Allied Motion Technologies Inc. (NASDAQ:AMOT) today announced net
income increased 266% to $4,904,000 or $0.53 per diluted share for the
quarter ended December 31, 2014 compared to $1,341,000 or $0.15 per
diluted share for the quarter ended December 31, 2013. Revenues for the
quarter increased 23% to $61,898,000 compared to $50,131,000 last year
with sales to U.S. customers up 31% and foreign sales up 11%. Bookings
for the quarter ended December 31, 2014 were $56.9 million compared to
$51.7 million for the fourth quarter of 2013 or an increase of 10%.
Backlog as of December 31, 2014 was $75.1 million compared to $75.6
million as of December 31, 2013, a decrease of 0.7% over the prior year.
Debt net of cash at December 31, 2014 decreased to $61.7 million
compared to $77.5 million at December 31, 2013 (including restricted
cash).
“The year 2014 was truly transformative for Allied Motion and a year of
record performance with sales nearly doubling, net income up 251%,
diluted EPS up 236% and EBITDA up 219% over the prior year. As per the
plan, Globe Motors and the core Allied Companies concentrated on growth
synergies while allowing the operations to continue functioning with
limited structural changes being made during the year,” commented Dick
Warzala, Chairman and CEO of Allied Motion. “When comparing the combined
actual results of Allied and Globe for the year ended December 31, 2014
to the pro forma results of Allied and Globe for the same period of
2013, our revenues increased to $249.7M from a proforma of $220.7M in
2013, net income increased to $13.9M from a proforma of $8.0M in 2013
and our earnings per diluted share increased to $1.51/share from a pro
forma of $0.88 /share in 2013. For the year, we experienced growth in
most of our served markets including Vehicle, Aerospace and Defense,
Medical and Industrial, while our Electronics market was down. In the
fourth quarter we began the process of aligning our combined team to
begin the implementation of our long term strategy in support of our new
growth and profitability objectives. 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.”
During the year ended December 31, 2014, the Company achieved net income
of $13,860,000 or $1.51 per diluted share compared to net income of
$3,953,000 or $.45 per diluted share for 2013. Revenues increased 99% to
$249,682,000 compared to $125,502,000 last year with sales to U.S.
customers up 130% and foreign sales up 58%. The overall 99% improvement
in sales was the result of a sales volume increase of 101%, offset by a
2% decrease due to the impact of foreign currencies, primarily the U.S.
Dollar strengthening vs. the Euro and the Swedish Krona.
Bookings for 2014 were $251.5 million compared to $121.1 million for
2013, or an increase of 108%.
The pro forma earnings information for 2013 included in this press
release was previously included in Note 2 of the Company’s Consolidated
Financial Statements for the year ended December 31, 2013 and assumes
that the acquisition of Globe Motors took place on January 1, 2013 and
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 March 12, 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.
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ALLIED MOTION TECHNOLOGIES INC.
FINANCIAL SUMMARY (IN THOUSANDS, EXCEPT PER SHARE DATA)
(UNAUDITED)
|
|
|
|
|
For the three months ended
|
|
|
For the twelve months ended
|
|
|
December 31,
|
|
|
December 31,
|
HIGHLIGHTS OF OPERATING RESULTS
|
|
|
2014
|
|
|
|
2013
|
|
|
|
|
2014
|
|
|
|
2013
|
|
Revenues
|
|
$
|
61,898
|
|
|
$
|
50,131
|
|
|
|
$
|
249,682
|
|
|
$
|
125,502
|
|
Cost of goods sold
|
|
|
43,744
|
|
|
|
35,905
|
|
|
|
|
176,256
|
|
|
|
88,980
|
|
Gross margin
|
|
|
18,154
|
|
|
|
14,226
|
|
|
|
|
73,426
|
|
|
|
36,522
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
Selling expenses
|
|
|
2,090
|
|
|
|
1,873
|
|
|
|
|
8,709
|
|
|
|
5,513
|
|
General and administrative expenses
|
|
|
4,875
|
|
|
|
5,628
|
|
|
|
|
23,972
|
|
|
|
15,195
|
|
Engineering and development expenses
|
|
|
3,688
|
|
|
|
2,808
|
|
|
|
|
13,881
|
|
|
|
7,931
|
|
Amortization of intangible assets
|
|
|
669
|
|
|
|
573
|
|
|
|
|
2,714
|
|
|
|
825
|
|
Total operating costs and expenses
|
|
|
11,322
|
|
|
|
10,882
|
|
|
|
|
49,276
|
|
|
|
29,464
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
1,540
|
|
|
|
1,415
|
|
|
|
|
6,435
|
|
|
|
1,445
|
|
Other (income) expense, net
|
|
|
(240
|
)
|
|
|
(110
|
)
|
|
|
|
(908
|
)
|
|
|
(168
|
)
|
Income before income taxes
|
|
|
5,532
|
|
|
|
2,039
|
|
|
|
|
18,623
|
|
|
|
5,781
|
|
Provision for income taxes
|
|
|
(628
|
)
|
|
|
(698
|
)
|
|
|
|
(4,763
|
)
|
|
|
(1,828
|
)
|
Net income
|
|
$
|
4,904
|
|
|
$
|
1,341
|
|
|
|
$
|
13,860
|
|
|
$
|
3,953
|
|
|
|
|
|
|
|
|
|
|
|
PER SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
|
Diluted earnings per share
|
|
$
|
0.53
|
|
|
$
|
0.15
|
|
|
|
$
|
1.51
|
|
|
$
|
0.45
|
|
Diluted weighted average common shares
|
|
|
9,229
|
|
|
|
9,033
|
|
|
|
|
9,165
|
|
|
|
8,840
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
|
|
|
December 31,
|
CONDENSED BALANCE SHEETS
|
|
2014
|
|
|
2013
|
Assets
|
|
|
|
|
|
Current Assets:
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
13,113
|
|
|
$
|
8,371
|
Restricted cash
|
|
|
-
|
|
|
|
1,800
|
Trade receivables, net
|
|
|
27,745
|
|
|
|
27,123
|
Inventories, net
|
|
|
25,371
|
|
|
|
24,430
|
Other current assets
|
|
|
4,555
|
|
|
|
5,563
|
Total Current Assets
|
|
|
70,784
|
|
|
|
67,287
|
Property, plant and equipment, net
|
|
|
37,041
|
|
|
|
40,111
|
Deferred income taxes
|
|
|
2,723
|
|
|
|
3,246
|
Intangible assets, net
|
|
|
32,791
|
|
|
|
35,222
|
Goodwill
|
|
|
18,303
|
|
|
|
20,233
|
Other long-term assets, net
|
|
|
3,998
|
|
|
|
4,878
|
Total Assets
|
|
$
|
165,640
|
|
|
$
|
170,977
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
|
Debt obligations
|
|
$
|
7,723
|
|
|
$
|
14,145
|
Accounts payable
|
|
|
15,510
|
|
|
|
15,478
|
Accrued liabilities
|
|
|
12,723
|
|
|
|
12,627
|
Total Current Liabilities
|
|
|
35,956
|
|
|
|
42,250
|
Long-term debt
|
|
|
67,125
|
|
|
|
73,500
|
Deferred income taxes
|
|
|
1,299
|
|
|
|
2,327
|
Other long-term liabilities
|
|
|
5,309
|
|
|
|
4,897
|
Total Liabilities
|
|
|
109,689
|
|
|
|
122,974
|
Stockholders’ Equity
|
|
|
55,951
|
|
|
|
48,003
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
165,640
|
|
|
$
|
170,977
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the twelve months ended
|
|
|
December 31,
|
CONDENSED STATEMENTS OF CASH FLOWS
|
|
|
2014
|
|
|
|
|
2013
|
|
Cash flows from operating activities:
|
|
|
|
|
|
Net income
|
|
$
|
13,860
|
|
|
|
$
|
3,953
|
|
Depreciation and amortization
|
|
|
7,267
|
|
|
|
|
2,913
|
|
Other
|
|
|
4,638
|
|
|
|
|
1,070
|
|
Changes in working capital
|
|
|
(5,469
|
)
|
|
|
|
2,843
|
|
Net cash provided by operating activities
|
|
|
20,296
|
|
|
|
|
10,779
|
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
|
Proceeds from working capital adjustment and
|
|
|
|
|
|
(consideration paid for acquisition, net of cash acquired)
|
|
|
1,397
|
|
|
|
|
(91,607
|
)
|
Purchase of property and equipment
|
|
|
(4,046
|
)
|
|
|
|
(3,087
|
)
|
Net cash used in investing activities
|
|
|
(2,649
|
)
|
|
|
|
(94,694
|
)
|
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
|
(Repayments) borrowings on lines-of-credit, net
|
|
|
(7,541
|
)
|
|
|
|
8,475
|
|
Principal payments of long-term debt
|
|
|
(5,250
|
)
|
|
|
|
(1,250
|
)
|
Proceeds from issuance of long-term debt
|
|
|
-
|
|
|
|
|
80,000
|
|
Change in restricted cash obligations
|
|
|
1,800
|
|
|
|
|
(1,800
|
)
|
Payment of debt issuance costs
|
|
|
-
|
|
|
|
|
(2,377
|
)
|
Dividends paid to stockholders
|
|
|
(963
|
)
|
|
|
|
(873
|
)
|
Stock transactions under employee benefit stock plans
|
|
|
344
|
|
|
|
|
434
|
|
Net cash (used in) provided by financing activities
|
|
|
(11,610
|
)
|
|
|
|
82,609
|
|
Effect of foreign exchange rate changes on cash
|
|
|
(1,295
|
)
|
|
|
|
(51
|
)
|
Net increase (decrease) in cash and cash equivalents
|
|
|
4,742
|
|
|
|
|
(1,357
|
)
|
Cash and cash equivalents at beginning of period
|
|
|
8,371
|
|
|
|
|
9,728
|
|
Cash and cash equivalents at end of period
|
|
$
|
13,113
|
|
|
|
$
|
8,371
|
|
|
|
|
|
|
|
|
|
|
|
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 year ended December 31, 2014
and 2013 is as follows (in thousands):
|
|
|
For the twelve months ended
|
|
|
|
December 31,
|
|
|
|
2014
|
|
2013
|
Net income
|
|
$
|
13,860
|
|
$
|
3,953
|
Interest expense
|
|
|
6,435
|
|
|
1,445
|
Provision for income tax
|
|
|
4,763
|
|
|
1,828
|
Depreciation and amortization
|
|
|
7,267
|
|
|
2,913
|
EBITDA
|
|
|
$
|
32,325
|
|
$
|
10,139
|
Copyright Business Wire 2015