VALMONT INDUSTRIES INC - FORM 8-K - EX-99.1 - February 17, 2016

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News Release
For Immediate Release
Contact:  Jeff Laudin
February 17, 2016
Phone:  402-963-1158
  
Fax:   402-963-1198
  
Valmont Reports Fourth Quarter Loss Due To Restructuring
 
Initiative and Other One-time Charges and
 
Reinstates Annual Guidance
 
Omaha, NE - Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure and mechanized irrigation equipment and services for agriculture, today reported fourth quarter and full year results.
 
·
4Q revenues of $633.8 million were down 17% year-over-year, 1/3 of the decline was foreign exchange impact
 
·
4Q operating loss was $17.0 million, including $3.7 million negative foreign exchange impact; excluding restructuring, impairment and other one-time charges (“charges”), operating income was $49.8 million, or 7.9% of net sales, compared with 8.7% in 2014
 
·
For the year, adjusted operating income as a percent of sales declined from 11.5% in 2014 to 9.1%.
 
·
4Q GAAP diluted loss per share was $1.34 compared with diluted earnings per share (EPS) of $1.66 in 2014; 2015 adjusted diluted EPS was $1.35 before charges
 
·
Full year EPS was $1.71 or $5.63 before charges, compared with $8.17 adjusted in 2014
 
·
Operating cash flows for the quarter and year totaled $89 million and $272 million, respectively; year-end cash balance was $349 million
 
·
Company reinstated annual guidance; expects 2016 diluted EPS up 12-15% from 2015 adjusted EPS of $5.63
 

 
 
 

Additional Details
 
·
The previously announced restructuring initiative concluded, with overhead reductions, plant consolidations and other cost actions resulting in charges of $16.0 million (pre-tax) for the quarter, and $39.9 million for the year
 
·
Realized approximately $8 million in benefits from these actions during 2015. Expect further cost savings benefits in 2016 of approximately $22 million
 
·
To enhance transparency and align with its management structure, the Company modified its reporting structure to include a new segment called Energy and Mining
 
·
In the Coatings segment, an additional $7.1 million of after-tax impairment charges were recorded upon completion of the goodwill impairment analysis; in the newly created Energy and Mining segment, a charge of $19.6 million of after-tax goodwill and trade name impairments was recorded
 
·
Other pre-tax non-recurring expenses totaled $24.0 million for the quarter. These were: an increase in the allowance for doubtful accounts of $7.0 million in the Irrigation Segment, made for a receivable from a customer in China, and a commercial settlement with a large customer requiring ongoing inspections that resulted in a provision of $17.0 million in the Utility Support Structures Segment.
 
·
Repurchased 0.2 million of Company shares during quarter. There is $179 remaining on the current authorization.
 
“2015 was a transformational year for Valmont, as we completed our planned restructuring efforts to strengthen our position amid ongoing end market softness,” said Mogens C. Bay, Valmont’s Chairman and Chief Executive Officer. “We exited the year with 14 fewer manufacturing facilities and reduced the global workforce by approximately 7%. As we look ahead, we cannot count on an improvement in the global economic environment to support our results. However, restructuring benefits and a focus on operational improvements position us well to deliver solid earnings growth in 2016.”
 

 
 
 

 
4Q and Full Year 2015 Financial Results
 
Summarized Financial Info.
Fourth Quarter
13 Weeks Ended
  
Year-to-Date
52 Weeks Ended
        
 
26-Dec-15
  
27-Dec-14
  
26-Dec-15
  
27-Dec-14
        
Net Sales
 $  633,828
  
$ 763,137
  
$2,618,924
  
$3,123,143
        
Operating Income - GAAP
     (17,000)
  
     66,289
  
     131,695
  
     357,716
        
Operating Income - Adjusted *
       49,789
  
     66,289
  
     237,527
  
     357,716
        
Net Earnings - GAAP
     (30,561)
  
     40,461
  
       40,117
  
     183,976
        
Net Earnings - Adjusted *
       31,104
  
     39,398
  
     131,798
  
     211,943
        
                       
Diluted EPS - GAAP Earnings
 $      (1.34)
  
$       1.66
  
$         1.71
  
$         7.09
        
Average Shares Outstanding - Diluted
       22,892
  
     24,409
  
       23,405
  
       25,932
        
                       
Diluted EPS - Adjusted Earnings *
 $        1.35
  
$       1.61
  
$         5.63
  
$         8.17
        
                       
Average Shares Outstanding - Diluted
       23,018
  
     24,409
  
       23,405
  
       25,932
        
                       
* Please see Reg. G reconciliation table on last page.
                    
                       
Segment Operating Income Reconciliation
Engineered Support Structures
  
Energy & Mining
  
Utility Support Structures
  
Coatings
  
Irrigation
  
Other/ Corporate
                       
Operating income (loss) - as reported
 $    13,850
  
$(21,523)
  
$     (2,414)
  
$       5,363
  
$      8,305
  
$  (20,581)
                       
Restructuring expenses
         4,159
  
       2,353
  
         1,578
  
         1,005
  
           876
  
         6,037
                       
Other non-recurring charges
                 -
  
               -
  
       17,001
  
                -
  
        7,009
  
                 -
                       
Impairment of goodwill and trade names
                 -
  
     19,640
  
                 -
  
         6,530
  
               -
  
600
                       
Adjusted Operating Income
 $    18,009
  
$        470
  
$     16,165
  
$     12,898
  
$    16,190
  
$  (13,944)
                       
Net sales
 $  193,383
  
$   78,764
  
$   170,623
  
$     75,731
  
$  137,546
    
                       
Operating Income as a % of Sales
7.2%
  
-27.3%
  
0.2%
  
7.1%
  
6.0%
  
NM
                       
Adjusted Operating Income as a % of Sales
9.3%
  
0.6%
  
9.5%
  
17.0%
  
11.8%
  
NM
  NM - Not Meaningful
                      
                       
 

 
For purposes of the description of fourth quarter results by segment, we will be comparing adjusted operating income for 2015 to actual operating income for 2014.  Please refer to the above table to understand the adjustments from reported operating income to adjusted operating income for 2015.

 
 
 

 
Reporting Structure Details
 
During the fourth quarter, the Company modified its reporting structure to improve transparency into its business portfolio and align with the management structure. Going forward, the Company will report in five segments:
 
·
Engineered Support Structures (formerly Engineered Infrastructure Products)
 
·
Utility Support Structures
 
·
Coatings
 
·
Energy & Mining (newly created)
 
·
Irrigation
 
The modified structure includes four changes in the reportable segments:
 
First, the newly created Energy & Mining segment comprises the Access Systems and Offshore & Construction businesses (originally in the former Engineered Infrastructure Products Segment) and the Grinding Media business (originally in the “Other” Segment).
 
Second, the renamed Engineered Support Structures segment now comprises global lighting, traffic and wireless communication support structures, along with the highway safety business.
 
Third, the tubing business that was formerly in the “Other” segment is now reported in the Irrigation segment, reflecting the importance of agriculture to its revenue.
 
Fourth, there will no longer be an “Other” segment.
 
The Utility Support Structures and Coatings Segments were unaffected.
 
Fourth Quarter Segment Review
 
Infrastructure-related
 
Engineered Support Structures (31% of 4Q Sales)
 
Poles, towers and components for the global lighting, traffic and wireless communication markets, and highway safety products.
 
Fourth quarter sales declined 15% to $193.4 million, including negative currency translation of $12.8 million. The same period in 2014 benefited from intercompany utility sales for an export order.
 

 
 
 

In North America, sales of lighting and traffic products were comparable to last year. Wireless communication structure sales were lower due to a major carrier postponing its network buildout.
 
In Europe, Middle East & Africa, lighting and traffic structure sales declined due the benefit of a one-time export project in the same period last year. Otherwise, sales in Europe were similar to last year.
 
In the Asia-Pacific region, wireless communication structure sales rose slightly, benefitting from China’s investment in its 4G wireless technology rollout. Other businesses in the region remained pressured by the weaker economic environment.
 
Adjusted operating income was $18.0 million or 9.3% compared with operating income of $20.9 million or 9.2% of segment sales in 2014. Volume deleverage and unfavorable currency translation effects accounted for the decline.
 
Utility Support Structures (27% of 4Q Sales)
 
Steel and concrete structures for the global electric utility industry.
 
Sales of $170.6 million decreased 21% year-over-year, due to the revenue impact of lower steel costs, a decline in Canada sales, and a less favorable project mix. International sales, while small, were lower than last year.
 
Adjusted operating income declined to $16.2 million from last year’s operating income of $19.0 million reflecting competitive pricing and an unfavorable sales mix of smaller structures. However, adjusted operating income as a percent of sales improved to 9.4% from operating income as a percent of sales of 8.8% in 2014, reflecting the positive impact of ongoing operational improvements in this segment taken place during the year.
 
Coatings Segment (12% of 4Q Sales)
 
Global galvanizing, painting and anodizing services.
 
Sales of $75.7 million were 5% lower than last year, due to lower sales in Asia Pacific and unfavorable currency translation effect of $4.8 million. In North America, increased sales to external customers offset the impact of lower internal volume.
 
Adjusted operating income of $12.9 million, or 17.0% of net sales, declined slightly from operating income of $13.6 million in 2014 due to weakness in international operations.
 
Energy and Mining Segment (12% of 4Q Sales)
 
Offshore structures, engineered access systems and grinding media.
 
Sales of $78.8 million declined 28% year-over-year and included negative currency translation of $15.8 million, or half of the decline. Offshore sales were negatively impacted by the significant decline in oil prices. Weak energy markets also weighed on Access Systems results in Asia Pacific. Grinding media revenues softened amid a decline in Australia mining activity.
 
Adjusted operating income was $0.8 million, or 1% of sales, reflecting a very unfavorable operating environment, specifically the influence of sharply lower oil and energy prices on sales and profitability.
 
Agriculture-related
 
Irrigation Segment (22% of 4Q Sales)
 
Agricultural irrigation equipment, parts, services and tubular products.
 
Irrigation Segment sales fell 19% to $137.5 million mostly due to reduced international irrigation equipment sales. North America irrigation equipment sales fell less than 10%, reflecting reductions in farm income and continued weak agricultural commodity prices. Contributing to the segment revenue decline was $10 million of currency translation effect, and a decline in tubing sales driven by lower steel prices and weaker industrial demand.
 
 Adjusted operating income was $16.2 million. Adjusted operating income as a percent of sales was 11.8%, only slightly lower than last year’s operating income as a percent of sales of 12.3%.
 
2016 Outlook:
 
2016 annual guidance and assumptions include:
 
·
Revenue: Slightly lower, which includes expectations for reduced irrigation sales
 
·
Diluted EPS: Up ~12-15% from 2015 adjusted EPS of $5.63 with first quarter results about flat and positive quarterly comparisons for the remainder of the year.
 
“Looking forward to 2016, we do not anticipate meaningful improvements in our end markets and are prioritizing operational excellence and cost reductions to drive increased earnings,” Mr. Bay said. “Additional expectations informing our current outlook include stable input costs and foreign exchange rates.”
 
“While the macro environment remains challenged, none of the positive long-term, global drivers for our businesses have changed. Efficient use of water for food production will only increase in urgency and economic growth cannot be sustained without investments in the world’s infrastructure. We believe we are well positioned to participate in these opportunities.”
 
An audio discussion of Valmont’s fourth quarter results will be available live by telephone by dialing 1-877-493-2981 and entering Conference ID#: 15296219 or via Webcast at 8:00 a.m. CDT February 18, 2016 at https://engage.vevent.com/rt/valmontindustries_ao~021816.  A replay is available through the above link or by telephone (855-859-2056 or 404-537-3406, Conference ID#: 15296219) beginning February 18, 2016 at 10:00 a.m. CDT through 12:00 p.m. CDT on February 25, 2016.
 

 
 
 

Valmont is a global leader, designing and manufacturing highly engineered products that support global infrastructure development and agricultural productivity. Its products for infrastructure serve highway, transportation, wireless communication, electric transmission, and industrial construction and energy markets. Its mechanized irrigation equipment for large scale agriculture improves farm productivity while conserving fresh water resources. In addition, Valmont provides coatings services that protect against corrosion and improve the service lives of steel and other metal products.
 
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 material, availability and market acceptance of new products, product pricing, domestic and international competitive environments, 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.
 

 
 
 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
(Dollars in thousands, except per share amounts)
(unaudited)
 
Fourth Quarter
  
Year-to-Date
 
13 Weeks Ended
  
52 Weeks Ended
 
26-Dec-15
  
27-Dec-14
  
26-Dec-15
  
27-Dec-14
Net sales
 $          633,828
  
$      763,136
  
$  2,618,924
  
$      3,123,143
Cost of sales
             504,548
  
        581,978
  
    1,997,891
  
       2,315,026
      Gross profit
             129,280
  
        181,158
  
       621,033
  
           808,117
Selling, general and administrative expenses
             119,510
  
        114,869
  
       447,368
  
           450,401
Impairment of goodwill and intangible assets
               26,770
  
                  -
  
         41,970
  
                     -
      Operating income (loss)
            (17,000)
  
          66,289
  
       131,695
  
           357,716
Other income (expense)
              
     Interest expense
            (11,141)
  
       (11,573)
  
       (44,621)
  
          (36,790)
     Interest income
                   901
  
            1,253
  
           3,296
  
               6,046
     Costs related to refinancing of debt
                       -
 
                  -
  
                  -
  
          (38,705)
     Other
                 2,879
  
            2,169
  
           2,637
  
            (4,084)
 
              (7,361)
  
         (8,151)
  
       (38,688)
  
          (73,533)
      Earnings (loss) before income taxes and equity
              
      in earnings of nonconsolidated subsidiaries
            (24,361)
  
          58,138
  
         93,007
  
           284,183
Income tax expense
    
                 4,554
  
          16,583
  
         47,427
  
             94,894
      Earnings (loss) before equity in earnings of
                
      nonconsolidated subsidiaries
    
            (28,915)
  
          41,555
  
         45,580
  
           189,289
Equity in earnings of nonconsolidated subsidiaries
  
                 (247)
  
                63
  
            (247)
  
                   29
      Net earnings (loss)
    
            (29,162)
  
          41,618
  
         45,333
  
           189,318
Less:  Earnings attributable to non-controlling interests
  
              (1,399)
  
         (1,157)
  
         (5,216)
  
            (5,342)
      Net earnings (loss) attributable to Valmont Industries, Inc.
 $         (30,561)
  
 $      40,461
  
 $     40,117
  
 $      183,976
                   
                   
Average shares outstanding (000's) - Basic
    
             22,892
  
         24,253
  
        23,288
  
           25,719
Earnings (loss) per share - Basic
    
 $             (1.34)
  
 $          1.67
  
 $         1.72
  
 $            7.15
                   
Average shares outstanding (000's) - Diluted
  
             22,892
  
         24,409
  
        23,405
  
           25,932
Earnings (loss) per share - Diluted
    
 $             (1.34)
  
 $          1.66
  
 $         1.71
  
 $            7.09
                   
Cash dividends per share
    
 $              0.375
  
 $         0.375
  
$         1.500
  
 $            1.375
                   

 
 
 
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
SUMMARY OPERATING RESULTS
(Dollars in thousands)
(unaudited)
  
 
Fourth Quarter
13 Weeks Ended
  
Year-to-Date
52 Weeks Ended
  
 
26-Dec-15
  
27-Dec-14
  
26-Dec-15
  
27-Dec-14
  
                 
Net sales
                
     Engineered Support Structures
 $        193,383
  
$    227,840
  
 $   771,453
  
 $      810,074
  
     Energy and Mining
             78,764
  
      109,675
  
      337,859
  
         443,983
  
     Utility Support Structures
           170,623
  
      216,074
  
      674,577
  
         825,016
  
     Coatings
             75,731
  
        79,790
  
      302,385
  
         333,853
  
        Infrastructure products
           518,501
 
      633,379
  
   2,086,274
  
      2,412,926
  
                 
     Irrigation
           137,546
  
      169,979
  
      612,201
  
         846,326
  
     Other
               1,046
  
          1,980
  
          7,247
  
           10,108
  
     Less: Intersegment sales
          (23,265)
  
     (42,202)
  
     (86,798)
  
      (146,217)
  
          Total
 $        633,828
  
 $   763,136
  
 $2,618,924
  
 $   3,123,143
  
                 
Operating Income (loss)
                
     Engineered Support Structures
 $          13,850
  
$      20,878
  
 $     59,592
  
 $        66,024
  
     Energy and Mining
          (21,523)
  
          6,043
  
     (18,762)
  
           41,342
  
     Utility Support Structures
            (2,414)
  
        19,012
  
        37,847
  
           95,118
  
     Coatings
               5,363
  
        13,661
  
        27,369
  
           60,921
  
        Infrastructure products
            (4,724)
 
        59,594
  
      106,046
  
         263,405
  
                 
     Irrigation
               8,305
  
        20,962
  
        84,537
  
         151,508
  
     Other
            (6,039)
  
          (690)
  
       (9,802)
  
          (1,535)
  
     Corporate
          (14,542)
  
     (13,577)
  
     (49,086)
  
        (55,662)
  
          Total
$        (17,000)
  
$      66,289
  
 $   131,695
  
 $      357,716
  
                   

The backlog of orders for the principal products manufactured and marketed was $516.4 million at the end of the 2015 fiscal year and $553.8 million at the end of the 2014 fiscal year. We anticipate that most of the backlog of orders will be filled during fiscal year 2016. At year-end, the segments with backlog were as follows (dollar amounts in millions):

 
26-Dec-15
  
27-Dec-14
 Engineered Support Structures
$148
  
 $           170
 Energy and Mining
                     37
  
                51
 Utility Support Structures
                   245
  
              280
 Irrigation
                     87
  
                53
 Coatings
                       -
  
                -
 Other
                       -
  
                -
 
 $                517
  
 $           554
       

Valmont has aggregated its business segments into five reportable segments as follows.
 
Engineered Support Structures: This segment consists of the manufacture of engineered metal structures and components for global lighting and traffic, wireless communication, and roadway safety.
 
Energy and Mining: This segment includes the manufacture of access systems applications, forged steel grinding media, and offshore oil and gas and wind energy structures;
 
Utility Support Structures: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry.
 
Coatings: This segment consists of global galvanizing, painting and anodizing services.
 
Irrigation: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services worldwide and tubular products for industrial customers.
 
The distribution of industrial fasteners business and certain other product lines (each under 10% of consolidated sales) are included in the "Other" category.
 
 
 
 
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)
(unaudited)
           
     
26-Dec-15
  
27-Dec-14
ASSETS
          
Current assets:
          
     Cash and cash equivalents
    
 $        349,074
  
 $   371,579
     Accounts receivable, net
    
           466,443
  
      536,918
     Inventories
    
           340,672
  
      359,522
     Prepaid expenses
    
             46,137
  
        56,912
     Refundable and deferred income taxes
    
             24,526
  
        68,010
          Total current assets
    
        1,226,852
  
   1,392,941
Property, plant and equipment, net
    
           532,489
  
      606,453
Goodwill and other assets
    
           640,087
  
      730,274
     
 $     2,399,428
  
 $2,729,668
           
LIABILITIES AND SHAREHOLDERS' EQUITY
        
Current liabilities:
          
     Current installments of long-term debt
    
 $            1,077
  
 $       1,181
     Notes payable to banks
    
                  976
  
        13,952
     Accounts payable
    
           179,983
  
      196,565
     Accrued expenses
    
           175,947
  
      176,430
     Dividend payable
    
               8,571
  
          9,086
          Total current liabilities
    
           366,554
  
      397,214
Long-term debt, excluding current installments
  
           763,964
  
      766,654
Other long-term liabilities
    
           303,699
  
      315,395
Shareholders' equity
    
           965,211
  
   1,250,405
     
 $     2,399,428
  
 $2,729,668
           

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
  
(unaudited) and dollars in thousands
  
             
     
Year to Date
  
Year to Date
  
     
26-Dec-15
  
27-Dec-14
  
Cash flows from operating activities
            
   Net Earnings
    
 $            45,333
  
 $     189,318
  
   Depreciation and amortization
    
               91,144
  
          89,328
  
   Impairment of assets - restructuring activities
  
               19,836
  
                -
  
   Impairment of goodwill and trade names
    
               41,970
  
                -
  
   Change in working capital
    
               71,891
  
        (98,376)
  
   Other
    
                 2,093
  
          (6,174)
  
        Net cash flows from operating activities
  
             272,267
  
        174,096
  
             
Cash flows from investing activities
            
   Purchase of property, plant, and equipment
  
             (45,468)
  
        (73,023)
  
   Acquisitions, net of cash acquired
    
             (12,778)
  
       (185,710)
  
   Other
    
               10,075
  
            1,870
  
        Net cash flows from investing activities
  
             (48,171)
  
       (256,863)
  
             
Cash flows from financing activities
            
   Proceeds from long-term borrowings
    
               68,000
  
        652,211
  
   Principal payments on long-term borrowings
  
             (69,098)
  
       (357,858)
  
   Purchase of treasury shares
    
            (168,983)
  
       (395,045)
  
   Dividends paid
    
             (35,357)
  
        (32,443)
  
   Other
    
             (14,567)
  
          (6,621)
  
        Net cash flows from financing activities
  
            (220,005)
  
       (139,756)
  
Effect of exchange rates on cash and cash equivalents
  
             (26,596)
  
        (19,604)
  
Net change in cash and cash equivalents
    
             (22,505)
  
       (242,127)
  
Cash and cash equivalents - beginning of year
  
             371,579
  
        613,706
  
Cash and cash equivalents - end of period
    
 $          349,074
  
 $     371,579
  
           

 
 
 
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
    
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
    
REGULATION G RECONCILIATION
    
(Dollars in thousands, except per share amounts)
    
(unaudited)
    
The non-GAAP tables below disclose the 2015 impact on (a) diluted earnings per share of (1) restructuring costs, (2) goodwill and trade name impairment charges, and (3) other non-recurring expenses  (b) operating income of restructuring costs, impairments, and non-recurring expenses (c) segment operating income of restructuring costs, impairments, and non-recurring expenses. For 2014, the non-GAAP table discloses the impact on dilulted earnings per share of (1) the debt refinancing activities and (2) the non-cash mark-to-market for our shares of Delta EMD.  Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.
    
     
Fourth Quarter Ended Dec. 26, 2015
  
Diluted earnings per share
  
Year-to-Date Dec. 26, 2015
  
Diluted earnings per share
    
Net earnings (loss) attributable to         Valmont Industries, Inc. - as reported
    
 $          (30,561)
  
 $         (1.34)
  
 $       40,117
  
 $             1.71
    
                       
Restructuring expenses - after tax
    
               11,521
  
             0.50
  
          28,167
  
                1.20
    
                       
Impairment of goodwill and trade names - after tax
  
               26,770
  
             1.16
  
          40,140
  
                1.72
    
                       
Other non-recurring charges - after-tax *
    
               23,374
  
             1.02
  
          23,374
  
                1.00
    
                       
Net earnings attributable to Valmont Industries, Inc. - Adjusted
    
 $            31,104
  
 $           1.35
  
 $     131,798
  
 $             5.63
    
Average shares outstanding (000's) - Diluted
        
          23,018
      
             23,405
    
                       
     
Fourth Quarter Ended Dec. 27, 2014
  
Diluted earnings per share
  
Year-to-Date Dec. 27, 2014
  
Diluted earnings per share
    
Net earnings attributable to Valmont Industries, Inc. - as reported
    
 $            40,461
  
 $           1.66
  
 $     183,976
  
 $             7.09
    
                       
Costs related to refinancing of debt - after tax
  
                     -
  
                -
  
          24,171
  
                0.93
    
                       
Fair market value adjustment, Delta EMD - after-tax
  
               (1,063)
  
            (0.04)
  
           3,796
  
                0.15
    
                       
Net earnings attributable to Valmont Industries, Inc. - Adjusted
    
 $            39,398
  
 $           1.62
  
 $     211,943
  
 $             8.17
    
Average shares outstanding (000's) - Diluted
        
          24,409
      
             25,932
    
                       
     
Fourth Quarter Ended Dec. 26, 2015
      
Year-to-Date Dec. 26, 2015
        
Operating Income Reconciliation
                      
Operating income (loss) - as reported
    
 $          (17,000)
      
 $     131,695
        
                       
Restructuring expenses - before tax
    
               16,009
      
          39,852
        
                       
Impairment of goodwill and trade names - before tax
  
               26,770
      
          41,970
        
                       
Other non-recurring charges*
    
               24,010
      
          24,010
        
                       
Adjusted Operating Income
    
 $            49,789
      
 $     237,527
        
                       
Net Sales
    
 $          633,828
      
 $  2,618,924
        
                       
Operating Income as a % of Sales
    
-2.7%
      
5.0%
        
                       
Adjusted Operating Income as a % of Sales
    
7.9%
      
9.1%
        
                       

 
For the Fourth Quarter Ended Dec. 26, 2015
    
Segment Operating Income Reconciliation
Engineered Support Structures
  
Energy & Mining
  
Utility Support Structures
  
Coatings
  
Irrigation
  
Other/ Corporate
                       
Operating income (loss) - as reported
 $    13,850
  
 $          (21,523)
  
          (2,414)
  
           5,363
  
              8,305
  
                (20,581)
                       
Restructuring expenses
         4,159
  
                2,353
  
            1,578
  
           1,005
  
                 876
  
                   6,037
                       
Other non-recurring charges*
               -
  
                       -
  
          17,001
  
                  -
  
              7,009
  
                          -
                       
Impairment of goodwill and trade names
               -
  
               19,640
  
                  -
  
           6,530
  
                     -
  
600
                       
Adjusted Operating Income
 $    18,009
  
 $                470
  
 $       16,165
  
 $       12,898
  
 $          16,190
  
 $             (13,944)
                       
Net sales
 $   193,383
  
               78,764
  
        170,623
  
          75,731
  
           137,546
    
                       
Operating Income as a % of Sales
7.2%
  
-27.3%
  
-1.4%
  
7.1%
  
6.0%
  
NM
                       
Adjusted Operating Income as a % of Sales
9.3%
  
0.6%
  
9.5%
  
17.0%
  
11.8%
  
NM
 * Other non-recurring charges (pre-tax) are the provision for the Utility commercial settlement and the allowance for doubtful China receivable (Irrigation).
  On an after-tax basis, the line also includes $7.1 million of deferred income tax expense due to a 2% decrease in the U.K. corporate tax rate.
  NM - Not Meaningful

 


VALMONT INDUSTRIES INC Reports