Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2011.
Net sales in the fourth quarter were $147.0 million compared to net sales of $132.7 million in the fourth quarter of 2010, an increase of 11%. Net income for the quarter was $7.4 million, or $0.62 per diluted share, versus net income of $4.1 million, or $0.34 per diluted share in 2010. The 2011 results include the effect of the acquisition of Tenco which was completed in October 2011. They also include restructuring and non-cash items. Excluding the results of Tenco, a Gain on Bargain Purchase resulting from the acquisition, certain acquisition related to expenses, restructuring costs and an impairment charge relating to a write-down of goodwill in the Company’s European Division, which are more fully described below, our adjusted net sales for the quarter were $140.0 million and adjusted net income was $4.7 million, or $0.39 per diluted share.
The adjustments to the Company’s 2011 fourth quarter results referenced above include, on a pre-tax basis, net sales from Tenco of $7.0 million; an operating profit from Tenco of $0.3 million; acquisition costs related to Tenco of $0.6 million; a Gain on Bargain Purchase on the Tenco asset acquisition of $7.7 million; restructuring costs relating to a plant closure $0.9 million and a non-cash impairment charge of $1.9 million related to a write down of a portion of the goodwill in the Company’s European Division due to continued soft market conditions. In total, these adjustments for the fourth quarter amounted to a gain of $4.7 million on a pre-tax basis and $2.7 million, or $0.23 per diluted share, on an after-tax basis. A reconciliation of the non-GAAP financial measures discussed above and throughout this press release is included in the attached tables.
For the full year, net sales in 2011 were $603.6 million versus $538.5 million in 2010, an increase of 12%. Net income for the full year was $32.1 million, or $2.68 per diluted share, compared to $21.1 million, or $1.78 per diluted share in 2010, an increase of 52%. Excluding the effects of Tenco and the other adjustments in the 2011 fourth quarter referenced above, adjusted net sales for the full year were $596.6 million and adjusted net income was $29.4 million, or $2.45 per diluted share.