Alamo Group, Inc. (NYSE:ALG) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 11:00 am ET

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Alamo Group, Inc. (NYSE:ALG) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Good day and welcome to the Alamo Group, Inc. Fourth Quarter and Year End 2019 Conference Call. Today's conference is being recorded. At this time, I would like to turn the conference over to Ed Rizzuti, Vice President, General Counsel and Secretary of Alamo Group. Sir, please go ahead.

Executive
Edward Rizzuti

Thank you. By now, you should have all received a copy of the press release. However, if anyone's missing a copy and would like to receive one, please contact us at (212) 827-3746 and we will send you a release and make sure you're on the Company's distribution list. There will be a replay of the call which will begin one hour after the call and run for one week. The replay can be accessed by dialing 1888-203-1112 with the passcode 3971238. Additionally, the call is being webcast on the Company's website at www.alamo-group.com and a replay will be available for 60 days.

On the line with me today are Ron Robinson, President and Chief Executive Officer; Dan Malone, Executive Vice President and Chief Financial Officer; and Richard Wehrle, Vice President, Treasurer and Corporate Controller. Management will make some opening remarks and then we'll open up the line for your questions.

During the call today, management may reference certain non-GAAP numbers in their remarks. Reconciliations of these non-GAAP results to applicable GAAP numbers are included in the attachments to our earnings release. Before turning the call over to Ron, I'd like to make a few comments about forward-looking statements. We will be making forward-looking statements today that are made pursuant to the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements involve known and unknown risks and uncertainties which may cause the Company's actual results in future periods to differ materially from forecasted results. Among those factors which could cause actual results to differ materially are the following. Market demand, competition, weather, seasonality, currency-related issues, geopolitical issues and other risk factors listed from time-to-time in the Company's SEC reports. The Company does not undertake any obligation to update the information contained herein, which speaks only as of this date.

I would now like to introduce Ron. Ron, please go ahead.

Executive
Ronald A. Robinson

Thank you, Ed. And we want to thank all of you for joining us here today. Our CFO, Dan Malone will begin our call with a review of our financial results for the fourth quarter. I will then provide a few more comments on the results. And following our remarks, we look forward to taking your questions. Dan, please go ahead.

Executive
Dan E. Malone

Yes. Thank you, Ron. Before getting into the results, I will start with a few comments regarding the fourth quarter impact of the Morbark acquisition. I will then focus on orders, backlog and sales before addressing margins and earnings. Finally, before closing my comments, I will also discuss our coronavirus exposure as we know it today.

On October 24, we completed the Morbark acquisition, the largest in the Company's history. We immediately shut down their operations