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PLOW - Douglas Dynamics Inc News Story

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Sector
Industrials
Size
Mid Cap
Market Cap £667.5m
Enterprise Value £798.5m
Revenue £370.0m
Position in Universe 3014th / 6938

Douglas Dynamics Reports First Quarter 2021 Results

Mon 3rd May, 2021 10:00pm
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First Quarter 2021 Highlights:
* Delivered Net Sales of $103.3 Million 
* Gross Profit Margin increased by 830 basis points compared to last year
* Recorded Net Income of $0.7 million, or $0.03 of Diluted EPS
* Adjusted EBITDA was $10.7 million, compared to $(1.7) million in 1Q20
* Reiterated 2021 guidance
* Paid $0.285 per share cash dividend on March 31, 2021
MILWAUKEE, May 03, 2021 (GLOBE NEWSWIRE) -- Douglas Dynamics, Inc. (NYSE:
PLOW), North America’s premier manufacturer and upfitter of work
truck attachments and equipment, today announced financial results for the
first quarter ended March 31, 2021.

“Both segments of our business produced admirable performances in the first
quarter,” noted Bob McCormick, President & CEO. “It is a remarkable
achievement by our teams to deliver record first quarter results just one year
from the start of the pandemic. While demand dynamics in both segments are
positive for 2021, we do expect future performance will be limited by supply
chain disruption, which is impacting the entire manufacturing sector. We are
reiterating our 2021 guidance and are pleased demand trends look more certain
today than a few months ago as we build backlog in our Solutions segment.”

Consolidated First Quarter 2021 Results

 $ in millions (except Margins & EPS)  Q1 2021  Q1 2020  
 Net Sales                             $103.3   $68.2    
 Gross Profit Margin                   25.4%    17.1%    
                                                         
 Income (Loss) from Operations         $3.6     $(8.2)   
 Net Income (Loss)                     $0.7     $(10.1)  
 Diluted EPS                           $0.03    $(0.44)  
                                                         
 Adjusted EBITDA                       $10.7    $(1.7)   
 Adjusted EBITDA Margin                10.3%    (2.5%)   
 Adjusted Net Income (Loss)            $1.2     $(7.8)   
 Adjusted Diluted EPS                  $0.04    $(0.34)  
* Consolidated first quarter 2021 Net Sales were 51% higher compared to the
same period last year, mainly driven by significant snowfall in many key
markets in February 2021, plus the stabilization of the broader economic
landscape.
* The first quarter of 2020 was significantly impacted by the emergence of the
pandemic and the associated facility shutdowns, lower shipment volumes, and
additional business disruptions.
* Income from Operations, Net Income, Adjusted EBITDA, and Adjusted Net Income
all were considerably higher, compared to the first quarter of 2020, as a
result of the higher volumes and the absence of any pandemic related facility
shutdowns during the first quarter 2021.
* Slightly offsetting these improvements was increased selling, general and
administrative expenses driven by incentive-based compensation based on
expected improved operating results.
* Gross Profit Margin and Adjusted EBITDA Margin were higher by 830 basis
points and 1280 basis points, respectively.
* Interest expense decreased $2.0 million due to a $1.5 million gain recorded
on non-cash swap adjustments in the current year, compared to a $1.4 million
loss last year. This decrease was slightly offset by higher cash interest paid
on our term loan of $0.8 million due to the increase in principal balance from
the June 8, 2020 refinancing.
Work Truck Attachments Segment First Quarter 2021 Results

 $ in millions (except Adjusted EBITDA Margin)  Q1 2021  Q1 2020  
 Net Sales                                      $42.0    $19.1    
 Adjusted EBITDA                                $8.2     $(2.1)   
 Adjusted EBITDA Margin                         19.6%    (10.9%)  
* Work Truck Attachment Net Sales for the first quarter of 2021 increased 119%
over the prior year, due to increased snowfall in key markets compared to the
first quarter of 2020 and the release of temporary pent-up demand from the
fourth quarter.
* During the six-month winter season from October 2020 to March 2021, there
were significant swings in snowfall amounts in key markets with December,
January, and March producing significantly below average snowfall, and
February delivering significantly above average snowfall. Overall, the season
ended slightly below average compared to the ten-year average.
* Adjusted EBITDA also increased considerably compared to the first quarter of
2021, driven by sales volumes. The company also experienced significant
facility shutdown costs in the first quarter of 2020 that impacted
profitability.
McCormick explained, “We experienced an unusual snow season, which ended
with snowfall totals that were slightly below average. Our outperformance this
quarter was driven by both increased parts and accessories sales, combined
with the release of temporary pent-up demand for plows from the fourth
quarter. As we begin the pre-season order period, we do anticipate that the
record first quarter results will have pulled some sales forward, negatively
impacting second and third quarter revenue.”

Work Truck Solutions Segment First Quarter 2021 Results

 $ in millions (except Adjusted EBITDA Margin)  Q1 2021  Q1 2020  
 Net Sales                                      $61.4    $49.1    
 Adjusted EBITDA                                $2.4     $0.4     
 Adjusted EBITDA Margin                         3.9%     0.7%     
* Work Truck Solutions Net Sales increased approximately 25% compared to the
corresponding period of last year, due to higher volumes plus the result of
the facility shutdowns that occurred during the first quarter of 2020, which
significantly impacted business activity and order shipments.
* Adjusted EBITDA increased by 500% and Adjusted EBITDA margin increased by
320 basis points as a result of higher volumes related to a return to more
normalized business activity.
* Order patterns throughout the segment have strengthened as the broader
economic environment has continued to stabilize.
“After an expected softening of orders in the back half of 2020, we are now
seeing improved order patterns for our municipal focused operations. The
demand trends at Dejana are strong as the improving general economic outlook
translates into orders for a wide variety of work trucks. As we look to the
rest of the year, our biggest challenge is supply chain disruption as the
global economy rebounds from the pandemic, causing shortages across many
sectors including work trucks. We are working hard to predict and adapt to
these challenges.”

Dividend & Liquidity
* A quarterly cash dividend of $0.285 per share of the Company’s common
stock was declared on February 22, 2021, and paid on March 31, 2021, to
stockholders of record as of the close of business on March 19, 2021.
* During the quarter, the Company paid down an additional $20 million in debt.
As of March 31, 2021, the company had $219.6 million of total debt, equating
to a net leverage ratio of 2.2x.
* Net Cash Provided by Operating Activities for the first quarter of 2021
increased to $24.1 million from cash used of $9.1 million in the first quarter
2020.
* Free Cash Flow for the first quarter of 2021 increased to $22.0 million from
$(11.4) million for the first quarter of 2020, and was mainly driven by the
higher sales volumes in addition to the absence of facility shutdown costs.
S-3 Filing
* Today, the Company also filed a shelf registration statement on Form S-3
with the Securities and Exchange Commission (SEC).
* The shelf registration statement is intended to afford the Company the
flexibility to finance future business or strategic growth opportunities by
accessing the capital markets on a timely and cost-effective basis.
* At the present time, the Company has no specific plans to issue securities
under the registration statement. The specifics of any future offering, along
with the prices and terms of any such securities and the use of proceeds of a
particular offering, will be determined at the time of any such offering and
will be described in a prospectus supplement filed with the SEC in connection
with such offering.
* Sarah Lauber, CFO, noted, “We believe that filing the registration
statement is a matter of good corporate governance to provide additional
flexibility around potential capital-raising plans. While there are no
specific plans to issue securities at this time, having it ready would help
streamline the process if it became desirable at some point in the future.”
Outlook

McCormick explained, “Despite the expectation that supply chain disruption
will persist throughout the year, we remain confident in our ability to
achieve our annual guidance and continue to position the Company to achieve
our long-term goals. We are encouraged by the overall demand signals in the
marketplace today and remain focused on executing on the factors within our
control while finding innovative ways to work around external challenges.”

The 2021 financial outlook remains unchanged:
* Net Sales are expected to be between $505 million and $565 million.
* Adjusted EBITDA is predicted to range from $75 million to $100 million.
* Adjusted Earnings Per Share are expected to be in the range of $1.20 per
share to $2.00 per share.
* The effective tax rate is expected to be approximately 25% to 26%.
* The outlook assumes relatively stable economic conditions and the
Company’s core markets will experience average snowfall levels in 4Q21.
Earnings Conference Call Information

The Company will host a conference call on Tuesday, May 4, 2021 at 10:00 a.m.
Eastern Time (9:00 a.m. Central Time). To join the conference call, please
dial (877) 369-6591 domestically, or (253) 237-1176 internationally.

The call will also be available via the Investor Relations section of the
Company’s website at www.douglasdynamics.com. For those who cannot listen to
the live broadcast, replays will be available for one week following the call.

About Douglas Dynamics

Home to the most trusted brands in the industry, Douglas Dynamics is North
America’s premier manufacturer and up-fitter of commercial work truck
attachments and equipment. For more than 70 years, the Company has been
innovating products that not only enable people to perform their jobs more
efficiently and effectively, but also enable businesses to increase
profitability. Through its proprietary Douglas Dynamics Management System
(DDMS), the Company is committed to continuous improvement aimed at
consistently producing the highest quality products, at industry-leading
levels of service and delivery that ultimately drive shareholder value. The
Douglas Dynamics portfolio of products and services is separated into two
segments: First, the Work Truck Attachments segment, which includes commercial
snow and ice control equipment sold under the FISHER®, SNOWEX® and WESTERN®
brands. Second, the Work Truck Solutions segment, which includes the up-fit of
market leading attachments and storage solutions under the HENDERSON® brand,
and the DEJANA® brand and its related sub-brands.

Use of Non-GAAP Financial Measures

This press release contains financial information calculated other than in
accordance with U.S. Generally Accepted Accounting Principles (“GAAP”).
The non-GAAP measures used in this press release are Adjusted EBITDA, Adjusted
Net Income and Adjusted Earnings Per Share, and Free Cash Flow. The Company
believes that these non-GAAP measures are useful to investors and other
external users of its consolidated financial statements in evaluating the
Company’s operating performance as compared to that of other companies.
Reconciliations of these non-GAAP measures to the nearest comparable GAAP
measures can be found immediately following the Consolidated Statements of
Cash Flows included in this press release.

Adjusted EBITDA represents net income (loss) before interest, taxes,
depreciation, and amortization, as further adjusted for certain charges
consisting of unrelated legal and consulting fees, stock-based compensation,
certain purchase accounting expenses, and incremental costs incurred related
to the COVID-19 pandemic. Such COVID-19 related costs include increased
expenses directly related to the pandemic, and do not include either
production related overhead inefficiencies or lost or deferred sales. We
believe these costs are out of the ordinary, unrelated to our business and not
representative of our results. The Company uses Adjusted EBITDA in evaluating
the Company’s operating performance because it provides the Company and its
investors with additional tools to compare its operating performance on a
consistent basis by removing the impact of certain items that management
believes do not directly reflect the Company’s core operations. The
Company’s management also uses Adjusted EBITDA for planning purposes,
including the preparation of its annual operating budget and financial
projections, and to evaluate the Company’s ability to make certain payments,
including dividends, in compliance with its senior credit facilities, which is
determined based on a calculation of “Consolidated Adjusted EBITDA” that
is substantially similar to Adjusted EBITDA.

Adjusted Net Income (Loss) and Adjusted Earnings (Loss) Per Share (calculated
on a diluted basis) represents net income (loss) and earnings (loss) per share
(as defined by GAAP), excluding the impact of stock-based compensation,
non-cash purchase accounting adjustments, certain charges related to unrelated
legal fees and consulting fees, incremental costs incurred related to the
COVID-19 pandemic, and adjustments on derivatives not classified as hedges,
net of their income tax impact. Such COVID-19 related costs include increased
expenses directly related to the pandemic, and do not include either
production related overhead inefficiencies or lost or deferred sales. We
believe these costs are out of the ordinary, unrelated to our business and not
representative of our results. Adjustments on derivatives not classified as
hedges are non-cash and are related to overall financial market conditions;
therefore, management believes such costs are unrelated to our business and
are not representative of our results. Management believes that Adjusted Net
Income (Loss) and Adjusted Earnings (Loss) Per Share are useful in assessing
the Company’s financial performance by eliminating expenses and income that
are not reflective of the underlying business performance.

Free Cash Flow is a non-GAAP financial measure that we define as net cash
provided by (used in) operating activities less capital expenditures. Free
Cash Flow should be evaluated in addition to, and not considered a substitute
for, other financial measures such as Net Income (Loss) and Net Cash Provided
by (Used in) Operating Activities. We believe that free cash flow represents
our ability to generate additional cash flow from our business operations.

Forward Looking Statements

This press release contains certain forward-looking statements within the
meaning of Section 21E of the Securities Exchange Act of 1934, as amended.
These statements include information relating to future events, future
financial performance, strategies, expectations, competitive environment,
regulation, product demand, the payment of dividends, and availability of
financial resources. These statements are often identified by use of words
such as “anticipate,” “believe,” “intend,” “estimate,”
“expect,” “continue,” “should,” “could,” “may,”
“plan,” “project,” “predict,” “will” and similar expressions
and include references to assumptions and relate to our future prospects,
developments, and business strategies. Such statements involve known and
unknown risks, uncertainties and other factors that could cause our actual
results, performance, or achievements to be materially different from any
future results, performance or achievements expressed or implied by these
forward-looking statements. Factors that could cause or contribute to such
differences include, but are not limited to, weather conditions, particularly
lack of or reduced levels of snowfall and the timing of such snowfall, our
ability to manage general economic, business and geopolitical conditions,
including the impacts of natural disasters, pandemics and outbreaks of
contagious diseases and other adverse public health developments, such as the
COVID-19 pandemic, our inability to maintain good relationships with our
distributors, our inability to maintain good relationships with the original
equipment manufacturers with whom we currently do significant business, lack
of available or favorable financing options for our end-users, distributors or
customers, increases in the price of steel or other materials, including as a
result of tariffs, necessary for the production of our products that cannot be
passed on to our distributors, increases in the price of fuel or freight, a
significant decline in economic conditions, the inability of our suppliers and
original equipment manufacturer partners to meet our volume or quality
requirements, inaccuracies in our estimates of future demand for our products,
our inability to protect or continue to build our intellectual property
portfolio, the effects of laws and regulations and their interpretations on
our business and financial condition, our inability to develop new products or
improve upon existing products in response to end-user needs, losses due to
lawsuits arising out of personal injuries associated with our products,
factors that could impact the future declaration and payment of dividends, our
inability to compete effectively against competition, our inability to achieve
the projected financial performance with the assets of Dejana Truck & Utility
Equipment Company, Inc., which we acquired in 2016, and unexpected costs or
liabilities related to such acquisitions or any future acquisitions, as well
as those discussed in the section entitled “Risk Factors” in our annual
report on Form 10-K for the year ended December 31, 2020 and any subsequent
Form 10-Q filings. You should not place undue reliance on these
forward-looking statements. In addition, the forward-looking statements in
this release speak only as of the date hereof and we undertake no obligation,
except as required by law, to update or release any revisions to any
forward-looking statement, even if new information becomes available in the
future.



Financial Statements

 Douglas Dynamics, Inc.                                                             
 Consolidated Balance Sheets                                                        
 (In thousands)                                                                     
                                                                                    
                                                                                    
                                                 March 31,        December 31,      
                                                 2021             2020              
                                                 (unaudited)      (unaudited)       
                                                                                    
 Assets                                                                             
 Current assets:                                                                    
 Cash and cash equivalents                       $       35,524   $        41,030   
 Accounts receivable, net                                45,149            83,195   
 Inventories                                             99,873            79,482   
 Inventories - truck chassis floor plan                  12,112            8,146    
 Prepaid and other current assets                        5,209             5,334    
 Total current assets                                    197,867           217,187  
                                                                                    
 Property, plant, and equipment, net                     64,402            64,320   
 Goodwill                                                113,134           113,134  
 Other intangible assets, net                            150,086           152,791  
 Operating lease - right of use asset                    20,404            21,441   
 Non-qualified benefit plan assets                       9,376             9,041    
 Other long-term assets                                  1,333             1,288    
 Total assets                                    $       556,602  $        579,202  
                                                                                    
 Liabilities and stockholders’ equity                                               
 Current liabilities:                                                               
 Accounts payable                                $       19,844   $        16,284   
 Accrued expenses and other current liabilities          27,363            30,831   
 Floor plan obligations                                  12,029            7,885    
 Operating lease liability - current                     4,359             4,326    
 Income taxes payable                                    4,588             5,214    
 Current portion of long-term debt                       1,459             1,666    
 Total current liabilities                               69,642            66,206   
                                                                                    
 Retiree benefits and deferred compensation              16,850            15,804   
 Deferred income taxes                                   27,005            26,681   
 Long-term debt, less current portion                    216,588           236,676  
 Operating lease liability - noncurrent                  16,380            17,434   
 Other long-term liabilities                             13,510            16,197   
                                                                                    
 Total stockholders’ equity                              196,627           200,204  
 Total liabilities and stockholders’ equity      $       556,602  $        579,202  





 Douglas Dynamics, Inc.                                                                                                                      
 Consolidated Statements of Income (Loss)                                                                                                    
 (In thousands, except share and per share data)                                                                                             
                                                                                                                                             
                                                                                         Three Month Period Ended                            
                                                                                         March 31, 2021            March 31, 2020            
                                                                                         (unaudited)                                         
                                                                                                                                             
                                                                                                                                             
 Net sales                                                                               $      103,342            $      68,190             
 Cost of sales                                                                                  77,090                    56,500             
 Gross profit                                                                                   26,252                    11,690             
                                                                                                                                             
 Selling, general, and administrative expense                                                   19,899                    17,149             
 Intangibles amortization                                                                       2,705                     2,738              
                                                                                                                                             
 Income (loss) from operations                                                                  3,648                     (8,197      )      
                                                                                                                                             
 Interest expense, net                                                                          (2,975      )             (5,040      )      
 Other expense, net                                                                             (8          )             (111        )      
 Income (loss) before taxes                                                                     665                       (13,348     )      
                                                                                                                                             
 Income tax benefit                                                                             (77         )             (3,262      )      
                                                                                                                                             
 Net income (loss)                                                                       $      742                $      (10,086     )      
                                                                                                                                             
 Weighted average number of common shares outstanding:                                                                                       
 Basic                                                                                          22,881,416                22,813,256         
 Diluted                                                                                        22,901,979                22,813,256         
                                                                                                                                             
 Earnings (loss) per share:                                                                                                                  
 Basic earnings (loss) per common share attributable to common shareholders              $      0.03               $      (0.44       )      
 Earnings (loss) per common share assuming dilution attributable to common shareholders  $      0.03               $      (0.44       )      
 Cash dividends declared and paid per share                                              $      0.29               $      0.28               





 Douglas Dynamics, Inc.                                                                                                                                                           
 Consolidated Statements of Cash Flows                                                                                                                                            
 (In thousands)                                                                                                                                                                   
                                                                                                                                                                                  
                                                                          Three Month Period Ended                                                                                
                                                                          March 31, 2021                                                                   March 31, 2020         
                                                                          (unaudited)                                                                                             
                                                                                                                                                                                  
 Operating activities                                                                                                                                                             
 Net income (loss)                                                        $                          742                                                   $      (10,086  )      
 Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:                                                                               
 Depreciation and amortization                                                                       5,013                                                        4,894           
 Amortization of deferred financing costs and debt discount                                          392                                                          303             
 Stock-based compensation                                                                            1,965                                                        1,368           
 Adjustments on derivatives not designated as hedges                                                 (1,454                     )                                 1,413           
 Provision for losses on accounts receivable                                                         179                                                          204             
 Deferred income taxes                                                                               324                                                          (1,250   )      
 Non-cash lease expense                                                                              1,036                                                        1,015           
 Earnout liability                                                                                   -                                                            (17      )      
 Changes in operating assets and liabilities, net of acquisitions:                                                                                                                
 Accounts receivable                                                                                 37,867                                                       39,014          
 Inventories                                                                                         (20,213                    )                                 (34,428  )      
 Prepaid assets, refundable income taxes paid and other assets                                       (254                       )                                 (2,119   )      
 Accounts payable                                                                                    3,347                                                        1,161           
 Accrued expenses and other current liabilities                                                      (4,094                     )                                 (7,334   )      
 Benefit obligations and other long-term liabilities                                                 (701                       )                                 (3,218   )      
 Net cash provided by (used in) operating activities                                                 24,149                                                       (9,080   )      
                                                                                                                                                                                  
 Investing activities                                                                                                                                                             
 Capital expenditures                                                                                (2,177                     )                                 (2,304   )      
 Net cash used in investing activities                                                               (2,177                     )                                 (2,304   )      
                                                                                                                                                                                  
 Financing activities                                                                                                                                                             
 Shares withheld on restricted stock vesting paid for employees’ taxes                               --                                                           (72      )      
 Dividends paid                                                                                      (6,790                     )                                 (6,487   )      
 Net revolver borrowings                                                                             --                                                           30,000          
 Repayment of long-term debt                                                                         (20,688                    )                                 (20,581  )      
 Net cash provided by (used in) financing activities                                                 (27,478                    )                                 2,860           
 Change in cash and cash equivalents                                                                 (5,506                     )                                 (8,524   )      
 Cash and cash equivalents at beginning of period                                                    41,030                                                       35,665          
 Cash and cash equivalents at end of period                               $                          35,524                                                $      27,141          
                                                                                                                                                                                  
 Non-cash operating and financing activities                                                                                                                                      
 Truck chassis inventory acquired through floorplan obligations           $                          16,225                                                $      6,215           











 Douglas Dynamics, Inc.                                                          
 Net Income (Loss) to Adjusted EBITDA reconciliation (unaudited)                 
 (In thousands)                                                                  
                             Three month period ended March 31,                  
                                    2021                         2020            
                                                                                 
 Net income (loss)           $      742                   $      (10,086  )      
                                                                                 
 Interest expense - net             2,975                        5,040           
 Income tax benefit                 (77     )                    (3,262   )      
 Depreciation expense               2,308                        2,156           
 Intangibles amortization           2,705                        2,738           
 EBITDA                             8,653                        (3,414   )      
                                                                                 
 Stock-based compensation           1,965                        1,368           
 COVID-19 (1)                       40                           317             
 Purchase accounting (2)            -                            (17      )      
 Other charges (3)                  -                            31              
 Adjusted EBITDA             $      10,658                $      (1,715   )      
                                                                                 
 (1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented. 
 (2) Reflects reversal of earn-out compensation acquired in conjunction with the acquisition of Henderson in the periods presented. 
 (3) Reflects unrelated legal and consulting fees for the periods presented.     





 Douglas Dynamics, Inc.                                                                                        
 Segment Disclosures (unaudited)                                                                               
 (In thousands)                                                                                                
                                                                                                               
                         Three Months Ended March 31, 2021           Three Months Ended March 31, 2020         
                                                                                                               
 Work Truck Attachments                                                                                        
 Net Sales               $             41,981                        $             19,120                      
 Adjusted EBITDA         $             8,239                         $             (2,076        )             
 Adjusted EBITDA Margin                19.6          %                             (10.9         %)            
                                                                                                               
 Work Truck Solutions                                                                                          
 Net Sales               $             61,361                        $             49,070                      
 Adjusted EBITDA         $             2,419                         $             361                         
 Adjusted EBITDA Margin                3.9           %                             0.7           %             









 Douglas Dynamics, Inc.                                                                                                                             
 Reconciliation of Net Income (Loss) to Adjusted Net Income (Loss) (unaudited)                                                                      
 (In thousands, except share and per share data)                                                                                                    
                                                                                         Three month period ended March 31,                         
                                                                                                2021                             2020               
                                                                                                                                                    
 Net income (loss)                                                                       $      742                       $      (10,086     )      
 Adjustments:                                                                                                                                       
 Stock based compensation                                                                       1,965                            1,368              
 COVID-19 (1)                                                                                   40                               317                
 Purchase accounting (2)                                                                        -                                (17         )      
 Adjustments on derivative not classified as hedge (3)                                          (1,454      )                    1,413              
 Other charges (4)                                                                              -                                31                 
 Tax effect on adjustments                                                                      (138        )                    (778        )      
 Adjusted net income (loss)                                                              $      1,155                     $      (7,752      )      
                                                                                                                                                    
 Weighted average basic common shares outstanding                                               22,881,416                       22,813,256         
 Weighted average common shares outstanding assuming dilution                                   22,901,979                       22,813,256         
                                                                                                                                                    
 Adjusted earnings (loss) per common share - dilutive                                    $      0.04                      $      (0.34       )      
                                                                                                                                                    
 GAAP diluted earnings (loss) per share                                                  $      0.03                      $      (0.44       )      
 Adjustments net of income taxes:                                                                                                                   
                                                                                                                                                    
 Stock based compensation                                                                       0.07                             0.04               
 COVID-19 (1)                                                                                   -                                0.01               
 Purchase accounting (2)                                                                        -                                -                  
 Adjustments on derivative not classified as hedge (3)                                          (0.06       )                    0.05               
 Other charges (4)                                                                              -                                -                  
                                                                                                                                                    
 Adjusted diluted earnings (loss) per share                                              $      0.04                      $      (0.34       )      
                                                                                                                                                    
 (1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented.                                                
 (2) Reflects reversal of earn-out compensation acquired in conjunction with the acquisition of Henderson in the periods presented.                 
 (3) Reflects non-cash mark-to-market and amortization adjustments on an interest rate swap not classified as a hedge for the periods presented.    
 (4) Reflects unrelated legal and consulting fees for the periods presented.                                                                        







 Douglas Dynamics, Inc.                                                                                      
 Free Cash Flow reconciliation (unaudited)                                                                   
 (In thousands)                                                                                              
                                                         Three month period ended March 31,                  
                                                                2021                         2020            
                                                                                                             
 Net cash provided by (used in) operating activities     $      24,149                $      (9,080   )      
 Acquisition of property and equipment                          (2,177  )                    (2,304   )      
 Free cash flow                                          $      21,972                $      (11,384  )      





For further information contact:
Douglas Dynamics, Inc.
Nathan Elwell
847-530-0249
investorrelations@douglasdynamics.com





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GlobeNewswire, Inc. 2021
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