Allied Motion Technologies Inc. (NASDAQ: AMOT) today announced
the results for the quarter ended September 30, 2013. Excluding
non-recurring items, the Company achieved adjusted net income for the
third quarter of 2013 of $1,239,000 ($.14 per diluted share) compared to
$1,321,000 ($.15 per diluted share) for the same period last year.
Including the one-time items, net income for the quarter ended September
30, 2013 was $833,000 or $.09 per diluted share compared to net income
of $1,321,000 or $.15 per diluted share in the same quarter of 2012.
Revenues for the quarter increased 2.3% to $24,876,000 compared to
$24,316,000 last year with foreign sales up 13.0% and sales in the U.S.
down 5.4%. Cash at September 30, 2013 increased to $11,654,000 compared
to $9,728,000 at December 31, 2012. The results for the quarter include
$596,000 ($406,000 net of tax) for new business development expenses for
the Globe Motors acquisition that was completed October 18, 2013.
Excluding non-recurring items, the company generated adjusted net income
for the nine months ended September 30, 2013 of $3,611,000 or $.41 per
diluted share, compared to $4,252,000 or $.49 per diluted share for the
same period of 2012. Including the one-time items, the Company achieved
net income of $2,612,000 or $.30 per diluted share compared to net
income of $4,296,000 or $.50 per diluted share for the same nine months
last year. The results for the nine months ended September 30, 2013
include $234,000 ($159,000 net of tax) of relocation expense to move our
corporate office and key employees from Denver, CO to Amherst, NY and
$1,235,000 ($840,000 net of tax) of new business development expenses in
conjunction with the acquisition of Globe Motors. Additionally, net
income for the nine months ended September 30, 2012 included $301,000
($222,000 net of tax) received as a concession payment from a landlord
for early termination of a building lease. In addition to the concession
payment, the results for the nine months ended September 30, 2012,
included a pretax charge of $238,000 ($178,000 net of tax) in the first
quarter of 2012. This charge was recorded to cover the expected costs of
replacing certain products in the field due to an incorrect electronic
component in a printed circuit board supplied by one of the Company’s
sub-contract suppliers. Revenues decreased 3.4% to $75,371,000 compared
to $77,999,000 last year with foreign sales up 4.7% and sales in the
U.S. down 9.6%. Of the total 3.4% decrease in sales, 4.5% is due to a
decrease in sales volume, partially offset by a 1.1% favorable currency
change with the dollar weakening against the Euro and the Swedish Krona.
Beginning in 2013, the Company no longer includes the full value of
blanket purchase orders when received from customers and only reports
them as bookings when they are actually released to production. To
ensure an accurate comparison, we will present bookings and backlog
throughout 2013 using our new method as well as presenting them in the
same manner as the prior year. Bookings for the quarter ended September
30, 2013 were $25.0 million. Using the prior year method, bookings would
have been $30.2 million for the third quarter 2013 compared to $20.2
million for the third quarter of 2012. Backlog as of September 30, 2013
was $27.5 million. Using the prior year method, backlog would have been
$37.6 million as of September 30, 2013 compared to $33.2 million as of
September 30, 2012, a 13% increase over the prior year. Bookings for the
nine months ended September 30, 2013 were $69.5 million. Using the prior
year method, bookings would have been $82.0 million compared to last
year’s bookings of $66.9 million, a 23% increase over the same period
last year.
“We believe our markets have stabilized as the third quarter 2013
results were in line with our expectations and provided us with a slight
revenue improvement when compared to the third quarter of 2012”,
commented Dick Warzala, President and CEO of Allied Motion. “Comparing
the third quarter of 2013 to the same quarter in 2012, our served
markets in Medical, Industrial, and Distribution were up, while Vehicle
and Aerospace and Defense were down and Electronics was flat. In this
quarter, we did incur significant new business development expenses in
conjunction with the acquisition of Globe Motors completed on October
18, 2013. In a separate release, we will be disclosing unaudited pro
forma financial information reflecting the Globe Motors acquisition for
the year ended December 31, 2012 and the nine months ended September 30,
2013. With our new acquisition, we have put ourselves in the position to
leverage the capabilities of both companies to create an increasing
number of new opportunities by designing 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 November 13,
2013 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 September 30,
|
|
For the Nine months Ended September 30,
|
HIGHLIGHTS OF OPERATING RESULTS
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
Revenues
|
|
$
|
24,876
|
|
|
$
|
24,316
|
|
|
$
|
75,371
|
|
|
$
|
77,999
|
|
Cost of products sold
|
|
|
17,638
|
|
|
|
17,217
|
|
|
|
53,075
|
|
|
|
55,112
|
|
Gross margin
|
|
|
7,238
|
|
|
|
7,099
|
|
|
|
22,296
|
|
|
|
22,887
|
|
Selling expenses
|
|
|
1,132
|
|
|
|
1,143
|
|
|
|
3,640
|
|
|
|
3,798
|
|
General and administrative expenses
|
|
|
2,516
|
|
|
|
2,343
|
|
|
|
8,098
|
|
|
|
8,197
|
|
Engineering and development expenses
|
|
|
1,718
|
|
|
|
1,454
|
|
|
|
5,123
|
|
|
|
4,570
|
|
Business development costs
|
|
|
596
|
|
|
|
--
|
|
|
|
1,235
|
|
|
|
--
|
|
Relocation costs
|
|
|
--
|
|
|
|
--
|
|
|
|
234
|
|
|
|
--
|
|
Amortization of intangible assets
|
|
|
83
|
|
|
|
126
|
|
|
|
252
|
|
|
|
466
|
|
Total Operating Expenses
|
|
|
6,045
|
|
|
|
5,066
|
|
|
|
18,582
|
|
|
|
17,031
|
|
Other (expense) income, net
|
|
|
(51
|
)
|
|
|
(91
|
)
|
|
|
28
|
|
|
|
218
|
|
Income before income taxes
|
|
|
1,142
|
|
|
|
1,942
|
|
|
|
3,742
|
|
|
|
6,074
|
|
Provision for income taxes
|
|
|
(309
|
)
|
|
|
(621
|
)
|
|
|
(1,130
|
)
|
|
|
(1,778
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
833
|
|
|
$
|
1,321
|
|
|
$
|
2,612
|
|
|
$
|
4,296
|
|
PER SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
Diluted income per share
|
|
$
|
0.09
|
|
|
$
|
0.15
|
|
|
$
|
0.30
|
|
|
$
|
0.50
|
|
Diluted weighted average common shares
|
|
|
8,807
|
|
|
|
8,673
|
|
|
|
8,778
|
|
|
|
8,637
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
CONDENSED BALANCE SHEETS
|
|
September 30,
2013
|
|
December 31,
2012
|
Assets
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
11,654
|
|
|
$
|
9,728
|
|
Trade receivables, net
|
|
|
13,429
|
|
|
|
10,806
|
|
Inventories, net
|
|
|
15,167
|
|
|
|
14,701
|
|
Other current assets
|
|
|
2,162
|
|
|
|
2,794
|
|
Total Current Assets
|
|
|
42,412
|
|
|
|
38,029
|
|
Property, plant and equipment, net
|
|
|
9,649
|
|
|
|
8,631
|
|
Deferred income taxes
|
|
|
4,115
|
|
|
|
4,103
|
|
Intangible assets, net
|
|
|
2,227
|
|
|
|
2,431
|
|
Other long-term assets, net
|
|
|
2,672
|
|
|
|
1,991
|
|
Goodwill
|
|
|
5,916
|
|
|
|
5,782
|
|
Total Assets
|
|
$
|
66,991
|
|
|
$
|
60,967
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Debt obligations
|
|
$
|
1,141
|
|
|
$
|
397
|
|
Accounts payable
|
|
|
7,628
|
|
|
|
5,748
|
|
Accrued Liabilities
|
|
|
5,485
|
|
|
|
5,926
|
|
Total Current Liabilities
|
|
|
14,254
|
|
|
|
12,071
|
|
Deferred Income Taxes
|
|
|
885
|
|
|
|
935
|
|
Other long-term liabilities
|
|
|
6,386
|
|
|
|
5,809
|
|
Total Liabilities
|
|
|
21,525
|
|
|
|
18,815
|
|
Stockholders’ Equity
|
|
|
45,466
|
|
|
|
42,152
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
66,991
|
|
|
$
|
60,967
|
|
|
|
|
|
|
|
|
|
For the Nine months ended September 30,
|
CONDENSED STATEMENTS OF CASH FLOWS
|
|
2013
|
|
2012
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
2,612
|
|
|
$
|
4,296
|
|
Depreciation and amortization
|
|
|
1,311
|
|
|
|
1,361
|
|
Other
|
|
|
227
|
|
|
|
1,138
|
|
Changes in working capital
|
|
|
(706
|
)
|
|
|
(6,148
|
)
|
Net cash provided by operating activities
|
|
|
3,444
|
|
|
|
647
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Consideration paid for acquisition
|
|
|
--
|
|
|
|
(1,350
|
)
|
Purchase of property and equipment
|
|
|
(2,055
|
)
|
|
|
(2,021
|
)
|
Net cash used in investing activities
|
|
|
(2,055
|
)
|
|
|
(3,371
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings on line of credit
|
|
|
724
|
|
|
|
--
|
|
Stock transactions under company stock plans
|
|
|
414
|
|
|
|
355
|
|
Dividends paid
|
|
|
(646
|
)
|
|
|
(629
|
)
|
Net cash provided by (used in) financing activities
|
|
|
492
|
|
|
|
(274
|
)
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash
|
|
|
45
|
|
|
|
100
|
|
Net increase (decrease) in cash and cash equivalents
|
|
|
1,926
|
|
|
|
(2,898
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
9,728
|
|
|
|
9,155
|
|
Cash and cash equivalents at September 30
|
|
$
|
11,654
|
|
|
$
|
6,257
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of Non-GAAP Financial Measures
This press release contains financial information determined by methods
other than in accordance with U.S. Generally Accepted Accounting
Principles, (“GAAP”). Allied Motion’s management uses the non-GAAP
measure “adjusted net income” in their analysis of the Company’s
performance. This measure, as used by Allied Motion in past quarters
adjusts net income determined in accordance with GAAP to reflect changes
in financial results associated with the highlighted charges and income
items. Management believes the presentation of this financial measure
reflecting these non-GAAP adjustments provides important supplemental
information in evaluating the operating results of the Company as
distinct from results that include items that are not indicative of
ongoing operating results; in particular, those charges and credits that
are not directly related to operating unit performance, and that are not
a helpful measure of the performance of our underlying business
particularly in light of their unpredictable nature. This non-GAAP
disclosure has limitations as an analytical tool, should not be viewed
as a substitute for net earnings determined in accordance with GAAP, and
should not be considered in isolation or as a substitute for analysis of
the Company’s results as reported under GAAP, nor is it necessarily
comparable to non-GAAP performance measures that may be presented by
other companies. Management believes that this non-GAAP supplemental
information will be helpful in understanding the Company’s ongoing
operating results. This supplemental presentation should not be
construed as an inference that the Company’s future results will be
unaffected by similar adjustments to net income determined in accordance
with GAAP.
Included below is a reconciliation of non-GAAP adjusted financial
measures to reported amounts. Non-GAAP adjusted net income is calculated
excluding relocation and other highlighted charges and credits.
|
|
|
|
|
|
|
Quarter Ended September 30,
|
|
Nine months ended September 30,
|
Net Income Reconciliation (in thousands)
|
|
2013
|
|
2012
|
|
2013
|
|
2012
|
As reported net income
|
|
$
|
833
|
|
$
|
1,321
|
|
$
|
2,612
|
|
$
|
4,296
|
|
Non-GAAP adjustments, net of tax
|
|
|
|
|
|
|
|
|
Relocation costs
|
|
|
--
|
|
|
--
|
|
|
159
|
|
|
--
|
|
Business development costs
|
|
|
406
|
|
|
--
|
|
|
840
|
|
|
--
|
|
Concession payment from landlord
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
(222
|
)
|
Non-recurring replacement costs
|
|
|
--
|
|
|
--
|
|
|
--
|
|
|
178
|
|
Non-GAAP adjusted net income
|
|
$
|
1,239
|
|
$
|
1,321
|
|
$
|
3,611
|
|
$
|
4,252
|
|
|
|
|
|
|
|
|
|
|
Per Share Amounts
|
|
|
|
|
|
|
|
|
Non-GAAP adjusted net income per share (diluted)
|
|
$
|
0.14
|
|
$
|
0.15
|
|
$
|
0.41
|
|
$
|
0.49
|
|
Diluted weighted average common shares
|
|
|
8,807
|
|
|
8,673
|
|
|
8,778
|
|
|
8,637
|
|
|
|
|
|
|
|
|
|
|
|
|
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Copyright Business Wire 2013