MILWAUKEE, Jan. 8, 2013 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE:PLOW), the North American leader in the design, manufacture and sale of snow and ice control equipment for light trucks, today announced preliminary financial results for its fourth quarter and full-year 2012. Preliminary Full-Year 2012 Results Douglas Dynamics expects that its full-year 2012 revenue, earnings before interest, taxes, non-cash and other items ("Adjusted EBITDA") and diluted earnings per share will be lower than previously anticipated.
- Revenue for 2012 is expected to be approximately $140 million. Prior revenue guidance for the year was $160 million to $190 million.
- Adjusted EBITDA for the full year is expected to be approximately $30 million. Prior financial guidance for the year indicated Adjusted EBITDA in the range of $35 to $45 million.
- Diluted earnings per share for full-year 2012 are expected to be approximately $0.25 to $0.27 per share pending final effective tax rate calculations. Prior financial guidance for the year was $0.55 to $0.79.
Janik added, "Despite these short-term issues, the long-term fundamentals of our business remain strong and we continue to generate significant cash flows and maintain a strong financial position. As we manage through the trough, we are focused on maintaining and even improving our market position and the Company remains well capitalized to drive growth and innovation and return cash to shareholders.""While we did see a slow start to the snow season, we're encouraged by recent underlying weather patterns and, at this point in time, we anticipate average snowfall for the 2012/2013 season. It is worth noting that approximately 70% of a season's snowfall occurs after December and we're ready to capitalize on our improved operational efficiencies and leverage our vast distributor network as snowfall levels return towards normal. As we navigate through this difficult cycle, we have a continued focus on cost containment strategies and managing other factors that are within our control which we believe will allow us to emerge from the trough in a stronger position and with improved profitability." Preliminary Results for the Three Months Ended December 31, 2012
- Q4 2012 net sales are expected to be approximately $28 million
- Diluted earnings per share are expected to be a loss of approximately ($0.04) – ($0.06) per share
- Q4 2012 Adjusted EBITDA is expected to be approximately $4 million
- The Company estimates its cash on hand at the end of 2012 totaled $24 million
- The Company estimates that it generated free cash flow of approximately $14 million in 2012.
- The Company paid a quarterly dividend of $0.2075 per share on December 31, 2012 to stockholders of record as of the close of business on December 21, 2012.
- Launched a record number of new product development initiatives
- Achieved new record of 98.9% for perfect shipment delivery performance
- Improved base business profitability resulting in increased contribution margin per unit
- Record number of cost reduction projects implemented
- Procurement through global sourcing initiatives reached an all-time high
- Strengthened supplier partnerships by sharing lean expertise and conducting multi-day Kaizen improvement events in supplier factories worldwide
Douglas Dynamics Conference Call on Preliminary Financial ResultsA conference call will be held to discuss the preliminary financial results on Wednesday, January 9, 2013 at 7:30 a.m. Central Time and will be hosted by Jim Janik, President and Chief Executive Officer, and Bob McCormick, Executive Vice President and Chief Financial Officer. The conference call will be available via the following dial in numbers:
- U.S. Participants: Dial (877) 369-6591
- International Participants: Dial (253) 237-1176
- (855) 859-2056 – Domestic
- (404) 537-3406 – International
- Passcode: 86874307
Use of Non-GAAP Financial MeasuresThis press release contains financial information calculated other than in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"). These non-GAAP measures include:
- Adjusted EBITDA;
Consistent with Regulation G under the U.S. federal securities laws, the non-GAAP measures in this press release have been reconciled to the nearest GAAP measures, and this reconciliation is located under the headings "Estimated Net Income to Adjusted EBITDA Reconciliation" included in this press release.Financial Statement
|Douglas Dynamics, Inc.|
|Estimated Net Income to Adjusted EBITDA reconciliation (unaudited)|
|Twelve month period ended December 31,|
|Net income||$5.8 - 6.3|
|Interest expense - net||8.4|
|Income tax expense||3.8 - 4.4|
|EBITDA||$26.0 - 27.1|
|Stock based compensation||2.3|
|Adjusted EBITDA||$29.3 - 30.4|
CONTACT: For further information contact: Douglas Dynamics, Inc. Bob McCormick 414-362-3868 firstname.lastname@example.org