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.
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