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FULL YEAR: ALAMO GROUP'S SALES UP 15%, EARNINGS UP 16% - $162 MILLION
Alamo Group reports:

Seguin, TX - Alamo Group Inc. (NYSE: ALG) today reported results for the fourth quarter and year ended December 31, 2021.

Highlights

Fourth quarter net sales of $337.2 million, up 16.8%
- Vegetation Management net sales up 27.4%
- Industrial Equipment net sales up 3.6%
Record fourth quarter diluted EPS of $1.62, up 107.7%
Record net sales for the full year of $1.3 billion, up 14.7%
Record EBITDA for the full year 2021 of $162.1 million, up 16.4%(1)
Record full year diluted EPS of $6.75; up 38.3% year-over-year
Record backlog of $800.8 million at year-end 2021, up 126.2% versus prior year
Completed the acquisition of Timberwolf Ltd. in the United Kingdom

Results for the Quarter
At the beginning of the fourth quarter of 2021, the Company began reporting operating results on the basis of two new segments, namely, the Vegetation Management Division and the Industrial Equipment Division. The financial information and period to period comparisons we have presented in this release for 2021 and 2020 are based on the two new segments. Prior to the fourth quarter of 2021, the Company had been reporting its operating results on the basis of two segments which were the Industrial Division and Agricultural Division.

Fourth quarter 2021 net sales were $337.2 million compared to $288.6 million in the fourth quarter of 2020, an increase of 16.8%. Gross margin improved in the quarter compared to the fourth quarter of 2020 as pricing actions taken by the Company during 2021 began to offset the cost increases incurred in late 2020 and all of 2021. Fourth quarter net income improved 107.8% to $19.2 million, or $1.62 per diluted share, compared to net income of $9.3 million, or $0.78 per diluted share in the fourth quarter of 2020. The Company's backlog at the end of the quarter was $800.8 million, an increase of $155.7 million, or 24.1%, from the backlog at the end of the third quarter, and up 126.2% from the prior year end.

The Company's results for the fourth quarter continued to be materially impacted by persistent pandemic-related headwinds including supply chain disruptions, cost inflation, and skilled labor shortages.

Results for the Full Year
For the full year 2021, net sales rose to $1.3 billion, up 14.7% compared to $1.2 billion for the full year 2020. Net income for the year was $80.2 million, or $6.75 per diluted share, compared to net income of $57.8 million, or $4.88 per diluted share in 2020, a year-over-year improvement of 38.8%.

Net income for the full year 2021 included a $0.8 million charge for the acceleration of stock grants for our previous CEO who retired in the third quarter of 2021, while comparable results for full year 2020 included an inventory step-up charge of $3.5 million related to the Morbark acquisition. Adjusted net income for the full year of 2021 and 2020, excluding the above mentioned charges, was $81.1 million for 2021 versus $61.3 million for 2020, an increase of 32.2%.

Throughout 2021, the Company broadly experienced strong demand for its products and net sales set new Company records in each quarter of the year. The Company's record net sales growth was achieved despite the significant supply chain disruptions and skilled labor shortages that the Company experienced during the year.

To view the complete report, click here.


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