Net sales were $55.2 million in the second quarter of 2013, compared to second quarter 2012 net sales of $65.5 million, a decrease of 15.8%. The Company attributes the decrease in sales to the expected shift in timing of pre-season order shipments toward the third quarter compared to the prior year 65/35 split between the second and third quarters.
Net income was $5.9 million, or $0.26 per diluted share based on weighted average shares of 22.1 million shares, in the second quarter of 2013 compared to net income of $9.0 million, or $0.40 per diluted share based on weighted average shares of 22.0 million shares, in the second quarter of 2012. The effective tax rate for the second quarter of 2013 was 36.2%. The estimated effective tax rate for full year 2013 is expected to be 38.0%.
The Company reported Adjusted EBITDA of $14.4 million in the second quarter of 2013 compared to Adjusted EBITDA of $19.6 million in the second quarter of 2012.
Acquisition of TrynEx AssetsAs previously reported, Douglas Dynamics completed the acquisition of substantially all of the assets of TrynEx, Inc. on May 6, 2013. TrynEx has historically generated approximately $20 million in revenues and $3.0 to $4.0 million in EBITDA annually. Based on historical trends, shipments during the first half of the year are typically lower than during the second half of the year. As previously stated, the acquisition is expected to be accretive to earnings per share on a full-year basis in 2014 and free cash flow positive on a stand-alone basis in 2014. Mr. Janik noted, "With the completion of the TrynEx deal in early May, we have added a great set of new products to our portfolio and a great team of people. In the past few months, we have made excellent progress integrating our back office operations with the TrynEx assets and are leveraging shared expertise across the business. We look forward to continuing to explore and expand these new growth channels across market adjacencies and expanding our reach to new geographies via the acquisition."
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