VMI Valmont Industries

Valmont® Industries, Inc. (NYSE: VMI), a global leader that provides vital infrastructure and advances agricultural productivity while driving innovation through technology, today reported financial results for the second quarter ended June 29, 2024.

President and Chief Executive Officer Avner M. Applbaum commented, “Our team demonstrated their dedication to enhancing shareholder value by delivering another quarter of operating margin expansion and earnings per share growth. Second quarter results in both segments were driven by commercial and operational execution, pricing strategies, and a fundamentally improved cost structure. Additionally, our Infrastructure segment benefited from declining steel costs, contributing to higher profitability. We are steadily progressing in adjusting and expanding our factory output, creating flexibility to meet the evolving needs of our customers, a strategy that will continue to yield benefits in future quarters. In Agriculture, severe weather in the U.S. led to a large increase in replacement sales. Brazil remains soft as lower grain prices are impacting growers’ buying behavior, while Middle East projects are on track. We strengthened our balance sheet, with earnings growth and effective working capital management driving strong cash generation. This enables us to advance our capital allocation strategy and drive higher returns on invested capital. I am very pleased with our progress towards our strategic priorities which are grounded in the Valmont Business Model, helping us consistently create value and deliver outstanding results.”

Second Quarter 2024 Highlights (all metrics compared to Second Quarter 2023 unless otherwise noted)

• Net Sales of $1.0 billion were similar to prior year
• Operating Income increased 10.2% to $147.3 million or 14.2% of net sales compared to $133.7 million or 12.8% of net sales
• Diluted Earnings per Share (EPS) grew 16.6% to $4.91 compared to $4.21; second quarter 2024 EPS includes a tax benefit of approximately $3.0 million or $0.15 per share
• Generated operating cash flows of $130.8 million; cash and cash equivalents at the end of the second quarter were $163.1 million
• Returned $27.1 million to shareholders through share repurchases and dividends, and reduced borrowings on the revolving credit facility by approximately $90.0 million
• Raising full-year 2024 diluted EPS guidance to $16.50 to $17.30; previously $15.40 to $16.40

Key Financial Metrics

 

 

 

 

 

 

 

 

 

 

Second Quarter 2024

 

 

 

(000s except per share amounts)

 

6/29/2024

 

7/1/2023

 

 

 

 

 

Q2 2024

 

Q2 2023

 

vs. Q2 2023

 

Net Sales

 

$

1,039,737

 

$

1,046,296

 

(0.6)

%

Gross Profit

 

 

320,282

 

 

329,397

 

(2.8)

%

Gross Profit as a % of Net Sales

 

 

30.8

%

 

31.5

%

 

 

Operating Income

 

 

147,308

 

 

133,733

 

10.2

%

Operating Income as a % of Net Sales

 

 

14.2

%

 

12.8

%

 

 

Net Earnings Attributable to Valmont Industries, Inc.1

 

 

99,716

 

 

89,376

 

11.6

%

Diluted Earnings per Share1

 

 

4.91

 

 

4.21

 

16.6

%

Weighted Average Shares Outstanding

 

 

20,292

 

 

21,229

 

 

 

 

 

 

 

 

 

 

 

 

 

Year-to-Date 2024

 

 

 

(000s except per share amounts)

 

6/29/2024

 

7/1/2023

 

 

 

 

 

FY 2024

 

FY 2023

 

vs. FY 2023

 

Net Sales

 

$

2,017,565

 

$

2,108,777

 

(4.3)

%

Gross Profit

 

 

626,498

 

 

637,982

 

(1.8)

%

Gross Profit as a % of Net Sales

 

 

31.1

%

 

30.3

%

 

 

Operating Income

 

 

278,861

 

 

252,199

 

10.6

%

Operating Income as a % of Net Sales

 

 

13.8

%

 

12.0

%

 

 

Net Earnings Attributable to Valmont Industries, Inc.1

 

 

187,538

 

 

163,916

 

14.4

%

Diluted Earnings per Share1

 

 

9.24

 

 

7.67

 

20.5

%

Weighted Average Shares Outstanding

 

 

20,307

 

 

21,370

 

 

 

1Q2 2024 includes a tax benefit of approximately $3.0 million or $0.15 per share due to the reduction of a valuation allowance on a tax loss carryforward in a foreign subsidiary

Second Quarter 2024 Segment Review

Infrastructure (73.1% of Net Sales)

Products and solutions to serve the infrastructure markets of utility, solar, lighting and transportation, and telecommunications, along with coatings services to protect metal products

Sales of $762.7 million decreased 1.0% year-over-year. Volumes in the Transmission, Distribution, and Substation (Utility) product line were slightly higher. A greater mix of distribution and substation structures and the unfavorable contractual price impact from steel index deflation limited sales growth this quarter. Telecommunications volumes were much lower due to a softer market environment compared to last year. Solar volumes were also lower due to project timing. Pricing was favorable for the segment as steel index deflation was offset by favorable mix.

Operating Income increased to $133.6 million or 17.6% of net sales compared to $116.0 million or 15.1% of net sales in the second quarter of 2023 driven by improved commercial execution, pricing strategies, lower cost of goods sold due to declining steel costs, and reduced SG&A expenses.

Agriculture (26.9% of Net Sales)

Center pivot and linear irrigation equipment components for agricultural markets, including aftermarket parts and tubular products, and advanced technology solutions for precision agriculture

Sales of $281.7 million grew slightly year-over-year. In North America, irrigation equipment volumes were significantly higher driven by a large increase in replacement sales due to severe weather impacts in the midwestern and southern United States. Average irrigation selling prices were lower compared to last year, primarily due to targeted regional pricing actions.

International sales decreased compared to last year. Sales were significantly lower in Brazil due to normalizing backlog levels and lower grain prices impacting growers’ buying behavior. These lower sales were partially offset by higher Middle East project sales and the contribution from the HR Products acquisition.

Operating Income was $40.0 million or 14.3% of net sales compared to $49.3 million or 17.7% of net sales in the second quarter of 2023. The benefit of reduced SG&A expenses was more than offset by the impact of lower volumes and pricing in Brazil.

Balance Sheet, Liquidity, and Capital Allocation

The Company generated operating cash flows of $130.8 million, and cash and cash equivalents at the end of the second quarter were $163.1 million. During the quarter, Valmont repurchased $14.9 million of Company stock, and $121.2 million remains on the authorized share repurchase program.

Updating 2024 Full-Year Financial Outlook and Key Assumptions

The Company is reaffirming its commitment to focus on strategic areas to enhance profitability and return on invested capital. As a result, we are exiting certain low-margin Solar projects leading to an expected decrease of approximately $40.0 million in Solar sales from the previous outlook. Additionally, the contractual price impact from steel index deflation is leading us to adjust our expected increase in Utility sales downward from the previous outlook. These two factors contribute to an approximate $80.0 million decrease in the Infrastructure segment net sales growth projections for the year, with minimal impact on segment profitability. The Company is also raising its 2024 full-year diluted earnings per share outlook from the previous guidance provided last quarter and updating key assumptions for the year.

Metric

Previous Outlook

Current Outlook

Net Sales Change (vs. PY)

(2.0%) to 0.5%

(3.5%) to (1.5%)

Infrastructure Net Sales (vs. PY)

Growth Approaching Mid-Single Digits

Flat to 1.5%

Agriculture Net Sales

(vs. PY)

(15.0%) to (10.0%)

No Change from Previous Outlook

Diluted Earnings per Share

$15.40 to $16.40

$16.50 to $17.30

• Steel cost assumptions aligned with hot rolled coil futures market
• Effective tax rate of approximately 26.0%
• Minimal expected foreign currency translation impact on net sales
• For cash flow purposes, capital expenditures now expected to be in the range of $95.0 to $110.0 million to support strategic growth initiatives

Applbaum added, “I am pleased that we are increasing our diluted earnings per share outlook for the year even as we are decreasing our net sales guidance. We are improving operating margins as we meet evolving customer needs and are driving toward profitable growth. We remain committed to increasing our output to capitalize on market opportunities as the long-term demand for our products remains strong. Our broad exposure to infrastructure and agriculture markets helps us effectively manage market cycles and share resources across businesses, improving efficiency and returns on investment. We believe these advantages will become increasingly important as the energy transition accelerates and agriculture markets recover. I am confident in our ability to strengthen our core businesses, deliver strong returns on invested capital and enhance shareholder value.”

A live audio discussion with Avner M. Applbaum, President and Chief Executive Officer, and Timothy P. Francis, Interim Chief Financial Officer, will be accessible by telephone on Thursday, July 25, 2024 at 8:00 a.m. CT by dialing +1 877.407.6184 or +1 201.389.0877 (no Conference ID needed), or via webcast by pointing browsers to this link: Valmont Industries 2Q 2024 Earnings Conference Call. A slide presentation will simultaneously be available for download on the Investors page of valmont.com. A replay of the event can be accessed three hours after the call at the above link or by telephone at +1 877.660.6853 or +1 201.612.7415. Please use access code 13742905. The replay will be available through 10:59 p.m. CT on Thursday, August 1, 2024.

About Valmont Industries, Inc.

For nearly 80 years, Valmont has been a global leader in creating vital infrastructure and advancing agricultural productivity. Today, we remain committed to doing more with less by innovating through technology. Learn more about how we’re Conserving Resources. Improving Life.® at valmont.com.

Concerning Forward-Looking Statements

This release contains forward-looking statements, within the meaning of the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on assumptions that management has made in light of experience in the industries in which Valmont operates, as well as management’s perceptions of historical trends, current conditions, expected future developments, and other factors believed to be appropriate under the circumstances. As you read and consider this release, you should understand that these statements are not guarantees of performance or results. They involve risks, uncertainties (some of which are beyond Valmont’s control), and assumptions. Although management believes that these forward-looking statements are based on reasonable assumptions, you should be aware that many factors could affect Valmont’s actual financial results and cause them to differ materially from those anticipated in the forward-looking statements. These factors include, among other things, risk factors described from time to time in Valmont’s reports to the Securities and Exchange Commission, as well as future economic and market circumstances, industry conditions, company performance and financial results, operating efficiencies, availability and price of raw materials, availability and market acceptance of new products, product pricing, domestic and international competitive environments, geopolitical risks, and actions and policy changes of domestic and foreign governments. The Company cautions that any forward-looking statement included in this press release is made as of the date of this press release and the Company does not undertake to update any forward-looking statement.

Website and Social Media Disclosure

The Company uses its website and social media channels identified on its website as channels of distribution of Company information. The information that the Company posts through these channels may be deemed material. Accordingly, investors should monitor these channels, in addition to following the Company’s press releases, Securities and Exchange Commission filings, and public conference calls and webcasts. The contents of the Company’s website and social media channels are not part of this press release.

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars and shares in thousands, except per share amounts)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

June 29,

 

July 1,

 

June 29,

 

July 1,

 

 

2024

 

2023

 

2024

 

2023

Net sales

 

$

1,039,737

 

 

$

1,046,296

 

 

$

2,017,565

 

 

$

2,108,777

 

Cost of sales

 

 

719,455

 

 

 

716,899

 

 

 

1,391,067

 

 

 

1,470,795

 

Gross profit

 

 

320,282

 

 

 

329,397

 

 

 

626,498

 

 

 

637,982

 

Selling, general, and administrative expenses

 

 

172,974

 

 

 

195,664

 

 

 

347,637

 

 

 

385,783

 

Operating income

 

 

147,308

 

 

 

133,733

 

 

 

278,861

 

 

 

252,199

 

Other income (expenses):

 

 

 

 

 

 

 

 

 

 

 

 

Interest expense

 

 

(15,846

)

 

 

(14,917

)

 

 

(32,067

)

 

 

(28,022

)

Interest income

 

 

1,499

 

 

 

563

 

 

 

3,278

 

 

 

1,393

 

Gain on deferred compensation investments

 

 

525

 

 

 

941

 

 

 

1,956

 

 

 

2,135

 

Gain on divestiture

 

 

—

 

 

 

2,994

 

 

 

—

 

 

 

2,994

 

Other

 

 

(1,250

)

 

 

(2,382

)

 

 

(1,355

)

 

 

(4,758

)

Total other income (expenses)

 

 

(15,072

)

 

 

(12,801

)

 

 

(28,188

)

 

 

(26,258

)

Earnings before income taxes and equity in loss of nonconsolidated subsidiaries

 

 

132,236

 

 

 

120,932

 

 

 

250,673

 

 

 

225,941

 

Income tax expense

 

 

31,067

 

 

 

31,935

 

 

 

61,055

 

 

 

63,778

 

Equity in loss of nonconsolidated subsidiaries

 

 

(19

)

 

 

(199

)

 

 

(39

)

 

 

(1,020

)

Net earnings

 

 

101,150

 

 

 

88,798

 

 

 

189,579

 

 

 

161,143

 

Loss (earnings) attributable to redeemable noncontrolling interests

 

 

(1,434

)

 

 

578

 

 

 

(2,041

)

 

 

2,773

 

Net earnings attributable to Valmont Industries, Inc.

 

$

99,716

 

 

$

89,376

 

 

$

187,538

 

 

$

163,916

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Basic

 

 

20,175

 

 

 

21,029

 

 

 

20,182

 

 

 

21,149

 

Earnings per share - Basic

 

$

4.94

 

 

$

4.25

 

 

$

9.29

 

 

$

7.75

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Weighted average shares outstanding - Diluted

 

 

20,292

 

 

 

21,229

 

 

 

20,307

 

 

 

21,370

 

Earnings per share - Diluted

 

$

4.91

 

 

$

4.21

 

 

$

9.24

 

 

$

7.67

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.60

 

 

$

0.60

 

 

$

1.20

 

 

$

1.20

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended

 

Twenty-six weeks ended

 

 

 

June 29,

 

July 1,

 

June 29,

 

July 1,

 

 

 

2024

 

2023

 

2024

 

2023

 

Infrastructure

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

760,430

 

 

$

768,158

 

 

$

1,481,163

 

 

$

1,500,298

 

 

Gross profit

 

 

232,403

 

 

 

224,876

 

 

 

450,020

 

 

 

425,271

 

 

as a percent of net sales

 

 

30.6

 

%

 

29.3

 

%

 

30.4

 

%

 

28.3

 

%

Selling, general, and administrative expenses

 

 

98,822

 

 

 

108,926

 

 

 

198,575

 

 

 

214,969

 

 

as a percent of net sales

 

 

13.0

 

%

 

14.2

 

%

 

13.4

 

%

 

14.3

 

%

Operating income

 

 

133,581

 

 

 

115,950

 

 

 

251,445

 

 

 

210,302

 

 

as a percent of net sales

 

 

17.6

 

%

 

15.1

 

%

 

17.0

 

%

 

14.0

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Agriculture

 

 

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

$

279,307

 

 

$

278,138

 

 

$

536,402

 

 

$

608,479

 

 

Gross profit

 

 

87,879

 

 

 

104,521

 

 

 

176,478

 

 

 

212,711

 

 

as a percent of net sales

 

 

31.5

 

%

 

37.6

 

%

 

32.9

 

%

 

35.0

 

%

Selling, general, and administrative expenses

 

 

47,908

 

 

 

55,270

 

 

 

95,534

 

 

 

110,137

 

 

as a percent of net sales

 

 

17.2

 

%

 

19.9

 

%

 

17.8

 

%

 

18.1

 

%

Operating income

 

 

39,971

 

 

 

49,251

 

 

 

80,944

 

 

 

102,574

 

 

as a percent of net sales

 

 

14.3

 

%

 

17.7

 

%

 

15.1

 

%

 

16.9

 

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Corporate

 

 

 

 

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

$

26,244

 

 

$

31,468

 

 

$

53,528

 

 

$

60,677

 

 

Operating loss

 

 

(26,244

)

 

 

(31,468

)

 

 

(53,528

)

 

 

(60,677

)

 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended June 29, 2024

 

 

Infrastructure

 

Agriculture

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

582,143

 

$

161,310

 

$

(4,686

)

 

$

738,767

International

 

 

180,599

 

 

120,393

 

 

(22

)

 

 

300,970

Total sales

 

$

762,742

 

$

281,703

 

$

(4,708

)

 

$

1,039,737

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

323,087

 

$

—

 

$

—

 

 

$

323,087

Lighting and Transportation

 

 

243,562

 

 

—

 

 

—

 

 

 

243,562

Coatings

 

 

91,574

 

 

—

 

 

(2,294

)

 

 

89,280

Telecommunications

 

 

58,400

 

 

—

 

 

—

 

 

 

58,400

Solar

 

 

46,119

 

 

—

 

 

(18

)

 

 

46,101

Irrigation Equipment and Parts

 

 

—

 

 

254,310

 

 

(2,396

)

 

 

251,914

Technology Products and Services

 

 

—

 

 

27,393

 

 

—

 

 

 

27,393

Total sales

 

$

762,742

 

$

281,703

 

$

(4,708

)

 

$

1,039,737

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Thirteen weeks ended July 1, 2023

 

 

Infrastructure

 

Agriculture

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

587,313

 

$

140,981

 

$

(3,613

)

 

$

724,681

International

 

 

183,282

 

 

138,952

 

 

(619

)

 

 

321,615

Total sales

 

$

770,595

 

$

279,933

 

$

(4,232

)

 

$

1,046,296

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

314,307

 

$

—

 

$

—

 

 

$

314,307

Lighting and Transportation

 

 

246,123

 

 

—

 

 

—

 

 

 

246,123

Coatings

 

 

91,120

 

 

—

 

 

(1,818

)

 

 

89,302

Telecommunications

 

 

67,738

 

 

—

 

 

—

 

 

 

67,738

Solar

 

 

51,307

 

 

—

 

 

(619

)

 

 

50,688

Irrigation Equipment and Parts

 

 

—

 

 

252,457

 

 

(1,795

)

 

 

250,662

Technology Products and Services

 

 

—

 

 

27,476

 

 

—

 

 

 

27,476

Total sales

 

$

770,595

 

$

279,933

 

$

(4,232

)

 

$

1,046,296

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(Unaudited)

 

 

Twenty-six weeks ended June 29, 2024

 

 

Infrastructure

 

Agriculture

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,150,715

 

$

321,225

 

$

(9,152

)

 

$

1,462,788

International

 

 

335,641

 

 

219,213

 

 

(77

)

 

 

554,777

Total sales

 

$

1,486,356

 

$

540,438

 

$

(9,229

)

 

$

2,017,565

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

648,343

 

$

—

 

$

—

 

 

$

648,343

Lighting and Transportation

 

 

465,658

 

 

—

 

 

—

 

 

 

465,658

Coatings

 

 

178,664

 

 

—

 

 

(5,120

)

 

 

173,544

Telecommunications

 

 

112,361

 

 

—

 

 

—

 

 

 

112,361

Solar

 

 

81,330

 

 

—

 

 

(73

)

 

 

81,257

Irrigation Equipment and Parts

 

 

—

 

 

487,430

 

 

(4,036

)

 

 

483,394

Technology Products and Services

 

 

—

 

 

53,008

 

 

—

 

 

 

53,008

Total sales

 

$

1,486,356

 

$

540,438

 

$

(9,229

)

 

$

2,017,565

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Twenty-six weeks ended July 1, 2023

 

 

Infrastructure

 

Agriculture

 

Intersegment

 

Consolidated

Geographical Market:

 

 

 

 

 

 

 

 

 

 

 

 

North America

 

$

1,171,396

 

$

323,850

 

$

(8,987

)

 

$

1,486,259

International

 

 

335,305

 

 

288,246

 

 

(1,033

)

 

 

622,518

Total sales

 

$

1,506,701

 

$

612,096

 

$

(10,020

)

 

$

2,108,777

 

 

 

 

 

 

 

 

 

 

 

 

 

Product Line:

 

 

 

 

 

 

 

 

 

 

 

 

Transmission, Distribution, and Substation

 

$

629,127

 

$

—

 

$

—

 

 

$

629,127

Lighting and Transportation

 

 

475,259

 

 

—

 

 

—

 

 

 

475,259

Coatings

 

 

181,234

 

 

—

 

 

(5,370

)

 

 

175,864

Telecommunications

 

 

135,875

 

 

—

 

 

—

 

 

 

135,875

Solar

 

 

85,206

 

 

—

 

 

(1,033

)

 

 

84,173

Irrigation Equipment and Parts

 

 

—

 

 

551,638

 

 

(3,617

)

 

 

548,021

Technology Products and Services

 

 

—

 

 

60,458

 

 

—

 

 

 

60,458

Total sales

 

$

1,506,701

 

$

612,096

 

$

(10,020

)

 

$

2,108,777

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

June 29,

 

December 30,

 

 

2024

 

2023

ASSETS

 

 

 

 

 

 

Current assets:

 

 

 

 

 

 

Cash and cash equivalents

 

$

163,142

 

$

203,041

Receivables, net

 

 

703,255

 

 

657,960

Inventories

 

 

633,232

 

 

658,428

Contract assets

 

 

191,846

 

 

175,721

Prepaid expenses and other current assets

 

 

92,560

 

 

92,479

Total current assets

 

 

1,784,035

 

 

1,787,629

Property, plant, and equipment, net

 

 

604,326

 

 

617,394

Goodwill and other non-current assets

 

 

1,068,841

 

 

1,072,425

Total assets

 

$

3,457,202

 

$

3,477,448

 

 

 

 

 

 

 

LIABILITIES, REDEEMABLE NONCONTROLLING INTERESTS,

 

 

 

 

 

 

AND SHAREHOLDERS' EQUITY

 

 

 

 

 

 

Current liabilities:

 

 

 

 

 

 

Current installments of long-term debt

 

$

569

 

$

719

Notes payable to banks

 

 

1,876

 

 

3,205

Accounts payable

 

 

353,729

 

 

358,311

Accrued expenses

 

 

247,524

 

 

277,764

Contract liabilities

 

 

68,811

 

 

70,978

Income taxes payable

 

 

20,427

 

 

—

Dividends payable

 

 

12,098

 

 

12,125

Total current liabilities

 

 

705,034

 

 

723,102

Long-term debt, excluding current installments

 

 

1,017,543

 

 

1,107,885

Operating lease liabilities

 

 

154,247

 

 

162,743

Other non-current liabilities

 

 

62,648

 

 

66,646

Total liabilities

 

 

1,939,472

 

 

2,060,376

Redeemable noncontrolling interests

 

 

46,249

 

 

62,792

Shareholders' equity

 

 

1,471,481

 

 

1,354,280

Total liabilities, redeemable noncontrolling interests, and shareholders' equity

 

$

3,457,202

 

$

3,477,448

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(Unaudited)

 

 

 

 

 

 

 

 

 

Twenty-six weeks ended

 

 

June 29,

 

July 1,

 

 

2024

 

2023

Cash flows from operating activities:

 

 

 

 

 

 

Net earnings

 

$

189,579

 

 

$

161,143

 

Depreciation and amortization

 

 

46,526

 

 

 

48,792

 

Contribution to defined benefit pension plan

 

 

(18,009

)

 

 

(15,259

)

Gain on divestiture

 

 

—

 

 

 

(2,994

)

Change in working capital

 

 

(78,305

)

 

 

(98,979

)

Other

 

 

14,352

 

 

 

16,843

 

Net cash flows from operating activities

 

 

154,143

 

 

 

109,546

 

Cash flows from investing activities:

 

 

 

 

 

 

Purchase of property, plant, and equipment

 

 

(33,328

)

 

 

(45,393

)

Proceeds from divestiture, net of cash divested

 

 

—

 

 

 

6,369

 

Proceeds from property damage insurance claims

 

 

—

 

 

 

4,844

 

Other

 

 

(3,176

)

 

 

134

 

Net cash flows from investing activities

 

 

(36,504

)

 

 

(34,046

)

Cash flows from financing activities:

 

 

 

 

 

 

Net payments on short-term borrowings

 

 

(1,275

)

 

 

(4,693

)

Proceeds from long-term borrowings

 

 

15,009

 

 

 

165,012

 

Principal payments on long-term borrowings

 

 

(105,349

)

 

 

(84,105

)

Dividends paid

 

 

(24,239

)

 

 

(24,376

)

Purchase of redeemable noncontrolling interests

 

 

(17,745

)

 

 

—

 

Purchase of treasury shares

 

 

(14,941

)

 

 

(135,115

)

Other

 

 

(2,335

)

 

 

(10,877

)

Net cash flows from financing activities

 

 

(150,875

)

 

 

(94,154

)

Effect of exchange rates on cash and cash equivalents

 

 

(6,663

)

 

 

155

 

Net change in cash and cash equivalents

 

 

(39,899

)

 

 

(18,499

)

Cash and cash equivalents—beginning of period

 

 

203,041

 

 

 

185,406

 

Cash and cash equivalents—end of period

 

$

163,142

 

 

$

166,907

 

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724630474/en/

Renee Campbell renee.campbell@valmont.com