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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 16, 2006
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 16, 2006, Allied Motion Technologies Inc. issued a press
release reporting its results of operations for the fourth quarter and year
ended December 31, 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
March 16, 2006.
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 16, 2006 /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 Quarter and Year Ended December 31, 2005
DENVER--(BUSINESS WIRE)--March 16, 2006--Allied Motion
Technologies Inc. (NASDAQ: AMOT) today announced it achieved net
income for the year ended December 31, 2005, of $923,000 or $.13 per
diluted share compared to net income of $2,250,000 or $.36 per diluted
share last year. Revenues for the year increased 18% to $74,302,000
compared to $62,738,000 last year. Of this 18% increase, revenues from
existing businesses decreased 9% points and incremental revenues
achieved by the companies acquired in 2004 contributed 27% points of
the increase. This year'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.
During the fourth quarter of 2005, the Company achieved net income
of $4,000 or $.00 per diluted share compared to $603,000 or $.09 per
diluted share for the same period last year. Revenues were $18,891,000
for the quarter ended December 31, 2005, compared to $18,344,000 for
the quarter ended December 31, 2004. Backlog at December 31, 2005, was
$25,172,000, or a 17% increase from the beginning of the year.
"The financial results we achieved in the 4th quarter and for 2005
were disappointing," commented Dick Smith, CEO of Allied Motion. "The
decline in profits during 2005 was due to several factors -- a
significant unfavorable profit swing at Stature, one of our new
operating companies, a drop in sales of some of our higher margin
business, the investment made to establish our Asian manufacturing
capability and incremental inventory reserves that were provided for
excess and obsolete inventory. We were also delayed in getting our
production ramped up at our Asian manufacturing facility which
resulted in us not achieving the cost improvements that we
anticipated. We believe we have either gotten these issues behind us
or we have made progress in resolving the issues so that they will not
have as much of an adverse effect on us in 2006. We still have some
challenges at Stature but we should start to see an improvement in its
operations as we progress through 2006. While we are disappointed by
the decrease in profits for 2005, 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: "The significant
investments we made in Asia during 2005 have been made with a
long-term outlook towards cost reduction and the top line growth of
our business. We are now producing and shipping products from this
facility and with the cost structure it provides, we are able to
compete for several significant new projects and secure existing
business that will help us achieve our internal growth goals in the
future. Our product development efforts and AST implementation will
further enhance our competitiveness 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 March
16, 2006 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 TECHOLOGIES INC. FINANCIAL SUMMARY
(IN THOUSANDS, EXCEPT PER SHARE DATA) (UNAUDITED)
For the Three Months For the Year
HIGHLIGHTS OF OPERATING Ended December 31, Ended December 31,
RESULTS 2005 2004 2005 2004
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Revenues $18,891 $18,344 $74,302 $62,738
Cost of products sold 15,217 13,560 58,118 46,280
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Gross Margin 3,674 4,784 16,184 16,458
Operating expenses and other 3,684 4,045 14,703 13,049
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Income (loss) before income
taxes (10) 739 1,481 3,409
Benefit of (provision for)
income taxes 14 (136) (558) (1,159)
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Net Income $4 $603 $923 $2,250
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PER SHARE AMOUNTS:
Diluted income per share $.00 $.09 $.13 $.36
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Diluted weighted average
common shares 6,646 6,837 6,869 6,185
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CONDENSED BALANCE SHEETS December 31, December 31,
2005 2004
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Assets
Current Assets:
Cash and cash equivalents $624 $456
Trade receivables, net 10,087 9,353
Inventories, net 9,185 9,382
Other current assets 979 1,704
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Total Current Assets 20,875 20,895
Property, plant and equipment, net 12,939 13,301
Deferred income taxes 582 --
Goodwill and intangible assets, net 18,941 20,624
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Total Assets $53,337 $54,820
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Liabilities and Stockholders' Investment
Current Liabilities:
Debt obligations $7,335 $7,087
Accounts payable and other current
liabilities 10,084 10,672
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Total Current Liabilities 17,419 17,759
Long-term debt obligations 4,746 7,320
Other long-term liabilities 5,365 5,381
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Total Liabilities 27,530 30,460
Stockholders' Investment 25,807 24,360
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Total Liabilities and Stockholders'
Investment $53,337 $54,820
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For the year ended
December 31,
CONDENSED STATEMENTS OF CASH FLOWS 2005 2004
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Cash flows from operating activities:
Net income $923 $2,250
Depreciation and amortization 3,229 2,328
Changes in working capital balances and
other (481) (1,305)
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Net cash provided by operating activities 3,671 3,273
Cash flows from investing activities:
Purchase of property and equipment (2,096) (953)
Cash paid for acquisitions, net (275) (16,816)
Remaining proceeds from sale of business
segment -- 50
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Net cash used in investing activities (2,371) (17,719)
Net cash (used) provided by financing
activities (1,132) 12,937
Effect of foreign exchange rate changes on
cash -- 5
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Net increase (decrease) in cash and cash
equivalents 168 (1,504)
Cash and cash equivalents at beginning of
period 456 1,960
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Cash and cash equivalents at June 30 $624 $456
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CONTACT: Allied Motion Technologies Inc.
Richard Smith, 303-799-8520
or
Sue Chiarmonte, 303-799-8520