- Record revenue of $101.7 million, up 10% over the prior-year
period, driven by Medical and Vehicle market demand
- Record orders of $114.6 million, up 23% over the prior-year
period, demonstrated strong execution and improving market
conditions
- Record backlog of $152.3 million, up 8% sequentially
- Higher volume resulted in operating income of $6.6 million or
6.5% of revenue
- Achieved net income of $11.9 million, including a one-time tax
benefit
- Generated $5.6 million in cash from operations
Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion”
or “Company”), a designer and manufacturer of precision and
specialty controlled motion products and solutions for the global
market, today reported financial results for its first quarter
ended March 31, 2021. All share and per share information reflect
the April 30, 2021 3-for-2 stock dividend.
“Our first quarter performance was fueled by double-digit growth
in Medical and Vehicle, which drove total revenue to a record
level,” commented Dick Warzala, Chairman and CEO. “While our
Industrial and Aerospace & Defense revenue was down
quarter-over-quarter, we are seeing encouraging signs of
improvement overall in our served markets as demonstrated by our
record incoming and booked orders in the quarter. We believe we are
managing our inventory levels well even as we work to deal with
supply chain challenges to meet customer demand. Importantly, gross
margin saw sequential improvement on higher volume despite
near-term headwinds created by supply chain constraints as we
maintain our focus on meeting the needs of our customers.”
First Quarter 2021 Results (Narrative compares with
prior-year period unless otherwise noted)
Record revenue of $101.7 million increased 10%, driven by strong
demand in the Medical and Vehicle markets. Medical markets improved
measurably, up 60% over the prior-year period, including the
benefit from a full quarter of Dynamic Controls, which was acquired
in March 2020. Sales to the Vehicle market grew 23%, reflecting
strong demand in powersports. The favorable impact of foreign
currency exchange rate fluctuations on revenue was $4.3 million.
Sales to U.S. customers were 51% of total sales compared with 53%
for the same period last year, with the balance of sales to
customers primarily in Europe, Canada and Asia-Pacific.
Gross margin was 29.6%, up 170 basis points from the sequential
2020 fourth quarter, but down 80 basis points from the first
quarter of 2020. The change from the prior-year period was
primarily attributable to increased costs given the tight supply
chain and the decision to incur incremental costs to ensure on time
deliveries to customers.
Operating costs and expenses as a percent of revenue were 23.1%,
unchanged over the prior-year period. Higher volume drove operating
leverage, which helped to offset increased incentive compensation.
Operating income was $6.6 million, or 6.5% of sales, compared with
$6.7 million, or 7.3%.
During the quarter, Allied Motion recorded a net discrete tax
benefit of $7.4 million relating to new legislation enacted in New
Zealand. As a result, first quarter net income was $11.9 million,
or $0.83 per diluted share, compared with $4.0 million, or $0.28
per diluted share, in the 2020 first quarter.
Excluding the discrete tax benefit, business development costs
and foreign currency gains/losses, adjusted net income was $4.6
million, or $0.32 per diluted share, compared with $4.3 million, or
$0.30 per diluted share, in the prior-year period. See the attached
table for a description of non-GAAP financial measures and
reconciliation table for Adjusted Net Income and Diluted Earnings
per Share. Absent the tax benefit, the effective tax rate for the
first quarter was 22.4%. The Company expects its income tax rate
for the remaining quarters of 2021 to range between 26% to 28%.
Earnings before interest, taxes, depreciation, amortization,
stock-based compensation expense, business development costs, and
foreign currency gains/losses (“Adjusted EBITDA”) was $12.0 million
compared with $11.5 million in the prior-year period. As a percent
of sales, Adjusted EBITDA was 11.8% versus 12.5% in the prior-year
period. The Company believes that, when used in conjunction with
measures prepared in accordance with U.S. generally accepted
accounting principles, Adjusted EBITDA, which is a non-GAAP
measure, helps in the understanding of its operating performance.
See the attached table for a description of non-GAAP financial
measures and reconciliation table for Adjusted EBITDA.
Balance Sheet and Cash Flow Review
Cash and cash equivalents increased $1.6 million to $24.7
million from year-end 2020. The Company generated net cash from
operations of $5.6 million in the first quarter of 2021 compared
with cash out flow of $3.0 million in the first quarter of
2020.
Total debt was $119.9 million at quarter-end, and debt, net of
cash, was $95.2 million, or 38.3% of net debt to
capitalization.
Capital expenditures were $3.1 million during the quarter and
largely focused on new customer projects and ERP implementations.
The Company expects 2021 capital expenditures to be approximately
$12 million to $15 million.
Orders and Backlog Summary ($ in thousands)
Q1
2021
Q4 2020 Q3 2020
Q2
2020
Q1
2020
Orders
$
114,644
$
108,466
$
88,958
$
80,365
$
92,923
Backlog
$
152,262
$
141,344
$
123,700
$
127,701
$
133,187
Orders of $114.6 million reached a record level, increasing 23%
over the 2020 first quarter. Foreign currency translation had a
favorable $4.2 million impact on first quarter orders compared with
the prior-year period. Backlog increased 8% over the sequential
fourth quarter and 14% quarter-over-quarter to a record $152.3
million. The time to convert the majority of backlog to sales is
approximately three to six months. Included in the current backlog
is approximately $5 million of the previously announced $325
million of Vehicle market awards. The Company has begun shipments
for the first of four, seven-year awards, and all four awards are
expected to concurrently be at full rate production in 2024.
Conference Call and Webcast
The Company will host a conference call and webcast on Thursday,
May 6, 2021 at 10:00 am ET. During the conference call, management
will review the financial and operating results and discuss Allied
Motion’s corporate strategy and outlook. A question and answer
session will follow.
To listen to the live call, dial (201) 689-8263. In addition,
the webcast and slide presentation may be found at:
www.alliedmotion.com/investor-relations
A telephonic replay will be available from 1:00 pm ET on the day
of the call through Thursday, May 13, 2021. To listen to the
archived call, dial (412) 317-6671 and enter replay pin number
13718359 or access the webcast replay via the Company’s website. A
transcript will also be posted to the website once available.
About Allied Motion Technologies Inc.
Allied Motion (Nasdaq: AMOT) designs, manufactures and sells
precision and specialty controlled motion products and solutions
used in a broad range of industries within our major served
markets, which include Vehicle, Medical, Aerospace & Defense,
and Industrial. Headquartered in Amherst, NY, the Company has
global operations and sells into markets across the United States,
Canada, South America, Europe and Asia-Pacific.
Allied Motion is focused on controlled motion applications and
is known worldwide for its expertise in electro-magnetic,
mechanical and electronic motion technology. Its products include
brush and brushless DC motors, brushless servo and torque motors,
coreless DC motors, integrated brushless motor-drives, gear motors,
gearing, modular digital servo drives, motion controllers,
incremental and absolute optical encoders, active (electronic) and
passive (magnetic) filters for power quality and harmonic issues,
and other controlled motion-related products.
The Company’s growth strategy is focused on being the controlled
motion solutions leader in its selected target markets by
leveraging its “technology/know how” to develop integrated
precision solutions that utilize multiple Allied Motion
technologies to “change the game” and create higher value solutions
for its customers. The Company routinely posts news and other
important information on its website at www.alliedmotion.com.
Safe Harbor Statement
The statements in this news release and in the Company’s May 6,
2021 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. Examples of forward-looking
statements include, among others, statements the Company makes
regarding expected operating results, anticipated levels of capital
expenditures, the Company’s belief that it has sufficient liquidity
to fund its business operations, and expectations with respect to
the conversion of backlog to sales. Forward-looking statements are
neither historical facts nor assurances of future performance.
Instead, they are based only on the Company’s current beliefs,
expectations and assumptions regarding the future of the Company’s
business, future plans and strategies, projections, anticipated
events and trends, the economy and other future conditions. Because
forward-looking statements relate to the future, they are subject
to inherent uncertainties, risks and changes in circumstances that
are difficult to predict and many of which are outside of the
Company’s control. The Company’s actual results and financial
condition may differ materially from those indicated in the
forward-looking statements. Therefore, you should not rely on any
of these forward-looking statements. Important factors that could
cause our actual results and financial condition to differ
materially from those indicated in the forward-looking statements
include, among others, general economic and business conditions,
conditions affecting the industries served by the Company and its
subsidiaries, conditions affecting the Company's customers and
suppliers, competitor responses to the Company's products and
services, the overall market acceptance of such products and
services, the pace of bookings relative to shipments, the ability
to expand into new markets and geographic regions, the success in
acquiring new business, the impact of changes in income tax rates
or policies, the severity, magnitude and duration of the COVID-19
pandemic, including impacts of the pandemic and of businesses’ and
governments’ responses to the pandemic on our operations and
personnel, and on commercial activity and demand across our and our
customers’ businesses, and on global supply chains; our inability
to predict the extent to which the COVID-19 pandemic and related
impacts will continue to adversely impact our business operations,
financial performance, results of operations, financial position,
the prices of our securities and the achievement of our strategic
objectives and other factors disclosed in the Company's periodic
reports filed with the Securities and Exchange Commission. Any
forward-looking statement speaks only as of the date on which it is
made. New risks and uncertainties arise over time, and it is not
possible for us to predict the occurrence of those matters or the
manner in which they may affect us. 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.
FINANCIAL TABLES FOLLOW
ALLIED MOTION TECHNOLOGIES
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share data)
(Unaudited)
For the three months
ended
March 31,
2021
2020
Revenue
$
101,677
$
92,382
Cost of goods sold
71,609
64,340
Gross profit
30,068
28,042
Operating costs and expenses:
Selling
4,218
4,243
General and administrative
10,748
9,162
Engineering and development
6,959
6,234
Business development
19
247
Amortization of intangible assets
1,512
1,441
Total operating costs and expenses
23,456
21,327
Operating income
6,612
6,715
Other expense, net:
Interest expense
861
1,054
Other (income) expense, net
(119)
59
Total other expense, net
742
1,113
Income before income taxes
5,870
5,602
Income tax benefit (provision)
6,057
(1,567)
Net income
$
11,927
$
4,035
Basic earnings per share:
Earnings per share
$
0.83
$
0.28
Basic weighted average common shares
14,306
14,180
Diluted earnings per share:
Earnings per share
$
0.83
$
0.28
Diluted weighted average common shares
14,438
14,274
ALLIED MOTION TECHNOLOGIES
INC.
CONDENSED CONSOLIDATED BALANCE
SHEETS
(In thousands, except per
share data)
(Unaudited)
March 31,
December 31,
2021
2020
Assets
Current assets:
Cash and cash equivalents
$
24,725
$
23,131
Trade receivables, net of provision for
credit losses of $509 and $382 at March 31, 2021 and December 31,
2020, respectively
56,252
47,377
Inventories
61,429
62,978
Prepaid expenses and other assets
7,150
8,728
Total current assets
149,556
142,214
Property, plant and equipment, net
54,808
55,428
Deferred income taxes
7,456
330
Intangible assets, net
63,856
65,859
Goodwill
60,902
61,860
Right of use assets
18,881
19,023
Other long-term assets
4,526
4,483
Total Assets
$
359,985
$
349,197
Liabilities and Stockholders’
Equity
Current liabilities:
Accounts payable
$
32,382
$
27,668
Accrued liabilities
23,314
24,862
Total current liabilities
55,696
52,530
Long-term debt
119,882
120,079
Deferred income taxes
4,658
4,659
Pension and post-retirement
obligations
5,045
5,340
Right of use liabilities
14,895
14,975
Other long-term liabilities
6,761
8,558
Total liabilities
206,937
206,141
Stockholders’ Equity:
Common stock, no par value, authorized
50,000 shares; 14,724 and 14,632 shares issued and outstanding at
March 31, 2021 and December 31, 2020, respectively
42,936
41,278
Preferred stock, par value $1.00 per
share, authorized 5,000 shares; no shares issued or outstanding
—
—
Retained earnings
116,698
105,065
Accumulated other comprehensive loss
(6,586)
(3,287)
Total stockholders’ equity
153,048
143,056
Total Liabilities and Stockholders’
Equity
$
359,985
$
349,197
ALLIED MOTION TECHNOLOGIES
INC.
CONDENSED CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
For the three months
ended
March 31,
2021
2020
Cash Flows From Operating
Activities:
Net income
$
11,927
$
4,035
Adjustments to reconcile net income to net
cash provided by (used in) operating activities
Depreciation and amortization
4,431
3,750
Deferred income taxes
(7,029)
(488)
Stock-based compensation expense
797
789
Debt issue cost amortization recorded in
interest expense
35
38
Other
890
72
Changes in operating assets and
liabilities, net of acquisition:
Trade receivables
(9,912)
(7,463)
Inventories
56
(3,978)
Prepaid expenses and other assets
1,862
275
Accounts payable
4,994
3,043
Accrued liabilities
(2,484)
(3,039)
Net cash provided by (used in) operating
activities
5,567
(2,966)
Cash Flows From Investing
Activities:
Purchase of property and equipment
(3,076)
(1,696)
Consideration paid for acquisitions, net
of cash acquired
—
(14,541)
Net cash used in investing activities
(3,076)
(16,237)
Cash Flows From Financing
Activities:
Proceeds from issuance of long-term
debt
—
26,979
Payment of debt issuance costs
—
(401)
Tax withholdings related to net share
settlements of restricted stock
(256)
(256)
Net cash (used in) provided by financing
activities
(256)
26,322
Effect of foreign exchange rate changes on
cash
(641)
(152)
Net increase in cash and cash
equivalents
1,594
6,967
Cash and cash equivalents at beginning of
period
23,131
13,416
Cash and cash equivalents at end of
period
$
24,725
$
20,383
ALLIED MOTION TECHNOLOGIES INC.
Reconciliation of Non-GAAP Financial Measures (In thousands)
(Unaudited)
In addition to reporting revenue and net income, which are U.S.
generally accepted accounting principle (“GAAP”) measures, the
Company presents Revenue excluding foreign currency exchange rate
impacts, and EBITDA and Adjusted EBITDA (earnings before interest,
income taxes, depreciation and amortization, stock-based
compensation expense, business development costs, and foreign
currency gains/losses), which are non-GAAP measures.
The Company believes that Revenue excluding foreign currency
exchange rate impacts is a useful measure in analyzing organic
sales results. The Company excludes the effect of currency
translation from revenue for this measure because currency
translation is not under management’s control, is subject to
volatility and can obscure underlying business trends. The portion
of revenue attributable to currency translation is calculated as
the difference between the current period revenue and the current
period revenue after applying foreign exchange rates from the prior
period.
The Company believes EBITDA and Adjusted EBITDA are often a
useful measure of a Company’s operating performance and are a
significant basis used by the Company’s management to evaluate and
compare the core operating performance of its business from period
to period by removing the impact of the capital structure
(interest), tangible and intangible asset base (depreciation and
amortization), taxes, stock-based compensation expense, business
development costs related to acquisitions, foreign currency
gains/losses on short-term assets and liabilities, and other items
that are not indicative of the Company’s core operating
performance. EBITDA and Adjusted EBITDA do 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 Revenue excluding foreign currency
exchange impacts for the three months ended March 31, 2021 is as
follows:
Three Months Ended
March 31, 2021
Revenue as reported
$
101,677
Currency impact
(4,274)
Revenue excluding foreign currency
exchange impacts
$
97,403
The Company’s calculation of Adjusted EBITDA for the three
months ended March 31, 2021 and 2020 is as follows:
Three Months Ended
March 31,
2021
2020
Net income
$
11,927
$
4,035
Interest expense
861
1,054
(Benefit) provision for income tax
(6,057)
1,567
Depreciation and amortization
4,431
3,750
EBITDA
11,162
10,406
Stock-based compensation expense
797
789
Foreign currency (gain) loss
(12)
92
Business development costs
19
247
Adjusted EBITDA
$
11,966
$
11,534
ALLIED MOTION TECHNOLOGIES INC.
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net Income and Diluted Earnings per Share (In
thousands, except per share data) (Unaudited)
The Company’s calculation of Adjusted net income and Adjusted
diluted earnings per share for the three months ended March 31,
2021 and 2020 is as follows:
Three Months Ended
March 31,
2021
Per diluted
share
2020
Per diluted
share
Net income as reported
$
11,927
$
0.83
$
4,035
$
0.28
Non-GAAP adjustments, net of tax
Discrete income tax benefit
(7,373)
(0.51)
-
-
Foreign currency (gain) loss
(9)
(0.00)
66
0.00
Business development costs
15
0.00
178
0.01
Adjusted net income and diluted EPS
$
4,560
$
0.32
$
4,279
$
0.30
Weighted average diluted shares
outstanding
14,438
14,274
Adjusted net income and diluted EPS are defined as net income as
reported, adjusted for unusual non-recurring items. Adjusted net
income and diluted EPS are not a measure determined in accordance
with generally accepted accounting principles in the United States,
commonly known as GAAP, and may not be comparable to the measure as
used by other companies. Nevertheless, the Company believes that
providing non-GAAP information, such as adjusted net income and
diluted EPS are important for investors and other readers of the
Company’s financial statements and assists in understanding the
comparison of the current quarter’s and current year’s net income
and diluted EPS to the historical periods’ net income and diluted
EPS.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20210505006098/en/
Investor Contact: Deborah K. Pawlowski Kei Advisors LLC
Phone: 716-843-3908 Email: dpawlowski@keiadvisors.com
Allied Motion Technologies (NASDAQ:AMOT)
Historical Stock Chart
From Feb 2024 to Mar 2024
Allied Motion Technologies (NASDAQ:AMOT)
Historical Stock Chart
From Mar 2023 to Mar 2024