|FOR IMMEDIATE RELEASE|
|Date:||July 22, 2020|
Valmont Reports Second Quarter 2020 Results;
Operating Performance Improves Despite COVID-19 Disruptions
Omaha, NE - Valmont Industries, Inc. (NYSE: VMI), a leading global provider of engineered products and services for infrastructure development and irrigation equipment and services for agriculture, today reported financial results for the second quarter ended June 27, 2020.
Second Quarter 2020 Highlights (all metrics compared to Second Quarter 2019 unless otherwise noted)
•Net Sales of $688.8 million declined 1.7%; excluding $13.7 million of unfavorable currency impacts, sales were similar to last year, as strong growth in Utility Support Structures was offset by lower sales in the Coatings segment due to COVID-19 impacts, as expected
•Operating Income of $43.4 million, or 6.3% of sales ($65.7 million or 9.5% adjusted1) compared to $61.5 million or 8.8% of sales last year; profitability improved in all segments except Coatings
•Diluted Earnings per Share of $1.06 ($2.00 adjusted1) compared to $1.82; GAAP EPS includes a $16.6 million pre-tax non-cash impairment charge against goodwill and trade names attributed to the Access Systems product line
•Generated strong operating cash flow of $88.3 million, driven by operating income and working capital management; cash and cash equivalents were $353.3 million at end of second quarter
•Completed two acquisitions in the Irrigation segment; purchased a majority stake in Solbras – Energia Solar do Brasil, and acquired 100% of the assets of PrecisionKingTM
•Received a large lattice structures order of approximately $17.0 million for the North American utility market
•Resumed operations at all Valmont manufacturing facilities
•Providing key assumptions and indications for the third quarter 2020
1 Please see Reg G reconciliation of GAAP sales, operating income, net earnings and EPS to Adjusted figures at end of document
The following information was filed by Valmont Industries Inc (VMI) on Thursday, July 23, 2020 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-Q Quarterly Report statement of earnings and operation as management may choose to highlight particular information in the press release.