Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2010.
Net sales in the fourth quarter were $129.5 million compared to net sales of $112.8 million in the fourth quarter of 2009, an increase of 15%. Net income for the quarter was $4.1 million, or $0.34 per diluted share, versus net income of $9.5 million, or $0.83 per diluted share in 2009. These results include the effects of the acquisition of Bush Hog, which took place in October 2009 and contributed $19.1 million in incremental sales and $1.2 million in incremental net income during the 2010 fourth quarter. Results in the fourth quarter of 2009 reflected certain other restructuring and non-cash items including the interim results of Bush Hog, a Gain on Bargain Purchase as adjusted for a retrospective change based on post closing adjustments to the fair value of assets acquired and liabilities assumed as of the acquisition date, certain expenses incurred in connection with the acquisition and subsequent restructuring measures, and an impairment charge relating to a write-down of goodwill in the Company’s North American Industrial Division, all of which are more fully summarized in the non-GAAP financial reconciliation below. Excluding these items and the effects of the acquisition, our adjusted net income for the fourth quarter of 2010 was $2.9 million, or $0.29 per diluted share, versus $4.0 million, or $0.40 per diluted share in 2009.
For the full year, net sales in 2010 were $524.5 million versus $446.5 million in 2009, an increase of 17%. Net income for fiscal 2010 was $21.1 million, or $1.78 per diluted share, compared to $18.6 million, or $1.80 per diluted share in 2009. The full year results include the effects referenced above, as well as tax credits related to prior years’ research and development expenses which reduced the provision for income tax by $0.9 million. Without these factors, net sales for the 2010 fiscal year would have been $435.6 million and net income would have been $15.9 million, or $1.56 per diluted share. For the 2009 fiscal year, adjusting for the acquisition of Bush Hog and the other restructuring and non-cash charges and gains referenced above, net sales would have been $435.6 million and net income would have been $13.4 million, or $1.34 per diluted share.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV