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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): August 8, 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 August 8, 2005, Allied Motion Technologies, Inc. issued a press release
reporting its results of operations for the second quarter ended June 30, 2005.
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 August
8, 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: August 8, 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 Profits for the Second Quarter
DENVER--(BUSINESS WIRE)--Aug. 8, 2005--Allied Motion Technologies,
Inc. (Nasdaq:AMOT) today announced it achieved net income for the
second quarter of $368,000 or $.05 per diluted share compared to
$608,000 or $.10 per diluted share for the same period last year.
Revenue for the quarter ended June 30, 2005, increased 25% to
$18,913,000 compared to $15,104,000 last year. Of this 25% increase,
revenues from existing businesses decreased 12% points and incremental
revenues achieved by the companies acquired in 2004 contributed 37%
points of the increase. This quarter's results 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. Backlog at June 30, 2005, was
$21,834,000.
During the six months ended June 30, 2005, the Company achieved
net income of $536,000 or $.08 per diluted share compared to net
income of $1,035,000 or $.18 per diluted share for the same six months
last year. Revenues for the first six months this year increased 42%
to $37,368,000 compared to $26,352,000 for the same period last year.
Of this 42% increase, revenues from existing businesses decreased 8%
points and incremental revenues achieved by the companies acquired in
2004 contributed 50% points of the increase.
"Consistent with the first quarter, the second quarter and year to
date results are down from the prior year," commented Dick Smith, CEO
of Allied Motion. "However, the results of the second quarter of 2005
were an improvement over the first quarter and our EBITDA for the six
months was up 7% over last year. During the quarter and for the six
months, we continued to see revenues down from the prior year from
some of our served markets which contributed to a decrease in revenues
from our existing businesses which were more than offset by the
incremental revenues added by Stature and Premotec. The markets in
which we are experiencing the decline in revenues are some of our
higher margin business which has a more significant effect on
profitability. While we are disappointed by the decrease in profits
for the quarter and six months, we will continue to execute our
strategy and build the foundation necessary to achieve our long-term
goals for growth in sales and profitability, as well as to facilitate
our continued expansion into the motion control industry."
Dick Warzala, President of Allied Motion, added: "Even though our
first six months results are less than what we have become accustomed
to, as I stated last quarter we remain bullish on our continued growth
prospects in the future. We've made excellent progress in developing
our Asian production and supply chain capabilities and our R&D efforts
will result in the release of several exciting new products near the
end of the year. We also have several significant new projects with
our customer base and we are confident that we will secure new
business to help us achieve our internal growth goals into the future.
Our strategy is on track and we remain committed to manage our Company
to achieve our long term goals."
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 August
8, 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 Six Months
HIGHLIGHTS OF OPERATING Ended June 30, Ended June 30,
RESULTS 2005 2004 2005 2004
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Revenues $18,913 $15,104 $37,368 $26,352
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Gross Margin $4,224 $4,064 $8,312 $7,111
Operating expenses and other (3,651) (3,074) (7,454) (5,426)
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Income before income taxes 573 990 858 1,685
Provision for income taxes (205) (382) (322) (650)
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Net Income $368 $608 $536 $1,035
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PER SHARE AMOUNTS:
Diluted income per share $.05 $.10 $.08 $.18
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Diluted weighted average
common shares 6,784 5,897 7,007 5,699
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June 30, December 31,
CONDENSED BALANCE SHEETS 2005 2004
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Assets
Current Assets:
Cash and cash equivalents $495 $456
Trade receivables, net 10,342 9,353
Inventories, net 9,635 9,382
Other current assets 1,492 1,704
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Total Current Assets 21,964 20,895
Property, plant and equipment, net 13,266 13,301
Goodwill and intangible assets 19,509 20,624
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Total Assets $54,739 $54,820
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $9,569 $7,087
Accounts payable and other current
liabilities 8,462 10,672
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Total Current Liabilities 18,031 17,759
Long-term debt obligations 5,945 7,320
Other long-term liabilities 5,417 5,381
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Total Liabilities 29,393 30,460
Stockholders' Investment 25,346 24,360
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Total Liabilities and Stockholders'
Investment $54,739 $54,820
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For the Six Months Ended
June 30,
CONDENSED STATEMENTS OF CASH FLOWS 2005 2004
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Cash flows from operating activities:
Net income $536 $1,035
Depreciation and amortization 1,609 925
Changes in working capital balances and
other (2,827) (1,733)
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Net cash provided by (used in) operating
activities (682) 227
Cash flows from investing activities:
Purchase of property and equipment (1,247) (355)
Cash paid for acquisitions, net (208) (13,188)
Net proceeds from sale of business segment -- 50
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Net cash used in investing activities (1,455) (13,493)
Net cash provided by financing activities 2,181 12,144
Effect of foreign exchange rate changes on
cash (5) --
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Net increase (decrease) in cash and cash
equivalents 39 (1,122)
Cash and cash equivalents at beginning of
period 456 1,960
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Cash and cash equivalents at June 30 $495 $838
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CONTACT: Allied Motion Technologies, Inc.
Richard Smith or Sue Chiarmonte, 303-799-8520
303-799-8521 (fax)