Douglas Dynamics Inc logo

PLOW - Douglas Dynamics Inc News Story

$44.65 0.6  1.5%

Last Trade - 07/05/21

Sector
Industrials
Size
Mid Cap
Market Cap £733.6m
Enterprise Value £864.2m
Revenue £368.8m
Position in Universe 2850th / 6858

Douglas Dynamics Reports Fourth Quarter and Full Year 2020 Results

Mon 22nd February, 2021 11:15pm
For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20210222:nGNX88X8ck&default-theme=true


Strong Conclusion to Challenging Year; Well-Positioned for Long-Term Success

Fourth Quarter 2020 Highlights:
* Produced Net Sales of $158.2 Million
* Gross Profit Margin increased by approximately 130 basis points over fourth
quarter last year
* Net Income of $18.2 million increased 57% compared to fourth quarter 2019
* Adjusted EBITDA was $33.2 million, compared to $29.9 million in 4Q19 and
Adjusted EBITDA margin increased by approximately 230 basis points Announced
quarterly dividend increase to $0.285 per share for 2021 first quarter
MILWAUKEE, Feb. 22, 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
fourth quarter and full year ended December 31, 2020.

“We are pleased with how our team stepped up and performed, driving strong
fourth quarter results to end what was a challenging year for many reasons,”
explained Bob McCormick, President and CEO. “Today, we are realistic
regarding both the unpredictable economic environment and potential for
additional pandemic disruption, and remain optimistic about the potential for
improved conditions and performance in 2021.”

Consolidated Fourth Quarter 2020 Results

 $ in millions (except Margins & EPS)  Q4 2020  Q4 2019  
 Net Sales                             $158.2   $160.3   
 Gross Profit Margin                   30.2%    28.9%    
                                                         
 Income from Operations                $27.9    $25.0    
 Net Income                            $18.2    $11.6    
 Diluted EPS                           $0.78    $0.50    
                                                         
 Adjusted EBITDA                       $33.2    $29.9    
 Adjusted EBITDA Margin                21.0%    18.7%    
 Adjusted Net Income                   $18.2    $16.7    
 Adjusted Diluted EPS                  $0.78    $0.72    
* Fourth quarter Net Sales were slightly down compared to last year due to
supply chain constraints at Work Truck Solutions early in the quarter,
somewhat offset by increased sales at Attachments due to strength in early
retail activity.
* Despite lower Net Sales, most other financial metrics improved when compared
to fourth quarter 2019 due to early season snowfall in certain core markets
positively impacting the Attachments segment and reduced discretionary
spending, normalized class 7-8 chassis delivery, and DDMS initiatives
positively impacting the Solutions segment.
* Gross Profit Margin and Adjusted EBITDA margin were 130 basis points and 230
basis points higher for the quarter compared to last year, respectively.
* Net Income was 57% higher than the corresponding quarter of 2019.
Work Truck Attachments Segment Fourth Quarter 2020 Results

 $ in millions (except Adjusted EBITDA Margin)  Q4 2020  Q4 2019  
 Net Sales                                      $83.0    $79.9    
 Adjusted EBITDA                                $24.0    $21.3    
 Adjusted EBITDA Margin                         28.9%    26.7%    
* Net Sales increased approximately 4% and Adjusted EBITDA increased
approximately 13% over the prior year, due primarily to the strong retail
activity, early season snowfall in certain core markets positively impacting
reorder activity, as well as reduced discretionary spending under our income
protection plan despite pandemic-related disruption.
Work Truck Solutions Segment Fourth Quarter 2020 Results

 $ in millions (except Adjusted EBITDA Margin)  Q4 2020  Q4 2019  
 Net Sales                                      $75.2    $80.4    
 Adjusted EBITDA                                $9.2     $8.6     
 Adjusted EBITDA Margin                         12.2%    10.7%    
* Net Sales declined approximately 6% compared to the prior year, mainly
attributable to reduced business activity due to pandemic related disruption
in the supply chain.
* Despite lower net sales for the segment and pandemic-related disruption,
Adjusted EBITDA increased by 7% over the prior year, while Adjusted EBITDA
Margin increased by 150 basis points due to normalized class 7-8 chassis
delivery, reduced discretionary spending and the impact of DDMS.
Consolidated Full Year 2020 Results

 $ in millions (except Margins & EPS)  FY 2020  FY 2019  
 Net Sales                             $480.2   $571.7   
 Gross Profit Margin                   26.7%    29.5%    
                                                         
 Income from Operations                $(75.1)  $86.6    
 Net Income                            $(86.6)  $49.2    
 Diluted EPS                           $(3.81)  $2.11    
                                                         
 Adjusted EBITDA                       $74.9    $108.1   
 Adjusted EBITDA Margin                15.6%    18.9%    
 Adjusted Net Income                   $27.8    $56.3    
 Adjusted Diluted EPS                  $1.18    $2.42    
* Full year Net Sales decreased by approximately 16% compared to record net
sales in 2019 due primarily to lower volumes driven by two consecutive seasons
of below average snowfall, inconsistent class 4-6 chassis supply, and
pandemic-related disruption.
* The Company recorded a Net Loss of $86.6 million in 2020, compared to full
year Net Income of $49.2 million in 2019, due to an impairment charge of
$127.9 million related to the goodwill impairment that was recorded in the
second quarter of 2020.
* Adjusted Net Income for the year was $27.8 million, compared to $56.3
million in the prior year. Adjusted EBITDA was $74.9 million, compared to
$108.1 million in the prior year. Both decreases were primarily driven by
lower volumes, partially offset by lower discretionary spending.
* Interest expense increased to $20.2 million, compared to $16.8 million in
the prior year due to non-cash mark-to-market and amortization adjustments on
an interest rate swap not accounted for as a hedge and higher interest paid on
a term loan from the increase in principal balance, slightly offset by lower
short-term borrowing on our revolving line of credit.
* The effective tax rate (benefit) was (12.4%), lower than 21.5% last year due
to the impairment of nondeductible goodwill taken in the second quarter.
Work Truck Attachments Segment Full Year 2020 Results

 $ in millions (except Adjusted EBITDA Margin)  FY 2020  FY 2019  
 Net Sales                                      $252.8   $293.6   
 Adjusted EBITDA                                $62.5    $80.7    
 Adjusted EBITDA Margin                         24.7%    27.5%    
* Net Sales for Work Truck Attachments were $252.8 million for the year,
compared to $293.6 million in the prior year. The decrease was primarily
driven by below average snowfall for the season ending in March 2020.
* Adjusted EBITDA for the segment was $62.5 million, compared to $80.7 million
during the prior year, lower as a result of the lower volumes.
Work Truck Solutions Segment Full Year 2020 Results

 $ in millions (except Adjusted EBITDA Margin)  FY 2020  FY 2019  
 Net Sales                                      $227.3   $278.1   
 Adjusted EBITDA                                $12.4    $27.4    
 Adjusted EBITDA Margin                         5.4%     9.8%     
* Net Sales for Work Truck Solutions were $227.3 million, compared to $278.1
million in the prior year. The decline was primarily due to class 4-6 chassis
supply constraints and pandemic related disruption. 
* Adjusted EBITDA declined to $12.4 million from $27.4 million in the prior
year due to the lower volumes, slightly offset by lower spending through our
income protection plan.
Dividend & Liquidity
* A quarterly cash dividend of $0.28 per share of the Company's common stock
was declared on December 3, 2020, and paid on December 31, 2020, to
stockholders of record as of the close of business on December 18, 2020.
* In addition, the Company’s Board of Directors approved and declared a
quarterly cash dividend of $0.285 per share for the first quarter of 2021. The
declared dividend will be 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 $30 million in debt.
* Net Cash Provided by Operating Activities for 2020 decreased to $53.4
million from $77.3 million during 2019. Free Cash Flow for full year 2020
decreased to $38.9 million from $65.8 million for full year 2019; the
reduction was mainly driven by lower operating results.
* Free Cash flow for the full year 2020 was $38.9 million, which well exceeded
the dividend paid during 2020 of $25.9 million.
Outlook

McCormick noted, “We are confident we’ll exit the pandemic stronger than
we entered it. 2021 will still present challenges, especially in the first
half of the year, driven by a number of external factors. If the economic
environment and pandemic conditions stabilize and continue to slowly improve,
we feel confident we can improve upon our 2020 results and position ourselves
to meet our long-term profitable growth objectives.”

The 2021 financial outlook is as follows:
* 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 pandemic
restrictions, and that Company’s core markets will experience average
snowfall levels.
Earnings Conference Call Information

The Company will host a conference call on Tuesday, February 23, 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, pension termination costs,
stock-based compensation, certain purchase accounting expenses, impairment
charges, expenses related to debt modifications, 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 and Adjusted Earnings 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, pension
termination costs, non-cash purchase accounting adjustments, impairment
charges, expenses related to debt modifications, 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 and Adjusted Earnings 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.

With respect to the Company’s 2021 guidance, the Company is not able to
provide a reconciliation of the non-GAAP financial measures to GAAP because it
does not provide specific guidance for the various extraordinary,
nonrecurring, or unusual charges and other certain items. These items have not
yet occurred, are out of the Company’s control and/or cannot be reasonably
predicted. As a result, reconciliation of the non-GAAP guidance measures to
GAAP is not available without unreasonable effort and the Company is unable to
address the probable significance of the unavailable information.

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, 2019 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)                                                                      
                                                                                     
                                                                                     
                                                 December 31,      December 31,      
                                                 2020              2019              
                                                 (unaudited)       (unaudited)       
                                                                                     
 Assets                                                                              
 Current assets:                                                                     
 Cash and cash equivalents                       $        41,030   $        35,665   
 Accounts receivable, net                                 83,195            87,871   
 Inventories                                              79,482            77,942   
 Inventories - truck chassis floor plan                   8,146             6,539    
 Prepaid and other current assets                         5,334             3,511    
 Total current assets                                     217,187           211,528  
                                                                                     
 Property, plant, and equipment, net                      64,320            58,444   
 Goodwill                                                 113,134           241,006  
 Other intangible assets, net                             152,791           163,722  
 Operating lease - right of use asset                     21,441            22,557   
 Non-qualified benefit plan assets                        9,041             7,270    
 Other long-term assets                                   1,288             1,168    
 Total assets                                    $        579,202  $        705,695  
                                                                                     
 Liabilities and stockholders' equity                                                
 Current liabilities:                                                                
 Accounts payable                                $        16,284   $        16,113   
 Accrued expenses and other current liabilities           30,831            26,496   
 Floor plan obligations                                   7,885             6,539    
 Operating lease liability - current                      4,326             3,822    
 Income taxes payable                                     5,214             2,990    
 Current portion of long-term debt                        1,666             22,143   
 Total current liabilities                                66,206            78,103   
                                                                                     
 Retirement benefits and deferred compensation            15,804            14,017   
 Deferred income taxes                                    26,681            47,211   
 Long-term debt, less current portion                     236,676           222,081  
 Operating lease liability - noncurrent                   17,434            18,981   
 Other long-term liabilities                              16,197            12,139   
                                                                                     
 Total stockholders' equity                               200,204           313,163  
 Total liabilities and stockholders' equity      $        579,202  $        705,695  
                                                                                     



 Douglas Dynamics, Inc.                                                                                                                                                                                    
 Consolidated Statements of Income (Loss)                                                                                                                                                                  
 (In thousands, except share and per share data)                                                                                                                                                           
                                                                                                                                                                                                           
                                                                                         Three Month Period Ended                                  Twelve Month Period Ended                               
                                                                                         December 31, 2020           December 31, 2019             December 31, 2020           December 31, 2019           
                                                                                         (unaudited)                                               (unaudited)                                             
                                                                                                                                                                                                           
                                                                                                                                                                                                           
 Net sales                                                                               $       158,160             $       160,298               $       480,154             $       571,710             
 Cost of sales                                                                                   110,373                     113,959                       351,874                     402,893             
 Gross profit                                                                                    47,787                      46,339                        128,280                     168,817             
                                                                                                                                                                                                           
 Selling, general, and administrative expense                                                    17,182                      18,608                        64,617                      71,288              
 Impairment charges                                                                              -                           -                             127,872                     -                   
 Intangibles amortization                                                                        2,717                       2,739                         10,931                      10,956              
                                                                                                                                                                                                           
 Income (loss) from operations                                                                   27,888                      24,992                        (75,140     )               86,573              
                                                                                                                                                                                                           
 Interest expense, net                                                                           (4,529      )               (4,172      )                 (20,238     )               (16,782     )       
 Pension termination                                                                             -                           (6,609      )                 -                           (6,609      )       
 Debt modification expense                                                                       (113        )               -                             (3,542      )               -                   
 Other income (expense), net                                                                     124                         (149        )                 91                          (565        )       
 Income (loss) before taxes                                                                      23,370                      14,062                        (98,829     )               62,617              
                                                                                                                                                                                                           
 Income tax expense (benefit)                                                                    5,208                       2,502                         (12,276     )               13,451              
                                                                                                                                                                                                           
 Net income (loss)                                                                       $       18,162              $       11,560                $       (86,553     )       $       49,166              
                                                                                                                                                                                                           
 Weighted average number of common shares outstanding:                                                                                                                                                     
 Basic                                                                                           22,857,457                  22,795,412                    22,846,467                  22,779,057          
 Diluted                                                                                         22,880,841                  22,831,077                    22,846,467                  22,813,711          
                                                                                                                                                                                                           
 Earnings (loss) per share:                                                                                                                                                                                
 Basic earnings (loss) per common share attributable to common shareholders              $       0.78                $       0.50                  $       (3.81       )       $       2.13                
 Earnings (loss) per common share assuming dilution attributable to common shareholders  $       0.78                $       0.50                  $       (3.81       )       $       2.11                
 Cash dividends declared and paid per share                                              $       0.28                $       0.27                  $       1.12                $       1.09                
                                                                                                                                                                                                           



 Douglas Dynamics, Inc.                                                                                                                   
 Consolidated Statements of Cash Flows                                                                                                    
 (In thousands)                                                                                                                           
                                                                                                                                          
                                                                                           Twelve Month Period Ended                      
                                                                                           December 31,            December 31,           
                                                                                           2020                    2019                   
                                                                                           (unaudited)                                    
                                                                                                                                          
 Operating activities                                                                                                                     
 Net income (loss)                                                                         $      (86,553   )      $      49,166          
 Adjustments to reconcile net income (loss) to net cash provided by operating activities:                                                 
 Depreciation and amortization                                                                    19,737                  19,212          
 Debt modification expense                                                                        267                     -               
 Amortization of deferred financing costs and debt discount                                       1,364                   1,214           
 Stock-based compensation                                                                         2,830                   3,239           
 Adjustments on derivatives not designated as hedges                                              2,854                   -               
 Provision for losses on accounts receivable                                                      1,081                   1,361           
 Deferred income taxes                                                                            (19,598   )             (2,123   )      
 Impairment charges                                                                               127,872                 -               
 Earnout liability                                                                                (2,017    )             (417     )      
 Changes in operating assets and liabilities, net of acquisitions:                                                                        
 Accounts receivable                                                                              3,038                   (7,747   )      
 Inventories                                                                                      (1,801    )             4,054           
 Prepaid assets, refundable income taxes paid and other assets                                    (3,715    )             (2,140   )      
 Accounts payable                                                                                 (21       )             (2,562   )      
 Accrued expenses and other current liabilities                                                   6,577                   6,491           
 Benefit obligations and other long-term liabilities                                              1,451                   7,548           
 Net cash provided by operating activities                                                        53,366                  77,296          
                                                                                                                                          
 Investing activities                                                                                                                     
 Capital expenditures                                                                             (14,490   )             (11,533  )      
 Net cash used in investing activities                                                            (14,490   )             (11,533  )      
                                                                                                                                          
 Financing activities                                                                                                                     
 Shares withheld on restricted stock vesting paid for employees’ taxes                            (72       )             (50      )      
 Payments of financing costs                                                                      (1,133    )             -               
 Borrowings on long-term debt                                                                     270,875                 -               
 Dividends paid                                                                                   (25,926   )             (25,183  )      
 Repayment of long-term debt                                                                      (277,255  )             (32,685  )      
 Net cash used in financing activities                                                            (33,511   )             (57,918  )      
 Change in cash and cash equivalents                                                              5,365                   7,845           
 Cash and cash equivalents at beginning of year                                                   35,665                  27,820          
 Cash and cash equivalents at end of year                                                  $      41,030           $      35,665          
                                                                                                                                          
 Non-cash operating and financing activities                                                                                              
 Truck chassis inventory acquired through floorplan obligations                            $      38,167           $      44,929          
                                                                                                                                          



 Douglas Dynamics, Inc.                                                                                                                            
 Net Income (Loss) to Adjusted EBITDA reconciliation (unaudited)                                                                                   
 (In thousands)                                                                                                                                    
                                                                                                                                                   
                               Three month period ended December 31,                     Twelve month period ended December 31,                    
                               2020                            2019                      2020                             2019                     
                                                                                                                                                   
 Net income (loss)             $       18,162                  $       11,560            $       (86,553  )               $       49,166           
                                                                                                                                                   
 Interest expense - net                4,529                           4,172                     20,238                           16,782           
 Income tax expense (benefit)          5,208                           2,502                     (12,276  )                       13,451           
 Depreciation expense                  2,316                           2,138                     8,806                            8,256            
 Intangibles amortization              2,717                           2,739                     10,931                           10,956           
 EBITDA                                32,932                          23,111                    (58,854  )                       98,611           
                                                                                                                                                   
 Stock-based compensation              62                              178                       2,830                            3,239            
 Pension termination                   -                               6,609                     -                                6,609            
 Impairment charges                    -                               -                         127,872                          -                
 Debt modification expense             113                             -                         3,542                            -                
 COVID-19 (1)                          69                              -                         1,391                            -                
 Purchase accounting (2)               -                               (200    )                 (2,017   )                       (417     )       
 Other charges (3)                     27                              212                       128                              63               
 Adjusted EBITDA               $       33,203                  $       29,910            $       74,892                   $       108,105          
                                                                                                                                                   
 (1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented.                                               
 (2) Reflects $2,000 reversal of earn-out compensation acquired in conjunction with the acquisition of Dejana in the year ended December 31, 2020. Reflects $17 reversal of earn-out compensation in conjunction with the acquisition of Henderson in the year ended December 31, 2020. Reflects $217 reversal of earn-out compensation related to Henderson in the year ended December 31, 2019. Reflects $200 reversal of earn-out compensation related to Dejana for the quarter and year ended December 31, 2019. 
 (3) Reflects unrelated legal and consulting fees for the periods presented.                                                                       
                                                                                                                                                   



 Douglas Dynamics, Inc.                                                                                                                    
 Segment Disclosures (unaudited)                                                                                                           
 (In thousands)                                                                                                                            
                                                                                                                                           
                         Three Months Ended           Three Months Ended           Twelve Months Ended          Twelve Months Ended        
                         December 31, 2020            December 31, 2019            December 31, 2020            December 31, 2019          
                                                                                                                                           
 Work Truck Attachments                                                                                                                    
 Net Sales               $        82,985              $        79,937              $        252,838             $        293,630           
 Adjusted EBITDA         $        24,005              $        21,324              $        62,532              $        80,747            
 Adjusted EBITDA Margin           28.9%                        26.7%                        24.7%                        27.5%             
                                                                                                                                           
 Work Truck Solutions                                                                                                                      
 Net Sales               $        75,175              $        80,361              $        227,316             $        278,080           
 Adjusted EBITDA         $        9,198               $        8,586               $        12,360              $        27,358            
 Adjusted EBITDA Margin           12.2%                        10.7%                        5.4%                         9.8%              
                                                                                                                                           



 Douglas Dynamics, Inc.                                                                                                                                                                                                                                                           
 Reconciliation of Net Income (Loss) to Adjusted Net Income (unaudited)                                                                                                                                                                                                           
 (In thousands, except share and per share data)                                                                                                                                                                                                                                  
                                                                                                                                                                                                                                                                                  
                                                               Three month period ended December 31,                                                                                                Twelve month period ended December 31,                                        
                                                               2020                                                                         2019                                                    2020                                              2019                        
                                                                                                                                                                                                                                                                                  
 Net income (loss)                                             $                    18,162                                                  $             11,560                                    $             (86,553       )                     $       49,166              
 Adjustments:                                                                                                                                                                                                                                                                     
 Stock based compensation                                                           62                                                                    178                                                     2,830                                       3,239               
 Pension termination                                                                -                                                                     6,609                                                   -                                           6,609               
 Impairment charges                                                                 -                                                                     -                                                       127,872                                     -                   
 Debt modification expense                                                          113                                                                   -                                                       3,542                                       -                   
 COVID-19 (1)                                                                       69                                                                    -                                                       1,391                                       -                   
 Purchase accounting (2)                                                            -                                                                     (200          )                                         (2,017        )                             (417        )       
 Adjustments on derivative not classified as hedge (3)                              (279                 )                                                -                                                       2,854                                       -                   
 Other charges (4)                                                                  27                                                                    212                                                     128                                         63                  
 Tax effect on adjustments                                                          2                                                                     (1,699        )                                         (22,200       )                             (2,373      )       
 Adjusted net income                                           $                    18,156                                                  $             16,660                                    $             27,847                              $       56,287              
                                                                                                                                                                                                                                                                                  
 Weighted average basic common shares outstanding                                   22,857,457                                                            22,795,412                                              22,846,467                                  22,779,057          
 Weighted average common shares outstanding assuming dilution                       22,880,841                                                            22,831,077                                              22,872,032                                  22,813,711          
                                                                                                                                                                                                                                                                                  
 Adjusted earnings per common share - dilutive                 $                    0.78                                                    $             0.72                                      $             1.18                                $       2.42                
                                                                                                                                                                                                                                                                                  
 GAAP diluted earnings (loss) per share                        $                    0.78                                                    $             0.50                                      $             (3.81         )                     $       2.11                
 Adjustments net of income taxes:                                                                                                                                                                                                                                                 
                                                                                                                                                                                                                                                                                  
 Stock based compensation                                                           -                                                                     -                                                       0.09                                        0.11                
 Pension termination                                                                -                                                                     0.22                                                    -                                           0.22                
 Impairment charges                                                                 -                                                                     -                                                       4.72                                        -                   
 Debt modification expense                                                          -                                                                     -                                                       0.10                                        -                   
 COVID-19 (1)                                                                       -                                                                     -                                                       0.05                                        -                   
 Purchase accounting (2)                                                            -                                                                     (0.01         )                                         (0.07         )                             (0.02       )       
 Adjustments on derivative not classified as hedge (3)                              -                                                                     -                                                       0.09                                        -                   
 Other charges (4)                                                                  -                                                                     0.01                                                    0.01                                        -                   
                                                                                                                                                                                                                                                                                  
 Adjusted diluted earnings per share                           $                    0.78                                                    $             0.72                                      $             1.18                                $       2.42                
                                                                                                                                                                                                                                                                                  
 (1) Reflects incremental costs incurred related to the COVID-19 pandemic for the periods presented.                                                                                                                                                                              
 (2) Reflects $2,000 reversal of earn-out compensation acquired in conjunction with the acquisition of Dejana in the year ended December 31, 2020. Reflects $17 reversal of earn-out compensation in conjunction with the acquisition of Henderson in the year ended December 31, 2020. Reflects $217 reversal of earn-out compensation related to Henderson in the year ended December 31, 2019. Reflects $200 reversal of earn-out compensation related to Dejana for the quarter and year ended December 31, 2019. 
 (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 December 31,                     Twelve month period ended December 31,                    
                                            2020                            2019                      2020                             2019                     
                                                                                                                                                                
 Net cash provided by operating activities  $       80,448                  $       98,465            $       53,366                   $       77,296           
 Acquisition of property and equipment              (5,025  )                       (3,732  )                 (14,490  )                       (11,533  )       
 Free cash flow                             $       75,423                  $       94,733            $       38,876                   $       65,763           
                                                                                                                                                                

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

(https://www.globenewswire.com/NewsRoom/AttachmentNg/bfa83c87-de79-4163-b380-36afb6b80b3b)



GlobeNewswire, Inc. 2021
© Stockopedia 2021, Refinitiv, Share Data Services.
This site cannot substitute for professional investment advice or independent factual verification. To use it, you must accept our Terms of Use, Privacy and Disclaimer policies.