Alamo Group, Inc. (NYSE:ALG) Q2 2020 Earnings Conference Call - Final Transcript
Jul 30, 2020 • 03:00 pm ET
Good day, and welcome to the Alamo Group Inc. Second Quarter 2020 Conference Call.
[Operator Instructions] At this time, I would like to turn the call over to Ed Rizzuti, VP, General Counsel and Secretary.
Thank you. By now, you should have all received a copy of the press release. However, if anyone is 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 one (888) 203-1112 with the pass code 227086. 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, 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, COVID-19 impacts, 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.
Thank you, Ed, and we want to thank all of you for joining us here today. Dan Malone, our CFO, will begin our call with a review of our financial results for the second quarter. I will then provide a few comments. And following our formal remarks, we look forward to taking your questions.
So Dan, please go ahead.
Thank you, Ron. The key takeaways from our second quarter and first half 2020 results are: second quarter net sales were down 5.8% compared to prior year as the effect of acquisitions did not fully offset a 22.3% organic sales decline. Record first half net sales were up 6.6% with acquisitions, but down 13.4% organically. Second quarter adjusted EBITDA was down 4.9% from prior year, but higher than prior year as a percent of sales. First half adjusted EBITDA increased 9.7% over prior year, and