Douglas Dynamics Announces Second Quarter 2010 Results
Inventory was $25.6 million at the end of the second quarter of 2010, a decrease of $4.4 million compared to the second quarter of 2009. This decrease in inventory reflects increased equipment shipments combined with lower production levels during the plant transition process.
Accounts receivable at the end of the second quarter of 2010 was $58.6 million, an increase of $4.9 million compared to the second quarter of 2009. The increase in accounts receivable reflects stronger equipment shipments in the second quarter of 2010 compared to the second quarter of 2009.
Subject to the approval of the Company's Board of Directors and in accordance with the restrictions in the Company's credit facilities, Douglas Dynamics currently intends to pay a quarterly dividend on its common stock, commencing during its third quarter of 2010 in equal quarterly installments at an initial annual rate of $0.73 per share.Outlook Based on second quarter results and current trends, the Company expects net sales for the full year 2010 to range from $175.0 million to $205.0 million and Adjusted EBITDA of $45.0 million to $55.0 million. It is important to note that the Company's outlook assumes that the economy will remain stable and that the snowbelt regions in North America will experience average snowfall in the Company's core markets. If economic conditions worsen and/or snowfall is below average the Company's net sales and Adjusted EBITDA for the full year could fall below the projected ranges. Mr. Janik concluded, "We are generally pleased with the way the first half of the year has unfolded. We maintained our focus on our pre-season sales period, which so far is progressing as planned. While we are pleased with the momentum building in our business and expect that the 2010 pre-season will be moderately stronger than last year, the pre-season sales results are not a perfect indicator of our full year results. We continue to see some caution on the part of our distributors based on overall concerns regarding the economy, but additional positive indicators such as the prior season's snowfall, our May field inventory and light truck sales are encouraging. With our more efficient operations and strong financial position, we believe we are well positioned to capitalize on the long-term pick-up in end-market demand."
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