- Douglas Dynamics Inc PLOW reported a third-quarter FY21 sales decline of 4.6% year-on-year, to $127.64 million, missing the analyst consensus of $136.35 million.
- The revenue decrease was driven primarily by global supply chain constraints impacting production and delivery in the Solutions segment.
- Work Truck Attachments sales increased 6% Y/Y to $81.4 million, and the Work Truck Solutions segment declined 18.6% Y/Y to $46.3 million.
- The gross profit margin declined 350 basis points Y/Y to 24%.
- The operating margin was 8.2%, and operating income for the quarter fell 40.9% to $10.4 million.
- The company held $7.3 million in cash and equivalents as of September 30, 2021.
- Adjusted EBITDA decreased 32.9% Y/Y to $15.5 million, and the adjusted EBITDA margin contracted 510 basis points to 12.1%.
- Adjusted EPS of $0.29 missed the analyst consensus of $0.38.
- "The supply chain constraints, inflationary pressures, and labor market challenges we have previously discussed have all increased in recent months, and are expected to continue into 2022," said CEO Bob McCormick.
- "Based on the ongoing macroeconomic headwinds impacting the entire economy, we are lowering the top end of our guidance ranges," he added.
- Outlook: Douglas Dynamics sees FY21 net sales of $525 million - $565 million (prior view $520 million -$580 million), versus the consensus of $553.5 million.
- The company expects FY21 adjusted EPS of $1.40 - $1.90 (prior view $1.40 - $2.20) against the consensus of $1.95.
- Price Action: PLOW shares closed higher by 2.32% at $43.28 on Monday.
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