Financial

Moving stock To Focus: Douglas Dynamics, Inc. (NYSE: PLOW)

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Douglas Dynamics, Inc. (NYSE: PLOW) closed with decline of -0.10% to $47.95. Recent traded volume was 51,991 million shares versus to it an average volume of 72,553 million shares. The company holds 22.7M million shares outstanding and market cap of 1.089B billion. The stock’s day range was recorded between a low of $46.90 and a high $48.00. The one year high of the company is $48.90 and the one year low is $30.23.

Douglas Dynamics, Inc. (PLOW) reported financial results for the first quarter ended March 31, 2018.

Consolidated First Quarter 2018 Results

In the first quarter of 2018, net sales were $84.0M, representing a 16% increase over the first quarter of 2017 net sales of $72.2M. The increase was driven by improved snowfall and overall increased demand contrast to the same period last year.

Interest expense was $3.9M for the three months ended March 31, 2018, which was lower than the $5.3M incurred in the same period in the previous year. The decrease in interest expense for the first quarter of 2018 was Because of a lower interest rate, as well as a lower debt balance following the refinancing of the Company’s debt completed in the first and third quarters of 2017. Additionally, the Company incurred $0.9M of financing costs in the first quarter of 2017 related to the amendment to its Term Loan Credit Contract.

The Company’s effective tax benefit was 40.2% and 45.1% for the three months ended March 31, 2018 and 2017, respectively. The effective tax benefit for the three months ended March 31, 2018 was lower than the corresponding period in 2017Because of the lower corporate tax rate resulting from the passage of the Tax Cuts and Jobs Act that went into effect December 22, 2017, slightly offset by a raise in benefit related to stock compensation.

Net loss was $1.9M, or $0.08 per diluted share, contrast to net loss of $3.3M, or ($0.14) per diluted share, in the first quarter of 2017, a decrease in net loss of $1.4M.  As a percentage of net sales, net loss was 2.2% for the three months ended March 31, 2018 contrast to 4.5% for the three months ended March 31, 2017.

Adjusted net loss was $0.7M, or $0.03 per diluted share, contrast with adjusted net loss of $2.4M, or $0.11 per diluted share, for the previous year.

The Company stated adjusted EBITDA of $7.1M in the first quarter of 2018 contrast to $5.2M in the first quarter of 2017, which relates to improved snowfall and overall increased demand contrast to the same period last year.

Douglas Dynamics, Inc.’s (PLOW) price volatility for a month noted as 2.20% however its price volatility for a week documented as 2.26%. The corporation holds 22.23 million outstanding shares and its 22.01 million shares were floated in the market. The stock established a positive trend of 2.02% in last week and indicated rise of 1.91% in previous month.

Work Truck Attachments Section First Quarter 2018 Results

Work Truck Attachments recorded revenue of $47.5M, resulting in income from operations of $4.1M, contrast to $43.6M in revenue and income from operations of $2.0M in the first quarter of the previous year.  Both revenue and operating income increased Because of increased snowfall across core markets during the quarter when contrast to last year and ongoing strength of select light pickup truck sales. These factors positively influenced sales of commercial snow and ice control products and parts and accessories, and offset the negative impact of ongoing chassis availability issues for municipal products.

Balance Sheet and Liquidity

During the first quarter of 2018, the Company stated net cash provided by operating activities of $14.3M, a raise of $10.0M when contrast to net cash provided by operating activities of $4.3M in the same period last year. The increase in cash provided by operating activities was Because of favorable changes in working capital of $7.3M and by a $2.7M increase in net income adjusted for reconciling items.

Inventory was $94.9M at the end of the first quarter of 2018, contrast to $98.4M at the end of the first quarter of 2017. The decrease relates to increases in demand at both Work Truck Attachments and Work Truck Solutions.

Accounts receivable at the end of the first quarter of 2018 were $41.1M, as contrast to $41.9M at the end of the first quarter of 2017.

Dividend Update

As before stated, on February 26, 2018, the Company reported a quarterly cash dividend of $0.265 per share of the Company’s ordinary stock.  This dividend represented a raise of 10% over the previous quarterly dividend and equates to a projected full year yearly increase in the dividend of $0.10 per diluted share. The dividend was paid on March 30, 2018 to stockholders of record as of the close of business on March 22, 2018.

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