ALG - Alamo Group Inc. (ALG) Q4 2023 Earnings Call Transcript

2024-02-23 11:59:02 ET

Alamo Group Inc. (ALG)

Q4 2023 Earnings Conference Call

February 23, 2024 10:00 AM ET

Company Participants

Edward Rizzuti - Executive Vice President, General Counsel & Secretary

Jeff Leonard - President & Chief Executive Officer

Richard Wehrle - Executive Vice President, Chief Financial Officer & Treasurer

Conference Call Participants

Mig Dobre - Baird

Chris Moore - CJS Securities

Mike Shlisky - D.A. Davidson

Tim Moore - EF Hutton

Presentation

Edward Rizzuti

Jeff Leonard, President and Chief Executive Officer; and Richard Wehrle, Executive Vice President, Chief Financial Officer, and Treasurer. Management will make some opening remarks and then we will open-up the line for your questions.

During the call today, management may reference certain non-GAAP numbers in their remarks. Reconciliations of these non-GAAP results to applicable GAAP numbers are included in the attachments to our earnings release. Before turning the call over to Jeff, I'd like to make a few comments about forward-looking statements. We will be making forward-looking statements today that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995.

Forward-looking statements involve known and unknown risks and uncertainties which may cause the company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following; adverse economic conditions which could lead to a reduction in overall market demand, supply chain disruptions, labor constraints competition, weather, seasonality, currency-related issues, geopolitical events, and other risk factors listed from time-to-time in the company's SEC reports. The company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

I would now like to introduce Jeff Leonard. Jeff, please go ahead.

Jeff Leonard

Thank you, Ed. I’d like to again thank everyone, who's joined us on the conference call today and to express our appreciation for your continued interest in Alamo. The fourth quarter shaped up broadly in line with our expectations and we were very pleased with the financial results we reported today, despite gathering headwinds in several of our served markets, our teams achieved record quarterly sales and earnings for the ninth consecutive quarter.

I would now like to turn the call over to Richard Wehrle, who will take us through a review of our financial results for the fourth quarter. I will then provide additional comments on the results and say a few words about the outlook as we enter 2024. Following our formal remarks, we look forward to taking your questions. Richard, please go ahead.

Richard Wehrle

Thanks, Jeff, and good morning, everyone. Alamo Group's fourth quarter 2023 closed with an excellent performance that produced record net sales and net income, driven by continued strong demand of our products. Fourth quarter consolidated net sales were $417.5 million, an increase of 8% compared to $386.6 million in the fourth quarter of last year. Gross margin dollars increased by $11 million and gross margin percent was up almost 80 basis points in the quarter compared to the fourth quarter of 2022. Both margin dollars and percentage increase were driven by higher volume and price initiatives, we've had in place along with improved productivity....

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