Allied Motion Technologies Inc. (NASDAQ:AMOT) today
announced net income increased 394% to $4,115,000 or $0.45 per
diluted share for the quarter ended September 30, 2014 compared to
$833,000 or $0.09 per diluted share for the quarter ended September
30, 2013. Revenues for the quarter increased 162% to $65,280,000
compared to $24,876,000 last year with sales to U.S. customers up
233% and foreign sales up 81%. Bookings for the quarter ended
September 30, 2014 were $66.7 million compared to $25.0 million for
the third quarter of 2013 or an increase of 167%. Backlog as of
September 30, 2014 was $80.9 million compared to $27.5 million as
of September 30, 2013, a 194% increase over the prior year. Debt
net of cash at September 30, 2014 decreased to $72.2 million
compared to $77.5 million at December 31, 2013.
“We are very pleased with the record results for the third
quarter 2014 as they once again validate our previous comments that
we expected our revenues for 2014 to more than double relative to
Allied’s 2013 pre-acquisition revenues and for the Globe
acquisition to be accretive to earnings,” commented Dick Warzala,
Chairman and CEO of Allied Motion. “When comparing the actual
results of Allied and Globe for the nine months ended September 30,
2014 to the pro forma results of Allied and Globe for the same
period of 2013, our revenues increased to $187.8M in 2014 from a
pro forma of $164.6M in 2013 and our earnings increased to
$0.98/share in 2014 from a pro forma of $0.67/share in 2013. Also,
on a year to date basis, we experienced growth in our served
markets of Aerospace and Defense, Medical, and Vehicle, while our
Industrial and Electronics markets were flat. With the acquisition
of Globe Motors in late 2013, the current year has truly been
transformative for Allied Motion and in late September, we updated
our long term strategy and set new goals and objectives to
continuously grow and improve our profitability in the future. In
addition, we defined the critical issues, or action items, that we
will be focusing on for the next 3+ years in support of our new
growth and profitability objectives. As we move forward into 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.”
During the nine months ended September 30, 2014, the Company
achieved net income of $8,956,000 or $.98 per diluted share
compared to net income of $2,612,000 or $.30 per diluted share for
the same nine months last year. Revenues increased 149% to
$187,784,000 compared to $75,371,000 last year with sales to U.S.
customers up 209% and foreign sales up 82%. The total 149% increase
in sales was due to sales volume, the impact of foreign currencies
was minimal.
Bookings for the first nine months this year were $194.6 million
compared to $69.5 million for the same period last year or an
increase of 180%.
The pro forma earnings per share information included in this
press release includes adjustments for: depreciation and
amortization resulting from the valuation of amortizable tangible
and intangible assets; interest on borrowings made by the Company;
amortization of deferred finance costs incurred to issue the
borrowings; removal of acquisition related transaction costs;
removal of certain costs for which Allied Motion would be
indemnified by the seller and stock compensation expense related to
shares issued to certain executives of Allied Motion as a result of
the acquisition. The pro forma adjustments do not reflect
adjustments for anticipated operating efficiencies that the Company
expects to achieve as a result of this acquisition.
The pro forma financial information included in this press
release is for informational purposes only and does not purport to
present what the Company’s results would actually have been had
these transactions actually occurred on the dates presented or to
project the combined company’s results of operations or financial
position for any future period.
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 August
14, 2014 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, 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
2014
2013 2014
2013 Revenues $ 65,280 $ 24,876 $ 187,784 $ 75,371
Cost of goods sold 45,668 17,638
132,512 53,075 Gross margin 19,612 7,238
55,272 22,296 Selling expenses 2,277 1,132 6,619 3,640 General and
administrative expenses 6,172 3,112 19,097 9,567 Engineering and
development expenses 3,204 1,718 10,193 5,123 Amortization of
intangible assets 697 83 2,045
252 Total Operating Expenses 12,350 6,045
37,954 18,582 Other expense (income) Interest expense 1,607 13
4,895 30 Other (income) expense, net (368 ) 38
(668 ) (58 ) Income before income taxes 6,023 1,142
13,091 3,742 Provision for income taxes (1,908 ) (309
) (4,135 ) (1,130 ) Net income $ 4,115 $ 833
$ 8,956 $ 2,612
PER SHARE
AMOUNTS: Diluted income per share $ 0.45 $ 0.09 $
0.98 $ 0.30 Diluted weighted average common shares
9,157 8,807 9,143
8,778
September 30, December 31,
CONDENSED BALANCE SHEETS
2014 2013 Assets Current
Assets: Cash and cash equivalents $ 7,267 $ 8,371 Restricted cash
1,800 1,800 Trade receivables, net 36,302 27,123 Inventories, net
26,073 24,430 Other current assets 3,596 5,563 Total
Current Assets 75,038 67,287 Property, plant and equipment, net
36,953 40,111 Deferred income taxes 4,092 3,246 Intangible assets,
net 33,532 35,222 Goodwill 19,611 20,233 Other long-term assets,
net 4,089 4,878 Total Assets $ 173,315 $ 170,977
Liabilities and Stockholders’ Equity Current
Liabilities: Debt obligations $ 12,294 $ 14,145 Accounts payable
18,820 15,478 Accrued Liabilities 13,635 12,627 Total
Current Liabilities 44,749 42,250 Long-term debt 69,000 73,500
Deferred Income Taxes 1,331 2,327 Other long-term liabilities
4,268 4,897 Total Liabilities 119,348 122,974
Stockholders’ Equity 53,967 48,003 Total Liabilities
and Stockholders’ Equity $ 173,315 $ 170,977
For the nine
months ended September 30, CONDENSED STATEMENTS OF
CASH FLOWS 2014
2013 Cash flows from operating activities: Net
income $ 8,956 $ 2,612 Depreciation and amortization
5,382 1,311 Other 4,301 227 Changes in working capital
(10,686 ) (706 ) Net cash provided by
operating activities 7,953 3,444 Cash flows from investing
activities: Proceeds from working capital adjustment and other
acquisition adjustments 1,399 - Purchase of property and equipment
(3,153 ) (2,055 ) Net cash used in
investing activities (1,754 ) (2,055 ) Cash flows from
financing activities: Borrowings (repayments) on lines-of-credit,
net (2,591 ) 724 Principal payments of long-term debt (3,750 ) -
Dividends paid to stockholders (730 ) (646 ) Stock transactions
under employee benefit stock plans 334
414 Net cash (used in) provided by financing
activities (6,737 ) 492 Effect of foreign exchange rate
changes on cash (566 ) 45 Net
(decrease) increase in cash and cash equivalents (1,104 ) 1,926
Cash and cash equivalents at beginning of period
8,371 9,728 Cash and cash equivalents
at end of period $ 7,267 $ 11,654
Allied Motion Technologies Inc.Robert Maida or Sue
Chiarmonte, 1-716-242-8634
Allied Motion Technologies (NASDAQ:AMOT)
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