Allied Motion Technologies Inc. (NASDAQ: AMOT) today
announced net income increased 4% to $4,278,000 or $0.46 per
diluted share for the quarter ended September 30, 2015 compared to
$4,115,000 or $0.45 per diluted share for the quarter ended
September 30, 2014. Revenues for the quarter declined 6% to
$61,534,000 compared to $65,280,000 last year. The strength of the
U.S. dollar against foreign currencies continued to have an impact
on the reported results of the third quarter as well as for the
year.
“The strength of the U.S. dollar continues to require a more
detailed explanation when comparing our reported results on a true
comparative basis to reflect the real change year over year.
Measured in constant currency, revenues for the third quarter of
2015 would have been consistent with the prior year, and fully
diluted earnings per share would have increased 11% compared to the
same quarter in 2014. Year to date, revenues would have increased
4% and fully diluted earnings per share would have increased 26% as
compared to the same period in 2014, commented Dick Warzala,
Chairman and CEO of Allied Motion. “For the quarter, we experienced
growth in our Electronics and Medical markets. Our Aerospace and
Defense, Industrial, Distribution and Vehicle markets were down.
While the overall market has not met our improvement expectations
during the year, we continue to focus on improving internal
operations efficiencies through the utilization of our Allied
Systematic Tools. With strong cash flows and a continually
improving debt position, we believe we have the required resources
to enhance our growth opportunities through strategic acquisitions
in the future. The long term success of our Company will be further
enhanced by executing our strategy and leveraging our full
capabilities to design innovative “Motion Solutions That Change the
Game” and meet the current and emerging needs of our customers in
our served market segments.”
For the quarter, the overall decrease in revenue was due to a 6%
unfavorable currency impact, with volumes remaining steady compared
to the third quarter of 2014. The strengthening of the U.S. dollar
during the third quarter against foreign currencies also continued
to impact reported bookings when compared to the prior year.
Bookings for the quarter ended September 30, 2015 were $55.1
million compared to $66.7 million for the third quarter of 2014 or
a decrease of 17%. The decrease in bookings was 12% volume related
combined with a 5% currency impact. Backlog as of September 30,
2015 was $67.8 million compared to $80.9 million as of September
30, 2014, a decrease of 16% over the prior year. Of the 16%
decrease in backlog, 6% was volume related and 10% was currency
related. Bank debt net of cash at September 30, 2015 decreased by
$8.9 million to $52.8 million compared to December 31, 2014, and
decreased $9.1 million compared to June 30, 2015.
For the nine months ended September 30, 2015, the Company
achieved net income of $10,379,000 or $1.12 per diluted share
compared to net income of $8,956,000 or $.98 per diluted share for
year to date 2014. Revenues decreased 3% to $181,593,000 compared
to $187,784,000 last year. This overall decrease in revenue was due
to a 7% unfavorable currency impact, partially offset by a 4%
volume increase. Bookings for year to date 2015 were $177.8 million
compared to $194.6 million for year to date 2014, or a decrease of
9%. The decrease in bookings of 9% was due to a 2% volume decrease
and a 7% currency impact.
Headquartered in Amherst, NY, Allied Motion designs,
manufactures and sells motion control products into applications
that serve many industry sectors. Allied Motion is a leading
supplier of precision and specialty motion control components and
systems to a broad spectrum of customers throughout the world.
The statements in this press release and in the Company’s
November 12, 2015 conference call that relate to future plans,
events or performance are “forward-looking statements” within the
meaning of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements include, without limitation, any
statement that may predict, forecast, indicate, or imply future
results, performance, or achievements, and may contain the word
“believe,” “anticipate,” “expect,” “project,” “intend,” “will
continue,” “will likely result,” “should” or words or phrases of
similar meaning. Forward-looking statements involve known and
unknown risks and uncertainties that may cause actual results of
the Company to differ materially from the forward-looking
statements. The risks and uncertainties include those associated
with the present economic circumstances in the United States and
throughout Europe and Asia, general business and economic
conditions in the Company’s motion markets, introduction of new
technologies, products and competitors, the ability to protect the
Company’s intellectual property, the ability of the Company to
sustain, manage or forecast its growth and product acceptance,
success of new corporation strategies and implementation of defined
critical issues designed for growth and improvement in profits, the
continued success of the Company’s customers to allow the Company
to realize revenues from its order backlog and to support the
Company’s expected delivery schedules, the continued viability of
the Company’s customers and their ability to adapt to changing
technology and product demand, the loss of significant customers or
enforceability of the Company’s contracts in connection with a
merger, acquisition, disposition, bankruptcy, or otherwise, the
ability of the Company to meet the technical specifications of its
customers, the continued availability of parts and components,
increased competition and changes in competitor responses to the
Company’s products and services, changes in government regulations,
availability of financing, the ability of the Company’s lenders and
financial institutions to provide additional funds if needed for
operations or for making future acquisitions or the ability of the
Company to obtain alternate financing if present sources of
financing are terminated, the ability to attract and retain
qualified personnel who can design new applications and products
for the motion industry, the ability of the Company to identify and
consummate favorable acquisitions to support external growth and
new technology, the ability of the Company to successfully
integrate an acquired business into the Company’s business model
without substantial costs, delays, or problems, the ability of the
Company to establish low cost region manufacturing and component
sourcing capabilities, and the ability of the Company to control
costs, including relocation costs, for the purpose of improving
profitability. The Company’s ability to compete in this market
depends upon its capacity to anticipate the need for new products,
and to continue to design and market those products to meet
customers’ needs in a competitive world. Actual results, events and
performance may differ materially. Readers are cautioned not to
place undue reliance on these forward-looking statements as a
prediction of actual results. The Company has no obligation or
intent to release publicly any revisions to any forward looking
statements, whether as a result of new information, future events,
or otherwise.
ALLIED MOTION TECHNOLOGIES INC.
FINANCIAL SUMMARY (IN THOUSANDS, EXCEPT
PER SHARE DATA) (UNAUDITED)
For the three months ended For the
nine months ended September 30, September 30,
HIGHLIGHTS OF OPERATING RESULTS 2015
2014 2015 2014 Revenues $ 61,534
$ 65,280 $ 181,593 $ 187,784 Cost of goods sold
42,595 45,668 127,167
132,512 Gross margin 18,939 19,612 54,426 55,272
Operating costs and expenses: Selling expenses 1,963 2,277 6,234
6,619 General and administrative expenses 5,939 6,172 17,314 19,097
Engineering and development expenses 3,345 3,204 10,498 10,193
Amortization of intangible assets 661 697
1,983 2,045 Total operating
costs and expenses 11,908 12,350 36,029 37,954 Other expense
(income): Interest expense 1,504 1,607 4,530 4,895 Other income,
net (115 ) (368 ) (400 ) (668 ) Income
before income taxes 5,642 6,023 14,267 13,091 Provision for income
taxes (1,364 ) (1,908 ) (3,888 ) (4,135
) Net income $ 4,278 $ 4,115 $ 10,379 $ 8,956
PER SHARE AMOUNTS: Diluted earnings per share
$ 0.46 $ 0.45 $ 1.12 $ 0.98 Diluted
weighted average common shares 9,266 9,157
9,239 9,143
September 30, December 31, CONDENSED
BALANCE SHEETS 2015 2014
Assets Current Assets: Cash and cash equivalents $ 17,896 $
13,113 Trade receivables, net 31,315 27,745 Inventories, net 24,513
25,371 Other current assets 5,151 4,555 Total Current
Assets 78,875 70,784 Property, plant and equipment, net 35,863
37,041 Deferred income taxes 1,608 2,723 Intangible assets, net
30,683 32,791 Goodwill 17,905 18,303 Other long-term assets, net
4,106 3,998 Total Assets $ 169,040 $ 165,640
Liabilities and Stockholders’ Equity Current Liabilities:
Debt obligations $ 9,211 $ 7,723 Accounts payable 15,324 15,510
Accrued liabilities 12,287 12,723 Total Current
Liabilities 36,822 35,956 Long-term debt 61,500 67,125 Deferred
income taxes 1,101 1,299 Other long-term liabilities 5,689
5,309 Total Liabilities 105,112 109,689 Stockholders’ Equity
63,928 55,951 Total Liabilities and Stockholders’
Equity $ 169,040 $ 165,640
For the
nine months ended September 30, CONDENSED STATEMENTS
OF CASH FLOWS 2015 2014
Cash flows from operating activities: Net income $
10,379 $ 8,956 Depreciation and amortization 5,552 5,382 Other
3,373 4,301 Changes in working capital (5,577 )
(10,787 ) Net cash provided by operating activities 13,727 7,852
Cash flows from investing activities: Purchase of
property and equipment (3,693 ) (3,153 ) Proceeds from working
capital adjustment on acquisition - 1,399
Net cash used in investing activities (3,693 ) (1,754 )
Cash flows from financing activities: Borrowings on
lines-of-credit, net 422 (2,591 ) Principal payments of long-term
debt (4,500 ) (3,750 ) Dividends paid to stockholders (690 ) (629 )
Stock transactions under employee benefit stock plans 223
334 Net cash used in financing activities
(4,545 ) (6,636 ) Effect of foreign exchange rate changes on cash
(706 ) (566 ) Net increase (decrease) in cash and
cash equivalents 4,783 (1,104 ) Cash and cash equivalents at
beginning of period 13,113 8,371 Cash
and cash equivalents at end of period $ 17,896 $ 7,267
Reconciliation of Non-GAAP Financial Measures
The Company believes EBITDA is often a useful measure of a
Company’s operating performance and is a significant basis used by
the Company’s management to measure the operating performance of
the Company’s business because EBITDA excludes charges for
depreciation and amortization, and interest expense resulting from
our debt financings, as well as our provision for income tax
expense. EBITDA is frequently used as one of the bases for
comparing businesses in the Company’s industry. EBITDA does not
represent and should not be considered as an alternative to net
income, operating income, net cash provided by operating activities
or any other measure for determining operating performance or
liquidity that is calculated in accordance with generally accepted
accounting principles.
The Company’s calculation of EBITDA for the three and nine
months ended September 30, 2015 and 2014 is as follows (in
thousands):
For the three months ended For the
nine months ended September 30, September 30,
2015 2014
2015 2014 Net income $ 4,278 $ 4,115 $
10,379 $ 8,956 Interest expense 1,504 1,607 4,530 4,895
Provision for income taxes 1,364 1,908 3,888 4,135 Depreciation and
amortization 1,887 1,901 5,552 5,382
EBITDA $ 9,033 $ 9,531 $ 24,349 $ 23,368
Constant Currency Presentation
The Company believes constant currency information provides
valuable supplemental information that facilitates period-to-period
comparisons of the company's business performance. The constant
currency presentation, which is a non-GAAP measure, excludes the
impact of fluctuations in foreign currency exchange rates for
entities reporting in currencies other than US dollars. Constant
currency results are calculated by translating current period
results in local currency using the prior year's currency
conversion rate.
For the three months ended For the
nine months ended September 30, September 30,
2015 2014 2015 2014 $
in thousands
% increase(decrease)compared to prioryear
amounts
$ in thousands $ in thousands
% increase(decrease)compared to prioryear
amounts
$ in thousands Revenues 2015 revenues, as reported $
61,534 -6 % $ 65,280 $ 181,593 -3 % $ 187,784 Currency impact
3,866 6 % - 13,250 7 % - 2015 revenues,
at 2014 exchange rates $ 65,400 0 % $ 65,280 $ 194,843 4 % $
187,784
Net income 2015 net income, as reported $
4,278 4 % $ 4,115 $ 10,379 16 % $ 8,956 Currency impact 345
8 % - 1,017 11 % - 2015 net income, at 2014
exchange rates $ 4,623 12 % $ 4,115 $ 11,396 27 % $ 8,956
Earnings per share 2015 earnings per share, as reported $
0.46 2 % $ 0.45 $ 1.12 14 % $ 0.98 Currency impact 0.04 9 %
- 0.11 12 % - 2015 earnings per share, at 2014
exchange rates $ 0.50 11 % $ 0.45 $ 1.23 26 % $ 0.98
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Allied Motion Technologies Inc.Sue Chiarmonte,
1-716-242-8634
Allied Motion Technologies (NASDAQ:AMOT)
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