Alamo Group Inc. (ALG, Financial) filed Quarterly Report for the period ended 2009-06-30.
Alamo Group Inc. has a market cap of $131.56 million; its shares were traded at around $13.19 with and P/S ratio of 0.24. The dividend yield of Alamo Group Inc. stocks is 1.82%. Alamo Group Inc. had an annual average earning growth of 5.7% over the past 10 years.
The Companys net income after tax was $2,992,000 or $.30 per share on a diluted basis for the second quarter of 2009 compared to $5,565,000 or $.56 per share on a diluted basis for the second quarter of 2008. The decrease of $2,573,000 resulted from the factors described above.
The Companys net income after tax was $4,535,000 or $0.45 per share on a diluted basis for the first six months of 2009 compared to $8,397,000 or $0.84 per share on a diluted basis for the first six months of 2008. The decrease of $3,862,000 resulted from the factors described above.
On May 7, 2007, the Company entered into the Fifth Amended and Restated Revolving Credit Agreement with Bank of America, N.A., JPMorgan Chase Bank, Guaranty Bank and Rabobank, as its lenders. The Amended and Restated Revolving Credit Agreement provides for a $125 million unsecured revolving line of credit for five years with the ability to expand the facility to $175 million, subject to bank approval. In addition to the extended term of the loan to 2012, other major changes were improvements in the leverage ratio, minimum asset coverage ratio and increase in annual allowable capital expenditures up to $17.5 million. The banks agreed to eliminate the fixed charge coverage ratio and minimum net worth requirement along with a reduction in the applicable interest rate margin. The applicable interest margin fluctuates quarterly either up or down based upon the Companys leverage ratio.
The current warranty reserve balance was $5,069,000 at June 30, 2009 and $5,409,000 at December 31, 2008. The majority of the decrease came from lower reserves in the Companys U.S. Industrial Division. The Company has a long-term liability for extended warranty policies sold to customers in the amount of $284,000 at June 30, 2009 and $331,000 at December 31, 2008 with a life expectancy of 1 to 5 years.
During most of 2008, the self insured retention (S.I.R.) for U.S. product liability coverage for rotary mowers was $150,000 while the S.I.R. for all other products was at $100,000 per claim. On September 30, 2008 the Company renewed its insurance coverage and the S.I.R. for rotary mowers was reduced from $150,000 to $100,000. The S.I.R. for all other products remained at $100,000. The Company also carries product liability coverage in Europe, Canada and Australia which contain substantially lower S.I.R.s or deductibles.
Read the The complete ReportALG is in the portfolios of Third Avenue Management.
Alamo Group Inc. has a market cap of $131.56 million; its shares were traded at around $13.19 with and P/S ratio of 0.24. The dividend yield of Alamo Group Inc. stocks is 1.82%. Alamo Group Inc. had an annual average earning growth of 5.7% over the past 10 years.
Highlight of Business Operations:
Selling, general and administrative expense (SG&A) was $18,945,000 (16.7% of net sales) during the second quarter of 2009 compared to $21,104,000 (13.9% of net sales) during the same period of 2008, a decrease of $2,159,000. The Company continued to adjust its workforce during the quarter with reductions in headcounts along with lower commissions due to reduced sales volumes.The Companys net income after tax was $2,992,000 or $.30 per share on a diluted basis for the second quarter of 2009 compared to $5,565,000 or $.56 per share on a diluted basis for the second quarter of 2008. The decrease of $2,573,000 resulted from the factors described above.
The Companys net income after tax was $4,535,000 or $0.45 per share on a diluted basis for the first six months of 2009 compared to $8,397,000 or $0.84 per share on a diluted basis for the first six months of 2008. The decrease of $3,862,000 resulted from the factors described above.
On May 7, 2007, the Company entered into the Fifth Amended and Restated Revolving Credit Agreement with Bank of America, N.A., JPMorgan Chase Bank, Guaranty Bank and Rabobank, as its lenders. The Amended and Restated Revolving Credit Agreement provides for a $125 million unsecured revolving line of credit for five years with the ability to expand the facility to $175 million, subject to bank approval. In addition to the extended term of the loan to 2012, other major changes were improvements in the leverage ratio, minimum asset coverage ratio and increase in annual allowable capital expenditures up to $17.5 million. The banks agreed to eliminate the fixed charge coverage ratio and minimum net worth requirement along with a reduction in the applicable interest rate margin. The applicable interest margin fluctuates quarterly either up or down based upon the Companys leverage ratio.
The current warranty reserve balance was $5,069,000 at June 30, 2009 and $5,409,000 at December 31, 2008. The majority of the decrease came from lower reserves in the Companys U.S. Industrial Division. The Company has a long-term liability for extended warranty policies sold to customers in the amount of $284,000 at June 30, 2009 and $331,000 at December 31, 2008 with a life expectancy of 1 to 5 years.
During most of 2008, the self insured retention (S.I.R.) for U.S. product liability coverage for rotary mowers was $150,000 while the S.I.R. for all other products was at $100,000 per claim. On September 30, 2008 the Company renewed its insurance coverage and the S.I.R. for rotary mowers was reduced from $150,000 to $100,000. The S.I.R. for all other products remained at $100,000. The Company also carries product liability coverage in Europe, Canada and Australia which contain substantially lower S.I.R.s or deductibles.
Read the The complete ReportALG is in the portfolios of Third Avenue Management.
