ALAMO GROUP INC - 10-Q Quarterly Report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[ X ] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

For the quarterly period ended March 31, 2003

[ ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE

ACT OF 1934

FOR THE
TRANSITION PERIOD FROM ____ TO ____

COMMISSION FILE NUMBER 0-21220


ALAMO GROUP INC.
(EXACT NAME OF REGISTRANT AS SPECIFIED IN ITS CHARTER)

	DELAWARE (State or other jurisdiction of incorporation or organization)	74-1621248 (I.R.S. Employer Identification Number)

1502 East Walnut, Seguin, Texas 78155

(Address of principal executive offices)

830-379-1480

(Registrant's telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by section 13 or 15(d) of Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days.

Yes X No ___

At May 1, 2003, 9,717,909 shares of common stock, $.10 par value, of the Registrant were outstanding.


(in thousands, except share amounts)		March 31, 2003 (Unaudited)		December 31, 2002 (Audited)

ASSETS
Current assets:
Cash and cash equivalents	$	1,838	$	5,583
Accounts receivable		80,015		59,720
Inventories		66,469		63,512
Deferred income taxes		4,406		4,282
Prepaid expenses		2,287		1,593
Total current assets		155,015		134,690

Property, plant and equipment		75,810		75,160
Less: Accumulated depreciation		(44,775)		(43,431)
		31,035		31,729

Goodwill		20,167		19,873
Assets held for sale		1,390		1,430
Other assets		3,368		3,500

Total assets	$	210,975	$	191,222

LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Trade accounts payable		20,817		15,216
Income taxes payable		(661)		79
Accrued liabilities		11,815		12,680
Current maturities of long-term debt		44,545		2,583
Total current liabilities		76,516		30,558

Long-term debt, net of current maturities		716		27,833
Deferred income taxes		2,491		2,353


Stockholders' equity:
Common stock, $.10 par value, 20,000,000 shares authorized; 9,760,509 & 9,759,909 issued and outstanding at March 31, 2003and December 31, 2002		976		976
Additional paid-in capital		51,354		51,345
Treasury stock, at cost; 42,600 shares at March 31, 2003 & December 31, 2002		(426)		(426)
Retained earnings		78,680		78,544
Accumulated other comprehensive income		668		39
Total stockholders' equity		131,252		130,478

Total liabilities and stockholders' equity	$	210,975	$	191,222

	Three Months Ended
		March 31,
(in thousands, except per share amounts)		2003		2002
Net sales:
North American
Agricultural	$	26,438	$	29,116
Industrial		25,781		25,504
European		15,152		10,157
Total net sales		67,371		64,777

Cost of sales		54,983		50,416
Gross profit		12,388		14,361

Selling, general and administrative expense		11,006		9,959
Income from operations		1,382		4,402

Interest expense		(471)		(688)
Interest income		102		125
Other income, net		95		9
Income before income taxes		1,108		3,848
Provision for income taxes		443		1,339
Net Income	$	665	$	2,509

Net income per common share:
Basic	$	.07	$	0.26
Diluted	$	.07	$	0.26
Average common shares:
Basic		9,717		9,710
Diluted		9,764		9,793

Dividends declared	$	.06	$	0.06

		Three Months Ended
	March 31,
(in thousands)			2003		2002
Operating Activities
Net income	$		665	$	2,509
Adjustment to reconcile net income to net cash used by operating activities:
Provision for doubtful accounts			164		117
Depreciation			1,400		1,337
Amortization			48		38
Provision for deferred income tax benefit			2		(39)
Gain on sale of property, plant & equipment			(8)		(7)
Changes in operating assets and liabilities:
Accounts receivable			(20,227)		(18,492)
Inventories			(2,503)		596
Prepaid expenses and other assets			(529)		(123)
Trade accounts payable and accrued liabilities			2,566		3,911
Income taxes payable			1,278		(145)
Net cash used by operating activities			(17,144)		(10,298)

Investing Activities
Acquisitions, net of cash acquired			-




PART I.	FINANCIAL INFORMATION	PAGE
Item 1.	Interim Condensed Consolidated Financial Statements (Unaudited)
	Interim Condensed Consolidated Balance Sheets March 31, 2003 and December 31, 2002 (Audited)	3
	Interim Condensed Consolidated Statements of Income Three months ended March 31, 2003 and March 31, 2002	4
	Interim Condensed Consolidated Statements of Cash Flows Three months ended March 31, 2003 and March 31, 2002	5
	Notes to Interim Condensed Consolidated Financial Statements	6

Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations	14

Item 3	Quantitative and Qualitative Disclosures About Market Risks	17

Item 1.	None
Item 2.	None
Item 3.	None
Item 4.	None
Item 5.	None
Item 6	Exhibits and Reports on Form 8K