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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
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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): March 3, 2005
ALLIED MOTION TECHNOLOGIES INC.
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(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
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(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 March 3, 2005, Allied Motion Technologies, Inc. issued a press release
reporting its results of operations for the fourth quarter and year ended
December 31, 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
March 3, 2005.
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: March 3, 2005 /s/ Richard D. Smith
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Richard D. Smith
Chief Executive Officer and
Chief Financial Officer
Exhibit 99.1
Allied Motion Reports Improved Profits for the Quarter and Year Ended December
31, 2004
DENVER--(BUSINESS WIRE)--March 3, 2005--Allied Motion Technologies
Inc. (Nasdaq:AMOT) today announced it achieved a significant
improvement in sales and profit for the year ended December 31, 2004,
as compared to the prior year. During the year ended December 31,
2004, the Company achieved net income of $2,250,000 or $.36 per
diluted share compared to net income of $948,000 or $.19 per diluted
share last year. Included in the results for 2003 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 $3,409,000 this year
compared to $967,000 last year. Revenues for this year increased 59%
to $62,738,000 compared to $39,434,000 last year. Of the 59% increase,
17% resulted from revenues from existing businesses and 42% from the
incremental revenues achieved by companies acquired during 2004. The
results for 2004 include 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.
The Company achieved net income for the fourth quarter of $603,000
or $.09 per diluted share compared to net income of $392,000 or $.07
per diluted share for the same period last year. Revenues for the
quarter ended December 31, 2004, increased 72% to $18,344,000 compared
to $10,684,000 last year. The current quarter includes the results
from Stature Electric, Inc. and also from Premotec. Backlog at
December 31, 2004, was $21,500,000.
"We are quite pleased with our accomplishments during 2004,"
commented Dick Smith, CEO of Allied Motion. "During this past year, we
were able to achieve excellent growth in revenues and profit from our
existing operations and we completed two strategic acquisitions. The
improvement in our existing operations was the result of both an
increase in sales, which was driven by the strengthening of some of
our markets as well as obtaining new customers and new applications
with existing customers, and from the continuous improvement in
operating efficiencies and reduced costs. Our acquisitions of Stature
Electric and Premotec have significantly aided our expansion into the
motion industry, not only with the addition of complementary products,
but also by establishing a presence in the European market. The
incremental growth contributed from the two acquisitions and the
increased sales into our existing markets resulted in our 59% sales
growth in 2004. We believe the continued execution of our long-term
strategy will result in the constant improvement in our operations and
the continued strengthening of the foundation necessary for us to
achieve our long-term goals for growth in sales and profitability."
Dick Warzala, President of Allied Motion, added: "During 2004, our
top line improved through both organic growth and through our two
strategic acquisitions. Upon completion of the Stature Electric and
Premotec acquisitions, we updated our corporate strategy with our
critical issues being revised to reflect an increased emphasis on
leveraging our company-wide technology base, improving the utilization
of our sales channels and continuing the implementation of Allied's
Systematic Tools (AST) within all of our operations. The aggressive
application of AST is critical in developing the foundation for
continuous improvement in all disciplines and is a vital element to
our success in the future. Another significant development during 2004
was the establishment of a low cost region production (LCR) capability
in China. This capability will be continuously developed to provide us
with the ability to strategically select sub-assemblies and product
lines for production in the LCR that will improve both our competitive
position and profitability in our served market segments."
Headquartered in Denver, Colorado, Allied Motion designs,
manufactures and sells motion 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 3,
2005, 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 Year
Ended December 31, Ended December 31,
HIGHLIGHTS OF OPERATING RESULTS 2004 2003 2004 2003
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Revenue $18,344 $10,684 $62,738 $39,434
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Income before income taxes $739 $593 $3,409 $967
Provision for income taxes (136) (201) (1,159) (19)
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Net income $603 $392 $2,250 $948
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PER SHARE AMOUNTS:
Diluted income per share $.09 $.07 $.36 $.19
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Diluted weighted average
common shares 6,837 5,380 6,185 5,061
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Dec. 31, Dec. 31,
CONDENSED BALANCE SHEETS 2004 2003
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Assets
Current Assets:
Cash and cash equivalents $456 $1,960
Trade receivables, net 9,353 5,971
Inventories, net 9,382 3,867
Other current assets 1,704 1,839
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Total current assets 20,895 13,637
Property, plant and equipment, net 13,301 6,423
Goodwill and intangible assets, net 20,624 7,437
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Total Assets $54,820 $27,497
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $7,087 $1,967
Accounts payable and other current liabilities 10,672 5,734
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Total Current Liabilities 17,759 7,701
Long-term debt obligations 7,320 345
Other long-term liabilities 5,381 3,392
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Total Liabilities 30,460 11,438
Stockholders' Investment 24,360 16,059
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Total Liabilities and Stockholders' Investment $54,820 $27,497
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For the Year Ended
December 31,
CONDENSED STATEMENTS OF CASH FLOWS 2004 2003
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Cash flows from operating activities:
Net income $2,250 $948
Depreciation and amortization 2,893 1,359
Changes in working capital balances and other (1,305) (155)
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Net cash provided by operating activities 3,273 2,152
Cash flows from investing activities:
Purchase of property and equipment (953) (1,113)
Cash paid for acquisitions, net (16,816) (300)
Proceeds from sale of business segment 50 649
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Net cash provided by investing activities (17,719) (764)
Net cash provided by (used in) financing
activities 12,937 (1,447)
Effect of foreign exchange rate changes on cash 5 64
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Net (decrease) increase in cash and cash
equivalents (1,504) 5
Cash and cash equivalents at beginning of year 1,960 1,955
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Cash and cash equivalents at December 31 $456 $1,960
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CONTACT: Allied Motion Technologies Inc.
Richard Smith, 303-799-8520
Sue Chiarmonte, 303-799-8520
303-799-8521 (fax)