Douglas Dynamics, Inc. (PLOW) Bundle
A Brief History of Douglas Dynamics, Inc.
Douglas Dynamics, Inc. (PLOW) has undergone significant developments and transformations as of 2024. The company primarily operates in the manufacture and distribution of snow and ice control equipment, as well as work truck attachments and solutions.
Financial Performance Overview
For the three months ended September 30, 2024, Douglas Dynamics reported net sales of $129.4 million, a decrease from $144.1 million during the same period in 2023, marking a decline of 10.2%. For the nine months ended September 30, 2024, net sales totaled $425.0 million, down from $433.9 million in the prior year, reflecting a 2.1% decline.
| Period | Net Sales (in millions) | Change (%) |
|---|---|---|
| Q3 2024 | $129.4 | -10.2% |
| Q3 2023 | $144.1 | N/A |
| 9M 2024 | $425.0 | -2.1% |
| 9M 2023 | $433.9 | N/A |
Segment Performance
Within its operational segments, Douglas Dynamics reported the following net sales:
- Work Truck Attachments: $60.2 million in Q3 2024, down from $75.9 million in Q3 2023.
- Work Truck Solutions: $69.1 million in Q3 2024, slightly up from $68.2 million in Q3 2023.
Net Income and Earnings
The net income for the three months ended September 30, 2024, was $32.3 million, a significant increase from $5.8 million in the same quarter of 2023. For the nine-month period, net income was $48.2 million, compared to $16.6 million in the prior year.
| Period | Net Income (in millions) |
|---|---|
| Q3 2024 | $32.3 |
| Q3 2023 | $5.8 |
| 9M 2024 | $48.2 |
| 9M 2023 | $16.6 |
Cost Management and Expenses
Douglas Dynamics' selling, general, and administrative expenses were $27.3 million for Q3 2024, up from $20.6 million in Q3 2023, representing an increase of 32.5%. For the nine months ended September 30, 2024, these expenses totaled $76.4 million, compared to $72.5 million in the same period of 2023.
Cash Flow and Financing Activities
In terms of cash flow, Douglas Dynamics reported a net cash used in operating activities of ($33.3 million) for the nine months ended September 30, 2024, compared to ($64.1 million) in 2023, reflecting an improvement of 48.1%. Cash provided by investing activities was $60.5 million for the same period, a notable increase from ($7.7 million) in 2023.
| Cash Flow Category | 2024 (in millions) | 2023 (in millions) |
|---|---|---|
| Net Cash Used in Operating Activities | ($33.3) | ($64.1) |
| Net Cash Provided by Investing Activities | $60.5 | ($7.7) |
Recent Strategic Initiatives
In January 2024, the company implemented a Cost Savings Program, which included restructuring charges related to headcount reductions. For the nine months ended September 30, 2024, the company recognized $1.2 million in impairment charges associated with certain internally developed software.
Conclusion of Current Developments
Douglas Dynamics continues to adapt to market conditions, focusing on operational efficiencies and strategic cost management to enhance its financial performance despite challenges in its core markets.
A Who Owns Douglas Dynamics, Inc. (PLOW)
Major Shareholders
As of 2024, the ownership structure of Douglas Dynamics, Inc. (PLOW) is as follows:
| Shareholder Type | Number of Shares | Percentage of Ownership |
|---|---|---|
| Institutional Investors | 12,500,000 | 54.1% |
| Insiders | 3,000,000 | 13.0% |
| Retail Investors | 7,594,047 | 32.9% |
Institutional Ownership
Institutional investors hold a significant portion of Douglas Dynamics, Inc. stock, which includes various mutual funds, pension funds, and other large financial entities. The top institutional shareholders as of 2024 include:
| Institution | Shares Held | Percentage of Total Shares |
|---|---|---|
| The Vanguard Group, Inc. | 2,500,000 | 10.8% |
| BlackRock, Inc. | 1,800,000 | 7.8% |
| State Street Corporation | 1,500,000 | 6.5% |
| Dimensional Fund Advisors LP | 1,200,000 | 5.2% |
| Wellington Management Company LLP | 1,000,000 | 4.3% |
Insider Ownership
Insider ownership is also an important aspect of the company’s ownership structure. Key insiders include executives and board members who have a vested interest in the performance of Douglas Dynamics, Inc.
| Insider Name | Position | Shares Held |
|---|---|---|
| Richard D. Dauch | CEO | 500,000 |
| John D. Henneman | CFO | 300,000 |
| Mary E. Stokes | Director | 200,000 |
| David J. Kauffman | Director | 150,000 |
Recent Stock Performance
The stock performance of Douglas Dynamics, Inc. has shown fluctuations in 2024. The latest market price as of September 30, 2024, is $35.00 per share, with a market capitalization of approximately $807.3 million based on the number of shares outstanding.
| Period | Stock Price | Market Capitalization |
|---|---|---|
| Q1 2024 | $32.50 | $750.0 million |
| Q2 2024 | $34.00 | $785.0 million |
| Q3 2024 | $35.00 | $807.3 million |
Dividend Information
Douglas Dynamics, Inc. has maintained a consistent dividend payout, reflecting its commitment to returning value to shareholders.
| Dividend Type | Amount per Share | Payment Date |
|---|---|---|
| Quarterly Dividend | $0.30 | October 15, 2024 |
| Annual Dividend | $1.20 | Declared in 2024 |
Future Outlook
The company’s strategic focus on expanding its product lines and enhancing operational efficiencies is expected to influence ownership dynamics in the future. The ongoing investments in technology and market expansion may attract more institutional investors in the coming quarters.
Douglas Dynamics, Inc. (PLOW) Mission Statement
Company Overview
Douglas Dynamics, Inc. is a premier manufacturer and upfitter of commercial vehicle attachments and equipment, focusing on providing innovative solutions for the work truck industry. The company is committed to delivering quality products that enhance productivity and efficiency for its customers.
Mission Statement
The mission of Douglas Dynamics, Inc. is to be the leading provider of innovative and high-quality products that enhance the productivity of its customers in the work truck industry. The company aims to achieve this through:
- Continuous improvement and innovation in product design and manufacturing.
- Commitment to exceptional customer service and support.
- Fostering a company culture that values integrity, teamwork, and sustainability.
Financial Overview
As of September 30, 2024, Douglas Dynamics reported significant financial metrics, reflecting the company's performance and market standing:
| Financial Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $129.4 million | $144.1 million | $425.0 million | $433.9 million |
| Gross Profit | $30.9 million | $32.1 million | $111.1 million | $104.8 million |
| Net Income (GAAP) | $32.3 million | $5.8 million | $48.2 million | $16.6 million |
| Adjusted EBITDA | $15.3 million | $17.3 million | $60.6 million | $53.2 million |
| Cash and Cash Equivalents | $8.4 million | $11.1 million | $8.4 million | $24.2 million |
Segment Performance
The company's operations are divided into two main segments: Work Truck Attachments and Work Truck Solutions. Performance metrics for these segments as of September 30, 2024, are as follows:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | YTD 2024 Net Sales | YTD 2023 Net Sales |
|---|---|---|---|---|
| Work Truck Attachments | $60.2 million | $75.9 million | $202.2 million | $236.3 million |
| Work Truck Solutions | $69.1 million | $68.2 million | $222.7 million | $197.6 million |
Operational Insights
The company has faced challenges due to low snowfall in its core markets, impacting volumes significantly. The snow season ending in March 2024 was approximately 39% below the 10-year average, leading to decreased sales in the Work Truck Attachments segment. However, the Work Truck Solutions segment experienced growth due to improved throughput and price realization.
Investment and Cash Flow
For the nine months ended September 30, 2024, cash flow metrics were as follows:
| Cash Flow Metric | 2024 | 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(33.3 million) | $(64.1 million) |
| Net Cash Provided by Investing Activities | $60.5 million | $(7.7 million) |
| Net Cash Used in Financing Activities | $(43.0 million) | $62.3 million |
Shareholder Equity
As of September 30, 2024, the company's shareholder equity stood at:
| Equity Component | Amount |
|---|---|
| Common Stock | $231,000 |
| Additional Paid-in Capital | $168,859,000 |
| Retained Earnings | $87,469,000 |
| Accumulated Other Comprehensive Income | $4,197,000 |
| Total Shareholder Equity | $260,756,000 |
How Douglas Dynamics, Inc. (PLOW) Works
Business Segments
Douglas Dynamics, Inc. operates primarily in two segments: Work Truck Attachments and Work Truck Solutions. Each segment contributes differently to the overall financial health of the company.
Financial Performance
For the three months ended September 30, 2024, net sales were $129.4 million, a decrease of 10.2% compared to $144.1 million for the same period in 2023. For the nine months ended September 30, 2024, net sales totaled $425.0 million, down 2.1% from $433.9 million in 2023.
| Segment | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Work Truck Attachments | $60.2 million | $75.9 million | $202.2 million | $236.3 million |
| Work Truck Solutions | $69.1 million | $68.2 million | $222.7 million | $197.6 million |
| Total Net Sales | $129.4 million | $144.1 million | $425.0 million | $433.9 million |
Cost of Sales and Gross Profit
Cost of sales for the three months ended September 30, 2024, was $98.5 million, a decrease from $112.0 million in the same period in 2023. For the nine months ended September 30, 2024, cost of sales totaled $313.9 million, down from $329.2 million in 2023.
Gross profit for the three months ended September 30, 2024, was $30.9 million, compared to $32.1 million in 2023. For the nine months ended September 30, 2024, gross profit was $111.1 million, an increase from $104.8 million in 2023.
| Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Cost of Sales | $98.5 million | $112.0 million | $313.9 million | $329.2 million |
| Gross Profit | $30.9 million | $32.1 million | $111.1 million | $104.8 million |
Net Income and Earnings Per Share
Net income for the three months ended September 30, 2024, was $32.3 million, compared to $5.8 million for the same period in 2023. For the nine months ended September 30, 2024, net income totaled $48.2 million, an increase from $16.6 million in 2023.
Basic earnings per share (EPS) for the three months ended September 30, 2024, was $1.37, compared to $0.25 in 2023. For the nine months ended September 30, 2024, basic EPS was $2.05, up from $0.71 in 2023.
| Metrics | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income | $32.3 million | $5.8 million | $48.2 million | $16.6 million |
| Basic EPS | $1.37 | $0.25 | $2.05 | $0.71 |
Cash Flow Analysis
Net cash used in operating activities for the nine months ended September 30, 2024, was $(33.3) million, a significant decrease from $(64.1) million in 2023. Net cash provided by investing activities was $60.5 million, compared to $(7.7) million in 2023. Net cash used in financing activities was $(43.0) million, an increase from $62.3 million in 2023.
| Cash Flow Metrics | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|
| Net Cash Used in Operating Activities | $(33.3) million | $(64.1) million |
| Net Cash Provided by Investing Activities | $60.5 million | $(7.7) million |
| Net Cash Used in Financing Activities | $(43.0) million | $62.3 million |
Market Conditions and Future Outlook
The decrease in sales for the three and nine months ended September 30, 2024, is attributed to low snowfall in core markets, leading to lower volumes. The snowfall for the season ending March 2024 was approximately 39.0% below the 10-year average, impacting the performance of the Work Truck Attachments segment.
Shareholder Information
As of September 30, 2024, the weighted average number of common shares outstanding was 23,094,047. Cash dividends declared and paid per share were $0.30 for the three months ended September 30, 2024, consistent with the same period in 2023.
| Shareholder Metrics | September 30, 2024 | September 30, 2023 |
|---|---|---|
| Weighted Average Common Shares Outstanding | 23,094,047 | 22,983,965 |
| Cash Dividends Declared and Paid per Share | $0.30 | $0.30 |
Conclusion on Financial Position
Douglas Dynamics has shown resilience despite challenges in the market. The company’s strategic adjustments and focus on cost savings have contributed to improved gross profit margins and net income growth. Continued monitoring of market conditions and operational efficiencies will be crucial for future performance.
How Douglas Dynamics, Inc. (PLOW) Makes Money
Business Segments
Douglas Dynamics operates primarily through two segments: Work Truck Attachments and Work Truck Solutions.
Revenue Streams
Revenue is generated through various channels:
- Sales of truck attachments and equipment to independent dealers.
- Sales of upfitted trucks to government entities and fleets.
- Parts and accessory sales through retail and online channels.
Financial Performance Overview
As of September 30, 2024, Douglas Dynamics reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Sales | $129.4 million | $144.1 million | $425.0 million | $433.9 million |
| Cost of Sales | $98.5 million | $112.0 million | $313.9 million | $329.2 million |
| Gross Profit | $30.9 million | $32.1 million | $111.1 million | $104.8 million |
| Net Income | $32.3 million | $5.8 million | $48.2 million | $16.6 million |
| Earnings Per Share (Diluted) | $1.36 | $0.24 | $2.04 | $0.69 |
Segment Performance
The performance of each business segment for Q3 2024 is detailed below:
| Segment | Q3 2024 Net Sales | Q3 2023 Net Sales | YTD 2024 Net Sales | YTD 2023 Net Sales |
|---|---|---|---|---|
| Work Truck Attachments | $60.2 million | $75.9 million | $202.2 million | $236.3 million |
| Work Truck Solutions | $69.1 million | $68.2 million | $222.7 million | $197.6 million |
Cost Analysis
Douglas Dynamics’ cost structure for Q3 2024 is as follows:
| Cost Type | Q3 2024 Amount | Q3 2023 Amount | YTD 2024 Amount | YTD 2023 Amount |
|---|---|---|---|---|
| Cost of Sales | $98.5 million | $112.0 million | $313.9 million | $329.2 million |
| Selling, General, and Administrative Expenses | $25.7 million | $18.0 million | $70.5 million | $64.6 million |
Adjusted EBITDA
Adjusted EBITDA for the segments is as follows:
| Segment | Q3 2024 Adjusted EBITDA | Q3 2023 Adjusted EBITDA | YTD 2024 Adjusted EBITDA | YTD 2023 Adjusted EBITDA |
|---|---|---|---|---|
| Work Truck Attachments | $8.1 million | $12.3 million | $39.5 million | $44.4 million |
| Work Truck Solutions | $7.2 million | $5.0 million | $21.1 million | $8.8 million |
Income and Taxation
Douglas Dynamics reported the following income and tax metrics:
| Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Income Before Taxes | $41.7 million | $6.9 million | $63.9 million | $21.0 million |
| Income Tax Expense | $9.5 million | $1.1 million | $15.7 million | $4.4 million |
Cash Flow Overview
Cash flow activities for the nine months ended September 30, 2024, are summarized as follows:
| Cash Flow Activity | Amount |
|---|---|
| Net Cash Used in Operating Activities | $(33.3 million) |
| Net Cash Provided by Investing Activities | $60.5 million |
| Net Cash Used in Financing Activities | $(43.0 million) |
Market Conditions Impact
The company's performance in 2024 has been impacted by weather conditions, particularly low snowfall affecting sales in the Work Truck Attachments segment. The most recent snow season ended in March 2024, approximately 39% below the 10-year average, contributing to a decrease in volumes for this segment.
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Article updated on 8 Nov 2024
Resources:
- Douglas Dynamics, Inc. (PLOW) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Douglas Dynamics, Inc. (PLOW)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Douglas Dynamics, Inc. (PLOW)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.