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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
Form 8-K
Current Report
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): November 1, 2004
ALLIED MOTION TECHNOLOGIES INC.
(Exact Name of Registrant as Specified in Its Charter)
Colorado 0-4041 84-0518115
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(State or other jurisdiction (Commission File Number) (IRS Employer
of Incorporation) Identification No.)
23 Inverness Way East, Ste. 150, Englewood, CO 80112
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(Address of Principal executive offices) (Zip Code)
Registrant's telephone number, including area code 303-799-8520
NOT APPLICABLE
(Former Name or Former Address, if Changed Since Last Report)
Check the appropriate box below if the Form 8-K filing is intended to
simultaneously satisfy the filing obligation of the registrant under any of the
following provisions (see General Instruction A.2 below):
[ ] Written communications pursuant to Rule 425 under the Securities Act
(17CFT230.425)
[ ] Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17CFR
240.14a-12)
[ ] Pre-commencement communications pursuant to Rule 14d-2(b) under the
Exchange Act (17CFR240.14d-2(b)
[ ] Pre-commencement communications pursuant to Rule 13e-4(C) under the
Exchange Act (17CFR240.13e-4(c))
Item 2.02. Results of Operations and Financial Condition.
On November 1, 2004, Allied Motion Technologies, Inc. issued a
press release reporting its results of operations for the third quarter ended
September 30, 2004. A copy of the press release is attached hereto as Exhibit
99.1 and is incorporated herein by reference.
Item 9.01. Financial Statements and Exhibits.
c) Exhibits
Exhibit 99.1 Allied Motion Technologies, Inc.
Press Release dated November 1, 2004.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ALLIED MOTION TECHNOLOGIES INC.
DATE: November 1, 2004 By: /s/ Richard D. Smith
---------------------
Chief Executive Officer
and Chief Financial Officer
Exhibit 99.1
Allied Motion Reports Continued Profit Improvement for the Third Quarter
DENVER--(BUSINESS WIRE)--Nov. 1, 2004--Allied Motion Technologies
Inc. (NASDAQ: AMOT) today announced it continued to achieve a
significant improvement in sales and profit for the quarter ended
September 30, 2004, as compared to the same period last year. The
Company achieved net income for the third quarter of $612,000, or $.09
per diluted share, compared to net income of $403,000, or $.08 per
diluted share, for the same period last year. Included in the results
for the third quarter last year was a tax benefit of $298,000 related
to the realization of a prior-year state income tax refund. Income
before income taxes improved to $985,000 this year compared to
$153,000 last year. Revenues for the quarter ended September 30, 2004,
increased 83% to $18,042,000 compared to $9,838,000 last year. This
quarter includes the results from Stature Electric, Inc., a subsidiary
that was acquired on May 10, 2004, in connection with the Owosso
Corporation merger and also from Precision Motor Technology B.V.
(Premotec), a subsidiary that was acquired on August 23, 2004.
Revenues from existing businesses, excluding Stature's and Premotec's
revenues, increased 19% for the quarter ended September 30, 2004, over
the same period last year. Backlog at September 30, 2004, was
$22,764,000.
During the nine months ended September 30, 2004, the Company
achieved net income of $1,647,000 or $.27 per diluted share compared
to net income of $556,000 or $.11 per diluted share for the same nine
months last year. Revenues for the first nine months this year
increased 54% to $44,394,000, compared to $28,750,000 for the same
period last year. Revenues from existing businesses increased 24% for
the nine months ended September 30, 2004, over the same period last
year.
"We are very pleased with the results for the first three quarters
of the year," commented Dick Smith, CEO of Allied Motion. "Our
acquisition of Premotec has been completed, furthering our expansion
into the motion control industry by establishing a presence in the
European market. Premotec will provide us with new sales channels and
complementary products that will further enhance our continued
expansion into the motion control industry. Our 54% sales growth
year-to-date is being driven by increased sales into our existing
markets as well as the incremental growth contributed from the two
acquisitions finalized during the current year. Our profit improvement
is also being driven by improved margins resulting from increased
operating efficiencies and reduced costs. We continue to strive for
the constant improvement in our operations and to build the foundation
that will be necessary for us to achieve our long-term goals for
growth in sales and profitability."
Dick Warzala, President of Allied Motion, added: "During the first
nine month of 2004, we experienced a significant sales increase while
we continued to focus on enhancing our engineering resources and to
drive internal cost reductions to improve our bottom line. Upon
closing the Premotec acquisition, we immediately updated our corporate
strategy with an increased emphasis on leveraging our sales channels
and technology base and began formulating a plan for implementing
Allied's Systematic Tools (AST) at Premotec. The continuing
implementation of AST within all of our operations provides the
foundation to improve our internal operations, while our emphasis on
reducing product costs through strategic sourcing and product
re-design efforts will improve our cost effectiveness and further
enhance our ability to win new business and fuel our internal growth
engine in the future."
Headquartered in Denver, Colorado, 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
1, 2004, 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 statements that may
predict, forecast, indicate, or imply future results, performance, or
achievements. 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 international, national and local 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 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 growth and new
technology, and the ability of the Company to control 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 For the Nine Months
Ended September 30, Ended September 30,
HIGHLIGHTS OF OPERATING
RESULTS 2004 2003 2004 2003
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Revenue $18,042 $9,838 $44,394 $28,750
=========================================
Income before income taxes $985 $153 $2,670 $374
(Provision) benefit for
income taxes (373) 250 (1,023) 182
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Net income $612 $403 $1,647 $556
=========================================
PER SHARE AMOUNTS:
Diluted income per share $.09 $.08 $.27 $.11
=========================================
Diluted weighted average
common shares 6,681 5,122 6,024 4,963
=========================================
Sept. 30, Dec. 31,
CONDENSED BALANCE SHEETS 2004 2003
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Assets
Current Assets:
Cash and cash equivalents $926 $1,960
Trade receivables, net 11,492 5,971
Inventories, net 8,506 3,867
Other current assets 1,267 1,839
--------------------------
Total current assets 22,191 13,637
Property, plant and equipment, net 13,886 6,423
Goodwill and intangible assets, net 19,399 7,437
--------------------------
Total Assets $55,476 $27,497
==========================
Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $8,738 $1,967
Accounts payable and other current
liabilities 11,301 5,734
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Total Current Liabilities 20,039 7,701
Long-term debt obligations 7,709 345
Other long term liabilities 4,293 3,392
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Total Liabilities 32,041 11,438
Stockholders' Investment 23,435 16,059
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Total Liabilities and Stockholders'
Investment $55,476 $27,497
==========================
For the Nine Months Ended
September 30,
CONDENSED STATEMENTS OF CASH FLOWS 2004 2003
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Cash flows from operating activities:
Net income $1,647 $556
Depreciation and amortization 1,625 977
Changes in working capital balances and
other (1,660) (987)
--------------------------
Net cash provided by operating activities 1,612 546
Cash flows from investing activities:
Purchase of property and equipment (653) (547)
Cash paid for acquisitions, net (17,166) --
Proceeds from sale of business segment 50 649
--------------------------
Net cash provided by investing activities (17,769) 102
Net cash provided by (used in) financing
activities 15,121 (1,126)
Effect of foreign exchange rate changes on
cash 2 13
--------------------------
Net decrease in cash and cash equivalents (1,034) (465)
Cash and cash equivalents at beginning of
year 1,960 1,955
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Cash and cash equivalents at September 30 $926 $1,490
==========================
CONTACT: Allied Motion Technologies Inc.
Richard Smith, 303-799-8520
or
Sue Chiarmonte, 303-799-8520
Fax: 303 799-8521