-
Achieved gross margin of 30.5%, as solid Medical market demand partially offset softness from other markets impacted by COVID-19
-
Generated $9.6 million in cash from operations resulting in $7.6 million of free cash flow
-
Paid down nearly $8 million of debt in the quarter
AMHERST, N.Y.--(BUSINESS WIRE)--Aug. 5, 2020--
Allied Motion Technologies Inc. (Nasdaq: AMOT) (“Allied Motion” or “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 second quarter ended June 30, 2020. Results include the Dynamic Controls Group (“Dynamic Controls”) acquisition that was completed on March 7, 2020.
“I want to acknowledge the incredible efforts and dedication of our employees who have done an excellent job helping us navigate the challenges of the COVID-19 pandemic. We have continued to operate all of our facilities and were able to flex up and support the increased demand from various Medical market customers, many of which are at the forefront of combating this pandemic. Moving forward, we will remain vigilant and continue to implement the measures required to ensure the health and safety of all our employees and their families,” commented Dick Warzala, Chairman and CEO. “Our second quarter performance was relatively solid and demonstrated the success of our One Allied strategy and the execution of our Allied Systematic Tools. We were pleased with our gross margin level given the decline in revenue and we continued to generate significant cash from operations in the quarter.”
He further added, “While we are somewhat subject to macroeconomic conditions, we can control the success of our new product development efforts, which continue to be a priority. We are on-track to create several exciting new products and solutions to ensure that we will meet the emerging needs of our served target markets. With the uncertainty of the current COVID-19 environment, the demand signals continue to be mixed and highly dependent on the vitality of the end markets we serve. For Allied, this translates into effectively managing the encouraging trends and stabilization within certain markets, while at the same time dealing with the continued volatility and uncertainty in various other markets. Overall, I am confident that our team will continue to execute well and that we have the right strategies and structure in place to succeed in our markets for the long-term.”
Second Quarter 2020 Results (Narrative compares with prior-year period unless otherwise noted)
Revenue of $86.7 million was down 6%, and reflected lower sales to all markets except Medical, which nearly doubled year-over-year and included the contribution from Dynamic Controls. Revenue decreased by 5% when excluding a $1.4 million unfavorable impact of changes in foreign currency exchange rates. Revenue excluding the effect of foreign currency translation is a non-GAAP measure. The Company believes this measure is useful for analyzing organic sales results. See the attached table for a description of non-GAAP financial measures and reconciliation of Revenue to Revenue excluding foreign currency translation.
Gross margin for the quarter was solid at 30.5%, down just 20 basis points. The impact of the decline in revenue was partially offset by cost containment efforts and improved mix, given the greater percentage of Medical market sales, including the favorable impact of Dynamic Controls.
Operating costs and expenses as a percent of revenue were 24.7%, up 220 basis points, largely due to lower revenue with incremental expenses related to Dynamic Controls, higher business development costs, and incremental COVID-19-related costs associated with ensuring employee health and safety. As a result, operating income decreased 34% to $5.1 million and operating margin declined 240 basis points to 5.8%.
Second quarter net income was $2.9 million, or $0.30 per diluted share, compared with $4.4 million, or $0.47 per diluted share. Excluding business development costs, adjusted net income for the 2020 second quarter was $3.0 million, or $0.32 per diluted share. The Company believes that, when used in conjunction with measures prepared in accordance with U.S. generally accepted accounting principles, adjusted net income, 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 Net Income and Diluted Earnings per Share.
Earnings before interest, taxes, depreciation, amortization, stock compensation expense and business development costs (“Adjusted EBITDA”) was $10.0 million for the second quarter compared with $12.1 million in 2019. As a percent of sales, Adjusted EBITDA was 11.6% versus 13.1%. 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.
Year-to-Date (YTD) 2020 Results (Narrative compares with prior-year period unless otherwise noted)
Revenue of $179.0 million was down $7.5 million, or 4%, reflecting strong Medical market demand, offset by lower sales from the Company’s other major market verticals given the global economic impact of the COVID-19 pandemic. The impact of FX fluctuations was unfavorable $2.8 million for the year-to-date period. Sales to U.S. customers were 52% of total sales compared with 56% for the same period last year, with the balance of sales to customers primarily in Europe, Canada and Asia.
Gross margin for the year-to-date period expanded 30 basis points to 30.4% despite deceased revenue. The margin increase was largely driven by productivity, cost containment efforts and improved mix, including the favorable impact of Dynamic Controls.
Operating costs and expenses as a percent of revenue were 23.9%, up 180 basis points, largely driven by the addition of Dynamic Controls and higher business development costs. As a result, operating margin declined 140 basis points to 6.6%.
Net income for the period decreased $2.0 million to $6.9 million. Adjusted EBITDA was $21.5 million compared with $23.9 million. As a percent of sales, Adjusted EBITDA was 12.0%, down 80 basis points.
Balance Sheet and Cash Flow Review
Cash and cash equivalents were $19.0 million compared with $13.4 million at the end of 2019. In the quarter, the Company paid down $7.9 million of debt, resulting in $128.5 million of total debt as of June 30, 2020. Compared with year-end 2019, total debt was up $18.7 million, reflecting funds used to make the Dynamic Controls acquisition. Debt, net of cash, was $109.4 million, or 46.4% of net debt to capitalization.
Year-to-date capital expenditures were $3.6 million. The Company expects its capital expenditures for full year 2020 to range between $10 million to $12 million. This level enables key projects to move forward, while deferring lower priority activities.
Orders and Backlog Summary ($ in thousands)
|
|
Q2 2020
|
|
|
|
Q1 2020
|
|
|
|
Q4 2019
|
Q3 2019
|
Q2 2019
|
|
Orders
|
$
|
80,365
|
$
|
92,923
|
$
|
86,315
|
$
|
90,726
|
$
|
95,317
|
|
Backlog
|
$
|
127,701
|
$
|
133,187
|
$
|
124,950
|
$
|
125,821
|
$
|
133,507
|
Foreign currency translation had an unfavorable $1.8 million impact on second quarter orders compared with the prior-year period. The time to convert the majority of backlog to sales is approximately three to six months.
As announced on June 25, 2020, the Company recently won the nomination for another award to provide a customer-specific solution for the Company’s Vehicle market in Europe and Asia. This award is in addition to three previously disclosed Vehicle market awards received since 2017, and brings the total awards received for Vehicle Market solutions to approximately $325 million at current currency exchange rates. A nominal amount of these Vehicle market awards is currently included in backlog as the Company has begun shipments at very low levels for the first of four, seven-year awards. Given the COVID-19 situation, Allied Motion expects production for the initial projects to remain flat through 2020 and begin to gain traction in 2021. All awards are expected to concurrently be at full rate production midway through 2024 and running at that rate into early 2026.
Conference Call and Webcast
The Company will host a conference call and webcast on Thursday, August 6, 2020 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, August 13, 2020. To listen to the archived call, dial (412) 317-6671 and enter replay pin number 13705866 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.
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 August 6, 2020 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.
|
ALLIED MOTION TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(In thousands, except per share data)
(Unaudited)
|
|
|
|
For the three
months ended
June 30,
|
|
For the six
months ended
June 30,
|
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
|
Revenue
|
|
$
|
86,661
|
|
$
|
92,630
|
|
$
|
179,043
|
|
$
|
186,526
|
|
|
Cost of goods sold
|
|
|
60,201
|
|
|
64,208
|
|
|
124,541
|
|
|
130,442
|
|
|
Gross profit
|
|
|
26,460
|
|
|
28,422
|
|
|
54,502
|
|
|
56,084
|
|
|
Operating costs and expenses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selling
|
|
|
3,842
|
|
|
4,136
|
|
|
8,085
|
|
|
8,229
|
|
|
General and administrative
|
|
|
9,710
|
|
|
9,569
|
|
|
18,872
|
|
|
18,519
|
|
|
Engineering and development
|
|
|
6,197
|
|
|
5,676
|
|
|
12,431
|
|
|
11,483
|
|
|
Business development
|
|
|
177
|
|
|
3
|
|
|
424
|
|
|
56
|
|
|
Amortization of intangible assets
|
|
|
1,483
|
|
|
1,430
|
|
|
2,924
|
|
|
2,862
|
|
|
Total operating costs and expenses
|
|
|
21,409
|
|
|
20,814
|
|
|
42,736
|
|
|
41,149
|
|
|
Operating income
|
|
|
5,051
|
|
|
7,608
|
|
|
11,766
|
|
|
14,935
|
|
|
Other expense (income):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest expense
|
|
|
901
|
|
|
1,435
|
|
|
1,955
|
|
|
2,615
|
|
|
Other expense (income), net
|
|
|
17
|
|
|
(1)
|
|
|
76
|
|
|
(19)
|
|
|
Total other expense, net
|
|
|
918
|
|
|
1,434
|
|
|
2,031
|
|
|
2,596
|
|
|
Income before income taxes
|
|
|
4,133
|
|
|
6,174
|
|
|
9,735
|
|
|
12,339
|
|
|
Provision for income taxes
|
|
|
(1,237)
|
|
|
(1,729)
|
|
|
(2,804)
|
|
|
(3,424)
|
|
|
Net income
|
|
$
|
2,896
|
|
$
|
4,445
|
|
$
|
6,931
|
|
$
|
8,915
|
|
|
Basic earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
$
|
0.30
|
|
$
|
0.47
|
|
$
|
0.73
|
|
$
|
0.95
|
|
|
Basic weighted average common shares
|
|
|
9,509
|
|
|
9,408
|
|
|
9,474
|
|
|
9,378
|
|
|
Diluted earnings per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Earnings per share
|
|
$
|
0.30
|
|
$
|
0.47
|
|
$
|
0.73
|
|
$
|
0.95
|
|
|
Diluted weighted average common shares
|
|
|
9,536
|
|
|
9,456
|
|
|
9,518
|
|
|
9,419
|
|
|
Net income
|
|
$
|
2,896
|
|
$
|
4,445
|
|
$
|
6,931
|
|
$
|
8,915
|
|
|
Foreign currency translation adjustment
|
|
|
1,932
|
|
|
548
|
|
|
(496)
|
|
|
(339)
|
|
|
Loss on derivatives
|
|
|
(329)
|
|
|
(436)
|
|
|
(1,417)
|
|
|
(698)
|
|
|
Comprehensive income
|
|
$
|
4,499
|
|
$
|
4,557
|
|
$
|
5,018
|
|
$
|
7,878
|
|
|
ALLIED MOTION TECHNOLOGIES INC.
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except per share data)
(Unaudited)
|
|
|
|
June 30,
2020
|
|
December 31,
2019
|
|
|
Assets
|
|
|
|
|
|
|
|
|
Current assets:
|
|
|
|
|
|
|
|
|
Cash and cash equivalents
|
|
$
|
19,019
|
|
$
|
13,416
|
|
|
Trade receivables, net of provision for credit losses of $605 and allowance for doubtful
accounts of $405 at June 30, 2020 and December 31, 2019, respectively
|
|
|
49,595
|
|
|
44,429
|
|
|
Inventories
|
|
|
61,453
|
|
|
53,385
|
|
|
Prepaid expenses and other assets
|
|
|
3,699
|
|
|
4,413
|
|
|
Total current assets
|
|
|
133,766
|
|
|
115,643
|
|
|
Property, plant and equipment, net
|
|
|
53,465
|
|
|
53,008
|
|
|
Deferred income taxes
|
|
|
846
|
|
|
490
|
|
|
Intangible assets, net
|
|
|
67,378
|
|
|
62,497
|
|
|
Goodwill
|
|
|
59,501
|
|
|
52,935
|
|
|
Right of use assets
|
|
|
18,987
|
|
|
16,420
|
|
|
Other long-term assets
|
|
|
4,556
|
|
|
4,835
|
|
|
Total Assets
|
|
$
|
338,499
|
|
$
|
305,828
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Current liabilities:
|
|
|
|
|
|
|
|
|
Accounts payable
|
|
$
|
27,453
|
|
$
|
23,640
|
|
|
Accrued liabilities
|
|
|
22,210
|
|
|
23,001
|
|
|
Total current liabilities
|
|
|
49,663
|
|
|
46,641
|
|
|
Long-term debt
|
|
|
128,452
|
|
|
109,765
|
|
|
Deferred income taxes
|
|
|
4,649
|
|
|
3,399
|
|
|
Pension and post-retirement obligations
|
|
|
5,205
|
|
|
5,139
|
|
|
Right of use liabilities
|
|
|
15,471
|
|
|
13,715
|
|
|
Other long-term liabilities
|
|
|
8,779
|
|
|
7,975
|
|
|
Total liabilities
|
|
|
212,219
|
|
|
186,634
|
|
|
Stockholders’ Equity:
|
|
|
|
|
|
|
|
|
Common stock, no par value, authorized 50,000 shares; 9,744 and 9,599 shares
issued and outstanding at June 30, 2020 and December 31, 2019, respectively
|
|
|
39,786
|
|
|
37,136
|
|
|
Preferred stock, par value $1.00 per share, authorized 5,000 shares; no shares
issued or outstanding
|
|
|
—
|
|
|
—
|
|
|
Retained earnings
|
|
|
98,938
|
|
|
92,589
|
|
|
Accumulated other comprehensive loss
|
|
|
(12,444)
|
|
|
(10,531)
|
|
|
Total stockholders’ equity
|
|
|
126,280
|
|
|
119,194
|
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
338,499
|
|
$
|
305,828
|
|
|
ALLIED MOTION TECHNOLOGIES INC.
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
(Unaudited)
|
|
|
|
For the six months ended
|
|
|
|
|
June 30,
|
|
|
|
|
2020
|
|
2019
|
|
|
Cash Flows From Operating Activities:
|
|
|
|
|
|
|
|
|
Net income
|
|
$
|
6,931
|
|
$
|
8,915
|
|
|
Adjustments to reconcile net income to net cash provided by operating activities
|
|
|
|
|
|
|
|
|
Depreciation and amortization
|
|
|
7,627
|
|
|
7,327
|
|
|
Deferred income taxes
|
|
|
(841)
|
|
|
(491)
|
|
|
Stock based compensation expense
|
|
|
1,720
|
|
|
1,540
|
|
|
Debt issue cost amortization recorded in interest expense
|
|
|
73
|
|
|
87
|
|
|
Other
|
|
|
885
|
|
|
(166)
|
|
|
Changes in operating assets and liabilities, net of acquisition:
|
|
|
|
|
|
|
|
|
Trade receivables
|
|
|
(1,178)
|
|
|
(8,692)
|
|
|
Inventories
|
|
|
(5,193)
|
|
|
1,973
|
|
|
Prepaid expenses and other assets
|
|
|
1,472
|
|
|
(289)
|
|
|
Accounts payable
|
|
|
(1,627)
|
|
|
(795)
|
|
|
Accrued liabilities
|
|
|
(3,270)
|
|
|
(557)
|
|
|
Net cash provided by operating activities
|
|
|
6,599
|
|
|
8,852
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Investing Activities:
|
|
|
|
|
|
|
|
|
Purchase of property and equipment
|
|
|
(3,614)
|
|
|
(6,401)
|
|
|
Cash paid for acquisitions, net of cash acquired
|
|
|
(14,728)
|
|
|
—
|
|
|
Net cash used in investing activities
|
|
|
(18,342)
|
|
|
(6,401)
|
|
|
|
|
|
|
|
|
|
|
|
Cash Flows From Financing Activities:
|
|
|
|
|
|
|
|
|
Borrowings on long term debt
|
|
|
26,979
|
|
|
7,695
|
|
|
Principal payments of long-term debt
|
|
|
(7,937)
|
|
|
(7,000)
|
|
|
Payment of debt issuance costs
|
|
|
(401)
|
|
|
—
|
|
|
Dividends paid to stockholders
|
|
|
(569)
|
|
|
(605)
|
|
|
Stock transactions under employee benefit stock plans
|
|
|
(797)
|
|
|
(710)
|
|
|
Net cash provided by (used in) financing activities
|
|
|
17,275
|
|
|
(620)
|
|
|
Effect of foreign exchange rate changes on cash
|
|
|
71
|
|
|
(41)
|
|
|
Net increase in cash and cash equivalents
|
|
|
5,603
|
|
|
1,790
|
|
|
Cash and cash equivalents at beginning of period
|
|
|
13,416
|
|
|
8,673
|
|
|
Cash and cash equivalents at end of period
|
|
$
|
19,019
|
|
$
|
10,463
|
|
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 (benefit), depreciation and amortization, stock compensation expense and business development costs), 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, 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 and six months ended June 30, 2020 is as follows:
|
|
Three Months Ended
June 30, 2020
|
|
|
|
Six Months Ended
June 30, 2020
|
|
Revenue as reported
|
$
|
86,661
|
|
|
$
|
179,043
|
|
Currency impact
|
|
1,381
|
|
|
|
2,804
|
|
Revenue excluding foreign currency exchange impacts
|
$
|
88,042
|
|
|
$
|
181,847
|
The Company’s calculation of Adjusted EBITDA for the three months and six months ended June 30, 2020 and 2019 is as follows:
|
|
Three Months Ended
|
|
Six Months Ended
June 30,
|
|
|
June 30,
|
|
|
|
2020
|
|
2019
|
|
2020
|
|
2019
|
|
Net income
|
$
|
2,896
|
$
|
4,445
|
$
|
6,931
|
$
|
8,915
|
|
Interest expense
|
|
901
|
|
1,435
|
|
1,955
|
|
2,615
|
|
Provision for income tax
|
|
1,237
|
|
1,729
|
|
2,804
|
|
3,424
|
|
Depreciation and amortization
|
|
3,877
|
|
3,668
|
|
7,627
|
|
7,327
|
|
EBITDA
|
|
8,911
|
|
11,277
|
|
19,317
|
|
22,281
|
|
Stock compensation expense
|
|
931
|
|
866
|
|
1,720
|
|
1,540
|
|
Business development costs
|
|
177
|
|
3
|
|
424
|
|
56
|
|
Adjusted EBITDA
|
$
|
10,019
|
$
|
12,146
|
$
|
21,461
|
$
|
23,877
|
|
|
|
|
|
|
|
|
|
Reconciliation of GAAP Net Income and Diluted Earnings per Share to
Non-GAAP Adjusted Net 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 and six months ended June 30, 2020 and 2019 is as follows:
|
|
Three Months Ended
June 30,
|
|
Six Months Ended
June 30,
|
|
|
2020
|
Per diluted share
|
|
2019
|
Per diluted share
|
|
2020
|
Per diluted share
|
|
2019
|
Per diluted share
|
|
Net income as reported
|
|
$2,896
|
$ 0.30
|
|
$4,445
|
$ 0.47
|
|
$6,931
|
$ 0.73
|
|
$8,915
|
$ 0.95
|
|
Non-GAAP adjustments, net of tax
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Business development costs
|
|
124
|
0.02
|
|
2
|
-
|
|
302
|
0.03
|
|
40
|
-
|
|
Adjusted net income and diluted EPS
|
|
$3,020
|
$ 0.32
|
|
$4,447
|
$ 0.47
|
|
$7,233
|
$ 0.76
|
|
$8,955
|
$ 0.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average diluted shares outstanding
|
9,536
|
|
|
9,456
|
|
|
9,518
|
|
|
9,419
|
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/20200805006066/en/
Investor:
Deborah K. Pawlowski
Kei Advisors LLC
Phone: 716-843-3908
Email: dpawlowski@keiadvisors.com
Source: Allied Motion Technologies Inc.
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