Allied Motion Technologies Inc. (NASDAQ:AMOT) today
announced net income increased 39% to $2,976,000 or $0.32 per
diluted share for the quarter ended March 31, 2015 compared to
$2,148,000 or $0.24 per diluted share for the quarter ended March
31, 2014. Revenues for the quarter declined 1% to $59,580,000
compared to $60,435,000 last year with the decline resulting from
the strengthening of the U.S. dollar against foreign currencies.
Sales volumes for the quarter were up over last year by 6%, while
the currency impact reduced sales by 7%. Sales to U.S. customers
were up 3% and foreign sales down 9%. The strengthening of the U.S.
dollar against foreign currencies during the first quarter of 2015
also had a significant impact on reported bookings when compared to
the prior year. Bookings for the quarter ended March 31, 2015 were
$58.1 million compared to $64.4 million for the first quarter of
2014 or a decrease of 10%. The decrease in bookings is 7% currency
related and 3% volume related. Backlog as of March 31, 2015 was
$71.3 million compared to $79.7 million as of March 31, 2014, a
decrease of 11% over the prior year. Bank debt net of cash at March
31, 2015 decreased $14.2 million to $62.6 million as compared to
March 31, 2014, and showed a slight increase when compared to
December 31, 2014.
“Although the strengthening of the U.S dollar posed a
significant hurdle, we had a good start to 2015 with net income
increasing 39% and gross margin improving by 1.1% when compared to
the same quarter of 2014”, commented Dick Warzala, Chairman and CEO
of Allied Motion. “For the quarter, we experienced growth in our
Aerospace and Defense, Medical and Electronics markets. Our Vehicle
and Industrial markets were flat, while our Distribution market was
down. Our pipeline of new opportunities continues to expand nicely
with an increasing number offered as multi-product solutions driven
through our Solution Centers. As we move forward into the future,
we believe 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.”
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 May 7,
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, 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 March
31, HIGHLIGHTS OF OPERATING RESULTS
2015 2014 Revenues $ 59,580
$ 60,435 Cost of goods sold 42,080
43,343 Gross margin 17,500 17,092 Operating costs and
expenses: Selling expenses 2,208 2,110 General and administrative
expenses 5,553 6,216 Engineering and development expenses 3,446
3,517 Amortization of intangible assets 662
678 Total operating costs and expenses 11,869 12,521 Other
expense (income): Interest expense 1,515 1,638 Other income, net
(266 ) (352 ) Income before income taxes 4,382 3,285
Provision for income taxes (1,406 ) (1,137 ) Net
income $ 2,976 $ 2,148
PER SHARE
AMOUNTS: Diluted earnings per share $ 0.32 $ 0.24
Diluted weighted average common shares 9,208
9,130
March 31,
December 31, CONDENSED BALANCE SHEETS
2015 2014 Assets Current Assets:
Cash and cash equivalents $ 11,043 $ 13,113 Trade receivables, net
29,961 27,745 Inventories, net 25,117 25,371 Other current assets
4,051 4,555 Total Current Assets 70,172 70,784
Property, plant and equipment, net 35,973 37,041 Deferred income
taxes 2,910 2,723 Intangible assets, net 31,957 32,791 Goodwill
17,733 18,303 Other long-term assets, net 4,368 3,998
Total Assets $ 163,113 $ 165,640
Liabilities and
Stockholders’ Equity Current Liabilities: Debt obligations $
8,420 $ 7,723 Accounts payable 16,763 15,510 Accrued liabilities
10,099 12,723 Total Current Liabilities 35,282 35,956
Long-term debt 65,250 67,125 Deferred income taxes 1,131 1,299
Other long-term liabilities 5,728 5,309 Total
Liabilities 107,391 109,689 Stockholders’ Equity 55,722
55,951 Total Liabilities and Stockholders’ Equity $ 163,113
$ 165,640
For the three months ended
March 31 CONDENSED STATEMENTS OF CASH FLOWS
2015 2014 Cash flows from
operating activities: Net income $ 2,976 $ 2,148
Depreciation and amortization 1,807 1,688 Other 293 2,383 Changes
in working capital (4,399 ) (6,451 ) Net cash
provided by (used in) operating activities 677 (232 )
Cash flows from investing activities: Proceeds from working
capital adjustment on acquisition - 1,434 Purchase of property and
equipment (1,436 ) (584 ) Net cash (used in) provided
by investing activities (1,436 ) 850
Cash flows from
financing activities: Borrowings on lines-of-credit, net 315
164 Principal payments of long-term debt (1,500 ) (1,250 )
Dividends paid to stockholders (233 ) (231 ) Stock transactions
under employee benefit stock plans 1,171 304
Net cash used in financing activities (247 ) (1,013 ) Effect
of foreign exchange rate changes on cash (1,064 ) (58
) Net decrease in cash and cash equivalents (2,070 ) (453 ) Cash
and cash equivalents at beginning of period 13,113
10,171 Cash and cash equivalents at end of period $
11,043 $ 9,718
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, amortization and interest expense that have resulted
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 months ended
March 31, 2015 and 2014 is as follows (in thousands):
For the three months ended March 31,
2015
2014 Net income $ 2,976 $ 2,148
Interest expense 1,515 1,638 Provision for income tax 1,406 1,137
Depreciation and amortization 1,807
1,688 EBITDA $ 7,704 $ 6,611
Allied Motion Technologies Inc.Robert Maida or Sue
Chiarmonte716-242-8634
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