Seguin, TX – Alamo Group Inc. has reported results for the fourth quarter and year ended December 31, 2021.
• Fourth quarter net sales of $337.2 million, up 16.8%
– Vegetation Management net sales up 27.4%
– Industrial Equipment net sales up 3.6%
• Record fourth quarter diluted EPS of $1.62, up 107.7%
• Record net sales for the full year of $1.3 billion, up 14.7%
• Record EBITDA for the full year 2021 of $162.1 million, up 16.4%(1)
• Record full year diluted EPS of $6.75; up 38.3% year-over-year
• Record backlog of $800.8 million at year-end 2021, up 126.2% versus prior year
• Completed the acquisition of Timberwolf Ltd. in the United Kingdom
The Vegetation Management Division (former Ag Division) had an excellent fourth quarter to cap off a strong performance in 2021. The Division’s fourth quarter net sales were $204.3 million, up 27.4% compared to $160.4 million for the same period in 2020. The increase in sales was driven by strong retail demand for forestry, tree care, and mowing products and lower dealer inventory levels.
Full year 2021 net sales in this Division were $812.7 million compared to $654.6 million for the full year of 2020, up 24.1%. The full-year increase in sales was primarily attributable to improved sales in the forestry, tree care, land clearing and agricultural mowing segments.
The Division’s income from operations for the fourth quarter 2021 was $18.1 million, up 211.9% compared to $5.8 million for the fourth quarter of 2020. Full year 2021 income from operations was $78.9 million versus $46.7 million for the full year 2020, an increase of 69.2%.
Complementing a very strong performance from its North American operations, this Division’s units in the United Kingdom, France, Brazil and Australia all contributed to the very positive results.
Results for the Quarter
At the beginning of the fourth quarter of 2021, the Company began reporting operating results on the basis of two new segments, namely, the Vegetation Management Division and the Industrial Equipment Division. The financial information and period to period comparisons we have presented in this release for 2021 and 2020 are based on the two new segments. Prior to the fourth quarter of 2021, the Company had been reporting its operating results on the basis of two segments which were the Industrial Division and Agricultural Division.
Fourth quarter 2021 net sales were $337.2 million compared to $288.6 million in the fourth quarter of 2020, an increase of 16.8%. Gross margin improved in the quarter compared to the fourth quarter of 2020 as pricing actions taken by the Company during 2021 began to offset the cost increases incurred in late 2020 and all of 2021. Fourth quarter net income improved 107.8% to $19.2 million, or $1.62 per diluted share, compared to net income of $9.3 million, or $0.78 per diluted share in the fourth quarter of 2020. The Company’s backlog at the end of the quarter was $800.8 million, an increase of $155.7 million, or 24.1%, from the backlog at the end of the third quarter, and up 126.2% from the prior year end.
The Company’s results for the fourth quarter continued to be materially impacted by persistent pandemic-related headwinds including supply chain disruptions, cost inflation, and skilled labor shortages.