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Mar 31, 2020
Douglas Dynamics Q1 2020 Earnings Report
Performance was impacted by snowfall, the COVID-19 pandemic, and chassis supply constraints.
Key Takeaways
Douglas Dynamics reported a decrease in net sales due to below-average snowfall, chassis supply constraints, and the COVID-19 pandemic, which led to temporary shutdowns and decreased Adjusted EBITDA.
Net Sales of $68.2 million were negatively impacted by significantly below average snowfall, chassis supply constraints and the operational and economic impact of the COVID-19 pandemic in March
All U.S. facilities closed on March 18th; Conducting phased reopening of facilities during April and May
Paid $0.28 per share cash dividend on March 31, 2020 and remain committed to maintaining the dividend based on balance sheet strength
Maintained ample total liquidity of $86.3 million
Forward Guidance
The Company is withdrawing its 2020 financial outlook due to the operational and economic uncertainty related to the COVID-19 pandemic and aims to provide updated guidance as the economic outlook becomes clearer.
Positive Outlook
- The underlying strength of our business model remains intact
- The long-term prospects for our company remain strong
- Douglas Dynamics is accustomed to adapting quickly and utilizing DDMS techniques to solve problems and find creative solutions
- We will continue to fund initiatives critical to delivering long-term profitable growth
- We believe that we are better positioned than many companies to thrive during a downturn and will work to ensure we emerge stronger from this difficult situation
Challenges Ahead
- Operational and economic impact of the COVID-19 pandemic
- Chassis supply constraints
- Hindering our ability to execute effectively in the near-term
Historical Earnings Impact
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Avg. Return Before/After Earnings
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