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Valmont Reports Third Quarter 2023 Results and Updates Full-Year Financial Outlook

October 25, 2023

Valmont Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the third quarter ended September 30, 2023.

President and Chief Executive Officer Avner M. Applbaum commented, “Our global teams performed extremely well during the third quarter, expanding gross profit and delivering strong third-quarter adjusted earnings per share against a dynamic demand environment. In Infrastructure, our solid results reflect volume growth from continued strong market demand, and we achieved operating margin improvement year-over-year despite near-term headwinds in telecommunications markets. In Agriculture, international sales growth was led by EMEA project sales and Brazil, where we recognized another quarter of record sales. As expected, North America agriculture sales decreased year-over-year due to continued muted farmer sentiment and third quarter 2022 benefited from the ongoing delivery of elevated backlog. I’m very pleased with our reduction in inventory which helped deliver strong operating cash flows.

“In the third quarter, we also recorded an impairment of goodwill and intangible assets in the Agriculture Technology reporting unit, primarily driven by significantly slower growth of Prospera’s agronomy technology solutions compared to the original financial projections.

“A few weeks ago, the leadership team and I met to discuss our strategy. From where I stand today, our core strategic priorities remain intact. While we will continue prioritizing growth initiatives, looking ahead we will invest with discipline to strengthen our core businesses, and proactively make decisions in conjunction with market cycles. Going forward, we will also ensure new innovation is introduced with the purpose of meeting the immediate needs of our customers. In addition, to align our organization with our strategy, today we are announcing an organizational realignment program to streamline administrative support of our business segments. This realignment, which is expected to be recovered through lower operating costs within 12 months, will enable a more efficient and effective structure for driving long-term profitable growth while reducing costs.”

Third Quarter 2023 Highlights (all metrics compared to Third Quarter 2022 unless otherwise noted)

  • Net Sales of $1.1 billion decreased 4.3%; accounting for the 2022 divestiture of the offshore wind energy structures business, reported in the “Other” segment, Net Sales decreased 2.3%1
  • Operating Income (Loss) was ($24.2) million [$120.8 million or 11.5% of net sales adjusted1] compared to $110.0 million or 10.0% of net sales in 2022 [$114.1 million or 10.6% of net sales adjusted1]
    • Operating Income (Loss) includes non-cash pre-tax goodwill and intangible asset impairment charges of $137.3 million related to the Agriculture Technology reporting unit [$133.3 million after-tax] and $4.2 million of pre-tax cash expenses related to the organizational realignment program
  • Diluted Earnings (Loss) per Share (“EPS”) of ($2.34) [$4.12 adjusted1] compared to $3.34 in 2022 [$3.49 adjusted1]
    • GAAP effective tax rate of (44.6)% reflects the impairment of goodwill for which there is no tax deduction; adjusted effective tax rate of 22.2%1 was driven by favorable legislation regarding usage of foreign tax credits generated in Brazil and benefits from research and development expenses
  • Generated strong operating cash flows of $81.3 million in the third quarter and $190.9 million year-to-date; cash and cash equivalents at the end of the third quarter were $172.6 million
  • Returned $44.2 million to shareholders through dividends and share repurchases including repurchasing approximately 126,500 shares of Company stock for $31.5 million
  • Completed the acquisition of HR Products, a leading wholesale supplier of irrigation parts in Australia
  • Providing updated 2023 full-year outlook and announcing an organizational realignment program to enable a more efficient and effective administrative structure for driving long-term profitable growth

1Please see Reg G reconciliation to GAAP measures at end of document

Key Financial Metrics

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Third Quarter 2023

 

GAAP

 

Adjusted1

 

(000's except per share amounts)

 

09/30/2023

 

09/24/2022

 

 

 

 

09/30/2023

 

09/24/2022

 

 

 

 

 

Q3 2023

 

Q3 2022

 

vs. Q3 2022

 

 

Q3 2023

 

Q3 2022

 

vs. Q3 2022

 

Net Sales

 

$

1,050,295

 

 

$

1,097,382

 

(4.3

)

%

 

$

1,050,295

 

$

1,074,521

 

(2.3

)

%

Operating Income (Loss)

 

 

(24,190

)

 

 

109,972

 

NM

 

 

 

 

120,834

 

 

114,147

 

5.9

 

%

Operating Inc. (Loss) as a % of Net Sales

 

 

(2.3

)

%

 

10.0

%

 

 

 

 

11.5

%

 

10.6

%

 

 

Net Earnings (Loss)

 

 

(49,028

)

 

 

72,112

 

NM

 

 

 

 

86,976

 

 

75,313

 

15.5

 

%

Diluted Earnings (Loss) Per Share

 

$

(2.34

)

 

$

3.34

 

NM

 

 

 

$

4.12

 

$

3.49

 

18.1

 

%

Average Shares Outstanding

 

 

20,951

 

 

 

21,605

 

 

 

 

 

21,131

 

 

21,605

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date 2023

 

GAAP

 

Adjusted1

 

(000's except per share amounts)

 

09/30/2023

 

09/24/2022

 

 

 

 

09/30/2023

 

09/24/2022

 

 

 

 

 

FY 2023

 

FY 2022

 

vs. FY 2022

 

 

FY 2023

 

FY 2022

 

vs. FY 2022

 

Net Sales

 

$

3,159,072

 

 

$

3,213,734

 

(1.7

)

%

 

$

3,159,072

 

$

3,146,787

 

0.4

 

%

Operating Income

 

 

228,009

 

 

 

323,533

 

(29.5

)

%

 

 

380,601

 

 

335,991

 

13.3

 

%

Operating Income as a % of Net Sales

 

 

7.2

 

%

 

10.1

%

 

 

 

 

12.0

%

 

10.7

%

 

 

Net Earnings

 

 

114,888

 

 

 

210,531

 

(45.4

)

%

 

 

257,368

 

 

220,883

 

16.5

 

%

Diluted Earnings Per Share

 

$

5.40

 

 

$

9.77

 

(44.8

)

%

 

$

12.09

 

$

10.25

 

17.9

 

%

Average Shares Outstanding

 

 

21,290

 

 

 

21,546

 

 

 

 

 

21,290

 

 

21,546

 

 

 

Third Quarter 2023 Segment Review

Infrastructure (71.8% of Net Sales)

Products and solutions to serve the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to preserve metal products

Sales of $755.1 million were comparable with last year, driven by higher volumes, notably in the Solar, Lighting and Transportation (“L&T”) and Transmission, Distribution, and Substation (“TD&S”) product lines. Lower Telecommunications volumes and lower pricing associated with a reduced cost of steel in the TD&S product line more than offset higher pricing across the rest of the portfolio.

Operating Income improved to $103.4 million or 13.7% of net sales [$108.0 million or 14.3% adjusted1] compared to $92.5 million or 12.3% of net sales in the third quarter of 2022 as pricing not linked to steel commodity costs was higher and the Company took deliberate actions to improve overall cost of goods sold.

Agriculture (28.2% of Net Sales)

Center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products; advanced technology solutions for precision agriculture

Sales of $298.5 million decreased 8.8% year-over-year as higher international sales were more than offset by lower sales in North America. Sales of agriculture technology products and services globally were similar to last year.

In North America, the sales decrease was primarily driven by lower irrigation equipment sales volumes. As expected, farmer sentiment remained somewhat muted during the quarter and the third quarter of 2022 benefited from the ongoing delivery of elevated backlog. Average irrigation equipment selling prices were comparable with last year. International sales growth was driven by higher project sales in the EMEA region, a record sales quarter in Brazil, and higher sales in Argentina. Third quarter 2023 also benefited from approximately $5.5 million of favorable foreign currency translation impacts compared to last year.

Operating Income (Loss) was ($99.7) million [$38.5 million or 13.0% of net sales adjusted1] compared to $43.3 million or 13.3% of net sales in the third quarter of 2022 [$47.4 million or 14.6% adjusted1]. A $137.3 million impairment of goodwill and intangible assets led to the operating loss in the quarter, as described later in the press release.

Other

Offshore wind energy structures business

As previously announced, the divestiture of the offshore wind energy structures business was completed in December 2022. In the third quarter of 2022, the subsequently-divested business generated sales of $22.9 million and operating income of $1.1 million.

Non-Cash Goodwill and Intangible Asset Impairment Charge of Agriculture Technology

During the third quarter of 2023, Valmont completed its annual impairment testing of goodwill and certain intangible assets. As a result of the impairment analysis, it was concluded that the carrying value of the Agriculture Technology reporting unit exceeded its market value. As such, the Company recorded an impairment loss on goodwill and certain intangible assets of $137.3 million. Significantly slower growth of Prospera’s agronomy technology solutions compared to the original financial projections was the primary driver of the impairment. The recent decline in the North American agriculture market was also a contributing factor. The impairment charge did not affect the Company’s liquidity or cash flows from operating activities.

Balance Sheet, Liquidity, and Capital Allocation

The Company generated strong third quarter 2023 operating cash flows of $81.3 million through effectively managing working capital, specifically inventory. At the end of the third quarter of 2023, cash and cash equivalents were $172.6 million. During the third quarter of 2023, Valmont repurchased $31.5 million of Company stock, with $314.7 million remaining on the authorized share repurchase program.

Organizational Realignment Program

Today, Valmont is announcing a broad organizational realignment program which better aligns the Company’s administrative support structure to its strategy by reducing layers of management, offering a voluntary early retirement program and other headcount reductions. These actions are expected to enable a more efficient and effective administrative structure for driving long-term profitable growth while still investing in growth initiatives. The program affects both reportable segments as well as corporate, and is targeted to take place during 2023. Cash expenses are expected to be between $33 and $36 million and are expected to be recovered through lower operating costs within 12 months. Of the above cost estimates, $4.2 million of pre-tax cash expenses related to the realignment program were incurred during the third quarter 2023.

Updating 2023 Full Year Financial Outlook and Key Assumptions

Taking into consideration third quarter sales and diluted earnings per share results, the expected timing of international agriculture project shipments and the near-term demand outlook for telecommunications markets, the Company is updating its full-year net sales growth and earnings per share outlook from the previous indications that were communicated last quarter and providing updated key assumptions for the year.

2023 Full Year Financial Outlook

Previous Outlook with Updated Adjustments1

Revised Outlook1

Net Sales Growth (vs. PY)

0% to 2%

(3%) to (4%)

GAAP Diluted Earnings per Share

$14.80 to $15.35

$7.20 to $7.50

Adjusted Diluted Earnings per Share1

$14.80 to $15.35

$14.80 to $15.10

  • The impairment charge significantly reduces the future Prospera technology intangible asset amortization, and the realignment program announced in this release lowers future stock-based compensation to be recognized for Prospera employees. The Previous Adjusted Diluted Earnings per Share Outlook has been updated to remove the Prospera adjustments of approximately 65 cents per diluted share from the prior Outlook for comparison to the Revised Outlook
  • Expect full-year operating margin improvement compared to 2022
  • 2022 sales include $100 million from the offshore wind energy structures business which was divested at the end of fiscal 2022
  • GAAP effective tax rate of 36% to 36.5% due to the non-deductibility of the goodwill impairment; Adjusted effective tax rate of 26% to 26.5% due to recent favorable U.S. tax legislation
  • Minimal expected foreign currency translation impact to net sales
  • Capital expenditures expected to be in the range of $100 to $110 million to support strategic growth initiatives

Applbaum continued, “The Valmont team continues to perform well, optimizing margins and earnings while generating strong cash flows, positioning us for profitable growth as we streamline the organization. The long-term outlook across all our end markets remains very positive, while acknowledging near-term headwinds in certain markets. Our management team and organization are united around our strategic priorities, with a focus on initiatives that deliver a compelling value proposition to our customers and drive long-term shareholder value. I am excited about Valmont’s journey as a company that maximizes financial performance through the cycles, made possible by an unwavering discipline on capital allocation and ROIC.”

A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and Timothy P. Francis, Interim Chief Financial Officer, will be accessible by telephone on Thursday, October 26, 2023 at 8:00 a.m. CDT by dialing 1-877-407-6184 or 1-201-389-0877 (no Conference ID needed), or via webcast by pointing browsers to this link: Valmont Industries 3Q 2023 Earnings Conference Call. A slide presentation will simultaneously be available for download on the Investors page of valmont.com. A replay of the event can be accessed three hours after the call at the above link or by telephone at 1-877-660-6853 or 1-201-612-7415. Please use access code 13734765. The replay will be available through 10:59 p.m. CDT on Thursday, November 2, 2023.

About Valmont Industries, Inc.

For over 75 years, Valmont® has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.

Concerning Forward-Looking Statements

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, geopolitical risks, 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.

Website and Social Media Disclosure

The Company uses its website and social media channels identified on its website as channels of distribution of Company information. The information that the Company posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following the Company’s press releases, Securities and Exchange Commission filings, and public conference calls and webcasts. The contents of the Company’s website and social media channels are not part of this press release.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollars in thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Thirty-nine weeks ended

 

 

September 30,

 

September 24,

 

September 30,

 

September 24,

 

 

2023

 

2022

 

2023

 

2022

Net sales

 

$

1,050,295

 

 

$

1,097,382

 

 

$

3,159,072

 

 

$

3,213,734

 

Cost of sales

 

 

735,184

 

 

 

811,904

 

 

 

2,205,979

 

 

 

2,386,469

 

Gross profit

 

 

315,111

 

 

 

285,478

 

 

 

953,093

 

 

 

827,265

 

Selling, general, and administrative expenses

 

 

194,277

 

 

 

175,506

 

 

 

580,060

 

 

 

503,732

 

Impairment of long-lived assets

 

 

140,844

 

 

 

 

 

 

140,844

 

 

 

 

Realignment charges

 

 

4,180

 

 

 

 

 

 

4,180

 

 

 

 

Operating income (loss)

 

 

(24,190

)

 

 

109,972

 

 

 

228,009

 

 

 

323,533

 

Other income (expense)

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(13,472

)

 

 

(11,629

)

 

 

(41,494

)

 

 

(34,278

)

Interest income

 

 

3,186

 

 

 

507

 

 

 

4,579

 

 

 

1,019

 

Gain (loss) on investments - unrealized

 

 

(344

)

 

 

(901

)

 

 

1,791

 

 

 

(4,306

)

Other

 

 

165

 

 

 

2,822

 

 

 

(1,599

)

 

 

8,537

 

Other income (expense), net

 

 

(10,465

)

 

 

(9,201

)

 

 

(36,723

)

 

 

(29,028

)

Earnings (loss) before income taxes and equity in loss of nonconsolidated subsidiaries

 

 

(34,655

)

 

 

100,771

 

 

 

191,286

 

 

 

294,505

 

Income tax expense

 

 

15,461

 

 

 

27,823

 

 

 

79,239

 

 

 

80,531

 

Equity in loss of nonconsolidated subsidiaries

 

 

(199

)

 

 

(18

)

 

 

(1,219

)

 

 

(931

)

Net earnings (loss)

 

 

(50,315

)

 

 

72,930

 

 

 

110,828

 

 

 

213,043

 

Loss (earnings) attributable to non-controlling interests

 

 

1,287

 

 

 

(818

)

 

 

4,060

 

 

 

(2,512

)

Net earnings (loss) attributable to Valmont Industries, Inc.

 

$

(49,028

)

 

$

72,112

 

 

$

114,888

 

 

$

210,531

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (000's) - Basic

 

 

20,951

 

 

 

21,332

 

 

 

21,083

 

 

 

21,308

 

Earnings (loss) per share - Basic

 

$

(2.34

)

 

$

3.38

 

 

$

5.45

 

 

$

9.88

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (000's) - Diluted

 

 

20,951

 

 

 

21,605

 

 

 

21,290

 

 

 

21,546

 

Earnings (loss) per share - Diluted

 

$

(2.34

)

 

$

3.34

 

 

$

5.40

 

 

$

9.77

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.60

 

 

$

0.55

 

 

$

1.80

 

 

$

1.65

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Thirty-nine weeks ended

 

 

September 30,

 

September 24,

 

September 30,

 

September 24,

 

 

2023

 

2022

 

2023

 

2022

Net sales

 

 

 

 

 

 

 

 

 

 

 

 

Infrastructure

 

$

755,076

 

 

$

755,492

 

 

$

2,261,777

 

 

$

2,157,082

 

Agriculture

 

 

298,483

 

 

 

327,261

 

 

 

910,579

 

 

 

1,011,606

 

Other

 

 

 

 

 

22,861

 

 

 

 

 

 

66,947

 

Total

 

 

1,053,559

 

 

 

1,105,614

 

 

 

3,172,356

 

 

 

3,235,635

 

Less: Intersegment sales

 

 

(3,264

)

 

 

(8,232

)

 

 

(13,284

)

 

 

(21,901

)

Total

 

$

1,050,295

 

 

$

1,097,382

 

 

$

3,159,072

 

 

$

3,213,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss)

 

 

 

 

 

 

 

 

 

 

 

 

Infrastructure

 

$

103,401

 

 

$

92,465

 

 

$

313,703

 

 

$

254,908

 

Agriculture

 

 

(99,670

)

 

 

43,258

 

 

 

2,904

 

 

 

138,779

 

Other

 

 

 

 

 

1,107

 

 

 

 

 

 

814

 

Corporate

 

 

(27,921

)

 

 

(26,858

)

 

 

(88,598

)

 

 

(70,968

)

Total

 

$

(24,190

)

 

$

109,972

 

 

$

228,009

 

 

$

323,533

 

Valmont has aggregated its business segments into two global reportable segments, as follows.

Infrastructure : This segment consists of the manufacture and distribution of products and solutions to serve the infrastructure markets of utility, solar, lighting, transportation, and telecommunications, along with coatings services to preserve metal products.

Agriculture : This segment consists of the manufacture of center pivot components and linear irrigation equipment for agricultural markets, including parts and tubular products, and advanced technology solutions for precision agriculture.

In addition to these two reportable segments, the Company had a business and related activities in 2022 that were not more than 10% of consolidated sales, operating income, or assets. This comprised the offshore wind energy structures business which was reported in the “Other” segment until its divestiture in December 2022.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 30, 2023

Sales

 

Infrastructure

 

Agriculture

 

Other

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

572,239

 

$

126,828

 

$

 

$

(3,055

)

 

$

696,012

International

 

 

182,837

 

 

171,655

 

 

 

 

(209

)

 

 

354,283

Total

 

$

755,076

 

$

298,483

 

$

 

$

(3,264

)

 

$

1,050,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

297,967

 

$

 

$

 

$

 

 

$

297,967

Lighting and Transportation

 

 

252,603

 

 

 

 

 

 

 

 

 

252,603

Coatings

 

 

88,967

 

 

 

 

 

 

(1,241

)

 

 

87,726

Telecommunications

 

 

59,630

 

 

 

 

 

 

 

 

 

59,630

Solar

 

 

55,909

 

 

 

 

 

 

(209

)

 

 

55,700

Irrigation Equipment and Parts

 

 

 

 

273,639

 

 

 

 

(1,814

)

 

 

271,825

Technology Products and Services

 

 

 

 

24,844

 

 

 

 

 

 

 

24,844

Total

 

$

755,076

 

$

298,483

 

$

 

$

(3,264

)

 

$

1,050,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 24, 2022

Sales

 

Infrastructure

 

Agriculture

 

Other

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

579,628

 

$

178,626

 

$

 

$

(7,114

)

 

$

751,140

International

 

 

175,864

 

 

148,635

 

 

22,861

 

 

(1,118

)

 

 

346,242

Total

 

$

755,492

 

$

327,261

 

$

22,861

 

$

(8,232

)

 

$

1,097,382

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

304,781

 

$

 

$

 

$

 

 

$

304,781

Lighting and Transportation

 

 

241,590

 

 

 

 

 

 

 

 

 

241,590

Coatings

 

 

91,969

 

 

 

 

 

 

(3,994

)

 

 

87,975

Telecommunications

 

 

92,830

 

 

 

 

 

 

 

 

 

92,830

Solar

 

 

24,322

 

 

 

 

22,861

 

 

(1,118

)

 

 

46,065

Irrigation Equipment and Parts

 

 

 

 

303,003

 

 

 

 

(3,120

)

 

 

299,883

Technology Products and Services

 

 

 

 

24,258

 

 

 

 

 

 

 

24,258

Total

 

$

755,492

 

$

327,261

 

$

22,861

 

$

(8,232

)

 

$

1,097,382

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended September 30, 2023

Sales

 

Infrastructure

 

Agriculture

 

Other

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,743,635

 

$

450,678

 

$

 

$

(12,042

)

 

$

2,182,271

International

 

 

518,142

 

 

459,901

 

 

 

 

(1,242

)

 

 

976,801

Total

 

$

2,261,777

 

$

910,579

 

$

 

$

(13,284

)

 

$

3,159,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

927,094

 

$

 

$

 

$

 

 

$

927,094

Lighting and Transportation

 

 

727,862

 

 

 

 

 

 

 

 

 

727,862

Coatings

 

 

270,201

 

 

 

 

 

 

(6,611

)

 

 

263,590

Telecommunications

 

 

195,505

 

 

 

 

 

 

 

 

 

195,505

Solar

 

 

141,115

 

 

 

 

 

 

(1,242

)

 

 

139,873

Irrigation Equipment and Parts

 

 

 

 

825,277

 

 

 

 

(5,431

)

 

 

819,846

Technology Products and Services

 

 

 

 

85,302

 

 

 

 

 

 

 

85,302

Total

 

$

2,261,777

 

$

910,579

 

$

 

$

(13,284

)

 

$

3,159,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended September 24, 2022

Sales

 

Infrastructure

 

Agriculture

 

Other

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,645,472

 

$

564,369

 

$

 

$

(20,316

)

 

$

2,189,525

International

 

 

511,610

 

 

447,237

 

 

66,947

 

 

(1,585

)

 

 

1,024,209

Total

 

$

2,157,082

 

$

1,011,606

 

$

66,947

 

$

(21,901

)

 

$

3,213,734

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

882,216

 

$

 

$

 

$

 

 

$

882,216

Lighting and Transportation

 

 

701,009

 

 

 

 

 

 

 

 

 

701,009

Coatings

 

 

264,266

 

 

 

 

 

 

(11,295

)

 

 

252,971

Telecommunications

 

 

232,765

 

 

 

 

 

 

 

 

 

232,765

Solar

 

 

76,826

 

 

 

 

66,947

 

 

(1,118

)

 

 

142,655

Irrigation Equipment and Parts

 

 

 

 

928,622

 

 

 

 

(9,488

)

 

 

919,134

Technology Products and Services

 

 

 

 

82,984

 

 

 

 

 

 

 

82,984

Total

 

$

2,157,082

 

$

1,011,606

 

$

66,947

 

$

(21,901

)

 

$

3,213,734

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

September 30,

 

December 31,

 

 

2023

 

2022

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

172,566

 

$

185,406

Receivables, net

 

 

673,999

 

 

604,181

Inventories

 

 

693,629

 

 

728,762

Contract assets

 

 

169,931

 

 

174,539

Prepaid expenses and other current assets

 

 

97,302

 

 

87,697

Total current assets

 

 

1,807,427

 

 

1,780,585

Property, plant, and equipment, net

 

 

603,979

 

 

595,578

Goodwill and other non-current assets

 

 

1,074,773

 

 

1,180,833

Total assets

 

$

3,486,179

 

$

3,556,996

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current installments of long-term debt

 

$

941

 

$

1,194

Notes payable to banks

 

 

3,639

 

 

5,846

Accounts payable

 

 

355,934

 

 

360,312

Accrued expenses

 

 

260,873

 

 

248,320

Contract liabilities

 

 

88,600

 

 

172,915

Income taxes payable

 

 

2,062

 

 

3,664

Dividends payable

 

 

12,533

 

 

11,742

Total current liabilities

 

 

724,582

 

 

803,993

Long-term debt, excluding current installments

 

 

977,260

 

 

870,935

Operating lease liabilities

 

 

160,521

 

 

155,469

Other non-current liabilities

 

 

65,104

 

 

84,887

Total liabilities

 

 

1,927,467

 

 

1,915,284

Shareholders' equity

 

 

1,558,712

 

 

1,641,712

Total liabilities and shareholders' equity

 

$

3,486,179

 

$

3,556,996

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended

 

 

September 30,

 

September 24,

 

 

2023

 

2022

Cash flows from operating activities:

 

 

 

 

 

 

Net earnings

 

$

110,828

 

 

$

213,043

 

Depreciation and amortization

 

 

73,638

 

 

 

72,803

 

Contribution to defined benefit pension plan

 

 

(15,259

)

 

 

(17,155

)

Impairment of long-lived assets

 

 

140,844

 

 

 

 

Gain on divestiture

 

 

(2,994

)

 

 

 

Change in working capital

 

 

(110,550

)

 

 

(96,995

)

Other

 

 

(5,639

)

 

 

12,030

 

Net cash flows provided by operating activities

 

 

190,868

 

 

 

183,726

 

 

 

 

 

 

 

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property, plant, and equipment

 

 

(71,233

)

 

 

(67,122

)

Proceeds from divestiture, net of cash divested

 

 

6,369

 

 

 

 

Proceeds from sale of assets

 

 

1,565

 

 

 

71

 

Proceeds from property damage insurance claims

 

 

6,770

 

 

 

 

Acquisitions, net of cash acquired

 

 

(31,839

)

 

 

(39,287

)

Other

 

 

(898

)

 

 

(108

)

Net cash flows used in investing activities

 

 

(89,266

)

 

 

(106,446

)

 

 

 

 

 

 

 

Cash flows from financing activities:

 

 

 

 

 

 

Proceeds from short-term borrowings

 

 

24,649

 

 

 

4,137

 

Payments on short-term borrowings

 

 

(27,290

)

 

 

(12,366

)

Proceeds from long-term borrowings

 

 

215,012

 

 

 

235,470

 

Principal payments on long-term borrowings

 

 

(109,335

)

 

 

(251,155

)

Proceeds from settlement of financial derivatives

 

 

 

 

 

2,243

 

Dividends paid

 

 

(36,983

)

 

 

(34,080

)

Dividends to noncontrolling interests

 

 

(662

)

 

 

 

Purchase of noncontrolling interests

 

 

 

 

 

(7,338

)

Purchase of treasury shares

 

 

(166,663

)

 

 

(20,491

)

Proceeds from exercises under stock plans

 

 

5,348

 

 

 

8,778

 

Other

 

 

(15,567

)

 

 

(4,341

)

Net cash flows used in financing activities

 

 

(111,491

)

 

 

(79,143

)

Effect of exchange rates on cash and cash equivalents

 

 

(2,951

)

 

 

(9,148

)

Net change in cash and cash equivalents

 

 

(12,840

)

 

 

(11,011

)

Cash and cash equivalents - beginning of year

 

 

185,406

 

 

 

177,232

 

Cash and cash equivalents - end of period

 

$

172,566

 

 

$

166,221

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF EFFECT OF ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands, except per share amounts)
(Unaudited)

The non-GAAP tables below disclose the impact of the impairment of long-lived assets, realignment charges, intangible asset amortization (Prospera), and stock-based compensation recognized for the Prospera employees on fiscal 2023 and 2022 results, as well as the impact of non-recurring tax benefit items on net earnings. 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.

We previously presented non-GAAP financial measures adjusted for Prospera intangible asset amortization and stock-based compensation recognized for the Prospera employees for a better investor understanding of Agriculture segment performance related to traditional segment products. The Company conducted its annual impairment testing of intangible asset value as of September 2, 2023 and significantly reduced the Prospera intangible asset value. Additionally, the board approved certain realignment plans subsequent to the third quarter of fiscal 2023 that significantly affected the compensation recognized for the Prospera employees. As a result of this, we do not consider our historical adjustments related to Prospera to arrive at non-GAAP financial measures to be relevant to investor understanding of third quarter and future segment performance.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

 

 

 

Thirty-nine

 

 

 

 

 

weeks ended

 

Diluted

 

weeks ended

 

Diluted

 

 

September

 

earnings (loss)

 

September

 

earnings per

 

 

30, 2023

 

per share1,2

 

30, 2023

 

share2

Net earnings (loss) attrib. to Valmont Industries, Inc. - as reported

 

$

(49,028

)

 

$

(2.32

)

 

$

114,888

 

 

$

5.40

 

Impairment of long-lived assets

 

 

140,844

 

 

 

6.67

 

 

 

140,844

 

 

 

6.62

 

Realignment charges

 

 

4,180

 

 

 

0.20

 

 

 

4,180

 

 

 

0.20

 

Prospera intangible asset amortization

 

 

 

 

 

 

 

 

3,290

 

 

 

0.15

 

Prospera stock-based compensation

 

 

 

 

 

 

 

 

4,278

 

 

 

0.20

 

Total adjustments, pre-tax

 

 

145,024

 

 

 

6.86

 

 

 

152,592

 

 

 

7.17

 

Tax effect of adjustments3

 

 

(5,432

)

 

 

(0.26

)

 

 

(6,524

)

 

 

(0.31

)

Non-recurring tax benefit items

 

 

(3,588

)

 

 

(0.17

)

 

 

(3,588

)

 

 

(0.17

)

Net earnings attributable to Valmont Industries, Inc. - adjusted

 

$

86,976

 

 

$

4.12

 

 

$

257,368

 

 

$

12.09

 

Average shares outstanding (000’s) - diluted

 

 

 

 

 

21,131

 

 

 

 

 

 

21,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen

 

 

 

 

Thirty-nine

 

 

 

 

 

weeks ended

 

Diluted

 

weeks ended

 

Diluted

 

 

September

 

earnings per

 

September

 

earnings per

 

 

24, 2022

 

share2

 

24, 2022

 

share2

Net earnings attributable to Valmont Industries, Inc. - as reported

 

$

72,112

 

 

$

3.34

 

 

$

210,531

 

 

$

9.77

 

Prospera intangible asset amortization

 

 

1,645

 

 

 

0.08

 

 

 

4,935

 

 

 

0.23

 

Prospera stock-based compensation

 

 

2,530

 

 

 

0.12

 

 

 

7,523

 

 

 

0.35

 

Total adjustments, pre-tax

 

 

4,175

 

 

 

0.19

 

 

 

12,458

 

 

 

0.58

 

Tax effect of adjustments3

 

 

(974

)

 

 

(0.05

)

 

 

(2,106

)

 

 

(0.10

)

Net earnings attributable to Valmont Industries, Inc. - adjusted

 

$

75,313

 

 

$

3.49

 

 

$

220,883

 

 

$

10.25

 

Average shares outstanding (000’s) - diluted

 

 

 

 

 

21,605

 

 

 

 

 

 

21,546

 

1In the third quarter of fiscal 2023, we reported a GAAP net loss. In periods in which we recognize a net loss, we exclude the impact of outstanding stock awards from the diluted loss per share calculation, as their inclusion would have an anti-dilutive effect. The adjusted diluted earnings per share calculation includes the impact of outstanding stock awards.

2Earnings (loss) per share includes rounding.

3The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
REGULATION G RECONCILIATION
(Dollars in thousands)
(Unaudited)

The non-GAAP tables below disclose the impacts of the impairment of long-lived assets, realignment charges, intangible asset amortization (Prospera) and stock-based compensation recognized for the Prospera employees on fiscal 2023 and 2022 results. 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.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 30, 2023

 

Operating Income (Loss) Reconciliation

 

Infrastructure

 

Agriculture

 

Other

 

Corporate

 

Consolidated

Operating income (loss) - as reported

 

$

103,401

 

$

(99,670

)

 

$

 

$

(27,921

)

 

$

(24,190

)

 

Impairment of long-lived assets

 

 

3,571

 

 

137,273

 

 

 

 

 

 

 

 

140,844

 

 

Realignment charges

 

 

1,069

 

 

907

 

 

 

 

 

2,204

 

 

 

4,180

 

 

Adjusted operating income

 

$

108,041

 

$

38,510

 

 

$

 

$

(25,717

)

 

$

120,834

 

 

Net sales - as reported

 

 

753,626

 

 

296,669

 

 

 

 

 

 

 

 

1,050,295

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income (loss) as a % of net sales

 

 

13.7

%

 

(33.6

)

%

 

NM

 

 

NM

 

 

 

(2.3

)

%

Adj. operating income as a % of adj. net sales

 

 

14.3

%

 

13.0

 

%

 

NM

 

 

NM

 

 

 

11.5

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 24, 2022

 

Operating Income Reconciliation

 

Infrastructure

 

Agriculture

 

Other

 

Corporate

 

Consolidated

Operating income - as reported

 

$

92,465

 

$

43,258

 

$

1,107

 

$

(26,858

)

 

$

109,972

 

Prospera intangible asset amortization

 

 

 

 

1,645

 

 

 

 

 

 

 

1,645

 

Prospera stock-based compensation

 

 

 

 

2,530

 

 

 

 

 

 

 

2,530

 

Adjusted operating income

 

$

92,465

 

$

47,433

 

$

1,107

 

$

(26,858

)

 

$

114,147

 

Net sales - as reported

 

 

750,380

 

 

324,141

 

 

22,861

 

 

 

 

 

1,097,382

 

Adjusted net sales

 

 

750,380

 

 

324,141

 

 

 

 

 

 

 

1,074,521

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of net sales

 

 

12.3

%

 

13.3

%

 

4.8

%

 

NM

 

 

 

10.0

%

Adj. operating income as a % of net sales

 

 

12.3

%

 

14.6

%

 

4.8

%

 

NM

 

 

 

10.4

%

Adj. operating income as a % of adj. net sales

 

 

12.3

%

 

14.6

%

 

NM

 

 

NM

 

 

 

10.6

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended September 30, 2023

 

Operating Income Reconciliation

 

Infrastructure

 

Agriculture

 

Other

 

Corporate

 

Consolidated

Operating income - as reported

 

$

313,703

 

$

2,904

 

$

 

$

(88,598

)

 

$

228,009

 

Impairment of long-lived assets

 

 

3,571

 

 

137,273

 

 

 

 

 

 

 

140,844

 

Realignment charges

 

 

1,069

 

 

907

 

 

 

 

2,204

 

 

 

4,180

 

Prospera intangible asset amortization

 

 

 

 

3,290

 

 

 

 

 

 

 

3,290

 

Prospera stock-based compensation

 

 

 

 

4,278

 

 

 

 

 

 

 

4,278

 

Adjusted operating income

 

$

318,343

 

$

148,652

 

$

 

$

(86,394

)

 

$

380,601

 

Net sales - as reported

 

 

2,253,924

 

 

905,148

 

 

 

 

 

 

 

3,159,072

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of net sales

 

 

13.9

%

 

0.3

%

 

NM

 

 

NM

 

 

 

7.2

%

Adj. operating income as a % of adj. net sales

 

 

14.1

%

 

16.4

%

 

NM

 

 

NM

 

 

 

12.0

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirty-nine weeks ended September 24, 2022

 

Operating Income Reconciliation

 

Infrastructure

 

Agriculture

 

Other

 

Corporate

 

Consolidated

Operating income - as reported

 

$

254,908

 

$

138,779

 

$

814

 

$

(70,968

)

 

$

323,533

 

Prospera intangible asset amortization

 

 

 

 

4,935

 

 

 

 

 

 

 

4,935

 

Prospera stock-based compensation

 

 

 

 

7,523

 

 

 

 

 

 

 

7,523

 

Adjusted operating income

 

$

254,908

 

$

151,237

 

$

814

 

$

(70,968

)

 

$

335,991

 

Net sales - as reported

 

 

2,144,669

 

 

1,002,118

 

 

66,947

 

 

 

 

 

3,213,734

 

Adjusted net sales

 

 

2,144,669

 

 

1,002,118

 

 

 

 

 

 

 

3,146,787

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating income as a % of net sales

 

 

11.9

%

 

13.8

%

 

1.2

%

 

NM

 

 

 

10.1

%

Adj. operating income as a % of net sales

 

 

11.9

%

 

15.1

%

 

1.2

%

 

NM

 

 

 

10.5

%

Adj. operating income as a % of adj. net sales

 

 

11.9

%

 

15.1

%

 

NM

 

 

NM

 

 

 

10.7

%

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
REGULATION G RECONCILIATION OF EXCLUDING OTHER SEGMENT NET SALES
(Dollars in thousands)
(Unaudited)

Excluding Other segment net sales from the third quarter and first three quarters of fiscal 2022, which we refer to in this reconciliation as “Adjusted Net Sales”, is a non-GAAP measure. The Other segment net sales were generated by the offshore wind energy structures business which was divested in December 2022. Adjusted Net Sales should not be considered in isolation or as a substitute for net earnings, cash flows from operations or other income or cash flow data prepared in accordance with GAAP, or as a measure of our operating performance or liquidity. The table below shows how Adjusted Net Sales is calculated from the Company’s Statements of Operations. Adjusted Net Sales is calculated as total net sales less Other segment net sales. Adjusted Net Sales allows investors to analyze our operating performance in light of the amount of net sales less net sales of a divested business.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

 

 

 

Thirty-nine weeks ended

 

 

 

 

 

September 30,

 

September 24,

 

Percent

 

September 30,

 

September 24,

 

Percent

 

 

2023

 

2022

 

Change

 

2023

 

2022

 

Change

Net sales

 

$

1,050,295

 

$

1,097,382

 

 

 

(4.3

)%

 

$

3,159,072

 

$

3,213,734

 

 

 

(1.7

)%

Less: Other segment net sales

 

 

 

 

(22,861

)

 

 

NM

 

 

 

 

 

(66,947

)

 

 

NM

 

Adjusted net sales

 

$

1,050,295

 

$

1,074,521

 

 

 

(2.3

)%

 

$

3,159,072

 

$

3,146,787

 

 

 

0.4

%

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
REGULATION G RECONCILIATION OF ADJUSTED EFFECTIVE TAX RATE
(Dollars in thousands)
(Unaudited)

Excluding significant non-recurring items from the third quarter of fiscal 2023 from the calculation of effective tax rate, which we refer to as “Adjusted Effective Tax Rate”, is a non-GAAP measure. Adjusted Effective Tax Rate should not be considered in isolation or as a substitute for the effective tax rate prepared in accordance with GAAP. The table below shows how Adjusted Effective Tax Rate is calculated from the Company’s Statements of Operations. Adjusted Effective Tax Rate is calculated as total earnings (loss) before income taxes plus the significant non-recurring items of impairment of goodwill and intangible assets, realignment charges, and non-recurring tax benefit items. Adjusted Effective Tax Rate allows investors to analyze our effective tax rate in light of these non-recurring items.

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended September 30, 2023

 

 

Earnings (loss) before income taxes and equity in loss of nonconsolidated subsidiaries

 

Income tax

expense

 

Effective tax

rate

As reported

 

$

(34,655

)

 

$

15,461

 

 

(44.6

)%

Impairment of long-lived assets

 

 

140,844

 

 

 

4,387

 

 

 

Realignment charges

 

 

4,180

 

 

 

1,045

 

 

 

Non-recurring tax benefit items

 

 

 

 

 

3,588

 

 

 

Adjusted

 

$

110,369

 

 

$

24,481

 

 

22.2

%

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
REGULATION G RECONCILIATION OF FORECASTED GAAP AND ADJUSTED EARNINGS
(Dollars in thousands, except per share amounts)
(Unaudited)

The non-GAAP tables below discloses the impact on the range of estimated diluted earnings per share of the (1) amortization of intangible assets (Prospera), (2) stock-based compensation for Prospera employees, (3) impairment of long-lived assets, (4) realignment charges, and (5) non-recurring tax benefit items. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings to be taken into consideration by management and investors with the related reported GAAP measures.

Reconciliation of Range of Net Earnings

 

 

 

 

 

 

 

 

 

 

2023 Revised Guidance1

 

Low End

 

High End

 

Adjustments

Estimated net earnings - GAAP

 

$

154,000

 

$

160,400

 

 

 

Impairment of long-lived assets, pre-tax

 

 

 

 

 

 

 

$

141,000

 

Realignment charges, pre-tax

 

 

 

 

 

 

 

 

36,000

 

Total pre-tax adjustments

 

 

 

 

 

 

 

 

177,000

 

Estimated tax benefit from above expenses2

 

 

 

 

 

 

 

 

(12,900

)

Non-recurring tax benefit items

 

 

 

 

 

 

 

 

(3,600

)

Total adjustments, after-tax

 

 

 

 

 

 

 

$

160,500

 

Estimated net earnings - Adjusted

 

$

314,500

 

$

320,900

 

 

 

Diluted Earnings per Share Range - GAAP3

 

$

7.20

 

$

7.50

 

 

 

Diluted Earnings per Share Range - Adjusted3

 

$

14.80

 

$

15.10

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 Previous Guidance1

 

Low End

 

High End

 

Adjustments

Estimated net earnings - GAAP

 

$

318,250

 

$

330,050

 

 

 

Prospera intangible asset (proprietary technology) amortization, pre-tax

 

 

 

 

 

 

 

$

6,600

 

Prospera stock-based compensation, pre-tax

 

 

 

 

 

 

 

 

9,800

 

Total pre-tax adjustments

 

 

 

 

 

 

 

 

16,400

 

Estimated tax benefit from above expenses2

 

 

 

 

 

 

 

 

(2,450

)

Total adjustments, after-tax

 

 

 

 

 

 

 

$

13,950

 

Estimated net earnings - Adjusted

 

$

332,200

 

$

344,000

 

 

 

Diluted Earnings per Share Range - GAAP3

 

$

14.80

 

$

15.35

 

 

 

Diluted Earnings per Share Range - Adjusted3

 

$

15.45

 

$

16.00

 

 

 

 

 

 

 

 

 

 

 

 

 

2023 Revised Previous Guidance1

 

Low End

 

High End

 

Adjustments

Estimated net earnings - GAAP

 

$

318,250

 

$

330,050

 

 

 

Prospera intangible asset (proprietary technology) amortization, pre-tax

 

 

 

 

 

 

 

$

 

Prospera stock-based compensation, pre-tax

 

 

 

 

 

 

 

 

 

Total pre-tax adjustments

 

 

 

 

 

 

 

 

 

Estimated tax benefit from above expenses2

 

 

 

 

 

 

 

 

 

Total adjustments, after-tax

 

 

 

 

 

 

 

$

 

Estimated net earnings - Adjusted

 

$

318,250

 

$

330,050

 

 

 

Diluted Earnings per Share Range - GAAP3

 

$

14.80

 

$

15.35

 

 

 

Diluted Earnings per Share Range - Adjusted3

 

$

14.80

 

$

15.35

 

 

 

1 See accompanying press release for our key assumptions

2 The tax effect of adjustments is calculated based on the estimated income tax rate in each applicable jurisdiction

3 Assumes weighted average shares outstanding of 21.3M for revised guidance and 21.5M for previous and revised previous guidance, and includes rounding

Source: Valmont Industries, Inc.