Douglas Dynamics Inc (PLOW) Q3 2023 Earnings: Net Sales Down 13.2%, Net Income Drops 56.3%
Net sales for Q3 2023 stood at $144.1 million, down 13.2% from Q3 2022
Net income for the quarter was $5.8 million, a decrease of 56.3% compared to the same period last year
Adjusted EBITDA for Q3 2023 was $17.3 million, down from $25.1 million in Q3 2022
The Work Truck Solutions segment saw an increase in net sales to $68.2 million, up from $57.9 million in Q3 2022
On October 31, 2023, Douglas Dynamics Inc (NYSE:PLOW), North Americas premier manufacturer and upfitter of work truck attachments and equipment, announced its financial results for the third quarter ended September 30, 2023. The company reported a decrease in net sales and net income compared to the same period last year, but saw improved results in its Solutions segment.
Financial Highlights
Net sales for the third quarter of 2023 were $144.1 million, down from $166.1 million in the same period last year. The company's net income for the quarter stood at $5.8 million, a significant decrease from $13.3 million in Q3 2022. The diluted EPS was $0.24, down from $0.56 in the same period last year. Adjusted EBITDA for the quarter was $17.3 million, compared to $25.1 million in Q3 2022.
Segment Performance
The Work Truck Attachments segment reported net sales of $75.9 million in Q3 2023, down from $108.2 million in Q3 2022. However, the Work Truck Solutions segment saw an increase in net sales to $68.2 million, up from $57.9 million in the same period last year.
Management Commentary
Bob McCormick, President, and CEO of Douglas Dynamics Inc (NYSE:PLOW), commented on the results,
While at first glance our results show negative comparisons to the same period last year in aggregate, there are plenty of positive elements to our results this quarter. Our Solutions segment produced much improved results, increasing the velocity of upfits moving through our facilities and starting to operate more effectively as we knew they could."
Outlook
Despite the challenges, the company remains optimistic about its future performance. Sarah Lauber, Executive Vice President and CFO, stated,
Based on new information regarding dealer inventories and retail activity in Attachments, we have decided it is prudent to adjust our guidance ranges. The good news is demand and backlog remain solid in the Solutions segment."
Financial Statements
The company's financial statements, including the Consolidated Balance Sheets, Consolidated Statements of Income, Consolidated Statements of Cash Flows, and Segment Disclosures, are available in the original earnings release.
Explore the complete 8-K earnings release (here) from Douglas Dynamics Inc for further details.
This article first appeared on GuruFocus.
