You are given a text that consists of multiple sentences. Your task is to perform abstractive summarization on this text. Use your understanding of the content to express the main ideas and crucial details in a shorter, coherent, and natural sounding text. 
Text: Market demand, COVID-19 impacts, including operational logistics and supply chain disruptions, competition, weather, seasonality, currency-related issues, geopolitical issues and other risk factors listed from time-to-time in the company's SEC reports.
Dan will begin our call with a review of our financial results for the second quarter 2021.
And I will then provide more comments on the results.
So Dan, go ahead, please.
The key takeaways from our second quarter 2021 results are: second quarter sales and earnings are up significantly over the COVID impacted prior year second quarter.
Total company net sales of $348 million were up 29%.
Industrial division net sales of $231 million were up 27%.
Agricultural division net sales of $116 million were up 35%.
Net income of $26 million or $2.19 per diluted share was up 100%.
The adjusted net income of $23.4 million or $1.97 per diluted share was up 73% and EBITDA of $44.9 million was up 30% over the prior year's second quarter adjusted results.
Also, our trailing 12-month adjusted EBITDA was $155.3 million, up 7% from full year 2020.
Total debt outstanding was reduced by $38.7 million during the second quarter, and was down 28% from the prior year second quarter.
And our backlog increased 10% during the current second quarter to $503.6 million, which was up 132% over the prior year quarter.
Second quarter 2021 net sales of $348 million were 29% higher than the prior year second quarter.
During the quarter, our top line benefited from a continued rise in order rates and backlog as well as the effect of recent pricing actions, but inbound supply chain and labor capacity issues are still constraining our growth across all lines of business.
Industrial division's second quarter 2021 net sales of $231 million represented a 27% increase from the prior year second quarter.
We saw strong customer demand and backlog growth in all of this division's product lines.
Agricultural division second quarter 2021 sales were $116 million, up 35% from the prior year second quarter.
During the quarter, strong agricultural market conditions, low dealer inventories and pricing actions continue to drive organic sales growth in this division.
Gross margin for the second quarter of 2021 was $88.1 million or 25.4% of net sales compared to $67.8 million or 25.2% of net sales in the prior year second quarter.
Excluding $0.7 million of Morbark's inventory step-up expenses, the prior year second quarter gross margin was $68.5 million or 25.5% of net sales.
In the second quarter, the favorable leveraging effect from significant sales volume improvement over the COVID-impacted prior year quarter as well as aggressive pricing actions helped us maintain percentage gross margins despite a dramatic rise in material costs, production inefficiencies resulting from supply chain and labor capacity constraints and a less favorable mix of service part sales.
Operating income for the second quarter of 2021 was $33.6 million or 9.7% of net sales, which is up 48% over the prior year quarter and up 45% when prior year results are adjusted to exclude the Morbark inventory step-up expense.
Higher sales volume and the gross margin effects already mentioned, more than offset a more normal level of operating expenses as compared to the reduced spending levels of the pandemic-affected prior year period.
While we're pleased to see this improvement, we would normally expect a double-digit operating margin percentage in the second quarter.
Our recent pricing actions have been aggressive, but the effective impact of these actions has been lagging a continued steep rise in cost.
This is likely to continue until the rate of cost increases moderate.
Net income for the second quarter 2021 of $26 million or $2.19 per diluted share was double the prior year second quarter results.
Excluding a $2.6 million after-tax gain on a real estate sale from the current year quarter and the Morbark inventory step-up expense from the prior year quarter, second quarter adjusted net income of $23.4 million was up 73% over the adjusted prior year result.
This increase in adjusted net income was primarily due to the 48% improvement in operating income, but it was also helped by lower interest expense and a favorable effective income tax rate.
Second quarter 2021 EBITDA was $44.9 million, up 30% over the prior year second quarter adjusted EBITDA.
Trailing 12-month EBITDA of $155.3 million is up $10.1 million or 7% above adjusted 2020 EBITDA.
Second quarter 2021 EBITDA was 12.9% of net sales, which was flat to the prior year second quarter adjusted results.
During the second quarter 2021, we saw an $18 million net provision of cash from operating activities, despite steep volume and inflation-driven increases in both accounts receivable and inventories.
This, combined with the repatriation of cash from foreign subsidiaries, resulted in a $38.7 million reduction in outstanding debt during the second quarter.
Improved turnover of both receivables and inventory accounted for this better-than-expected performance.
We ended the second quarter of 2021 with an all-time high order backlog of $503.6 million, which is an increase of 132% over the prior year second quarter and 10% higher than the end of the current year first quarter.
During the quarter, we saw continued strong customer demand across the entire range of our industrial and agricultural products.
To recap our second quarter 2021 results.
Second quarter sales and earnings were up significantly over the COVID-impacted prior year second quarter.
Total company net sales up 29%.
Industrial division net sales, up 27%.
Agricultural division net sales, up 35%.
Net income, up 100% Adjusted net income, up 73%, and EBITDA, up 30% over the prior year second quarter adjusted results.
Trailing 12-month adjusted EBITDA was up 7% from full year 2020.
Total outstanding debt was reduced by $38.7 million during the second quarter, and our backlog increased 10% during the second quarter to $503.6 million.
It's an honor to succeed Ron Robinson, who's had an exemplary 22-year period as our CEO.
This is certainly an interesting time to step in as CEO with the many positive and challenging trends that are influencing business at the moment.
Over the past few months and certainly throughout the second quarter, coronavirus vaccination rates steadily improved across many countries, economies reopened and people became more confident about returning to more normal daily routines.
While recovery from the pandemic is not yet evident in all of our markets, North America and Europe have rebounded strongly, and we experienced a further resurgence of activity in our markets in the second quarter.
Customer ordering activity remained at a healthy level, and our backlog increased to another new record at the end of the quarter.
Unfortunately, many raw material suppliers and industrial component manufacturers have not been able to add capacity fast enough to meet the higher demand.
Certain critical components such as computer logic chips remain in severe shortage, and logistics networks are strained.
Manufacturers such as Alamo Group rely on a stable supply chain and efficient logistics network to allow us to meet our customers' needs in a timely manner.
A shortage of skilled workers has further limited the ability of manufacturers to add capacity, most notably in North America.
Finally, the combination of shortages and high demand has led to cost inflation in the raw materials and components that are needed to support our production requirements.
For example, steel prices continue to rise sharply and were up by double digits again in the period.
Like most manufacturers, Alamo Group is not immune to these issues, and our teams have had to work flexibly and creatively to deliver another solid performance for the quarter.
Continuing the trend of the last several quarters, our agricultural division produced strong second quarter results.
The ag market has consistently held up better during the pandemic, largely due to the combined effects of several positive trends.
First, after several years of soft conditions, dealer inventories were low when demand began to accelerate, and they remain low now as demand continues to outpace deliveries from OEMs to dealers.
Also, crop prices have been steadily rising since August of 2020, giving professional farmers the confidence to invest in maintenance or replacement of their equipment.
Similarly, livestock prices have been rising given the same increased confidence to ranchers.
Finally, the pandemic has led to more people to seeking rural lifestyles, increasing investments in land and the essential equipment to maintain it.
As a result of these combined trends in the market, in the second quarter, our agricultural division enjoyed steady growth in orders and sales, not only in North America and Europe, but also in markets such as Brazil and Australia.
The industrial division also reported solid improvements in both sales and earnings in the second quarter.
The impact of the pandemic on governmental budget has not been as severe as previously expected, and activity in this market continued to improve sequentially during the period.
Municipalities in the United States benefited from the very strong real estate market that has increased property taxes that are a major source of their revenue.
Also, stimulus actions taken by national governments in North America and Europe helped agencies at the state and local level offset lower revenue from income taxes and fees as employment fell as a result of pandemic.
During the second quarter, the industrial division sales to governmental agencies continued to accelerate but they've not quite fully recovered to the levels achieved before the onset of the pandemic.
Nongovernmental markets for the industrial divisions products also improved in sectors such as forestry, land clearing, petrochemicals, utilities and steel during the second quarter as most world economies took steps to reopen.
This was evident in improved sales of the division's large wood grinders, vacuum trucks and excavators.
Also, by the end of the quarter, utilization of our vacuum truck rental fleet was very close to pre-pandemic levels.
The industrial division was impacted by sharply higher steel costs, shortages of important hydraulic components, logistics delays and skilled worker shortages.
While this division also took significant price actions to protect margins, the longer delivery cycles associated with the division's products means that it will take somewhat longer for the higher prices to be fully evident in its results.
Considering the many operational challenges we faced in the second quarter, I'm pleased with the results we've achieved.
I'm also proud that our teams quickly reacted to these challenges to mitigate the impact on our results to the fullest extent possible.
I'm also pleased that we further reduced our debt this quarter and continued to strengthen the company's balance sheet.
This positions the company well to take advantage of acquisition opportunities that may arise, and what's proving to be an active M&A season.
With Alamo Group's record order backlog of nearly $504 million, the company's outlook continues to look promising although it doesn't now appear that the cost pressures, component shortages and tight labor market are likely to meaningfully improve during the remainder of 2021.
One issue that remains of concern is the spread of the de-strain of COVID that has emerged over the past few weeks.
Although evidence suggests that vaccinations reduce both the frequency and seriousness of COVID infections, another significant wave of coronavirus illness could adversely affect our performance.
On balance, though, I remain confident that our teams will continue to react appropriately as conditions in our operating environment involved, and that Alamo Group will continue to deliver solid results this year.

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q2 adjusted earnings per share $1.97.
q2 earnings per share $2.19.

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