Delaware
(State or Other Jurisdiction of Incorporation or Organization) |
47-0351813
(I.R.S. Employer Identification No.) |
One Valmont Plaza,
Omaha, Nebraska (Address of Principal Executive Offices) |
68154-5215 (Zip Code) |
Large accelerated filer
x
|
Accelerated filer
o
|
Non‑accelerated filer
o
|
Smaller reporting company
o
|
Emerging growth company
o
|
(Do not check if a
smaller reporting company) |
|
|
|
Page No.
|
|
PART I. FINANCIAL INFORMATION
|
|
Item 1
.
|
Financial Statements
(unaudited):
|
|
|
|
|
|
March 31, 2018 and April 1, 2017
|
|
|
|
|
|
weeks ended March 31, 2018 and April 1, 2017
|
|
|
Condensed Consolidated Balance Sheets as of March 31, 2018 and December 30,
|
|
|
2017
|
|
|
Condensed Consolidated Statements of Cash Flows for the thirteen weeks ended
|
|
|
March 31, 2018 and April 1, 2017
|
|
|
Condensed Consolidated Statements of Shareholders' Equity for the thirteen
|
|
|
weeks ended March 31, 2018 and April 1, 2017
|
|
|
Notes to Condensed Consolidated Financial Statements
|
|
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
PART II. OTHER INFORMATION
|
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Item 5.
|
Other Information
|
|
Item 6.
|
||
|
|
|
|
|
|
|
|
|
|
Thirteen Weeks Ended
|
||||||
|
March 31,
2018 |
|
April 1,
2017 |
||||
Product sales
|
$
|
620,486
|
|
|
$
|
572,952
|
|
Services sales
|
78,198
|
|
|
64,521
|
|
||
Net sales
|
698,684
|
|
|
637,473
|
|
||
Product cost of sales
|
476,264
|
|
|
426,847
|
|
||
Services cost of sales
|
53,180
|
|
|
46,021
|
|
||
Total cost of sales
|
529,444
|
|
|
472,868
|
|
||
Gross profit
|
169,240
|
|
|
164,605
|
|
||
Selling, general and administrative expenses
|
105,280
|
|
|
99,949
|
|
||
Operating income
|
63,960
|
|
|
64,656
|
|
||
Other income (expenses):
|
|
|
|
||||
Interest expense
|
(11,074
|
)
|
|
(11,304
|
)
|
||
Interest income
|
1,267
|
|
|
927
|
|
||
Other
|
(1,141
|
)
|
|
1,045
|
|
||
|
(10,948
|
)
|
|
(9,332
|
)
|
||
Earnings before income taxes
|
53,012
|
|
|
55,324
|
|
||
Income tax expense:
|
|
|
|
||||
Current
|
7,713
|
|
|
1,298
|
|
||
Deferred
|
4,819
|
|
|
14,065
|
|
||
|
12,532
|
|
|
15,363
|
|
||
Net earnings
|
40,480
|
|
|
39,961
|
|
||
Less: Earnings attributable to noncontrolling interests
|
(1,199
|
)
|
|
(982
|
)
|
||
Net earnings attributable to Valmont Industries, Inc.
|
$
|
39,281
|
|
|
$
|
38,979
|
|
Earnings per share:
|
|
|
|
||||
Basic
|
$
|
1.74
|
|
|
$
|
1.73
|
|
Diluted
|
$
|
1.72
|
|
|
$
|
1.72
|
|
Cash dividends declared per share
|
$
|
0.375
|
|
|
$
|
0.375
|
|
Weighted average number of shares of common stock outstanding - Basic (000 omitted)
|
22,609
|
|
|
22,472
|
|
||
Weighted average number of shares of common stock outstanding - Diluted (000 omitted)
|
22,796
|
|
|
22,660
|
|
|
Thirteen Weeks Ended
|
||||||
|
March 31,
2018 |
|
April 1,
2017 |
||||
Net earnings
|
$
|
40,480
|
|
|
$
|
39,961
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
||||
Foreign currency translation adjustments:
|
|
|
|
||||
Unrealized translation gain
|
6,804
|
|
|
19,390
|
|
||
Gain/(loss) on hedging activities:
|
|
|
|
||||
Net investment hedge, net of tax expense (benefit) of ($263) in 2018 and ($200) in 2017
|
(789
|
)
|
|
(526
|
)
|
||
Amortization cost included in interest expense
|
19
|
|
|
19
|
|
||
Cash flow hedges
|
(93
|
)
|
|
—
|
|
||
Other comprehensive income (loss)
|
5,941
|
|
|
18,883
|
|
||
Comprehensive income
|
46,421
|
|
|
58,844
|
|
||
Comprehensive loss (income) attributable to noncontrolling interests
|
(4,747
|
)
|
|
241
|
|
||
Comprehensive income attributable to Valmont Industries, Inc.
|
$
|
41,674
|
|
|
$
|
59,085
|
|
|
March 31,
2018 |
|
December 30,
2017 |
||||
ASSETS
|
|
|
|
||||
Current assets:
|
|
|
|
||||
Cash and cash equivalents
|
$
|
479,663
|
|
|
$
|
492,805
|
|
Receivables, net
|
467,010
|
|
|
503,677
|
|
||
Inventories
|
370,005
|
|
|
420,948
|
|
||
Prepaid expenses and other assets
|
127,251
|
|
|
43,643
|
|
||
Assets held for sale
|
72,665
|
|
|
—
|
|
||
Refundable income taxes
|
6,749
|
|
|
11,492
|
|
||
Total current assets
|
1,523,343
|
|
|
1,472,565
|
|
||
Property, plant and equipment, at cost
|
1,137,152
|
|
|
1,165,687
|
|
||
Less accumulated depreciation and amortization
|
633,440
|
|
|
646,759
|
|
||
Net property, plant and equipment
|
503,712
|
|
|
518,928
|
|
||
Goodwill
|
327,874
|
|
|
337,720
|
|
||
Other intangible assets, net
|
129,540
|
|
|
138,599
|
|
||
Other assets
|
133,595
|
|
|
134,438
|
|
||
Total assets
|
$
|
2,618,064
|
|
|
$
|
2,602,250
|
|
|
|
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
||||
Current liabilities:
|
|
|
|
||||
Current installments of long-term debt
|
$
|
951
|
|
|
$
|
966
|
|
Notes payable to banks
|
377
|
|
|
161
|
|
||
Accounts payable
|
190,902
|
|
|
227,906
|
|
||
Accrued employee compensation and benefits
|
67,928
|
|
|
84,426
|
|
||
Accrued expenses
|
92,651
|
|
|
81,029
|
|
||
Liabilities held for sale
|
12,960
|
|
|
—
|
|
||
Dividends payable
|
8,493
|
|
|
8,510
|
|
||
Total current liabilities
|
374,262
|
|
|
402,998
|
|
||
Deferred income taxes
|
39,669
|
|
|
34,906
|
|
||
Long-term debt, excluding current installments
|
753,647
|
|
|
753,888
|
|
||
Defined benefit pension liability
|
195,490
|
|
|
189,552
|
|
||
Deferred compensation
|
48,597
|
|
|
48,526
|
|
||
Other noncurrent liabilities
|
21,043
|
|
|
20,585
|
|
||
Shareholders’ equity:
|
|
|
|
||||
Preferred stock of $1 par value -
|
|
|
|
||||
Authorized 500,000 shares; none issued
|
—
|
|
|
—
|
|
||
Common stock of $1 par value -
|
|
|
|
||||
Authorized 75,000,000 shares; 27,900,000 issued
|
27,900
|
|
|
27,900
|
|
||
Retained earnings
|
1,996,474
|
|
|
1,954,344
|
|
||
Accumulated other comprehensive loss
|
(276,629
|
)
|
|
(279,022
|
)
|
||
Treasury stock
|
(602,504
|
)
|
|
(590,386
|
)
|
||
Total Valmont Industries, Inc. shareholders’ equity
|
1,145,241
|
|
|
1,112,836
|
|
||
Noncontrolling interest in consolidated subsidiaries
|
40,115
|
|
|
38,959
|
|
||
Total shareholders’ equity
|
1,185,356
|
|
|
1,151,795
|
|
||
Total liabilities and shareholders’ equity
|
$
|
2,618,064
|
|
|
$
|
2,602,250
|
|
|
Thirteen Weeks Ended
|
||||||
|
March 31,
2018 |
|
April 1,
2017 |
||||
Cash flows from operating activities:
|
|
|
|
||||
Net earnings
|
$
|
40,480
|
|
|
$
|
39,961
|
|
Adjustments to reconcile net earnings to net cash flows from operations:
|
|
|
|
||||
Depreciation and amortization
|
21,178
|
|
|
20,827
|
|
||
Noncash loss on trading securities
|
71
|
|
|
70
|
|
||
Impairment of property, plant and equipment
|
1,145
|
|
|
—
|
|
||
Stock-based compensation
|
2,775
|
|
|
2,494
|
|
||
Defined benefit pension plan expense
|
(594
|
)
|
|
154
|
|
||
Contribution to defined benefit pension plan
|
(731
|
)
|
|
(25,379
|
)
|
||
(Gain)/loss on sale of property, plant and equipment
|
(280
|
)
|
|
(102
|
)
|
||
Deferred income taxes
|
4,819
|
|
|
14,065
|
|
||
Changes in assets and liabilities:
|
|
|
|
||||
Receivables
|
29,794
|
|
|
(12,729
|
)
|
||
Inventories
|
(1,201
|
)
|
|
(34,817
|
)
|
||
Prepaid expenses and other assets
|
(32,025
|
)
|
|
(9,798
|
)
|
||
Accounts payable
|
(29,449
|
)
|
|
14,124
|
|
||
Accrued expenses
|
(6,407
|
)
|
|
14,020
|
|
||
Other noncurrent liabilities
|
440
|
|
|
612
|
|
||
Income taxes refundable
|
3,033
|
|
|
(87
|
)
|
||
Net cash flows from operating activities
|
33,048
|
|
|
23,415
|
|
||
Cash flows from investing activities:
|
|
|
|
||||
Purchase of property, plant and equipment
|
(16,248
|
)
|
|
(14,168
|
)
|
||
Proceeds from sale of assets
|
714
|
|
|
302
|
|
||
Acquisitions, net of cash acquired
|
(4,800
|
)
|
|
—
|
|
||
Loss from settlement of net investment hedge
|
(863
|
)
|
|
—
|
|
||
Other, net
|
(1,782
|
)
|
|
(1,715
|
)
|
||
Net cash flows from investing activities
|
(22,979
|
)
|
|
(15,581
|
)
|
||
Cash flows from financing activities:
|
|
|
|
||||
Borrowings under short-term agreements
|
219
|
|
|
198
|
|
||
Principal payments on long-term borrowings
|
(249
|
)
|
|
(215
|
)
|
||
Dividends paid
|
(8,510
|
)
|
|
(8,445
|
)
|
||
Dividends to noncontrolling interest
|
(1,281
|
)
|
|
(422
|
)
|
||
Purchase of noncontrolling interest
|
(5,510
|
)
|
|
—
|
|
||
Purchase of treasury shares
|
(14,790
|
)
|
|
—
|
|
||
Proceeds from exercises under stock plans
|
2,972
|
|
|
8,894
|
|
||
Purchase of common treasury shares—stock plan exercises
|
(1,504
|
)
|
|
(2,870
|
)
|
||
Net cash flows from financing activities
|
(28,653
|
)
|
|
(2,860
|
)
|
||
Effect of exchange rate changes on cash and cash equivalents
|
5,442
|
|
|
7,726
|
|
||
Net change in cash and cash equivalents
|
(13,142
|
)
|
|
12,700
|
|
||
Cash, cash equivalents, and restricted cash—beginning of year
|
492,805
|
|
|
412,516
|
|
||
Cash, cash equivalents, and restricted cash—end of period
|
$
|
479,663
|
|
|
$
|
425,216
|
|
|
Common
stock |
|
Additional
paid-in capital |
|
Retained
earnings |
|
Accumulated
other comprehensive income (loss) |
|
Treasury
stock |
|
Noncontrolling
interest in consolidated subsidiaries |
|
Total
shareholders’ equity |
||||||||||||||
Balance at December 31, 2016
|
$
|
27,900
|
|
|
$
|
—
|
|
|
$
|
1,874,722
|
|
|
$
|
(346,359
|
)
|
|
$
|
(612,781
|
)
|
|
$
|
39,104
|
|
|
$
|
982,586
|
|
Net earnings
|
—
|
|
|
—
|
|
|
38,979
|
|
|
—
|
|
|
—
|
|
|
982
|
|
|
39,961
|
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
20,106
|
|
|
—
|
|
|
(1,223
|
)
|
|
18,883
|
|
|||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(8,468
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,468
|
)
|
|||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(422
|
)
|
|
(422
|
)
|
|||||||
Stock plan exercises; 17,985 shares acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,870
|
)
|
|
—
|
|
|
(2,870
|
)
|
|||||||
Stock options exercised; 77,336 shares issued
|
—
|
|
|
(2,494
|
)
|
|
928
|
|
|
—
|
|
|
10,460
|
|
|
—
|
|
|
8,894
|
|
|||||||
Stock option expense
|
—
|
|
|
1,289
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,289
|
|
|||||||
Stock awards; 1,583 shares issued
|
—
|
|
|
1,205
|
|
|
—
|
|
|
—
|
|
|
222
|
|
|
—
|
|
|
1,427
|
|
|||||||
Balance at April 1, 2017
|
$
|
27,900
|
|
|
$
|
—
|
|
|
$
|
1,906,161
|
|
|
$
|
(326,253
|
)
|
|
$
|
(604,969
|
)
|
|
$
|
38,441
|
|
|
$
|
1,041,280
|
|
Balance at December 30, 2017
|
$
|
27,900
|
|
|
$
|
—
|
|
|
$
|
1,954,344
|
|
|
$
|
(279,022
|
)
|
|
$
|
(590,386
|
)
|
|
$
|
38,959
|
|
|
$
|
1,151,795
|
|
Net earnings
|
—
|
|
|
—
|
|
|
39,281
|
|
|
—
|
|
|
—
|
|
|
1,199
|
|
|
40,480
|
|
|||||||
Other comprehensive income (loss)
|
—
|
|
|
—
|
|
|
—
|
|
|
2,393
|
|
|
—
|
|
|
3,548
|
|
|
5,941
|
|
|||||||
Cash dividends declared
|
—
|
|
|
—
|
|
|
(8,493
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,493
|
)
|
|||||||
Dividends to noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,281
|
)
|
|
(1,281
|
)
|
|||||||
Purchase of noncontrolling interests
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,510
|
)
|
|
(5,510
|
)
|
|||||||
Cumulative impact of ASC 606 adoption
|
—
|
|
|
—
|
|
|
9,771
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
9,771
|
|
|||||||
Addition of noncontrolling interest
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,200
|
|
|
3,200
|
|
|||||||
Purchase of treasury shares; 101,387 shares acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,790
|
)
|
|
—
|
|
|
(14,790
|
)
|
|||||||
Stock plan exercises; 9,548 shares acquired
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,504
|
)
|
|
—
|
|
|
(1,504
|
)
|
|||||||
Stock options exercised; 27,904 shares issued
|
—
|
|
|
(2,545
|
)
|
|
1,571
|
|
|
—
|
|
|
3,946
|
|
|
—
|
|
|
2,972
|
|
|||||||
Stock option expense
|
—
|
|
|
1,090
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,090
|
|
|||||||
Stock awards; 1,840 shares issued
|
—
|
|
|
1,455
|
|
|
—
|
|
|
—
|
|
|
230
|
|
|
—
|
|
|
1,685
|
|
|||||||
Balance at March 31, 2018
|
$
|
27,900
|
|
|
$
|
—
|
|
|
$
|
1,996,474
|
|
|
$
|
(276,629
|
)
|
|
$
|
(602,504
|
)
|
|
$
|
40,115
|
|
|
$
|
1,185,356
|
|
|
March 31,
2018 |
|
December 30,
2017 |
||||
Raw materials and purchased parts
|
$
|
176,554
|
|
|
$
|
183,029
|
|
Work-in-process
|
20,197
|
|
|
30,671
|
|
||
Finished goods and manufactured goods
|
218,062
|
|
|
250,975
|
|
||
Subtotal
|
414,813
|
|
|
464,675
|
|
||
Less: LIFO reserve
|
44,808
|
|
|
43,727
|
|
||
|
$
|
370,005
|
|
|
$
|
420,948
|
|
•
|
Deemed Repatriation transition tax
: The Deemed Repatriation transition tax (“Transition Tax”) is a tax on unremitted foreign earnings of certain foreign subsidiaries, which subjected the Company's unremitted foreign earnings of approximately
$400,000
to tax at certain specified rates less associated foreign tax credits. The Company recorded a provisional Transition Tax obligation of
$9,890
.
|
•
|
Indefinite reinvestment assertion
: The Company's position is that unremitted foreign earnings subject to the Transition Tax are not indefinitely reinvested. The Company recorded a provisional amount of the deferred income taxes for foreign withholding taxes and U.S. state income taxes of
$10,373
and
$1,300
, respectively. The Company also continues to gather additional information to determine its permanently reinvested position with respect to future foreign earnings.
|
•
|
No adjustments to these 2017 Tax Act amounts were recognized during the first quarter of 2018. However, the Company may adjust these provisional amounts in future quarters of 2018 after assessing additional implementation guidance as it becomes available.
|
|
Thirteen Weeks Ended
|
||||||
Net periodic (benefit) expense:
|
2018
|
|
2017
|
||||
Interest cost
|
$
|
4,716
|
|
|
$
|
4,321
|
|
Expected return on plan assets
|
(6,114
|
)
|
|
(4,877
|
)
|
||
Amortization of actuarial loss
|
804
|
|
|
710
|
|
||
Net periodic expense (benefit)
|
$
|
(594
|
)
|
|
$
|
154
|
|
|
Thirteen Weeks Ended
|
||||||
|
2018
|
|
2017
|
||||
Compensation expense
|
$
|
1,090
|
|
|
$
|
1,289
|
|
Income tax benefits
|
273
|
|
|
496
|
|
|
|
|
Fair Value Measurement Using:
|
||||||||||||
|
Carrying Value
March 31, 2018 |
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Trading Securities
|
$
|
41,072
|
|
|
$
|
41,072
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
|
|
Fair Value Measurement Using:
|
||||||||||||
|
Carrying Value
December 30, 2017 |
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
Significant Other
Observable Inputs (Level 2) |
|
Significant
Unobservable Inputs (Level 3) |
||||||||
Assets:
|
|
|
|
|
|
|
|
||||||||
Trading Securities
|
$
|
41,042
|
|
|
$
|
41,042
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
Foreign Currency Translation Adjustments
|
|
Gain/(Loss) on Hedging Activities
|
|
Defined Benefit Pension Plan
|
|
Accumulated Other Comprehensive Loss
|
||||||||
Balance at December 30, 2017
|
$
|
(171,399
|
)
|
|
$
|
6,357
|
|
|
$
|
(113,980
|
)
|
|
$
|
(279,022
|
)
|
Current-period comprehensive income (loss)
|
3,256
|
|
|
(863
|
)
|
|
—
|
|
|
2,393
|
|
||||
Balance at March 31, 2018
|
$
|
(168,143
|
)
|
|
$
|
5,494
|
|
|
$
|
(113,980
|
)
|
|
$
|
(276,629
|
)
|
Balance Sheet
|
December 30,
2017 |
|
ASC 606 Adjustments
|
|
December 31,
2017 |
||||||
Assets
|
|
|
|
|
|
||||||
Inventories
|
$
|
420,948
|
|
|
$
|
(36,243
|
)
|
|
$
|
384,705
|
|
Prepaid expenses and other current assets
|
43,643
|
|
|
51,507
|
|
|
95,150
|
|
|||
Liabilities and shareholders' equity
|
|
|
|
|
|
||||||
Accrued expenses
|
81,029
|
|
|
2,043
|
|
|
83,072
|
|
|||
Deferred income taxes
|
34,906
|
|
|
3,450
|
|
|
38,356
|
|
|||
Retained earnings
|
1,954,344
|
|
|
9,771
|
|
|
1,964,115
|
|
Balance Sheet
|
As Reported
|
|
Balance Excluding ASC 606 Effects
|
|
Change
|
||||||
Assets
|
|
|
|
|
|
||||||
Inventories
|
$
|
370,005
|
|
|
$
|
425,956
|
|
|
$
|
(55,951
|
)
|
Prepaid expenses and other current assets
|
127,251
|
|
|
48,767
|
|
|
78,484
|
|
|||
Liabilities and shareholders' equity
|
|
|
|
|
|
||||||
Accrued expenses
|
92,651
|
|
|
87,626
|
|
|
5,025
|
|
|||
Deferred income taxes
|
39,669
|
|
|
35,539
|
|
|
4,130
|
|
|||
Retained earnings
|
1,996,474
|
|
|
1,983,096
|
|
|
13,378
|
|
|||
|
|
|
|
|
|
||||||
Statement of Earnings
|
|
|
|
|
|
||||||
Net Sales
|
$
|
698,684
|
|
|
$
|
670,874
|
|
|
$
|
27,810
|
|
Operating Income
|
63,960
|
|
|
58,886
|
|
|
5,074
|
|
|
Point in Time
|
|
Over Time
|
||||
|
March 31, 2018
|
|
March 31, 2018
|
||||
Utility Support Structures
|
$
|
—
|
|
|
$
|
209,859
|
|
Engineered Support Structures
|
207,194
|
|
|
8,722
|
|
||
Coatings
|
68,458
|
|
|
—
|
|
||
Irrigation
|
183,234
|
|
|
2,818
|
|
||
Other
|
18,399
|
|
|
—
|
|
||
Total
|
$
|
477,285
|
|
|
$
|
221,399
|
|
|
|
||
Receivables, net
|
$
|
9,978
|
|
Inventories
|
16,155
|
|
|
Net property, plant, and equipment
|
14,013
|
|
|
Goodwill and intangible assets
|
27,607
|
|
|
Other assets
|
4,912
|
|
|
Total assets
|
$
|
72,665
|
|
|
|
||
Accounts payable
|
$
|
9,201
|
|
Accrued expenses
|
1,536
|
|
|
Deferred income taxes
|
2,223
|
|
|
Total liabilities
|
$
|
12,960
|
|
|
|
||
Net assets
|
59,705
|
|
|
|
ESS
|
|
Utility
|
|
Total
|
||||||
Severance
|
|
$
|
423
|
|
|
$
|
—
|
|
|
$
|
423
|
|
Other cash restructuring expenses
|
|
—
|
|
|
772
|
|
|
772
|
|
|||
Asset impairments/net loss on disposals
|
|
1,145
|
|
|
—
|
|
|
1,145
|
|
|||
Total cost of sales
|
|
1,568
|
|
|
772
|
|
|
2,340
|
|
|||
|
|
|
|
|
|
|
||||||
Severance
|
|
1,978
|
|
|
—
|
|
|
1,978
|
|
|||
Other cash restructuring expenses
|
|
82
|
|
|
—
|
|
|
82
|
|
|||
Total selling, general and administrative expenses
|
|
2,060
|
|
|
—
|
|
|
2,060
|
|
|||
Consolidated total
|
|
$
|
3,628
|
|
|
$
|
772
|
|
|
$
|
4,400
|
|
|
|
Balance at December 30, 2017
|
|
Recognized Restructuring Expense
|
|
Costs Paid or Otherwise Settled
|
|
Balance at March 31, 2018
|
||||||||
Severance
|
|
$
|
—
|
|
|
$
|
2,401
|
|
|
$
|
(2,251
|
)
|
|
$
|
150
|
|
Other cash restructuring expenses
|
|
1,216
|
|
|
772
|
|
|
(1,988
|
)
|
|
—
|
|
||||
Total
|
|
$
|
1,216
|
|
|
$
|
3,173
|
|
|
$
|
(4,239
|
)
|
|
$
|
150
|
|
|
March 31, 2018
|
||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Weighted
Average Life |
||||
Customer Relationships
|
$
|
191,117
|
|
|
$
|
126,168
|
|
|
13 years
|
Proprietary Software & Database
|
3,659
|
|
|
3,115
|
|
|
8 years
|
||
Patents & Proprietary Technology
|
6,748
|
|
|
4,115
|
|
|
11 years
|
||
Other
|
5,035
|
|
|
4,248
|
|
|
3 years
|
||
|
$
|
206,559
|
|
|
$
|
137,646
|
|
|
|
|
December 30, 2017
|
||||||||
|
Gross
Carrying Amount |
|
Accumulated
Amortization |
|
Weighted
Average Life |
||||
Customer Relationships
|
$
|
200,810
|
|
|
$
|
131,062
|
|
|
13 years
|
Proprietary Software & Database
|
3,671
|
|
|
3,107
|
|
|
8 years
|
||
Patents & Proprietary Technology
|
6,693
|
|
|
3,999
|
|
|
11 years
|
||
Other
|
4,861
|
|
|
4,121
|
|
|
3 years
|
||
|
$
|
216,035
|
|
|
$
|
142,289
|
|
|
|
Thirteen Weeks Ended
|
||||
2018
|
|
2017
|
||
3,883
|
|
|
3,863
|
|
|
Estimated
Amortization Expense |
||
2018
|
$
|
14,167
|
|
2019
|
12,986
|
|
|
2020
|
11,879
|
|
|
2021
|
9,796
|
|
|
2022
|
7,494
|
|
|
March 31,
2018 |
|
December 30,
2017 |
|
Year Acquired
|
||||
Webforge
|
$
|
9,793
|
|
|
$
|
9,432
|
|
|
2010
|
Valmont SM
|
10,243
|
|
|
9,973
|
|
|
2014
|
||
Newmark
|
11,111
|
|
|
11,111
|
|
|
2004
|
||
Ingal EPS/Ingal Civil Products
|
7,985
|
|
|
7,690
|
|
|
2010
|
||
Shakespeare
|
4,000
|
|
|
4,000
|
|
|
2014
|
||
Other
|
17,495
|
|
|
22,647
|
|
|
|
||
|
$
|
60,627
|
|
|
$
|
64,853
|
|
|
|
|
Engineered
Support Structures Segment |
|
Utility
Support Structures Segment |
|
Coatings
Segment |
|
Irrigation
Segment |
|
Other
|
|
Total
|
||||||||||||
Gross Balance at December 30, 2017
|
$
|
170,076
|
|
|
$
|
90,248
|
|
|
$
|
76,696
|
|
|
$
|
19,778
|
|
|
$
|
15,814
|
|
|
$
|
372,612
|
|
Accumulated impairment losses
|
(18,670
|
)
|
|
$
|
—
|
|
|
(16,222
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
(34,892
|
)
|
||
Balance at December 30, 2017
|
$
|
151,406
|
|
|
$
|
90,248
|
|
|
$
|
60,474
|
|
|
$
|
19,778
|
|
|
$
|
15,814
|
|
|
$
|
337,720
|
|
Acquisitions
|
—
|
|
|
—
|
|
|
—
|
|
|
3,922
|
|
|
—
|
|
|
3,922
|
|
||||||
Assets held for sale
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(16,420
|
)
|
|
(16,420
|
)
|
||||||
Foreign currency translation
|
1,984
|
|
|
402
|
|
|
(200
|
)
|
|
(140
|
)
|
|
606
|
|
|
2,652
|
|
||||||
Balance at March 31, 2018
|
$
|
153,390
|
|
|
$
|
90,650
|
|
|
$
|
60,274
|
|
|
$
|
23,560
|
|
|
$
|
—
|
|
|
$
|
327,874
|
|
|
2018
|
|
2017
|
||||
Interest
|
$
|
439
|
|
|
$
|
925
|
|
Income taxes
|
2,912
|
|
|
1,898
|
|
|
Basic EPS
|
|
Dilutive
Effect of Stock Options |
|
Diluted EPS
|
||||||
Thirteen weeks ended March 31, 2018:
|
|
|
|
|
|
||||||
Net earnings attributable to Valmont Industries, Inc.
|
$
|
39,281
|
|
|
$
|
—
|
|
|
$
|
39,281
|
|
Shares outstanding (000 omitted)
|
22,609
|
|
|
187
|
|
|
22,796
|
|
|||
Per share amount
|
$
|
1.74
|
|
|
$
|
(0.02
|
)
|
|
$
|
1.72
|
|
Thirteen weeks ended April 1, 2017:
|
|
|
|
|
|
||||||
Net earnings attributable to Valmont Industries, Inc.
|
$
|
38,979
|
|
|
$
|
—
|
|
|
$
|
38,979
|
|
Shares outstanding (000 omitted)
|
22,472
|
|
|
188
|
|
|
22,660
|
|
|||
Per share amount
|
$
|
1.73
|
|
|
$
|
(0.01
|
)
|
|
$
|
1.72
|
|
|
Thirteen Weeks Ended
|
||||||
|
March 31,
2018 |
|
April 1,
2017 |
||||
SALES:
|
|
|
|
||||
Engineered Support Structures segment:
|
|
|
|
||||
Lighting, Traffic, and Highway Safety Products
|
$
|
160,444
|
|
|
$
|
140,802
|
|
Communication Products
|
34,113
|
|
|
31,476
|
|
||
Access Systems
|
30,397
|
|
|
32,671
|
|
||
Engineered Support Structures segment
|
224,954
|
|
|
204,949
|
|
||
Utility Support Structures segment:
|
|
|
|
||||
Steel
|
163,983
|
|
|
148,354
|
|
||
Concrete
|
23,662
|
|
|
26,204
|
|
||
Offshore and Other Complex Steel Structures
|
22,217
|
|
|
25,707
|
|
||
Utility Support Structures segment
|
209,862
|
|
|
200,265
|
|
||
Coatings segment
|
84,947
|
|
|
73,468
|
|
||
Irrigation segment
|
187,953
|
|
|
167,224
|
|
||
Other
|
18,399
|
|
|
19,594
|
|
||
Total
|
726,115
|
|
|
665,500
|
|
||
INTERSEGMENT SALES:
|
|
|
|
||||
Engineered Support Structures segment
|
9,038
|
|
|
11,873
|
|
||
Utility Support Structures segment
|
3
|
|
|
235
|
|
||
Coatings segment
|
16,489
|
|
|
14,136
|
|
||
Irrigation segment
|
1,901
|
|
|
1,783
|
|
||
Other
|
—
|
|
|
—
|
|
||
Total
|
27,431
|
|
|
28,027
|
|
||
NET SALES:
|
|
|
|
||||
Engineered Support Structures segment
|
215,916
|
|
|
193,076
|
|
||
Utility Support Structures segment
|
209,859
|
|
|
200,030
|
|
||
Coatings segment
|
68,458
|
|
|
59,332
|
|
||
Irrigation segment
|
186,052
|
|
|
165,441
|
|
||
Other
|
18,399
|
|
|
19,594
|
|
||
Total
|
$
|
698,684
|
|
|
$
|
637,473
|
|
|
|
|
|
||||
OPERATING INCOME:
|
|
|
|
||||
Engineered Support Structures segment
|
$
|
6,947
|
|
|
$
|
9,464
|
|
Utility Support Structures segment
|
23,367
|
|
|
24,207
|
|
||
Coatings segment
|
11,867
|
|
|
9,406
|
|
||
Irrigation segment
|
33,887
|
|
|
30,291
|
|
||
Other
|
(579
|
)
|
|
2,086
|
|
||
Adjustment to LIFO inventory valuation method
|
(1,081
|
)
|
|
(779
|
)
|
||
Corporate
|
(10,448
|
)
|
|
(10,019
|
)
|
||
Total
|
$
|
63,960
|
|
|
$
|
64,656
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
Net sales
|
$
|
315,992
|
|
|
$
|
121,171
|
|
|
$
|
332,136
|
|
|
$
|
(70,615
|
)
|
|
$
|
698,684
|
|
Cost of sales
|
235,596
|
|
|
94,459
|
|
|
271,716
|
|
|
(72,327
|
)
|
|
529,444
|
|
|||||
Gross profit
|
80,396
|
|
|
26,712
|
|
|
60,420
|
|
|
1,712
|
|
|
169,240
|
|
|||||
Selling, general and administrative expenses
|
46,531
|
|
|
11,917
|
|
|
46,832
|
|
|
—
|
|
|
105,280
|
|
|||||
Operating income
|
33,865
|
|
|
14,795
|
|
|
13,588
|
|
|
1,712
|
|
|
63,960
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(10,881
|
)
|
|
(3,880
|
)
|
|
(193
|
)
|
|
3,880
|
|
|
(11,074
|
)
|
|||||
Interest income
|
176
|
|
|
10
|
|
|
4,961
|
|
|
(3,880
|
)
|
|
1,267
|
|
|||||
Other
|
(106
|
)
|
|
12
|
|
|
(1,047
|
)
|
|
—
|
|
|
(1,141
|
)
|
|||||
|
(10,811
|
)
|
|
(3,858
|
)
|
|
3,721
|
|
|
—
|
|
|
(10,948
|
)
|
|||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries
|
23,054
|
|
|
10,937
|
|
|
17,309
|
|
|
1,712
|
|
|
53,012
|
|
|||||
Income tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
||||||||||
Current
|
2,769
|
|
|
886
|
|
|
3,921
|
|
|
137
|
|
|
7,713
|
|
|||||
Deferred
|
5,591
|
|
|
1,791
|
|
|
(2,563
|
)
|
|
—
|
|
|
4,819
|
|
|||||
|
8,360
|
|
|
2,677
|
|
|
1,358
|
|
|
137
|
|
|
12,532
|
|
|||||
Earnings before equity in earnings of nonconsolidated subsidiaries
|
14,694
|
|
|
8,260
|
|
|
15,951
|
|
|
1,575
|
|
|
40,480
|
|
|||||
Equity in earnings of nonconsolidated subsidiaries
|
24,587
|
|
|
2,729
|
|
|
—
|
|
|
(27,316
|
)
|
|
—
|
|
|||||
Net earnings
|
39,281
|
|
|
10,989
|
|
|
15,951
|
|
|
(25,741
|
)
|
|
40,480
|
|
|||||
Less: Earnings attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(1,199
|
)
|
|
—
|
|
|
(1,199
|
)
|
|||||
Net earnings attributable to Valmont Industries, Inc
|
$
|
39,281
|
|
|
$
|
10,989
|
|
|
$
|
14,752
|
|
|
$
|
(25,741
|
)
|
|
$
|
39,281
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
Net sales
|
$
|
293,265
|
|
|
$
|
117,225
|
|
|
$
|
295,296
|
|
|
$
|
(68,313
|
)
|
|
$
|
637,473
|
|
Cost of sales
|
216,486
|
|
|
91,489
|
|
|
232,490
|
|
|
(67,597
|
)
|
|
472,868
|
|
|||||
Gross profit
|
76,779
|
|
|
25,736
|
|
|
62,806
|
|
|
(716
|
)
|
|
164,605
|
|
|||||
Selling, general and administrative expenses
|
50,217
|
|
|
11,660
|
|
|
38,072
|
|
|
—
|
|
|
99,949
|
|
|||||
Operating income
|
26,562
|
|
|
14,076
|
|
|
24,734
|
|
|
(716
|
)
|
|
64,656
|
|
|||||
Other income (expense):
|
|
|
|
|
|
|
|
|
|
||||||||||
Interest expense
|
(11,142
|
)
|
|
(2,266
|
)
|
|
(162
|
)
|
|
2,266
|
|
|
(11,304
|
)
|
|||||
Interest income
|
151
|
|
|
14
|
|
|
3,028
|
|
|
(2,266
|
)
|
|
927
|
|
|||||
Other
|
1,354
|
|
|
16
|
|
|
(325
|
)
|
|
—
|
|
|
1,045
|
|
|||||
|
(9,637
|
)
|
|
(2,236
|
)
|
|
2,541
|
|
|
—
|
|
|
(9,332
|
)
|
|||||
Earnings before income taxes and equity in earnings of nonconsolidated subsidiaries
|
16,925
|
|
|
11,840
|
|
|
27,275
|
|
|
(716
|
)
|
|
55,324
|
|
|||||
Income tax expense (benefit):
|
|
|
|
|
|
|
|
|
|
||||||||||
Current
|
(4,887
|
)
|
|
5,320
|
|
|
1,109
|
|
|
(244
|
)
|
|
1,298
|
|
|||||
Deferred
|
11,327
|
|
|
—
|
|
|
2,738
|
|
|
—
|
|
|
14,065
|
|
|||||
|
6,440
|
|
|
5,320
|
|
|
3,847
|
|
|
(244
|
)
|
|
15,363
|
|
|||||
Earnings before equity in earnings of nonconsolidated subsidiaries
|
10,485
|
|
|
6,520
|
|
|
23,428
|
|
|
(472
|
)
|
|
39,961
|
|
|||||
Equity in earnings of nonconsolidated subsidiaries
|
28,494
|
|
|
(980
|
)
|
|
—
|
|
|
(27,514
|
)
|
|
—
|
|
|||||
Net earnings
|
38,979
|
|
|
5,540
|
|
|
23,428
|
|
|
(27,986
|
)
|
|
39,961
|
|
|||||
Less: Earnings attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(982
|
)
|
|
—
|
|
|
(982
|
)
|
|||||
Net earnings attributable to Valmont Industries, Inc
|
$
|
38,979
|
|
|
$
|
5,540
|
|
|
$
|
22,446
|
|
|
$
|
(27,986
|
)
|
|
$
|
38,979
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
Net earnings
|
$
|
39,281
|
|
|
$
|
10,989
|
|
|
$
|
15,951
|
|
|
$
|
(25,741
|
)
|
|
$
|
40,480
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized translation gain (loss)
|
—
|
|
|
(8,680
|
)
|
|
15,484
|
|
|
—
|
|
|
6,804
|
|
|||||
Unrealized gain/(loss) on hedging activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment hedge
|
(789
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(789
|
)
|
|||||
Amortization cost included in interest expense
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
Cash flow hedges
|
(93
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(93
|
)
|
|||||
Equity in other comprehensive income
|
3,256
|
|
|
—
|
|
|
—
|
|
|
(3,256
|
)
|
|
—
|
|
|||||
Other comprehensive income (loss)
|
2,393
|
|
|
(8,680
|
)
|
|
15,484
|
|
|
(3,256
|
)
|
|
5,941
|
|
|||||
Comprehensive income (loss)
|
41,674
|
|
|
2,309
|
|
|
31,435
|
|
|
(28,997
|
)
|
|
46,421
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
(4,747
|
)
|
|
—
|
|
|
(4,747
|
)
|
|||||
Comprehensive income (loss) attributable to Valmont Industries, Inc.
|
$
|
41,674
|
|
|
$
|
2,309
|
|
|
$
|
26,688
|
|
|
$
|
(28,997
|
)
|
|
$
|
41,674
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
Net earnings
|
$
|
38,979
|
|
|
$
|
5,540
|
|
|
$
|
23,428
|
|
|
$
|
(27,986
|
)
|
|
$
|
39,961
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
|
|
||||||||||
Foreign currency translation adjustments:
|
|
|
|
|
|
|
|
|
|
||||||||||
Unrealized translation gain (loss)
|
—
|
|
|
69,383
|
|
|
(49,993
|
)
|
|
—
|
|
|
19,390
|
|
|||||
Unrealized gain/(loss) on hedging activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net investment hedge
|
(526
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(526
|
)
|
|||||
Amortization cost included in interest expense
|
19
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
19
|
|
|||||
Equity in other comprehensive income
|
20,613
|
|
|
—
|
|
|
—
|
|
|
(20,613
|
)
|
|
—
|
|
|||||
Other comprehensive income (loss)
|
20,106
|
|
|
69,383
|
|
|
(49,993
|
)
|
|
(20,613
|
)
|
|
18,883
|
|
|||||
Comprehensive income (loss)
|
59,085
|
|
|
74,923
|
|
|
(26,565
|
)
|
|
(48,599
|
)
|
|
58,844
|
|
|||||
Comprehensive income attributable to noncontrolling interests
|
—
|
|
|
—
|
|
|
241
|
|
|
—
|
|
|
241
|
|
|||||
Comprehensive income (loss) attributable to Valmont Industries, Inc.
|
$
|
59,085
|
|
|
$
|
74,923
|
|
|
$
|
(26,324
|
)
|
|
$
|
(48,599
|
)
|
|
$
|
59,085
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
ASSETS
|
|
|
|
|
|
|
|
|
|
||||||||||
Current assets:
|
|
|
|
|
|
|
|
|
|
||||||||||
Cash and cash equivalents
|
$
|
71,423
|
|
|
$
|
3,409
|
|
|
$
|
404,831
|
|
|
$
|
—
|
|
|
$
|
479,663
|
|
Receivables, net
|
139,677
|
|
|
67,545
|
|
|
259,788
|
|
|
—
|
|
|
467,010
|
|
|||||
Inventories
|
135,973
|
|
|
38,734
|
|
|
197,998
|
|
|
(2,700
|
)
|
|
370,005
|
|
|||||
Prepaid expenses and other assets
|
42,926
|
|
|
37,527
|
|
|
46,798
|
|
|
—
|
|
|
127,251
|
|
|||||
Assets held for sale
|
—
|
|
|
—
|
|
|
72,665
|
|
|
—
|
|
|
72,665
|
|
|||||
Refundable income taxes
|
6,749
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
6,749
|
|
|||||
Total current assets
|
396,748
|
|
|
147,215
|
|
|
982,080
|
|
|
(2,700
|
)
|
|
1,523,343
|
|
|||||
Property, plant and equipment, at cost
|
560,719
|
|
|
165,996
|
|
|
410,437
|
|
|
—
|
|
|
1,137,152
|
|
|||||
Less accumulated depreciation and amortization
|
374,716
|
|
|
87,080
|
|
|
171,644
|
|
|
—
|
|
|
633,440
|
|
|||||
Net property, plant and equipment
|
186,003
|
|
|
78,916
|
|
|
238,793
|
|
|
—
|
|
|
503,712
|
|
|||||
Goodwill
|
20,108
|
|
|
110,562
|
|
|
197,204
|
|
|
—
|
|
|
327,874
|
|
|||||
Other intangible assets
|
117
|
|
|
30,057
|
|
|
99,366
|
|
|
—
|
|
|
129,540
|
|
|||||
Investment in subsidiaries and intercompany accounts
|
1,430,127
|
|
|
1,178,134
|
|
|
947,570
|
|
|
(3,555,831
|
)
|
|
—
|
|
|||||
Other assets
|
50,467
|
|
|
—
|
|
|
83,128
|
|
|
—
|
|
|
133,595
|
|
|||||
Total assets
|
$
|
2,083,570
|
|
|
$
|
1,544,884
|
|
|
$
|
2,548,141
|
|
|
$
|
(3,558,531
|
)
|
|
$
|
2,618,064
|
|
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
|
|
|
|
|
|
|
|
|
||||||||||
Current liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Current installments of long-term debt
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
951
|
|
|
$
|
—
|
|
|
$
|
951
|
|
Notes payable to banks
|
—
|
|
|
—
|
|
|
377
|
|
|
—
|
|
|
377
|
|
|||||
Accounts payable
|
51,996
|
|
|
14,047
|
|
|
124,859
|
|
|
—
|
|
|
190,902
|
|
|||||
Accrued employee compensation and benefits
|
33,685
|
|
|
5,623
|
|
|
28,620
|
|
|
—
|
|
|
67,928
|
|
|||||
Accrued expenses
|
37,633
|
|
|
6,571
|
|
|
48,447
|
|
|
—
|
|
|
92,651
|
|
|||||
Liabilities held for sale
|
—
|
|
|
—
|
|
|
12,960
|
|
|
—
|
|
|
12,960
|
|
|||||
Dividends payable
|
8,493
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,493
|
|
|||||
Total current liabilities
|
131,807
|
|
|
26,241
|
|
|
216,214
|
|
|
—
|
|
|
374,262
|
|
|||||
Deferred income taxes
|
925
|
|
|
16,883
|
|
|
21,861
|
|
|
—
|
|
|
39,669
|
|
|||||
Long-term debt, excluding current installments
|
750,705
|
|
|
182,065
|
|
|
9,601
|
|
|
(188,724
|
)
|
|
753,647
|
|
|||||
Defined benefit pension liability
|
—
|
|
|
—
|
|
|
195,490
|
|
|
—
|
|
|
195,490
|
|
|||||
Deferred compensation
|
42,988
|
|
|
—
|
|
|
5,609
|
|
|
—
|
|
|
48,597
|
|
|||||
Other noncurrent liabilities
|
11,904
|
|
|
5
|
|
|
9,134
|
|
|
—
|
|
|
21,043
|
|
|||||
Shareholders’ equity:
|
|
|
|
|
|
|
|
|
|
||||||||||
Common stock of $1 par value
|
27,900
|
|
|
457,950
|
|
|
648,682
|
|
|
(1,106,632
|
)
|
|
27,900
|
|
|||||
Additional paid-in capital
|
—
|
|
|
162,906
|
|
|
1,107,536
|
|
|
(1,270,442
|
)
|
|
—
|
|
|||||
Retained earnings
|
1,996,474
|
|
|
633,032
|
|
|
630,982
|
|
|
(1,264,014
|
)
|
|
1,996,474
|
|
|||||
Accumulated other comprehensive income (loss)
|
(276,629
|
)
|
|
65,802
|
|
|
(337,083
|
)
|
|
271,281
|
|
|
(276,629
|
)
|
|||||
Treasury stock
|
(602,504
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(602,504
|
)
|
|||||
Total Valmont Industries, Inc. shareholders’ equity
|
1,145,241
|
|
|
1,319,690
|
|
|
2,050,117
|
|
|
(3,369,807
|
)
|
|
1,145,241
|
|
|||||
Noncontrolling interest in consolidated subsidiaries
|
—
|
|
|
—
|
|
|
40,115
|
|
|
—
|
|
|
40,115
|
|
|||||
Total shareholders’ equity
|
1,145,241
|
|
|
1,319,690
|
|
|
2,090,232
|
|
|
(3,369,807
|
)
|
|
1,185,356
|
|
|||||
Total liabilities and shareholders’ equity
|
$
|
2,083,570
|
|
|
$
|
1,544,884
|
|
|
$
|
2,548,141
|
|
|
$
|
(3,558,531
|
)
|
|
$
|
2,618,064
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings
|
$
|
39,281
|
|
|
$
|
10,989
|
|
|
$
|
15,951
|
|
|
$
|
(25,741
|
)
|
|
$
|
40,480
|
|
Adjustments to reconcile net earnings to net cash flows from operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
6,444
|
|
|
3,478
|
|
|
11,256
|
|
|
—
|
|
|
21,178
|
|
|||||
Noncash loss on trading securities
|
—
|
|
|
—
|
|
|
71
|
|
|
—
|
|
|
71
|
|
|||||
Impairment of property, plant and equipment
|
—
|
|
|
—
|
|
|
1,145
|
|
|
—
|
|
|
1,145
|
|
|||||
Stock-based compensation
|
2,775
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,775
|
|
|||||
Defined benefit pension plan expense
|
—
|
|
|
—
|
|
|
(594
|
)
|
|
—
|
|
|
(594
|
)
|
|||||
Contribution to defined benefit pension plan
|
—
|
|
|
—
|
|
|
(731
|
)
|
|
—
|
|
|
(731
|
)
|
|||||
Loss (gain) on sale of property, plant and equipment
|
—
|
|
|
4
|
|
|
(284
|
)
|
|
—
|
|
|
(280
|
)
|
|||||
Equity in earnings in nonconsolidated subsidiaries
|
(24,587
|
)
|
|
(2,729
|
)
|
|
—
|
|
|
27,316
|
|
|
—
|
|
|||||
Deferred income taxes
|
5,591
|
|
|
1,791
|
|
|
(2,563
|
)
|
|
—
|
|
|
4,819
|
|
|||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Receivables
|
10,407
|
|
|
15,450
|
|
|
3,937
|
|
|
—
|
|
|
29,794
|
|
|||||
Inventories
|
(934
|
)
|
|
4,089
|
|
|
(3,208
|
)
|
|
(1,148
|
)
|
|
(1,201
|
)
|
|||||
Prepaid expenses and other assets
|
2,202
|
|
|
(31,130
|
)
|
|
(3,097
|
)
|
|
—
|
|
|
(32,025
|
)
|
|||||
Accounts payable
|
(17,919
|
)
|
|
(3,992
|
)
|
|
(7,538
|
)
|
|
—
|
|
|
(29,449
|
)
|
|||||
Accrued expenses
|
(2,606
|
)
|
|
(6,178
|
)
|
|
2,377
|
|
|
—
|
|
|
(6,407
|
)
|
|||||
Other noncurrent liabilities
|
861
|
|
|
—
|
|
|
(421
|
)
|
|
—
|
|
|
440
|
|
|||||
Income taxes payable (refundable)
|
(7,862
|
)
|
|
(514
|
)
|
|
11,409
|
|
|
—
|
|
|
3,033
|
|
|||||
Net cash flows from operating activities
|
13,653
|
|
|
(8,742
|
)
|
|
27,710
|
|
|
427
|
|
|
33,048
|
|
|||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property, plant and equipment
|
(3,928
|
)
|
|
(5,241
|
)
|
|
(7,079
|
)
|
|
—
|
|
|
(16,248
|
)
|
|||||
Proceeds from sale of assets
|
5
|
|
|
—
|
|
|
709
|
|
|
—
|
|
|
714
|
|
|||||
Acquisitions, net of cash acquired
|
—
|
|
|
—
|
|
|
(4,800
|
)
|
|
—
|
|
|
(4,800
|
)
|
|||||
Loss from settlement of net investment hedge
|
(863
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(863
|
)
|
|||||
Other, net
|
4,551
|
|
|
8,633
|
|
|
(14,539
|
)
|
|
(427
|
)
|
|
(1,782
|
)
|
|||||
Net cash flows from investing activities
|
(235
|
)
|
|
3,392
|
|
|
(25,709
|
)
|
|
(427
|
)
|
|
(22,979
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net borrowings under short-term agreements
|
—
|
|
|
—
|
|
|
219
|
|
|
—
|
|
|
219
|
|
|||||
Principal payments on long-term borrowings
|
|
|
|
—
|
|
|
(249
|
)
|
|
—
|
|
|
(249
|
)
|
|||||
Dividends paid
|
(8,510
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,510
|
)
|
|||||
Dividends to noncontrolling interest
|
—
|
|
|
—
|
|
|
(1,281
|
)
|
|
—
|
|
|
(1,281
|
)
|
|||||
Purchase of noncontrolling interest
|
—
|
|
|
—
|
|
|
(5,510
|
)
|
|
—
|
|
|
(5,510
|
)
|
|||||
Intercompany capital contribution
|
(3,492
|
)
|
|
3,492
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|||||
Proceeds from exercises under stock plans
|
2,972
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,972
|
|
|||||
Purchase of treasury shares
|
(14,790
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(14,790
|
)
|
|||||
Purchase of common treasury shares - stock plan exercises
|
(1,504
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,504
|
)
|
|||||
Net cash flows from financing activities
|
(25,324
|
)
|
|
3,492
|
|
|
(6,821
|
)
|
|
—
|
|
|
(28,653
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
(37
|
)
|
|
5,479
|
|
|
—
|
|
|
5,442
|
|
|||||
Net change in cash and cash equivalents
|
(11,906
|
)
|
|
(1,895
|
)
|
|
659
|
|
|
—
|
|
|
(13,142
|
)
|
|||||
Cash and cash equivalents—beginning of year
|
83,329
|
|
|
5,304
|
|
|
404,172
|
|
|
—
|
|
|
492,805
|
|
|||||
Cash and cash equivalents—end of period
|
$
|
71,423
|
|
|
$
|
3,409
|
|
|
$
|
404,831
|
|
|
$
|
—
|
|
|
$
|
479,663
|
|
|
Parent
|
|
Guarantors
|
|
Non-
Guarantors |
|
Eliminations
|
|
Total
|
||||||||||
Cash flows from operating activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net earnings
|
$
|
38,979
|
|
|
$
|
5,540
|
|
|
$
|
23,428
|
|
|
$
|
(27,986
|
)
|
|
$
|
39,961
|
|
Adjustments to reconcile net earnings to net cash flows from operations:
|
|
|
|
|
|
|
|
|
|
||||||||||
Depreciation and amortization
|
6,536
|
|
|
3,557
|
|
|
10,734
|
|
|
—
|
|
|
20,827
|
|
|||||
Noncash loss on trading securities
|
—
|
|
|
—
|
|
|
70
|
|
|
—
|
|
|
70
|
|
|||||
Stock-based compensation
|
2,494
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
2,494
|
|
|||||
Defined benefit pension plan expense
|
—
|
|
|
—
|
|
|
154
|
|
|
—
|
|
|
154
|
|
|||||
Contribution to defined benefit pension plan
|
—
|
|
|
—
|
|
|
(25,379
|
)
|
|
—
|
|
|
(25,379
|
)
|
|||||
Loss (gain) on sale of property, plant and equipment
|
(5
|
)
|
|
(2
|
)
|
|
(95
|
)
|
|
—
|
|
|
(102
|
)
|
|||||
Equity in earnings in nonconsolidated subsidiaries
|
(28,494
|
)
|
|
980
|
|
|
—
|
|
|
27,514
|
|
|
—
|
|
|||||
Deferred income taxes
|
11,327
|
|
|
—
|
|
|
2,738
|
|
|
—
|
|
|
14,065
|
|
|||||
Changes in assets and liabilities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Receivables
|
1,116
|
|
|
(13,699
|
)
|
|
(146
|
)
|
|
—
|
|
|
(12,729
|
)
|
|||||
Inventories
|
(17,105
|
)
|
|
(3,865
|
)
|
|
(14,563
|
)
|
|
716
|
|
|
(34,817
|
)
|
|||||
Prepaid expenses and other assets
|
3,688
|
|
|
27
|
|
|
(13,513
|
)
|
|
—
|
|
|
(9,798
|
)
|
|||||
Accounts payable
|
2,278
|
|
|
1,826
|
|
|
10,020
|
|
|
—
|
|
|
14,124
|
|
|||||
Accrued expenses
|
12,588
|
|
|
(3,697
|
)
|
|
5,129
|
|
|
—
|
|
|
14,020
|
|
|||||
Other noncurrent liabilities
|
848
|
|
|
—
|
|
|
(236
|
)
|
|
—
|
|
|
612
|
|
|||||
Income taxes payable (refundable)
|
(9,839
|
)
|
|
22
|
|
|
9,730
|
|
|
—
|
|
|
(87
|
)
|
|||||
Net cash flows from operating activities
|
24,411
|
|
|
(9,311
|
)
|
|
8,071
|
|
|
244
|
|
|
23,415
|
|
|||||
Cash flows from investing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Purchase of property, plant and equipment
|
(4,547
|
)
|
|
(1,797
|
)
|
|
(7,824
|
)
|
|
—
|
|
|
(14,168
|
)
|
|||||
Proceeds from sale of assets
|
7
|
|
|
6
|
|
|
289
|
|
|
—
|
|
|
302
|
|
|||||
Other, net
|
8,474
|
|
|
12,586
|
|
|
(22,531
|
)
|
|
(244
|
)
|
|
(1,715
|
)
|
|||||
Net cash flows from investing activities
|
3,934
|
|
|
10,795
|
|
|
(30,066
|
)
|
|
(244
|
)
|
|
(15,581
|
)
|
|||||
Cash flows from financing activities:
|
|
|
|
|
|
|
|
|
|
||||||||||
Net borrowings under short-term agreements
|
—
|
|
|
—
|
|
|
198
|
|
|
—
|
|
|
198
|
|
|||||
Principal payments on long-term borrowings
|
—
|
|
|
—
|
|
|
(215
|
)
|
|
—
|
|
|
(215
|
)
|
|||||
Dividends paid
|
(8,445
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8,445
|
)
|
|||||
Intercompany interest on long-term note
|
—
|
|
|
(2,263
|
)
|
|
2,263
|
|
|
—
|
|
|
—
|
|
|||||
Dividends to noncontrolling interest
|
—
|
|
|
—
|
|
|
(422
|
)
|
|
—
|
|
|
(422
|
)
|
|||||
Proceeds from exercises under stock plans
|
8,894
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
8,894
|
|
|||||
Purchase of common treasury shares - stock plan exercises
|
(2,870
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,870
|
)
|
|||||
Net cash flows from financing activities
|
(2,421
|
)
|
|
(2,263
|
)
|
|
1,824
|
|
|
—
|
|
|
(2,860
|
)
|
|||||
Effect of exchange rate changes on cash and cash equivalents
|
—
|
|
|
187
|
|
|
7,539
|
|
|
—
|
|
|
7,726
|
|
|||||
Net change in cash and cash equivalents
|
25,924
|
|
|
(592
|
)
|
|
(12,632
|
)
|
|
—
|
|
|
12,700
|
|
|||||
Cash and cash equivalents—beginning of year
|
67,225
|
|
|
6,071
|
|
|
339,220
|
|
|
—
|
|
|
412,516
|
|
|||||
Cash and cash equivalents—end of period
|
$
|
93,149
|
|
|
$
|
5,479
|
|
|
$
|
326,588
|
|
|
$
|
—
|
|
|
$
|
425,216
|
|
|
Thirteen Weeks Ended
|
|||||||||
|
March 31, 2018
|
|
April 1, 2017
|
|
% Incr. (Decr.)
|
|||||
Consolidated
|
|
|
|
|
|
|||||
Net sales
|
$
|
698.7
|
|
|
$
|
637.5
|
|
|
9.6
|
%
|
Gross profit
|
169.2
|
|
|
164.6
|
|
|
2.8
|
%
|
||
as a percent of sales
|
24.2
|
%
|
|
25.8
|
%
|
|
|
|||
SG&A expense
|
105.3
|
|
|
99.9
|
|
|
5.4
|
%
|
||
as a percent of sales
|
15.1
|
%
|
|
15.7
|
%
|
|
|
|||
Operating income
|
64.0
|
|
|
64.7
|
|
|
(1.1
|
)%
|
||
as a percent of sales
|
9.2
|
%
|
|
10.1
|
%
|
|
|
|||
Net interest expense
|
9.8
|
|
|
10.4
|
|
|
(5.8
|
)%
|
||
Effective tax rate
|
23.6
|
%
|
|
27.8
|
%
|
|
|
|||
Net earnings
|
$
|
39.3
|
|
|
$
|
39.0
|
|
|
0.8
|
%
|
Diluted earnings per share
|
$
|
1.72
|
|
|
$
|
1.72
|
|
|
—
|
%
|
Engineered Support Structures (ESS)
|
|
|
|
|
|
|||||
Net sales
|
$
|
215.9
|
|
|
$
|
193.1
|
|
|
11.8
|
%
|
Gross profit
|
49.3
|
|
|
48.2
|
|
|
2.3
|
%
|
||
SG&A expense
|
42.4
|
|
|
38.7
|
|
|
9.6
|
%
|
||
Operating income
|
6.9
|
|
|
9.5
|
|
|
(27.4
|
)%
|
||
Utility Support Structures (Utility)
|
|
|
|
|
|
|||||
Net sales
|
$
|
209.9
|
|
|
$
|
200.1
|
|
|
4.9
|
%
|
Gross profit
|
43.6
|
|
|
43.4
|
|
|
0.5
|
%
|
||
SG&A expense
|
20.3
|
|
|
19.2
|
|
|
5.7
|
%
|
||
Operating income
|
23.3
|
|
|
24.2
|
|
|
(3.7
|
)%
|
||
Coatings
|
|
|
|
|
|
|||||
Net sales
|
$
|
68.5
|
|
|
$
|
59.3
|
|
|
15.5
|
%
|
Gross profit
|
20.6
|
|
|
17.7
|
|
|
16.4
|
%
|
||
SG&A expense
|
8.7
|
|
|
8.3
|
|
|
4.8
|
%
|
||
Operating income
|
11.9
|
|
|
9.4
|
|
|
26.6
|
%
|
||
Irrigation
|
|
|
|
|
|
|||||
Net sales
|
$
|
186.0
|
|
|
$
|
165.4
|
|
|
12.5
|
%
|
Gross profit
|
56.0
|
|
|
52.8
|
|
|
6.1
|
%
|
||
SG&A expense
|
22.1
|
|
|
22.5
|
|
|
(1.8
|
)%
|
||
Operating income
|
33.9
|
|
|
30.3
|
|
|
11.9
|
%
|
||
Other
|
|
|
|
|
|
|||||
Net sales
|
$
|
18.4
|
|
|
$
|
19.6
|
|
|
(6.1
|
)%
|
Gross profit
|
0.8
|
|
|
3.3
|
|
|
(75.8
|
)%
|
||
SG&A expense
|
1.4
|
|
|
1.2
|
|
|
16.7
|
%
|
||
Operating income
|
(0.6
|
)
|
|
2.1
|
|
|
(128.6
|
)%
|
||
Adjustment to LIFO inventory valuation method
|
|
|
|
|
|
|||||
Gross profit
|
$
|
(1.1
|
)
|
|
$
|
(0.8
|
)
|
|
37.5
|
%
|
Operating income
|
(1.1
|
)
|
|
(0.8
|
)
|
|
37.5
|
%
|
||
Net corporate expense
|
|
|
|
|
|
|||||
Gross profit
|
$
|
—
|
|
|
$
|
—
|
|
|
NM
|
|
SG&A expense
|
10.4
|
|
|
10.0
|
|
|
4.0
|
%
|
||
Operating loss
|
(10.4
|
)
|
|
(10.0
|
)
|
|
(4.0
|
)%
|
|
First quarter
|
|||||||||||||||||
|
Total
|
ESS
|
Utility
|
Coatings
|
Irrigation
|
Other
|
||||||||||||
Sales - 2017
|
$
|
637.5
|
|
$
|
193.1
|
|
$
|
200.1
|
|
$
|
59.3
|
|
$
|
165.4
|
|
$
|
19.6
|
|
Volume
|
9.4
|
|
6.5
|
|
(10.9
|
)
|
2.9
|
|
15.2
|
|
(4.3
|
)
|
||||||
Pricing/mix
|
31.6
|
|
3.6
|
|
16.8
|
|
5.2
|
|
3.6
|
|
2.4
|
|
||||||
Acquisitions
|
4.6
|
|
3.7
|
|
—
|
|
—
|
|
0.9
|
|
—
|
|
||||||
Currency translation
|
15.6
|
|
9.0
|
|
3.9
|
|
1.1
|
|
0.9
|
|
0.7
|
|
||||||
Sales - 2018
|
$
|
698.7
|
|
$
|
215.9
|
|
$
|
209.9
|
|
$
|
68.5
|
|
$
|
186.0
|
|
$
|
18.4
|
|
|
Total
|
ESS
|
Utility
|
Coatings
|
Irrigation
|
Other
|
Corporate
|
||||||||||||||
First quarter
|
$
|
0.4
|
|
$
|
—
|
|
$
|
0.1
|
|
$
|
0.2
|
|
$
|
0.1
|
|
$
|
—
|
|
$
|
—
|
|
•
|
$250.2 million face value ($252.7 million carrying value) of senior unsecured notes that bear interest at 6.625% per annum and are due in April 2020.
|
•
|
$250 million face value ($248.9 million carrying value) of senior unsecured notes that bear interest at 5.00% per annum and are due in October 2044.
|
•
|
$250 million face value ($246.8 million carrying value) of unsecured notes that bear interest at 5.25% per annum and are due in October 2054.
|
•
|
We are allowed to repurchase the notes at specified prepayment premiums. All three tranches of these notes are guaranteed by certain of our subsidiaries.
|
•
|
Leverage ratio
- Interest-bearing debt is not to exceed 3.5X Adjusted EBITDA (or 3.75X Adjusted EBITDA after certain material acquisitions) of the prior four quarters; and
|
•
|
Interest earned ratio -
Adjusted EBITDA over the prior four quarters must be at least 2.5X our interest expense over the same period.
|
Interest-bearing debt
|
$
|
754,975
|
|
Adjusted EBITDA-last four quarters
|
353,978
|
|
|
Leverage ratio
|
2.13
|
|
|
|
|
||
Adjusted EBITDA-last four quarters
|
$
|
353,978
|
|
Interest expense-last four quarters
|
44,415
|
|
|
Interest earned ratio
|
7.97
|
|
Net cash flows from operations
|
$
|
142,781
|
|
Interest expense
|
44,415
|
|
|
Income tax expense
|
103,314
|
|
|
Impairment of property, plant and equipment
|
(1,145
|
)
|
|
Loss on investment
|
(238
|
)
|
|
Deferred income tax benefit
|
(30,509
|
)
|
|
Noncontrolling interest
|
(6,298
|
)
|
|
Stock-based compensation
|
(10,987
|
)
|
|
Pension plan expense
|
100
|
|
|
Contribution to pension plan
|
15,597
|
|
|
Changes in assets and liabilities
|
88,445
|
|
|
Other
|
4,103
|
|
|
EBITDA
|
349,578
|
|
|
Cash restructuring expenses
|
3,255
|
|
|
Impairment of property, plant and equipment
|
1,145
|
|
|
Adjusted EBITDA
|
$
|
353,978
|
|
Net earnings attributable to Valmont Industries, Inc.
|
$
|
116,542
|
|
Interest expense
|
44,415
|
|
|
Income tax expense
|
103,314
|
|
|
Depreciation and amortization expense
|
85,307
|
|
|
EBITDA
|
349,578
|
|
|
Cash restructuring expenses
|
3,255
|
|
|
Impairment of property, plant, and equipment
|
1,145
|
|
|
Adjusted EBITDA
|
$
|
353,978
|
|
Period
|
|
Total Number of
Shares Purchased |
|
Average Price
paid per share |
|
Total Number of
Shares Purchased as Part of Publicly Announced Plans or Programs |
|
Approximate Dollar Value of Maximum Number of Shares that may yet be Purchased under the Program (1)
|
||||||
December 31, 2017 to January 27, 2018
|
—
|
|
|
$
|
—
|
|
|
—
|
|
|
$
|
132,172,000
|
|
|
January 28, 2018 to March 3, 2018
|
34,589
|
|
|
146.22
|
|
|
34,589
|
|
|
127,114,000
|
|
|||
March 4, 2018 to March 31, 2018
|
66,798
|
|
|
145.70
|
|
|
66,798
|
|
|
117,382,000
|
|
|||
Total
|
101,387
|
|
|
$
|
145.87
|
|
|
101,387
|
|
|
$
|
117,382,000
|
|
|
For
|
|
Withheld
|
|
Broker Non-Votes
|
|||
Daniel P. Neary
|
19,383,693
|
|
|
426,603
|
|
|
1,583,888
|
|
Theo Freye
|
19,627,341
|
|
|
182,955
|
|
|
1,583,888
|
|
Stephen G. Kaniewski
|
19,495,931
|
|
|
314,365
|
|
|
1,583,888
|
|
For
|
19,581,901
|
|
Against
|
207,309
|
|
Abstain
|
21,086
|
|
Broker non-votes
|
1,583,888
|
|
For
|
19,076,535
|
|
Against
|
715,994
|
|
Abstain
|
17,767
|
|
Broker non-votes
|
1,583,888
|
|
For
|
21,091,166
|
|
Against
|
260,023
|
|
Abstain
|
42,995
|
|
(a)
|
Exhibits
|
Exhibit No.
|
|
Description
|
|
2018 Stock Plan. This document was filed as Exhibit 10.1 to the Company’s Current Report on Form 8-K (Commission file number 001-31429) dated March 12, 2018 and incorporated herein by this reference.
|
|
|
Form of 2018 Stock Plan Stock Option Agreement
|
|
|
Form of 2018 Stock Plan Restricted Stock Unit Agreement
|
|
|
Form of 2018 Stock Plan Restricted Stock Unit Agreement (Directors)
|
|
|
Section 302 Certificate of Chief Executive Officer
|
|
|
Section 302 Certificate of Chief Financial Officer
|
|
|
Section 906 Certifications of Chief Executive Officer and Chief Financial Officer
|
|
101
|
|
The following financial information from Valmont's Quarterly Report on Form 10-Q for the quarter ended March 31, 2018, formatted in XBRL (eXtensible Business Reporting Language): (i) the Condensed Consolidated Statements of Earnings, (ii) the Condensed Consolidated Statements of Comprehensive Income, (iii) the Condensed Consolidated Balance Sheets, (iv) the Condensed Consolidated Statements of Cash Flows, (v) the Condensed Consolidated Statements of Shareholders' Equity, (vi) Notes to Condensed Consolidated Financial Statements and (vii) document and entity information.
|
|
VALMONT INDUSTRIES, INC.
(Registrant)
|
|
/s/ MARK C. JAKSICH
|
|
Mark C. Jaksich
Executive Vice President and Chief Financial Officer
|
Grant Date
|
date
|
Number of Shares that may be Purchased
|
# shares of Valmont Common Stock
|
Dates when the Option becomes Exercisable
|
One-third (1/3) of the Option will become exercisable on each of the first, second, and third anniversaries of Grant Date:
|
|
date
|
|
date
|
|
date
|
Purchase Price Per Share
|
$ price
|
Last Date on which the Option may be Exercised
|
Date unless cancelled earlier as described below (the “Expiration Date”); see Section 3
|
Effect of Termination of Employment
|
See Section 4
|
Governing Plan
|
2018 Valmont Stock Plan (the “Plan”)
|
Type of Termination
|
Results
|
Voluntary Termination of Employment Prior to Age 62
|
The Option will expire and all unexercised options will be forfeited upon the voluntary termination of your employment prior to age 62.
|
Valmont Terminates Your Employment for Cause
|
The Option will expire and all unexercised options will be forfeited upon the involuntary termination of employment for Cause. For purposes of this agreement, “Cause” shall mean: (i) your indictment, conviction, or plea of guilty or nolo contendere to a misdemeanor involving moral turpitude, or a felony, (ii) your breach of your duties to Valmont which causes material financial loss or disrepute to Valmont, which is not cured within five (5) days following your receipt of written notice from the Chief Executive Officer or his designee, or (iii) your failure to act at all times in the best interests of Valmont or to carry out the duties of your position as assigned by the Chief Executive Officer or his designee, if any such failure is not cured within five (5) days following your receipt of written notice from the Chief Executive Officer or his designee.
|
Involuntarily Termination Without Cause
|
The Option will expire on the date ninety (90) days following the involuntary termination of your employment without Cause. You can exercise during that period any options that were exercisable immediately prior to your termination.
|
Death or Disability
|
The Option will be become immediately exercisable in full, and the Option will expire on the date three (3) years following your death or Disability or, if earlier, on the Expiration Date. For purposes of this agreement, “Disability” means you are eligible to receive income replacement benefits for a period of not less than six (6) months under Valmont’s long-term disability plan.
|
Voluntary Termination on or after age 62 and having five years of employment
|
If you had attained age 62 with at least five years of employment with Valmont on your termination date, and you voluntarily terminate your employment (“retirement”) at least one year after the Grant Date, the Option will expire and all unexercised options will be forfeited on the date (3) years following the date of your retirement or, if earlier, the Expiration Date.
|
Involuntary Termination Following a Change-In-Control
|
If employment is involuntarily terminated (other than for Cause) by Valmont within twelve (12) months following a Change-of-Control (as defined in the Plan) the Option will continue to operate as though you had remained employed for an additional three (3) years from the date of your termination of employment, or if earlier until the Expiration Date. The Option will expire and all unexercised options will be forfeited on the date three (3) years following the date of the termination of your employment or, if earlier, on the Expiration Date.
|
9.1
|
In consideration of the Option and in addition to the restrictive covenants contained in any employment agreement with Valmont, you agree and covenant not to:
|
a.
|
disclose any of Valmont’s Confidential Information except as expressly authorized in writing by Valmont or as may be required by applicable law or a valid court order. “Confidential Information” means any information that relates to the Company’s actual or anticipated business or research and development, customer information, product information, technical data, trade secrets or know-how, and all other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary. Confidential Information does not include any of the foregoing information that is or becomes publicly known through no wrongful act or omission by you or by others who were under confidentiality obligations as to the disclosed information;
|
b.
|
during the twelve (12) months following the termination of your employment for any reason, directly or indirectly, solicit, contact (including but not limited to, email, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with customers or dealers or sales agents of Valmont, its affiliates or subsidiaries, with whom you had contact during your employment, for the purpose of obtaining business from such customers or dealers or sales agents in competition with Valmont; or
|
c.
|
during the twelve (12) months following the termination of your employment for any reason, directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the business(es) of Valmont, its affiliates or subsidiaries if you have been involved with such business(es) or had access to the Confidential Information of such business(es).
|
a.
|
you hereby consent and agree that Valmont shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief; and
|
b.
|
the Option will expire and you will have no right or option to purchase shares of Valmont Common Stock under this agreement.
|
9.3
|
Valmont and you agree that, to the extent permitted under applicable law, any court of competent jurisdiction is expressly authorized to modify any unenforceable provision of this Section 9 in lieu of severing such unenforceable provision from this agreement in its entirety, whether by rewriting the offending provision, adding additional language to the offending provision, or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law. Valmont and you expressly agree that this agreement as so modified by the court shall be binding and enforceable.
|
10.
|
Reimbursement
.
|
a.
|
You have been advised as to how you can obtain a copy of the Plan and you agree that the Option is subject to all of the terms and conditions set forth in the Plan, including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as part of this agreement.
|
b.
|
As a holder of the Option, you will not have any of the rights of a stockholder with respect to the shares covered by the Option until one or more certificates for such shares are delivered to you upon the exercise of the Option.
|
c.
|
The authority to manage and control the operation and administration of this agreement shall be vested in the Human Resource Committee, and the Committee shall have all powers with respect to this agreement as it has with respect to the Plan. Any interpretation of the agreement by the Committee and any decision made by it with respect to the agreement are final and binding.
|
d.
|
Provided you continue to be an employee of Valmont, or any of its affiliates or subsidiaries, the Option will not be affected by any change of your duties or position. Nothing in this agreement shall confer upon you any right to continue in the employment of Valmont or to interfere in any way with the right of Valmont to terminate your employment at any time. The transfer of employment between any combination of Valmont and any of its affiliates or subsidiaries shall not be deemed a termination of employment.
|
e.
|
Valmont is not obligated to issue or deliver any shares of Valmont Common Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or any regulation of any governmental authority or any national securities exchange.
|
f.
|
You may not purchase shares under this Option unless at the date of purchase a Registration Statement under the Securities Act of 1933, as amended, relating to the shares covered by the Option is in effect or Valmont has determined that an exemption from such registration is available.
|
g.
|
You have read and understand this entire agreement and agree to be bound by its terms.
|
Grant Date
|
date
|
Number of Restricted Stock Units
|
xxx
|
Vesting Date / Schedule
|
1/3 on date; 1/3 on date; and 1/3 on date
|
Effect of Termination of Employment
|
See Section 1
|
Governing Plan
|
2018 Valmont Stock Plan (the “Plan”)
|
1.
|
Award.
Valmont is granting to you the Restricted Stock Units designated above subject to the terms and conditions of this Agreement.
|
Event
|
Results
|
a.
Continued Employment to a Vesting Date
|
Vesting of 1/3 of the Units on the first anniversary of the Grant Date; vesting of an additional 1/3 of the Units on the second anniversary of the Grant Date; and vesting of the final 1/3 of the Units on the third anniversary of the Grant Date (each is a “Vesting Date”).
|
b.
Termination Due to Death
|
Immediate Vesting
|
c.
Termination Due to Disability
|
Immediate Vesting - “Disability” means you are eligible to receive income replacement benefits for a period of not less than six (6) months under Valmont’s long-term disability plan.
|
d.
Involuntary Termination Without Cause Due to Job Elimination
|
Immediate Prorated Vesting – If you are involuntarily terminated without Cause due to a job elimination (as determined by written notice to you from the Senior Vice President of Human Resources), and had at least one year of employment with Valmont after the Grant Date, your unvested Restricted Stock Units will be prorated based on the number of months from the prior Vesting Date to your termination date divided by the number of months between the prior Vesting Date and the final Vesting Date.
|
e.
Involuntary Termination Within 12 Months of a Change in Control
|
Immediate Vesting – If you are involuntarily terminated without Cause (as defined below) within 12 months of a Change in Control (as defined in the Plan), your rights to the Restricted Stock Units will immediately vest.
|
f.
Voluntary Termination on or after Attaining Age 62 ‘Retirement’
|
Immediate Prorated Vesting - If you had attained age 62 with at least five years of employment with Valmont on your termination date, and retire at least one year after the Grant Date, your rights to unvested Restricted Stock Units will be prorated based on the number of full months from the prior Vesting Date to your retirement date divided by the number of months between the prior Vesting Date and the final Vesting Date.
|
g.
Any Other Voluntary or Involuntary Termination
|
Forfeiture
|
2.
|
Settlement.
The Restricted Stock Units granted to you under this agreement will be converted to shares of Valmont Common Stock and delivered to you within a reasonable period of time following the Vesting Date (“Settlement”). The Restricted Stock Units that vest in connection with your termination of employment as provided above will be converted to shares of Valmont Common Stock and distributed to you within a reasonable period of time following your termination of employment. The pro rata portion of the Restricted Stock Units that vest in connection with your termination of employment as provided in Section 1(d) or Section 1(f) above will be converted to shares of Valmont Common Stock and distributed to you within a reasonable period of time following the Vesting Date.
|
3.
|
Withholding of Tax.
Generally, when the Restricted Stock Units are vested you will be required, for income tax purposes, to recognize the value of the shares of Valmont Common Stock delivered to you. The value
|
4.
|
Retention of Shares.
If you are subject to Valmont’s stock ownership guidelines and have not met those guidelines at the time of settlement, you shall retain, and not transfer or otherwise dispose of, at least seventy-five (75%) of the net shares delivered to you until you meet the applicable ownership guidelines.
|
5.
|
Certain Rights.
Restricted Stock Units are not entitled to dividends payable on Valmont Common Stock. If any adjustment in Valmont’s capitalization as described in the Plan occurs, appropriate adjustments will be made (as provided in the Plan) to the remaining Restricted Stock Units under this agreement in such a manner as the Human Resources Committee (the “Committee”) determines to be equitable in its sole discretion. You shall be a general, unsecured creditor of Valmont with respect to Valmont’s obligations under this Agreement.
|
6.
|
Voting Rights.
Restricted Stock Units are not entitled to the voting rights associated with Valmont Common Stock.
|
7.
|
Restrictions.
The Restricted Stock Units may not be sold, assigned, pledged, exchanged, hypothecated, or otherwise transferred, encumbered, or disposed of, otherwise than by the laws of descent and distribution upon your death.
|
8.
|
Restrictive Covenants.
|
8.1
|
In consideration of your rights under this agreement and in addition to the restrictive covenants contained in any employment agreement with Valmont, you agree and covenant not to:
|
a.
|
disclose any of Valmont’s Confidential Information except as expressly authorized in writing by Valmont or as may be required by applicable law or a valid court order. “Confidential Information” means any information that relates to the Company’s actual or anticipated business or research and development, customer information, product information, technical data, trade secrets or know-how, and all other information that is marked or otherwise identified as confidential or proprietary, or that would otherwise appear to a reasonable person to be confidential or proprietary. Confidential Information does not include any of the foregoing information that is or becomes publicly known through no wrongful act or omission by you or by others who were under confidentiality obligations as to the disclosed information;
|
b.
|
during the twelve (12) months following termination of your employment for any reason, directly or indirectly, solicit, contact (including but not limited to, email, regular mail, express mail, telephone, fax, and instant message), attempt to contact or meet with customers or dealers or sales agents of Valmont, its affiliates or subsidiaries, with whom you had contact during your employment, for the purpose of obtaining business from such customers or dealers or sales agents in competition with Valmont; or
|
c.
|
during the twelve (12) months following termination of your employment for any reason, directly or indirectly, solicit, hire, recruit, attempt to hire or recruit, or induce the termination of employment of any employee of the business(es) of Valmont, its affiliates or subsidiaries if you have been involved with such business(es) or had access to the Confidential Information of such business(es).
|
a.
|
you hereby consent and agree that Valmont shall be entitled to seek, in addition to other available remedies, a temporary or permanent injunction or other equitable relief against such breach from any court of competent jurisdiction, without the necessity of showing any actual damages or that money damages would not afford an adequate remedy, and without the necessity of posting any bond or other security. The aforementioned equitable relief shall be in addition to, not in lieu of, legal remedies, monetary damages, or other available forms of relief; and
|
b.
|
any unvested portion of the Restricted Stock Unit Award shall be forfeited effective as of the date of such breach, unless sooner terminated by operation of another term or condition of this agreement or the Plan.
|
8.3
|
Valmont and you agree that, to the extent permitted under applicable law, any court of competent jurisdiction is expressly authorized to modify any unenforceable provision of this Section 8 in lieu of severing such unenforceable provision from this agreement in its entirety, whether by rewriting the offending provision, adding additional language to the offending provision, or by making such other modifications as it deems warranted to carry out the intent and agreement of the parties as embodied herein to the maximum extent permitted by law. Valmont and you expressly agree that this agreement as so modified by the court shall be binding and enforceable.
|
9.
|
Reimbursement.
In the event that (i) Valmont is required to restate and submit to the Securities and Exchange Commission a restatement of its audited financial statements due to material noncompliance with any financial reporting requirement and (ii) you engaged in fraud or intentional misconduct that caused or contributed to the need for the restatement, as determined by the Board of Directors, then the Company, in an appropriate case as determined by the Board of Directors, shall be entitled to (i) immediately terminate and forfeit any Restricted Stock Units and/or (ii) require you to return to the Company the value of any previously settled Restricted Stock Units (valued as of the date of Settlement with respect thereto), in whole or part; provided further, however, that the Board of Directors may apply this right of reimbursement in all cases to the Chief Executive Officer, Chief Financial Officer, and Group President (if the conduct occurred in the Group) if an employee of the Company engaged in fraud or intentional misconduct as described above. The rights of reimbursement of Valmont shall be in addition to any other right of reimbursement provided by law.
|
10.
|
Internal Revenue Code Section 409A.
Some or all of the Restricted Stock Units may be subject to IRC Section 409A. If a Restricted Stock Unit is subject to Internal Revenue Code Section 409A and if you are a “specified employee” (as defined under IRC Section 409A) on the date your employment is terminated, the Settlement of any such Restricted Stock Unit that is due upon your termination of employment will be deferred until the seventh calendar month following the calendar month of your “separation from service” (as defined under IRC Section 409A)
|
11.
|
General.
|
a.
|
You have been advised as to how you can obtain a copy of the Plan and you agree that the Restricted Stock Units shall be subject to all of the terms and conditions set forth in the Plan, including future amendments thereto, if any, pursuant to the terms thereof, which Plan is incorporated herein by reference as part of this agreement.
|
b.
|
The authority to manage and control the operation and administration of this agreement shall be vested in the Committee, and the Committee shall have all powers with respect to this agreement as it has with respect to the Plan. Any interpretation of the agreement by the Committee and any decision made by it with respect to the agreement is final and binding.
|
c.
|
Provided you continue to be an employee of Valmont, or any of its affiliates or subsidiaries, your rights to the Restricted Stock Units will not be affected by any change of your duties or position. Nothing in this agreement shall confer upon you any right to continue in the employment of Valmont or to interfere in any way with the right of Valmont to terminate your employment at any time. The transfer of employment between any combination of Valmont and any of its affiliates or subsidiaries shall not be deemed a termination of employment.
|
d.
|
Valmont is not obligated to issue or deliver any shares of Valmont Common Stock if the issuance or delivery thereof shall constitute a violation of any provision of any law or any regulation of any governmental authority or any national securities exchange.
|
e.
|
You have read and understand this entire agreement and agree to be bound by its terms.
|
f.
|
“Cause” shall mean: (i) your indictment, conviction, or plea of guilty or nolo contendere to a misdemeanor involving moral turpitude, or a felony, (ii) your breach of your duties to Valmont which causes material financial loss or disrepute to Valmont, which is not cured within five (5) days following your receipt of written notice from the Chief Executive Officer or his designee, or (iii) your failure to act at all times in the best interests of Valmont or to carry out the duties of your position as assigned by the Chief Executive Officer or his designee, if any such failure is not cured within five (5) days following your receipt of written notice from the Chief Executive Officer or his designee.
|
13.
|
Governing Law.
This agreement shall be governed by, and construed in accordance with, the laws of the state of Nebraska.
|
Director
|
VALMONT INDUSTRIES, INC.
By:
President and Chief Executive Officer
|
|
|
|
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended
March 31, 2018
of Valmont Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ STEPHEN G. KANIEWSKI
|
|
Stephen G. Kaniewski
President and Chief Executive Officer
|
1.
|
I have reviewed this quarterly report on Form 10-Q for the quarter ended
March 31, 2018
of Valmont Industries, Inc.;
|
2.
|
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
|
3.
|
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
|
4.
|
The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
c)
|
Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
|
d)
|
Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth quarter in the case of an annual report)that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and
|
5.
|
The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):
|
a)
|
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and
|
b)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.
|
|
/s/ MARK C. JAKSICH
|
|
Mark C. Jaksich
Executive Vice President and Chief Financial Officer
|
1.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
2.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/
Stephen G. Kaniewski
|
|
Stephen G. Kaniewski
President and Chief Executive Officer
|
3.
|
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
4.
|
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.
|
|
/s/
MARK C. JAKSICH
|
|
Mark C. Jaksich
Executive Vice President and Chief Financial Officer
|