This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
$1 buys you full access to ALL of TheStreet's Subscription Services! Learn More

Douglas Dynamics Announces Second Quarter 2013 Results

Stocks in this article: PLOW

Financial Statements

Douglas Dynamics, Inc.
Consolidated Balance Sheets
( In thousands)
     
     
  June 30, December 31,
  2013 2012
  (unaudited) (audited)
     
Assets    
Current assets:    
Cash and cash equivalents $ 2,084 $ 24,136
Accounts receivable, net  38,497  25,425
Inventories  42,407  30,292
Refundable income taxes paid  5,492  4,870
Deferred income taxes  3,659  3,710
Prepaid and other current assets  1,110  1,149
Total current assets  93,249  89,582
     
Property, plant, and equipment, net  25,168  19,887
Assets held for sale  1,085  1,732
Goodwill  114,044  107,222
Other intangible assets, net  125,712  116,548
Deferred financing costs, net  2,505  2,794
Other long-term assets  1,145  606
Total assets $ 362,908 $ 338,371
     
Liabilities and stockholders' equity    
Current liabilities:    
Accounts payable $ 3,701 $ 5,370
Accrued expenses and other current liabilities  12,058  10,329
Short term borrowings  28,000  -- 
Current portion of long-term debt  971  971
Total current liabilities  44,730  16,670
     
Retiree health benefit obligation  6,496  6,541
Pension obligation  14,428  14,401
Deferred income taxes  35,603  33,805
Deferred compensation  658  756
Long-term debt, less current portion  110,509  110,995
Other long-term liabilities   1,829  1,471
     
Total stockholders' equity  148,655  153,732
Total liabilities and stockholders' equity $ 362,908 $ 338,371
 
Douglas Dynamics, Inc.
Consolidated Statements of Operations and Comprehensive Income
(In thousands, except per share data)
         
  Three Month Period Ended Six Month Period Ended
  June 30, 2013 June 30, 2012 June 30, 2013 June 30, 2012
  (unaudited)    
         
         
Net sales $ 55,156 $ 65,499 $ 69,297 $ 74,059
Cost of sales  36,278  42,439  46,093  49,180
Gross profit  18,878  23,060  23,204  24,879
         
Selling, general, and administrative expense  6,097  5,707  12,007  10,337
Intangibles amortization  1,397  1,301  2,695  2,601
Impairment of assets held for sale  --   --   647  -- 
         
Income from operations  11,384  16,052  7,855  11,941
         
Interest expense, net (2,077) (2,178) (4,060) (4,223)
Other expense, net (46) (155) (77) (233)
Income before taxes  9,261  13,719  3,718  7,485
         
Income tax expense  3,352  4,747  1,213  2,780
         
Net income $ 5,909 $ 8,972 $ 2,505 $ 4,705
Less: Net income attributable to participating securities  88  94  34  32
Net income attributable to common shareholders $ 5,821 $ 8,878 $ 2,471 $ 4,673
         
Weighted average number of common shares outstanding:        
Basic  22,038,161 21,906,622  22,004,793  21,866,662
Diluted  22,064,053 21,962,098  22,049,996  21,985,974
         
Earnings per common share:        
Basic  $ 0.26  $ 0.41  $ 0.11  $ 0.21
Diluted  $ 0.26  $ 0.40  $ 0.11  $ 0.21
Cash dividends declared and paid per share  $ 0.21  $ 0.21  $ 0.42  $ 0.41
Comprehensive income  $ 6,279 $ 8,971  $ 2,914  $ 4,693
 
Douglas Dynamics, Inc.
Consolidated Statements of Cash Flows
(In thousands)
     
  Six Month Period Ended
  June 30, 2013 June 30, 2012
  (unaudited)
     
Operating activities    
Net income $ 2,505 $ 4,705
Adjustments to reconcile net income to net cash used in operating activities:    
Depreciation and amortization  4,149  4,003
Amortization of deferred financing costs and debt discount  378  565
Loss recognized on impairment of assets held for sale  647  -- 
Stock-based compensation  1,459  906
Provision for losses on accounts receivable 98  227
Deferred income taxes  1,849  2,539
Changes in operating assets and liabilities:    
Accounts receivable (12,566) (16,821)
Inventories (7,985) (8,820)
Prepaid and other assets and prepaid income taxes (1,091) (610)
Accounts payable (2,449) (527)
Accrued expenses and other current liabilities  583 (3,430)
Deferred compensation (156) (156)
Benefit obligations and other long-term liabilities 749  375
Net cash used in operating activities (11,830) (17,044)
     
Investing activities    
Capital expenditures (1,463) (1,016)
Proceeds from sale of equipment  --   80
Acquisition of Trynex  (26,734)  -- 
Net cash used in investing activities (28,197) (936)
     
Financing activities    
Shares withheld on restricted stock vesting paid for employees' taxes (160)  -- 
Dividends paid (9,290) (9,087)
Revolver borrowings  28,000  2,000
Repayment of long-term debt (575) (10,575)
Net cash provided by (used in) financing activities  17,975 (17,662)
Change in cash and cash equivalents (22,052) (35,642)
Cash and cash equivalents at beginning of year  24,136  39,432
Cash and cash equivalents at end of quarter $ 2,084 $ 3,790
 
Douglas Dynamics, Inc.
Net Income to Adjusted EBITDA reconciliation (unaudited)
(in thousands)
         
  Three month period ended June 30, Six month period ended June 30,
  2013 2012 2013 2012
         
Net income  $ 5,909  $ 8,972  $ 2,505  $ 4,705
         
Interest expense - net  2,077  2,178  4,060  4,223
Income tax expense  3,352  4,747  1,213  2,780
Depreciation expense  737  701  1,454  1,402
Amortization  1,397  1,301  2,695  2,601
EBITDA  13,472  17,899  11,927  15,711
         
Stock based compensation 524  541  1,459  906
Other charges (1)  374  1,110  1,220  1,122
Adjusted EBITDA  $ 14,370  $ 19,550  $ 14,606  $ 17,739
         
(1) Reflects expenses of $374 and $1,110 for one time, unrelated legal and consulting fees for the three months ended June 30, 2013 and June 30, 2012, respectively; expenses of $573 and $1,122 for one time, unrelated legal and consulting fees for the six months ended June 30, 2013 and June 30, 2012, respectively; and a write down of asset held for sale of $647 for the six months ended June 30, 2013.
 
Douglas Dynamics, Inc.
Reconciliation of Net Income to Adjusted Net Income
$ Millions, except share data
         
  Three month period ended June 30, Six month period ended June 30,
  2013 2012 2013 2012
Net Income (GAAP) $5.9 $9.0 $2.5 $4.7
Addback expenses, net of tax at 38.0% for 2013:        
 -Loss recognized on impairment of assets held for sale:  --   --   0.4  -- 
         
Adjusted Net Income (non-GAAP) $5.9 $9.0 $2.9 $4.7
         
Weighted average basic common shares outstanding  22,038,161 21,906,622  22,004,793 21,866,662
Weighted average common shares outstanding assuming dilution  22,064,053 21,962,098  22,049,996 21,985,974
         
Adjusted earnings per common share - basic  $ 0.26  $ 0.41  $ 0.13  $ 0.21
Adjusted earnings per common share - dilutive  $ 0.26  $ 0.40  $ 0.13  $ 0.21
CONTACT: For further information contact:
         Douglas Dynamics, Inc.
         Bob McCormick
         414-362-3868
         investorrelations@douglasdynamics.com

Douglas Dynamics, Inc. Logo

7 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,827.75 +12.81 0.07%
S&P 500 2,072.83 +5.80 0.28%
NASDAQ 4,787.3170 +29.0650 0.61%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs