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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): October 31, 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 October 31, 2005, Allied Motion Technologies Inc. issued a press
release reporting its results of operations for the third quarter ended
September 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
October 31, 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: October 31, 2005 /s/ Richard D. Smith
-------------------------------
Richard D. Smith
Chief Executive Officer and
Chief Financial Officer
Exhibit 99.1
Allied Motion Reports Profits for the Third Quarter
DENVER--(BUSINESS WIRE)--Oct. 31, 2005--Allied Motion
Technologies, Inc. (Nasdaq:AMOT) today announced it achieved net
income for the third quarter of $383,000 or $.06 per diluted share
compared to $612,000 or $.09 per diluted share for the same period
last year. Revenues were $18,043,000 for the quarter ended September
30, 2005 compared to $18,042,000 for the quarter ended September 30,
2004. Revenues from existing businesses decreased 10% points and
incremental revenues achieved by the companies acquired in 2004
contributed 10% 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 September
30, 2005 was $23,217,000, or an 8% increase from the beginning of the
year.
During the nine months ended September 30, 2005, the Company
achieved net income of $919,000 or $.13 per diluted share compared to
net income of $1,647,000 or $.27 per diluted share for the same nine
months last year. Revenues for the first nine months this year
increased 25% to $55,411,000 compared to $44,394,000 for the same
period last year. Of this 25% increase, revenues from existing
businesses decreased 9% points and incremental revenues achieved by
the companies acquired in 2004 contributed 34% points of the increase.
"We experienced a decline in profits in the third quarter and year
to date due to a drop in sales of some of our higher margin business,
the investment being made to establish our Asian manufacturing
capability and the incremental costs associated with the two
acquisitions made in 2004," commented Dick Smith, CEO of Allied
Motion. "During the quarter and for the nine 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. We did
see some of those markets rebound somewhat in the third quarter. Year
to date, we have incurred $1.2 million more in depreciation,
amortization and interest costs over last year most of which relates
to the two acquisitions made in 2004 and the investment made in
setting up our China manufacturing capability. Our EBITDA for the nine
months this year and for last year were both $4.7 million. While we
are disappointed by the decrease in profits for the quarter and nine
months, we have continued to execute our strategy that is building 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 with the
significant investments we have made in Asia, our results have
steadily improved during the year and it is a positive indication that
progress is being made on the cost side of our business. We can expect
the start-up of our Asian production and supply chain capabilities
will provide additional cost benefits as we move into next year. We
are also now beginning to produce and ship products from this facility
and with the cost structure it provides, we are able to compete for
several significant new projects and to secure new business that will
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 October
31, 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 For the Nine
Months Ended Months Ended
September 30, September 30,
HIGHLIGHTS OF OPERATING RESULTS 2005 2004 2005 2004
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Revenues $18,043 $18,042 $55,411 $44,394
Cost of products sold 13,845 13,479 42,901 32,720
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Gross Margin 4,198 4,563 12,510 11,674
Operating expenses and other 3,565 3,578 11,019 9,004
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Income before income taxes 633 985 1,491 2,670
Provision for income taxes 250 373 572 1,023
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Net Income $ 383 $ 612 $ 919 $ 1,647
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PER SHARE AMOUNTS:
Diluted income per share $ .06 $ .09 $ .13 $ .27
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Diluted weighted average common
shares 6,710 6,681 6,940 6,024
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September 30, December 31,
CONDENSED BALANCE SHEETS 2005 2004
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Assets
Current Assets:
Cash and cash equivalents $ 480 $ 456
Trade receivables, net 11,065 9,353
Inventories, net 9,534 9,382
Other current assets 1,743 1,704
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Total Current Assets 22,822 20,895
Property, plant and equipment, net 13,068 13,301
Goodwill and intangible assets 19,253 20,624
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Total Assets $ 55,143 $ 54,820
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $ 9,828 $ 7,087
Accounts payable and other current
liabilities 8,529 10,672
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Total Current Liabilities 18,357 17,759
Long-term debt obligations 5,347 7,320
Other long-term liabilities 5,651 5,381
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Total Liabilities 29,355 30,460
Stockholders' Investment 25,788 24,360
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Total Liabilities and Stockholders'
Investment $ 55,143 $ 54,820
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For the Nine Months Ended
September 30,
CONDENSED STATEMENTS OF CASH FLOWS 2005 2004
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Cash flows from operating activities:
Net income $ 919 $ 1,647
Depreciation and amortization 2,411 1,625
Changes in working capital balances and
other (3,264) (2,128)
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Net cash provided by operating activities 66 1,144
Cash flows from investing activities:
Purchase of property and equipment (1,628) (653)
Cash paid for acquisitions, net (275) (16,698)
Remaining proceeds from sale of
business segment -- 50
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Net cash used in investing activities (1,903) (17,301)
Net cash provided by financing activities 1,864 15,121
Effect of foreign exchange rate changes
on cash (3) 2
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Net increase (decrease) in cash and cash
equivalents 24 (1,034)
Cash and cash equivalents at beginning of
period 456 1,960
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Cash and cash equivalents at June 30 $ 480 $ 926
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CONTACT: Allied Motion Technologies, Inc.
Richard Smith or Sue Chiarmonte, 303-799-8520
Fax: 303-799-8521