1-31429
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47-0351813
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(Commission File Number)
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(IRS Employer Identification No.)
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One Valmont Plaza
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Omaha, NE
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68154
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(Address of Principal Executive Offices)
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(Zip Code)
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o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
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o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
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(d)
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Exhibits.
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99.1
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Press Release dated July 22, 2015.
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Valmont Industries, Inc.
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Date: July 22, 2015
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By: /s/ Mark Jaksich
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Name: Mark Jaksich
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Title: Chief Financial Officer
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Exhibit No.
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Description
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99.1
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Press Release dated July 22, 2015.
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·
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Despite very difficult end market conditions, operating income as a percent of sales was 10.0%, excluding $14.3 million of pre-tax restructuring charges.
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·
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Reduced global investment in oil, gas and mining infrastructure negatively affected results in the Engineered Infrastructure Products and Coatings Segments.
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·
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Ongoing operational improvements in the Utility Support Structures Segment did not offset deleverage and the effects of price competitive markets.
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·
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Irrigation Segment’s quality of earnings remained strong despite lower volumes, with operating income of 17%.
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·
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Currency translation negatively affected sales and operating income by approximately $55 million and $5 million, respectively.
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CONDENSED CONSOLIDATED STATEMENTS OF EARNINGS
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|||||||||
(Dollars in thousands, except per share amounts)
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|||||||||
(unaudited)
|
|||||||||
Second Quarter
|
Year-to-Date
|
||||||||
13 Weeks Ended
|
26 Weeks Ended
|
||||||||
27-Jun-15
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28-Jun-14
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27-Jun-15
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28-Jun-14
|
||||||
Net sales
|
$ 682,123
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$ 842,599
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$ 1,352,521
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$ 1,594,339
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|||||
Cost of sales
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512,575
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622,122
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1,017,519
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1,166,880
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|||||
Gross profit
|
169,548
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220,477
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335,002
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427,459
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|||||
Selling, general and administrative expenses
|
115,548
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115,701
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223,319
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223,835
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|||||
Operating income
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54,000
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104,776
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111,683
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203,624
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|||||
Other income (expense)
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|||||||||
Interest expense
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(11,232)
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(8,304)
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(22,360)
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(16,501)
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|||||
Interest income
|
616
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1,577
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1,490
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3,316
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|||||
Other
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(28)
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1,903
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988
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(3,909)
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|||||
(10,644)
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(4,824)
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(19,882)
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(17,094)
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||||||
Earnings before income taxes and equity in
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43,356
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99,952
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91,801
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186,530
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|||||
earnings of nonconsolidated subsidiaries
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|||||||||
Income tax expense
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13,917
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34,070
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30,855
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64,085
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|||||
Earnings before equity in earnings of
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29,439
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65,882
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60,946
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122,445
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|||||
nonconsolidated subsidiaries
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|||||||||
Equity in earnings of nonconsolidated subsidiaries
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-
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(30)
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-
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(30)
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|||||
Net earnings
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29,439
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65,852
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60,946
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122,415
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|||||
Less: Earnings attributable to non-controlling interests
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(1,566)
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(1,876)
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(2,334)
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(2,459)
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|||||
Net earnings attributable to Valmont Industries, Inc.
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$ 27,873
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$ 63,976
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$ 58,612
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$ 119,956
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|||||
Average shares outstanding (000's) - Basic
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23,336
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26,623
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23,602
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26,669
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|||||
Earnings per share - Basic
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$ 1.19
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$ 2.40
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$ 2.48
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$ 4.50
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|||||
Average shares outstanding (000's) - Diluted
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23,450
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26,856
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23,716
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26,903
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|||||
Earnings per share - Diluted
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$ 1.19
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$ 2.38
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$ 2.47
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$ 4.46
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|||||
Cash dividends per share
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$ 0.375
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$ 0.375
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$ 0.750
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$ 0.625
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|||||
-more-
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|
||||||||
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
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|||||||||
SUMMARY OPERATING RESULTS
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|||||||||
(Dollars in thousands)
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|||||||||
(unaudited)
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|||||||||
Second Quarter
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Year-to-Date
|
||||||||
13 Weeks Ended
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26 Weeks Ended
|
||||||||
27-Jun-15
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28-Jun-14
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27-Jun-15
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28-Jun-14
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||||||
Net sales
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|||||||||
Engineered Infrastructure Products
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$ 261,069
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$ 304,352
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$ 499,462
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$ 532,814
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|||||
Utility Support Structures
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162,929
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213,030
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339,270
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427,757
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|||||
Coatings
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76,094
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85,157
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150,454
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167,328
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|||||
Infrastructure products
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500,092
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602,539
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989,186
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1,127,899
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|||||
Irrigation
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153,821
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219,917
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308,297
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432,650
|
|||||
Other
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50,404
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61,786
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104,262
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120,388
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|||||
Less: Intersegment sales
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(22,194)
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(41,643)
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(49,224)
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(86,598)
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|||||
Total
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$ 682,123
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$ 842,599
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$ 1,352,521
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$ 1,594,339
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|||||
Operating Income
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|||||||||
Engineered Infrastructure Products
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$ 17,424
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$ 28,625
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$ 29,406
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$ 42,334
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|||||
Utility Support Structures
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10,399
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26,375
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25,756
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59,132
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|||||
Coatings
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7,862
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15,820
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18,861
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29,706
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|||||
Infrastructure products
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35,685
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70,820
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74,023
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131,172
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|||||
Irrigation
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25,814
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41,473
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50,116
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84,619
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|||||
Other
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6,273
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8,343
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12,871
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16,893
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|||||
Corporate
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(13,772)
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(15,860)
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(25,327)
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(29,060)
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|||||
Total
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$ 54,000
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$ 104,776
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$ 111,683
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$ 203,624
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|||||
Valmont has aggregated its business segments into four reportable segments as follows.
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|||||||||
Engineered Infrastructure Products: This segment consists of the manufacture of engineered metal structures and components for global lighting and traffic, wireless communication, offshore, roadway safety and access systems applications.
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|||||||||
Utility Support Structures: This segment consists of the manufacture of engineered steel and concrete structures for the global utility industry.
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|||||||||
Coatings: This segment consists of global galvanizing, painting and anodizing services.
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|||||||||
Irrigation: This segment consists of the manufacture of agricultural irrigation equipment and related parts and services worldwide.
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|||||||||
In addition to these four reportable segments, Valmont also has other businesses that individually are not more than
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|||||||||
10% of consolidated net sales. These businesses, which include the manufacture of forged steel grinding media, tubular products, and industrial fasteners, are reported in the "Other" category.
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|||||||||
-more-
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|
||||||||
VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
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|||||||||
CONDENSED CONSOLIDATED BALANCE SHEETS
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|||||||||
(Dollars in thousands)
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|||||||||
(unaudited)
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|||||||||
27-Jun-15
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28-Jun-14
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||||||||
ASSETS
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|||||||||
Current assets:
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|||||||||
Cash and cash equivalents
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$ 317,523
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$ 455,927
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|||||||
Accounts receivable, net
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491,706
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543,608
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|||||||
Inventories
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379,897
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381,943
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|||||||
Prepaid expenses
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56,653
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66,916
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|||||||
Refundable and deferred income taxes
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44,072
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71,334
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|||||||
Total current assets
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1,289,851
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1,519,728
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|||||||
Property, plant and equipment, net
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570,977
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638,854
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|||||||
Goodwill and other assets
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706,564
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700,022
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|||||||
$ 2,567,392
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$ 2,858,604
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||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY
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|||||||||
Current liabilities:
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|||||||||
Current installments of long-term debt
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$ 1,096
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$ 188
|
|||||||
Notes payable to banks
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7,914
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17,485
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|||||||
Accounts payable
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186,421
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208,834
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|||||||
Accrued expenses
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165,138
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186,996
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|||||||
Dividend payable
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8,733
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9,930
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|||||||
Total current liabilities
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369,302
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423,433
|
|||||||
Long-term debt, excluding current installments
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765,272
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478,498
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|||||||
Other long-term liabilities
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292,225
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341,583
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|||||||
Shareholders' equity
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1,140,593
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1,615,090
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|||||||
$ 2,567,392
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$ 2,858,604
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||||||||
-more-
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VALMONT INDUSTRIES, INC. AND SUBSIDIARIES
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|||||||||
SUMMARY OF EFFECT OF SIGNIFICANT NON-RECURRING ITEMS ON REPORTED RESULTS
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|||||||||
REGULATION G RECONCILIATION
|
|||||||||
(Dollars in thousands, except per share amounts)
|
|||||||||
(unaudited)
|
|||||||||
The non-GAAP tables below disclose the impact on (a) diluted earnings per share of (1) restructuring costs, and (2) the non-cash after-tax loss or gain associated with adjusting the fair value of Delta EMD Pty. Ltd (Delta EMD) shares owned to its quoted market price at June 27, 2015, and June 28, 2014, (b) operating income of restructuring costs, and (c) segment operating income of restructuring costs. Amounts may be impacted by rounding. We believe it is useful when considering company performance for the non-GAAP adjusted net earnings and operating income to be taken into consideration by management and investors with the related reported GAAP measures.
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|||||||||
Second Quarter Ended June 27, 2015
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Diluted earnings per share
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Year-to-Date June 27, 2015
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Diluted earnings per share
|
||||||
Net earnings attributable to Valmont Industries, Inc. - as reported
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$ 27,873
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$ 1.19
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$ 58,612
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$ 2.47
|
|||||
Restructuring expenses - after tax
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9,828
|
0.42
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10,324
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0.44
|
|||||
Fair market value adjustment, Delta EMD - after-tax
|
167
|
0.01
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(433)
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(0.02)
|
|||||
Net earnings attributable to Valmont Industries, Inc. - Adjusted
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$ 37,868
|
$ 1.61
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$ 68,503
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$ 2.89
|
|||||
Average shares outstanding (000's) - Diluted
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23,450
|
23,716
|
|||||||
Second Quarter Ended June 28, 2014
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Diluted earnings per share
|
Year-to-Date June 28, 2014
|
Diluted earnings per share
|
||||||
Net earnings attributable to Valmont Industries, Inc. - as reported
|
$ 63,976
|
$ 2.38
|
$ 119,956
|
$ 4.46
|
|||||
Fair market value adjustment, Delta EMD - after-tax
|
115
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0.01
|
3,501
|
0.13
|
|||||
Net earnings attributable to Valmont Industries, Inc. - Adjusted
|
$ 64,091
|
$ 2.39
|
$ 123,457
|
4.59
|
|||||
Average shares outstanding (000's) - Diluted
|
26,856
|
26,903
|
|||||||
Operating Income Reconciliation
|
Second Quarter Ended June 27, 2015
|
||||||||
Operating income - as reported
|
$ 54,000
|
||||||||
Restructuring expenses - before tax
|
14,270
|
||||||||
Adjusted Operating Income
|
$ 68,270
|
||||||||
Net Sales
|
682,123
|
||||||||
Operating Income as a % of Sales
|
7.9%
|
||||||||
Adjusted Operating Income as a % of Sales
|
10.0%
|
||||||||
For the Second Quarter Ended June 27, 2015
|
|||||||||
Segment Operating Income Reconciliation
|
Engineered Infrastructure Products
|
Utility Support Structures
|
Coatings
|
Irrigation
|
Other/ Corporate
|
||||
Operating income - as reported
|
$ 17,424
|
$ 10,399
|
$ 7,862
|
$ 25,814
|
$ (7,499)
|
||||
Restructuring expenses - before tax
|
4,497
|
2,455
|
4,769
|
349
|
2,203
|
||||
Adjusted Operating Income
|
$ 21,921
|
$ 12,854
|
$ 12,631
|
$ 26,163
|
$ (5,296)
|
||||
Net sales
|
261,069
|
162,929
|
76,094
|
153,821
|
|||||
Operating Income as a % of Sales
|
6.7%
|
6.4%
|
10.3%
|
16.8%
|
NM
|
||||
Adjusted Operating Income as a % of Sales
|
8.4%
|
7.9%
|
16.6%
|
17.0%
|
NM
|
||||
END
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