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Mar 31, 2023
Douglas Dynamics Q1 2023 Earnings Report
Reported first quarter results with net sales of $82.5 million, but impacted by low snowfall and pre-season orders.
Key Takeaways
Douglas Dynamics reported lower consolidated results compared to the same period last year due to lower volumes at Work Truck Attachments, which were only partially offset by volume and profitability improvements at Work Truck Solutions. Net Sales were $82.5 million, and the company recorded a Net Loss of $13.1 million, or $(0.58) of Diluted EPS.
Delivered Net Sales of $82.5 million.
Recorded Net Loss of $13.1 million, or $(0.58) of Diluted EPS.
Work Truck Attachments performance impacted by lowest East Coast snowfall season in decades.
Work Truck Solutions delivered improved performance compared to 1Q22.
Revenue by Segment
Forward Guidance
The company lowered the top end of its guidance ranges to account for the lower first quarter volumes and anticipated impact on pre-season demand, but the Solutions segment remains on track to show continued margin improvement in 2023 versus a year ago.
Positive Outlook
- Net Sales are expected to be between $620 million and $650 million.
- Adjusted EBITDA is predicted to range from $85 million to $100 million.
- Adjusted Earnings Per Share are expected to be in the range of $1.55 per share to $2.00 per share.
- The effective tax rate is expected to be approximately 24% to 25.
- The outlook assumes relatively stable economic conditions, slightly improving supply of chassis and components, and that Company’s core markets will experience average snowfall levels in the fourth quarter of 2023.
Challenges Ahead
- Lack of snow in core East Coast markets caused the company to lower the top end of its guidance ranges.
- Lower first quarter volumes.
- Anticipated impact on pre-season demand.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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