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EX-99.2 - EX-99.2 - VALMONT INDUSTRIES INCa17-6921_1ex99d2.htm
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Exhibit 99.1

 

 

News Release

For Immediate Release

 

Contact:

Jeff Laudin

February 21, 2017

Phone:

402-963-1158

 

Fax:

402-963-1198

 

 

Valmont Reports Fourth Quarter and

Fiscal Year 2016 Results

 

Omaha, NE - Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and mechanized irrigation equipment and services for agriculture, today reported fourth quarter and full year 2016 results.

 

 

 

Fourth Quarter

 

Year-to-date

 

 

 

14/13 Weeks Ended

 

53/52 Weeks Ended

 

Summarized Financial Information

 

31-Dec-16

 

26-Dec-15

 

31-Dec-16

 

26-Dec-15

 

Net sales

 

$

674,575

 

$

633,828

 

$

2,521,676

 

$

2,618,924

 

Operating income

 

56,093

 

(17,000

)

243,504

 

131,695

 

Operating income as a % of net sales GAAP

 

8.3

%

-2.7

%

9.7

%

5.0

%

Operating income Adjusted(1)

 

63,434

 

49,789

 

255,929

 

237,527

 

Operating income as a % of net sales Adjusted(1)

 

9.4

%

7.9

%

10.1

%

9.1

%

Net earnings - GAAP

 

70,064

 

(30,561

)

173,232

 

40,117

 

Net earnings - Adjusted(1)

 

36,343

 

31,104

 

145,767

 

131,798

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS - GAAP net earnings

 

$

3.10

 

$

(1.34

)

$

7.63

 

$

1.71

 

Average Shares Outstanding - Diluted

 

22,611

 

22,892

 

22,709

 

23,405

 

 

 

 

 

 

 

 

 

 

 

Diluted EPS - Adjusted net earnings(1)

 

$

1.61

 

$

1.35

 

$

6.42

 

$

5.63

 

 

 

 

 

 

 

 

 

 

 

Average Shares Outstanding - Diluted

 

22,611

 

23,018

 

22,709

 

23,405

 

 

Fourth Quarter Highlights:

 

·                  Revenues increased 6% due to improved volumes in the Engineered Support Structures, Utility Support Structures and Energy and Mining Segments

 

·                  GAAP operating income increased $73.1 million and adjusted operating income(1) increased 27%, or $13.6 million; all segments realized improved profitability except Coatings

 

·                  GAAP diluted earnings per share (EPS) were $3.10 compared to a loss of $1.34 in 2015 and adjusted diluted EPS(1) were $1.61 and $1.35 in 2016 and 2015, respectively

 

·                  Q4 included two non-cash, non-recurring transactions with positive effect; the removal of a contingent liability and an increase in deferred tax assets related to a legal entity reorganization

 


(1)         Please see Reg G reconciliation of GAAP operating income, net earnings and EPS to Adjusted figures at end of document.

 

Valmont Industries, Inc. · One Valmont Plaza · Omaha, Nebraska 68154 U.S.A. ·

 

-more-

 



 

Total Year Highlights:

 

·                  Full-year revenues declined 4% mostly due to the revenue impact of lower cost steel in the Utility Support Structures Segment and foreign exchange translation

 

·                  GAAP operating income increased $111.8 million and adjusted operating income(1) increased 8%, or $18.4 million

 

·                  GAAP diluted EPS were $7.63, compared to $1.71 last year and adjusted diluted EPS(1) were $6.42, compared to last year’s $5.63, up 14%

 

·                  The Company completed its announced restructuring plans and incurred $12.4 million of pre-tax restructuring expense in 2016; total savings realized from restructuring actions approximate $22 million

 

·                  The Company repurchased 441,000 shares for $53.8 million; $132 million remains on the current authorization

 

“We are pleased with our revenue growth in the fourth quarter,” said Mogens C. Bay, Valmont’s Chairman and Chief Executive Officer. “Utility Support Structures Segment sales benefited from a stronger North American market. The Engineered Support Structures and Energy and Mining Segments had double-digit revenue gains. Coatings Segment sales equaled last year, as internal utility volumes offset lower external demand. Irrigation Segment sales were equivalent to last year, with modestly lower North American and improved international sales.

 

“For the fourth quarter, GAAP operating income was 8.3% of sales, and 9.4% on an adjusted basis(1). For the year, GAAP operating income was 9.7% of sales, and 10.1% on an adjusted basis(1).”

 

Fourth Quarter Segment Review

 

Infrastructure-related

 

Engineered Support Structures (32% of Sales)

 

Poles, towers and components for the global lighting, traffic and wireless communication markets, and highway safety products.

 

Sales of $216.5 million were 12% higher than last year as a result of improved wireless communication product sales in North America and the Asia Pacific region. In North America, sales of lighting and traffic products were comparable with last year.

 

In Europe, sales of lighting and traffic structures were similar to last year as general economic conditions are limiting growth in infrastructure investment.

 


(1)         Please see Reg G reconciliation of GAAP operating income, net earnings and EPS to Adjusted figures at end of document.

 

-more-

 



 

Operating income was $16.6 million or 7.7% of sales ($19.2 million and 8.9% adjusted(1)) compared to $13.9 million, or 7.2% of sales in 2015 ($18.0 million and 9.3% adjusted(1)). Higher steel costs during the quarter modestly pressured margins in the segment.

 

Utility Support Structures (27% of Sales)

 

Steel and concrete structures for the global electric utility industry.

 

Sales of $185.1 million increased 8.5% year-over-year driven by higher volumes and pricing that rose in-line with higher average steel costs earlier in the year. The ongoing needs to improve grid reliability and interconnect regional transmission grids are supporting market growth.

 

Operating income increased to $20.8 million or 11.2% of sales, compared to a loss of $2.4 million in 2015 ($16.2 million and 9.5% adjusted(1)), benefitting from higher volume, operational leverage, improved pricing and productivity improvements.

 

Coatings Segment (11% of Sales)

 

Global galvanizing, painting and anodizing services.

 

Sales of $75.5 million were equal to last year. Higher sales in the Asia-Pacific region offset lower North American sales, where sales to external customers were lower than last year, largely due to weaker demand in the alternative energy markets. Sales to other Valmont segments helped to partly offset lower external volumes.

 

Operating income was $9.5 million, or 12.5% of sales, ($9.8 million and 13.0% adjusted(1)) compared to $5.4 million, or 7.1% of sales in 2015 ($12.9 million and 17.0% adjusted(1)). In North America, in addition to lower volumes, the sales mix was unfavorable with greater internal sales. Rising zinc costs pressured margins as price recovery lagged somewhat. Included in Q4 results were startup costs associated with a new facility in Texas.

 

Energy and Mining Segment (13% of Sales)

 

Offshore structures, engineered access systems and grinding media.

 

Segment sales of $87.9 million were 12% higher than last year with gains across the major product lines. Offshore wind structures and component sales helped offset continued soft demand for oil and gas exploration structures. Access systems sales increased led by improved sales into architectural and construction markets in Australia. Grinding media demand increased partly due to customer purchase patterns in light of rising steel costs.

 

Operating income increased to $2.7 million or 3.0% of sales ($6.2 million and 7.1% adjusted(1)) compared to a loss of $21.5 million in 2015, (operating income of $0.5 million and 0.6% adjusted(1)). The increase was driven by improved operating performance, in part due to restructuring actions, as well as higher sales.

 


(1)         Please see Reg G reconciliation of GAAP operating income, net earnings and EPS to Adjusted figures at end of document.

 

-more-

 



 

Agriculture-related

 

Irrigation Segment (20% of Sales)

 

Agricultural irrigation equipment, parts, services and tubular products.

 

Global sales of $136.6 million were similar to last year. In North America, sales declined modestly. International sales rose, led by a stronger Latin American market. Tubing sales were similar to last year.

 

Operating income was higher at $17.1 million, or 12.5% of sales ($17.5 million and 12.8% adjusted(1)) compared to $8.3 million, or 6.0% of sales in 2015 ($16.2 million and 11.8% adjusted(1)).The improvement in operating income was largely due to the contribution of stronger international results and lower SG&A.

 

2017 Outlook:

 

For 2017, the company is issuing annual guidance for diluted EPS to increase approximately 10% from adjusted EPS(1) of $6.42.

 

Assumptions:

 

·                  Revenue growth — mid single digit with each segment expecting positive comparisons

·                  Raw material costs — up early in year, moderate later

·                  Foreign exchange translation effects minor

·                  Tax rate of 31%

 

“We expect to meet all of our financial goals as outlined at our February 2016 investor day,” Mr. Bay said. “For 2017, revenue should grow around 5% without acquisitions. While EPS is expected to decrease on a GAAP basis from $7.63, we expect 10% growth over the $6.42 adjusted result. We also expect to meet or exceed our 10% return on invested capital and more than one-time free cash flow conversion targets.”

 

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#:52411634 or via Webcast at 8:00 a.m. CST February 22, 2017 at https://engage.vevent.com/rt/valmontindustries_ao~52411634. A replay is available through the above link or by telephone (855) 859-2056 or +44 (0)1452550000, Conference ID#:52411634 beginning February 22, 2017 at 10:00 a.m. CST through 12:00 p.m. CST on March 2, 2017. The Company’s slide presentation for the call will be simultaneously available on the investor relations tab at www.valmont.com under Investor Relations.

 


(1)         Please see Reg G reconciliation of GAAP operating income, net earnings and EPS to Adjusted figures at end of document.

 

-more-

 



 

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.

 


(1)         Please see Reg G reconciliation of GAAP operating income, net earnings and EPS to Adjusted figures at end of document.

 

-more-

 



 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS

(Dollars in thousands, except per share amounts)

(unaudited)

 

 

 

Fourth Quarter

 

Year-to-Date

 

 

 

14/13 Weeks Ended

 

53/52 Weeks Ended

 

 

 

31-Dec-16

 

26-Dec-15

 

31-Dec-16

 

26-Dec-15

 

Net sales

 

$

674,575

 

$

633,828

 

$

2,521,676

 

$

2,618,924

 

Cost of sales

 

509,441

 

504,548

 

1,865,433

 

1,997,891

 

Gross profit

 

165,134

 

129,280

 

656,243

 

621,033

 

Selling, general and administrative expenses

 

109,041

 

119,510

 

412,739

 

447,368

 

Impairment of goodwill and intangible assets

 

 

26,770

 

 

41,970

 

Operating income (loss)

 

56,093

 

(17,000

)

243,504

 

131,695

 

Other income (expense)

 

 

 

 

 

 

 

 

 

Interest expense

 

(11,133

)

(11,141

)

(44,409

)

(44,621

)

Interest income

 

816

 

901

 

3,105

 

3,296

 

Other

 

17,802

 

2,879

 

18,254

 

2,637

 

 

 

7,485

 

(7,361

)

(23,050

)

(38,688

)

Earnings (loss) before income taxes and equity in earnings of nonconsolidated subsidiaries

 

63,578

 

(24,361

)

220,454

 

93,007

 

Income tax expense

 

(7,679

)

4,554

 

42,063

 

47,427

 

Earnings (loss) before equity in earnings of nonconsolidated subsidiaries

 

71,257

 

(28,915

)

178,391

 

45,580

 

Equity in earnings of nonconsolidated subsidiaries

 

 

(247

)

 

(247

)

Net earnings (loss)

 

71,257

 

(29,162

)

178,391

 

45,333

 

Less: Earnings attributable to non-controlling interests

 

(1,193

)

(1,399

)

(5,159

)

(5,216

)

Net earnings (loss) attributable to Valmont Industries, Inc.

 

$

70,064

 

$

(30,561

)

$

173,232

 

$

40,117

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (000’s) - Basic

 

22,439

 

22,892

 

22,562

 

23,288

 

Earnings (loss) per share - Basic

 

$

3.12

 

$

(1.34

)

$

7.68

 

$

1.72

 

 

 

 

 

 

 

 

 

 

 

Average shares outstanding (000’s) - Diluted

 

22,611

 

22,892

 

22,709

 

23,405

 

Earnings (loss) per share - Diluted

 

$

3.10

 

$

(1.34

)

$

7.63

 

$

1.71

 

 

 

 

 

 

 

 

 

 

 

Cash dividends per share

 

$

0.375

 

$

0.375

 

$

1.500

 

$

1.500

 

 

-more-

 



 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OPERATING RESULTS

(Dollars in thousands)

(unaudited)

 

 

 

Fourth Quarter

 

Year-to-Date

 

 

 

14/13 Weeks Ended

 

53/52 Weeks Ended

 

 

 

31-Dec-16

 

26-Dec-15

 

31-Dec-16

 

26-Dec-15

 

 

 

 

 

 

 

 

 

 

 

Net sales

 

 

 

 

 

 

 

 

 

Engineered Support Structures

 

$

216,454

 

$

193,383

 

$

800,525

 

$

771,453

 

Energy and Mining

 

87,944

 

78,764

 

322,637

 

337,859

 

Utility Support Structures

 

185,119

 

170,623

 

631,551

 

674,577

 

Coatings

 

75,520

 

75,731

 

289,481

 

302,385

 

Infrastructure products

 

565,037

 

518,501

 

2,044,194

 

2,086,274

 

 

 

 

 

 

 

 

 

 

 

Irrigation

 

136,628

 

137,546

 

575,204

 

612,201

 

Other

 

 

1,046

 

 

7,247

 

Less: Intersegment sales

 

(27,091

)

(23,265

)

(97,722

)

(86,798

)

Total

 

$

674,575

 

$

633,828

 

$

2,521,676

 

$

2,618,924

 

 

 

 

 

 

 

 

 

 

 

Operating Income (loss)

 

 

 

 

 

 

 

 

 

Engineered Support Structures

 

$

16,645

 

$

13,850

 

$

71,398

 

$

59,592

 

Energy and Mining

 

2,667

 

(21,523

)

11,851

 

(18,762

)

Utility Support Structures

 

20,751

 

(2,414

)

69,077

 

37,847

 

Coatings

 

9,464

 

5,363

 

46,596

 

27,369

 

Infrastructure products

 

49,527

 

(4,724

)

198,922

 

106,046

 

 

 

 

 

 

 

 

 

 

 

Irrigation

 

17,074

 

8,305

 

87,835

 

84,537

 

Other

 

 

(6,039

)

 

(9,802

)

Corporate

 

(10,508

)

(14,542

)

(43,253

)

(49,086

)

Total

 

$

56,093

 

$

(17,000

)

$

243,504

 

$

131,695

 

 

The backlog of orders for the principal products manufactured and marketed was $602 million at the end of fiscal 2016 and $591 million at the end of the 2015 fiscal year. We anticipate that most of the backlog of orders will be filled during fiscal year 2017. At year-end, the segments with backlog were as follows (dollar amounts in millions):

 

 

 

31-Dec-16

 

26-Dec-15

 

Engineered Support Structures

 

$

171

 

$

148

 

Energy and Mining

 

99

 

111

 

Utility Support Structures

 

268

 

245

 

Irrigation

 

64

 

87

 

Coatings

 

 

 

Other

 

 

 

 

 

$

602

 

$

591

 

 

Valmont has aggregated its business segments into five reportable segments as follows.

 

Engineered Support Structures: This segment consists of the manufacture of engineered  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.

 

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VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)

(unaudited)

 

 

 

31-Dec-16

 

26-Dec-15

 

ASSETS

 

 

 

 

 

Current assets:

 

 

 

 

 

Cash and cash equivalents

 

$

399,948

 

$

349,074

 

Accounts receivable, net

 

439,342

 

466,443

 

Inventories

 

350,028

 

340,672

 

Prepaid expenses

 

57,297

 

46,137

 

Refundable and deferred income taxes

 

6,601

 

24,526

 

Total current assets

 

1,253,216

 

1,226,852

 

Property, plant and equipment, net

 

518,335

 

532,489

 

Goodwill and other assets

 

620,180

 

633,041

 

 

 

$

2,391,731

 

$

2,392,382

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS’ EQUITY

 

 

 

 

 

Current liabilities:

 

 

 

 

 

Current installments of long-term debt

 

$

851

 

$

1,077

 

Notes payable to banks

 

746

 

976

 

Accounts payable

 

177,488

 

179,983

 

Accrued expenses

 

162,318

 

175,947

 

Dividend payable

 

8,445

 

8,571

 

Total current liabilities

 

349,848

 

366,554

 

Long-term debt, excluding current installments

 

754,795

 

756,918

 

Defined benefit pension liability

 

209,470

 

179,323

 

Other long-term liabilities

 

95,032

 

124,376

 

Shareholders’ equity

 

982,586

 

965,211

 

 

 

$

2,391,731

 

$

2,392,382

 

 

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollars in thousands)

(unaudited)

 

 

 

Year to Date

 

Year to Date

 

 

 

31-Dec-16

 

26-Dec-15

 

Cash flows from operating activities

 

 

 

 

 

Net Earnings

 

$

178,391

 

$

45,333

 

Depreciation and amortization

 

82,417

 

91,144

 

Impairment of assets - restructuring activities

 

1,099

 

19,836

 

Impairment of goodwill and trade names

 

 

41,970

 

Change in working capital

 

10,190

 

71,891

 

Deferred income tax (benefit) expense

 

(23,685

)

4,858

 

Other

 

(29,244

)

(2,765

)

Net cash flows from operating activities

 

219,168

 

272,267

 

 

 

 

 

 

 

Cash flows from investing activities

 

 

 

 

 

Purchase of property, plant, and equipment

 

(57,920

)

(45,468

)

Acquisitions, net of cash acquired

 

 

(12,778

)

Other

 

4,871

 

10,075

 

Net cash flows from investing activities

 

(53,049

)

(48,171

)

 

 

 

 

 

 

Cash flows from financing activities

 

 

 

 

 

Proceeds from long-term borrowings

 

 

68,000

 

Principal payments on borrowings

 

(2,206

)

(81,951

)

Purchase of treasury shares

 

(53,800

)

(168,983

)

Dividends paid

 

(34,053

)

(35,357

)

Other

 

(5,099

)

(1,714

)

Net cash flows from financing activities

 

(95,158

)

(220,005

)

Effect of exchange rates on cash and cash equivalents

 

(20,087

)

(26,596

)

Net change in cash and cash equivalents

 

50,874

 

(22,505

)

Cash and cash equivalents - beginning of year

 

349,074

 

371,579

 

Cash and cash equivalents - end of period

 

399,948

 

349,074

 

 

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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 impact on (a) diluted earnings per share of (1) restructuring costs, (2) deferred income tax (benefit) expense arising from changes in foreign tax rates and an international legal reorganization (3) goodwill and trade name impairment charges, and (4) other non-recurring expenses (including the reversal of a contingent liability), and (b) segment operating income of restructuring costs, impairments, and non-recurring expenses. 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 as a number of non-recurring transactions were recognized in 2016 and 2015, some of which are non-cash.

 

 

 

Fourth Quarter 
Ended Dec. 31, 
2016

 

Diluted 
earnings per 
share

 

Year-to-Date 
Dec. 31, 2016

 

Diluted earnings
per share

 

Net earnings (loss) attributable to Valmont Industries, Inc. - as reported

 

$

70,064

 

$

3.10

 

$

173,232

 

$

7.63

 

 

 

 

 

 

 

 

 

 

 

Restructuring expenses

 

7,341

 

0.32

 

12,425

 

0.55

 

 

 

 

 

 

 

 

 

 

 

Reversal of contingent liability

 

(16,591

)

(0.73

)

(16,591

)

(0.73

)

 

 

 

 

 

 

 

 

 

 

Fair market value adjustment, Delta EMD

 

(332

)

(0.01

)

586

 

0.03

 

 

 

 

 

 

 

 

 

 

 

Total pre-tax adjustments

 

(9,582

)

(0.42

)

(3,580

)

(0.16

)

 

 

 

 

 

 

 

 

 

 

Tax effect of adjustments **

 

(1,574

)

(0.07

)

(3,180

)

(0.14

)

 

 

 

 

 

 

 

 

 

 

Deferred income tax benefit - non-recurring

 

(22,565

)

(1.00

)

(20,705

)

(0.91

)

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to Valmont Industries, Inc. - Adjusted

 

$

36,343

 

$

1.61

 

$

145,767

 

$

6.42

 

Average shares outstanding (000’s) - Diluted

 

 

 

22,611

 

 

 

22,709

 

 

 

 

Fourth Quarter 
Ended Dec. 26, 
2015

 

Diluted 
earnings per 
share

 

Year-to-Date 
Dec. 26, 2015

 

Diluted earnings 
per share

 

Net earnings attributable to Valmont Industries, Inc. - as reported

 

$

(30,561

)

$

(1.34

)

$

40,117

 

$

1.71

 

 

 

 

 

 

 

 

 

 

 

Restructuring expenses

 

16,009

 

0.70

 

39,852

 

1.70

 

 

 

 

 

 

 

 

 

 

 

Impairment of goodwill and trade names

 

26,770

 

1.16

 

41,970

 

1.80

 

 

 

 

 

 

 

 

 

 

 

Other one-time charges *

 

24,010

 

1.04

 

24,010

 

1.03

 

 

 

 

 

 

 

 

 

 

 

Total pre-tax adjustments

 

66,789

 

2.90

 

105,832

 

4.52

 

 

 

 

 

 

 

 

 

 

 

Tax effect of adjustments **

 

(12,244

)

(0.53

)

(21,271

)

(0.91

)

 

 

 

 

 

 

 

 

 

 

Deferred income tax expense - non-recurring***

 

7,120

 

0.31

 

7,120

 

0.30

 

 

 

 

 

 

 

 

 

 

 

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

 

 


* Other non-recurring charges (pre-tax) in 2015 are the $17,000 provision for a Utility commercial settlement and the $7,010 recognized allowance for doubtful China receivable (Irrigation).

** The tax effect of adjustments is calculated based on the income tax rate in each applicable jurisdiction, except the reversal of the contingent liability in 2016 and the impairment of goodwill, both of which are not taxable.

***The $7,120 of deferred income tax expense is due to a 2% decrease in the U.K. corporate tax rate in 2015.

 

-more-

 


 


 

VALMONT INDUSTRIES, INC. AND SUBSIDIARIES

SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED OPERATING INCOME

REGULATION G RECONCILIATION (Continued)

 

Operating Income Reconciliation

 

Year-to-Date 
Dec. 31, 2016

 

Year-to-Date 
Dec. 26, 2015

 

Increase 2016 
from 2015

 

 

 

 

 

 

 

 

 

Operating income (loss) - as reported

 

$

243,504

 

$

131,695

 

$

111,809

 

 

 

 

 

 

 

 

 

Restructuring expenses

 

12,425

 

39,852

 

 

 

 

 

 

 

 

 

 

 

Impairment of goodwill and trade names

 

 

41,970

 

 

 

 

 

 

 

 

 

 

 

Other non-recurring charges

 

 

24,010

 

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income

 

$

255,929

 

$

237,527

 

$

18,402

 

 

 

 

 

 

 

 

 

Net Sales

 

$

2,521,676

 

$

2,618,924

 

 

 

 

 

 

 

 

 

 

 

Operating Income as a % of Sales

 

9.7

%

5.0

%

 

 

 

 

 

 

 

 

 

 

Adjusted Operating Income as a % of Sales

 

10.1

%

9.1

%

 

 

 

For the Fourth Quarter Ended Dec. 31, 2016

 

Segment Operating Income Reconciliation

 

Operating 
Income- As 
Reported

 

Restructuring 
expenses

 

Adjusted 
Operating 
Income

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

Engineered Support Structures

 

$

16,645

 

$

2,561

 

$

19,206

 

$

216,454

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

7.7

%

 

 

8.9

%

 

 

Utility Support Structures

 

20,751

 

 

20,751

 

185,119

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

11.2

%

 

 

11.2

%

 

 

Energy & Mining

 

2,667

 

3,571

 

6,238

 

87,944

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

3.0

%

 

 

7.1

%

 

 

Coatings

 

9,464

 

361

 

9,825

 

75,520

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

12.5

%

 

 

13.0

%

 

 

Irrigation

 

17,074

 

468

 

17,542

 

136,628

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

12.5

%

 

 

12.8

%

 

 

Corporate/Other

 

(10,508

)

380

 

(10,128

)

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

 

$

56,093

 

$

7,341

 

$

63,434

 

$

674,575

 

 

 

 

 

 

 

 

 

 

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

8.3

%

 

 

9.4

%

 

 

 

For the Fourth Quarter Ended Dec. 26, 2015

 

Segment Operating Income Reconciliation

 

Operating 
Income- As 
Reported

 

Restructuring
expenses

 

Impairment of
goodwill and 
TM

 

Other Non-
recurring 
expenses

 

Adjusted 
Operating 
Income

 

Net Sales

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Engineered Support Structures

 

$

13,850

 

$

4,159

 

 

 

 

 

$

18,009

 

$

193,383

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

7.2

%

 

 

 

 

 

 

9.3

%

 

 

Utility Support Structures

 

(2,414

)

1,578

 

 

 

17,001

 

16,165

 

170,623

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

-1.4

%

 

 

 

 

 

 

9.5

%

 

 

Energy & Mining

 

(21,523

)

2,353

 

19,640

 

 

 

470

 

78,764

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

-27.3

%

 

 

 

 

 

 

0.6

%

 

 

Coatings

 

5,363

 

1,005

 

6,530

 

 

 

12,898

 

75,731

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

7.1

%

 

 

 

 

 

 

17.0

%

 

 

Irrigation

 

8,305

 

876

 

 

 

7,009

 

16,190

 

137,546

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

6.0

%

 

 

 

 

 

 

11.8

%

 

 

Corporate/Other

 

(20,581

)

6,038

 

600

 

 

 

(13,943

)

NM

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Consolidated Results

 

$

(17,000

)

$

16,009

 

$

26,770

 

$

24,010

 

$

49,789

 

$

633,828

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Op Inc. & Adjusted Op Inc. as a % of Sales

 

-2.7

%

 

 

 

 

 

 

7.9

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Increase 4th qtr 2016 from 2015

 

$

73,093

 

 

 

 

 

 

 

$

13,645

 

 

 

 

NM - Not Meaningful

 

END