
|
|
|
|
Remeasurement of
deferred tax assets attributed to 2017 Tax Act
|
|
|
20,372
|
|
0.89
|
|
20,372
|
|
0.90
|
|
|
|
|
|
|
|
|
|
|
Non-recurring tax
expense attributed to 2017
Tax Act
|
|
|
21,564
|
|
0.95
|
|
21,564
|
|
0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair market value
adjustment, Delta EMD
|
|
|
(159)
|
|
(0.01)
|
|
236
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
Net earnings
attributable to Valmont Industries, Inc. - Adjusted
|
$
38,166
|
|
$
1.67
|
|
$
158,412
|
|
$
6.97
|
|
|
|
|
|
|
|
|
|
|
Average shares
outstanding (000's) - Diluted
|
|
|
|
|
22,801
|
|
|
|
22,738
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
|
|
|
|
|
|
|
|
|
|
|
* 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,
which is not
taxable.
|
|
|
|
|
|
|
|
|
|
|
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-Ended
Dec. 31, 2016
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating income
(loss) - as reported
|
|
|
$
243,504
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
expenses
|
|
|
12,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income
|
|
|
$
255,929
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Sales
|
|
|
$
2,521,676
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Income
as a % of Sales
|
|
|
9.7%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Operating
Income as a % of Sales
|
|
|
10.1%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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
|
$
16,544
|
|
6,132
|
|
22,676
|
|
244,311
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
6.8%
|
|
|
|
9.3%
|
|
|
|
|
Utility Support
Structures
|
22,595
|
|
-
|
|
22,595
|
|
213,628
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
10.6%
|
|
|
|
10.6%
|
|
|
|
|
Coatings
|
9,464
|
|
361
|
|
9,825
|
|
75,519
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
12.5%
|
|
|
|
13.0%
|
|
|
|
|
Irrigation
|
15,729
|
|
468
|
|
16,197
|
|
136,628
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
11.5%
|
|
|
|
11.9%
|
|
|
|
|
Corporate/Other
|
(8,239)
|
|
380
|
|
(7,859)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated
Results
|
$
56,093
|
|
7,341
|
|
$
63,434
|
|
$
674,575
|
|
|
|
|
|
|
|
|
|
|
|
|
Op Inc.
& Adjusted Op Inc. as a % of Sales
|
8.3%
|
|
|
|
9.4%
|
|
|
|
|
View original
content:http://www.prnewswire.com/news-releases/valmont-reports-fourth-quarter-and-fiscal-year-2017-results-300602388.html
SOURCE Valmont Industries, Inc.