Achieves Improvement in Gross Margin YOY Despite
Sales Decline. Maintains Guidance for Full-Year 2016.
Altra Industrial Motion Corp. (Nasdaq:AIMC), a global
manufacturer and marketer of electromechanical power transmission
and motion control products, today announced unaudited financial
results for the second quarter ended June 30, 2016.
Financial Highlights
- Second-quarter 2016 net sales were $182.7 million,
compared with $196.6 million in the second quarter of
2015, a decrease of 7.1%. The reduction in net sales was driven by
an unfavorable impact from foreign exchange of 1.0% and an organic
sales decline of 6.1%.
- Second-quarter net income was $9.3 million,
or $0.36 per diluted share, compared with $9.6
million, or $0.37 per diluted share, in the second
quarter of 2015. Non-GAAP net income in the second quarter of
2016 was $10.9 million, or non-GAAP diluted earnings per
share of $0.42, compared with $11.5 million, or non-GAAP
diluted earnings per share of $0.43, a year ago.*
- Strong cash flow from operations of $30.5 million led to free
cash flow of $19.7 million for the first six months.*
- The Company returned to shareholders $2.2 million by
repurchasing approximately 80,190 shares during the second quarter
under its $50 million repurchase program. Since the program's
inception in May 2014, the Company has purchased approximately
$39.3 million, or 1.4 million shares, under the program.
*Reconciliation of
Non-GAAP Net Income: |
Quarter Ended |
|
Year to Date Ended |
|
Quarter Ended |
|
Year to Date Ended |
|
June 30, 2016 |
|
June 30, 2015 |
Net income attributable
to Altra Industrial Motion Corp. |
$ |
9,349 |
|
|
$ |
18,159 |
|
|
$ |
9,679 |
|
|
$ |
19,078 |
|
|
|
|
|
|
|
|
|
Restructuring
costs |
1,641 |
|
|
3,194 |
|
|
2,587 |
|
|
4,343 |
|
Acquisition related
expenses |
— |
|
|
— |
|
|
— |
|
|
738 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Legal fees associated
with pursuit of unfair trade remedy |
534 |
|
|
534 |
|
|
— |
|
|
— |
|
Tax impact of above
adjustments |
(632 |
) |
|
(1,096 |
) |
|
(779 |
) |
|
(1,540 |
) |
Non-GAAP net
income* |
$ |
10,892 |
|
|
$ |
20,791 |
|
|
$ |
11,487 |
|
|
$ |
22,619 |
|
Non-GAAP diluted
earnings per share* |
$ |
0.42 |
|
|
$ |
0.80 |
|
|
$ |
0.43 |
|
|
$ |
0.85 |
|
|
*Reconciliation of Free Cash Flow: |
Year to Date Ended |
|
June 30, 2016 |
|
June 30, 2015 |
Net cash
flows from operating activities |
30,532 |
|
|
30,114 |
|
Purchase of
property, plant and equipment |
(10,861 |
) |
|
(13,482 |
) |
|
Free cash
flow * |
$ |
19,671 |
|
|
$ |
16,632 |
|
In
Thousands of Dollars, except per share amounts |
|
Management Comments
“We are executing well on our actions to enhance Altra’s
long-term operating performance as the soft economic environment in
many of our end markets persists,” said Carl
Christenson, Altra's Chairman and CEO. “We improved gross
profit margin by 140 basis points in the second quarter to 31.9% on
a 7% decline in sales as a result of our consolidation, supply
chain and operational excellence initiatives. We have completed
five facility consolidations, and two are in process, with expected
total annualized savings of $5 million. We generated strong cash
flow during the quarter, which enabled us to repurchase $2.2
million of Altra shares and pay down more than $23 million of
debt.”
Business Outlook
"We had been hopeful to see the beginnings of a recovery in the
back half of this year. While comparisons with prior-year quarters
will be easier, we do not see imminent catalysts that would result
in improvements to our most out-of-favor end markets. At the same
time, based on our solid first-half performance and near term
outlook, we are maintaining our top-and-bottom-line guidance for
the full year. Looking forward, we are encouraged by the benefits
we already are experiencing from our consolidation, supply chain
and operational excellence initiatives and expect these aggressive
actions to result in significant long-term operating performance
improvement."
Altra is maintaining its previous annual revenue guidance and
expects full-year 2016 sales in the range of $700 to $720 million
and diluted EPS in the range of $1.20 to $1.30 and non-GAAP diluted
EPS guidance in the range of $1.40 to $1.50.* This guidance
includes savings from the restructuring and consolidation actions
taken to date. The Company expects its tax rate for the full year
to be approximately 29% to 31%. Altra continues to expect capital
expenditures in the range of $20 to $24 million and depreciation
and amortization in the range of $30 to $32 million for 2016.
The following table reconciles GAAP diluted earnings per share
to non-GAAP diluted earnings per share and does not take in to
account any unknown factors that may impact the business.
*Reconciliation of 2016
Non-GAAP Diluted EPS Guidance: |
Projected Fiscal Year 2016 |
Net Income per share
Diluted |
$1.20 - $1.30 |
Non-GAAP adjustments,
net of tax, excludes acquisition related expenses, restructuring
costs, and other income or charges. |
$ |
0.20 |
|
Non-GAAP Diluted
EPS |
$1.40 - $1.50 |
|
|
Conference Call
The Company will conduct an investor conference call to discuss
its unaudited second-quarter 2016 financial results this morning at
10:00 a.m. ET. The public is invited to listen to the conference
call by dialing (877) 407-8293 domestically or (201) 689-8349 for
international access. A live webcast of the call will be available
in the "Investor Relations" section of www.altramotion.com.
Individuals may download charts that will be used during the call
at www.altramotion.com under presentations in the Investor
Relations section. The charts will be available after earnings are
released. A replay of the recorded conference call will be
available at the conclusion of the call on July 21 through midnight
on August 4, 2016. To listen to the replay, dial (877) 660-6853
domestically or (201) 612-7415 for international access (conference
ID #13641048). A webcast replay also will be available.
|
Altra Industrial Motion Corp. |
|
|
|
|
Consolidated
Statements of Income Data |
|
Quarter Ended |
|
Year to Date
Ended |
|
In Thousands of
Dollars, except per share amount |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
|
|
Net sales |
|
$ |
182,674 |
|
|
$ |
196,610 |
|
|
$ |
363,127 |
|
|
$ |
389,971 |
|
|
Cost of sales |
|
124,474 |
|
|
136,624 |
|
|
250,297 |
|
|
271,512 |
|
|
Gross profit |
|
$ |
58,200 |
|
|
$ |
59,986 |
|
|
$ |
112,830 |
|
|
$ |
118,459 |
|
|
Gross profit as a
percent of net sales |
|
31.9 |
% |
|
30.5 |
% |
|
31.1 |
% |
|
30.4 |
% |
|
Selling, general &
administrative expenses |
|
35,870 |
|
|
35,152 |
|
|
69,406 |
|
|
71,454 |
|
|
Research and
development expenses |
|
4,514 |
|
|
4,534 |
|
|
9,078 |
|
|
9,296 |
|
|
Restructuring
Charges |
|
1,641 |
|
|
2,587 |
|
|
3,194 |
|
|
4,343 |
|
|
Income from operations |
|
$ |
16,175 |
|
|
$ |
17,713 |
|
|
$ |
31,152 |
|
|
$ |
33,366 |
|
|
Income from operations as a percent
of net sales |
|
8.9 |
% |
|
9.0 |
% |
|
8.6 |
% |
|
8.6 |
% |
|
Interest expense,
net |
|
2,904 |
|
|
2,978 |
|
|
5,800 |
|
|
5,934 |
|
|
Other non-operating
(income) expense, net |
|
(205 |
) |
|
750 |
|
|
(483 |
) |
|
(79 |
) |
|
Income before income
taxes |
|
$ |
13,476 |
|
|
$ |
13,985 |
|
|
$ |
25,835 |
|
|
$ |
27,511 |
|
|
Provision for income
taxes |
|
4,127 |
|
|
4,360 |
|
|
7,676 |
|
|
8,496 |
|
|
Income tax rate |
|
30.6 |
% |
|
31.2 |
% |
|
29.7 |
% |
|
30.9 |
% |
|
Net income |
|
9,349 |
|
|
9,625 |
|
|
18,159 |
|
|
19,015 |
|
|
Net loss attributable to
non-controlling interest |
|
— |
|
|
54 |
|
|
— |
|
|
63 |
|
|
Net income attributable to Altra
Industrial Motion Corp. |
|
$ |
9,349 |
|
|
$ |
9,679 |
|
|
$ |
18,159 |
|
|
$ |
19,078 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted Average common
shares outstanding |
|
|
|
|
|
|
|
|
|
Basic |
|
25,699 |
|
|
26,280 |
|
|
25,699 |
|
|
26,204 |
|
|
Diluted |
|
25,968 |
|
|
26,450 |
|
|
25,793 |
|
|
26,287 |
|
|
|
|
|
|
|
|
|
|
|
|
Net income per
share |
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.36 |
|
|
$ |
0.37 |
|
|
$ |
0.71 |
|
|
$ |
0.73 |
|
|
Diluted |
|
$ |
0.36 |
|
|
$ |
0.37 |
|
|
$ |
0.70 |
|
|
$ |
0.73 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Non-GAAP Income From Operations: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
$ |
16,175 |
|
|
$ |
17,713 |
|
|
$ |
31,152 |
|
|
$ |
33,366 |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs |
|
1,641 |
|
|
2,587 |
|
|
3,194 |
|
|
4,343 |
|
|
Legal Fees associated
with the pursuit of unfair trade remedy |
|
534 |
|
|
|
— |
|
|
534 |
|
|
|
— |
|
|
Acquisition related
expenses |
|
— |
|
|
— |
|
|
— |
|
|
738 |
|
|
Non-GAAP income from operations
* |
|
$ |
18,350 |
|
|
$ |
20,300 |
|
|
$ |
34,880 |
|
|
$ |
38,447 |
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation
of Non-GAAP Net Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income attributable
to Altra Industrial Motion Corp. |
|
9,349 |
|
|
9,679 |
|
|
18,159 |
|
|
19,078 |
|
|
|
|
|
|
|
|
|
|
|
|
Restructuring
costs |
|
1,641 |
|
|
2,587 |
|
|
3,194 |
|
|
4,343 |
|
|
Acquisition related
expenses |
|
— |
|
|
— |
|
|
— |
|
|
738 |
|
|
Legal Fees associated
with the pursuit of unfair trade remedy |
|
534 |
|
|
— |
|
|
534 |
|
|
— |
|
|
Tax impact of above
adjustments |
|
(632 |
) |
|
(779 |
) |
|
(1,096 |
) |
|
(1,540 |
) |
|
Non-GAAP net income * |
|
$ |
10,892 |
|
|
$ |
11,487 |
|
|
$ |
20,791 |
|
|
$ |
22,619 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP diluted
earnings per share * |
|
$ |
0.42 |
|
|
(1 |
) |
$ |
0.43 |
|
|
(2 |
) |
$ |
0.80 |
|
|
(3 |
) |
$ |
0.85 |
|
|
(4 |
) |
|
|
|
|
|
(1) - tax
impact is calculated by multiplying the estimated effective tax
rate for the period of 29.1% by the above items |
(2) - tax
impact is calculated by multiplying the estimated effective tax
rate for the period of 30.1% by the above items |
(3) - tax
impact is calculated by multiplying the estimated effective tax
rate for the period of 29.4% by the above items |
(4) - tax
impact is calculated by multiplying the estimated effective tax
rate for the period of 30.3% by the above items |
|
Consolidated
Balance Sheets |
|
|
|
|
In Thousands of
Dollars |
|
June 30,
2016 |
|
December
31, 2015 |
|
|
(unaudited) |
|
|
Assets: |
|
|
|
|
Current Assets |
|
|
|
|
Cash and cash equivalents |
|
$ |
34,330 |
|
|
$ |
50,320 |
|
Trade receivables, net |
|
103,271 |
|
|
94,720 |
|
Inventories |
|
120,567 |
|
|
121,156 |
|
Income tax receivable |
|
1,419 |
|
|
5,146 |
|
Prepaid expenses and other current
assets |
|
11,981 |
|
|
11,217 |
|
Assets held for sale |
|
4,728 |
|
|
4,597 |
|
Total current
assets |
|
276,296 |
|
|
287,156 |
|
Property, plant and equipment,
net |
|
145,569 |
|
|
145,413 |
|
Intangible assets, net |
|
92,497 |
|
|
96,069 |
|
Goodwill |
|
97,766 |
|
|
97,309 |
|
Deferred income taxes |
|
3,199 |
|
|
3,201 |
|
Other non-current assets, net |
|
2,656 |
|
|
3,184 |
|
Total assets |
|
$ |
617,983 |
|
|
$ |
632,332 |
|
|
|
|
|
|
Liabilities, and
stockholders' equity |
|
|
|
|
Current liabilities |
|
|
|
|
Accounts payable |
|
$ |
44,647 |
|
|
$ |
40,297 |
|
Accrued payroll |
|
19,908 |
|
|
22,312 |
|
Accruals and other current
liabilities |
|
34,737 |
|
|
34,990 |
|
Income tax payable |
|
3,021 |
|
|
3,563 |
|
Current portion of long-term
debt |
|
708 |
|
|
3,187 |
|
Total current liabilities |
|
103,021 |
|
|
104,349 |
|
Long-term debt, less current
portion and net of unaccreted discount |
|
210,470 |
|
|
231,568 |
|
Deferred income taxes |
|
44,302 |
|
|
44,185 |
|
Pension liabilities |
|
8,839 |
|
|
8,328 |
|
Long-term taxes payable |
|
662 |
|
|
647 |
|
Other long-term liabilities |
|
699 |
|
|
688 |
|
Total stockholders’
equity |
|
249,990 |
|
|
242,567 |
|
Total liabilities, and
stockholders’ equity |
|
$ |
617,983 |
|
|
$ |
632,332 |
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
operating working capital: |
|
|
|
|
Trade receivables,
net |
|
103,271 |
|
|
94,720 |
|
Inventories |
|
120,567 |
|
|
121,156 |
|
Accounts payable |
|
(44,647 |
) |
|
(40,297 |
) |
Operating working
capital * |
|
$ |
179,191 |
|
|
$ |
175,579 |
|
|
|
|
|
|
Consolidated
Statements of Cash Flows |
|
|
|
|
In Thousands of
Dollars |
|
Year to
Date Ended |
|
|
|
|
|
|
|
June 30,
2016 |
|
June 30,
2015 |
|
|
(Unaudited) |
|
(Unaudited) |
Cash flows from
operating activities |
|
|
|
|
Net income |
|
$ |
18,159 |
|
|
$ |
19,015 |
|
Adjustments to
reconcile net income to net cash flows: |
|
|
|
|
Depreciation |
|
10,487 |
|
|
10,832 |
|
Amortization of intangible
assets |
|
4,262 |
|
|
4,300 |
|
Amortization of deferred financing
costs |
|
393 |
|
|
468 |
|
(Gain) on foreign currency,
net |
|
(100 |
) |
|
(125 |
) |
Accretion of debt discount,
net |
|
1,962 |
|
|
1,810 |
|
Loss on impairment / disposal of
fixed assets |
|
411 |
|
|
1,127 |
|
Stock based compensation |
|
2,312 |
|
|
2,215 |
|
Changes in assets and
liabilities: |
|
|
|
|
Trade receivables |
|
(8,890 |
) |
|
(13,320 |
) |
Inventories |
|
238 |
|
|
2,742 |
|
Accounts payable and accrued
liabilities |
|
1,470 |
|
|
2,262 |
|
Other current assets and
liabilities |
|
(698 |
) |
|
74 |
|
Other operating assets and
liabilities |
|
526 |
|
|
(1,286 |
) |
Net cash provided by operating
activities |
|
30,532 |
|
|
30,114 |
|
Cash flows from
investing activities |
|
|
|
|
Purchase of property,
plant and equipment |
|
(10,861 |
) |
|
(13,482 |
) |
Net cash used in investing
activities |
|
(10,861 |
) |
|
(13,482 |
) |
Cash flows from
financing activities |
|
|
|
|
Payments on term loan
facility |
|
— |
|
|
(11,445 |
) |
Payments on Revolving
Credit Facility |
|
(26,507 |
) |
|
(2,000 |
) |
Dividend payments |
|
(3,903 |
) |
|
(3,178 |
) |
Proceeds from equipment
and working capital notes |
|
— |
|
|
1,100 |
|
Payments of equipment and
working capital notes |
|
(2,477 |
) |
|
(2,396 |
) |
Proceeds from mortgages
and other debt |
|
3,112 |
|
|
3,012 |
|
Borrowing under
Revolving Credit Facility |
|
— |
|
|
6,000 |
|
Purchase of
non-controlling interest in Lamiflex |
|
— |
|
|
(878 |
) |
Shares surrendered for
tax withholding |
|
(103 |
) |
|
(128 |
) |
Payments on mortgages
and other debt |
|
(68 |
) |
|
(254 |
) |
Purchases of common
stock under share repurchase program |
|
(4,391 |
) |
|
(8,006 |
) |
Net cash flows used in financing
activities |
|
(34,337 |
) |
|
(18,173 |
) |
Effect of exchange rate
changes on cash and cash equivalents |
|
(1,324 |
) |
|
(3,685 |
) |
Net change in cash and cash
equivalents |
|
(15,990 |
) |
|
(5,226 |
) |
Cash and cash
equivalents at beginning of year |
|
50,320 |
|
|
47,503 |
|
Cash and cash
equivalents at end of period |
|
$ |
34,330 |
|
|
$ |
42,277 |
|
|
|
|
|
|
Reconciliation
to free cash flow: |
|
|
|
|
Net cash flows from
operating activities |
|
30,532 |
|
|
30,114 |
|
Purchase of property,
plant and equipment |
|
(10,861 |
) |
|
(13,482 |
) |
|
|
|
|
|
Free cash flow * |
|
$ |
19,671 |
|
|
$ |
16,632 |
|
|
|
|
|
|
|
|
|
|
Altra
Industrial Motion Corp. |
|
|
|
|
|
|
|
|
Selected
Segment Data |
|
Quarter Ended |
|
Year to Date Ended |
|
|
|
|
|
In Thousands of
Dollars, except per share amount |
|
June 30, 2016 |
|
June 30, 2015 |
|
June 30, 2016 |
|
June 30, 2015 |
|
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
(Unaudited) |
|
|
|
|
|
|
|
|
|
Net
Sales |
|
|
|
|
|
|
|
|
Couplings Clutches
& Brakes |
|
$ |
78,157 |
|
|
$ |
90,351 |
|
|
$ |
153,780 |
|
|
$ |
179,466 |
|
Electromagnetic
Clutches & Brakes |
|
57,053 |
|
|
58,250 |
|
|
114,402 |
|
|
115,886 |
|
Gearing |
|
49,096 |
|
|
49,611 |
|
|
98,015 |
|
|
98,817 |
|
Eliminations |
|
(1,632 |
) |
|
(1,602 |
) |
|
(3,070 |
) |
|
(4,198 |
) |
Total |
|
$ |
182,674 |
|
|
$ |
196,610 |
|
|
$ |
363,127 |
|
|
$ |
389,971 |
|
|
|
|
|
|
|
|
|
|
Income from
operations |
|
|
|
|
|
|
|
|
Couplings Clutches
& Brakes |
|
$ |
7,554 |
|
|
$ |
10,809 |
|
|
$ |
13,845 |
|
|
$ |
20,763 |
|
Electromagnetic
Clutches & Brakes |
|
7,068 |
|
|
6,194 |
|
|
13,531 |
|
|
11,522 |
|
Gearing |
|
5,867 |
|
|
6,076 |
|
|
11,629 |
|
|
10,825 |
|
Restructuring |
|
(1,641 |
) |
|
(2,587 |
) |
|
(3,194 |
) |
|
(4,343 |
) |
Corporate |
|
(2,673 |
) |
|
(2,779 |
) |
|
(4,659 |
) |
|
(5,401 |
) |
Total |
|
$ |
16,175 |
|
|
$ |
17,713 |
|
|
$ |
31,152 |
|
|
$ |
33,366 |
|
|
|
|
|
|
|
|
|
|
About Altra Industrial Motion Corp.
Altra Industrial Motion Corp., through its subsidiaries, is a
leading global designer, producer and marketer of a wide range of
electromechanical power transmission products. The Company brings
together strong brands covering over 40 product lines with
production facilities in 12 countries. Altra's leading brands
include Ameridrives Couplings, Bauer Gear Motor, Bibby Turboflex,
Boston Gear, Delroyd Worm Gear, Formsprag Clutch, Guardian
Couplings, Huco, Industrial Clutch, Inertia
Dynamics, Kilian Manufacturing, Lamiflex Couplings, Marland
Clutch, Matrix, Nuttall Gear, Stieber Clutch, Svendborg
Brakes, TB Wood's, Twiflex, Warner
Electric, Warner Linear, and Wichita Clutch.
The Altra Industrial Motion
Corp. logo is available
at http://www.globenewswire.com/newsroom/prs/?pkgid=4038.
* Discussion of Non-GAAP Financial Measures
As used in this release and the accompanying slides posted on
the Company's website, non-GAAP diluted earnings per share,
non-GAAP income from operations and non-GAAP net income are each
calculated using either net income or income from operations that
excludes acquisition related expenses, restructuring costs, and
other income or charges that management does not consider to be
directly related to the Company's core operating performance.
Non-GAAP gross profit calculated using gross profit that excludes
income or charges that management does not consider to be directly
related to the Company's core operating performance. Non-GAAP
diluted earnings per share is calculated by dividing non-GAAP net
income by GAAP weighted average shares outstanding (diluted).
Non-GAAP free cash flow is calculated by deducting purchases of
property, plant and equipment from net cash flows from operating
activities. Non-GAAP operating working capital is calculated
by deducting accounts payable from net trade receivables plus
inventories.
Altra believes that the presentation of non-GAAP net income,
non-GAAP income from operations, non-GAAP gross profit, non-GAAP
diluted earnings per share, non-GAAP free cash flow and non-GAAP
operating working capital provides important supplemental
information to management and investors regarding financial and
business trends relating to the Company's financial condition and
results of operations.
Forward-Looking Statements
All statements, other than statements of historical fact
included in this release are forward-looking statements, as that
term is defined in the Private Securities Litigation Reform Act of
1995. These statements include, but are not limited to, any
statement that may predict, forecast, indicate or imply future
results, performance, achievements or events. Forward-looking
statements can generally be identified by phrases such as
"believes," "expects," "potential," "continues," "may," "should,"
"seeks," "predicts," "anticipates," "intends," "projects,"
"estimates," "plans," "could," "designed", "should be," and other
similar expressions that denote expectations of future or
conditional events rather than statements of fact. Forward-looking
statements also may relate to strategies, plans and objectives for,
and potential results of, future operations, financial results,
financial condition, business prospects, growth strategy and
liquidity, and are based upon financial data, market assumptions
and management's current business plans and beliefs or current
estimates of future results or trends available only as of the time
the statements are made, which may become out of date or
incomplete. Forward-looking statements are inherently uncertain,
and investors must recognize that events could differ significantly
from our expectations. These statements include, but may not be
limited to, those relating to the Company's progress on corporate
initiatives, including its supply chain management initiative, the
Company's views and assessment of economic conditions, foreign
currency trends, end market conditions and industrial demand, the
Company's expectations with respect to sales, the Company’s
progress on executing its acquisition and organic growth strategies
and new product development, the Company’s progress on implementing
profit improvement initiatives, the Company's progress and future
plans on implementing and pursuing consolidation and cost reduction
activities and the cost savings associated therewith, the impact
and timing of the Company's cost management and restructuring
activities on earnings, margins and shareholder value, the
Company's unaudited 2016 financial information, and the Company's
guidance for full year 2016.
In addition to the risks and uncertainties noted in this
release, there are certain factors that could cause actual results
to differ materially from those anticipated by some of the
statements made. These include: (1) competitive pressures, (2)
changes in economic conditions in the United States and
abroad and the cyclical nature of our markets, (3) loss of
distributors, (4) the ability to develop new products and respond
to customer needs, (5) risks associated with international
operations, including currency risks, (6) accuracy of estimated
forecasts of OEM customers and the impact of the current global
economic environment on our customers, (7) risks associated with a
disruption to our supply chain, (8) fluctuations in the costs of
raw materials used in our products, (9) product liability claims,
(10) work stoppages and other labor issues, (11) changes in
employment, environmental, tax and other laws and changes in the
enforcement of laws, (12) loss of key management and other
personnel, (13) risks associated with compliance with environmental
laws, (14) the ability to successfully execute, manage and
integrate key acquisitions and mergers, (15) failure to obtain or
protect intellectual property rights, (16) risks associated with
impairment of goodwill or intangibles assets, (17) failure of
operating equipment or information technology infrastructure, (18)
risks associated with our debt leverage and operating covenants
under our debt instruments, (19) risks associated with restrictions
contained in our Convertible Notes and Credit Facility, (20) risks
associated with compliance with tax laws, (21) risks associated
with the global recession and volatility and disruption in the
global financial markets, (22) risks associated with
implementation of our ERP system, (23) risks associated with the
Svendborg and Guardian acquisitions and integration and other
acquisitions, (24) risks associated with the closure of the
Company's manufacturing facility in Changzhou, China, (25)
risks associated with certain minimum purchase agreements we have
with suppliers, (26) risks associated with our exposure to variable
interest rates and foreign currency exchange rates, (27) risks
associated with interest rate swap contracts, (28) risks associated
with the potential dilution of our common stock as a result of our
convertible notes, (29) risks associated with our exposure to
renewable energy markets, (30) risks related to regulations
regarding conflict minerals, (31) risks related to restructuring
and plant consolidations, (32) risk associated with the UK vote to
leave the European Union and (33) other risks, uncertainties and
other factors described in the Company's quarterly reports on Form
10-Q and annual reports on Form 10-K and in the Company's other
filings with the U.S. Securities and Exchange
Commission (SEC) or in materials incorporated therein by
reference. Except as required by applicable law, Altra Industrial
Motion Corp. does not intend to, update or alter its forward
looking statements, whether as a result of new information, future
events or otherwise. AIMC-E
CONTACT:
Altra Industrial Motion Corp.
Christian Storch, Chief Financial Officer
781-917-0541
Christian.storch@altramotion.com
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