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Douglas Dynamics Reports Second Quarter 2022 Results

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Douglas Dynamics, Inc.
Douglas Dynamics, Inc.

Performance Driven by Ongoing Strength of Work Truck Attachments Segment

Highlights:

  • Record Net Sales of $187.6 Million, a 19.1% increase compared to 2Q21

  • Net Income increased 25.7% to $17.7 million, or $0.75 of Diluted EPS

  • Adjusted EBITDA increased to $34.1 million

  • Narrowed 2022 guidance towards the middle

  • Paid $0.29 per share cash dividend on June 30, 2022

MILWAUKEE, Aug. 01, 2022 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE: PLOW), North America’s premier manufacturer and upfitter of work truck attachments and equipment, today announced financial results for the second quarter ended June 30, 2022.

Bob McCormick, President & CEO, stated, “We delivered strong top line growth overall this quarter when compared to the second quarter of 2021 despite the ongoing impact of supply chain constraints. While information from OEMs remains limited, we have begun to see slight improvements in the supply of some chassis recently and expect supply will slowly improve later in the second half of the year. We are pleased to report that demand signals remain strong in both segments today, with a strong pre-season sales period in Attachments and ongoing robust backlog for Solutions.”

Consolidated Second Quarter 2022 Results

$ in millions
(except Margins & EPS)

Q2 2022

Q2 2021

 

 

 

Net Sales

$187.6

$157.5

Gross Profit Margin

27.3%

31.0%

 

 

 

Income from Operations

$25.6

$24.1

Net Income

$17.7

$14.1

Diluted EPS

$0.75

$0.60

 

 

 

Adjusted EBITDA

$34.1

$33.5

Adjusted EBITDA Margin

18.2%

21.3%

Adjusted Net Income

$20.1

$21.3

Adjusted Diluted EPS

$0.85

$0.91


  • Consolidated second quarter 2022 Net Sales increased by $30.1 million, or 19.1%, compared to the same period last year, mainly driven by pricing adjustments in both segments and increased volume in Work Truck Attachments due to a strong start to pre-season.

  • Gross profit margins reflect the dilutive impact of price realization covering higher input costs as a result of inflation.

  • Selling, general, and administrative expenses increased $1.1 million to $23.0 million during the second quarter 2022, due to inflationary pressures on salaries and benefits, as well as a return to more normalized discretionary spending.

  • Interest expense decreased $1.9 million primarily due to lower interest paid on the term loan due to the decrease in principal balance from the June 9, 2021 refinancing.

  • The effective tax rate was 23.2% and 5.5% for the second quarters of 2022 and 2021, respectively. The rate was higher in 2Q22 due to a discrete tax benefit in the same period last year related to favorable income tax audit results.

Work Truck Attachments Segment Second Quarter 2022 Results

$ in millions
(except Adjusted EBITDA Margin)

Q2 2022

Q2 2021

Net Sales

$130.4

$104.6

Adjusted EBITDA

$33.6

$32.2

Adjusted EBITDA Margin

25.8%

30.8%


  • Work Truck Attachment Net Sales were a record $130.4 million for the second quarter of 2022, an increase of $25.7 million, or 24.6% over the prior year, due to strong pre-season orders leading to increased volumes and higher pricing compared to last year.

  • Adjusted EBITDA increased compared to the second quarter of 2021, while higher input costs were an impediment to margins.

Work Truck Solutions Segment Second Quarter 2022 Results

$ in millions
(except Adjusted EBITDA Margin)

Q2 2022

Q2 2021

Net Sales

$57.2

$52.9

Adjusted EBITDA

$0.5

$1.3

Adjusted EBITDA Margin

0.9%

2.5%


  • Work Truck Solutions Net Sales increased $4.3 million, or approximately 8%, compared to the corresponding period of last year, due to pricing increases and a more predictable but still constricted supply of Class 7-8 chassis.

  • Adjusted EBITDA continues to be impacted by constricted chassis supply and inflationary pressures on material, labor, and freight costs.

Dividend & Liquidity

  • A quarterly cash dividend of $0.29 per share of the Company's common stock was declared on June 6, 2022, and paid on June 30, 2022, to stockholders of record as of the close of business on June 17, 2022.

  • Net Cash Provided (Used) by Operating Activities for the first six months of 2022 decreased to $(58.2) million from cash provided of $13.1 million in the same period 2021.

  • Free Cash Flow for the first six months of 2022 decreased to $(63.8) million from $8.6 million for the same period 2021, largely due to higher accounts receivable attributable to the increase in sales, as well as higher inventory from increased material costs and pulling forward supply.

  • During the quarter, approximately 89,000 shares were repurchased at a cost of approximately $3.0 million.

Outlook

McCormick stated, “Based on our first half results and outlook for the second half of the year, we are narrowing our guidance ranges towards the middle. Demand for our products and services remains robust and we continue to drive operational improvements and expand our offerings in both segments to bolster our market leading positions. We remain poised to fully satisfy demand when external headwinds dissipate.”

The 2022 financial outlook has been narrowed as follows:

  • Net Sales are expected to be between $590 million and $630 million.

  • Adjusted EBITDA is predicted to range from $75 million to $95 million.

  • Adjusted Earnings Per Share are expected to be in the range of $1.40 per share to $2.00 per share.

  • The effective tax rate is expected to be approximately 25% to 26%.

  • The outlook assumes relatively stable economic conditions and the Company’s core markets will experience average snowfall levels in fourth quarter 2022.

Earnings Conference Call Information

The Company will host a conference call on Tuesday, August 2, 2022 at 10:00 a.m. Eastern Time (9:00 a.m. Central Time). To join the conference call, please dial (833) 634-5024 domestically, or (412) 902-4205 internationally.

The call will also be available via the Investor Relations section of the Company’s website at www.douglasdynamics.com. For those who cannot listen to the live broadcast, replays will be available for one week following the call.

About Douglas Dynamics

Home to the most trusted brands in the industry, Douglas Dynamics is North America’s premier manufacturer and up-fitter of commercial work truck attachments and equipment. For more than 75 years, the Company has been innovating products that not only enable people to perform their jobs more efficiently and effectively, but also enable businesses to increase profitability. Through its proprietary Douglas Dynamics Management System (DDMS), the Company is committed to continuous improvement aimed at consistently producing the highest quality products, at industry-leading levels of service and delivery that ultimately drive shareholder value. The Douglas Dynamics portfolio of products and services is separated into two segments: First, the Work Truck Attachments segment, which includes commercial snow and ice control equipment sold under the FISHER®, SNOWEX® and WESTERN® brands. Second, the Work Truck Solutions segment, which includes the up-fit of market leading attachments and storage solutions under the HENDERSON® brand, and the DEJANA® brand and its related sub-brands.

Use of Non-GAAP Financial Measures

This press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).  The non-GAAP measures used in this press release are Adjusted EBITDA, Adjusted Net Income and Adjusted Earnings Per Share, and Free Cash Flow.  The Company believes that these non-GAAP measures are useful to investors and other external users of its consolidated financial statements in evaluating the Company’s operating performance as compared to that of other companies.  Reconciliations of these non-GAAP measures to the nearest comparable GAAP measures can be found immediately following the Consolidated Statements of Cash Flows included in this press release.

Adjusted EBITDA represents net income before interest, taxes, depreciation, and amortization, as further adjusted for certain charges consisting of unrelated legal and consulting fees, stock-based compensation, severance, restructuring charges, certain purchase accounting expenses, and incremental costs incurred related to the COVID-19 pandemic. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales. We believe these costs are out of the ordinary, unrelated to our business and not representative of our results. The Company uses Adjusted EBITDA in evaluating the Company’s operating performance because it provides the Company and its investors with additional tools to compare its operating performance on a consistent basis by removing the impact of certain items that management believes do not directly reflect the Company’s core operations. The Company’s management also uses Adjusted EBITDA for planning purposes, including the preparation of its annual operating budget and financial projections, and to evaluate the Company’s ability to make certain payments, including dividends, in compliance with its senior credit facilities, which is determined based on a calculation of “Consolidated Adjusted EBITDA” that is substantially similar to Adjusted EBITDA.

Adjusted Net Income and Adjusted Earnings Per Share (calculated on a diluted basis) represents net income and earnings per share (as defined by GAAP), excluding the impact of stock-based compensation, severance, restructuring charges, non-cash purchase accounting adjustments, certain charges related to unrelated legal fees and consulting fees, incremental costs incurred related to the COVID-19 pandemic, and adjustments on derivatives not classified as hedges, net of their income tax impact. Such COVID-19 related costs include increased expenses directly related to the pandemic, and do not include either production related overhead inefficiencies or lost or deferred sales. We believe these costs are out of the ordinary, unrelated to our business and not representative of our results. Adjustments on derivatives not classified as hedges are non-cash and are related to overall financial market conditions; therefore, management believes such costs are unrelated to our business and are not representative of our results.  Management believes that Adjusted Net Income and Adjusted Earnings Per Share are useful in assessing the Company’s financial performance by eliminating expenses and income that are not reflective of the underlying business performance.

Free Cash Flow is a non-GAAP financial measure that we define as net cash provided by (used in) operating activities less capital expenditures.  Free Cash Flow should be evaluated in addition to, and not considered a substitute for, other financial measures such as Net Income and Net Cash Provided by (Used in) Operating Activities.  We believe that free cash flow represents our ability to generate additional cash flow from our business operations.

Forward Looking Statements

This press release contains certain forward-looking statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended. These statements include information relating to future events, future financial performance, strategies, expectations, competitive environment, regulation, product demand, the payment of dividends, and availability of financial resources. These statements are often identified by use of words such as "anticipate," "believe," "intend," "estimate," "expect," "continue," "should," "could," "may," "plan," "project," "predict," "will" and similar expressions and include references to assumptions and relate to our future prospects, developments, and business strategies. Such statements involve known and unknown risks, uncertainties and other factors that could cause our actual results, performance, or achievements to be materially different from any future results, performance or achievements expressed or implied by these forward-looking statements. Factors that could cause or contribute to such differences include, but are not limited to, weather conditions, particularly lack of or reduced levels of snowfall and the timing of such snowfall, including as a result of global climate change, our ability to manage general economic, business and geopolitical conditions, including the impacts of natural disasters, pandemics and outbreaks of contagious diseases and other adverse public health developments, such as the COVID-19 pandemic, our inability to maintain good relationships with our distributors, our inability to maintain good relationships with the original equipment manufacturers with whom we currently do significant business, lack of available or favorable financing options for our end-users, distributors or customers, increases in the price of steel or other materials, including as a result of tariffs or inflationary conditions, necessary for the production of our products that cannot be passed on to our distributors, increases in the price of fuel or freight, a significant decline in economic conditions, including as a result of global health epidemics such as COVID-19, the inability of our suppliers and original equipment manufacturer partners to meet our volume or quality requirements, inaccuracies in our estimates of future demand for our products, our inability to protect or continue to build our intellectual property portfolio, the effects of laws and regulations and their interpretations on our business and financial condition, our inability to develop new products or improve upon existing products in response to end-user needs, losses due to lawsuits arising out of personal injuries associated with our products, factors that could impact the future declaration and payment of dividends or out ability to execute repurchases under out stock repurchase program, our inability to compete effectively against competition, our inability to achieve the projected financial performance with the business of Henderson Enterprises Group, Inc., which we acquired in 2014, or the assets of Dejana Truck & Utility Equipment Company, Inc., which we acquired in 2016, and unexpected costs or liabilities related to such acquisitions or any future acquisitions, as well as those discussed in the section entitled “Risk Factors” in our annual report on Form 10-K for the year ended December 31, 2021 and any subsequent Form 10-Q filings. You should not place undue reliance on these forward-looking statements. In addition, the forward-looking statements in this release speak only as of the date hereof and we undertake no obligation, except as required by law, to update or release any revisions to any forward-looking statement, even if new information becomes available in the future.

Financial Statements


Douglas Dynamics, Inc.

 

Consolidated Balance Sheets

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

June 30,

December 31,

 

 

2022

2021

 

 

(unaudited)

(unaudited)

 

 

 

 

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

6,041

$

36,964

 

Accounts receivable, net

 

127,890

 

71,035

 

Inventories

 

131,518

 

104,019

 

Inventories - truck chassis floor plan

 

1,052

 

2,655

 

Refundable income taxes paid

 

-

 

1,222

 

Prepaid and other current assets

 

4,012

 

4,536

 

Total current assets

 

270,513

 

220,431

 

 

 

 

 

Property, plant, and equipment, net

 

66,171

 

66,787

 

Goodwill

 

113,134

 

113,134

 

Other intangible assets, net

 

136,849

 

142,109

 

Operating lease - right of use asset

 

16,152

 

18,462

 

Non-qualified benefit plan assets

 

8,726

 

10,347

 

Other long-term assets

 

1,939

 

1,206

 

Total assets

$

613,484

$

572,476

 

 

 

 

 

Liabilities and stockholders' equity

 

 

 

Current liabilities:

 

 

 

Accounts payable

$

18,092

$

27,375

 

Accrued expenses and other current liabilities

 

32,140

 

36,126

 

Floor plan obligations

 

1,052

 

2,655

 

Operating lease liability - current

 

4,416

 

4,623

 

Income taxes payable

 

3,848

 

-

 

Short term borrowings

 

58,000

 

-

 

Current portion of long-term debt

 

11,137

 

11,137

 

Total current liabilities

 

128,685

 

81,916

 

 

 

 

 

Retiree benefits and deferred compensation

 

15,750

 

17,170

 

Deferred income taxes

 

30,838

 

29,789

 

Long-term debt, less current portion

 

200,677

 

206,058

 

Operating lease liability - noncurrent

 

13,302

 

15,408

 

Other long-term liabilities

 

4,577

 

7,525

 

 

 

 

 

Total stockholders' equity

 

219,655

 

214,610

 

Total liabilities and stockholders' equity

$

613,484

$

572,476

 

 

 

 

 



Douglas Dynamics, Inc.

 

Consolidated Statements of Income

 

(In thousands, except share and per share data)

 

 

 

 

 

 

 

 

 

Three Month Period Ended

 

Six Month Period Ended

 

 

June 30, 2022

June 30, 2021

 

June 30, 2022

June 30, 2021

 

 

(unaudited)

 

(unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

$

187,561

 

$

157,530

 

 

$

290,162

 

$

260,872

 

 

Cost of sales

 

136,328

 

 

108,732

 

 

 

217,865

 

 

185,822

 

 

Gross profit

 

51,233

 

 

48,798

 

 

 

72,297

 

 

75,050

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expense

 

23,024

 

 

21,982

 

 

 

44,397

 

 

41,881

 

 

Intangibles amortization

 

2,630

 

 

2,705

 

 

 

5,260

 

 

5,410

 

 

 

 

 

 

 

 

 

Income from operations

 

25,579

 

 

24,111

 

 

 

22,640

 

 

27,759

 

 

 

 

 

 

 

 

 

Interest expense, net

 

(2,473

)

 

(4,372

)

 

 

(4,586

)

 

(7,347

)

 

Loss on extinguishment of debt

 

-

 

 

(4,936

)

 

 

-

 

 

(4,936

)

 

Other income (expense), net

 

(16

)

 

116

 

 

 

111

 

 

108

 

 

Income before taxes

 

23,090

 

 

14,919

 

 

 

18,165

 

 

15,584

 

 

 

 

 

 

 

 

 

Income tax expense

 

5,365

 

 

816

 

 

 

4,348

 

 

739

 

 

 

 

 

 

 

 

 

Net income

$

17,725

 

$

14,103

 

 

$

13,817

 

$

14,845

 

 

 

 

 

 

 

 

 

Weighted average number of common shares outstanding:

 

 

 

 

 

 

Basic

 

22,907,414

 

 

22,973,391

 

 

 

22,944,769

 

 

22,927,658

 

 

Diluted

 

22,907,414

 

 

22,985,233

 

 

 

22,947,352

 

 

22,943,836

 

 

 

 

 

 

 

 

 

Earnings per share:

 

 

 

 

 

 

Basic earnings per common share attributable to common shareholders

$

0.76

 

$

0.60

 

 

$

0.59

 

$

0.64

 

 

Earnings per common share assuming dilution attributable to common shareholders

$

0.75

 

$

0.60

 

 

$

0.58

 

$

0.63

 

 

Cash dividends declared and paid per share

$

0.29

 

$

0.29

 

 

$

0.58

 

$

0.57

 

 

 

 

 

 

 

 

 



Douglas Dynamics, Inc.

 

Consolidated Statements of Cash Flows

 

(In thousands)

 

 

 

 

 

 

Six Month Period Ended

 

 

June 30, 2022

June 30, 2021

 

 

(unaudited)

 

 

 

 

 

Operating activities

 

 

 

Net income

$

13,817

 

$

14,845

 

 

Adjustments to reconcile net income to net cash provided by (used) in operating activities:

 

 

 

Depreciation and amortization

 

10,393

 

 

10,213

 

 

Loss (Gain) on disposal of fixed asset

 

130

 

 

(57

)

 

Loss on extinguishment of debt

 

--

 

 

4,936

 

 

Amortization of deferred financing costs and debt discount

 

244

 

 

646

 

 

Stock-based compensation

 

5,053

 

 

6,020

 

 

Adjustments on derivatives not designated as hedges

 

(344

)

 

(849

)

 

Provision for losses on accounts receivable

 

50

 

 

347

 

 

Deferred income taxes

 

1,049

 

 

477

 

 

Non-cash lease expense

 

2,310

 

 

1,681

 

 

Changes in operating assets and liabilities, net of acquisitions:

 

 

 

Accounts receivable

 

(56,905

)

 

(9,279

)

 

Inventories

 

(27,499

)

 

(14,155

)

 

Prepaid assets, refundable income taxes paid and other assets

 

2,634

 

 

(475

)

 

Accounts payable

 

(8,350

)

 

2,929

 

 

Accrued expenses and other current liabilities

 

(139

)

 

(2,851

)

 

Benefit obligations and other long-term liabilities

 

(647

)

 

(1,287

)

 

Net cash provided by (used in) operating activities

 

(58,204

)

 

13,141

 

 

 

 

 

 

Investing activities

 

 

 

Capital expenditures

 

(5,580

)

 

(4,586

)

 

Net cash used in investing activities

 

(5,580

)

 

(4,586

)

 

 

 

 

 

Financing activities

 

 

 

Repurchase of common stock

 

(6,001

)

 

--

 

 

Payments of financing costs

 

--

 

 

(1,281

)

 

Borrowings on long-term debt

 

--

 

 

224,438

 

 

Dividends paid

 

(13,514

)

 

(13,254

)

 

Net revolver borrowings

 

58,000

 

 

--

 

 

Repayment of long-term debt

 

(5,624

)

 

(244,313

)

 

Net cash provided by (used in) financing activities

 

32,861

 

 

(34,410

)

 

Change in cash and cash equivalents

 

(30,923

)

 

(25,855

)

 

Cash and cash equivalents at beginning of period

 

36,964

 

 

41,030

 

 

Cash and cash equivalents at end of period

$

6,041

 

$

15,175

 

 

 

 

 

 

Non-cash operating and financing activities

 

 

 

Truck chassis inventory acquired through floorplan obligations

$

1,303

 

$

26,056

 

 

 

 

 

 


Douglas Dynamics, Inc.

 

Net Income to Adjusted EBITDA reconciliation (unaudited)

 

(In thousands)

 

 

 

 

 

Three month period ended June 30,

 

Six month period ended June 30,

 

 

 

 

2022

 

 

2021

 

 

 

2022

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Net income

 

$

17,725

 

$

14,103

 

 

$

13,817

 

$

14,845

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense - net

 

 

2,473

 

 

4,372

 

 

 

4,586

 

 

7,347

 

 

Income tax expense

 

 

5,365

 

 

816

 

 

 

4,348

 

 

739

 

 

Depreciation expense

 

 

2,574

 

 

2,495

 

 

 

5,133

 

 

4,803

 

 

Intangibles amortization

 

 

2,630

 

 

2,705

 

 

 

5,260

 

 

5,410

 

 

EBITDA

 

 

30,767

 

 

24,491

 

 

 

33,144

 

 

33,144

 

 

 

 

 

 

 

 

 

 

 

 

Stock-based compensation

 

 

3,153

 

 

4,055

 

 

 

5,053

 

 

6,020

 

 

Loss on extinguishment of debt

 

 

-

 

 

4,936

 

 

 

-

 

 

4,936

 

 

COVID-19 (1)

 

 

12

 

 

15

 

 

 

32

 

 

55

 

 

Other charges (2)

 

 

170

 

 

(6

)

 

 

509

 

 

(6

)

 

Adjusted EBITDA

 

$

34,102

 

$

33,491

 

 

$

38,738

 

$

44,149

 

 

 

 

 

 

 

 

 

 

 

 

(1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented.

 

(2) Reflects unrelated legal, severance, restructuring and consulting fees for the periods presented.

 

 

 


Douglas Dynamics, Inc.

 

Segment Disclosures (unaudited)

 

(In thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended June 30, 2022

 

Three Months Ended June 30, 2021

 

Six Months Ended
June 30, 2022

 

Six Months Ended
June 30, 2021

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Work Truck Attachments

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

130,364

 

$

104,638

 

$

176,140

 

$

146,619

 

Adjusted EBITDA

$

33,589

 

$

32,177

 

$

36,633

 

$

40,416

 

Adjusted EBITDA Margin

 

25.8%

 

 

30.8%

 

 

20.8%

 

 

27.6%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Work Truck Solutions

 

 

 

 

 

 

 

 

 

 

 

 

Net Sales

$

57,197

 

$

52,892

 

$

114,022

 

$

114,253

 

Adjusted EBITDA

$

513

 

$

1,314

 

$

2,105

 

$

3,733

 

Adjusted EBITDA Margin

 

0.9%

 

 

2.5%

 

 

1.8%

 

 

3.3%

 

 

 

 

 

 

 

 

 

 

 

 

 

 


Douglas Dynamics, Inc.

 

Reconciliation of Net Income to Adjusted Net Income (unaudited)

 

(In thousands, except share and per share data)

 

 

 

 

Three month period ended June 30,

 

 

Six month period ended June 30,

 

 

 

2022

 

 

 

2021

 

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

 

 

Net income

$

17,725

 

 

$

14,103

 

 

 

$

13,817

 

 

$

14,845

 

 

Adjustments:

 

 

 

 

 

 

 

 

 

Stock based compensation

 

3,153

 

 

 

4,055

 

 

 

 

5,053

 

 

 

6,020

 

 

Loss on extinguishment of debt

 

-

 

 

 

4,936

 

 

 

 

-

 

 

 

4,936

 

 

COVID-19 (1)

 

12

 

 

 

15

 

 

 

 

32

 

 

 

55

 

 

Adjustments on derivative not classified as hedge (2)

 

(172

)

 

 

605

 

 

 

 

(344

)

 

 

(849

)

 

Other charges (3)

 

170

 

 

 

(6

)

 

 

 

509

 

 

 

(6

)

 

Tax effect on adjustments

 

(791

)

 

 

(2,401

)

 

 

 

(1,312

)

 

 

(2,539

)

 

Adjusted net income

$

20,097

 

 

$

21,307

 

 

 

$

17,755

 

 

$

22,462

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average basic common shares outstanding

 

22,907,414

 

 

 

22,973,391

 

 

 

 

22,944,769

 

 

 

22,927,658

 

 

Weighted average common shares outstanding assuming dilution

 

22,907,414

 

 

 

22,985,233

 

 

 

 

22,947,352

 

 

 

22,943,836

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted earnings per common share - dilutive

$

0.85

 

 

$

0.91

 

 

 

$

0.75

 

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

GAAP diluted earnings per share

$

0.75

 

 

$

0.60

 

 

 

$

0.58

 

 

$

0.63

 

 

Adjustments net of income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Stock based compensation

 

0.10

 

 

 

0.14

 

 

 

 

0.17

 

 

 

0.19

 

 

Loss on extinguishment of debt

 

-

 

 

 

0.16

 

 

 

 

-

 

 

 

0.16

 

 

COVID-19 (1)

 

-

 

 

 

-

 

 

 

 

-

 

 

 

-

 

 

Adjustments on derivative not classified as hedge (2)

 

(0.01

)

 

 

0.01

 

 

 

 

(0.01

)

 

 

(0.03

)

 

Other charges (3)

 

0.01

 

 

 

-

 

 

 

 

0.00

 

 

 

-

 

 

 

 

 

 

 

 

 

 

 

 

Adjusted diluted earnings per share

$

0.85

 

 

$

0.91

 

 

 

$

0.75

 

 

$

0.95

 

 

 

 

 

 

 

 

 

 

 

 

(1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented.

 

 

(2) Reflects non-cash mark-to-market and amortization adjustments on an interest rate swap not classified as a hedge for the periods presented.

 

 

(3) Reflects unrelated legal, severance, restructuring and consulting fees for the periods presented.

 

 

 

 

 

 

 

 

 

 

 

 



Douglas Dynamics, Inc.

Free Cash Flow reconciliation (unaudited)

(In thousands)

 

 

 

Three month period ended June 30,

 

Six month period ended June 30,

 

 

 

2022

 

 

 

2021

 

 

 

2022

 

 

 

2021

 

 

 

 

 

 

 

 

 

 

Net cash provided by (used in) operating activities

 

$

(32,211

)

 

$

(11,008

)

 

$

(58,204

)

 

$

13,141

 

Acquisition of property and equipment

 

(3,382

)

 

 

(2,409

)

 

 

(5,580

)

 

 

(4,586

)

Free cash flow

 

$

(35,593

)

 

$

(13,417

)

 

$

(63,784

)

 

$

8,555

 

 

For further information contact:
Douglas Dynamics, Inc.
Nathan Elwell
847-530-0249
investorrelations@douglasdynamics.com