Benzinga | Aug 3, 2021 05:45AM EDT

Douglas Dynamics Q2 Earnings Smashes Estimates; Raises FY21 Outlook

* Douglas Dynamics Inc (NYSE:PLOW) reported second-quarter FY21 net sales growth of 31.2% year-on-year, to $157.53 million, beating the analyst consensus of $141.53 million.

* The revenue increase was driven by strong pre-season shipments in Attachments, and the lack of pandemic shutdown experienced last year in all businesses.

* Sales from the Work Truck Attachments segment increased 42% Y/Y to $104.6 million, and the Work Truck Solutions segment rose 14.5% to $52.9 million.

* Gross profit margin expanded 430 basis points Y/Y to 31%.

* The operating margin was 15.3%, and operating income for the quarter amounted to $24.1 million.

* The company held $15.2 million in cash and equivalents as of June 30, 2021.

* Adjusted EBITDA for the quarter rose 65% Y/Y to $33.5 million with an adjusted EBITDA margin of 21.3%, a 440 basis points expansion.

* Adjusted EPS of $0.91 beat the analyst consensus of $0.63.

* "Demand in Attachments has shown considerable resilience during the pre-season order period, reflecting positive dealer sentiment and end-user confidence," said CEO Bob McCormick.

* Outlook: Douglas sees FY21 sales of $520 million - $580 million (prior view $505 million - $565 million) versus the consensus of $538.25 million. It expects an unchanged adjusted EBITDA of $75 million - $100 million.

* The company expects FY21 adjusted EPS of $1.40 - $2.20 (prior view $1.20 - $2.00), versus the consensus of $1.77.

* Price action: PLOW shares closed lower by 1.30% at $39.38 on Monday.