Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2012.
Net sales in the fourth quarter were $149.4 million compared to net sales of $147.0 million in the fourth quarter of 2011, an increase of 2%. Net income for the quarter was $4.2 million, or $0.35 per diluted share, versus net income of $8.0 million, or $0.67 per diluted share, in 2011. The 2012 results included the effect of a non-cash impairment charge of $0.7 million on a pretax basis, or $0.05 per diluted share on an after-tax basis, related to a write-down of goodwill in the Company’s European Division. The 2011 fourth quarter results reflected cash and non-cash items related to the acquisition of Tenco. These included acquisition expenses and 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. The 2011 results also included certain restructuring costs related to the consolidation of one of the Company’s facilities in South Dakota, and an impairment charge relating to a write-down of goodwill in the Company’s European Division. The net effect of the 2011 adjustments amounted to a gain of $5.3 million on a pre-tax basis, or $3.1 million, or $0.26 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.
Adjusting for the above referenced items, net income for the fourth quarter of 2012 was $4.9 million, or $0.40 per diluted share, compared to $4.9 million, or $0.41 per diluted share in 2011.
For the full year, net sales in 2012 were $628.4 million versus $603.6 million in 2011, an increase of 4%. Net sales for 2012 included the full year effect of Tenco, which was acquired in October 2011. Tenco contributed $28.4 million to net sales in 2012 and $7.0 million in 2011. Net income for the full year was $28.9 million, or $2.40 per diluted share, in 2012 compared to $32.7 million, or $2.73 per diluted share, in 2011. Adjusting for the items referenced above, net income for 2012 was $29.6 million, or $2.45 per diluted share, compared to $29.6 million, or $2.47 per diluted share in 2011.