[August 13, 2014] |
|
Allied Motion Reports Record Results for the Quarter Ended June 30, 2014
AMHERST, N.Y. --(Business Wire)--
Allied Motion Technologies Inc. (NASDAQ:AMOT) today announced net
income increased 229% to $2,693,000 or $0.29 per diluted share for the
quarter ended June 30, 2014 compared to $819,000 or $0.09 per diluted
share for the quarter ended June 30, 2013. Revenues for the quarter
increased 145% to $62,069,000 compared to $25,352,000 last year with
sales to U.S. customers up 191% and foreign sales up 91%. Cash at June
30, 2014 increased to $10,988,000 compared to $10,171,000 at December
31, 2013.
Bookings for the quarter ended June 30, 2014 were $63.5 million compared
to $23.5 million for the first quarter of 2013. Backlog as of June 30,
2014 was $80.8 million compared to $26.9 million as of June 30, 2013, a
201% increase over the prior year.
"We are very pleased with the record results for the second quarter 2014
as they continue to validate our previous comments that we expect our
revenues for 2014 to more than double relative to Allied's 2013
pre-acquisition revenues and for the Globe acquisition to be accretive
to earnings," commented Dick Warzala, Chairman and CEO of Allied Motion.
"When comparing the pro forma results of Allied and Globe for the six
months ended June 30, 2013 to the actual results of Allied and Globe for
the same period of 2014, our revenues increased from a pro forma of
$104.1M in 2013 to $122.5M in 2014 and our earnings per share increased
from a pro forma of $0.43/share in 2013 to $0.53/share in 2014. Also, on
a year to date basis, we experienced growth in our served markets of
Medical, Vehicle and Aerospace and Defense, while our Industrial and
Electronics markets were flat. The Allied/Globe integration process, in
which we have focused primarily on leveraging growth opportunities for
the combined entity, is proceeding well. In September of 2014, we will
take the process to the next level when we update our long term strategy
and establish the goals and objectives for our company for the next
three to five years. While we consider 2014 to be a transformative year
for Allied Motion, our long term success will be further enhanced by
leveraging the capabilities of both companies 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 six months ended June 30, 2014, the Company achieved net
income of $4,841,000 or $.53 per diluted share compared to net income of
$1,779,000 or $.20 per diluted share for the same six months last year.
Revenues increased 143% to $122,504,000 compared to $50,495,000 last
year with sales to U.S. customers up 195% and foreign sales up 84%. Of
the total 143% increase in sales, 142% is due to an increase in sales
volume, and 1% was due to the dollar weakening against the Euro.
Bookings for the first six months this year were $127.9 million compared
to $44.4 million for the same six months last year or an increase of
188%.
The pro forma earnings per share information included in this press
release 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 August 14,
2014 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
|
|
For the six months ended
|
|
|
June 30,
|
|
June 30,
|
HIGHLIGHTS OF OPERATING RESULTS
|
|
2014
|
|
2013
|
|
2014
|
|
2013
|
Revenues
|
|
$
|
62,069
|
|
|
$
|
25,352
|
|
|
$
|
122,504
|
|
|
$
|
50,495
|
|
Cost of goods sold
|
|
|
43,501
|
|
|
|
17,817
|
|
|
|
86,844
|
|
|
|
35,437
|
|
Gross margin
|
|
|
18,568
|
|
|
|
7,535
|
|
|
|
35,660
|
|
|
|
15,058
|
|
Selling expenses
|
|
|
2,232
|
|
|
|
1,214
|
|
|
|
4,342
|
|
|
|
2,507
|
|
General and administrative expenses
|
|
|
6,709
|
|
|
|
3,514
|
|
|
|
12,925
|
|
|
|
6,456
|
|
Engineering and development expenses
|
|
|
3,472
|
|
|
|
1,658
|
|
|
|
6,989
|
|
|
|
3,405
|
|
Amortization of intangible assets
|
|
|
670
|
|
|
|
85
|
|
|
|
1,348
|
|
|
|
169
|
|
Total Operating Expenses
|
|
|
13,083
|
|
|
|
6,471
|
|
|
|
25,604
|
|
|
|
12,537
|
|
Other expense (income)
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
1,649
|
|
|
|
8
|
|
|
|
3,287
|
|
|
|
17
|
|
Other expense (income), net
|
|
|
53
|
|
|
|
(132
|
)
|
|
|
(299
|
)
|
|
|
(96
|
)
|
Income before income taxes
|
|
|
3,783
|
|
|
|
1,188
|
|
|
|
7,068
|
|
|
|
2,600
|
|
Provision for income taxes
|
|
|
(1,090
|
)
|
|
|
(369
|
)
|
|
|
(2,227
|
)
|
|
|
(821
|
)
|
Net income
|
|
$
|
2,693
|
|
|
$
|
819
|
|
|
$
|
4,841
|
|
|
$
|
1,779
|
|
|
|
|
|
|
|
|
|
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PER SHARE AMOUNTS:
|
|
|
|
|
|
|
|
|
Diluted income per share
|
|
$
|
0.29
|
|
|
$
|
0.09
|
|
|
$
|
0.53
|
|
|
$
|
0.20
|
|
Diluted weighted average common shares
|
|
|
9,152
|
|
|
|
8,806
|
|
|
|
9,136
|
|
|
|
8,766
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30,
|
|
December 31,
|
CONDENSED BALANCE SHEETS
|
|
2014
|
|
2013
|
Assets
|
|
|
|
|
Current Assets:
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
10,988
|
|
$
|
10,171
|
Trade receivables, net
|
|
|
30,997
|
|
|
27,123
|
Inventories, net
|
|
|
25,473
|
|
|
24,430
|
Other current assets
|
|
|
3,265
|
|
|
5,563
|
Total Current Assets
|
|
|
70,723
|
|
|
67,287
|
Property, plant and equipment, net
|
|
|
37,558
|
|
|
40,111
|
Deferred income taxes
|
|
|
4,450
|
|
|
3,246
|
Intangible assets, net
|
|
|
33,856
|
|
|
35,222
|
Goodwill
|
|
|
20,543
|
|
|
20,233
|
Other long-term assets, net
|
|
|
4,271
|
|
|
4,878
|
Total Assets
|
|
$
|
171,401
|
|
$
|
170,977
|
|
|
|
|
|
Liabilities and Stockholders' Equity
|
|
|
|
|
Current Liabilities:
|
|
|
|
|
Debt obligations
|
|
$
|
12,043
|
|
$
|
14,145
|
Accounts payable
|
|
|
16,590
|
|
|
15,478
|
Accrued Liabilities
|
|
|
13,326
|
|
|
12,627
|
Total Current Liabilities
|
|
|
41,959
|
|
|
42,250
|
Long-term debt
|
|
|
70,500
|
|
|
73,500
|
Deferred Income Taxes
|
|
|
1,475
|
|
|
2,327
|
Other long-term liabilities
|
|
|
4,693
|
|
|
4,897
|
Total Liabilities
|
|
|
118,627
|
|
|
122,974
|
Stockholders' Equity
|
|
|
52,774
|
|
|
48,003
|
Total Liabilities and Stockholders' Equity
|
|
$
|
171,401
|
|
$
|
170,977
|
|
|
|
|
|
|
|
|
|
|
For the six months ended
|
|
|
June 30,
|
CONDENSED STATEMENTS OF CASH FLOWS
|
|
2014
|
|
2013
|
Cash flows from operating activities:
|
|
|
|
|
Net income
|
|
$
|
4,841
|
|
|
$
|
1,779
|
|
Depreciation and amortization
|
|
|
3,481
|
|
|
|
830
|
|
Other
|
|
|
2,808
|
|
|
|
260
|
|
Changes in working capital
|
|
|
(4,772
|
)
|
|
|
(128
|
)
|
Net cash provided by operating activities
|
|
|
6,358
|
|
|
|
2,741
|
|
|
|
|
|
|
Cash flows from investing activities:
|
|
|
|
|
Proceeds from working capital adjustment and other
|
|
|
|
|
acquisition adjustments
|
|
|
1,399
|
|
|
|
-
|
|
Purchase of property and equipment
|
|
|
(1,571
|
)
|
|
|
(1,170
|
)
|
Net cash used in investing activities
|
|
|
(172
|
)
|
|
|
(1,170
|
)
|
|
|
|
|
|
Cash flows from financing activities:
|
|
|
|
|
Borrowings (repayments) on lines-of-credit, net
|
|
|
(2,591
|
)
|
|
|
160
|
|
Principal payments of long-term debt
|
|
|
(2,500
|
)
|
|
|
-
|
|
Dividends paid to stockholders
|
|
|
(499
|
)
|
|
|
(422
|
)
|
Stock transactions under employee benefit stock plans
|
|
|
304
|
|
|
|
414
|
|
Net cash (used in) provided by financing activities
|
|
|
(5,286
|
)
|
|
|
152
|
|
|
|
|
|
|
Effect of foreign exchange rate changes on cash
|
|
|
(83
|
)
|
|
|
(195
|
)
|
Net decrease in cash and cash equivalents
|
|
|
817
|
|
|
|
1,528
|
|
Cash and cash equivalents at beginning of period
|
|
|
10,171
|
|
|
|
9,728
|
|
Cash and cash equivalents at end of period
|
|
$
|
10,988
|
|
|
$
|
11,256
|
|
|
|
|
|
|
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