- Revenue for the year increased $58.6 million, or 23%, driven
primarily by 15% organic growth
- 2018 net income nearly doubled to a record $15.9 million;
Diluted earnings per share increased $0.83 to $1.70
- Fourth quarter revenue grew 13% to $73.9 million; Organic growth
was 5% excluding FX
- Backlog grew 14% sequentially to a record level of $132.0 million
- Enhanced market and technology capabilities with TCI, LLC
acquisition
AMHERST, N.Y.--(BUSINESS WIRE)--Mar. 13, 2019--
Allied
Motion Technologies Inc.(Nasdaq:AMOT) (“Company”), a
designer and manufacturer that sells precision and specialty controlled
motion products and solutions to the global market, today reported
financial results for its fourth quarter and full year ended December
31, 2018. Results include the acquisition of Maval Industries (“Maval)
in January 2018 and a partial month of operations of the TCI, LLC
(“TCI”) acquisition that was completed December 6, 2018.
“The success of our One Allied approach to drive organic sales
was evident during the year as we achieved double-digit organic growth.
This, combined with the successful execution of our acquisition
strategy, resulted in record annual revenue and net income,” commented
Dick Warzala, Chairman and CEO. “We are winning new projects and
customers and gaining market share in many of our served markets. We
believe that the successful execution of our strategic plan, our prudent
use of capital and the consistent application and utilization of our
Allied Systematic Tools (AST) kit to drive continuous improvements, has
enabled our success. Moving forward, we plan to continue this same
approach to managing our business and to drive our results in the
future.”
Mr. Warzala added, “Fourth quarter results, while solid, were impacted
in December by a couple of our markets that slowed or shifted order
timing to manage inventory levels around year-end. That said, we believe
the corrections were completed and our business will return to levels we
experienced earlier in 2018.
“We have been particularly pleased with our recent acquisition of TCI as
it further broadened our offerings and strengthened our position as a
global leader of application-focused controlled motion solutions. The
integration is on track and we believe there is excellent long-term
growth opportunity as we leverage the technology, expanded channels and
extended footprint of the combined businesses.”
Fourth Quarter 2018 Results (Narrative compares with
prior-year period unless otherwise noted)
Revenue of $74.0 million was up $8.6 million, or 13%. Organic growth was
approximately 5%, excluding the $1.2 million unfavorable impact of
changes in foreign currency exchange (“FX”). Sales to U.S. customers
were 52% of total sales for the quarter compared with 49% for the fourth
quarter last year, with the balance of sales to customers primarily in
Europe, Canada and Asia.
Gross margin decreased 220 basis points to 29.2% driven primarily by
product mix across the organization. Incremental gross profit from TCI
partially offset the impact of the expected lower margin profile of
Maval.
Operating costs and expenses outpaced the rate of revenue growth in the
quarter. These costs included additional engineering personnel to
support the Company’s growth, $413 thousand of business development
expense and incremental intangible asset amortization of $140 thousand
related to the acquisition. As a result, operating income decreased $1.8
million, or 35%, and operating margin contracted to 4.5%.
Net income was $2.6 million, or $0.28 per diluted share, compared with
$95 thousand, or $0.01 per diluted share. The prior-year period was
negatively impacted by the transition tax on the deemed repatriation of
foreign earnings resulting from the U.S. Tax Cuts and Jobs Act (“the Tax
Act”).
Earnings before interest, taxes, depreciation, amortization, stock
compensation expense and business development costs (“Adjusted EBITDA”)
was $7.8 million, or 10.5% of sales, in the 2018 fourth quarter. 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.
Full Year 2018 Results (Narrative compares with prior-year
period unless otherwise noted)
Strong demand from all the Company’s served markets resulted in record
revenue of $310.6 million, up $58.6 million, or 23%. Organic growth was
up 15% in 2018. Sales to U.S. customers were 53% of total sales,
consistent with 2017, with the balance of sales to customers primarily
in Europe, Canada and Asia. The impact of FX fluctuations had a
favorable $4.3 million impact on 2018 revenue.
Gross profit increased 21% to $91.4 million, though gross margin
contracted 60 basis points to 29.4%, reflecting the expected lower
margin profile of Maval.
Operating costs and expenses were up $11.3 million to $68.2 million;
however, as a percentage of revenue, operating expenses were down 70
basis points to 21.9%. General and administrative expense as a percent
of revenue increased 40 basis points to 10.3% primarily due to higher
incentive compensation and additional personnel to support the Company’s
growth. Engineering and development (“E&D”) was $19.9 million, up 13.5%.
As a percentage of revenue, E&D decreased 60 basis points to 6.4%.
Operating income was up 23.5%, or $4.4 million, to $23.2 million. Higher
operating leverage offset the gross margin pressure and $762 thousand of
business development expenses resulting in operating margin of 7.5%,
unchanged from 2017.
Interest expense increased $227 thousand to $2.7 million as the Company
took on additional debt to fund acquisitions.
The effective tax rate for the year was down to 23.0% compared with
50.2%, due primarily to the Tax Act. The higher rate in the prior-year
period also included a transition tax on the deemed repatriation of
foreign earnings. Net income nearly doubled to $15.9 million, or $1.70
per diluted share, in 2018. The Company anticipates its effective tax
rate for 2019 to range from 25% to 28%.
Adjusted EBITDA was $38.4 million, up $7.2 million, or 23%. As a percent
of sales, Adjusted EBITDA was 12.4%, up 10 basis points. See the
attached table for a description of non-GAAP financial measures and
reconciliation table for Adjusted EBITDA.
Balance Sheet and Cash Flow Review
Allied Motion acquired TCI on December 6, 2018 for $64.1 million. The
acquisition was funded with existing cash plus borrowings under the
Company’s revolving credit facility. Cash and cash equivalents were $8.7
million compared with $15.6 million at the end of 2017. Total debt was
$122.5 million at the end of 2018, up $69.4 million from year-end 2017
largely due to acquisitions. Debt, net of cash, was $113.8 million, or
52.8% of net debt to capitalization, up from 30.1% at the end of 2017.
Capital expenditures were $14.3 million and included investments for
productivity improvement and growth initiatives. The Company expects to
invest $15 million to $18 million in capital expenditures during fiscal
2019, which reflects additional support for the significant project wins
that will begin ramping by year-end, the next generation of off-road
capabilities and incremental investments for TCI.
|
Orders and Backlog Summary ($ in thousands)
|
|
|
|
|
|
|
Q4 2018 |
|
|
Q3 2018 |
|
|
Q2 2018 |
|
|
Q1 2018 |
|
|
Q4 2017 |
|
Orders
|
|
|
|
$
|
84,911
|
|
|
$
|
85,081
|
|
|
$
|
86,238
|
|
|
$
|
80,699
|
|
|
$
|
72,764
|
|
Backlog
|
|
|
|
$
|
131,997
|
|
|
$
|
115,713
|
|
|
$
|
111,170
|
|
|
$
|
107,321
|
|
|
$
|
100,708
|
The year-over-year increase in orders and backlog reflect recent
acquisitions and strength across all the Company’s served markets. The
impact on orders from FX fluctuations for the fourth quarter was
unfavorable $1.1 million year-over-year.
Backlog was up 31% over the prior-year period and increased 14% since
the sequential third quarter of 2018. Included in backlog was $5.6
million attributable to the acquisition of TCI, which is more of a
book-to-bill type business. The time to convert the majority of backlog
to sales is approximately three to six months.Not
included in the backlog are previously announced new business awards of
$225.0 million that are expected to begin shipping in late 2019.
Conference Call and Webcast
The Company will host a conference call and webcast on Thursday, March
14, 2019 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, participants can call (201) 689-8263. In
addition, the call will be webcast live and may be found at: http://www.alliedmotion.com/investors
A telephonic replay will be available from 1:00 pm ET on the day of the
call through Thursday, March 21, 2019. To listen to the archived call,
dial (412) 317-6671 and enter replay pin number 13686222 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. The Company is
headquartered in Amherst, NY, has global operations and sells into
markets across the United States, Canada, South America, Europe and Asia.
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 http://www.alliedmotion.com/.
Safe Harbor Statement
The statements in this news release and in the Company’s March 14, 2019
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 to differ
materially from the expected results described in the forward-looking
statements. The risks and uncertainties include those associated with:
the domestic and foreign general business and economic conditions in the
markets we serve, including political and currency risks and adverse
changes in local legal and regulatory environments; the introduction of
new technologies and the impact of competitive products; the ability to
protect the Company’s intellectual property; our ability to sustain,
manage or forecast its growth and product acceptance to accurately align
capacity with demand; the continued success of our customers and the
ability to realize the full amounts reflected in our order backlog as
revenue; the loss of significant customers or the enforceability of the
Company’s contracts in connection with a merger, acquisition,
disposition, bankruptcy, or otherwise; our ability to meet the technical
specifications of our customers; the performance of subcontractors or
suppliers and the continued availability of parts and components;
changes in government regulations; the availability of financing and our
access to capital markets, borrowings, or financial transactions to
hedge certain risks; the ability to attract and retain qualified
personnel who can design new applications and products for the motion
industry; the ability to implement our corporate strategies designed for
growth and improvement in profits including to identify and consummate
favorable acquisitions to support external growth and the development of
new technologies; the ability to successfully integrate an acquired
business into our business model without substantial costs, delays, or
problems; our ability to control costs, including the establishment and
operation of low cost region manufacturing and component sourcing
capabilities; and other risks and uncertainties detailed from time to
time in the Company’s SEC filings. 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. 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.
CONSOLIDATED
STATEMENTS OF INCOME
(In thousands, except per
share data)
(Unaudited)
|
|
|
|
|
|
For the three months ended |
|
For the year ended |
|
|
December 31, |
|
December 31, |
|
|
2018 |
|
2017 |
|
2018 |
|
2017 |
|
Revenue
|
|
|
$
|
73,962
|
|
|
$
|
65,355
|
|
|
$
|
310,611
|
|
|
$
|
252,012
|
|
|
Cost of goods sold
|
|
|
|
52,392
|
|
|
|
44,804
|
|
|
|
219,208
|
|
|
|
176,333
|
|
|
Gross profit
|
|
|
|
21,570
|
|
|
|
20,551
|
|
|
|
91,403
|
|
|
|
75,679
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
|
3,405
|
|
|
|
2,844
|
|
|
|
11,807
|
|
|
|
10,979
|
|
|
General and administrative
|
|
|
|
8,068
|
|
|
|
6,941
|
|
|
|
32,037
|
|
|
|
24,926
|
|
|
Engineering and development
|
|
|
|
5,303
|
|
|
|
4,558
|
|
|
|
19,913
|
|
|
|
17,542
|
|
|
Business development
|
|
|
|
413
|
|
|
|
213
|
|
|
|
762
|
|
|
|
213
|
|
|
Amortization of intangible assets
|
|
|
|
1,021
|
|
|
|
814
|
|
|
|
3,655
|
|
|
|
3,219
|
|
|
Total operating costs and expenses
|
|
|
|
18,210
|
|
|
|
15,370
|
|
|
|
68,174
|
|
|
|
56,879
|
|
|
Operating income
|
|
|
|
3,360
|
|
|
|
5,181
|
|
|
|
23,229
|
|
|
|
18,800
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
|
862
|
|
|
|
677
|
|
|
|
2,701
|
|
|
|
2,474
|
|
|
Other (income) expense, net
|
|
|
|
(35
|
)
|
|
|
55
|
|
|
|
(153
|
)
|
|
|
190
|
|
|
Total other expense, net
|
|
|
|
827
|
|
|
|
732
|
|
|
|
2,548
|
|
|
|
2,664
|
|
|
Income before income taxes
|
|
|
|
2,533
|
|
|
|
4,449
|
|
|
|
20,681
|
|
|
|
16,136
|
|
|
Provision for income taxes
|
|
|
|
103
|
|
|
|
(4,354
|
)
|
|
|
(4,756
|
)
|
|
|
(8,100
|
)
|
|
Net income
|
|
|
$
|
2,636
|
|
|
$
|
95
|
|
|
$
|
15,925
|
|
|
$
|
8,036
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
$
|
0.28
|
|
|
$
|
0.01
|
|
|
$
|
1.72
|
|
|
$
|
0.88
|
|
|
Basic weighted average common shares
|
|
|
|
9,306
|
|
|
|
9,198
|
|
|
|
9,265
|
|
|
|
9,153
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
|
$
|
0.28
|
|
|
$
|
0.01
|
|
|
$
|
1.70
|
|
|
$
|
0.87
|
|
|
Diluted weighted average common shares
|
|
|
|
9,383
|
|
|
|
9,303
|
|
|
|
9,370
|
|
|
|
9,275
|
|
|
Net Income
|
|
|
$
|
2,636
|
|
|
$
|
95
|
|
|
$
|
15,925
|
|
|
$
|
8 036
|
|
|
Foreign currency translation adjustment
|
|
|
|
(957
|
)
|
|
|
706
|
|
|
|
(3,109
|
)
|
|
|
6,314
|
|
|
Change in accumulated income (loss)
|
|
|
|
|
|
|
|
|
|
|
on derivatives (1)
|
|
|
|
(750
|
)
|
|
|
404
|
|
|
|
238
|
|
|
|
226
|
|
|
Pension adjustments (2)
|
|
|
|
(61
|
)
|
|
|
123
|
|
|
|
(61
|
)
|
|
|
(123
|
)
|
|
Comprehensive income
|
|
|
$
|
868
|
|
|
$
|
1,082
|
|
|
$
|
12,993
|
|
|
$
|
14,453
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1)
|
|
Net of tax of $132 for the period ended December 31, 2018
|
|
|
|
(2)
|
|
Net of tax of $2 and ($21) for the periods ended December 31, 2018
and 2017
|
|
|
|
|
|
|
|
|
|
ALLIED MOTION TECHNOLOGIES INC.
CONSOLIDATED
BALANCE SHEETS
(In thousands, except per share data)
|
|
|
|
|
|
|
December 31,
2018
|
|
December 31,
2017
|
| Assets |
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
|
$ 8,673
|
|
|
$
|
15,590
|
|
|
Trade receivables, net of allowance for doubtful accounts of $530 and
|
|
|
|
|
|
|
$341 at December 31, 2018 and December 31, 2017, respectively
|
|
|
43,247
|
|
|
|
31,822
|
|
|
Inventories
|
|
|
54,971
|
|
|
|
32,568
|
|
|
Prepaid expenses and other assets
|
|
|
4,003
|
|
|
|
3,460
|
|
|
Total current assets
|
|
|
110,894
|
|
|
|
83,440
|
|
|
Property, plant and equipment, net
|
|
|
48,035
|
|
|
|
38,403
|
|
|
Deferred income taxes
|
|
|
341
|
|
|
|
14
|
|
|
Intangible assets, net
|
|
|
68,354
|
|
|
|
32,073
|
|
|
Goodwill
|
|
|
52,639
|
|
|
|
29,531
|
|
|
Other long term assets
|
|
|
5,038
|
|
|
|
4,461
|
|
|
Total Assets
|
|
|
$ 285,301
|
|
|
$
|
187,922
|
|
| Liabilities and Stockholders’ Equity |
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
Debt obligations
|
|
|
-
|
|
|
|
461
|
|
|
Accounts payable
|
|
|
25,867
|
|
|
|
15,351
|
|
|
Accrued liabilities
|
|
|
18,722
|
|
|
|
14,270
|
|
|
Total current liabilities
|
|
|
44,589
|
|
|
|
30,082
|
|
|
Long-term debt
|
|
|
122,516
|
|
|
|
52,694
|
|
|
Deferred income taxes
|
|
|
3,860
|
|
|
|
3,609
|
|
|
Pension and post-retirement obligations
|
|
|
4,293
|
|
|
|
4,667
|
|
|
Other long term liabilities
|
|
|
8,230
|
|
|
|
9,523
|
|
|
Total liabilities
|
|
|
183,488
|
|
|
|
100,575
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
Common stock, no par value, authorized 50,000 shares; 9,485 and
|
|
|
|
|
|
|
9,427 shares issued and outstanding at December 31, 2018 and
December
31, 2017, respectively
|
|
|
33,613
|
|
|
|
31,051
|
|
|
Preferred stock, par value $1.00 per share, authorized 5,000 shares;
|
|
|
|
|
|
|
no shares issued or outstanding
|
|
|
-
|
|
|
|
-
|
|
|
Retained earnings
|
|
|
76,718
|
|
|
|
61,882
|
|
|
Accumulated other comprehensive loss
|
|
|
(8,518
|
)
|
|
|
(5,586
|
)
|
|
Total stockholders’ equity
|
|
|
101,813
|
|
|
|
87,347
|
|
|
Total Liabilities and Stockholders’ Equity
|
|
|
$ 285,301
|
|
|
$
|
187,922
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIED MOTION TECHNOLOGIES INC.
CONSOLIDATED
STATEMENTS OF CASH FLOWS
(In thousands)
|
|
|
|
|
|
For the year ended
December 31,
|
|
|
2018 |
|
2017 |
| Cash Flows From Operating Activities: |
|
|
|
|
|
|
Net income
|
|
|
$
|
15,925
|
|
|
$
|
8,036
|
|
|
Adjustments to reconcile net income to net cash provided by
operating activities:
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
|
11,576
|
|
|
|
10,274
|
|
|
Deferred income taxes
|
|
|
|
(76
|
)
|
|
|
3,713
|
|
|
Loss on sale of assets
|
|
|
|
19
|
|
|
|
-
|
|
|
Provision for doubtful accounts
|
|
|
|
192
|
|
|
|
39
|
|
|
Provision for excess and obsolete inventory
|
|
|
|
682
|
|
|
|
480
|
|
|
Provision for warranty
|
|
|
|
(13
|
)
|
|
|
234
|
|
|
Debt issue cost amortization recorded in interest expense
|
|
|
|
148
|
|
|
|
165
|
|
|
Restricted stock compensation
|
|
|
|
2,643
|
|
|
|
2,026
|
|
|
Other
|
|
|
|
57
|
|
|
|
(756
|
)
|
|
Changes in operating assets and liabilities, net of acquisitions:
|
|
|
|
|
|
|
Increase in trade receivables
|
|
|
|
(4,110
|
)
|
|
|
(4,051
|
)
|
|
(Increase) decrease in inventories
|
|
|
|
(17,327
|
)
|
|
|
18
|
|
|
Increase in prepaid expenses and other assets
|
|
|
|
(835
|
)
|
|
|
(328
|
)
|
|
Increase in accounts payable
|
|
|
|
6,533
|
|
|
|
1,277
|
|
|
Increase in accrued liabilities and other liabilities
|
|
|
|
2,038
|
|
|
|
4,280
|
|
|
Net cash provided by operating activities
|
|
|
|
17,452
|
|
|
|
25,407
|
|
|
|
|
|
|
|
| Cash Flows From Investing Activities: |
|
|
|
|
|
|
Purchase of property, plant and equipment
|
|
|
|
(14,333
|
)
|
|
|
(6,201
|
)
|
|
Consideration paid for acquisitions, net of cash acquired
|
|
|
|
(77,413
|
)
|
|
|
-
|
|
|
Net cash used in investing activities
|
|
|
|
(91,746
|
)
|
|
|
(6,201
|
)
|
|
|
|
|
|
|
| Cash Flows From Financing Activities: |
|
|
|
|
|
|
(Repayments) on lines-of-credit
|
|
|
|
(454
|
)
|
|
|
(518
|
)
|
|
Principal payments of long-term debt
|
|
|
|
(13,278
|
)
|
|
|
(18,389
|
)
|
|
Proceeds from issuance of long-term debt
|
|
|
|
83,163
|
|
|
|
-
|
|
|
Payment of debt issuance costs
|
|
|
|
(72
|
)
|
|
|
-
|
|
|
Issuance of restricted stock
|
|
|
|
1,076
|
|
|
|
-
|
|
|
Dividends paid to stockholders
|
|
|
|
(1,079
|
)
|
|
|
(959
|
)
|
|
Tax withholdings related to settlements of restricted stock
|
|
|
|
(1,579
|
)
|
|
|
(1,513
|
)
|
|
Stock transactions under employee benefit stock plans
|
|
|
|
-
|
|
|
|
1,213
|
|
|
Net cash provided by (used in) financing activities
|
|
|
|
67,777
|
|
|
|
(20,166
|
)
|
|
Effect of foreign exchange rate changes on cash
|
|
|
|
(400
|
)
|
|
|
1,067
|
|
|
Net (decrease) increase in cash and cash equivalents
|
|
|
|
(6,917
|
)
|
|
|
107
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
|
15,590
|
|
|
|
15,483
|
|
|
Cash and cash equivalents at end of period
|
|
|
|
8,673
|
|
|
|
15,590
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ALLIED MOTION TECHNOLOGIES INC.
|
|
Reconciliation of Non-GAAP Financial Measures
|
|
(In thousands)
|
|
|
In addition to reporting net income, a U.S. generally accepted
accounting principle (“GAAP”) measure, the Company presents Adjusted
EBITDA (earnings before interest, income taxes, depreciation and
amortization, stock compensation expense, and business development
costs), which is a non-GAAP measure. The Company believes Adjusted
EBITDA is often a useful measure of a Company’s operating performance
and is 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, and other items that are not indicative of the
Company’s core operating performance. Adjusted 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 Adjusted EBITDA for the three and twelve
months ended December 31, 2018 and 2017 is as follows:
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
|
2018 |
|
2017 |
|
Net income
|
|
|
|
$
|
2,636
|
|
|
$
|
95
|
|
Interest expense
|
|
|
|
|
862
|
|
|
|
677
|
|
Provision for income tax
|
|
|
|
|
(103
|
)
|
|
|
4,354
|
|
Depreciation and amortization
|
|
|
|
|
3,122
|
|
|
|
2,684
|
| EBITDA |
|
|
|
|
|
6,517 |
|
|
|
7,810 |
|
Stock compensation expense
|
|
|
|
|
855
|
|
|
|
553
|
|
Business development costs
|
|
|
|
|
413
|
|
|
|
213
|
| Adjusted EBITDA |
|
|
|
$ |
7,784 |
|
|
$ |
8,576 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Year ended |
|
|
|
|
|
December 31, |
|
|
|
|
|
|
2018 |
|
2017 |
|
Net income
|
|
|
|
$
|
15,925
|
|
|
$
|
8,036
|
|
Interest expense
|
|
|
|
|
2,701
|
|
|
|
2,474
|
|
Provision for income tax
|
|
|
|
|
4,756
|
|
|
|
8,100
|
|
Depreciation and amortization
|
|
|
|
|
11,576
|
|
|
|
10,274
|
| EBITDA |
|
|
|
|
|
34,958 |
|
|
|
28,884 |
|
Stock compensation expense
|
|
|
|
|
2,643
|
|
|
|
2,026
|
|
Business development costs
|
|
|
|
|
762
|
|
|
|
213
|
| Adjusted EBITDA |
|
|
|
$ |
38,363 |
|
|
$ |
31,123 |
|
|
|
|
|
|
|
View source version on businesswire.com: https://www.businesswire.com/news/home/20190313005846/en/
Source: Allied Motion Technologies Inc.
Company:
Sue Chiarmonte
Allied Motion Technologies Inc.
Phone:
716-242-8634 x602
Email: sue.chiarmonte@alliedmotion.com
Investors:
Deborah
K. Pawlowski
Kei Advisors LLC
Phone: 716-843-3908
Email: dpawlowski@keiadvisors.com
|
